Financial Performance - For the nine months ended September 30, 2023, the group's revenue increased by approximately HKD 18.7 million or 7.2% to about HKD 279.6 million, compared to approximately HKD 260.9 million for the same period in 2022[14] - Profit for the nine months ended September 30, 2023, was approximately HKD 15.3 million, compared to HKD 9.0 million for the same period in 2022, reflecting a significant increase[18] - Revenue for the nine months ended September 30, 2023, was HKD 279.6 million, up from HKD 260.9 million in the same period of 2022, representing a growth of approximately 7.5%[25] - Gross profit for the nine months ended September 30, 2023, was HKD 40.9 million, compared to HKD 35.3 million for the same period in 2022, indicating an increase of about 15.0%[25] - The company reported a net profit of HKD 13,946,000 for the nine months ended September 30, 2023, compared to a net profit of HKD 6,611,000 for the same period in 2022, representing a 110.5% increase[33] - For the nine months ended September 30, 2023, the company reported a profit attributable to shareholders of HKD 15,255,000, compared to HKD 9,044,000 for the same period in 2022, representing an increase of 68.5%[48] Cost and Expenses - The sales cost for the nine months ended September 30, 2023, rose by approximately HKD 13.1 million or 5.8% to about HKD 238.7 million, consistent with the revenue growth[14] - Administrative expenses increased by approximately HKD 4.9 million or 27.3% to about HKD 22.9 million for the nine months ended September 30, 2023, primarily due to an increase in R&D expenses of about HKD 3.8 million[17] - Financing costs increased by approximately HKD 0.1 million or 7.2% to about HKD 2.1 million for the nine months ended September 30, 2023, mainly due to rising interest rates[17] - The total employee costs, including directors' remuneration, for the nine months ended September 30, 2023, were HKD 35,277,000, slightly up from HKD 34,956,000 in 2022, reflecting an increase of 0.9%[7] - The company's financing costs for the nine months ended September 30, 2023, totaled HKD 2,151,000, compared to HKD 2,007,000 in 2022, marking an increase of 7.2%[6] - The cost of goods sold for the nine months ended September 30, 2023, was HKD 238,657,000, compared to HKD 225,611,000 in 2022, representing an increase of 5.8%[7] Income and Gains - Other income surged by approximately HKD 1.3 million or 136.8% to about HKD 2.2 million, primarily due to tax incentives from the government related to sustainable product development[15] - Other gains increased by approximately HKD 1.7 million or 70.1% to about HKD 4.1 million, mainly due to investment income from copper options contracts[15] - The company recognized other income of HKD 2,248,000 for the nine months ended September 30, 2023, compared to HKD 950,000 in the same period of 2022, indicating a significant increase[39] Sales and Market Performance - Transformers accounted for approximately 45.6% of total sales for the nine months ended September 30, 2023, down from 55.5% in the same period of 2022[10] - Electronic components represented approximately 52.6% of total sales for the nine months ended September 30, 2023, up from 43.1% in the same period of 2022[10] - The increase in revenue was primarily driven by existing customers increasing orders for electronic health products and electronic components to meet the rising demand for clean energy equipment[10] - Sales of transformers for the nine months ended September 30, 2023, were HKD 127,455,000, a decrease of 11.9% from HKD 144,728,000 in the previous year[33] - Sales of electronic components increased significantly to HKD 146,918,000 for the nine months ended September 30, 2023, up 30.5% from HKD 112,548,000 in 2022[33] - The geographical breakdown of revenue shows that sales in Europe reached HKD 159,307,000 for the nine months ended September 30, 2023, a substantial increase from HKD 94,636,000 in 2022[36] Strategic Initiatives - The company has adopted new hedging policies regarding copper options contracts to better control material costs amid rising shipping costs and demand uncertainties[19] - The company plans to revise its treasury policy to allow for more investments in short-term, low-risk Hong Kong-listed securities, which will not affect operational liquidity[22] - The company remains confident in seizing post-pandemic opportunities for long-term sustainable growth despite various business challenges[23] - The company has changed its principal place of business in Hong Kong effective September 26, 2023, to enhance operational efficiency[29] - The company continues to focus on the design, development, production, and sales of transformers, switch power supplies, electronic healthcare products, and other electronic components[30] Compliance and Governance - The audit committee reviewed the unaudited consolidated financial performance for the nine months ending September 30, 2023, with no objections to the accounting treatments adopted[68] - The risk management committee oversees the risk governance structure and hedging policies, including copper futures activities[70] - The company adhered to the corporate governance code principles and provisions during the reporting period[71] - No additional disclosure obligations under GEM Listing Rules were identified beyond what has been disclosed[72] Future Outlook - The company anticipates a continued slowdown in demand in the upcoming quarters, with expected reductions in order quantities[22] - The company has not yet determined the impact of new accounting standards on its financial performance and position, indicating ongoing assessments[30] Taxation - Income tax expenses decreased by HKD 1.7 million or 53.5% to about HKD 1.5 million for the nine months ended September 30, 2023, primarily due to a reduction in taxable profits[18] - The company incurred a tax expense of HKD 1,471,000 for the nine months ended September 30, 2023, down from HKD 3,165,000 in 2022, indicating a decrease of 53.5%[44] Dividends and Shareholder Information - The company did not declare any dividends for the nine months ended September 30, 2023, consistent with the same period in 2022[46] - The average number of ordinary shares used for calculating basic and diluted earnings per share for the nine months ended September 30, 2023, was 200,000,000 shares[48] - No share buybacks or sales occurred from January 1, 2023, to September 30, 2023[60] - No significant capital commitments were reported for the nine months ending September 30, 2023[62] - No significant contingent liabilities were reported for the nine months ending September 30, 2023[63] - No major events occurred after the reporting period up to the report date[64]
侨洋国际控股(08070) - 2023 Q3 - 季度财报