Financial Performance - For the three months ended September 30, 2022, the company reported revenue of HKD 46,431,000, a decrease of 42.5% compared to HKD 80,795,000 in the same period of 2021[10] - The gross profit for the same period was HKD 17,243,000, down 24.3% from HKD 22,817,000 year-on-year[10] - Operating profit for the three months was HKD 6,423,000, an increase of 39.0% from HKD 4,610,000 in the previous year[10] - The company recorded a net profit of HKD 4,537,000 for the three months, compared to a profit of HKD 2,243,000 in the same period of 2021, representing an increase of 102.5%[10] - For the nine months ended September 30, 2022, total revenue was HKD 154,665,000, down 29.5% from HKD 219,408,000 in the same period of 2021[10] - The company reported a net loss of HKD 16,671,000 for the nine months, compared to a loss of HKD 4,530,000 in the same period of 2021[10] - Basic and diluted earnings per share for the three months were HKD 0.57, compared to HKD 0.28 in the previous year[10] - The revenue from book and paper product sales for the three months ended September 30, 2022, was HKD 46.4 million, down from HKD 76.6 million in 2021[23] - The revenue from subcontracting services for the three months ended September 30, 2022, was HKD 26, a significant decrease from HKD 4.2 million in 2021[23] - Gross profit for the nine months ended September 30, 2022, was approximately HKD 41.0 million, down from HKD 44.2 million for the same period in 2021, while gross margin increased to 26.5% from 20.1%[39] Expenses and Losses - The company experienced a foreign exchange loss of HKD 12,066,000 for the nine months, impacting overall comprehensive income[12] - The company recorded a loss of approximately HKD 16.7 million for the nine months ended September 30, 2022, compared to a loss of approximately HKD 4.5 million for the same period in 2021, primarily due to increased distribution costs[33] - Administrative expenses rose from approximately HKD 41.2 million for the nine months ended September 30, 2021, to HKD 44.1 million for the same period in 2022, primarily due to increased employee and office expenses[41] - Financial costs remained relatively stable at approximately HKD 4.8 million for the nine months ended September 30, 2022, compared to HKD 4.7 million for the same period in 2021[43] - The group recorded a loss of approximately HKD 16.7 million for the nine months ended September 30, 2022, compared to a loss of HKD 4.5 million for the same period in 2021, mainly due to increased distribution costs and foreign exchange losses[45] Equity and Dividends - The total equity as of September 30, 2022, was HKD 101,548,000, a decrease from HKD 208,347,000 at the beginning of the year[12] - The company did not recommend the distribution of dividends for the nine months ended September 30, 2022, consistent with the same period in 2021[31] - The board did not recommend any dividend for the nine months ended September 30, 2022, consistent with the previous year[48] - As of September 30, 2022, First Tech holds 480,000,000 shares, representing 60% of the company's equity[61] - The company has pledged 72,000,000 shares, equivalent to 9% of the issued share capital, as collateral for a loan[61] Corporate Governance and Management - The company has complied with the corporate governance code principles during the nine months ended September 30, 2022, with a noted deviation regarding the separation of roles between the chairman and CEO[50][52] - As of September 30, 2022, the chairman and CEO, Mr. Lin, holds a 60% equity interest in the company through First Tech Inc., which owns 480,000,000 shares[58] - The company has adopted a share option scheme, but no options were granted or exercised during the nine months ended September 30, 2022[54][55] Future Outlook and Strategy - The company continues to focus on the production and sale of books and paper products, with ongoing assessments of market conditions for future growth strategies[16] - The company plans to improve equipment and increase automation to enhance competitiveness and market share[35] - The company faces risks including economic uncertainty due to COVID-19 and rising paper costs, but remains cautiously optimistic about the printing market's stable development[35] Taxation - The effective tax rate for the group is based on a two-tiered system, with the first HKD 2 million of profits taxed at 8.25% and profits above that taxed at 16.5%[27] - Income tax expense for the nine months ended September 30, 2022, was approximately HKD 0.3 million, down from HKD 1.2 million for the same period in 2021[44] Audit and Compliance - The audit committee reviewed the unaudited consolidated financial performance for the three and nine months ending September 30, 2022, confirming compliance with applicable accounting standards and GEM listing rules[64] - Other income increased due to higher foreign exchange gains recorded for the nine months ended September 30, 2022[40]
万里印刷(08385) - 2022 Q3 - 季度财报