Financial Performance - For the nine months ended September 30, 2019, the company reported total revenue of MYR 85,695,000, representing a 27% increase compared to MYR 67,535,000 for the same period in 2018[4]. - The gross profit for the nine months was MYR 20,567,000, which is a 39% increase from MYR 15,845,000 in the previous year[4]. - The net loss for the nine months was MYR 4,402,000, compared to a profit of MYR 685,000 in the same period last year[4]. - The company recorded a total comprehensive income of MYR 453,000 for the nine months, a significant decrease from MYR 4,619,000 in the previous year[4]. - The earnings per share for the nine months was a loss of 0.74 sen, compared to a profit of 0.14 sen in the same period last year[4]. - Total revenue for the nine months ended September 30, 2019, was RM 85.695 million, with external customer revenue contributing RM 85.695 million[23]. - Operating profit for the nine months was RM 4.936 million, while the loss from retail operations was RM 3.900 million[23]. - The company reported a net profit of RM 3.097 million for the period, compared to a loss of RM 4.402 million[23]. - The company reported a profit of 1,643 thousand MYR for the nine months ended September 30, 2019, compared to a loss of 685 thousand MYR in the same period of 2018[27]. - The company’s earnings before tax for the nine months ended September 30, 2019, was 1,562 thousand MYR, compared to a loss of 949 thousand MYR in the same period of 2018[27]. - The company reported a basic earnings per share of 0.22 MYR for the three months ended September 30, 2019, compared to 0.15 MYR in the same period of 2018, representing a 46.6% increase[45]. - Total revenue for the period was 85.7 million MYR, an increase of 27.0% from 67.5 million MYR in the same period of 2018[54]. Revenue Breakdown - The manufacturing segment generated RM 80.999 million in revenue, while the retail segment contributed RM 4.696 million[23]. - Revenue from external customers in the Asia-Pacific region for the nine months ended September 30, 2019, was 64,216 thousand MYR, up from 47,477 thousand MYR in 2018, indicating a growth of about 35%[31]. - Revenue from the production segment increased by 13.5 million MYR or 19.9%, contributing approximately 94.5% of total revenue[55]. - The retail segment generated revenue of 4.7 million MYR, accounting for 5.5% of total revenue, following the opening of flagship stores in Singapore and Thailand[53][55]. - Major customer A contributed 9,763 thousand MYR in revenue for the nine months ended September 30, 2019, up from 7,749 thousand MYR in the same period of 2018, representing an increase of approximately 26%[32]. Expenses and Costs - Distribution costs increased to MYR 7,383,000 for the nine months, compared to MYR 1,978,000 in the same period last year[4]. - Administrative expenses rose to MYR 16,113,000 for the nine months, compared to MYR 12,436,000 in the previous year[4]. - Depreciation and amortization expenses totaled RM 4.354 million for the nine months[23]. - Sales costs increased by 25.9% to 65.1 million MYR, in line with revenue growth[56]. - Administrative expenses rose by 29.8% to 16.1 million MYR, primarily due to one-time professional fees related to the acquisition and operational expenses from the retail segment[63]. - The company faced challenges in maintaining margins due to increased raw material costs and labor costs resulting from minimum wage hikes in Malaysia and Vietnam[60]. - Corporate expenses totaled 3.2 million MYR, including one-time professional fees of 1.5 million MYR related to acquisition matters[66]. Financing and Taxation - Interest income for the nine months was RM 328, while financing costs amounted to RM 1.126 million[23]. - The financing costs for the nine months ended September 30, 2019, totaled 1,126 thousand MYR, significantly higher than 532 thousand MYR in the same period of 2018, reflecting an increase of approximately 112%[36]. - The company reported a tax expense of 990 thousand MYR for the nine months ended September 30, 2019, compared to 877 thousand MYR in the same period of 2018, reflecting an increase of approximately 13%[39]. Strategic Outlook - The company plans to focus on market expansion and new product development in the upcoming quarters[4]. - The company anticipates a challenging outlook for the production segment due to cautious procurement by customers amid weak market demand[74]. - The company is exploring new potential export markets and strategic partnerships to strengthen its market position in the production segment[74]. - The retail sector's outlook is also challenging, with a share sale agreement signed with PRG Holdings for the sale of Premier Management International Limited, which is still pending completion[75]. - The company plans to enhance its brand and marketing strategies to increase market share in Southeast Asia[78]. Corporate Governance and Compliance - The company has complied with the corporate governance code during the period[85]. - The company has a compliance advisor, Shenwan Hongyuan Capital (Hong Kong) Limited, which has declared its independence according to GEM listing rules[87]. - The company confirmed that the controlling shareholder has adhered to the non-competition agreement during the reporting period[94]. - The independent non-executive directors confirmed no breaches of the non-competition agreement by the controlling shareholder during the reporting period[94]. - The company has adopted the GEM Listing Rules and confirmed compliance with the trading standards for directors during the reporting period[109]. - The audit committee has reviewed the unaudited consolidated results for the period and found them compliant with applicable accounting standards and GEM Listing Rules[113]. - The audit committee consists of three independent non-executive directors, with Mr. Ho Ming Hon serving as the chairman[110]. Shareholder Information - The company’s ultimate holding company is PRG Holdings Berhad, listed on the Malaysian stock exchange[14]. - The company reported a significant ownership structure, with PRG Holdings holding 54.19% of the issued shares as of September 30, 2019[103]. - The major shareholders include Tang Ka Ho and Jin Hui Consulting Limited, holding 46.41% and 45.90% of the shares respectively[103]. - The company’s issued share capital was 363,005,021 shares with a par value of RM0.25 each as of September 30, 2019[101]. - As of September 30, 2019, the company had no direct or indirect competition interests from its directors or controlling shareholders[95]. - The company has not reported any conflicts of interest involving its directors or major executives during the period[95].
飞霓控股(08480) - 2019 Q3 - 季度财报