Financial Performance - For the three months ended March 31, 2020, the group recorded revenue of approximately HKD 9,705,000, a decrease of about 57.7% compared to HKD 22,933,000 for the same period in 2019[14] - Gross profit for the same period was approximately HKD 1,891,000, down 74.2% from HKD 7,321,000 in the previous year[14] - The group reported a net loss of HKD 4,376,000 for the three months ended March 31, 2020, compared to a net profit of HKD 1,446,000 for the same period in 2019[14] - The total revenue for the period was HKD 9,705,000, representing a decline of 57.6% from HKD 22,933,000 in the same quarter of 2019[32] - The company reported a loss of HKD 4,376,000 for the period, compared to a loss of HKD 2,094,000 in the previous year[20] - The basic and diluted loss per share for the period was HKD (0.91), compared to earnings of HKD 0.30 per share in the previous year[18] - The loss attributable to owners of the company for the three months ended March 31, 2020, was approximately HKD 4,376,000, compared to a profit of approximately HKD 1,446,000 for the same period in 2019[67] Revenue Breakdown - For the three months ended March 31, 2020, the revenue from functional knitted fabric sales was HKD 3,160,000, a decrease of 84.2% compared to HKD 19,985,000 for the same period in 2019[32] - The revenue from apparel sales was HKD 2,011,000, down 31.8% from HKD 2,948,000 in the previous year[32] - The group's revenue decreased by approximately 57.7% from HKD 22,933,000 for the three months ended March 31, 2019, to HKD 9,705,000 for the three months ended March 31, 2020, primarily due to a significant drop in sales of functional knitted fabrics caused by the COVID-19 pandemic[61] Expenses and Costs - The gross profit margin decreased due to ongoing research and development costs and other indirect costs, alongside the decline in revenue[14] - Selling and distribution expenses were HKD 1,099,000, slightly down from HKD 1,360,000 in the previous year[16] - Administrative and other expenses increased to HKD 5,866,000 from HKD 4,393,000 in the same period last year[16] - Selling and distribution expenses decreased by approximately 19.2% from HKD 1,360,000 to HKD 1,099,000, mainly due to reduced marketing, travel, and business entertainment expenses[64] - Administrative and other expenses increased by approximately 33.5% from HKD 4,393,000 to HKD 5,866,000, primarily due to discretionary bonuses approved and paid to all employees in the first quarter of 2020[65] - Employee costs, excluding directors' remuneration, increased to HKD 4,349,000 from HKD 2,802,000 year-on-year, representing a rise of approximately 55%[42] - The cost of inventory recognized as an expense decreased significantly to HKD 5,707,000 from HKD 14,663,000, a reduction of about 61%[42] Dividends and Reserves - The board of directors does not recommend the payment of a dividend for the three months ended March 31, 2020[14] - The company did not declare or propose any dividends for the three months ended March 31, 2020, consistent with the previous year[47] - The company did not transfer any profits to the statutory reserve as the reserve balance had reached 50% of the registered capital and some entities were in cumulative loss[22] Impact of COVID-19 - The decline in revenue was primarily due to the outbreak of COVID-19 and various preventive measures implemented by the Chinese government, which led to the suspension of operations[14] - The COVID-19 pandemic significantly impacted the company's operations, leading to a decline in customer procurement orders during the reporting period[57] Corporate Governance - The company has complied with all applicable corporate governance codes during the review period[90] - The audit committee was established on April 23, 2018, and reviewed the unaudited financial data for the three months ending March 31, 2020[86] - The company confirmed that all directors adhered to the established code of conduct for securities trading during the reporting period[87] Other Information - The company has a single operating segment focused on the sale of functional knitted fabrics and apparel, primarily in China[34] - Major customers contributing over 10% of total revenue included Customer A with HKD 1,712,000 and Customer B1 with HKD 1,461,000[35] - The company has not made any provisions for Hong Kong profits tax due to the absence of taxable profits for the three months ended March 31, 2020[39] - The effective tax rate for subsidiaries in China was 25%, with one subsidiary qualifying for a reduced rate of 15% as a high-tech enterprise[39] - The company plans to enhance its market position in China by improving product variety and strengthening marketing efforts[58] - The group had no significant investments or capital asset plans beyond those disclosed in the prospectus dated April 30, 2018[70] - There were no significant acquisitions or disposals of subsidiaries or associates during the three months ended March 31, 2020[71] - The group had no significant capital commitments or contingent liabilities as of March 31, 2020[73] - The number of employees decreased from 83 as of March 31, 2019, to 74 as of March 31, 2020, with total employee costs amounting to approximately HKD 5,606,000 for the three months ended March 31, 2020[74] - Cosmic Bliss holds 75.00% equity in the company with 360,000,000 shares[82] - No directors or major shareholders have interests in any competing businesses as of March 31, 2020[85] - There were no repurchases of listed securities by the company or its subsidiaries during the three months ending March 31, 2020[89] - The compliance advisor, First Shanghai, has no interests in the group that require disclosure as of March 31, 2020[91]
智云国际控股(08521) - 2020 Q1 - 季度财报