Financial Performance - The group's revenue increased from approximately HKD 50,623,000 for the nine months ended September 30, 2019, to approximately HKD 87,361,000 for the same period in 2020, representing a growth of 72.6%[8]. - Gross profit for the nine months ended September 30, 2020, was approximately HKD 14,727,000, with a gross margin of 16.9%, compared to a gross loss of approximately HKD 3,408,000 and a gross margin of 6.7% for the same period in 2019[9]. - The net profit attributable to the owners of the company for the nine months ended September 30, 2020, was approximately HKD 1,061,000, a significant turnaround from a net loss of approximately HKD 19,299,000 for the same period in 2019[9]. - The company recorded a profit before tax of approximately HKD 2,060,000 for the nine months ended September 30, 2020, compared to a loss before tax of approximately HKD 19,484,000 for the same period in 2019[11]. - The basic and diluted earnings per share for the nine months ended September 30, 2020, was HKD 0.2, compared to a loss per share of HKD 3.9 for the same period in 2019[11]. - The overall comprehensive income for the nine months ended September 30, 2020, was approximately HKD 1,055,000, a recovery from a comprehensive loss of approximately HKD 19,299,000 in 2019[11]. - The company reported a profit of HKD 1,061,000 for the nine months ended September 30, 2020, compared to a loss of HKD 19,299,000 for the same period in 2019, indicating a significant turnaround[12]. - For the nine months ended September 30, 2020, the profit was HKD 1,061,000, a significant improvement from a loss of HKD 19,299,000 in 2019[29]. Revenue Sources - Revenue from public sector projects, particularly tunnel construction services, rose from approximately HKD 15,807,000 in 2019 to approximately HKD 38,789,000 in 2020, driven by new contracts awarded in the fourth quarter of 2019[8]. - Revenue from public sector projects, specifically tunnel construction services, rose by 145.4% to approximately HKD 38,789,000, compared to HKD 15,807,000 in the previous year[51]. - Revenue from public sector projects related to utility construction and others increased by 75.2% to approximately HKD 45,503,000, up from HKD 25,968,000 in the same period of 2019[51]. - Revenue from major clients for the nine months ended September 30, 2020, included HKD 17,025,000 from Client B, up from HKD 16,748,000 in 2019, reflecting a growth of 1.65%[23]. Expenses and Costs - Administrative expenses for the nine months ended September 30, 2020, were approximately HKD 16,256,000, slightly down from HKD 16,430,000 in 2019[11]. - Employee benefit expenses, including director remuneration, increased to HKD 44,925,000 for the nine months ended September 30, 2020, up from HKD 33,265,000 in 2019, representing a 35% increase[27]. - Service costs increased by 34.4% to approximately HKD 72,634,000, up from HKD 54,031,000, primarily due to higher employee costs and construction materials[53]. - Financing costs increased to approximately HKD 226,000 from HKD 103,000, attributed to higher bank loan interest expenses[59]. - Deferred tax expenses amounted to HKD 1,001,000 for the nine months ended September 30, 2020, compared to a tax credit of HKD 185,000 in 2019[27]. Government Support and Other Income - The company reported other income of approximately HKD 3,815,000 for the nine months ended September 30, 2020, compared to HKD 457,000 for the same period in 2019[11]. - Government subsidies received amounted to HKD 3,282,000 for the nine months ended September 30, 2020, compared to no subsidies in the same period of 2019[25]. - The total other income for the nine months ended September 30, 2020, was HKD 3,815,000, compared to HKD 457,000 in 2019, indicating a substantial increase[25]. Project and Market Outlook - The group anticipates sustained demand for tunnel construction services due to ongoing major infrastructure projects, including the Tseung Kwan O-Lam Tin Tunnel and the Central Kowloon Route[47]. - The Hong Kong government's annual capital works expenditure for infrastructure projects is expected to average HKD 100,000,000,000, with total construction output projected to increase to approximately HKD 300,000,000,000 in the coming years[47]. - The group is focusing on developing a comprehensive suite of tunnel construction services, which has established a solid foundation for growth since 2014[40]. - The overall project pipeline includes significant contracts for the construction of tunnels and utility services, with completion expected by 2026[50]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the third-quarter report for the nine months ending September 30, 2020, confirming compliance with applicable accounting standards and GEM listing rules[77]. - The board of directors has reviewed the corporate governance practices and believes the company has complied with the corporate governance code as per GEM listing rules[80]. - The company has not adopted any new accounting standards that have not yet come into effect as of January 1, 2020, ensuring consistency in financial reporting[19]. Shareholder Information - As of September 30, 2020, the total shareholding of the directors and senior management in the company was 275,000,000 shares, representing 56.4% of the issued share capital[70]. - Wu Guolun held 37,500,000 shares, representing 7.7% of the issued share capital[75]. Other Notable Information - The company is in the process of developing a feature film based on intellectual property acquired from an independent third party in December 2019[20]. - The group did not purchase, redeem, or sell any of its listed securities during the reporting period[69]. - There were no significant events after September 30, 2020, that could materially affect the group's operations and financial performance[67].
骏杰集团控股(08188) - 2020 Q3 - 季度财报