Financial Performance - For the three months ended September 30, 2023, the company reported revenue of HKD 35,769,000, a decrease of 22.9% compared to HKD 46,431,000 in the same period of 2022[7]. - The gross profit for the same period was HKD 8,987,000, down 47.9% from HKD 17,243,000 year-on-year[7]. - Operating loss for the three months was HKD 2,357,000, compared to an operating profit of HKD 6,423,000 in the previous year[7]. - The company recorded a net loss of HKD 4,947,000 for the three months, compared to a profit of HKD 4,537,000 in the same period of 2022[7]. - For the nine months ended September 30, 2023, total revenue was HKD 121,933,000, a decline of 21.1% from HKD 154,665,000 in the same period of 2022[7]. - The net loss for the nine months was HKD 17,615,000, compared to a loss of HKD 16,671,000 in the previous year[7]. - Revenue for the nine months ended September 30, 2023, was approximately HKD 121.9 million, a decrease of about 21.2% from approximately HKD 154.7 million for the same period in 2022[30]. - The group reported a revenue of HKD 35.7 million for the three months ended September 30, 2023, down from HKD 46.4 million for the same period in 2022, representing a decline of approximately 23.1%[22]. - The group’s basic loss per share for the nine months ended September 30, 2023, was based on a loss attributable to equity holders of HKD 17.6 million[26]. - The company recorded a loss of approximately HKD 17.6 million for the nine months ended September 30, 2023, compared to a loss of HKD 16.7 million for the same period in 2022[41]. Equity and Shareholder Information - The company’s total equity as of September 30, 2023, was HKD 39,653,000, down from HKD 101,548,000 a year earlier[8]. - The company issued new shares amounting to HKD 4,275,000 during the nine months[8]. - The chairman and CEO, Mr. Lin, holds 48,000,000 shares, representing 55.17% of the company's equity, through First Tech Inc., which he fully owns[61]. - The major shareholder, First Tech, holds 55.17% of the company's equity, while another entity, Yili Credit Limited, holds 8.28% as a secured creditor[63][64]. - The company has a pledged share arrangement where 48,000,000 shares, equivalent to 8.28% of the issued share capital, are secured as collateral for a loan[61][63]. - The company completed a share consolidation, merging every ten existing shares into one, resulting in 86,998,000 consolidated shares[46]. - The company has no outstanding share options as of September 30, 2023, indicating no potential dilution from options[57]. Operational Challenges and Strategies - The company continues to face challenges in the market, impacting its financial performance and future outlook[7]. - The management is focused on cost control and exploring new market opportunities to improve financial results moving forward[7]. - The group plans to implement various measures to improve its financial position, including cost control and monitoring operational expenses[19]. - The group will actively negotiate with banks to renew or extend existing credit facilities and may sell certain properties to enhance liquidity[19]. - The group’s operational challenges are attributed to a decrease in sales orders influenced by overall global economic uncertainty[30]. - The company plans to improve equipment and increase automation to enhance market share and profitability[31]. Expenses and Financial Costs - Cost of sales decreased by approximately 18.1% from about HKD 113.6 million to about HKD 93.1 million during the same period[34]. - Gross profit for the nine months ended September 30, 2023, was approximately HKD 28.8 million, down from HKD 41.0 million, with gross margin decreasing from 26.5% to 23.6%[35]. - Other income decreased by approximately 25.2% from about HKD 17.3 million to about HKD 12.9 million, primarily due to reduced foreign exchange gains[36]. - Administrative expenses decreased from approximately HKD 44.1 million to HKD 40.7 million, mainly due to reduced employee salaries and depreciation[37]. - Financial costs increased from about HKD 4.8 million to HKD 7.4 million, primarily due to increased loan interest[39]. Governance and Compliance - The board of directors does not recommend the payment of a dividend for the nine months ended September 30, 2023, consistent with the previous year[28]. - The board believes that the deviation from the corporate governance code regarding the separation of roles of chairman and CEO is appropriate for effective management[54]. - The board consists of experienced individuals, including three independent non-executive directors, ensuring a balance of power and authority[53]. - The audit committee was established on November 15, 2017, and has reviewed the unaudited consolidated financial performance for the three and nine months ended September 30, 2023[66]. - The audit committee believes that the financial performance complies with applicable accounting standards and GEM listing rules, ensuring adequate disclosure[66]. - The company has confirmed compliance with the GEM Listing Rules regarding securities trading by directors for the nine months ended September 30, 2023[55]. - The company has not disclosed any interests or positions held by directors in competing businesses[65].
万里印刷(08385) - 2023 Q3 - 季度财报