Financial Performance - The group's revenue decreased from approximately HKD 15,924,000 to HKD 15,131,000, a reduction of about HKD 793,000 for the nine months ended September 30, 2021[7]. - Gross profit for the nine months ended September 30, 2021, was approximately HKD 4,373,000, with a gross margin of about 28.90%, compared to a gross profit of HKD 1,117,000 and a margin of 7.01% for the same period in 2020[7]. - Loss attributable to equity shareholders increased from approximately HKD 1,835,000 to HKD 4,467,000, an increase of about HKD 2,632,000 for the nine months ended September 30, 2021[7]. - Other income decreased significantly due to reduced COVID-19 related rent concessions, contributing to the overall revenue decline[7]. - Administrative expenses increased due to higher employee costs, impacting the overall financial performance[7]. - Operating loss for the nine months ended September 30, 2021, was approximately HKD 4,233,000, compared to an operating profit of HKD 1,463,000 for the same period in 2020[15]. - The company reported a net loss of HKD 4,484,000 for the nine months ended September 30, 2021, compared to a net loss of HKD 1,835,000 for the same period in 2020[15]. - Other income for the nine months ended September 30, 2021, was approximately HKD 1,179,000, down from HKD 6,696,000 in the previous year[15]. - The total comprehensive loss for the period was HKD 4,587,000, compared to a total comprehensive loss of HKD 1,948,000 for the same period in 2020, indicating a significant increase of about 135%[18]. - The basic loss per share for the nine months ended September 30, 2021, was HKD 0.56, compared to HKD 0.23 for the same period in 2020, reflecting an increase in loss per share of approximately 143%[18]. - The company reported a total loss of HKD 4,467,000 attributable to equity shareholders for the nine months ended September 30, 2021[56]. - Revenue decreased from approximately HKD 15,924,000 for the nine months ended September 30, 2020, to approximately HKD 15,131,000 for the nine months ended September 30, 2021, a decline of about 4.95%[74]. Revenue Sources - The company’s revenue primarily comes from providing photography services through self-service digital photo booths in Hong Kong and Guangdong Province, China[33]. - Revenue from Hong Kong for the nine months ended September 30, 2021, was HKD 14,098,000, down from HKD 14,860,000 in the previous year[44]. - Revenue from Mainland China for the nine months ended September 30, 2021, was HKD 1,033,000, slightly down from HKD 1,064,000 in the same period of 2020[44]. Expenses and Costs - Administrative expenses rose from approximately HKD 8,946,000 for the nine months ended September 30, 2020, to approximately HKD 9,972,000 for the nine months ended September 30, 2021, an increase of about 11.5% primarily due to increased employee costs[80]. - Service costs for the nine months ended September 30, 2021, included approximately 78.88% of total service costs attributed to rental fees and depreciation of usage rights assets[75]. - Financing costs related to lease liabilities were approximately HKD 258,000 and HKD 359,000 for the nine months ended September 30, 2021, and 2020, respectively, indicating a decrease of about 28%[81]. Business Operations and Strategy - The company has commenced medical business operations after the nine months ended September 30, 2021, indicating a potential expansion into new markets[37]. - The company plans to open more clinics/medical centers in Hong Kong by the end of 2021, having already rented two locations for medical operations[71]. - The company is actively exploring diversification opportunities, including expanding its self-service photo booth network and enhancing its verification center and IT infrastructure[70]. - The company is focused on strengthening its core business while exploring new business opportunities for sustainable growth and increased shareholder value[71]. - The company plans to enhance its IT capabilities to meet future business trends and customer demands, having engaged vendors to upgrade its IT infrastructure, including remote monitoring and electronic payment systems[132]. - Business development in Guangdong Province and Hong Kong has been delayed due to the COVID-19 outbreak and changing policies regarding identification photos in mainland China[135]. - The company will continue to assess and modify existing plans based on recent market conditions to achieve sustainable business growth and long-term shareholder benefits[135]. Shareholder Information - Causeway Treasure holds a total of 427,600,560 shares, representing 53.45% of the company's equity[118]. - The beneficial ownership of Causeway Treasure is divided among Chen Yongji and Chen Tianqi, each holding approximately 47.25%, and Ouyang Yinghe holding about 5.5%[119]. - As of September 30, 2021, Photo-Me holds 109,972,500 shares, accounting for 13.75% of the company's equity[118]. - The Chen family, through Causeway Treasure, collectively holds approximately 53.45% of the company's issued share capital as of September 30, 2021[126]. - The board consists of seven members, including three independent non-executive directors, ensuring proper governance and shareholder interests[123]. Compliance and Governance - The company’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[28]. - The company adhered to all applicable corporate governance codes as of September 30, 2021, demonstrating a commitment to high standards of corporate governance[100]. - The company has established a risk management framework to monitor and manage liquidity risks effectively, ensuring sufficient cash and cash equivalents[89]. - The company has not identified any potential conflicts of interest among its directors and management[123]. Capital and Financing - 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[130]. - As of September 30, 2021, approximately HKD 7.84 million of the net proceeds had been utilized, leaving HKD 24.02 million unutilized[131]. - All unutilized proceeds have been deposited in licensed banks in Hong Kong as of the report date[136]. - The company has a credit facility of RMB 5,300,000, which was renewed and expired on June 30, 2021[126]. - The company maintained a cash flow from operating activities to fund its operations, with no interest-bearing borrowings as of September 30, 2021, indicating a strong liquidity position[89]. Employment and Workforce - The number of employees decreased from 53 as of September 30, 2020, to 37 as of September 30, 2021, reflecting a reduction in workforce[88].
名仕快相(08483) - 2021 Q3 - 季度财报