万成环球控股(08309) - 2022 Q1 - 季度财报

Financial Highlights Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group reported a 3.3% revenue increase to HKD 151 million, yet gross profit fell 21.4% to HKD 15.33 million, and profit attributable to owners of the Company decreased 51.5% to HKD 4.07 million Summary of Consolidated Statement of Profit or Loss for Q1 2021 | Indicator | 2021 Q1 (HKD thousands) | 2020 Q1 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 151,108 | 146,335 | +3.3% | | Gross Profit | 15,331 | 19,497 | -21.4% | | Profit Before Tax | 4,640 | 9,422 | -50.8% | | Profit Attributable to Owners of the Company | 4,066 | 8,391 | -51.5% | | Basic Earnings Per Share (HK cents) | 0.68 | 1.40 | -51.4% | Unaudited Condensed Consolidated Statement of Changes in Equity Total equity attributable to owners of the Company increased from HKD 101.5 million to HKD 105.6 million as of June 30, 2021, driven by the HKD 4.07 million profit for the period Summary of Changes in Equity | Item | As of June 30, 2021 (HKD thousands) | As of June 30, 2020 (HKD thousands) | | :--- | :--- | :--- | | Total Equity at Beginning of Period | 101,507 | 72,892 | | Profit for the Period | 4,066 | 8,391 | | Total Equity at End of Period | 105,573 | 81,283 | Notes to the Unaudited Condensed Consolidated Financial Statements 1. General Information & 2. Basis of Presentation The Company, an investment holding entity registered in the Cayman Islands, primarily provides environmental cleaning and property management services in Hong Kong, with financial statements prepared in HKD under HKFRS but not reviewed by auditors - The Group's principal activities include providing environmental cleaning solutions, such as street, building, bus, and ferry cleaning, and property management services[9] - The unaudited condensed consolidated results for the quarter have been reviewed by the Company's audit committee but not by the Group's auditor[13][11] 3. Revenue Total revenue reached approximately HKD 151 million, with street cleaning solutions contributing HKD 101 million, while bus and ferry cleaning solutions saw a significant 78.5% year-on-year revenue increase Revenue Composition (By Business Segment) | Business Segment | 2021 Q1 (HKD thousands) | 2020 Q1 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Street Cleaning Solutions | 100,583 | 106,555 | -5.6% | | Building Cleaning Solutions | 20,835 | 22,826 | -8.7% | | Bus and Ferry Cleaning Solutions | 17,753 | 9,943 | +78.5% | | Other Cleaning Solutions | 9,941 | 4,937 | +101.4% | | Property Management Services | 1,996 | 2,074 | -3.8% | | Total | 151,108 | 146,335 | +3.3% | 4. Other Income, 5. Finance Costs, 6. Income Tax Expense, 7. Profit for the period Other income significantly decreased due to prior period government subsidies, finance costs declined by 24.4% from reduced bank borrowing interest, and total staff costs increased, while income tax expense decreased - Other income significantly decreased from HKD 2.24 million in the prior period to HKD 0.21 million, primarily due to the absence of government anti-epidemic fund and employment support scheme subsidies during the reporting period[16][30] - Finance costs decreased by 24.4% year-on-year to HKD 0.465 million, mainly attributable to reduced interest on bank borrowings[18][32] - Total staff costs increased from HKD 111 million to HKD 118 million, primarily due to higher salaries, wages, and other benefits[20] 8. Earnings Per Share Basic and diluted earnings per share for the period were HKD 0.68 cents, representing a 51.4% decrease from HKD 1.40 cents in the prior period, with no dilutive ordinary shares Earnings Per Share Calculation | Item | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | | :--- | :--- | :--- | | Profit Attributable (HKD thousands) | 4,066 | 8,391 | | Weighted Average Number of Ordinary Shares (thousands) | 600,000 | 600,000 | | Basic Earnings Per Share (HK cents) | 0.68 | 1.40 | Management Discussion and Analysis Business Review and Outlook The Group achieved stable contract sales growth, driven by new bus and ferry cleaning contracts and renewed street cleaning services, successfully securing new government contracts despite a subsidiary's bidding suspension, and remains confident in expanding market share - Contract sales growth was primarily driven by two newly awarded bus and ferry cleaning contracts, renewed street cleaning services, and new services provided to public crematoria[23] - Despite a key subsidiary's bidding suspension by the Food and Environmental Hygiene Department (FEHD), the Group successfully secured two FEHD service contracts through another subsidiary and anticipates more street cleaning contracts in Q4 2021[24] - Looking ahead, the Group remains confident in the environmental cleaning services industry outlook, committed to exploring new opportunities, expanding market share, and strengthening internal controls to maximize shareholder returns[26] Financial Review Revenue grew 3.3% to HKD 151 million, driven by bus and ferry cleaning, but gross profit margin decreased from 13.3% to 10.1% due to increased direct salaries, leading to a 51.5% decline in net profit to HKD 4.07 million - Revenue increased by 3.3% year-on-year, primarily driven by an additional HKD 7.81 million from bus and ferry cleaning solutions and an increase of approximately HKD 5 million from other cleaning solutions[28] - Gross profit and gross profit margin decreased by 21.4% and 3.2 percentage points respectively, mainly due to an increase of approximately HKD 6.65 million in direct salaries during the reporting period[29] - Profit attributable to owners of the Company decreased by 51.5% year-on-year from HKD 8.39 million to HKD 4.07 million, due to lower gross profit and the base effect of government subsidies in the prior period[34] Dividend The Board does not recommend a dividend for the current reporting period but has approved a final dividend of HKD 1.5 cents per share for the year ended March 31, 2021 - The Board does not recommend a dividend for the current reporting period[35] - The final dividend of HKD 1.5 cents per share for the year ended March 31, 2021, has been approved by shareholders and is expected to be paid on or about October 20, 2021[35] Corporate Governance and Other Disclosures Disclosure of Interests As of June 30, 2021, controlling shareholders Mr. Wong Chong Shing, Mr. Wong Man Shing, and Mr. Wong Chi Ho were deemed to jointly hold 61.50% of the Company's shares due to an acting in concert agreement Directors' and Chief Executive's Interests in Shares (Long Positions) | Director | Capacity | Number of Ordinary Shares | Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Wong Chong Shing | Interest in controlled corporation; Interest of person acting in concert | 369,000,000 | 61.50% | | Mr. Wong Man Shing | Interest in controlled corporation; Interest of person acting in concert | 369,000,000 | 61.50% | | Mr. Wong Chi Ho | Interest in controlled corporation; Interest of person acting in concert | 369,000,000 | 61.50% | - Mr. Wong Chong Shing, Mr. Wong Man Shing, and Mr. Wong Chi Ho entered into an acting in concert agreement, and are therefore deemed to be interested in each other's shares under the Securities and Futures Ordinance[39] Compliance and Internal Control The Company complied with the Corporate Governance Code and directors' securities transaction code, with its audit committee, composed of three independent non-executive directors, reviewing the quarterly financial statements, and no share options granted since the scheme's adoption - During the reporting period, the Company complied with the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules[44] - No share options have been granted by the Company since the adoption of the share option scheme up to June 30, 2021[48] - The audit committee, comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the quarter[50]