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积木集团(08187) - 2023 Q3 - 季度财报
JIMU GROUPJIMU GROUP(HK:08187)2023-11-14 10:27

Revenue and Income - Revenue from goods and services for the three months ended September 30, 2023, was HKD 5,319,000, a decrease of 37.5% compared to HKD 8,524,000 in the same period of 2022[4] - Total comprehensive income for the nine months ended September 30, 2023, was HKD 3,187,000, compared to a total comprehensive loss of HKD 3,617,000 in the same period of 2022[4] - As of September 30, 2023, the company reported revenue of HKD 18,820,000 for the nine months, a decrease of 21.5% compared to HKD 23,987,000 for the same period in 2022[22] - Revenue from Hong Kong for the nine months was HKD 10,892,000, down 50.9% from HKD 22,159,000 in the previous year[22] - Revenue from Canada increased significantly to HKD 7,928,000 for the nine months, compared to HKD 1,828,000 in the same period last year, marking a growth of 334.5%[22] - For the nine months ended September 30, 2023, the company recorded revenue of approximately HKD 18,800,000, a decrease of about 21.7% compared to HKD 24,000,000 for the same period in 2022[55] - Revenue from the footwear business for the nine months ended September 30, 2023, was approximately HKD 18,800,000, down from approximately HKD 24,000,000 in 2022, primarily due to a slowdown in sports apparel trade post-World Cup and sluggish trade activities in Hong Kong[56] Costs and Expenses - The cost of goods sold for the three months ended September 30, 2023, was HKD 3,151,000, down from HKD 7,907,000 in the previous year, reflecting a 60.1% reduction[4] - Employee benefit expenses for the nine months ended September 30, 2023, increased to HKD 4,361,000 from HKD 1,078,000 in the same period of 2022, indicating a significant rise in costs[4] - Total employee costs for the nine months ended September 30, 2023, amounted to HKD 4,361,000, a significant increase from HKD 1,078,000 in the same period of 2022, reflecting a 304.5% rise[39] - Other operating expenses rose to approximately HKD 4,100,000 from HKD 2,300,000, mainly due to retail operations in Hong Kong[61] - Financing costs increased by 129.2% to approximately HKD 1,100,000 from HKD 480,000, attributed to interest expenses on a loan of approximately HKD 16,500,000[62] Profit and Loss - The group reported a loss before tax of HKD 704,000 for the three months ended September 30, 2023, compared to a loss of HKD 1,429,000 in the same period of 2022, representing a 50.7% improvement[4] - The basic and diluted loss per share for the three months ended September 30, 2023, was HKD 1.18, an improvement from HKD 4.75 in the same period of 2022[4] - The company recorded a loss of HKD 896,000 from discontinued operations for the nine months ended September 30, 2022, which improved to a profit of HKD 7,052,000 for the same period in 2023, indicating a turnaround[33] - The group reported a profit of approximately HKD 7,100,000 from discontinued operations, compared to a loss of approximately HKD 896,000 in the previous year, primarily from the sale of subsidiaries[63] - The company reported a total loss of HKD 3,705,000 from continuing operations for the nine months ended September 30, 2023, compared to a loss of HKD 2,917,000 for the same period in 2022, indicating a worsening performance[39] Share Capital and Financing - The company raised approximately HKD 14,446,080 from the issuance of 72,230,400 rights shares at HKD 0.20 per share[8] - The company completed a placement of 100,320,000 shares at HKD 0.107 per share, raising approximately HKD 10,264,000 after costs[10] - The company completed a rights issue on August 31, 2023, issuing 72,230,400 shares at a subscription price of HKD 0.2 per share, resulting in net proceeds of approximately HKD 13,300,000[94] - As of September 30, 2023, the net proceeds from the rights issue amounted to HKD 13,300,000, with HKD 11,000,000 utilized for loan repayment and HKD 2,300,000 for business operations[95] - The remaining unutilized net proceeds as of September 30, 2023, is HKD 2,128,000, expected to be used by December 2023[95] Corporate Actions and Governance - The company completed a share consolidation on March 21, 2023, converting 722,304,000 existing shares into 36,115,200 consolidated shares[7] - The company has confirmed compliance with the corporate governance code as of September 30, 2023, ensuring the protection of shareholder rights and enhancement of corporate value[78] - The board of directors has confirmed adherence to the securities trading code during the review period[80] - The audit committee has reviewed the unaudited consolidated financial results for the nine months ended September 30, 2023, confirming compliance with applicable accounting standards and GEM listing rules[98] Business Operations and Strategy - The company operates primarily in Hong Kong and Canada, focusing on footwear and apparel trading[19] - The company aims to focus on its core business operations following the divestiture of the underperforming loan brokerage and credit assessment services[32] - The company has expanded its footwear business by establishing a new company and opening three physical stores in Hong Kong by the end of 2022[51] - The company plans to maintain and strengthen its position in the industry while exploring suitable business opportunities and seeking collaborations with more local and overseas enterprises[51] - The company has terminated its loan brokerage and credit assessment services during the reporting period[18] - The company decided to sell its long-term loss-making business in China for a nominal price of HKD 1 on April 20, 2023, due to significant accumulated losses and net liabilities[54] Stock Options and Employee Benefits - The company granted 14,400,000 stock options at an exercise price of HKD 0.42, with 720,000 options remaining unexercised as of the report date[10] - As of September 30, 2023, there were 720,000 unexercised stock options under the stock option plan, with an exercise price of HKD 0.42 per share[45] - The fair value of the stock options granted on January 6, 2023, was estimated at HKD 204,000, with an exercise price of HKD 0.021 per share[48] - The stock options plan is effective for a period of ten years starting from May 11, 2016, with no additional options to be granted after this period[12] - Employee benefits expenses increased by 300% to approximately HKD 4,400,000 from HKD 1,100,000, primarily due to increased hiring in the retail business[60] Debt and Financial Position - Total borrowings as of September 30, 2023, were approximately HKD 7,300,000, down from approximately HKD 14,500,000 as of December 31, 2022[66] - The group's debt-to-asset ratio improved to 20.7% from 49.0% as of December 31, 2022[66] - The company incurred short-term lease expenses of HKD 680,000 for the nine months ended September 30, 2023, compared to HKD 84,000 in the same period of 2022, marking a significant increase[39] Other Information - The company has closed loan brokerage business branches and laid off staff since 2020 to reduce costs due to changes in the loan market[52] - The company will conservatively assess market conditions and adjust strategies as necessary in light of financial constraints, inflation, and high interest rates[51] - The company has not recognized any tax provisions due to no taxable profits for the periods ended September 30, 2023, and 2022[26] - The company has not engaged in any competitive business activities that may conflict with its interests as of September 30, 2023[81] - No share buybacks or sales were conducted by the company or its subsidiaries during the nine months ending September 30, 2023[89] - No significant post-period events have occurred as of the report date, maintaining operational stability[100] - The unaudited quarterly results announcement for the nine months ended September 30, 2023, has been published on the Hong Kong Stock Exchange and the company's website[101]