Financial Performance - For the nine months ended May 31, 2019, ECI Technology Holdings Limited reported revenue of approximately HKD 73,666,000, an increase of 6.4% compared to HKD 69,232,000 for the same period in 2018[9]. - The gross profit for the same period was approximately HKD 23,636,000, representing a 14.5% increase from HKD 20,638,000 in the previous year[9]. - The total profit and comprehensive income for the nine months was approximately HKD 3,872,000, up 28.6% from HKD 3,010,000 in 2018[9]. - The operating profit for the nine months was HKD 5,429,000, which is a 23.8% increase from HKD 4,382,000 in the previous year[12]. - The net profit for the three months ended May 31, 2019, was HKD 576,000, compared to HKD 236,000 for the same period in 2018, marking a significant increase[12]. - The basic and diluted earnings per share for the nine months were HKD 0.242, compared to HKD 0.188 in the previous year, reflecting a 28.7% increase[13]. - The company reported a profit of HKD 4,160,000 during the period, contributing to an overall increase in retained earnings to HKD 12,942,000[15]. - The profit attributable to the company's owners increased to approximately HKD 3,872,000 from about HKD 3,010,000, driven by the increase in completed installation projects[87]. Revenue Sources - Installation services generated revenue of HKD 39,846,000 for the nine months ended May 31, 2019, compared to HKD 33,990,000 for the same period in 2018, reflecting a growth of approximately 17.0%[63]. - Maintenance services revenue was HKD 33,535,000 for the nine months ended May 31, 2019, down from HKD 35,242,000 in the previous year, indicating a decrease of about 4.8%[63]. - The company has secured a three-year maintenance contract related to the Hong Kong-Zhuhai-Macao Bridge, valued at approximately HKD 40.0 million, which commenced in June 2019[73]. - The company has diversified its business by starting to provide security guard services, which are expected to become a major business segment in the future[75]. - The company has become an authorized distributor for a European parking system supplier, allowing it to expand its customer base with new technology[72]. Expenses and Costs - Administrative expenses for the nine months were HKD 18,631,000, an increase from HKD 16,338,000 in the previous year, indicating a rise in operational costs[12]. - Employee costs totaled approximately HKD 36,413,000 for the nine months ended May 31, 2019, compared to HKD 32,950,000 for the same period in 2018, reflecting an increase of about 10.9%[68]. - The cost of sales rose by about 2.96% from approximately HKD 48,594,000 to about HKD 50,030,000, consistent with the revenue increase[83]. - Gross profit increased by approximately 14.53% from about HKD 20,638,000 to approximately HKD 23,636,000 for the same period[83]. - Administrative expenses rose by approximately 14.03% from about HKD 16,338,000 to approximately HKD 18,631,000, mainly due to increased rental and depreciation costs[84]. Financial Position - As of May 31, 2019, total equity attributable to owners reached HKD 55,142,000, up from HKD 53,824,000 as of May 31, 2018, reflecting a growth of approximately 2.4%[15]. - The company applied new and revised Hong Kong Financial Reporting Standards, including HKFRS 9 on financial instruments and HKFRS 15 on revenue from contracts with customers, effective from January 1, 2018[26]. - The company recognized an additional impairment provision of approximately HKD 547,000 for trade receivables and HKD 121,000 for contract assets, resulting in a decrease of retained earnings by approximately HKD 668,000 as of September 1, 2018[50]. - The company has not restated comparative information due to the transition to the new standard, which may affect comparability[31]. Corporate Governance - The company has adopted the corporate governance code as per GEM listing rules, ensuring effective accountability and management structure[113]. - The audit committee, consisting of four independent non-executive directors, has reviewed the financial statements for the nine months ending May 31, 2019[120]. - The company has established an audit committee in accordance with GEM listing rules to oversee financial reporting and internal controls[118]. - The chairman and CEO roles are held by the same individual, which the board believes is beneficial for the company's operations[113]. - The company has not engaged in any business that constitutes or may constitute competition with its group business during the reporting period[112]. Future Plans and Investments - The group plans to invest in developing internal capabilities and collaborate with business partners to provide integrated ELV solutions and security services[81]. - The group aims to address the increasing demand for security services by offering reliable and flexible facility management services to residential and corporate clients[79]. - The group will establish a training center to train security personnel, addressing the labor shortage in the security industry[79]. - The group established a wholly-owned subsidiary in the People's Republic of China with an estimated investment cost of HKD 10 million, which is not yet operational[89]. - The group acquired a 20% stake in Spark Technology Group Limited through the subscription of new shares during the period[90]. Listing Proceeds and Utilization - The net proceeds from the listing amounted to approximately HKD 31,500,000, with HKD 15,900,000 utilized as of May 31, 2019[98]. - The budgeted amount for providing installment payment options to customers was HKD 12.0 million, of which HKD 1.6 million has been utilized, leaving HKD 10.4 million unutilized[98]. - For expanding existing ELV solutions, HKD 4.4 million was budgeted, with only HKD 0.3 million utilized, resulting in HKD 4.1 million remaining[98]. - A one-time repayment of bank loans to reduce the debt ratio accounted for HKD 8.0 million, fully utilized[98]. - The acquisition of five commercial vehicles and two streetlight vehicles was budgeted at HKD 3.0 million, fully utilized[98]. - Development of a new mobile application for customer service orders had a budget of HKD 1.5 million, with HKD 0.4 million utilized, leaving HKD 1.1 million unutilized[98]. - Operational funds and other corporate development were budgeted at HKD 2.6 million, fully utilized[98]. - As of May 31, 2019, the total unutilized amount from the listing proceeds was HKD 15.6 million[98]. Shareholder Information - The major shareholders include ECI Asia Investment Limited holding 55% and Yang Shuo holding 20% of the shares[102][106]. - The controlling shareholder has confirmed compliance with the non-competition agreement since the listing date up to the report date[112]. - The company has not granted any share options under the share option scheme as of May 31, 2019[100].
ECI TECH(08013) - 2019 Q3 - 季度财报