港深智能管理(08181) - 2020 Q3 - 季度财报

Financial Performance UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME The Group's revenue increased by 14.2% to HKD 361.8 million, but profit for the period significantly declined by 72.5% to HKD 6.25 million, with basic EPS also decreasing Key Financial Data for Q3 2019/20 (Nine Months Ended December 31, 2019) | Metric | 2019 (HKD '000) | 2018 (HKD '000) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 361,804 | 316,748 | +14.2% | | Gross Profit | 81,690 | 74,302 | +9.9% | | Profit before tax | 12,611 | 28,184 | -55.3% | | Profit for the period | 6,251 | 22,713 | -72.5% | | Profit attributable to owners of the Company | 6,236 | 19,485 | -68.0% | | Basic EPS | 0.61 HK Cents | 2.21 HK Cents | -72.4% | | Total Equity at Period-End | 292,111 | 259,698 | +12.5% | Notes to Financial Statements 3. REVENUE ANALYSIS Group revenue is primarily from property management and related services, with Hong Kong contributing 90% and mainland China revenue doubling, while consulting services declined Revenue by Business Type and Region (Nine Months Ended December 31) | Revenue Source | 2019 (HKD '000) | 2018 (HKD '000) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | By Business Type | | | | | Property Management Services | 324,964 | 279,823 | +16.1% | | Standalone Security Services | 24,776 | 22,781 | +8.8% | | Property Management Consultancy Services | 10,199 | 12,915 | -21.0% | | Investment Property Rental Income | 1,187 | 1,081 | +9.8% | | Money Lending Business Loan Interest Income | 678 | 148 | +358.1% | | Total Revenue | 361,804 | 316,748 | +14.2% | | By Region (Property Management and Related Services) | | | | | Hong Kong | 323,783 | 298,914 | +8.3% | | China | 36,156 | 16,605 | +117.7% | 6. SEGMENT INFORMATION The Group operates in property management, property investment, and money lending segments, with property management as the core, while total assets and liabilities slightly increased Performance by Business Segment (Nine Months Ended December 31, 2019) | Business Segment | Revenue (HKD '000) | Segment Profit/(Loss) (HKD '000) | | :--- | :--- | :--- | | Property Management and Related Services | 359,939 | 30,041 | | Property Investment | 1,187 | (1,124) | | Money Lending Business | 678 | 511 | | Total | 361,804 | 29,428 | Segment Assets and Liabilities | Item | December 31, 2019 (HKD '000) | March 31, 2019 (HKD '000) | | :--- | :--- | :--- | | Reportable Segment Assets | 294,432 | 269,490 | | Total Consolidated Assets | 385,130 | 378,715 | | Reportable Segment Liabilities | 87,747 | 84,244 | | Total Consolidated Liabilities | 93,019 | 89,588 | Profitability Analysis (Notes 8, 9, 10, 11) Profit for the period declined due to increased staff costs, fair value loss on investment properties, and new listing expenses, leading to a significant decrease in basic EPS - Staff costs (including salaries and benefits) increased by 10.2% from HKD 260.7 million to HKD 287.3 million, representing the largest expense item[53] - A fair value loss on investment properties of HKD 2.1 million was recorded during the period, compared to no such loss in the prior period[53] - Basic EPS was 0.61 HK cents, calculated based on profit attributable to owners of the Company of approximately HKD 6.2 million and a weighted average of 1,026,351,515 shares[59][61] - The Directors do not recommend the payment of any dividend for the three and nine months ended December 31, 2019[60][62] Accounting Policies and Other Notes (Notes 1, 2, 4, 5, 7) The Group primarily engages in property management, property investment, and money lending, adopting new HKFRS standards, with interest income and other income declining due to fair value adjustments and rising finance costs - The Group's principal activities are property management services, property investment, and money lending business[19] - Interest income significantly decreased from HKD 2.865 million to HKD 0.388 million, primarily due to reduced interest income from investments at fair value through profit or loss[30] - Other income recorded a loss of HKD 1.267 million (compared to income of HKD 0.219 million in the prior period), mainly due to a HKD 2.1 million fair value loss on investment properties[32] - Finance costs increased from HKD 0.426 million to HKD 0.774 million, primarily due to new interest on lease liabilities of HKD 0.333 million[51] MANAGEMENT DISCUSSION AND ANALYSIS Business Review and Outlook The Group operates property management, investment, and money lending businesses under the 'Gang Shen' brand, with property management as its core, and management remains optimistic about market expansion while seeking other investment opportunities - The Group primarily engages in property management services (mainly residential), property investment, and money lending business, operating under the 'Gang Shen' brand in Hong Kong[64][66] - Management believes the Hong Kong property market is expanding, with increased future housing supply presenting growth opportunities for property management business[78][81] - Going forward, property management services in Hong Kong and China will remain the Group's core business, while management will continue to seek other investment opportunities to increase revenue[83][84] Financial Performance Analysis The Group's revenue grew by 14.2% to HKD 361.8 million, but gross profit margin slightly decreased, and profit attributable to owners of the Company significantly declined by 68.2% due to various expenses Revenue by Contract Type (Nine Months Ended December 31) | Contract Type | 2019 (HKD Million) | Proportion | 2018 (HKD Million) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Property Management Service Contracts | 324.9 | 89.8% | 279.8 | 88.3% | | Standalone Security Service Contracts | 24.8 | 6.9% | 22.8 | 7.2% | | Property Management Consultancy Service Contracts | 10.2 | 2.8% | 12.9 | 4.1% | | Leasing Service Contracts | 1.2 | 0.3% | 1.1 | 0.3% | | Money Lending Services | 0.7 | 0.2% | 0.1 | 0.1% | | Total | 361.8 | 100% | 316.7 | 100% | - Gross profit increased by 9.9%, but gross profit margin decreased from 23.5% to 22.6%[75][79] - Profit attributable to owners of the Company significantly decreased by 68.2%, primarily due to (i) proposed transfer of listing expenses, (ii) reduced profit from an associate, and (iii) fair value loss on investment properties[76][77][80] Operational Details and Significant Events As of December 31, 2019, the Group's employees decreased, service contracts in Hong Kong increased, and the company formally applied to transfer its listing from GEM to the Main Board - As of December 31, 2019, the Group had 1,409 employees, with staff costs approximately HKD 287.3 million[85] - As of December 31, 2019, the Group had 444 service contracts in Hong Kong, including 416 property management, 13 standalone security, and 15 facility management contracts[85] - The Company formally applied to the Stock Exchange on October 28, 2019, to transfer its listing from GEM to the Main Board, which does not involve issuing new shares[87] Corporate Governance Corporate Governance Practices and Compliance The company largely complied with the Corporate Governance Code, with deviations including no CEO position and an independent non-executive director's AGM absence, while an audit committee reviewed quarterly results - The Company complied with the Corporate Governance Code, with deviations including the absence of a Chief Executive Officer role and the non-segregation of Chairman and Chief Executive Officer roles[93][94] - Another deviation was the absence of Independent Non-executive Director Mr. Lo Chi Ho from the Annual General Meeting on July 31, 2019, due to other commitments[99][101] - The Company has an Audit Committee, comprising all independent non-executive Directors, which has reviewed the quarterly results report[117] Directors' and Substantial Shareholders' Interests Chairman Mr. Wong Lai Ming is the controlling shareholder, holding 61.00% of issued share capital through Heng Sheng Capital Limited, with his spouse deemed to have the same interest Substantial Shareholders' Shareholdings | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held (Long Position) | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Heng Sheng Capital Limited | Beneficial Owner | 626,071,950 | 61.00% | | Wong Lai Ming (Chairman) | Interest in Controlled Corporation | 626,071,950 | 61.00% | | Li Mengya (Spouse of Mr. Wong) | Interest of Spouse | 626,071,950 | 61.00% | Share Scheme and Other Disclosures The company adopted a share option scheme in 2013, with no options granted or exercised during the period, and confirmed maintaining at least 25% public float - The Company has a share option scheme, but no options were granted, exercised, or remained outstanding during the reporting period[115] - Neither the controlling shareholder nor any Directors engaged in businesses competing with the Group's operations[115] - The Company confirmed that, as of the latest practicable date prior to this report, the public float was not less than 25%, in compliance with regulations[129][131] Corporate Information Company Overview Time Watch Service Company Limited is a Cayman Islands-registered company listed on GEM (stock code 8181), with this report detailing its board members, committee structures, and key corporate information - The Company's Board of Directors comprises 3 Executive Directors, 1 Non-executive Director (Chairman), and 3 Independent Non-executive Directors[132][137] - The Company has an Audit Committee, Remuneration Committee, and Nomination Committee, chaired by Independent Non-executive Directors Mr. Lam Kai Yeung, Mr. Lam Kai Yeung, and Mr. Cho Siu Lun, respectively[137] - The Company changed its principal place of business in Hong Kong to Unit 903, 9/F, Jubilee Centre, 1 Jubilee Street, Central, Hong Kong, effective November 1, 2019[90][94]