Financial Performance - The group's revenue decreased from approximately HKD 47,622,000 for the nine months ended September 30, 2019, to approximately HKD 15,924,000 for the nine months ended September 30, 2020, a decline of about 66.6%[7] - Gross profit for the nine months ended September 30, 2020, was approximately HKD 1,117,000, down from HKD 17,920,000 for the same period in 2019, resulting in a gross margin of 7.01% compared to 37.63% in 2019[7] - The loss attributable to equity shareholders increased from a profit of approximately HKD 6,133,000 for the nine months ended September 30, 2019, to a loss of approximately HKD 1,835,000 for the same period in 2020[7] - The group reported an operating loss of approximately HKD 1,463,000 for the nine months ended September 30, 2020, compared to an operating profit of HKD 7,915,000 for the same period in 2019[16] - The group reported a net loss of approximately HKD 1,835,000 for the nine months ended September 30, 2020, compared to a profit of HKD 6,133,000 for the same period in 2019[16] - The total comprehensive income for the nine months ended September 30, 2020, was a loss of HKD 1,948,000 compared to a profit of HKD 5,926,000 in the same period of 2019[18] - The basic and diluted loss per share for the nine months ended September 30, 2020, was HKD (0.23) compared to earnings of HKD 0.77 in the same period of 2019[18] - Revenue for the nine months ended September 30, 2020, was HKD 15,924,000, a decrease from HKD 47,622,000 in the same period of 2019[36] - The reported segment profit for the nine months ended September 30, 2020, was HKD 6,739,000, down from HKD 16,820,000 in the same period of 2019[36] - The company incurred a loss of HKD 1,835,000 during the period, compared to a profit of HKD 6,133,000 in the previous year[21] Impact of COVID-19 - The COVID-19 pandemic has significantly impacted the photography service market and the group's operating environment since early 2020, contributing to the revenue decline[7] - The impact of COVID-19 has created significant uncertainty in the photography service market, affecting sales and operational costs[54] - The company has taken measures to mitigate the impact of COVID-19, including negotiating fee reductions and seeking better terms from suppliers[54] - The company's financial performance reflects the ongoing challenges posed by the pandemic, with a focus on cost management and exploring new revenue streams moving forward[7] - Business development in Guangdong Province and Hong Kong has been delayed due to the COVID-19 outbreak and changing government policies[125] Administrative and Other Expenses - Administrative expenses decreased from HKD 10,138,000 for the nine months ended September 30, 2019, to HKD 8,946,000 for the same period in 2020, a reduction of about 11.7%[16] - Other income increased significantly to approximately HKD 6,696,000 for the nine months ended September 30, 2020, compared to HKD 356,000 for the same period in 2019[16] - The company reported financing costs of HKD 359,000 for the nine months ended September 30, 2020[36] - The company experienced a foreign exchange loss of HKD 113,000 during the period[21] - Service costs accounted for approximately 82.32% and 80.66% of total service costs for the nine months ended September 30, 2020, and 2019, respectively[65] Dividends and Shareholder Information - The company does not recommend the declaration of any interim dividend for the nine months ended September 30, 2020[7] - The company declared dividends of HKD 4,000,000 during the period, consistent with the previous year[21] - The company declared an interim dividend of HKD 0.005 per share, totaling HKD 4,000,000, which was approved by shareholders[47] - The company’s major shareholders include Mr. Chan Wing Chai and Mr. Chan Tin Ki, each holding approximately 53.45% of the shares[103] - As of September 30, 2020, Causeway Treasure holds 427,600,560 shares, representing approximately 53.45% of the company's equity[110] - Photo-Me International Plc. owns 109,972,500 shares, accounting for 13.75% of the company's equity[110] Assets and Liabilities - The company’s total assets decreased to HKD 51,241,000 as of September 30, 2020, from HKD 62,227,000 as of September 30, 2019[21] - As of September 30, 2020, the company had no interest-bearing borrowings, resulting in an asset-liability ratio being not applicable[81] - The company has established a liquidity risk management framework to manage short-term, medium-term, and long-term funding needs[81] - There were no significant investments made by the company as of September 30, 2020, and September 30, 2019[83] - The company did not engage in any major acquisitions or disposals of subsidiaries, associates, or joint ventures during the periods ending September 30, 2020, and September 30, 2019[86] - There were no assets pledged as collateral by the company as of September 30, 2020, and September 30, 2019[87] - The company reported no significant contingent liabilities as of September 30, 2020, and September 30, 2019[88] Business Development and Future Plans - The company is actively exploring potential projects to strengthen its business and diversify its operations in response to the ongoing challenges posed by the COVID-19 pandemic[61] - The company is focusing on expanding its self-service digital photo booth network and upgrading its verification centers and IT infrastructure[61] - The company has engaged a vendor to upgrade its IT infrastructure, including remote monitoring systems and electronic payment facilities[122] - The company plans to assess the possibility of upgrading verification systems in Hong Kong and mainland China[122] - The company will reassess existing plans to achieve sustainable business growth and long-term benefits for shareholders[125] Compliance and Governance - The company has complied with all applicable corporate governance code provisions as of September 30, 2020[93] - The company has appointed a compliance advisor to provide guidance on compliance with GEM listing rules[96] - The audit committee reviewed the unaudited consolidated results for the nine months ended September 30, 2020, ensuring compliance with applicable accounting standards and GEM listing rules[118] Share Sales and Proceeds - The company raised approximately HKD 62,000,000 from the sale of 200,000,000 shares at HKD 0.31 per share, with a net amount of approximately HKD 31,852,000[120] - As of September 30, 2020, approximately HKD 7,126,000 of the net proceeds from the share sale has been utilized[121] - All unutilized funds have been deposited in licensed banks in Hong Kong[126]
名仕快相(08483) - 2020 Q3 - 季度财报