Financial Performance - For the first quarter ended June 30, 2021, the company reported revenue of HKD 74,034,000, a decrease of 5.1% compared to HKD 78,433,000 in the same period of 2020[5]. - The gross profit for the first quarter was HKD 11,346,000, representing a gross margin of approximately 15.3%[5]. - The net profit attributable to shareholders for the period was HKD 2,439,000, significantly up from HKD 545,000 in the previous year, marking a year-over-year increase of 347.9%[7]. - The total comprehensive income for the period was HKD 1,960,000, compared to HKD 545,000 in the same period last year, indicating a substantial increase[7]. - Basic and diluted earnings per share for the period were both HKD 0.0135, compared to HKD 0.0029 in the previous year[5]. - The group reported a total income of HKD 74,034,000 for the three months ended June 30, 2021, compared to HKD 78,433,000 in the same period of 2020, reflecting a decrease of 5.6%[21]. - The group’s financial expenses totaled HKD 202,000 for the three months ended June 30, 2021, compared to HKD 17,000 in the same period of 2020, showing a significant increase[29]. - The group’s interest income for the three months ended June 30, 2021, was HKD 72,000, a decrease from HKD 401,000 in the same period of 2020, representing a decline of 82.0%[25]. - The group’s other income and gains totaled HKD 225,000 for the three months ended June 30, 2021, down from HKD 446,000 in the same period of 2020, reflecting a decrease of 49.6%[25]. - The company reported a profit attributable to ordinary shareholders of HKD 2,702,000 for the three months ended June 30, 2021, compared to HKD 588,000 for the same period in 2020, representing an increase of approximately 359%[33]. - Total revenue for the group was approximately HKD 74,035,000, a decrease of about 6% compared to HKD 78,433,000 for the three months ended June 30, 2020[47]. - Revenue from the construction segment was approximately HKD 68,104,000, down about 11% from HKD 76,767,000 in the same period last year[47]. - The group incurred engineering contract costs of HKD 62,688,000 for the three months ended June 30, 2021, down from HKD 70,541,000 in the same period of 2020, indicating a reduction of 11.1%[27]. - The net rental income for the group was a loss of HKD 142,000 for the three months ended June 30, 2021, compared to a loss of HKD 15,000 in the same period of 2020[27]. - The group’s employee benefits expenses, including directors' remuneration, amounted to HKD 7,550,000 for the three months ended June 30, 2021, compared to HKD 7,119,000 in the same period of 2020, an increase of 6.1%[27]. - Gross profit increased from approximately HKD 7,900,000 to about HKD 11,300,000, representing an increase of approximately HKD 3,400,000 or 43%[62]. - The gross profit margin for the reporting period was approximately 15%, up 5 percentage points from the previous reporting period's margin of about 10%[64]. - Administrative expenses increased by approximately HKD 1,100,000 or 18%, to about HKD 9,000,000, primarily due to increased employee costs[66]. - Financial expenses rose by approximately HKD 185,000 or 1,071%, to about HKD 202,000, mainly due to increased interest expenses on short-term loans[67]. Business Segments - The construction business segment generated revenue of HKD 60,263,000 from external customers in Hong Kong, down from HKD 66,717,000 in the previous year, representing a decline of 10.9%[19]. - The securities investment segment recorded revenue of approximately HKD 5,525,000, an increase of about 267% from HKD 1,506,000 for the same period in 2020[47]. - Revenue from property investment was approximately HKD 153,000, a significant increase of about 665% compared to HKD 20,000 in the same period last year[47]. - The lending business generated revenue of approximately HKD 252,000, an increase of about 80% from HKD 140,000 for the same period in 2020[56]. Corporate Governance and Compliance - The company is committed to maintaining transparency and accuracy in its financial reporting, adhering to the GEM listing rules[4]. - The company has adopted the corporate governance code as per GEM listing rules and has generally complied with it during the reporting period[109]. - The audit committee consists of three independent non-executive directors, responsible for reviewing financial controls and risk management[110]. - The company aims to enhance transparency and accountability to shareholders through high standards of corporate governance[107]. - The group is committed to complying with additional requirements imposed on certain work license categories to maintain its qualifications as an approved contractor and supplier[80]. Future Strategies and Market Position - The company continues to focus on its core business activities, including construction and property investment, while exploring opportunities in securities investment and lending[11]. - Future strategies may include market expansion and potential new product developments, although specific details were not disclosed in the report[11]. - The group aims to continue balancing its construction business development in the Greater China region, adopting a prudent strategy for project bidding[77]. - The group aims to enhance its market position in Hong Kong by attracting larger corporate clients and bidding for capital-intensive projects, driven by an upward trend in overall building and construction expenditure[80]. - The group plans to apply for more necessary licenses and qualifications to expand its service scope and will continue to selectively undertake new contracts[81]. Investments and Financial Management - The group has established a Treasury Management Committee to execute investment policies and aims to generate additional investment returns despite global market uncertainties[83]. - The group holds approximately HKD 26,000,000 in equity and debt investments, with significant investments in various companies, including HKD 7,140,000 in Hong Kong Education (International) Investment Group[87]. - The group generated net proceeds of approximately HKD 3,000,000 from the sale of listed securities, with total sales proceeds amounting to HKD 13,000,000 during the reporting period[91]. - The board will adopt prudent measures to manage the investment portfolio in light of recent market volatility and instability, aiming for positive short-term returns[91]. - The group will continue to review its investment property portfolio in response to the recent economic environment's instability[84]. Shareholder Information - The company did not recommend any interim dividend for the reporting period[37]. - The weighted average number of ordinary shares in issue for calculating basic earnings per share was 200,000,000 for both 2021 and 2020[36]. - The company completed a share consolidation on April 28, 2021, reducing the number of shares from 4,000,000,000 to 800,000,000[36]. - As of June 30, 2021, Energy Luck Limited holds 23,978,816 shares, representing 11.99% of the company's issued share capital[100]. - No share options were granted during the reporting period, and there were no unexercised share options as of June 30, 2021[96]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[106]. - There were no shareholdings or interests recorded by directors or senior management in the company or its affiliates as of June 30, 2021[98]. - The maximum number of share options that can be granted under the share option scheme is limited to 10% of the issued shares at any time[94]. - No major shareholders or other individuals, apart from directors, held any interests in the company's shares that required disclosure as of June 30, 2021[102].
智城发展控股(08268) - 2022 Q1 - 季度财报