Financial Performance - The Group's revenue for the three months ended June 30, 2020, was approximately HK$63.1 million, representing an increase of approximately HK$11.3 million or approximately 21.8% compared to HK$51.8 million for the same period in 2019[19]. - The gross profit for the same period was approximately HK$14.1 million, down from approximately HK$15.4 million in 2019[19]. - The net profit for the three months ended June 30, 2020, amounted to approximately HK$5.3 million, compared to approximately HK$5.1 million in 2019[20]. - Revenue for the three months ended June 30, 2020, was HK$63,095,000, representing a 21.9% increase from HK$51,784,000 in the same period of 2019[24]. - Gross profit decreased to HK$14,116,000, down 8.1% from HK$15,360,000 year-over-year[24]. - Profit before tax increased to HK$6,121,000, up 4.8% from HK$5,838,000 in the previous year[24]. - Profit attributable to owners of the Company for the period was HK$5,257,000, a slight increase from HK$5,141,000 in the same period of 2019[24]. - Basic and diluted earnings per share remained stable at HK1.33 cents, compared to HK1.29 cents in the previous year[24]. - Administrative expenses decreased to HK$8,561,000, down 13.1% from HK$9,855,000 year-over-year[24]. - The Group recognized approximately HK$45,000 in profit due to rent concessions related to the COVID-19 pandemic[35]. - Total equity as of June 30, 2020, was HK$171,606,000, an increase from HK$166,186,000 at the beginning of the period[26]. Dividend Policy - The Board does not recommend a payment of an interim dividend for the three months ended June 30, 2020, consistent with the previous year[20]. - The Group did not declare any interim dividend for the three months ended June 30, 2020, consistent with the previous year[53]. Compliance and Governance - The report emphasizes the importance of careful consideration for investors due to the higher risks associated with companies listed on GEM[2]. - The Group's management is committed to maintaining transparency and accuracy in financial reporting, as confirmed by the Directors[5]. - The financial results are available on the Company's website, ensuring accessibility for stakeholders[6]. - The report adheres to the GEM Listing Rules, highlighting the Group's compliance with regulatory standards[8]. - The Group complied with all applicable code provisions of the Corporate Governance Code during the three months ended June 30, 2020[93]. Business Operations - The principal activity of the Company is investment holding, with subsidiaries providing electrical and mechanical engineering solutions and services[29]. - Revenue from E&M engineering solutions and services was HK$52,531,000, up 24.4% from HK$42,215,000 in 2019[41]. - The Group operates in a single segment focused on E&M engineering solutions and services, with no separate analysis presented[44]. - The Group expects continued revenue growth from E&M engineering segments, particularly in renovation and replacement projects for E&M, communication, and automatic fare collection assets[69]. - KML Engineering was admitted to the List of Approved Suppliers for Public Works in the category of Video Electronics Installation, aiming to expand its market portfolio[73]. - The Group plans to expedite research and development in 5G technologies, focusing on smart maintenance applications to reduce machine downtime and improve product quality[74]. Share Options and Awards - The Company granted 9,800,000 share options to eligible participants under the Share Option Scheme on January 2, 2020[122]. - The maximum number of shares for options under the Share Option Scheme is capped at 40,000,000 shares, representing 10% of the total shares issued as of the report date[121]. - The total number of shares issued and to be issued upon exercise of options granted to any participant in any 12-month period shall not exceed 1% of the shares in issue[121]. - An option must be accepted within three business days from the date of offer, with a payment of HK$10 upon acceptance[124]. - The subscription price for shares under any option shall not be less than the highest of the closing price on the date of grant, the average closing price for the preceding five business days, or the nominal value of a share[124]. - The Share Option Scheme will remain in force for 10 years from the Listing Date unless terminated earlier by shareholders[124]. - Among the options granted, 2,000,000 were awarded to a Director of the Company, 700,000 to a director of a subsidiary, and 300,000 to an associate of a Director[122]. - The options granted are subject to acceptance by the Grantees to become effective[123]. - The Company aims to recognize contributions made by directors and employees through the Share Option Scheme[119]. - The options can be exercised within a period determined by the Board, not exceeding 10 years from the date of grant[121]. - 800,000 Awarded Shares were granted to an employee, representing approximately 0.2% of the total shares in issue, with a market value of approximately HK$176,000 based on a closing price of HK$0.22 per share[131]. - As of June 30, 2020, a total of 9,800,000 options were outstanding, with no options exercised, cancelled, or lapsed during the three months ended June 30, 2020[128]. - The exercise price for the options granted was HK$0.259, while the closing price before the grant date was HK$0.25[126]. - The Share Award Scheme adopted on November 5, 2018, is valid for 15 years, subject to early termination by the Board[130]. Shareholding Structure - As of June 30, 2020, Mr. KM Luk holds 157,000,000 shares, representing approximately 39.25% of the company's shareholding[107]. - Mr. KL Luk and Mr. YC Luk each have an interest in a controlled corporation, KML Holdings, which holds 138,000,000 shares, accounting for about 34.50% of the company's shareholding[107]. - Mr. YC Luk is deemed to be interested in an additional 600,000 shares due to his spouse's interest, bringing his total deemed interest to 138,600,000 shares, or approximately 34.65%[110]. - Mr. CL Chan directly holds 4,000,000 shares, which is about 1.00% of the company's shareholding[107]. - KML Holdings is recorded as a beneficial owner of 138,000,000 shares, representing approximately 34.50% of the company's shareholding[113]. - Madam Leung, as a beneficial owner and spouse of Mr. KM Luk, holds 157,000,000 shares, equating to approximately 39.25% of the company's shareholding[113]. - Ms. Chan Patricia holds an interest in 138,000,000 shares as a spouse, which is about 34.50% of the company's shareholding[113]. - Madam Woo, as a beneficial owner and spouse, has an interest in 138,600,000 shares, representing approximately 34.65% of the company's shareholding[113]. - No other directors or chief executives had any interests or short positions in the shares as of June 30, 2020[108]. - The company is not aware of any other persons with interests or short positions that require disclosure under the relevant provisions of the SFO[116].
高萌科技(08065) - 2021 Q1 - 季度财报