Financial Performance - For the nine months ended September 30, 2020, the group recorded revenue of approximately HKD 88,868,000, a decrease of about 32.2% compared to HKD 131,010,000 for the same period in 2019[15]. - Gross profit for the nine months ended September 30, 2020, was approximately HKD 26,285,000, down 47.0% from HKD 49,567,000 in the previous year[15]. - The group reported a net profit of HKD 7,517,000 for the nine months ended September 30, 2020, compared to HKD 30,209,000 for the same period in 2019[15]. - The group achieved a net profit of approximately HKD 6,290,000 for the three months ended September 30, 2020, an improvement from a net loss of HKD 4,376,000 for the three months ended March 31, 2020[16]. - The total comprehensive income for the nine months ended September 30, 2020, was HKD 10,815,000, compared to HKD 25,320,000 for the same period in 2019[18]. - The company's profit attributable to owners for the three months ended September 30, 2020, was HKD 6,290,000, a decrease of 60% compared to HKD 15,682,000 for the same period in 2019[20]. - The total comprehensive income attributable to owners for the nine months ended September 30, 2020, was HKD 10,815,000, compared to HKD 25,320,000 for the same period in 2019, reflecting a decline of 57%[20]. - The profit attributable to owners for the nine months ended September 30, 2020, was HKD 7,517,000, a decrease of 75% from HKD 30,209,000 for the same period in 2019[20]. - The company reported a net profit of HKD 6,290,000 for the three months ended September 30, 2020, compared to HKD 15,682,000 in the same period of 2019, reflecting a decrease of 60%[49]. Revenue and Sales - Revenue from functional knitted fabrics sales reached HKD 43,677,000 for the three months ended September 30, 2020, an increase of 10% compared to HKD 39,736,000 in the same period of 2019[35]. - Total revenue for the nine months ended September 30, 2020, was HKD 88,868,000, down 32% from HKD 131,010,000 in the same period of 2019[35]. - Customer A contributed HKD 11,369,000 to total revenue for the three months ended September 30, 2020, a decrease of 19% from HKD 13,996,000 in the same period of 2019[39]. - Customer B contributed HKD 21,842,000 for the nine months ended September 30, 2020, with no contribution in the same period of 2019[39]. Expenses and Costs - Sales and distribution expenses decreased by approximately HKD 1,207,000 or 32.0% to approximately HKD 2,564,000 for the nine months ended September 30, 2020, due to reduced marketing activities amid COVID-19[65]. - Administrative and other expenses increased by approximately HKD 1,933,000 or 14.4% to approximately HKD 15,387,000 for the nine months ended September 30, 2020, primarily due to bank loan application fees and training expenses[66]. - Financing costs related to bank borrowings and lease liabilities amounted to HKD 220,000 for the three months ended September 30, 2020, compared to HKD 31,000 in the same period of 2019[40]. - The total employee costs for the nine months ended September 30, 2020, were approximately HKD 12,981,000, compared to HKD 13,760,000 for the same period in 2019[75]. Dividends and Reserves - The board does not recommend the payment of dividends for the nine months ended September 30, 2020[16]. - The company did not declare any dividends for the nine months ended September 30, 2020, consistent with the same period in 2019[50]. - The company did not transfer any amount to statutory reserves as the reserve balance had reached 50% of the registered capital, and some entities were in accumulated loss[24]. - The company has not established any arrangements that would allow directors to profit from purchasing shares or debt securities of the company or any other entity[80]. Research and Development - The company plans to continue investing more resources in the research and development of functional knitted fabrics and dyeing methods despite the challenges posed by COVID-19[59]. - R&D expenses for the three months ended September 30, 2020, were HKD 3,510,000, significantly higher than HKD 746,000 in the same period of 2019[46]. Market Conditions and Future Outlook - The group continues to seek new customers and procurement orders to recover from the impacts of COVID-19[16]. - The company experienced a significant decline in sales orders due to the impact of COVID-19, which led to operational suspensions and an overall economic downturn[58]. Corporate Governance and Compliance - The audit committee reviewed the unaudited consolidated financial information for the nine months ended September 30, 2020, and found it compliant with applicable accounting standards and regulations[86]. - The company has adhered to all applicable corporate governance code provisions during the reporting period[90]. - The compliance advisor, First Shanghai Financial Ltd., confirmed no interests held by them or their affiliates in the company as of September 30, 2020[91]. Employee Information - As of September 30, 2020, the group had 77 employees, a decrease from 80 employees as of September 30, 2019[75]. Shareholding and Directors - Mr. Huang holds a 75.00% equity interest in the company through Cosmic Bliss Investments Limited, which owns 360,000,000 shares[77]. - The executive directors of the company include Mr. Huang Jixiong and Mr. Xi Bin, with non-executive and independent directors also listed[92]. Other Financial Information - The company recognized a foreign exchange difference of HKD (4,889,000) related to the translation of overseas business performance into the reporting currency[22]. - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2020, which did not have a significant impact on the financial performance[31]. - The company has chosen to early adopt a practical expedient related to COVID-19 rent concessions, recognizing the rent reductions as variable lease payments in the profit and loss statement[32]. - As of September 30, 2020, the group had no significant acquisitions or disposals of subsidiaries or associates during the nine months[72]. - The group did not hold any significant investments as of September 30, 2020[73]. - As of September 30, 2020, the group had no significant capital commitments or contingent liabilities[74].
智云国际控股(08521) - 2020 Q3 - 季度财报