Financial Performance - The company recorded unaudited revenue of approximately HKD 19.7 million for the nine months ended December 31, 2019, a decrease of about 5.5% compared to the same period last year[5]. - The unaudited loss attributable to owners of the company for the nine months ended December 31, 2019, was HKD 3.5 million, compared to a loss of HKD 3.0 million in the same period last year, primarily due to a decrease in gross profit[5]. - Basic and diluted loss per share for the nine months ended December 31, 2019, was approximately HKD 0.87, compared to HKD 0.77 for the same period in 2018[6]. - Gross profit for the nine months ended December 31, 2019, was HKD 9.85 million, down from HKD 10.43 million in the previous year[9]. - Operating loss for the nine months ended December 31, 2019, was HKD 2.93 million, compared to a loss of HKD 2.49 million in the same period last year[9]. - The company’s total comprehensive loss for the nine months ended December 31, 2019, was HKD 3.49 million, compared to a loss of HKD 3.04 million in the same period last year[11]. - The company’s financial income for the nine months ended December 31, 2019, was HKD 19, a significant decrease from HKD 287 in the previous year[9]. - For the three months ended December 31, 2019, total revenue was HKD 6,871,000, a decrease of 44.5% compared to HKD 12,387,000 for the same period in 2018[26]. - For the nine months ended December 31, 2019, total revenue was HKD 19,668,000, a slight decrease of 0.7% compared to HKD 20,808,000 for the same period in 2018[26]. Revenue Breakdown - The sales of precision 3D inspection solutions equipment for the nine months ended December 31, 2019, amounted to HKD 16,718,000, an increase of 19.7% compared to HKD 13,972,000 in 2018[26]. - The company’s dynamic 3D scanning revenue for the nine months ended December 31, 2019, was HKD 9,895,000, a significant increase compared to HKD 1,572,000 in 2018[26]. - Revenue from static 3D scanning was HKD 9.8 million, accounting for 49.7% of total revenue, while dynamic 3D scanning generated HKD 9.9 million, making up 50.3% of total revenue[40]. - The company’s precision mechanical solutions segment reported no revenue for the three months ended December 31, 2019, compared to HKD 787,000 in 2018[26]. Expenses and Costs - The company incurred total administrative expenses of HKD 9.09 million for the nine months ended December 31, 2019, compared to HKD 9.47 million in the previous year[9]. - The company’s sales and marketing expenses for the nine months ended December 31, 2019, were HKD 3.86 million, compared to HKD 3.54 million in the previous year[9]. - Gross profit decreased by 5.5% to HKD 9.9 million for the nine months ended December 31, 2019, from HKD 10.4 million for the same period in 2018, with a gross margin of 50.1%[43]. - Sales and marketing expenses increased by 9.0% to HKD 3.9 million for the nine months ended December 31, 2019, from HKD 3.5 million for the same period in 2018, mainly due to an expanded sales and marketing team[44]. - Administrative expenses decreased by 4.0% to HKD 9.1 million for the nine months ended December 31, 2019, from HKD 9.5 million for the same period in 2018, due to the absence of travel and preparation costs related to the company's GEM listing[45]. - The company recorded a decrease in cost of sales by 5.4% to HKD 9.8 million for the nine months ended December 31, 2019, from HKD 10.4 million for the same period in 2018, mainly due to a reduction in equipment costs[42]. Taxation - The company reported a tax expense of HKD 382,000 for the three months ended December 31, 2019, compared to HKD 743,000 for the same period in 2018, representing a decrease of 48.6%[27]. - The statutory corporate income tax rate in Hong Kong is 16.5%, while the effective tax rate for its subsidiary in China is 15% due to its high-tech enterprise status[30]. Shareholder Information - As of December 31, 2019, Mr. Wu held 293,940,000 shares, representing 73.49% of the company's issued share capital[69]. - Major shareholder IFG Swans held 293,940,000 shares, also representing 73.49% of the issued share capital[74]. - RUAN David Ching Chi held 29,116,000 shares, representing 7.28% of the issued share capital[74]. Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules, with Mr. Wu serving as both Chairman and CEO to provide strong leadership[84]. - The audit committee was established on March 26, 2018, to oversee financial reporting and internal control systems[89]. - The quarterly performance for the nine months ended December 31, 2019, was reviewed by the audit committee on February 7, 2020[90]. Future Plans and Developments - The company plans to open a branch in Changsha to expand its sales coverage and improve customer service[37]. - The company aims to continue organic growth by developing new customers across different industries and strengthening relationships with existing clients[36]. - The company plans to enhance its research and development efforts by establishing its own R&D center and recruiting more technical talent to maintain a competitive edge in the rapidly changing smart manufacturing solutions market[61]. - The company is focusing on expanding its talent pool by recruiting professional sales, marketing, and administrative personnel for future business expansion[37]. - The company has completed 8 existing projects and secured 6 new projects during the reporting period, all related to precision 3D scanning solutions[36]. Dividend Policy - The company does not recommend the distribution of an interim dividend for the nine months ended December 31, 2019[31]. - The board does not recommend the payment of an interim dividend for the nine months ended December 31, 2019, consistent with the previous year[88]. Compliance and Risk Management - The company has implemented credit policies to monitor and manage credit risk associated with cash and cash equivalents, trade receivables, and other receivables[62]. - The company had no bank borrowings or other interest-bearing borrowings as of December 31, 2019[50]. - The company has no significant contingent liabilities or major investments as of December 31, 2019[51][57]. - The company did not engage in any related party transactions or continuous related party transactions during the reporting period[83]. Use of IPO Proceeds - The company aims to utilize the net proceeds of approximately HKD 25.0 million from its IPO for purposes described in its annual report published on June 27, 2019[66]. - The company reported a total usage of HKD 22.9 million out of the planned HKD 25 million for various purposes as of December 31, 2019, leaving a balance of HKD 2.1 million[67]. - As of December 31, 2019, the company utilized HKD 11.7 million for establishing its own R&D center and further R&D expenses related to product development, with a remaining balance of HKD 0.2 million expected to be used by March 2020[67]. - The company spent HKD 5.9 million on business expansion, including establishing sales branches in different regions of China, with a remaining balance of HKD 0.9 million expected to be used by March 2020[67]. - HKD 3.1 million was allocated for organizing seminars, participating in local and international exhibitions, and developing advertising plans, with a remaining balance of HKD 0.7 million expected to be used by March 2020[67].
民富国际(08511) - 2020 Q3 - 季度财报