Financial Performance - For the three months ended January 31, 2021, the revenue was HKD 38,963,000, a decrease of 2.6% from HKD 40,002,000 in the same period of 2020[3] - The gross profit for the nine months ended January 31, 2021, was HKD 46,927,000, slightly up from HKD 46,820,000 in the same period of 2020, indicating a stable performance[3] - The profit before tax for the three months ended January 31, 2021, was HKD 25,170,000, compared to a loss of HKD 6,301,000 in the same period of 2020, showing a significant turnaround[3] - The net profit attributable to owners for the three months ended January 31, 2021, was HKD 24,647,000, compared to a loss of HKD 6,629,000 in the same period of 2020[5] - The basic and diluted earnings per share for the three months ended January 31, 2021, were HKD 0.164, compared to a loss of HKD 0.056 in the same period of 2020[5] - The total comprehensive income for the three months ended January 31, 2021, was HKD 20,991,000, compared to a loss of HKD 9,269,000 in the same period of 2020[7] - For the nine months ended January 31, 2021, the company's revenue was approximately HKD 102,400,000, a decrease of about 9.4% compared to HKD 113,000,000 for the same period in 2020[38] - The net loss attributable to the company's owners from continuing operations for the nine months ended January 31, 2021, was approximately HKD 21,100,000, compared to HKD 13,700,000 for the same period in 2020[38] - Revenue decreased by approximately 9.4% compared to the same period last fiscal year[56] Income and Expenses - The company reported other income of HKD 5,237,000 for the nine months ended January 31, 2021, significantly higher than HKD 1,878,000 in the same period of 2020[3] - The financing costs for the nine months ended January 31, 2021, were HKD 6,817,000, a slight decrease from HKD 6,892,000 in the same period of 2020[3] - The company’s operational and administrative expenses for the nine months ended January 31, 2021, were HKD 5,271,000, an increase from HKD 4,614,000 for the same period in 2020[34] - Operating and administrative expenses increased from approximately HKD 32,100,000 to about HKD 33,000,000, similar to the same period in 2020[56] - The company recognized government subsidies of approximately HKD 4,100,000 during the reporting period[38] Revenue Sources - Revenue from customer contracts for construction and related services was HKD 25,564 thousand for the three months ended January 31, 2021, a decrease of 8.4% compared to HKD 27,889 thousand in the same period of 2020[16] - Total revenue from continuing operations for the three months ended January 31, 2021, was HKD 38,963 thousand, down 2.6% from HKD 40,002 thousand in the same period of 2020[16] - Interest income for the three months ended January 31, 2021, increased to HKD 12,813 thousand from HKD 11,752 thousand in the same period of 2020, representing a growth of 9.0%[16] - Rental income for the three months ended January 31, 2021, was HKD 324 thousand, significantly higher than HKD 144 thousand in the same period of 2020, marking a growth of 125.0%[17] - The lending business recorded revenue of approximately HKD 37,700,000, an increase from HKD 33,400,000 in the same period last year, with loan principal amounts ranging from HKD 200,000 to HKD 25,000,000 and interest rates between 7.5% and 18%[44] - The investment portfolio generated a net income of approximately HKD 2,700,000, a recovery from a net loss of approximately HKD 17,700,000 in the same period in 2019, primarily due to a rise in the Hong Kong stock market[45] - The asset management business recorded revenue of approximately HKD 1,400,000, remaining stable compared to the same period in 2020[46] Sales and Subsidiaries - The company completed the sale of two wholly-owned subsidiaries for a cash consideration of HKD 7,000,000 plus the net asset value of the subsidiaries at completion[28] - The company reported a gain from the sale of subsidiaries amounting to HKD 13,767,000 for the nine months ended January 31, 2021[33] - The sale of subsidiaries related to securities brokerage and margin financing has been completed, resulting in a reclassification of the associated revenue and performance as discontinued operations[49] Challenges and Market Conditions - The scaffolding services segment generated revenue of approximately HKD 63,400,000, a significant decrease of about HKD 5,400,000 compared to the same period in 2020 due to COVID-19 restrictions[39] - The group faced increased labor costs and decreased profit margins due to a shortage of skilled workers in the scaffolding industry, intensifying competition[40] - The COVID-19 pandemic led to a decrease in approved new construction projects and contracts, further exacerbating competition in the construction industry[50] Strategic Plans and Governance - The company is reviewing its asset structure and business strategy to adapt to future uncertainties[54] - The company plans to focus on high-margin and growth potential business segments, such as lending services[54] - The company will actively explore suitable investment opportunities to diversify its business scope[54] - The company plans to hold a special general meeting to seek independent shareholder approval for the sale of its subsidiary, which is still pending[36] - The company has not conducted any significant acquisitions or disposals of subsidiaries or associates in the nine months ending January 31, 2021[61] Corporate Governance - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing the company's annual and interim reports[82] - The company has complied with the corporate governance code, with a noted deviation regarding the chairman's meetings with non-executive directors[81] - The company has adopted the GEM Listing Rules regarding the code of conduct for securities transactions by directors, with no known violations reported[77] - The company has maintained the required public float as per GEM Listing Rules as of the report date[80] Shareholder Information - Shareholder equity as of January 31, 2021, was approximately HKD 512,100,000, down from HKD 537,600,000 on April 30, 2020[57] - The company granted a total of 143,671,010 share options to executive director Yuen Chun Fai, which expired on the termination date of his employment[65] - There are no provisions for preemptive rights in the company's articles of association or Bermuda law, meaning existing shareholders are not entitled to new shares on a pro-rata basis[66] - As of January 31, 2021, the company’s directors and senior management held a total of 3,320,000 shares, representing approximately 0.05% of the issued share capital[70] - The company did not purchase, sell, or redeem any of its listed securities during the nine-month period ending January 31, 2021[76]
汇隆控股(08021) - 2021 Q3 - 季度财报