Financial Performance - The Group's revenue increased to approximately HK$30.4 million, representing a growth of 6.3% compared to HK$28.6 million for the same period in 2019[9]. - The gross profit rose by 71.9% from approximately HK$6.3 million in the three months ended June 30, 2019, to approximately HK$10.9 million for the same period in 2020, with a gross profit margin increase from 22.1% to 35.8%[10]. - The profit for the period surged from approximately HK$306,000 in 2019 to approximately HK$4.8 million in 2020[11]. - Operating profit increased significantly to HK$5.5 million from HK$420,884 in the previous year[16]. - The profit before income tax rose to HK$5.4 million compared to HK$338,206 in the same period last year[16]. - The Group reported a net profit of HK$4.7 million attributable to owners of the Company, up from HK$325,441 in the prior year[19]. - Basic and diluted earnings per share increased to 0.78 HK cents from 0.05 HK cents in the prior year[19]. - The profit for the period was HK$4,704,873, representing a significant increase compared to the previous period[22]. - Total comprehensive income for the period was HK$4,704,940, reflecting a strong performance[22]. Revenue Breakdown - Revenue for the three months ended June 30, 2020, was HK$30,387,761, an increase of 6.3% compared to HK$28,595,381 for the same period in 2019[34]. - Revenue from customers located in Hong Kong was HK$27,669,588 for the three months ended June 30, 2020, compared to HK$25,139,384 in 2019, reflecting a growth of 10.1%[37]. - Revenue from customers in Macau decreased to HK$2,718,173 in 2020 from HK$3,455,997 in 2019, a decline of 21.4%[37]. Expenses and Costs - General and administrative expenses decreased to HK$4.99 million from HK$5.14 million in the previous year[16]. - Cost of materials used decreased to HK$10,650,746 in 2020 from HK$12,468,885 in 2019, a reduction of 14.6%[50]. - Subcontractor costs also decreased to HK$7,069,927 in 2020 from HK$8,692,935 in 2019, a decline of 18.6%[50]. - Impairment loss on trade and retention receivables and contract assets decreased from approximately HK$768,000 for the three months ended June 30, 2019, to approximately HK$447,000 for the same period in 2020[63]. - Income tax expense increased to approximately HK$643,000 for the three months ended June 30, 2020, from approximately HK$33,000 in 2019[68]. Dividends and Shareholder Information - The Board does not recommend the payment of an interim dividend for the three months ended June 30, 2020, consistent with the previous year[11]. - The Group did not recommend the payment of dividends for the three months ended June 30, 2020, consistent with the previous year[41]. - As of June 30, 2020, Mr. Kwong held a long position of 386,016,000 shares in the Company, representing approximately 64.34% of the shareholding[83]. - Sage City Investments Limited, beneficially owned by Mr. Kwong (70%) and Mr. Yip (30%), holds 64.34% of the Company's shares[94]. Corporate Governance and Compliance - The company has complied with the principles and applicable code provisions of the Corporate Governance Code for the three months ended June 30, 2020[101]. - The company established an audit committee on September 24, 2016, to oversee internal control and risk management systems[113]. - The company has adopted the Code of Conduct for securities transactions by directors, confirming compliance by all directors for the three months ended June 30, 2020[104]. - The Audit Committee has reviewed the unaudited condensed consolidated financial results for the three months ended June 30, 2020[114]. Future Outlook and Strategy - The Group plans to explore new opportunities for business diversification and keep track of new construction and refurbishment projects in the car park flooring market in Hong Kong and Macau[76]. - The Group aims to expand its ancillary services, including specialized texture painting and waterproofing works, to strengthen its market position[76]. - The future outlook indicates that market and economic conditions will continue to impact the property market development and construction schedules of main contractors[70]. - The Group will implement measures to control operational costs, including labor and material costs, as well as general and administrative expenses[76]. - The Group maintained a healthy liquidity position throughout the reporting period, with the Board closely monitoring liquidity risks to meet funding requirements[78]. Financial Position - The balance at 30 June 2020 showed total assets of HK$89,790,814, indicating growth from previous periods[22]. - The company reported retained earnings of HK$22,508,488 as of 30 June 2020, demonstrating financial stability[22]. - As of June 30, 2020, there were no significant contingent liabilities reported by the Group[78]. - The financial information for the three months ended 30 June 2020 was prepared in accordance with HKFRSs, ensuring compliance with accounting standards[29]. - The company did not apply any new or revised HKFRSs that have been issued but are not yet effective, maintaining consistency in accounting policies[28]. Company Background - The company is primarily engaged in providing engineering services in flooring, screeding, anti-skid surfacing, and waterproofing works, indicating a focus on construction-related sectors[25]. - The company listed its shares on GEM of The Stock Exchange of Hong Kong Limited on 13 October 2016, enhancing its market presence[25]. - The company is registered in the Cayman Islands with limited liability[119]. - The executive directors as of the report date include Mr. Kwong Chi Man, Mr. Yip Kong Lok, and Mr. Yip Wai Man[117].
邝文记(08023) - 2021 Q1 - 季度财报