ISP GLOBAL(08487) - 2020 Q3 - 季度财报

Financial Statements Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the three and nine months ended March 31, 2020, the company experienced a decline in both revenue and profit compared to the prior year Summary of Consolidated Statement of Profit or Loss (Unit: SGD) | Indicator | Three Months Ended March 31 (2020) | Three Months Ended March 31 (2019) | Nine Months Ended March 31 (2020) | Nine Months Ended March 31 (2019) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 1,691,852 | 2,556,146 | 5,617,736 | 6,716,705 | | Gross Profit | 605,042 | 748,376 | 2,079,727 | 2,142,192 | | Profit Before Tax | 240,952 | 314,007 | 353,661 | 401,757 | | Profit for the Period | 183,657 | 275,883 | 241,678 | 340,268 | | Basic Earnings Per Share (SGD cents) | 0.02 | 0.03 | 0.03 | 0.06 | Unaudited Condensed Consolidated Statement of Changes in Equity As of March 31, 2020, total equity slightly increased to approximately SGD 14.86 million, primarily driven by the period's profit Summary of Changes in Equity (For the Nine Months Ended March 31, 2020) | Item | Amount (SGD) | | :--- | :--- | | Balance as at July 1, 2019 (Audited) | 14,621,830 | | Profit for the Period | 241,678 | | Other Comprehensive Loss for the Period | (243) | | Balance as at March 31, 2020 (Unaudited) | 14,863,265 | Notes to the Financial Statements General Information and Basis of Preparation The company, an investment holding entity, primarily provides audio and communication system services in Singapore, with financial statements prepared in SGD under IFRS - The company's principal activities involve the sale of audio and communication systems and related services, integrated services, and alarm system services in Singapore[19] - The company is a subsidiary of Express Ventures Global Limited, ultimately controlled jointly by Mr. Mong Keng Yew and his spouse Ms. Chong Siew Lan[17] Revenue and Segment Information Total revenue for the nine months ended March 31, 2020, decreased by 16.4% to SGD 5.62 million, with all operations based in Singapore Revenue by Business Segment (Unit: SGD) | Business Segment | Nine Months Ended March 31, 2020 | Nine Months Ended March 31, 2019 | | :--- | :--- | :--- | | Sale of Audio and Communication Systems and Related Services | 4,318,118 | 4,921,278 | | Integrated Services for Audio and Communication Systems | 642,960 | 1,138,769 | | AAS Services | 656,658 | 656,658 | | Total | 5,617,736 | 6,716,705 | - All of the Group's business operations and revenue are derived from Singapore[26] Notes on Other Financial Items Net other income for the nine months ended March 31, 2020, turned positive due to foreign exchange gains, while staff costs and income tax expenses increased - Other income and losses for the nine-month period shifted from a loss of SGD 0.047 million in the prior year to a gain of SGD 0.181 million, primarily due to foreign exchange gains[27] - Total staff costs (including directors' remuneration) for the nine-month period increased from SGD 2.25 million in the prior year to SGD 2.50 million[32] - Income tax expense for the nine-month period increased from SGD 0.061 million in the prior year to SGD 0.112 million[34] Earnings Per Share and Dividends Basic and diluted earnings per share for the nine months ended March 31, 2020, decreased to SGD 0.03 cents, with no dividends proposed or paid Earnings Per Share | Indicator | Nine Months Ended March 31, 2020 | Nine Months Ended March 31, 2019 | | :--- | :--- | :--- | | Basic and Diluted Earnings Per Share (SGD cents) | 0.03 | 0.06 | - No dividends were proposed or paid by the company during the reporting period[37] Management Discussion and Analysis Business Development and Prospects Net profit declined due to project slowdowns in Q1 2020, with COVID-19 measures in Singapore creating uncertain impacts, while the Group plans for expansion - Net profit for the nine months ended March 31, 2020, was approximately SGD 0.2 million, lower than SGD 0.3 million in the prior year, primarily due to reduced gross profit from project slowdowns in Q1 2020[39] - The Singapore government implemented work suspension measures from April 7, 2020, in response to the COVID-19 pandemic, with the extent of impact on the Group's business and financial performance remaining uncertain[40][43] - The Group plans to expand its personnel and equipment, actively seeking opportunities to broaden its customer base and market share, while also evaluating the feasibility of business expansion in China and Southeast Asia[44][46] Financial Review Revenue decreased by 16.4% to SGD 5.6 million due to project delays, though gross profit margin improved, while administrative expenses and other income saw changes - Revenue decreased by 16.4% year-on-year to approximately SGD 5.6 million, primarily due to work stoppages and project delays[47] - Gross profit margin increased from 31.9% in the prior year to 37.0%, driven by enhanced profitability in the audio and communication systems sales and related services segment[48] - Administrative expenses increased by 12.8% year-on-year to approximately SGD 2.0 million, mainly due to higher staff salaries and an increase in administrative personnel[51] - Other income significantly increased from a loss of SGD 0.047 million in the prior year to a gain of SGD 0.181 million, primarily from foreign exchange gains[53] Use of Proceeds from Share Offer As of March 31, 2020, the company utilized HKD 17 million (38.6%) of its IPO proceeds, mainly for loan repayment and working capital, with some plans postponed Use of Proceeds from Share Offer (As of March 31, 2020) | Purpose | Allocated Amount (HKD Million) | Actual Use (HKD Million) | Percentage Utilized | | :--- | :--- | :--- | :--- | | Enhance Marketing Efforts | 1.4 | 0.2 | 14.3% | | Expand and Train Workforce | 11.6 | 2.8 | 24.1% | | Purchase Vehicles | 3.0 | 0.5 | 16.7% | | Establish New Sales Offices | 10.0 | – | 0.0% | | Repay Part of Bank Loans | 10.0 | 10.0 | 100.0% | | Provide Resources for Performance Guarantees | 2.0 | – | 0.0% | | Obtain Higher Grade Qualifications | 2.5 | – | 0.0% | | General Working Capital | 3.5 | 3.5 | 100.0% | | Total | 44.0 | 17.0 | 38.6% | - Unutilized proceeds are held as interest-bearing deposits with authorized financial institutions in Hong Kong and Singapore[77] Post-Reporting Period Events Singapore's extended work suspension until June 1, 2020, will further slow project progress, with the full impact of COVID-19 on the Group's performance still unassessable - Singapore's work suspension measures were extended to June 1, 2020, further slowing the Group's business project progress[78] - Due to the potential continuation of the pandemic, the extent of COVID-19's impact on the Group's business and financial performance cannot currently be assessed[81] Disclosure of Interests and Other Information Disclosure of Directors' and Major Shareholders' Interests As of March 31, 2020, controlling shareholders Mr. Mong Keng Yew and Ms. Chong Siew Lan jointly held 50.75% of the company's shares through Express Ventures - Executive Directors Mr. Mong Keng Yew and Ms. Chong Siew Lan are deemed to jointly hold 406,000,000 shares, representing 50.75% of the company's equity, through their controlled corporation Express Ventures[88][91][92] Major Shareholders' Shareholding | Name | Capacity/Nature | Number of Shares Held | Percentage of Equity | | :--- | :--- | :--- | :--- | | Express Ventures | Beneficial Owner | 406,000,000 | 50.75% | | Peng Xiaomin | Beneficial Owner | 41,650,000 | 5.21% | | Cai Linzhou | Beneficial Owner | 41,400,000 | 5.18% | Corporate Governance and Compliance The company adheres to GEM Listing Rules for directors' securities transactions, maintains sufficient public float, and its audit committee has reviewed the unaudited quarterly results - The company has adopted a code of conduct for directors' securities transactions, and all directors have confirmed compliance with the required standards during the reporting period[106] - The company maintained a sufficient public float as stipulated by the GEM Listing Rules[108] - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited third-quarter results for the period[116] - No share options have been granted under the share option scheme since its adoption[113]