Financial Performance - For the nine months ended September 30, 2020, the group's revenue decreased by approximately 9.5% to about HKD 74.5 million from approximately HKD 82.3 million in the same period last year[5]. - The group's gross profit fell by approximately 25.8% to about HKD 30.7 million from approximately HKD 41.4 million in the previous year[5]. - Profit attributable to ordinary equity shareholders decreased from approximately HKD 24.6 million in the previous year to about HKD 15.9 million in the current period[5]. - The operating profit for the nine months was approximately HKD 19.4 million, down from HKD 29.6 million in the same period last year[7]. - The total comprehensive income for the nine months was approximately HKD 15.6 million, compared to HKD 18.1 million in the previous year[9]. - Revenue for the three months ended September 30, 2020, was HKD 24,010,000, a decrease of 22.6% compared to HKD 31,001,000 for the same period in 2019[20]. - Revenue for the nine months ended September 30, 2020, was HKD 74,491,000, down 9.5% from HKD 82,312,000 in the same period of 2019[20]. - The company's basic earnings per share for the nine months ended September 30, 2020, decreased to 1.59 HKD cents from 2.46 HKD cents in the same period last year, representing a decline of approximately 35.4%[28]. - Total revenue decreased from approximately HKD 38.3 million in the previous year to about HKD 14.8 million in the current period, primarily due to a decline in design and renovation projects[44]. - Net profit for the period decreased from approximately HKD 24.6 million in the previous year to about HKD 15.9 million, mainly due to a decline in gross profit from design and renovation projects[50]. Dividends and Shareholder Returns - The board of directors did not recommend the payment of dividends for the current period, consistent with the previous year[5]. - The board of directors did not recommend the distribution of dividends for the nine months ended September 30, 2020, consistent with the same period last year[30]. - The company did not recommend any dividend distribution for the current period, consistent with the previous year[51]. Costs and Expenses - The group reported a decrease in direct costs from approximately HKD 40.96 million to HKD 43.83 million for the nine months[7]. - The total employee costs for the nine months ended September 30, 2020, were HKD 4,334,000, down 18% from HKD 5,283,000 in 2019[22]. - The depreciation expense for the nine months ended September 30, 2020, was HKD 1,341,000, slightly up from HKD 1,224,000 in 2019[24]. - The tax expense for the nine months ended September 30, 2020, was HKD 3,440,000, a decrease from HKD 4,913,000 in the same period of 2019[26]. - General and administrative expenses slightly decreased by approximately 2.0% to about HKD 12.2 million from HKD 12.5 million in the previous year[48]. Government Support and Grants - Government grants recognized as income for the nine months ended September 30, 2020, amounted to HKD 528,000, compared to no grants in the same period of 2019[21]. Corporate Governance - The company has complied with the corporate governance code, except for a deviation regarding the separation of the roles of Chairman and CEO, which are both held by Liu Jingwei[70]. - The company has established an audit committee to oversee financial reporting and risk management, enhancing corporate governance practices[74]. - The company has maintained a strong governance structure, with independent non-executive directors effectively performing their roles[70]. - The company is committed to reviewing its governance structure to assess the need for separating the roles of Chairman and CEO in the future[70]. Liquidity and Financial Position - As of September 30, 2020, the current ratio was approximately 7.3 times, an increase from 3.9 times as of December 31, 2019[54]. - The company had no outstanding borrowings as of September 30, 2020, indicating no significant debt financing needs during the period[54]. - Cash and cash equivalents amounted to approximately HKD 98.2 million as of September 30, 2020, compared to HKD 91.0 million as of December 31, 2019[53]. - The company maintained a strong liquidity position with no significant capital commitments as of September 30, 2020[57]. Business Operations and Future Outlook - The company continues to focus on its core business of interior design and project management services in Hong Kong and mainland China[18]. - The company plans to continue investing resources to undertake more large-scale projects to further develop its interior design and contracting business[42]. - The company remains optimistic about the future of the interior design and contracting market, particularly in commercial spaces and healthcare centers[42]. - The company has implemented preventive measures against COVID-19 to maintain a hygienic working environment, which may impact its operations[39]. - The company’s management will continue to monitor the potential impacts of the COVID-19 pandemic on its business and operations[39]. Shareholding Structure - As of September 30, 2020, Sino Emperor holds 750,000,000 shares, representing a 75% ownership stake in K W Nelson Interior Design and Contracting Group Limited[66]. - Chan Pui Shan, Jessica, as the spouse of Liu Jingwei, is also considered to hold a 75% stake through Sino Emperor, which is wholly owned by Liu Jingwei[67]. Audit and Compliance - The audit committee, consisting of three members, has reviewed the unaudited consolidated financial statements for the nine months ending September 30, 2020, ensuring compliance with applicable accounting standards and GEM listing rules[75]. - No purchases, sales, or redemptions of the company's shares were made by the company or its subsidiaries during the nine months ending September 30, 2020[72]. - The company has not disclosed any interests or stakes in competing businesses by its directors or major shareholders as of September 30, 2020[68]. - The company has adopted a code of conduct for securities transactions by directors, ensuring compliance with trading regulations during the financial performance announcement periods[71].

Financial Performance - For the six months ended June 30, 2020, the group's revenue slightly decreased to approximately HKD 50.5 million, compared to HKD 50.7 million for the same period last year, representing a decrease of about 0.4%[5] - The gross profit for the period was approximately HKD 26.4 million, maintaining stability compared to HKD 26.5 million in the previous year, indicating a gross margin of approximately 52.2%[5] - Profit attributable to ordinary equity shareholders was approximately HKD 15.9 million, down from HKD 16.1 million in the same period last year, reflecting a decrease of about 1.2%[5] - Operating profit for the six months was approximately HKD 19.4 million, compared to HKD 19.1 million in the previous year, showing an increase of about 1.6%[7] - The total comprehensive income for the period was approximately HKD 15.5 million, down from HKD 16.4 million in the same period last year, representing a decrease of about 5.4%[9] - The company reported a basic and diluted earnings per share of HKD 0.85 for the six months, down from HKD 1.11 in the previous year, representing a decrease of approximately 23.4%[7] - The pre-tax profit for the six months ended June 30, 2020, was HKD 15,875,000, compared to HKD 16,060,000 in the same period of 2019, indicating a decline of 1.15%[31] - Basic earnings per share for the six months ended June 30, 2020, was HKD 1.59, down from HKD 1.61 in 2019, a decrease of 1.24%[31] Assets and Liabilities - As of June 30, 2020, total assets amounted to HKD 161.7 million, compared to HKD 168.2 million as of December 31, 2019, indicating a decrease of about 3.1%[11] - The net asset value increased to HKD 140.98 million from HKD 127.99 million, reflecting an increase of approximately 10.1%[11] - Cash and cash equivalents as of June 30, 2020, were HKD 94.4 million, compared to HKD 91.0 million at the end of 2019, showing an increase of about 3.5%[11] - Trade receivables as of June 30, 2020, amounted to HKD 62,079,000, down from HKD 74,124,000 as of December 31, 2019, a decrease of 16.26%[39] - The company’s total liabilities as of June 30, 2020, were HKD 18,833,000, slightly down from HKD 19,629,000 as of December 31, 2019[43] Cash Flow and Dividends - For the six months ended June 30, 2020, the net cash generated from operating activities was HKD 12,630,000, a decrease of 49% compared to HKD 24,916,000 for the same period in 2019[15] - The net cash from operating activities after tax payments was HKD 6,068,000, down from HKD 24,839,000 in the previous year, indicating a significant decline in operational efficiency[15] - The company paid dividends of HKD 2,500,000 for both the six months ended June 30, 2020, and 2019, maintaining its dividend policy despite the operational challenges[15] - The company did not recommend any interim dividend for the six months ended June 30, 2020, consistent with the previous year[33] Operational Highlights - The company continues to focus on its core business of interior design and project management services in Hong Kong and mainland China, with no new segments reported[17] - The group undertook several renovation projects for medical centers and offices, implementing preventive measures against COVID-19 to maintain a hygienic work environment[66] - The group is optimistic about the future of the interior design and renovation market, particularly in commercial spaces and medical centers, due to increasing public awareness of health issues and an aging population[69] - Revenue from medical center and corridor renovation projects increased from approximately HKD 14.3 million to HKD 31.6 million[71] Market and Strategic Initiatives - The company submitted a new formal application for a transfer of its shares from GEM to the main board, believing this will enhance its image and increase liquidity[67] - The company plans to expand its business in the Chinese market, with an actual expenditure of HKD 1.7 million against a planned usage of HKD 3.1 million, resulting in a remaining balance of HKD 1.4 million[95] - The company has revised its expansion plan, indicating that the actual usage of funds for expanding in the Chinese market has taken longer than initially expected[98] Governance and Compliance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15 and has complied with its provisions, except for a deviation regarding the separation of the roles of Chairman and CEO[110] - The Audit Committee, established in November 2016, reviewed the interim financial results for the six months ended June 30, 2020, and confirmed that the financial statements were prepared in accordance with applicable accounting standards and GEM Listing Rules[114]

Financial Performance - For the three months ended March 31, 2020, the group's revenue increased by approximately 15.5% to about HK$26.6 million from approximately HK$23.0 million for the same period last year[5] - The gross profit rose from approximately HK$9.0 million in the previous year to about HK$11.6 million in the current period[5] - Profit attributable to the owners of the company increased from approximately HK$5.0 million to about HK$7.4 million[5] - The operating profit for the period was approximately HK$8.9 million, compared to HK$6.5 million in the previous year, reflecting a significant increase[7] - The basic and diluted earnings per share were HK$0.74 compared to HK$0.50 for the same period last year[7] - The company's pre-tax profit for the three months ended March 31, 2020, was HKD 7.36 million, compared to HKD 4.95 million for the same period in 2019, representing a significant increase[29] - Basic earnings per share increased to HKD 0.74 from HKD 0.50 year-on-year[29] - The total comprehensive income attributable to owners of the company for the period was HK$7.0 million, up from HK$5.9 million in the previous year[7] Dividends and Shareholder Returns - The company did not recommend the payment of an interim dividend for the current period, compared to no dividend in the same period last year[5] - The company did not recommend any interim dividend for the three months ended March 31, 2020, compared to no dividend in the same period last year[31] - The board does not recommend the payment of an interim dividend for the current period[46] Expenses and Costs - General and administrative expenses increased to HK$2.9 million from HK$2.7 million in the previous year[7] - Employee costs decreased to HKD 1.55 million from HKD 2.17 million year-on-year, reflecting a reduction in salary and benefits[22] - Direct costs for the current period were HKD 14.99 million, up from HKD 13.99 million in the previous year[24] - The company reported a tax expense of HKD 1.49 million for the current period, slightly down from HKD 1.53 million in the same period last year[26] Revenue Sources - Revenue from medical center renovation projects rose from approximately HKD 8.3 million to about HKD 19.6 million, offset by a decrease in revenue from office and gallery design and renovation projects from HKD 12.7 million to approximately HKD 5.2 million[39] - The company operates primarily in Hong Kong, generating HKD 26.55 million in revenue for the current period, compared to HKD 22.65 million in the previous year[20] Liquidity and Financial Position - The group had current assets of approximately HKD 132.4 million as of March 31, 2020, compared to HKD 124.8 million as of December 31, 2019[47] - The current ratio was approximately 4.6 times as of March 31, 2020, up from 3.9 times as of December 31, 2019[47] - The company has no outstanding borrowings as of March 31, 2020, due to no significant debt financing needs during the period[49] - The group has maintained a stable liquidity position with no significant impact from exchange rate fluctuations during the period[51] Corporate Governance - The major shareholder, Sino Emperor, holds 750,000,000 shares, representing 75% of the company's equity[60] - The chairman and CEO roles are held by the same individual, which the board believes benefits the group's business prospects and operational efficiency[64] - The company has adopted a code of conduct for securities trading, ensuring compliance with regulations during the reporting period[65] - The audit committee was established on November 18, 2016, in accordance with GEM Listing Rules, consisting of three members[67] - The audit committee is responsible for recommending the appointment and removal of external auditors, reviewing financial statements, and overseeing risk management and internal control procedures[67] - The board of directors includes three executive directors and three independent non-executive directors as of the report date[70] Future Outlook - The company is optimistic about the future of the interior design and renovation market, particularly in commercial spaces and medical centers, and plans to invest more resources to expand its business[37] Other Information - The company has not applied any new accounting standards that have not yet come into effect during the reporting period[17] - As of March 31, 2020, the group had no significant capital commitments[52] - The group employed a total of 20 staff as of March 31, 2020, with no change from December 31, 2019[53] - There were no major investments, acquisitions, or disposals of subsidiaries or associates during the period[54] - As of March 31, 2020, the group had no contingent liabilities[55] - There were no purchases, sales, or redemptions of the company's listed securities during the three months ending March 31, 2020[66] - The unaudited consolidated financial statements for the three months ended March 31, 2020, were reviewed and deemed compliant with applicable accounting standards and GEM Listing Rules[69]

Financial Performance - The group's revenue decreased by approximately 15.7% from about HKD 124.4 million in the previous year to about HKD 104.9 million, primarily driven by a decline in income from commercial renovation projects[10] - Gross profit slightly decreased from approximately HKD 48.9 million to about HKD 48.6 million, representing a reduction of about 0.6%[10] - Profit attributable to shareholders decreased from approximately HKD 28.7 million to about HKD 27.2 million[11] - Total revenue for the year 2019 was HKD 104,884,000, a decrease from HKD 124,385,000 in 2018, representing a decline of approximately 15.6%[44] - The company reported a net profit of HKD 27,200,000 for 2019, down from HKD 28,700,000 in 2018, attributed to reduced gross profit from renovation projects and increased listing and marketing expenses[55] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.025 per share, unchanged from the previous year[12] - The company proposed a final dividend of HK$0.25 per share for the year ended December 31, 2019, amounting to a total distribution of HK$2.5 million[85] - As of December 31, 2019, the company's distributable reserves were approximately HK$27,313,000, down from HK$30,816,000 in 2018[112] - The company has adopted a dividend policy prioritizing cash dividends, with the payout ratio determined at the board's discretion based on financial performance and future prospects[146] Business Strategy and Market Outlook - The company has engaged a sponsor and is considering an application to transfer from GEM to the main board to enhance business development and create long-term value for shareholders[13] - The company anticipates an increase in healthcare centers, medical clinics, and laboratories due to an aging population in Hong Kong, targeting the medical sector for design and renovation projects[13] - The company remains optimistic about the prospects of the interior design and renovation market and will continue to focus on its core business[13] - More resources will be allocated to develop the commercial interior design and renovation business to maximize long-term returns for shareholders[13] - The company aims to maintain and strengthen its market position in Hong Kong and China, focusing on reputable clients and expanding its workforce[59] Growth and Expansion Plans - The company has set a target to expand its market presence by entering three new regions by the end of the next fiscal year[19] - A new product line is expected to launch in Q2 2024, projected to contribute an additional $20 million in revenue[19] - The company plans to expand its capacity to seize more commercial opportunities and explore new business prospects[40] - The group has established a new office in Hengqin, China, to expand its market presence[63] Customer Engagement and Satisfaction - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[19] - Customer satisfaction ratings improved to 90%, reflecting the effectiveness of recent service enhancements[19] Financial Management and Cost Control - Operating margins improved to 18%, up from 15% in the previous year, due to cost management initiatives[19] - General and administrative expenses increased by 14.2% to approximately HKD 16,900,000 due to higher listing and marketing costs[52] - The company has implemented internal control policies to guide management and employees in efficient operations, covering various operational aspects[189] Governance and Compliance - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring compliance with governance standards[155] - The company has adopted corporate governance practices in line with GEM listing rules, although it deviated from one specific provision[154] - All independent non-executive directors confirmed their independence according to GEM listing rules, ensuring compliance with governance standards[158] - The company is committed to ensuring compliance with corporate governance codes and applicable laws and regulations[190] Risk Management - The company has established a risk management team to execute risk identification and monitoring procedures, which includes operational staff and the company secretary[190] - The board is responsible for maintaining effective risk management and internal control systems, which are reviewed at least annually[188] - The company faces risks related to project delays, which could lead to financial liabilities and impact its reputation and future prospects[94] Human Resources and Talent Management - The company provides competitive compensation packages to attract and retain outstanding employees, including performance bonuses[128] - The company has hired six marketing specialists to participate in marketing activities in China[62] - The company has hired one designer and two marketing specialists to enhance design work and marketing activities[64] Shareholder Communication - The company has adopted a shareholder communication policy to facilitate timely access to comprehensive and understandable information for shareholders and potential investors[195] - The company held one annual general meeting for the year ended December 31, 2019, to enhance investor relations and communication with existing and potential investors[196]

Financial Performance - For the six months ended June 30, 2019, the group's revenue decreased by approximately 33.4% to about HKD 50.7 million from approximately HKD 76.1 million in the same period last year[5] - The group's gross profit fell from approximately HKD 29.9 million in the previous year to about HKD 26.5 million in the current period[5] - Profit attributable to ordinary equity shareholders decreased from approximately HKD 17.9 million to about HKD 16.1 million[5] - The operating profit for the six months ended June 30, 2019, was approximately HKD 19.1 million, down from HKD 21.5 million in the previous year[7] - The total comprehensive income for the period was approximately HKD 16.4 million, compared to HKD 17.8 million in the same period last year[10] - The net profit for the period was HKD 16,060,000, compared to HKD 17,879,000 in the previous year, indicating a decline of approximately 10.1%[46] - The overall gross profit margin increased from approximately 39.3% in the previous year to about 52.2% in the current period, primarily due to higher margin medical center renovation projects[112] - The group's net profit for the period decreased from approximately HKD 17.9 million to about HKD 16.1 million, primarily due to a reduction in gross profit[115] Dividends and Earnings - The board of directors did not recommend the payment of an interim dividend for the current period, compared to none in the same period last year[5] - The company reported basic and diluted earnings per share of HKD 1.61 for the six months ended June 30, 2019, down from HKD 1.79 in the previous year[7] - The company paid dividends of HKD 2,500,000 for the previous year, up from HKD 2,000,000 in 2018, indicating a 25% increase in dividend distribution[18] - The company did not declare an interim dividend for the six months ended June 30, 2019, consistent with the previous year[68] Assets and Liabilities - Non-current assets increased to approximately HKD 11.1 million from HKD 2.8 million as of December 31, 2018[14] - Current assets totaled approximately HKD 142.2 million, slightly up from HKD 139.9 million at the end of 2018[14] - The net asset value increased to approximately HKD 124.4 million from HKD 110.4 million as of December 31, 2018[14] - The company’s total equity as of June 30, 2019, was HKD 124,373,000, an increase from HKD 110,445,000 as of January 1, 2019[16] - The company’s non-current assets as of June 30, 2019, were valued at HKD 3,286,000, up from HKD 2,842,000 as of December 31, 2018[54] - As of June 30, 2019, the total lease liabilities amounted to HKD 964,000, with HKD 453,000 due within one year and HKD 392,000 due within one to two years[42] Cash Flow - For the six months ended June 30, 2019, the company reported a net cash inflow from operating activities of HKD 24,916,000, an increase of 66.8% compared to HKD 14,936,000 for the same period in 2018[18] - The company’s operating cash flow net amount was HKD 24,839,000 for the six months ended June 30, 2019, compared to HKD 14,920,000 in the same period of 2018[49] - The company’s financing cash flow net amount was HKD (2,746,000) for the six months ended June 30, 2019, compared to HKD (2,000,000) in the same period of 2018, indicating an increase in cash outflow[49] Accounting Standards - The company adopted the new Hong Kong Financial Reporting Standard 16 (HKFRS 16) for leases effective January 1, 2019, which requires all leases to be capitalized, excluding short-term leases and low-value asset leases[27] - The adoption of HKFRS 16 resulted in a capitalization of operating lease contracts amounting to HKD 516,000, increasing the value of property, plant, and equipment to HKD 3,358,000 as of January 1, 2019[40] - The company has adopted the revised retrospective method for the first application of HKFRS 16, which has impacted the financial results but has not restated comparative figures[61] Business Strategy and Market Position - The group focuses on interior design and contracting services primarily for commercial spaces, including offices and retail shops in Hong Kong[101] - The group plans to focus on expanding its business in the Chinese market and enhancing its ability to seize more commercial opportunities[107] - The group aims to leverage government support for infrastructure projects to benefit from the growing demand for design and renovation services[104] - The group has submitted a new application to transfer its shares from GEM to the main board, believing this will enhance its public investor recognition and liquidity[103] Employee and Management - As of June 30, 2019, the group had 24 employees, an increase from 19 employees as of December 31, 2018, indicating a focus on attracting and retaining high-performing staff[124] - The total remuneration for key management personnel for the six months ended June 30, 2019, was HKD 820,000, a decrease from HKD 839,000 in the previous year[89] Compliance and Governance - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual, Liu Jingwei[143] - The audit committee, consisting of three members, reviewed the interim financial results for the six months ending June 30, 2019, and confirmed compliance with applicable accounting standards[147] - The company has established an audit committee to oversee financial reporting and risk management processes[147]

Financial Performance - For the three months ended March 31, 2019, the group's revenue decreased by approximately 31.2% to about HKD 23.0 million from approximately HKD 33.4 million in the same period last year[5]. - The group's gross profit fell from approximately HKD 11.5 million in the previous year to about HKD 9.0 million in the current period[5]. - Profit attributable to the owners of the company decreased from approximately HKD 7.0 million to about HKD 5.0 million[5]. - The group's other income for the current period was HKD 149,000, down from HKD 63,000 in the previous year[8]. - The pre-tax profit for the current period was HKD 6.5 million, compared to HKD 8.4 million in the previous year[8]. - The basic and diluted earnings per share for the current period were 0.5 HK cents, down from 0.7 HK cents in the previous year[8]. - The total comprehensive income attributable to the owners of the company for the current period was HKD 5.9 million, compared to HKD 7.1 million in the previous year[11]. - The group reported a net profit of approximately HKD 5.0 million, down from HKD 7.0 million in the same period last year, mainly due to a decrease in gross profit[46]. Dividend Policy - The board of directors did not recommend the payment of an interim dividend for the current period, compared to no dividend in the same period last year[5]. - The company did not recommend an interim dividend for the three months ended March 31, 2019[31]. - The board did not recommend the distribution of an interim dividend for the period[47]. Revenue and Cost Analysis - Direct costs for the three months ended March 31, 2019, were HKD 13.99 million, down from HKD 21.92 million in the same period last year[25]. - The overall gross profit margin increased from approximately 34.4% to about 39.1%, primarily due to a higher gross profit margin from renovation projects, which accounted for about 51.9% of total revenue[43]. - General and administrative expenses decreased by approximately 15.0% to about HKD 2.7 million, down from HKD 3.1 million in the previous year[44]. Business Expansion and Strategy - The company has ongoing renovation projects for medical centers and offices, indicating a focus on expanding service offerings in Hong Kong, Macau, and China[35]. - The company plans to reapply for a transfer of its shares from GEM to the main board, which is expected to enhance its public image and liquidity[36]. - The group plans to focus on expanding its business in the Chinese market and enhancing its ability to capture more commercial opportunities[39]. Assets and Liabilities - The group's net current assets as of March 31, 2019, were approximately HKD 105.5 million, including cash and cash equivalents of about HKD 82.9 million[48]. - The group has no outstanding borrowings as of March 31, 2019, indicating no significant debt financing needs during the period[50]. - The group has no significant capital commitments as of March 31, 2019[53]. Corporate Governance - The company has adopted the corporate governance code as per GEM Listing Rules and has complied with most provisions, except for the separation of the roles of Chairman and CEO[65]. - The audit committee, established in November 2016, consists of three members and is responsible for overseeing financial reporting and risk management[68]. - The company has confirmed that all directors complied with the trading rules during the reporting period[66]. - The company has not identified any competing business interests among its directors or major shareholders[63]. Shareholding Structure - The company holds 750,000,000 shares, representing a 75% ownership stake by Sino Emperor Group Limited, which is fully owned by Mr. Liu Jingwei[58]. - Mr. Liu Jingwei's spouse, Ms. Chan Pui Shan, also holds a 75% interest in the company through Sino Emperor[61]. - The company has no other shareholders owning 5% or more of the issued shares apart from those disclosed[62]. Compliance and Reporting - The unaudited consolidated financial statements for the three months ended March 31, 2019, were reviewed and deemed compliant with applicable accounting standards and GEM listing rules[70]. - The report was presented by the Chairman and CEO, Liu Jingwei, on May 10, 2019[71]. - No purchases, sales, or redemptions of the company's listed securities occurred during the three months ending March 31, 2019[67]. - There are no known claims against the company as of the reporting date[56].

Financial Performance - The company achieved revenue of approximately HKD 124.4 million for the year ended December 31, 2018, representing a 39.2% increase from approximately HKD 89.3 million in 2017[10]. - Gross profit increased by approximately 25.9% to about HKD 48.9 million, up from approximately HKD 38.8 million in the previous year[10]. - Profit attributable to shareholders rose to approximately HKD 28.7 million, an increase from about HKD 26.1 million in 2017, primarily driven by higher gross profit from renovation projects[10]. - The company's revenue increased by approximately 39.2% to about HKD 124.4 million, up from HKD 89.3 million in the previous year[33]. - Gross profit rose from approximately HKD 38.8 million to about HKD 48.9 million, representing an increase of around 25.9%[33]. - Shareholders' profit attributable to the company increased from approximately HKD 26.1 million to about HKD 28.7 million[34]. - The overall gross profit for 2018 was approximately HKD 48.9 million, up from HKD 38.8 million in 2017, marking a growth of about 25.9%[47]. - The annual profit for 2018 was approximately HKD 28.7 million, up from HKD 26.1 million in 2017, mainly due to increased gross profit from renovation projects[53]. Dividends - The company proposed a final dividend of HKD 0.25 per share for the year, compared to HKD 0.20 per share in 2017[11]. - The proposed final dividend for the year is HKD 0.25 per share, totaling HKD 2.5 million, an increase from HKD 2 million in 2017[54]. - The group proposed a final dividend of HKD 0.25 per share for the year ended December 31, 2018, compared to HKD 0.20 per share in 2017, amounting to a total of HKD 2.5 million[87]. Business Strategy and Development - The company has submitted an application to transfer from GEM to the Main Board to enhance business development and create long-term value for shareholders[12]. - The company anticipates increased demand for healthcare facilities due to an aging population in Hong Kong, focusing on design and renovation projects in the medical sector[12]. - The company plans to allocate more resources to develop its commercial interior design and renovation business to maximize long-term returns for shareholders[12]. - The company aims to expand its market presence and enhance its service offerings through strategic management and project execution[15]. - The company is optimistic about the future of the interior design and renovation market, particularly in commercial spaces, due to strong government support for infrastructure projects[37]. - The company plans to establish an international team and expand its Hong Kong office to optimize its facilities[37]. - The company intends to expand its capacity to capture more business opportunities[37]. - The company will explore new business opportunities leveraging its industry experience to maximize long-term returns for shareholders[37]. Operational Insights - K W Nelson Interior Design and Contracting Group Limited was established in February 2009, aiming to better position and promote its business in the industry[15]. - The company has over 30 years of experience in the interior design and contracting industry, with key personnel having extensive backgrounds in project management and design[15]. - The design director has approximately 22 years of experience in interior design, contributing to the operational oversight of the company's projects[18]. - The company has a strong focus on three-dimensional interior design, with team members possessing around 15 years of experience in this area[19]. - K W Nelson has a history of managing various projects, ensuring quality and timely delivery to clients[15]. - The company has established a solid foundation for future growth by leveraging the expertise of its management team[15]. - The company is committed to continuous improvement and innovation in its design and contracting services[15]. Financial Management - General and administrative expenses increased by 92.2% from approximately HKD 7.7 million in 2017 to about HKD 14.8 million in 2018, primarily due to rising employee and marketing costs[50]. - The gross profit margin decreased from 43.5% in 2017 to 39.3% in 2018[49]. - The gross profit margin for the design and renovation projects remained stable at around 40.2% in 2018 compared to 41.4% in 2017[48]. - The gross profit from renovation projects increased significantly by approximately HKD 24.1 million in 2018[47]. - The group reported a net current asset value of approximately HKD 107.7 million as of December 31, 2018, compared to HKD 83.4 million in 2017, with cash and cash equivalents of about HKD 69.1 million[74]. - The current ratio as of December 31, 2018, was approximately 4.3 times, down from 6.6 times in 2017, primarily due to an increase in trade and other payables by about HKD 16.3 million[74]. - The group maintained a zero debt ratio as of December 31, 2018, indicating no significant liabilities[74]. - The group has adopted prudent financial management measures to maintain a healthy liquidity position throughout the year[78]. Client and Market Risks - The company relies on its five largest clients for over 50% of total revenue, indicating a significant risk if relationships with these clients deteriorate[91]. - The largest client accounts for 31.4% of total sales, while the top five clients together represent 64.1% of sales[113]. - The company does not have long-term contracts with its clients, which poses a risk to its business operations and financial performance if clients choose not to engage the company in the future[91]. - The company’s reliance on subcontractors for interior renovation projects without long-term agreements increases the risk of project delays and financial losses[92]. - The company’s major service costs are related to subcontractor expenses, and unexpected increases in these costs could adversely affect financial performance[92]. Corporate Governance - The company has maintained compliance with corporate governance practices as per GEM Listing Rules, with a commitment to continuous improvement[148]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring proper governance structure[149]. - The independent non-executive directors have confirmed their independence in accordance with GEM Listing Rules[119]. - The company has established a code of conduct for securities trading by directors, ensuring adherence to regulations during the financial performance announcement period[138]. - The board is responsible for maintaining effective risk management and internal control systems, which are reviewed at least annually[180]. - The risk management team conducts quarterly risk identification and analysis, assessing the consequences and likelihood of risks[182]. - The internal control policy covers various operational aspects, including financial reporting and project pricing, and is reviewed at least once a year[181]. - The company has established procedures for handling and disclosing inside information, ensuring compliance with applicable laws and regulations[183]. Audit and Compliance - The audit committee reviewed the accounting principles and practices adopted by the group, with no objections from the external auditor[144]. - The financial statements for the year were audited by KPMG, who will be proposed for reappointment at the annual general meeting[145]. - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2018, and its performance for the year then ended[196]. - The independent auditor's report highlighted key audit matters that were deemed most important in the audit of the consolidated financial statements[198]. - The audit identified revenue recognition as a critical audit matter due to its significance in the group's financial performance[200]. Shareholder Communication - The company has established a shareholder communication policy to facilitate timely access to comprehensive and understandable information for shareholders and potential investors[187]. - The company held one annual general meeting during the year ended December 31, 2018, to enhance investor relations and communication with existing and potential investors[188]. - Shareholders can request a special general meeting if they hold at least 10% of the issued share capital, with specific procedures outlined for such requests[191].