Financial Performance - For the three months ended December 31, 2019, the company reported revenue of HKD 84,008,000, a slight decrease of 0.17% compared to HKD 84,151,000 in the same period of 2018[6]. - Gross profit for the nine months ended December 31, 2019, was HKD 44,965,000, representing an increase of 12.4% from HKD 40,123,000 in the same period of 2018[6]. - The net profit attributable to owners for the nine months ended December 31, 2019, was HKD 12,475,000, down 34.8% from HKD 19,139,000 in the same period of 2018[6]. - Basic and diluted earnings per share for the nine months ended December 31, 2019, were HKD 3.12 cents, compared to HKD 4.78 cents in the same period of 2018, reflecting a decrease of 34.7%[6]. - Total revenue for the nine months ended December 31, 2019, was HKD 220.123 million, slightly down from HKD 220.074 million in the same period of 2018[64]. - The total comprehensive income decreased by approximately 34.8% from HKD 19.1 million to HKD 12.5 million, mainly due to reduced foreign exchange gains[99]. Expenses and Costs - The company incurred selling and distribution expenses of HKD 13,113,000 for the nine months ended December 31, 2019, which is an increase of 37.5% from HKD 9,577,000 in the same period of 2018[6]. - Administrative expenses rose from approximately HKD 11.1 million to HKD 12.1 million, mainly due to increased salaries and allowances for directors and staff[96]. - Financing costs increased from approximately HKD 4.0 million to HKD 6.6 million due to higher trust receipt loans[97]. - The financing costs for the three months ended December 31, 2019, amounted to HKD 2.328 million, compared to HKD 1.780 million in the same period of 2018, reflecting a 30.8% increase[70]. - The company reported a total employee cost of HKD 3.385 million for the three months ended December 31, 2019, compared to HKD 2.502 million in the same period of 2018, indicating a 35.3% increase[71]. Revenue Sources - Revenue from wine products for the three months ended December 31, 2019, was HKD 81.446 million, compared to HKD 78.438 million for the same period in 2018, representing an increase of 2.6%[63]. - The company operates solely in Hong Kong, with all revenue generated from the sale and distribution of alcoholic beverages within the region[64]. - The company's revenue remained stable at approximately HKD 220.1 million for the nine months ended December 31, 2019[90]. Assets and Liabilities - The company’s total assets as of December 31, 2019, amounted to HKD 199,702,000, an increase from HKD 173,597,000 as of December 31, 2018[13]. - Cost of sales decreased by approximately 2.7% from HKD 180.0 million to HKD 175.2 million for the nine months ended December 31, 2019[91]. - The company recognized additional lease liabilities and right-of-use assets amounting to HKD 16.4 million upon the initial application of HKFRS 16 on April 1, 2019[58]. Corporate Governance - The company has not declared any dividends for the current period[100]. - The company is committed to high standards of corporate governance to protect shareholder interests[127]. - The Audit Committee was established on December 18, 2017, in accordance with GEM Listing Rules and consists of three independent non-executive directors[130]. - The Audit Committee reviewed the unaudited consolidated performance of the group for the period and confirmed compliance with applicable accounting standards and GEM Listing Rules[130]. Future Outlook and Strategy - The company plans to continue expanding its market presence and product offerings in the wine and alcoholic beverage sector[21]. - The company is focused on enhancing operational efficiency and reducing costs to improve profitability in the upcoming quarters[21]. - Future outlook indicates a cautious approach due to market volatility and potential risks associated with the GEM listing[2]. - The company plans to enhance its warehousing capabilities and is exploring suitable properties for acquisition as part of its expansion strategy[102]. Accounting Standards - The company has adopted HKFRS 16, which replaces HKAS 17, impacting the accounting treatment of leases[34]. - The initial measurement of lease liabilities is based on the present value of unpaid lease payments at the lease commencement date[47]. - The cost of right-of-use assets includes the initial measurement amount of lease liabilities and any lease payments made before the commencement date[42]. - The company recognizes right-of-use assets at the lease commencement date, measured at cost less accumulated depreciation and impairment losses[41]. - Lease payments include fixed payments and variable lease payments based on indices or rates[48]. - The company will remeasure lease liabilities if there are changes in lease terms or assessments of purchase options[51]. - The impact of adopting HKFRS 16 on the financial position and performance of the company is not expected to be significant[33]. - The company will present right-of-use assets as a separate line item in the consolidated financial position statement[45]. - The company applies the exemption for short-term leases, recognizing lease payments as expenses on a straight-line basis over the lease term[40]. - The weighted average incremental borrowing rate applied was 4.7% for the lease liabilities recognized[58]. Shareholding and Securities - The company has a total beneficial interest of 70% held by the controlling shareholder as of January 23, 2020[118]. - As of December 31, 2019, the company had 400,000,000 shares issued, with Shirz Limited holding 168,000,000 shares (42%) and Sunshine Consultancy holding 112,000,000 shares (28%)[115]. - The financing agreement includes a credit facility of up to HKD 110,000,000 and an overdraft facility of up to HKD 3,000,000[117]. - No stock options have been granted, exercised, canceled, or lapsed since the adoption of the stock option plan on December 18, 2017[121]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[122]. - The company has complied with the non-competition agreement established on December 18, 2017, with its major shareholders[125]. - The company has adopted a code of conduct for securities trading, ensuring compliance with GEM Listing Rules[126]. - No interests were reported by the compliance advisor or its associates as of December 31, 2019[129]. - The approximate percentage of shareholdings is calculated based on the total issued shares as of December 31, 2019[115].
威扬酒业控股(08509) - 2020 Q3 - 季度财报