Financial Performance - The company's revenue for the nine months ended December 31, 2021, was approximately HKD 88.1 million, a significant decrease of about 60.6% compared to approximately HKD 223.7 million for the same period in 2020[19] - The loss attributable to owners for the nine months ended December 31, 2021, was approximately HKD 34 million, compared to a loss of approximately HKD 19.4 million for the same period in 2020[19] - The basic and diluted loss per share for the nine months ended December 31, 2021, was approximately HKD 5.68 cents, compared to HKD 3.24 cents for the same period in 2020[19] - The gross profit for the nine months ended December 31, 2021, was HKD 720,000, compared to HKD 9,678,000 for the same period in 2020, indicating a significant decline[65] - The company incurred a loss before tax of HKD 33,981,000 for the nine months ended December 31, 2021, compared to a loss of HKD 19,215,000 for the same period in 2020, representing a 76.7% increase in losses[65] - The total comprehensive loss for the nine months ended December 31, 2021, was HKD 33,547,000, compared to HKD 15,657,000 for the same period in 2020, reflecting a worsening financial position[67] - The company reported other income of HKD 777,000 for the nine months ended December 31, 2021, down from HKD 6,836,000 for the same period in 2020, a decrease of 88.6%[65] - The group reported a net loss of HKD 9,124,000 for the three months ended December 31, 2021, compared to a loss of HKD 4,399,000 for the same period in 2020[87] Revenue Breakdown - Revenue from two-way radios decreased by approximately 61.9% to HKD 65.8 million for the nine months ended December 31, 2021, from HKD 172.7 million for the same period in 2020[22] - Revenue from baby monitors decreased by approximately 79.6% to HKD 600,000 for the nine months ended December 31, 2021, from HKD 2.9 million for the same period in 2020[23] - The company did not generate any service business revenue for the nine months ended December 31, 2021, compared to approximately HKD 7.7 million for the same period in 2020[23] - Revenue from other products decreased by approximately 46.4% to HKD 21.7 million for the nine months ended December 31, 2021, from HKD 40.5 million for the same period in 2020[25] - Total revenue from external customers for the nine months ended December 31, 2021, was HKD 88,056,000, a decrease of 60.7% compared to HKD 223,736,000 for the same period in 2020[85] Expenses and Costs - Sales cost decreased from HKD 214.1 million for the nine months ended December 31, 2020, to approximately HKD 87.3 million for the nine months ended December 31, 2021, a reduction of about 59.2%[32] - Gross profit margin fell from approximately 4.3% for the nine months ended December 31, 2020, to about 0.8% for the nine months ended December 31, 2021[32] - Administrative expenses increased from approximately HKD 28.2 million to about HKD 33.5 million, primarily due to increased R&D expenses[35] - The sales and distribution expenses for the nine months ended December 31, 2021, were HKD 1,063,000, down from HKD 3,200,000 for the same period in 2020, a decrease of 66.8%[65] - The cost of inventory recognized as an expense for the nine months ended December 31, 2021, was HKD 60,435,000, compared to HKD 179,711,000 for the same period in 2020[97] Strategic Plans - The company aims to enhance its product portfolio, strengthen its information management systems, and improve marketing efforts to achieve growth in existing businesses[29] - The company plans to diversify its revenue sources and seek new product opportunities while leveraging its established sales channels and networks[29] - The company plans to continue developing new product lines and exploring new customers and sales channels[31] Corporate Governance and Shareholder Information - The board of directors does not recommend the payment of any dividends for the nine months ended December 31, 2021[19] - The company did not issue any debt securities during the nine months ended December 31, 2021[50] - The company has fully complied with the corporate governance code during the nine months ended December 31, 2021[56] - No share options were granted, exercised, or lapsed under the share option scheme during the nine months ended December 31, 2021[62] - The total number of shares that may be issued upon exercise of all options granted under the scheme is 26,880,000 shares, representing approximately 4.5% of the issued share capital as of December 31, 2021[62] Market Conditions and Risks - The impact of COVID-19 and the US-China trade war has created additional uncertainties affecting the company's operations and financial condition[31] - The company will actively monitor the developments related to COVID-19 and the trade war and assess their impact on financial performance[31] Other Information - The company has no significant investments or capital asset plans as of the report date[39] - There were no significant contracts in which the directors had a direct or indirect interest during the nine months ended December 31, 2021[54] - No significant events occurred after December 31, 2021, up to the report date[64] - The group’s other losses for the nine months ended December 31, 2021, included a net exchange loss of HKD 587,000, compared to HKD 2,812,000 for the same period in 2020[94] - Rental expenses paid to a related company amounted to HKD 670,000 for the three months ended December 31, 2021, compared to HKD 522,000 for the same period in 2020, reflecting a 28.4% increase[107]
善裕集团控股(08245) - 2022 Q3 - 季度财报