飞霓控股(08480) - 2020 Q3 - 季度财报

Financial Performance The Group turned a loss into a profit for the nine months ended September 30, 2020, driven by improved continuing operations Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group achieved a profit of MYR 3.76 million for the nine months ended September 30, 2020, a turnaround from the prior period's loss Key Financial Data for Q1-Q3 2020 (Thousand MYR) | Indicator | For the Nine Months Ended Sep 30, 2020 | For the Nine Months Ended Sep 30, 2019 (Restated) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 71,060 | 72,774 | -2.3% | | Gross Profit | 22,440 | 21,741 | +3.2% | | Profit/(Loss) for the Period from Continuing Operations | 3,758 | (1,858) | Turned to Profit | | Total Profit/(Loss) for the Period | 3,758 | (4,402) | Turned to Profit | | Profit/(Loss) Attributable to Owners of the Company | 3,758 | (3,896) | Turned to Profit | Earnings/(Loss) Per Share (Sen) | Indicator | For the Nine Months Ended Sep 30, 2020 | For the Nine Months Ended Sep 30, 2019 (Restated) | | :--- | :--- | :--- | | Basic and Diluted (Continuing Operations) | 0.67 | (0.26) | | Basic and Diluted (Discontinued Operations) | - | (0.48) | | Total | 0.67 | (0.74) | Unaudited Condensed Consolidated Statement of Changes in Equity Total equity attributable to owners increased to MYR 130.38 million by September 30, 2020, driven by profit and comprehensive income Summary of Changes in Equity (Thousand MYR) | Item | Amount | | :--- | :--- | | Balance as at January 1, 2020 | 125,459 | | Total Comprehensive Income for the Period | 4,924 | | Balance as at September 30, 2020 | 130,383 | Notes to the Financial Information This section details financial statement preparation, accounting policies, segment information, and key account specifics General Information and Accounting Policies The company, an investment holding entity listed on GEM, manufactures elastic textiles, webbing, PVC products, and apparel retail - The company's principal activities include manufacturing and selling elastic textiles, webbing, PVC-related products, and apparel retail[36] - The controlling shareholder is PRG Holdings Berhad, listed on the Main Market of Bursa Malaysia Securities Berhad[36] - The adoption of new and revised accounting standards had no significant impact on the Group's financial statements[37] Revenue and Segment Information Manufacturing is the primary revenue and profit driver, while retail incurred a loss, with Asia Pacific as the main regional revenue source Segment Results for the First Nine Months of 2020 (Thousand MYR) | Segment | Revenue | Profit/(Loss) Before Income Tax | | :--- | :--- | :--- | | Manufacturing | 68,745 | 11,549 | | Retail | 2,107 | (4,423) | | Others | 208 | (2,050) | | Total | 71,060 | 5,076 | Revenue by Geographical Region for the First Nine Months of 2020 (Thousand MYR) | Region | Revenue | | :--- | :--- | | Asia Pacific | 53,149 | | Europe | 4,848 | | North America | 12,163 | | Others | 900 | | Total | 71,060 | - During the period, revenue from a single major customer A amounted to MYR 10.26 million, representing approximately 14.4% of total revenue[54] Discontinued Operations The Group disposed of its Vietnamese subsidiary, PEWAV (VN), whose 2019 results were classified as discontinued operations - The Group disposed of its Vietnamese subsidiary PEWAV (VN), with its operations classified as discontinued in 2019[66] - For the first nine months of 2019, the discontinued operation recorded a loss of MYR 2.54 million[70] Dividends The Board does not recommend the payment of any dividend for the period - The Board does not recommend the payment of any dividend for the period[74] Management Discussion and Analysis This section provides an overview of the Group's business and financial performance, along with future outlook Business Review The Group's business was significantly impacted by COVID-19, affecting both manufacturing and retail divisions Manufacturing Division Manufacturing revenue slightly increased due to new PVC business, despite a decline in core elastic textile and webbing sales - Manufacturing division revenue was approximately MYR 68.7 million, representing a 1.0% year-on-year increase[79] - Revenue from elastic textiles and webbing both decreased by 9.0% year-on-year, primarily due to lower sales volume to customers in Asia Pacific, Europe, and North America[83][84] - Revenue from other products (mainly PVC products) increased by 37.0% to MYR 20.0 million, mainly due to contributions from the newly acquired business[85] Retail Division Retail revenue significantly decreased due to reduced tourism, lower consumer spending, and temporary store closures - Retail division revenue decreased by 55.3% year-on-year to MYR 2.1 million[88] - The decline in revenue was attributed to reduced tourist arrivals, weaker consumer spending, and the temporary closure of Singapore stores due to the COVID-19 outbreak[88] Financial Review Despite a revenue decline, gross profit increased, leading to a turnaround in profit for the period - Total revenue decreased by 2.3% to MYR 71.1 million, while cost of sales decreased by 4.7% to MYR 48.6 million[89][93] - Gross profit increased by 3.2% to MYR 22.4 million, primarily due to lower raw material costs[94] - Net other income increased by MYR 2.8 million, mainly from a MYR 3.2 million gain on disposal of a subsidiary[95] - Administrative expenses decreased by 10.5%, due to a MYR 1.5 million one-off professional fee incurred in the prior period[97] - Profit for the period was MYR 3.8 million, representing a turnaround from loss, though partially offset by a MYR 4.4 million loss in the retail division[99] Future Prospects and Outlook Management maintains a cautious outlook due to global economic challenges, focusing on cost control and sustainability - The global outlook remains bleak due to resurgent pandemics, trade wars, and supply chain disruptions, creating a highly challenging operating environment[102] - The company continuously reviews supply and demand conditions and implements cost reduction measures to ensure financial continuity and long-term sustainability[102] Other Information This section covers corporate governance, directors' and shareholders' interests, and the Audit Committee's review Corporate Governance and Compliance The company complied with corporate governance codes, with minor rectifications, and confirmed no securities transactions - The company complied with the Corporate Governance Code during the period, except for a temporary non-compliance regarding the insufficient number of independent non-executive directors, which has since been rectified[109][110] - The controlling shareholder, PRG Holdings, has confirmed compliance with the non-competition undertaking[120] - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the period[122] Directors' and Shareholders' Interests The report details shareholdings of directors and major shareholders, including the controlling shareholder PRG Holdings Major Shareholders' Interests (As at September 30, 2020) | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | PRG Holdings | Beneficial Owner | 303,468,000 (L) | 54.19% | | CHAM Kah Weng | Beneficial Owner/Spouse's Interest | 65,064,000 (L) | 11.62% | - Several directors hold shares in the controlling company, PRG Holdings[125] Review by Audit Committee The Audit Committee reviewed the unaudited consolidated results, confirming compliance with accounting standards and listing rules - The Audit Committee has reviewed the Group's unaudited condensed consolidated results for the period[144] - The Audit Committee is of the opinion that the results were prepared in accordance with applicable accounting standards, requirements under the GEM Listing Rules, and other relevant legal provisions, with adequate disclosures[144]