Financial Performance - The group's revenue increased by approximately HKD 6,717,000 or 16.42% to HKD 47,622,000 for the nine months ended September 30, 2019, compared to HKD 40,905,000 for the same period in 2018[7]. - The gross profit for the nine months ended September 30, 2019, was approximately HKD 17,920,000, resulting in a gross margin of 37.63%, down from HKD 18,488,000 and a gross margin of 45.20% in the previous year[7]. - The group recorded a profit attributable to owners of the company of approximately HKD 6,133,000 for the nine months ended September 30, 2019, compared to a loss of HKD 172,000 for the same period in 2018, primarily due to the absence of listing expenses[7]. - The group's profit before tax (excluding non-recurring listing expenses) was approximately HKD 7,582,000 for the nine months ended September 30, 2019, compared to HKD 1,144,000 in the previous year[12]. - The total comprehensive income for the period was HKD 5,926,000, compared to a loss of HKD 771,000 in the same period last year[12]. - Basic earnings per share for the nine months ended September 30, 2019, was HKD 0.77, an increase from HKD (0.02) in the same period of 2018[14]. - The company reported a profit of HKD 1,849,000 for the three months ended September 30, 2019, compared to HKD 2,823,000 in the same period of 2018, indicating a decrease of approximately 34.5%[14]. - The total comprehensive income for the three months ended September 30, 2019, was HKD 1,629,000, down from HKD 2,507,000 in the same period of 2018, reflecting a decline of about 35%[14]. Expenses and Income - The administrative expenses increased to HKD 10,138,000 for the nine months ended September 30, 2019, from HKD 9,591,000 in the previous year[12]. - The group reported other income of HKD 356,000 for the nine months ended September 30, 2019, compared to HKD 161,000 in the previous year[12]. - The financing costs decreased significantly to HKD 333,000 from HKD 2,000 in the previous year[12]. - Other income increased from approximately HKD 161,000 to about HKD 356,000 due to higher levels of fixed deposits[54]. Dividends and Shareholder Information - The company did not recommend the declaration of any interim dividend for the nine months ended September 30, 2019[7]. - The company declared an interim dividend of HKD 0.005 per share, totaling HKD 4,000,000 for the six months ended June 30, 2019[37]. - The major shareholder, Causeway Treasure, holds 427,600,560 shares, representing approximately 53.45% of the company's equity[85]. - Photo-Me International Plc. is a beneficial owner with 109,972,500 shares, accounting for approximately 13.75% of the company's equity[85]. - The company’s major shareholders, including the Chen family, hold approximately 53.45% of the total issued share capital[91]. Corporate Governance and Compliance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, ensuring compliance and accountability[73]. - The audit committee has reviewed the unaudited consolidated results for the nine months ended September 30, 2019, and found them compliant with applicable accounting standards and GEM listing rules[92]. - All directors confirmed compliance with the trading standards as per GEM Listing Rules during the nine months ending September 30, 2019[74]. - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[73]. Future Outlook and Expansion Plans - The company aims to continue its market expansion and product development strategies in the upcoming quarters[12]. - The company plans to expand its self-service digital photo booth network in Hong Kong and replicate its business model in China and other countries, indicating significant growth potential[45]. - The company is currently in discussions with Guangzhou Zhuoteng Technology Co., Ltd. regarding several business opportunities in Guangdong Province and other provinces[95]. - The expansion plan in Guangdong Province has been delayed due to ongoing changes in government policies regarding identity photos[95]. - The company is monitoring market responses to new policies affecting its operations in Hong Kong and China, aiming to mitigate adverse impacts[46]. Capitalization and Financial Position - The company completed a capitalization issue on February 28, 2018, raising a total of HKD 62,000,000 through the issuance of new shares[19]. - As of September 30, 2019, the total equity attributable to the company's owners was HKD 62,227,000, an increase from HKD 58,316,000 at the end of the previous reporting period[16]. - As of September 30, 2019, the company had no significant contingent liabilities[69]. - The company raised approximately HKD 62 million from the sale of 200,000,000 shares at HKD 0.31 per share, with a net amount of approximately HKD 31.85 million[94]. - As of September 30, 2019, the company has utilized approximately HKD 7.03 million of the net proceeds, leaving approximately HKD 24.83 million unutilized[95]. - All unutilized proceeds have been deposited in a licensed bank in Hong Kong as of the reporting date[98]. Operational Developments - The company primarily operates in Hong Kong and Guangdong Province, China, providing digital photography services through self-service photo booths[21]. - The group has received a notification from the Hong Kong government for a 24-month contract to provide automatic photography services starting from March 1, 2019[48]. - The group is actively exploring opportunities to expand its self-service digital photo booth network and diversify its business for sustainable growth[51]. - The group is in discussions to expand its digital photo booth network to locations such as railway stations and shopping malls in China[48]. - The group has invited several suppliers to provide quotes for upgrading its IT infrastructure, including telemetry systems and electronic payment facilities[49]. - The company is currently reviewing terms and negotiating with suppliers regarding the upgrade of its verification center and IT infrastructure[97]. Significant Events - No significant events occurred after the reporting period that would impact the company's financial position[43]. - No share buybacks, sales, or redemptions of the company's listed securities occurred during the nine months ending September 30, 2019[75]. - No stock options were granted, lapsed, exercised, or cancelled under the company's share option scheme during the nine months ending September 30, 2019[88]. - There were no disclosed transactions requiring announcement during the reporting period[73].
名仕快相(08483) - 2019 Q3 - 季度财报