Financial Performance - The Group's revenue for the three months ended June 30, 2019, was approximately HK$51.8 million, a decrease of approximately HK$5.3 million or 9.3% compared to HK$57.1 million for the same period in 2018[19] - The gross profit for the same period was approximately HK$15.4 million, down from approximately HK$18.1 million in 2018[19] - The net profit for the three months ended June 30, 2019, was approximately HK$5.1 million, compared to a net profit of approximately HK$6.5 million in 2018[20] - Revenue for the three months ended June 30, 2019, was HK$51,784,000, a decrease of 9.9% from HK$57,087,000 in the same period of 2018[24] - Gross profit for the period was HK$15,360,000, down 15.0% from HK$18,071,000 year-over-year[24] - Profit before taxation decreased to HK$5,838,000, a decline of 27.4% compared to HK$8,029,000 in the previous year[24] - Profit for the period attributable to owners of the Company was HK$5,141,000, down 20.7% from HK$6,483,000 in the same period of 2018[24] - Basic earnings per share for the period was 1.29 HK cents, a decrease from 1.62 HK cents in the prior year[24] - The financial highlights indicate a trend of declining revenue and profit margins, suggesting potential challenges in market performance[19][20] Dividend Policy - The Board does not recommend the payment of an interim dividend for the three months ended June 30, 2019, consistent with the previous year[20] - The Group does not recommend an interim dividend for the three months ended June 30, 2019[45] - The Board does not recommend an interim dividend for the three months ended June 30, 2019[72] Operational Insights - The Group's performance reflects a need for strategic reassessment to address the revenue decline and improve profitability moving forward[19][20] - The Group's operational strategies may require adjustments to enhance market competitiveness and drive future growth[19][20] - The Group's operations are solely derived from E&M engineering solutions and services, focusing on automatic fare collection systems, electronic payment systems, and traffic control systems[39] - The Group's revenue is generated from a full spectrum of services including design, equipment assembly, supply, installation, and maintenance support[56] - The E&M Engineering Solutions and Services segment accounted for approximately 81.6% of total revenue for the three months ended June 30, 2019[61] - Revenue from E&M engineering solutions and services was HK$42,215,000, a decrease of 13.1% from HK$48,557,000 in the same period of 2018[38] - Revenue from E&M engineering maintenance services increased to HK$8,565,000, up 21.4% from HK$7,057,000 year-over-year[38] - The Group submitted 73 tenders and quotations, with 35 contracts awarded, including subcontracts totaling approximately HK$22.5 million for CCTV system replacements[62] Governance and Compliance - The report is prepared in compliance with the GEM Listing Rules, affirming the commitment to accurate and complete financial reporting[5] - The financial statements for the three months ended June 30, 2019, have not been audited but were reviewed by the Company's audit committee[35] - The Audit Committee reviewed the unaudited condensed consolidated results for the three months ended June 30, 2019, and confirmed compliance with applicable accounting standards[83] - The company has adopted the corporate governance code as per GEM Listing Rules and complied with all applicable provisions as of June 30, 2019[84] - The compliance adviser, Kingsway Capital, has no interest in the share capital of the company or its subsidiaries[89] - The company confirmed that all directors complied with the trading standards as required by GEM Listing Rules during the reporting period[85] Shareholding Structure - As of June 30, 2019, Mr. Luk Kam Ming holds 162,000,000 shares, representing approximately 40.5% of the company's shareholding[96] - Mr. Luk Kwai Lung has an interest in a controlled corporation with 138,000,000 shares, accounting for approximately 34.5% of the company's shareholding[96] - Mr. Luk Yin Cheung holds 138,600,000 shares, which is about 34.7% of the company's shareholding[96] - Mr. Chan Chak Lun Philip is a beneficial owner of 4,000,000 shares, representing approximately 1.0% of the company's shareholding[96] - The shareholding structure indicates significant family interests, with multiple individuals holding substantial shares through spousal interests[106] - The company continues to maintain a robust governance structure regarding share ownership and options[107] Share Option Scheme - The share option scheme was approved on September 20, 2017, to recognize contributions from directors and employees[107] - The company granted a total of 9,200,000 share options under the Share Option Scheme on September 3, 2018, with approximately 48.9% vested by March 3, 2019, and 51.1% expected to vest by March 3, 2020[109] - The exercise price of the options granted is HK$0.385 per share, with the closing price immediately before the date of grant being HK$0.35 per share[111] - As of June 30, 2019, all 9,200,000 options granted remained outstanding, with no options exercised, cancelled, or lapsed during the three months ended[116] - The company adopted a Share Award Scheme on November 5, 2018, which is valid for 15 years, but no awarded shares were granted, vested, or forfeited during the three months ended June 30, 2019[117] Taxation - Current tax expense for the three months ended June 30, 2019, was HK$220,000, significantly lower than HK$1,235,000 in 2018, reflecting a decrease of 82.2%[43] - Deferred tax expense increased to HK$477,000 in 2019 from HK$311,000 in 2018, representing a rise of 53.5%[43] Market Conditions - The Group does not foresee significant impacts from recent economic, social, or political conditions in Hong Kong on its performance[64] Other Information - There were no subsequent events reported after the reporting period[54] - The Group's operations are concentrated in a single operating segment with no further analysis presented[39] - The company did not purchase, sell, or redeem any of its listed securities during the three months ended June 30, 2019[88] - No changes to directors' information were required to be disclosed as of the report date[87] - The company has not identified any other persons with interests or short positions in shares that require disclosure as of June 30, 2019[104] - None of the Directors or controlling Shareholders had interests in any competing business during the same period[121] - The Company did not disclose any significant financial performance metrics or user data in the provided documents[124]
高萌科技(08065) - 2020 Q1 - 季度财报