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易纬集团(03893) - 2023 - 年度财报
2023-10-27 08:39
Financial Performance - Revenue for the year ended June 30, 2023, was HK$48,004,000, representing a 20.0% increase from HK$40,006,000 in 2022[15] - The company reported a gross loss of HK$11,418,000 for 2023, compared to a gross profit of HK$11,651,000 in 2022, indicating a significant decline of 198.0%[15] - Loss for the year increased to HK$53,556,000, a 144.7% rise from the loss of HK$21,888,000 in the previous year[15] - Total assets grew by 22.7% to HK$59,469,000 from HK$48,472,000 in 2022[15] - Capital deficiency worsened to HK$54,097,000, a 335.4% increase from HK$12,424,000 in 2022[15] - The current ratio decreased to 0.81 from 1.02, indicating a decline in short-term financial health[15] - The quick ratio also fell to 0.81 from 0.96, reflecting a similar trend in liquidity[15] - The gearing ratio improved to (1.31) from (2.31), suggesting a reduction in financial leverage[15] Management and Board Changes - The company has appointed new directors and undergone significant changes in its board structure, including the appointment of Mr. Wang Rong as CEO[4][6] - Mr. Wang Rong appointed as executive director and CEO on July 13, 2023, and September 20, 2023, respectively, with extensive experience in finance and private equity[17] - Mr. Zhu Shengmao appointed as executive director on July 20, 2023, with a background in business management and corporate leadership[18] - Mr. Tsang Ho Yin has been an independent non-executive director since September 28, 2021, and was re-designated as non-executive director on January 20, 2023[22] - The Board composition includes several changes, with Mr. Wang Rong appointed as CEO on September 20, 2023, and multiple resignations from executive positions throughout the year[107] Strategic Focus and Future Outlook - Future strategies may involve market expansion and new product development, although specific details were not disclosed in the financial highlights[15] - The management is optimistic about the future potential of luxury brands in the PRC market[43] - The Group is focusing on expanding its business in the PRC, establishing numerous relationships with internationally recognized luxury brands and property developers[53] - The management is exploring other business opportunities to broaden income sources and is seeking suitable partners for strategic cooperation[55] - The Group is actively looking for potential acquisition targets that may synergize with its existing business for ongoing strategic growth[56] Operational Challenges - The COVID-19 pandemic and global recession fears led to a significant drop in consumer sentiment, adversely affecting the Group's revenue[42] - The slowdown in renovation and new shop rollouts by certain customers resulted in project delays[42] - Direct costs surged by approximately 109.2%, rising from approximately HK$28.4 million in 2022 to approximately HK$59.4 million in 2023, primarily due to increased revenue and additional costs from delayed projects[64] - The Group recognized an expected loss on onerous contracts of approximately HK$7.9 million related to an interior solution project, with costs exceeding expected revenue[65] Corporate Governance - The Group aims to strengthen its competitive advantage in local markets while resuming business development in the PRC and overseas[52] - The Company has adopted the Corporate Governance Code as its own code of corporate governance, with a commitment to compliance[108] - The Company is committed to high standards of corporate governance to safeguard shareholder interests and enhance corporate value[104] - The Board has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Risk Management Committee to oversee various aspects of the Company's affairs[106] Financial Management - The Group recognized an impairment loss on property, plant, and equipment of approximately HK$8.7 million, up from approximately HK$3.3 million in 2022[45] - The increase in finance costs was attributed to higher borrowings during the year[45] - Administrative expenses remained stable at approximately HK$30.3 million in 2023, compared to approximately HK$29.8 million in 2022[67] - The income tax expense for the year was approximately HK$1,000, with no provision for Hong Kong profits tax as no assessable profits were generated in Hong Kong[74] Risk Management - The management is closely monitoring the impact of foreign exchange fluctuations on the Group's performance, particularly concerning RMB and EUR[101] - The Company is exposed to foreign currency risk primarily through sales and purchases denominated in Thai Baht, Singapore dollars, United States dollars, Renminbi, Euro, and Great Britain Pound, with no current hedging policy in place[98] - The Risk Management Committee reviewed the effectiveness of the system to prevent prohibited sales to sanctioned countries and individuals during the year[173] Employee and Workforce - Total employee benefits were approximately HK$19.5 million in 2023, up from approximately HK$19.1 million in 2022, reflecting an increase in workforce from 36 to 41 employees[89] Audit and Compliance - The Audit Committee reviewed the Group's annual financial results for the year ended June 30, 2023, and interim financial results for the six months ended December 31, 2022[141] - The annual audit service fee for the year ended June 30, 2023, was HK$670,000, while non-audit services amounted to HK$200,000[195] - The Board is responsible for the risk management and internal control systems, ensuring an annual review of their effectiveness through the Audit Committee[197]
易纬集团(03893) - 2023 - 年度业绩
2023-09-27 11:00
香港交易及結算所有限公司以及香港聯合交易所有限公司對本公告之內容概不負 責,對其準確性或完整性亦不發表任何聲明,並明確表示概不就因本公告全部或 任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 CROSSTEC Group Holdings Limited 易 緯 集 團 控 股 有 限 公 司 (於開曼群島註冊成立的有限公司) (股份代號:3893) 截至二零二三年六月三十日止年度之 年度業績公告 年度業績 易緯集團控股有限公司(「本公司」)之董事(「董事」,各自為一名「董事」)會(「董 事會」)公佈本公司及其附屬公司(統稱「本集團」)截至二零二三年六月三十日止年 度(「本年度」)之綜合財務業績,連同截至二零二二年六月三十日止年度之比較數 字如下: ...
易纬集团(03893) - 2023 - 中期财报
2023-03-30 08:34
Financial Performance - For the six months ended December 31, 2022, the Group's revenue was approximately HK$38.2 million, a 60.5% increase from approximately HK$23.8 million for the same period in 2021[16]. - The gross profit for the same period was approximately HK$5.7 million, down from approximately HK$6.4 million in the prior year, indicating a decrease in profitability[16]. - The Group's losses for the period were approximately HK$10.9 million, compared to approximately HK$8.2 million for the six months ended December 31, 2021[16]. - Revenue increased significantly by HK$14.4 million, from approximately HK$23.8 million for the six months ended December 31, 2021, to approximately HK$38.2 million for the six months ended December 31, 2022[27][30]. - Consolidated net loss increased from approximately HK$8.2 million for the six months ended December 31, 2021, to approximately HK$10.9 million for the six months ended December 31, 2022[22][28]. - Gross profit decreased from approximately HK$6.4 million for the six months ended 31 December 2021 to approximately HK$5.7 million for the six months ended 31 December 2022, reflecting a decline in gross margin from 26.8% to 15.0%[21][22]. - Loss before income tax for the period was HK$10,939,000, compared to a loss of HK$8,164,000 in the previous year, indicating a 34.1% increase in losses[123]. - Basic and diluted loss per share was HK$15.19, compared to HK$11.33 in the previous year, reflecting a 34.4% increase in loss per share[123]. Revenue Sources and Market Performance - The revenue from the PRC market increased by 153%, reaching approximately HK$22.2 million compared to approximately HK$8.8 million in the previous year[17]. - The proportion of interior solutions projects increased to approximately 75% of total revenue, up from approximately 70% in the previous year[18]. - The increase in revenue is attributed to the recovery from the COVID-19 pandemic and the rise in cross-border activities[17]. - The Group continues to focus on bespoke interior design solutions for luxury brands and non-retail projects[15]. - The company is focusing on expanding its business opportunities in the interior solutions and project consultancy sectors, particularly in academic institutions and governmental authorities[24][36]. - The demand for interior solution project consultancy is expected to increase significantly in the coming years due to the resumption of international events and exhibitions[25][37]. - The Group's geographical revenue distribution shows a strong performance in the PRC, highlighting potential for market expansion[154]. Cost Management and Profitability - The gross profit margin decreased from approximately 26.8% in the prior year to approximately 15.0% for the current period[18]. - Direct costs rose by approximately 86.2% from approximately HK$17.4 million to approximately HK$32.4 million, representing about 73.2% and 84.8% of revenue for the respective periods[43]. - Administrative expenses increased to approximately HK$16.1 million from approximately HK$14.8 million, primarily due to higher employee benefit expenses[46]. - The Group aims to improve profitability through enhanced project cost control and market share expansion[18]. - The company aims to maintain competitiveness through stricter operating cost control and active participation in project tenders across various industries[26][33]. Financial Position and Liquidity - As of December 31, 2022, cash and bank balances amounted to approximately HK$27.5 million, up from approximately HK$23.6 million as of June 30, 2022[54]. - The Group's financial position is considered relatively healthy, with sufficient resources to support operations and meet foreseeable capital expenditures[55]. - The company had a shareholder's loan of approximately HK$71.4 million and no bank borrowings, compared to HK$8.0 million in bank borrowings as of June 30, 2022[64][70]. - The Group had an unutilized bank facility of HK$15.0 million available for drawdown as of December 31, 2022[54]. - Cash and cash equivalents increased to HK$27,526,000 from HK$21,629,000, representing a 27.3% increase in cash reserves[125]. - Net current assets improved significantly to HK$23,545,000 from HK$607,000, showcasing a substantial increase in liquidity[125]. - The Group plans to enhance operations to improve cash flow and strengthen working capital, indicating a strategic focus on financial stability[141]. Corporate Governance and Compliance - The company has adopted the Corporate Governance Code to enhance corporate value and accountability, with full compliance except for a deviation from code provision C.2.1[109]. - All Directors confirmed compliance with the Model Code during the six months ended December 31, 2022, with no reported non-compliance by senior management[107]. - The company has established an Audit Committee to oversee financial reporting processes and risk management, ensuring adequate disclosures have been made[119]. - The company has fully complied with the corporate governance code provision C.2.1 since December 13, 2022, following the resignation of Mr. Lee Wai Sang and the appointment of Mr. Hu Xiongjie as Chairman[115]. Employee and Operational Insights - The total employee benefits for the period amounted to approximately HK$10.3 million, an increase from approximately HK$9.5 million for the same period in 2021, primarily due to one-off staff restructuring costs[78][85]. - The company had 36 employees as of December 31, 2022, unchanged from June 30, 2022[78][85]. - The Group's loss before income tax for the six months ended December 31, 2022, was impacted by employee benefit expenses totaling HK$10,327,000, up from HK$9,541,000 in the previous year[168]. Shareholder and Investment Activities - The company completed a placing of 14,400,000 new ordinary shares at a price of HK$0.4 per share, raising net proceeds of approximately HK$5.7 million for general working capital[62][68]. - The placing price represented a premium of approximately 2.56% to the closing price of HK$0.39 per share on the date of the placing agreement[61][67]. - The Group has not purchased, sold, or redeemed any of its listed securities during the six months ended December 31, 2022[108]. - The company did not declare any interim dividend for the six months ended December 31, 2022, consistent with the previous year[75][82]. - The company did not engage in any material acquisitions or disposals during the period[77][84].
易纬集团(03893) - 2022 - 年度财报
2022-10-27 08:33
Financial Performance - For the year ended June 30, 2022, the Group's revenue was approximately HK$40.0 million, a decrease of 53.8% compared to HK$86.6 million in 2021[12]. - The gross profit for the same period was approximately HK$11.7 million, down 37.4% from HK$18.7 million in the previous year[12]. - The Group recorded a loss of approximately HK$21.9 million for the year, an increase of 85.6% from a loss of approximately HK$11.8 million in 2021[12]. - Total assets as of June 30, 2022, were HK$48.5 million, a slight decrease of 0.2% from HK$48.6 million in 2021[12]. - The gross profit margin improved to 29.1% from 21.6% in the previous year[12]. - The Group's capital deficiency increased to HK$12.4 million from total equity of HK$7.3 million in the previous year[12]. - The Group's consolidated net loss increased due to a revenue decrease of approximately HK$46.6 million, resulting in total revenue of approximately HK$40.0 million in 2022, down from approximately HK$86.6 million in 2021, representing a decline of about 53.8%[100][111]. - Gross profit decreased by approximately 37.4% from approximately HK$18.7 million in 2021 to approximately HK$11.7 million in 2022, in line with the decrease in revenue[120][127]. - Administrative expenses decreased by approximately HK$2.3 million to approximately HK$29.8 million in 2022, primarily due to reduced employee remuneration and lower legal and professional fees[122][128]. Market and Business Strategy - Revenue in European countries increased by approximately 216% compared to 2021, driven by the resumption of large luxury hotel projects in the UK[18]. - The Group aims to strengthen cost control and resource management while actively participating in project tenders to maintain competitiveness[19]. - The management is focusing on developing the local business in the PRC market, establishing new relationships with luxury brands and property developers[17]. - The company is exploring opportunities in the online gaming business, conducting research and development, and seeking suitable business partners for strategic cooperation[29]. - The gradual recovery of the COVID-19 pandemic is expected to lead to a promising business outlook in the PRC market in the coming years[27]. - The Group is committed to keeping abreast of market developments and seizing potential business opportunities for sustainable growth[28]. - The management is committed to resuming overseas business and strengthening local competitive advantages despite the uncertainties in the global economic environment[101][106]. - The Group is actively seeking potential acquisition targets that may synergize with its existing business for ongoing strategic growth[109][114]. COVID-19 Impact - The ongoing COVID-19 pandemic has led to delays in business activities and projects, significantly impacting financial performance[16]. - The COVID-19 pandemic has led to the suspension or delay of business activities globally, significantly impacting the Group's revenue[88]. Corporate Governance - The Company has adopted the Corporate Governance Code to enhance corporate value and accountability, with the Board overseeing strategic decisions and performance[166]. - The company held eleven board meetings during the year, with all directors attending each meeting[185]. - The company complied with the requirement of having at least three independent non-executive directors, with one possessing appropriate professional qualifications[173]. - The board composition includes a balanced mix of executive and independent non-executive directors to ensure a balance of power and authority[176]. - The chairman and CEO roles are held by Mr. Lee Wai Sang, which the board believes provides strong and consistent leadership[176]. - The company intends to hold board meetings at least four times a year, with notices given at least fourteen days in advance[182]. - The board will continue to review the separation of the chairman and CEO roles as appropriate[176]. - The company has complied with the requirement for independent non-executive directors to represent at least one-third of the board[174]. Audit Committee - The Audit Committee held three meetings during the year to review the interim and annual results of the Company[200]. - The Audit Committee is composed of three independent non-executive Directors, ensuring compliance with Listing Rules and corporate governance standards[198]. - The primary responsibilities of the Audit Committee include supervising the financial reporting process, risk management, and internal control systems[199]. - The Audit Committee has access to independent professional advice and is provided with sufficient resources to perform its duties[199]. - The Audit Committee can make recommendations to the Board regarding the appointment and removal of the external auditor[199]. Management Team - Mr. Lee has over 30 years of experience in the interior design industry and has been the CEO since March 18, 2016[48]. - Mr. Leung Pak Yin has over 20 years of experience in sales and business development, serving as a project director since joining the Group on September 13, 2006[49]. - Ms. Leung Mo Shan Jackie has over 25 years of experience in finance and has been an executive director since April 15, 2021[51]. - Mr. Lam Wing Hung was appointed as the finance director of the Company effective September 16, 2022, and has over 10 years of experience in auditing and corporate management[58]. - Mr. Hu Xiongjie has been an executive director since October 11, 2022, bringing several years of experience in the logistics industry and entrepreneurial experience in Singapore and Malaysia[59]. - Mr. So Chi Hang has over 25 years of finance experience and has served as the vice president of project management at BSN Medical KK in Japan from October 2015 to December 2017[60]. - The Company is focused on expanding its management team with experienced professionals to strengthen its operational capabilities[58].
易纬集团(03893) - 2022 - 中期财报
2022-03-16 08:36
Financial Performance - The Group's revenue for the six months ended December 31, 2021, was approximately HK$23.8 million, a decrease of 56% compared to approximately HK$53.8 million for the same period in 2020[11]. - Gross profit for the same period was approximately HK$6.4 million, down from approximately HK$11.4 million in the prior year, reflecting a decline of 44%[11]. - The consolidated net loss increased to approximately HK$8.2 million for the six months ended December 31, 2021, compared to a loss of approximately HK$3.8 million for the same period in 2020[13]. - Revenue for the six months ended 31 December 2021 was HK$23,757,000, a decrease of 56% compared to HK$53,803,000 for the same period in 2020[119]. - Gross profit for the period was HK$6,365,000, down 44% from HK$11,363,000 year-on-year[119]. - Loss before income tax increased to HK$8,164,000, compared to a loss of HK$3,734,000 in the previous year, representing a 119% increase in losses[119]. - For the six months ended 31 December 2021, the Group incurred a loss of approximately HK$8,156,000, compared to a loss of HK$3,734,000 for the same period in 2020, representing an increase in loss of 118%[128]. Cost Management - The gross profit margin improved from approximately 21.1% for the six months ended December 31, 2020, to approximately 26.8% for the current period, indicating better cost control measures[14]. - Direct costs decreased by approximately 59.0% from approximately HK$42.4 million for the six months ended December 31, 2020, to approximately HK$17.4 million for the current period, representing approximately 78.9% and 73.2% of revenue for the corresponding periods[36]. - Administrative expenses decreased to approximately HK$14.8 million for the current period from approximately HK$16.5 million for the six months ended December 31, 2020, due to cost-saving measures[38]. - The total employee benefits for the period were approximately HK$9.5 million, down from approximately HK$10.9 million for the same period in the previous year[62]. - Administrative expenses decreased to HK$14,814,000, down 10% from HK$16,508,000 in the previous year[119]. Impact of COVID-19 - The COVID-19 pandemic significantly impacted consumer sentiment, particularly in the luxury market, leading to delays and cancellations of projects[12]. - The pandemic has caused a drastic drop in the implementation of business strategies related to renovations and new shop rollouts for certain customers[12]. - Some projects originally scheduled for the period have been delayed indefinitely or surrendered due to the pandemic[12]. - The overall market conditions remain volatile, affecting the Group's revenue and operational strategies[12]. - The Group's management will continue to monitor the impact of the COVID-19 pandemic on operations and results, providing updates to shareholders as necessary[22]. Business Expansion and Strategy - The Group has been expanding its business into the People's Republic of China, United States, Europe, Middle East, and other Asian countries since its establishment in 1999[10]. - The Group aims to enhance its competitiveness by actively soliciting business opportunities globally, particularly in the well-established PRC market[22]. - The Group is exploring business opportunities in the online game sector through strategic alliances with independent third parties, although no formal agreements have been signed yet[29]. - The management is confident in the recovery of large projects related to millworks and interior solutions for a top-tier luxury hotel group, which are still in progress despite the pandemic[27]. - The Group is focused on identifying potential strategic cooperation targets that may synergize with its existing business for ongoing strategic growth[30]. Financial Position - As of December 31, 2021, cash and bank balances amounted to approximately HK$18.7 million, slightly down from HK$18.8 million as of June 30, 2021[46]. - The group had bank borrowings of HK$8.0 million and a loan from a substantial shareholder of HK$10.0 million as of December 31, 2021, compared to HK$6.0 million and nil, respectively, as of June 30, 2021[51]. - The gearing ratio was approximately negative 20.3 as of December 31, 2021, indicating a deficit in equity due to accumulated losses, compared to a positive 0.83 as of June 30, 2021[52]. - The company reported a net liability position of HK$885,000 as of 31 December 2021, compared to net assets of HK$7,271,000 as of June 30, 2021[121]. - The Group's total liabilities exceeded its total assets by approximately HK$885,000 as of 31 December 2021[136]. Corporate Governance - The Company has maintained high standards of corporate governance to safeguard shareholder interests and enhance corporate value[103]. - The Board confirmed that all Directors complied with the required standards set out in the Model Code during the six months ended 31 December 2021[96]. - The Company will continue to review and enhance its corporate governance practices to ensure compliance with the Corporate Governance Code[110]. - The Audit Committee comprises three independent non-executive Directors, ensuring oversight of the Group's financial reporting and risk management[112]. - The Company has adopted the Corporate Governance Code as its own code of corporate governance[103].
易纬集团(03893) - 2021 - 年度财报
2021-10-27 08:42
Financial Performance - For the year ended June 30, 2021, the Group's revenue was approximately HK$86.6 million, representing a 61.0% increase compared to HK$53.8 million in the previous year[12]. - The gross profit for the same period was approximately HK$18.7 million, reflecting a 9.1% increase from HK$17.1 million in the prior year[12]. - The Group reduced its loss for the year to approximately HK$11.8 million, a significant improvement of 58.2% compared to a loss of approximately HK$28.2 million in the previous year[12]. - The gross profit margin for the year was 21.6%, down from 31.8% in the previous year[12]. - The Group's overseas business was adversely affected by the COVID-19 pandemic, with revenue from overseas activities at approximately HK$11.9 million in 2021, down from HK$22.3 million in 2020[83]. - Revenue from interior solutions services significantly increased to approximately HK$59.5 million in 2021 from approximately HK$25.4 million in 2020[103]. - Direct costs increased by approximately 85.3% from approximately HK$36.7 million in 2020 to approximately HK$67.9 million in 2021, representing 68.2% and 78.4% of revenue in 2020 and 2021 respectively[110]. Business Strategy and Outlook - The management plans to strengthen cost control and resource management while actively participating in project tenders to maintain competitiveness[18]. - The Group has secured several large projects related to millworks and interior solutions for luxury hotels, indicating a positive outlook for future business relationships[19]. - The Group is actively exploring business opportunities in the PRC's interior solutions market, resulting in promising project negotiations[26]. - The management is confident that the quality of products and services will lead to long-term business relationships and more similar projects in the near future[23]. - The Group aims to leverage its established experience and connections in the luxury hotel market to expand its business further[23]. - The Group is making pre-emptive moves to seize potential business opportunities to support sustainable development[27]. Management and Governance - The Board is committed to maximizing the interests of the Group and its shareholders for long-term value growth[29]. - The Board has established four committees to oversee various aspects of the Company's affairs, ensuring effective governance and strategic decision-making[181]. - The Board consists of seven members, including four executive directors and three independent non-executive directors[185]. - The Company complied with the Listing Rules requiring at least three independent non-executive directors, with one possessing appropriate professional qualifications or financial management expertise[187]. - Mr. Lee Wai Sang serves as both Chairman and Chief Executive Officer, which the Board believes provides strong and consistent leadership[190]. Financial Position and Capital Management - Total assets decreased to HK$48.6 million, down 11.5% from HK$54.9 million in the prior year[12]. - The current ratio decreased to 0.90 from 1.47 in the prior year, indicating a decline in liquidity[12]. - As of June 30, 2021, cash and bank balances amounted to approximately HK$18.8 million, down from approximately HK$27.5 million in 2020[124]. - The Group has a bank facility of HK$15.0 million, with HK$6.0 million drawn down as of June 30, 2021[124]. - The Group utilized approximately HK$5.3 million from the net proceeds of the placing for general working capital, including office rent, legal fees, and employee salaries[139]. - The Group's net proceeds from the share offer amounted to approximately HK$64.6 million, with plans to allocate part of it for expanding interior solutions services[162][163]. Human Resources - Total employee benefits amounted to approximately HK$20.3 million, a decrease from approximately HK$21.9 million in the previous year, primarily due to restructuring of senior management remuneration[149]. - The Group had no significant contingent liabilities as of June 30, 2021[138]. Market and Competitive Environment - The Group is focusing on enhancing cost control and resource management to maintain market competitiveness[23]. - The management emphasized the importance of local market development in response to ongoing global challenges[84]. - The Group is actively seeking potential acquisition targets that may synergize with its existing business for ongoing strategic growth[102]. COVID-19 Impact - The management will continue to monitor the impact of the COVID-19 pandemic on operations and results, ensuring shareholders are kept informed[17]. - The Group's overseas business activities continue to be adversely affected by the ongoing COVID-19 pandemic, prompting a strategic focus on local markets[91].
易纬集团(03893) - 2021 - 中期财报
2021-03-23 09:26
Revenue Performance - For the six months ended December 31, 2020, the Group's revenue was approximately HK$53.8 million, a 38.6% increase from approximately HK$38.8 million for the same period in 2019[10]. - Revenue increased by approximately HK$15.0 million, reaching approximately HK$53.8 million for the six months ended December 31, 2020, up from approximately HK$38.8 million for the same period in 2019, driven by a significant increase in interior solutions services revenue (approximately HK$38.0 million for the six months ended December 31, 2020, up from approximately HK$16.9 million in 2019)[19]. - Revenue from local business in Hong Kong, Macau, and Mainland China increased significantly to approximately HK$48.9 million, constituting about 90.9% of total revenue during the period[12]. - Revenue from Hong Kong increased to HK$29,116,000 for the six months ended December 31, 2020, up 48.7% from HK$19,550,000 in the prior year[166]. - Revenue from the PRC surged to HK$19,817,000, a significant increase from HK$1,454,000 in the same period last year[166]. - Revenue from interior solutions projects increased by approximately 124.9% from approximately HK$16.9 million for the six months ended December 31, 2019 to approximately HK$38.0 million for the Period, attributed to large projects awarded by renowned property developers[33]. Profitability and Loss - The gross profit for the same period was approximately HK$11.4 million, slightly down from approximately HK$11.7 million in 2019, indicating a gross margin of about 21.2%[10]. - The Group's gross profit decreased by approximately 2.6% to approximately HK$11.4 million for the six months ended December 31, 2020, with a gross profit margin of approximately 21.1% compared to 30.2% in the prior period[38][43]. - The consolidated net loss decreased to approximately HK$3.8 million from approximately HK$7.6 million in the previous year, reflecting improved cost management[10]. - Loss before income tax expenses decreased to HK$3,734,000, improving by 51.0% from a loss of HK$7,604,000 in the prior period[139]. - Loss attributable to owners of the Company for the period was HK$3,755,000, a reduction of 50.8% compared to HK$7,628,000 in the previous year[139]. - Basic and diluted loss per share improved to HK$0.52, compared to HK$1.27 for the same period in 2019[139]. Cost Management - Administrative expenses decreased to approximately HK$16.5 million from approximately HK$19.2 million, contributing to the reduction in net loss[14]. - Direct costs increased by approximately 56.5% from approximately HK$27.1 million for the six months ended December 31, 2019 to approximately HK$42.4 million for the Period, representing approximately 69.8% and 78.9% of revenue for the corresponding periods, respectively[37]. - The management is actively reviewing expenditure structures and implementing cost reduction measures to enhance competitiveness[14]. - Employee benefit expenses decreased to HK$10,875,000, down 8.7% from HK$11,918,000 in the previous year[180]. Business Strategy and Market Focus - The Group is focusing on resuming overseas business as the COVID-19 pandemic situation gradually improves with vaccine availability[13]. - The Group is focusing on expanding its principal business through cooperation with various business partners, particularly in the property market, which is identified as a key area for synergy[22]. - The Group plans to actively seek business opportunities globally as the COVID-19 pandemic recovers, leveraging partnerships with established suppliers to enhance competitiveness[29]. - The design and creative team is being expanded to broaden revenue sources by providing design services to a diverse range of potential customers, including traditional and online businesses[31]. - The significant increase in revenue from local markets demonstrates the effectiveness of the Group's strategic focus on these regions[12]. Financial Position and Assets - As of 31 December 2020, cash and bank balances amounted to approximately HK$24.6 million, down from approximately HK$27.5 million as of 30 June 2020[41][45]. - Total assets increased to HK$68,564,000 as of December 31, 2020, up from HK$54,937,000 as of June 30, 2020, representing a growth of approximately 24.7%[141]. - Current liabilities rose to HK$43,839,000, compared to HK$23,282,000 in the previous period, indicating an increase of about 88.6%[141]. - The company’s total equity as of December 31, 2020, was HK$15,340,000, down from HK$19,095,000, indicating a decrease of approximately 19.5%[141]. - The Group's specified non-current assets totaled HK$17,157,000 as of December 31, 2020, down from HK$18,960,000 as of June 30, 2020[169]. Corporate Governance - The Group is committed to high standards of corporate governance, having adopted the Corporate Governance Code[122]. - The Company continues to enhance its corporate governance practices to ensure compliance with the Corporate Governance Code[132]. - The roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Lee Wai Sang, which the Board believes provides strong leadership[131]. Shareholder Information - Mr. Lee holds 450,000,000 shares in the Company, representing a 62.5% shareholding[103]. - CGH (BVI) Limited, a company owned 50% by Mr. Lee and Ms. Leung, is the beneficial owner of 450,000,000 shares, also representing 62.5%[110]. - As of December 31, 2020, no other directors or senior management had interests in the shares or debentures of the Company that required disclosure[104]. Cash Flow and Financing - The company generated net cash used in operating activities of HK$7,791,000, compared to a net cash generated of HK$3,085,000 in the prior year[148]. - The company raised new bank borrowings of HK$7,000,000 during the period[148]. - The Group had bank borrowings of HK$7.0 million as of 31 December 2020, resulting in a gearing ratio of 45.6%[48][61]. Other Financial Information - The Group did not declare any interim dividend for the six months ended December 31, 2020[64]. - There were no significant contingent liabilities as of December 31, 2020[63]. - The Group did not hold any significant investments as of December 31, 2020 and has no plans for material investments or capital assets[65].
易纬集团(03893) - 2020 - 年度财报
2020-10-15 08:32
Financial Performance - For the year ended June 30, 2020, the Group's revenue was approximately HK$53.8 million, a decrease of 43.5% compared to HK$95.3 million in the previous year[12]. - The gross profit for the same period was approximately HK$17.1 million, representing a decline of 45.4% from HK$31.3 million in the prior year[12]. - The Group recorded a net loss of approximately HK$28.2 million, an increase of 193.8% compared to a net loss of approximately HK$9.6 million in the previous year[12]. - Total assets decreased by 10.9% to HK$54.9 million from HK$61.7 million[12]. - Total equity fell by 47.6% to HK$19.1 million from HK$36.4 million[12]. - The current ratio decreased to 1.47 from 2.21, indicating a decline in liquidity[12]. - Business from international markets accounted for approximately 42.6% of the Group's revenue, down from 67.1% in 2019 due to the COVID-19 pandemic[88]. - The Group implemented a cost reduction exercise to manage expenses amid the adverse business conditions caused by the pandemic[89]. - The Group recorded other losses of approximately HK$9.0 million in 2020, primarily due to impairment losses on property and equipment[118]. - Administrative expenses decreased by approximately HK$4.3 million to approximately HK$36.7 million in 2020, mainly due to a reduction in employee benefits[119]. Strategic Initiatives - The management plans to strengthen cost control and resource management to maintain competitiveness in the market[17]. - The Group is actively seeking to broaden its income sources by expanding into event management and collaborating with international F&B brands for lifestyle marketing[28]. - The Group plans to expand its millwork and furniture business into the global premium cruise market, with satisfactory progress in negotiations[26]. - The Company is focusing on exploring business opportunities in the interior solutions market in China, partnering with established local businesses[26]. - The Group is focusing on expanding its business in the PRC market and exploring opportunities in the global premium cruise market[106][105]. - The Group is actively seeking opportunities in the online shopping business due to the rising trend in e-commerce sales during the COVID-19 pandemic[108]. - The management is soliciting potential acquisition targets that may synergize with the existing business for ongoing strategic growth[109]. Leadership and Management - Mr. Lau has over 25 years of experience in accounting, auditing, and corporate finance, and has been the CFO since January 2016[48]. - Mr. Lau was previously the executive director of Cypress Group from October 2010 to December 2015, responsible for daily operations[48]. - Mr. Lau served as the group finance and administration manager for DTZ Debenham Tie Leung Limited from December 1994 to August 2010[48]. - Mr. Leung has over 20 years of experience in sales and business development, joining the Group on September 13, 2006[50]. - Mr. Leung was an account manager at Wharf T&T Limited from 2004 to 2006, managing customer relations and sales[50]. - Mr. So has over 25 years of experience in finance, with exposure in Hong Kong, PRC, Australia, Taiwan, and Japan[59]. - Mr. Heng has over 20 years of experience in banking and finance, currently serving as managing partner of Springboard Capital Limited since June 2011[64]. - Mr. Shing has 20 years of specialized experience in hospitality industry procurement, currently serving as Group Director Purchasing of Wharf Hotels Management Limited since March 2010[66]. Corporate Governance - The Board is committed to maximizing the interests of the Group and its shareholders to achieve long-term value growth[29]. - The company complies with the requirement of having at least three independent non-executive directors on the Board[190]. - The roles of Chairman and Chief Executive Officer are held by Mr. Lee, which the Board believes provides strong and consistent leadership[194]. - The Board intends to hold meetings at least four times a year, approximately at quarterly intervals[195]. - The Board's composition includes a balanced mix of executive and independent non-executive directors to ensure a balance of power[194]. - The company has adhered to the corporate governance code regarding the separation of roles and the appointment of independent directors[189]. - The Board will continue to review the appropriateness of the current leadership structure as circumstances evolve[194]. Shareholder Matters - The Company entered into a placing agreement to issue up to 480,000,000 new ordinary shares at a placing price of HK$0.0233 per share, representing a discount of approximately 19.66% to the closing price on the date of the agreement[132]. - The Group completed a placing of 480,000,000 shares at a price of HK$0.0233 per share, raising net proceeds of approximately HK$10.8 million[139]. - Approximately HK$5.5 million of the net proceeds from the placing has been utilized for general working capital, with HK$5.3 million remaining unutilized[139]. - The company raised net proceeds of approximately HK$64.6 million from the share offer, with 30% (HK$19.3 million) originally planned for acquisitions and partnerships[163][164]. - A share consolidation proposal was made on September 23, 2020, to consolidate every four shares into one share of par value HK$0.04[158]. - A circular with further details on the share consolidation is expected to be sent to shareholders by October 16, 2020[162][167].
易纬集团(03893) - 2020 - 中期财报
2020-03-25 08:31
Financial Performance - For the six months ended December 31, 2019, the Group's revenue was approximately HK$38.8 million, a decrease of 45.2% compared to approximately HK$70.6 million for the same period in 2018[10]. - The gross profit for the same period was approximately HK$11.7 million, down 41.1% from approximately HK$19.9 million in the prior year[10]. - The unaudited consolidated loss attributable to owners of the Company increased by approximately HK$6.7 million compared to the loss for the six months ended December 31, 2018[10]. - Revenue decreased by approximately 45.0% from approximately HK$70.6 million to approximately HK$38.8 million due to business expansion slowdown and social unrest in Hong Kong[21]. - Gross profit decreased by approximately 41.2% from approximately HK$19.9 million to approximately HK$11.7 million, while gross profit margin increased to approximately 30.2%[23]. - Loss before income tax expense was HK$7,604,000, compared to a loss of HK$845,000 for the same period in 2018, indicating a significant increase in losses[111]. - The company reported a loss attributable to owners of the Company of HK$7,628,000 for the period, compared to a loss of HK$930,000 in the previous year[111]. - Basic and diluted loss per share for the period was HK$0.32, compared to HK$0.04 for the same period in 2018[111]. Business Operations and Strategy - The decline in financial performance was primarily due to a slowdown in business expansion by major clients and social unrest in Hong Kong[11]. - The Group has been expanding its business into the PRC, U.S., Europe, Middle East, and other Asian countries since its establishment in 1999[9]. - The Group's business strategies will be adjusted in response to the ongoing economic challenges posed by social unrest and the pandemic[13]. - The Company will continue to assess the actual impact of external factors on its business performance and adjust strategies accordingly[13]. - The Group is actively seeking business opportunities in Europe and PRC to diversify its revenue base and support sustainable development[19]. - Collaboration with a highly recognized security glass supplier in Germany aims to promote supreme security glass to international brands and high-end residential units[18]. - The Group's management is focused on strengthening its revenue base by exploring potential business opportunities globally[20]. Financial Position - Cash and bank balances amounted to approximately HK$31.5 million as of 31 December 2019, down from approximately HK$40.0 million as of 30 June 2019[33]. - The Group did not have any bank borrowings during the Period, with a gearing ratio of nil[36]. - Total assets as of December 31, 2019, were HK$67,520,000, an increase from HK$61,679,000 as of June 30, 2019[113]. - Net current assets decreased to HK$11,168,000 from HK$29,682,000 as of June 30, 2019, reflecting a decline in liquidity[113]. - Total liabilities increased to HK$38,704,000 from HK$25,236,000, indicating a rise in financial obligations[113]. - The Group had no significant contingent liabilities as of December 31, 2019[42]. - The Group had no capital commitments as of December 31, 2019, compared to approximately HK$7.7 million as of June 30, 2019[55]. Corporate Governance - The company has adopted the Corporate Governance Code and believes it has complied with its provisions, except for the separation of roles between the chairman and CEO[99][100]. - The directors' fees for all executive directors were suspended effective January 1, 2020[102]. - The company aims to enhance its corporate governance practices to ensure compliance with the CG Code[101]. - The company recognizes the importance of good corporate governance for accountability and management[94]. - The Board believes that having the same individual serve as both chairman and CEO provides strong leadership and effective management[100]. Employee and Operational Expenses - Total employee benefits for the Period were approximately HK$11.9 million, a decrease from approximately HK$12.7 million for the same period in 2018[47]. - Administrative expenses decreased to approximately HK$19.2 million from approximately HK$21.1 million, mainly due to cost-saving measures[31]. - The depreciation of property, plant, and equipment for the period was HK$893,000, an increase from HK$775,000 in the previous year[120]. - Employee benefit expenses, including directors' and chief executive's remuneration, amounted to HK$11,918,000 for the six months ended December 31, 2019, a decrease of 5.9% from HK$12,665,000 in the previous year[171]. Share Capital and Dividends - The Board resolved not to declare any interim dividend for the Period[43]. - The company has an authorized share capital of 10,000,000,000 ordinary shares with a par value of HK$0.01 each, unchanged since June 30, 2019[200]. - The issued and fully paid ordinary shares remained at 2,400,000,000 as of December 31, 2019, with no movement noted during the period[200]. Net Proceeds and Utilization - The net proceeds from the Share Offer amounted to approximately HK$64.6 million, with plans to allocate HK$19.3 million for acquisitions and partnerships[60][61]. - The Board resolved to re-allocate approximately HK$10.6 million of unutilized net proceeds to establish a new R&D center in Hong Kong[62]. - The company plans to utilize approximately HK$5.1 million of unutilized net proceeds for settling operating expenses incurred by overseas subsidiaries by June 30, 2021[70]. - The company allocated approximately HK$1.2 million of unutilized net proceeds for the development of R&D centers in Hong Kong, which will be gradually utilized for R&D works related to new designs and products[72]. - The company has resumed its expansion plan for interior solutions services targeting the mid to high-end residential market, planning to use approximately HK$3.9 million of unutilized net proceeds for sales and marketing efforts by June 30, 2021[72]. - Total planned allocation of net proceeds was HK$64.6 million, with actual utilization as of December 31, 2019, being HK$44.6 million, leaving HK$20 million unutilized[69]. Lease Accounting - The Group adopted HKFRS 16 "Leases" on July 1, 2019, using the modified retrospective method, with no restatement of comparative information for the year ended June 30, 2019[135]. - Lease liabilities recognized at the adoption date amounted to approximately HK$16.7 million, measured at the present value of remaining minimum lease payments[148]. - The Group has chosen not to recognize right-of-use assets and lease liabilities for leases of low-value assets and short-term leases, instead recognizing lease payments as an expense on a straight-line basis[141]. - Right-of-use assets were measured at the amount of the lease liability, adjusted for any prepaid or accrued lease payments recognized before July 1, 2019[146]. - The Group's lease accounting as a lessor remains unchanged under HKFRS 16, continuing to classify leases as either operating or finance leases[134]. Revenue Breakdown - Revenue from external customers for the six months ended 31 December 2019 was HK$38.785 million, a decrease from HK$70.579 million for the same period in 2018, representing a decline of approximately 45%[163]. - Revenue from sales of millwork and furniture was HK$18.027 million, down from HK$34.345 million in the previous year, indicating a decrease of approximately 47.5%[163]. - Revenue from facade fabrication dropped significantly to HK$860,000 from HK$24.982 million, reflecting a decline of approximately 96.6%[163]. - Income from interior solutions projects increased to HK$16.946 million from HK$10.395 million, marking an increase of approximately 63.5%[165]. - The Group's geographical revenue breakdown shows that revenue from Hong Kong was HK$19.550 million, down from HK$25.714 million in the previous year, a decrease of approximately 23.5%[158].
易纬集团(03893) - 2019 - 年度财报
2019-10-21 09:09
Financial Performance - For the year ended June 30, 2019, the Group's revenue was approximately HK$95.3 million, representing a 33.3% increase from HK$71.5 million in the previous year[13]. - The gross profit for the same period was approximately HK$31.3 million, reflecting a 55.0% increase compared to HK$20.2 million in the prior year[13]. - The Group recorded a net loss of approximately HK$9.6 million, a significant improvement of 58.1% from a net loss of approximately HK$22.9 million in the previous year[13]. - Total assets decreased by 10.0% to HK$61.7 million from HK$68.5 million[13]. - Total equity declined by 20.5% to HK$36.4 million from HK$45.8 million[13]. - The gross profit margin improved to 32.8% from 28.2% in the previous year[13]. - The improvement in gross profit margin rose from approximately 28.2% in 2018 to approximately 32.8% in 2019, attributed to higher sales of millwork, furniture, and facade fabrication[84]. - The net loss for the year decreased to approximately HK$9.6 million, a reduction of approximately 58.1% from HK$22.9 million in 2018[82]. - The direct cost increased by approximately 24.7% from approximately HK$51.4 million in 2018 to approximately HK$64.1 million in 2019, representing approximately 67.2% of revenue in 2019[99]. - Revenue from the five largest brands accounted for approximately 88.6% of total revenue in 2019, increasing from approximately 66.6% in 2018[98]. - Interior solutions services revenue decreased to approximately HK$13.3 million in 2019 from approximately HK$27.2 million in 2018 due to the completion of major projects[90]. Business Strategy and Expansion - The Group plans to focus on bespoke interior design solutions and expand into the mid to high-end residential market, leveraging its experience in the fit-out business[18][19]. - The Group is actively seeking potential acquisition targets with solid financial performance to support strategic growth[20]. - The Group aims to diversify its business and establish a strong recurring income base for sustainable development[19]. - The group will continue to focus on providing customized and comprehensive interior design solutions, as well as the supply of metal, glass, wooden products, and furniture manufacturing[24]. - The group is actively seeking potential opportunities to provide metal, glass, and wooden products and furniture to high-end fashion, hotel, and beauty brands, particularly in the European market, with satisfactory negotiation progress[24]. - The Group has been expanding its business into China, the United States, Europe, the Middle East, and other Asian countries since its establishment in 1999[81]. - The increase in revenue and gross profit was primarily due to the implementation of previously delayed business strategies related to renovations and new shop rollouts for major customers[83]. - The Group's business strategies included the renovation and new shop rollout of certain major customers during the year[83]. - The Group is focusing on expanding interior solutions services to the mid to high-end residential market in Hong Kong[91]. - The Group is actively seeking potential acquisition targets to enhance strategic growth and synergy with existing business[91]. Management and Governance - Mr. Lau has over 25 years of experience in accounting, auditing, and corporate finance, currently serving as the Chief Financial Officer since January 2016[43]. - Mr. Leung has over 20 years of experience in sales and business development, currently serving as Project Director (Business Development) since March 2016[45]. - Mr. So has over 25 years of experience in finance across multiple regions including Hong Kong and Japan, appointed as an independent non-executive Director since August 2016[52]. - The Group's financial management is overseen by Mr. Lau, who is also the company secretary and a member of the Risk Management Committee[43]. - The Group has a focus on client liaison and business development, led by Mr. Leung, who is responsible for managing customer relationships[45]. - The Group's executive team includes members with extensive backgrounds in finance and business development, enhancing strategic decision-making capabilities[43][45][52]. - The Group's governance structure includes various committees such as the Audit Committee and the Remuneration Committee, chaired by Mr. So[52]. - The company has a strong governance structure with independent non-executive directors overseeing key committees such as Audit, Remuneration, and Risk Management[59]. - The company emphasizes strategic planning in developing new hotel products and enhancing procurement performance[61]. - The management team includes experienced professionals with backgrounds in finance, project management, and procurement, ensuring effective operational oversight[68]. - The company is committed to maintaining high standards of corporate governance and ethical practices across its operations[63]. - The board comprises members with diverse expertise, contributing to informed decision-making and risk management[59]. Use of Proceeds and Financial Commitments - The Company raised net proceeds of approximately HK$64.6 million from the share offer, with 600,000,000 shares issued at HK$0.15 each[141]. - Approximately 30% of the net proceeds (HK$19.3 million) was initially planned for acquisitions and partnerships, but HK$6.1 million (9.4% of net proceeds) was reallocated to expand interior solutions services[142]. - The Board reallocated HK$10.6 million of net proceeds, originally for an overseas R&D center, to establish a new R&D center in Hong Kong, with an acquisition of a property for HK$8.5 million[143]. - As of June 30, 2019, HK$33.2 million of the net proceeds had been utilized, leaving HK$31.4 million unutilized[149]. - The Company plans to continue using the net proceeds in line with the stated purposes in the Prospectus, while evaluating business objectives[144]. - The unutilized net proceeds have been placed as interest deposits with licensed banks in Hong Kong[152]. - The acquisition related to the new R&D center was completed on July 18, 2019[153]. - The Company has utilized HK$9.9 million for additional working capital and other general corporate purposes[149]. - The expansion of interior solutions services to the mid to high-end residential market received HK$6.1 million in revised allocation[149]. - The Company will issue further announcements if there are changes in the use of net proceeds from those stated in the Prospectus[152]. - The company plans to utilize approximately HK$6.6 million of unutilized net proceeds for settling operating expenses of overseas subsidiaries by June 30, 2021[157]. - Approximately HK$9.0 million of unutilized net proceeds is allocated for establishing an R&D center in Hong Kong, with HK$7.7 million already utilized and HK$1.3 million expected to be gradually used for R&D works[157]. - The expansion of interior solutions services to the mid to high-end residential market is planned with an allocation of approximately HK$6.0 million, expected to be utilized within two years after establishing an office show flat[157]. Corporate Governance and Board Structure - The board comprises six members, including three executive directors and three independent non-executive directors as of June 30, 2019[168]. - The company has complied with the requirement of having at least three independent non-executive directors, although there was a temporary non-compliance due to the passing of an independent director[169]. - The roles of the chairman and the chief executive officer are performed by the same individual, which deviates from the CG Code provision A.2.1[171]. - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Risk Management Committee to oversee specific aspects of its affairs[161]. - The company has been in compliance with the Corporate Governance Code during the year, except for the noted deviation regarding the chairman and CEO roles[159]. - The company aims to enhance corporate value and accountability through high standards of corporate governance practices[158]. - The Board held six meetings during the year and passed resolutions by written resolutions[180]. - The Chairman and Chief Executive Officer roles are held by Mr. Lee, which the Board believes provides strong and consistent leadership[176]. - The company intends to hold board meetings at least four times a year, approximately at quarterly intervals[177]. - The attendance of Board members at the 2018 annual general meeting is documented in the report[186]. - The Board will continue to review the appropriateness of splitting the roles of Chairman and Chief Executive Officer[176]. - Notices for regular board meetings are given at least fourteen days in advance[177]. - The agenda and documents for meetings are sent to directors at least five days prior to the meetings[178]. - The company has a balanced composition of executive and independent non-executive directors to ensure a balance of power[176]. - The Audit Committee held three meetings during the year, with all members present either in person or via telephone[194]. - The Company reviewed the Group's annual financial results for the year ended June 30, 2018, and interim financial results for the six months ended December 31, 2018[197]. - The Remuneration Committee is responsible for determining policies related to human resources management and reviewing the Company's remuneration policies[200]. - The Audit Committee assessed the independence of the Company's auditor and discussed the audit plan for the year ended June 30, 2019[197]. - The Company has three independent non-executive Directors on the Audit Committee, ensuring compliance with the CG Code[192]. - The Remuneration Committee consists of three members, including two independent non-executive Directors and one executive Director[199]. - The Audit Committee has access to independent professional advice and sufficient resources to perform its duties[193]. - The Company reviewed significant issues on financial reporting and internal control during the year ended June 30, 2018[197]. - The Remuneration Committee determines remuneration packages for Directors and senior management members of the Company[200]. - The Company established the Audit Committee on August 22, 2016, in compliance with the CG Code[192].