Financial Performance - For the three months ended January 31, 2019, revenue was HKD 23,413,000, a decrease of 26% compared to HKD 31,723,000 for the same period in 2018[4] - Profit attributable to owners of the company for the same period was HKD 255,000, down from HKD 894,000 in the previous year[4] - Basic earnings per share for the quarter were approximately HKD 0.04, compared to HKD 0.14 for the same period last year[5] - Gross profit for the quarter was HKD 8,111,000, slightly down from HKD 8,466,000 in the previous year[6] - Operating profit for the quarter was HKD 1,315,000, compared to HKD 1,693,000 in the same period last year[6] - Total comprehensive income for the period was HKD 2,394,000, an increase from HKD 2,007,000 in the previous year[7] - The gross profit for the same period was HKD 8,111,000, down 4% from HKD 8,466,000 in the previous year, resulting in a gross margin of 35%, up from 27% year-on-year[30] - The tax provision for Hong Kong was HKD 27,000 for the three months ended January 31, 2019, compared to HKD 87,000 in 2018[25] Expenses - The company’s financing costs were HKD 129,000, slightly up from HKD 126,000 in the previous year[6] - The company’s administrative expenses increased to HKD 6,339,000 from HKD 5,792,000 in the previous year[6] - For the three months ended January 31, 2019, the group's administrative expenses were HKD 6,339,000, an increase of 9% compared to HKD 5,792,000 for the same period last year[31] - The group's selling expenses for the three months ended January 31, 2019, were HKD 1,258,000, reflecting a 20% increase from HKD 1,046,000 in the same period last year, primarily due to increased travel expenses[31] Shareholder Information - As of January 31, 2019, Virtue Trustees (Switzerland) AG and Wide Sky Management Limited each held 344,621,200 shares, representing 53.06% of the issued share capital[35] - Dr. Pak Kwok Ping held 44,224,000 shares, accounting for 6.81% of the issued share capital as of January 31, 2019[35] - Mr. Lee Wai Man owned 35,620,000 shares, which is 5.48% of the issued share capital as of January 31, 2019[35] Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules Appendix 15 during the three months ended January 31, 2019[39] - There were no reported conflicts of interest or competition with the group's business from directors or major shareholders during the three months ended January 31, 2019[40] - The audit committee reviewed the unaudited results for the three months ended January 31, 2019, and confirmed compliance with applicable accounting standards[44] Accounting Standards - The company adopted Hong Kong Financial Reporting Standard No. 15 on November 1, 2018, establishing a single revenue recognition framework[11] - The implementation of HKFRS 15 did not have a significant impact on the company's revenue recognition[11] - The company applied HKFRS 9, which introduced classification and measurement of financial assets and liabilities, as well as expected credit loss provisions[14] - The expected credit loss model requires the company to recognize loss allowances for financial assets, including trade receivables and bank balances[17] - The company has chosen to use the simplified approach for measuring expected credit losses on trade receivables, calculating losses based on the lifetime expected credit losses[17] - The assessment of significant increases in credit risk is based on a comparison of default risk at the reporting date with that at initial recognition[18] - The company considers various qualitative and quantitative data, including historical experience and forward-looking information, in assessing credit risk[19] - The company has not recognized any contract liabilities during the transition period[13] - The financial assets are classified based on the business model for managing the assets and the contractual cash flow characteristics[15] - The company confirmed that there were no contract assets recognized during the transition period and at the reporting date[13] Market Conditions - Sales of industrial environmental products decreased significantly due to the adverse market conditions stemming from the US-China trade war[30] - The Tianjin water plant has exclusive rights to supply processed tap water to Baodi District and surrounding areas, which is expected to benefit from the development of new intercity railways[28] - The company will continue to seek new products or services that align with China's energy-saving and emission-reduction policies[28] Other Information - The company did not recommend any interim dividends for the three months ended January 31, 2019, and 2018[26] - The weighted average number of ordinary shares in issue was 649,540,000 for both periods under review[27] - The company did not purchase or sell any of its listed securities during the three months ended January 31, 2019[37]
环康集团(08169) - 2019 Q1 - 季度财报