Financial Performance - For the nine months ended September 30, 2023, the unaudited revenue was approximately HKD 64,590,000, an increase of 44.4% compared to approximately HKD 44,716,000 for the same period in 2022[4]. - The group recorded an unaudited profit attributable to owners of approximately HKD 6,636,000 for the nine months ended September 30, 2023, compared to an unaudited loss of approximately HKD 7,308,000 for the same period in 2022[4]. - The unaudited gross profit for the nine months ended September 30, 2023, was HKD 22,675,985, representing a significant increase from HKD 10,321,040 in the same period of 2022[6]. - The basic and diluted earnings per share for the nine months ended September 30, 2023, were HKD 1.263, compared to a loss per share of HKD 1.391 for the same period in 2022[7]. - The total comprehensive income for the nine months ended September 30, 2023, was HKD 6,306,383, compared to a total comprehensive loss of HKD 7,363,773 for the same period in 2022[6]. - The company did not recommend any interim dividend for the nine months ended September 30, 2023, consistent with the previous year[4]. Costs and Expenses - The total sales cost for the nine months ended September 30, 2023, was HKD 41,914,198, compared to HKD 34,394,587 for the same period in 2022[6]. - The group reported a net finance cost of HKD 139,573 for the nine months ended September 30, 2023, down from HKD 226,303 in the same period of 2022[6]. - Sales cost for SIM card production increased to approximately HKD 41,900,000, up by HKD 7,500,000 or 21.8% compared to the same period last year[25]. - Sales and distribution costs increased to approximately HKD 2,080,000, up by HKD 210,000 or 11.2% compared to approximately HKD 1,870,000 last year[29]. - Administrative expenses slightly decreased to approximately HKD 16,040,000, down by HKD 130,000 or 0.8% from approximately HKD 16,170,000 last year[30]. Revenue Sources - For the nine months ended September 30, 2023, the revenue from the sale of smart cards was approximately HKD 64,584,053, an increase of about HKD 19,879,276 or 44.5% compared to HKD 44,704,777 for the same period in 2022[14]. - The revenue from the sale of smart card application systems for the nine months ended September 30, 2023, was HKD 6,130, a decrease from HKD 10,850 in the same period of 2022[14]. - Total other income for the nine months ended September 30, 2023, was HKD 831,798, compared to HKD 442,554 for the same period in 2022, representing an increase of approximately 88%[15]. - Other income amounted to HKD 831,798, including government subsidies of HKD 639,080[26]. Foreign Exchange and Financial Reporting - The company experienced a foreign exchange loss of HKD 328,250 for the nine months ended September 30, 2023, compared to a loss of HKD 55,981 in the same period of 2022[9]. - The net foreign exchange loss for the nine months ended September 30, 2023, was HKD (240,421), compared to a loss of HKD (40,074) in the same period of 2022[16]. - The company expects that the adoption of new and revised Hong Kong Financial Reporting Standards will not have a significant impact on its unaudited consolidated financial information[11]. - The company did not recognize any income tax provision for the nine months ended September 30, 2023, due to sufficient tax losses available to offset taxable profits in Hong Kong and China[18][19]. Corporate Governance - The company has adhered to the corporate governance code, except for the separation of the roles of chairman and CEO, which remains combined due to the group's small scale[46][48]. - The company has maintained effective internal controls to enhance corporate governance and shareholder transparency[46]. - The company has taken proactive measures to strengthen corporate governance practices and accountability to shareholders[46]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited results for the three and nine months ending September 30, 2023, confirming compliance with applicable accounting standards[45]. Stock Options and Capital Structure - As of September 30, 2023, the total unexercised stock options amounted to 37,179,250 shares, with 14,400,000 shares remaining for executive directors[44]. - The remaining term for stock options as of September 30, 2023, is approximately 4.26 years[47]. - The total stock options granted under the plan since 2018 is 22,779,250 shares, all of which are exercisable at HKD 0.20[44]. - The group's debt-to-capital ratio was 10.4% as of September 30, 2023, compared to 9.9% at the end of 2022[37]. - As of September 30, 2023, the group had cash and bank balances of approximately HKD 11,600,000, an increase from approximately HKD 6,200,000 at the end of 2022[36]. - Current assets were approximately HKD 36,200,000, compared to HKD 23,900,000 at the end of 2022, with current liabilities of approximately HKD 32,600,000[36]. Other Information - The company did not recommend any interim dividend for the nine months ended September 30, 2023, consistent with the previous year[4]. - No securities were purchased, sold, or redeemed by the company or its subsidiaries during the nine months ending September 30, 2023[51]. - There are no interests held by directors or management shareholders in any competing businesses as of September 30, 2023[50].
品创控股(08066) - 2023 Q3 - 季度财报