Financial Performance - Revenue for the nine months ended September 30, 2023, was HKD 945,600,000, a decrease of 29.6% compared to HKD 1,342,288,000 in 2022[4] - Profit attributable to owners for the same period was HKD 11,138,000, representing an increase of 168.4% from a loss of HKD 16,280,000 in 2022[4] - Basic earnings per share for the nine months was HKD 1.62, up 165.1% from a loss of HKD 2.49 per share in the previous year[4] - Gross profit for the nine months was HKD 42,064,000, compared to HKD 15,957,000 in 2022, indicating a significant improvement[6] - The company reported a pre-tax profit of HKD 11,143,000 for the nine months, a turnaround from a pre-tax loss of HKD 16,156,000 in the previous year[6] - Total comprehensive income for the nine months was HKD 13,629,000, compared to a loss of HKD 21,836,000 in 2022[7] Operational Highlights - The sales in the Chinese market for the three months ended September 30, 2023, were HKD 180.1 million, down from HKD 231.0 million in the same period of 2022[14] - The sales in Hong Kong for the three months ended September 30, 2023, increased to HKD 107.4 million from HKD 73.1 million in 2022, representing a growth of 46.8%[14] - Operating costs, including distribution and administrative expenses, decreased by 5.7% to HKD 26.2 million for the nine months ended September 30, 2023, compared to HKD 27.8 million in 2022[29] Shareholder and Capital Management - The company issued new shares through a rights issue, raising HKD 37,957,000 during the period[7] - The estimated net proceeds from the rights issue completed on August 31, 2023, is approximately HKD 36,800,000, with HKD 27,300,000 utilized as of September 30, 2023[44] - The company plans to use HKD 25.8 million from the rights issue proceeds to repay bank loans and HKD 7.3 million for R&D of new applications for microcontroller units and electronic paper[44] - As of September 30, 2023, Dr. Yan holds 535,091,722 shares, representing 55.22% of the company's issued shares[32] - Major shareholder Shijie holds 448,846,000 shares, accounting for 46.32% of the company's issued shares[38] Governance and Management Changes - Dr. Yan Yulin has resigned as chairman but will continue as an executive director effective September 4, 2023[50] - Mr. Yan Zijie has been appointed as the chairman and non-executive director of the company[51] - Mr. Zhang Weihua has resigned as executive director and CEO of the company[52] - Mr. Chen Jiahao has been appointed as the CEO of the company[53] - The board consists of three executive directors, two non-executive directors, and three independent non-executive directors as of November 9, 2023[56] Compliance and Internal Controls - The company has complied with the GEM Listing Rules on corporate governance, with minor deviations noted[46] - The audit committee has reviewed the accounting principles, internal controls, risk management, and the unaudited consolidated financial statements for the nine months ending September 30, 2023[48] - The company has adopted the GEM Listing Rules as its own code of conduct for securities trading by directors, confirming compliance by all directors for the nine months ending September 30, 2023[49] Future Plans - The company plans to diversify its product offerings in the domestic market and focus on the growing demand for electronic products in ASEAN countries[26] - The company will target applications related to microcontrollers for new energy vehicles and electronic paper products, aligning with national policies on green energy and semiconductor industries[26] Other Financial Information - Administrative expenses decreased to HKD 15,461,000 from HKD 16,441,000 in the previous year, reflecting cost control measures[6] - Financing costs increased to HKD 6,367,000 from HKD 4,152,000, indicating higher borrowing costs[6] - The company has not granted any stock options under its stock option plan during the reporting period[36] - The company has a maximum of 60,000,000 shares available for issuance under the stock option plan, equivalent to about 6.2% of the issued shares[36] - The company has not purchased, sold, or redeemed any of its listed securities during the review period[45] - The company has allocated HKD 4.0 million for upgrading its ERP system, expected to be fully utilized by the end of 2024[42] - No interim dividend was proposed for the nine months ended September 30, 2023, consistent with the previous year[18] - The report will be published on the Hong Kong Stock Exchange website and the company's website for at least seven days from the publication date[56]
扬宇科技(08113) - 2023 Q3 - 季度财报