Financial Performance - For the nine months ended December 31, 2019, the group recorded revenue of approximately HKD 256.9 million, an increase of about HKD 7.5 million or 3.0% compared to the same period in 2018[4]. - The net profit attributable to the owners of the company for the nine months ended December 31, 2019, was approximately HKD 13.9 million, a decrease of about HKD 6.7 million from HKD 20.6 million in the same period of 2018[5]. - The gross profit for the nine months ended December 31, 2019, was HKD 33.0 million, compared to HKD 33.8 million for the same period in 2018, reflecting a slight decrease[8]. - The basic earnings per share for the nine months ended December 31, 2019, was HKD 4.97, down from HKD 7.36 in the same period of 2018[8]. - The total comprehensive income for the period was HKD 13.9 million, compared to HKD 20.6 million for the same period in 2018[8]. - The increase in sales and distribution costs and administrative expenses contributed to the decrease in net profit[5]. - The company's revenue for the nine months ended December 31, 2019, was HKD 256,931,000, an increase from HKD 249,401,000 for the same period in 2018, representing a growth of approximately 3.5%[57]. - Revenue from major products for the three months ended December 31, 2019, totaled HKD 88,554,000, compared to HKD 85,563,000 in the same period of 2018, indicating a year-over-year increase of about 3.5%[57]. - The company reported a pre-tax profit of HKD 1,529,000 for the three months ended December 31, 2019, compared to HKD 1,367,000 for the same period in 2018, reflecting an increase of approximately 11.8%[62]. - Revenue from customer categories showed that sales to wholesalers amounted to HKD 238,676,000 for the nine months ended December 31, 2019, compared to HKD 235,152,000 in the same period of 2018, marking an increase of about 1.1%[58]. - The company’s revenue from external customers in Hong Kong for the nine months ended December 31, 2019, was HKD 202,192,000, a slight decrease from HKD 205,931,000 in the same period of 2018[59]. - The cost of goods sold for the nine months ended December 31, 2019, was HKD 223,918,000, compared to HKD 215,642,000 for the same period in 2018, representing an increase of approximately 3.0%[62]. - The company’s operating expenses, including employee costs, were HKD 4,592,000 for the nine months ended December 31, 2019, compared to HKD 3,733,000 for the same period in 2018, reflecting an increase of about 23.1%[62]. - The company recorded a net profit of approximately HKD 13.9 million for the nine months ended December 31, 2019, down from HKD 20.6 million for the same period in 2018, representing a decrease of about 32.8%[69]. - Revenue increased by approximately 3.0% to about HKD 256.9 million for the nine months ended December 31, 2019, compared to HKD 249.4 million for the same period in 2018[72]. - Cost of goods sold rose by approximately 3.8% to about HKD 223.9 million for the nine months ended December 31, 2019, compared to HKD 215.6 million for the same period in 2018[73]. - Gross profit decreased by approximately 2.2% to about HKD 33.0 million for the nine months ended December 31, 2019, with a gross margin of approximately 12.8%, down from 13.5% in the same period of 2018[74]. - Selling and distribution costs increased by approximately 29.3% to about HKD 5.3 million for the nine months ended December 31, 2019, compared to HKD 4.1 million for the same period in 2018[74]. - Administrative expenses rose significantly from approximately HKD 5.2 million to about HKD 9.5 million for the nine months ended December 31, 2019, primarily due to increased legal and professional fees[77]. - Tax expenses decreased by approximately 14.4% to about HKD 3.67 million for the nine months ended December 31, 2019, compared to HKD 4.28 million for the same period in 2018[79]. Dividend and Shareholder Information - The company did not recommend the payment of a dividend for the nine months ended December 31, 2019[5]. - The board did not recommend any dividend distribution for the nine months ended December 31, 2019, consistent with the previous year[88]. - The company declared a final dividend of HKD 0.027 per share for the year ended March 31, 2019, totaling HKD 7,560,000, up from HKD 6,160,000 for the previous year[67]. - There were no buybacks, sales, or redemptions of the company's listed securities during the nine months ended December 31, 2019[99]. - No share options have been granted, exercised, expired, or lapsed under the share option scheme as of December 31, 2019[102]. Accounting Standards and Financial Reporting - The financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards applicable to interim periods[20]. - The company adopted new and revised Hong Kong Financial Reporting Standards, effective from April 1, 2019, with no significant impact on financial performance or disclosures for the current and prior periods[23]. - The application of HKFRS 16 "Leases" has replaced HKAS 17 and related interpretations, affecting the accounting policies of the company[27]. - The company recognizes right-of-use assets at the lease commencement date, measured at cost, less any accumulated depreciation and impairment losses[33]. - The cost of right-of-use assets includes the initial measurement amount of lease liabilities and any direct costs incurred by the company[34]. - Lease liabilities are recognized at the present value of unpaid lease payments at the lease commencement date[37]. - The company applies exemptions for short-term leases and low-value asset leases, recognizing lease payments on a straight-line basis over the lease term[30]. - The company will not reassess contracts identified as leases prior to the initial application date of HKFRS 16[45]. - The transition to HKFRS 16 did not result in the recognition of any right-of-use assets or lease liabilities as all leases will end within 12 months from the application date[46]. - The company will adjust lease liabilities through interest accrual and lease payments after the commencement date[42]. - Variable lease payments that depend on market rent changes will be measured at the market rent at the commencement date[41]. - The company did not make any adjustments to the financial statements due to the application of HKFRS 16, indicating a stable transition to the new accounting standard[52]. Corporate Governance and Compliance - The company has adhered to the corporate governance code since its listing on October 19, 2017[106]. - The Audit Committee was established on September 21, 2017, and consists of three independent non-executive directors[107]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the nine months ended December 31, 2019, and found the performance to comply with applicable accounting standards and GEM listing rules[110]. - The Board of Directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[110]. - The company has adopted the GEM Listing Rules regarding the trading of securities by directors, confirming compliance since the listing date[101]. Business Operations and Strategy - The group primarily engages in the import and wholesale of frozen seafood products and property holding[18]. - The company aims to expand its product portfolio through exclusive agency agreements and sales agency arrangements with new suppliers[70]. - The net proceeds from the share offering amounted to approximately HKD 63.0 million, with HKD 55.1 million already utilized for various operational enhancements[82]. - The company's overall performance is reviewed periodically by the main decision-makers to assess financial performance and allocate resources effectively, maintaining a focus on the frozen seafood import and wholesale business[54]. - The company has not engaged in any business activities that could directly or indirectly compete with the group during the nine months ended December 31, 2019[100]. - No significant investments, acquisitions, or disposals related to subsidiaries or associates were reported for the nine months ended December 31, 2019[87]. Debt and Equity - As of December 31, 2019, the total bank borrowings of the group amounted to approximately HKD 7.1 million, a decrease from HKD 16.4 million as of March 31, 2019[86]. - The company's total equity attributable to owners was approximately HKD 134.5 million as of December 31, 2019, up from HKD 128.2 million as of March 31, 2019[83]. - The group's debt-to-equity ratio was approximately 5.3% as of December 31, 2019, down from 12.8% as of March 31, 2019[86].
大洋环球控股(08476) - 2020 Q3 - 季度财报