Financial Performance - For the nine months ended December 31, 2020, the company recorded unaudited revenue of approximately HKD 16.1 million, a decrease of about 17.8% compared to the same period last year[6]. - The company reported an unaudited loss attributable to owners of HKD 9 million for the nine months ended December 31, 2020, compared to a loss of HKD 3.5 million in the same period last year, primarily due to a revenue decrease of HKD 3.5 million and an increase in administrative expenses of HKD 4.5 million[6]. - The basic and diluted loss per share for the nine months ended December 31, 2020, was approximately HKD 2.26, compared to HKD 0.87 for the same period in 2019[7]. - The gross profit for the nine months ended December 31, 2020, was HKD 6.216 million, down from HKD 9.853 million in the same period last year[10]. - The operating loss for the nine months ended December 31, 2020, was HKD 9.891 million, compared to an operating loss of HKD 2.927 million in the same period last year[10]. - The company’s total comprehensive loss attributable to owners for the nine months ended December 31, 2020, was HKD 9.047 million, compared to HKD 3.489 million in the same period last year[10]. - For the nine months ended December 31, 2020, total revenue was HKD 16,163,000, a decrease of 18% compared to HKD 19,668,000 for the same period in 2019[27]. - The company reported a deferred tax expense of HKD (486,000) for the three months ended December 31, 2020, compared to a deferred tax income of HKD 352,000 for the same period in 2019[28]. - For the nine months ended December 31, 2020, the company reported a loss attributable to owners of approximately HKD 9,047,000, compared to a loss of HKD 3,489,000 for the same period in 2019, representing an increase in loss of 159.5%[34]. - The basic loss per share for the nine months ended December 31, 2020, was HKD (2.26), compared to HKD (0.87) for the same period in 2019, indicating a deterioration in performance[34]. Revenue Breakdown - For the three months ended December 31, 2020, total revenue was HKD 8,924,000, an increase of 30% compared to HKD 6,871,000 for the same period in 2019[27]. - Sales of equipment for the three months ended December 31, 2020, were HKD 8,273,000, up 72% from HKD 4,806,000 in the same period of 2019[27]. - Technical service revenue for the three months ended December 31, 2020, was HKD 651,000, down 68% from HKD 2,065,000 in the same period of 2019[27]. - The company’s revenue from static 3D scanning solutions for the three months ended December 31, 2020, was HKD 4,299,000, a decrease of 33% from HKD 6,406,000 in the same period of 2019[27]. - Revenue from static 3D scanning increased to HKD 11.3 million (70.1% of total revenue) in 2020, while dynamic 3D scanning revenue decreased to HKD 4.8 million (29.9% of total revenue) from HKD 9.9 million in 2019[42]. Expenses and Liabilities - Administrative expenses for the nine months ended December 31, 2020, increased to HKD 13.629 million from HKD 9.091 million in the previous year[10]. - The company’s financial expenses for the nine months ended December 31, 2020, were HKD 17, a decrease from HKD 19 in the previous year[10]. - The total lease liabilities as of December 31, 2020, amounted to HKD 313,768,000, with the company only having short-term leases[24]. - The group had a debt-to-equity ratio of 39.0% as of December 31, 2020, with a credit loan of HKD 2.28 million from the Industrial and Commercial Bank of China[50]. - Administrative expenses increased by 50% to HKD 13.6 million in 2020, up from HKD 9 million in 2019, mainly due to increased intangible asset amortization and R&D expenses[47]. Business Development and Strategy - The company experienced a significant increase in sales during the fourth quarter, as the sales department indicated ongoing negotiations for commercial contracts, expecting substantial growth compared to the third quarter[6]. - The company secured five new precision 3D inspection projects and completed two existing projects during the reporting period, resulting in a total of 15 ongoing projects as of December 31, 2020[37]. - The company signed approximately RMB 8 million in new sales contracts in the third quarter of 2020, indicating a recovery in business performance following the impact of the COVID-19 pandemic[39]. - The company is currently negotiating a sales contract worth approximately HKD 20 million, with expectations for performance to improve in the fourth quarter[39]. - The company plans to continue organic growth and expand its operational scale to enhance market competitiveness and increase market share[38]. - The company aims to expand its sales team and coverage area to increase market share and secure new contracts, addressing the lack of long-term agreements with clients[61]. Research and Development - The company emphasizes research and development investment to strengthen its core technologies and has developed proprietary intangible assets such as scanning detection software and data recognition and analysis systems[38]. - The company plans to enhance its R&D efforts and establish its own R&D center to maintain technological leadership and competitiveness in the rapidly changing smart manufacturing solutions market[63]. - The company holds 16 registered patents, including six invention patents and ten utility model patents, and has eight pending invention patent registrations as of December 31, 2020[37]. Corporate Governance - The company has complied with the applicable code provisions of the corporate governance code as of December 31, 2020[81]. - The company believes that Mr. Wu's dual role as Chairman and CEO provides strong and continuous leadership beneficial for the group's business prospects[80]. - The audit committee reviewed the quarterly performance for the nine months ended December 31, 2020, in a meeting held on January 25, 2021[87]. - The company has adopted the trading standards as per GEM Listing Rules for securities transactions by directors[82]. Dividend and Shareholder Information - The company does not recommend the distribution of an interim dividend for the nine months ended December 31, 2020, consistent with the previous year[32]. - As of December 31, 2020, Mr. Wu held 293,940,000 shares, representing 73.49% of the issued share capital[67]. - No share options were granted, exercised, cancelled, or lapsed from the adoption of the share option scheme on March 26, 2018, until December 31, 2020[74]. - The company did not engage in any related party transactions or continuing connected transactions during the reporting period[79].
民富国际(08511) - 2021 Q3 - 季度财报