艾硕控股(08341) - 2021 Q3 - 季度财报

Financial Performance Consolidated Statement of Profit or Loss In the first nine months of 2020, the company's revenue significantly decreased by 46.1% to HKD 80.81 million year-on-year, with gross profit sharply falling by 87.5% to HKD 2.07 million, leading to an expanded loss for the period of HKD 10.50 million compared to HKD 8.61 million in the prior year Summary of Statement of Profit or Loss for the Nine Months Ended December 31, 2020 | Indicator | For the Nine Months Ended December 31, 2020 (HKD thousands) | For the Nine Months Ended December 31, 2019 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 80,808 | 149,904 | -46.1% | | Gross Profit | 2,073 | 16,629 | -87.5% | | Loss Before Tax | (10,500) | (8,608) | +22.0% | | Loss and Total Comprehensive Expenses for the Period | (10,500) | (8,608) | +22.0% | | Basic Loss Per Share (HK cents) | (4.11) | (4.30) | Narrowed 4.4% | Consolidated Statement of Changes in Equity As of December 31, 2020, the company's total equity turned positive to HKD 14.58 million from a negative HKD 21.14 million at the beginning of the period, primarily due to HKD 48.00 million raised from new share issuance, offsetting the HKD 10.50 million loss for the period Summary of Changes in Equity (As of December 31, 2020) | Item | Amount (HKD thousands) | | :--- | :--- | | Total at March 31, 2020 (Beginning of Period) | (21,135) | | Loss for the Period | (10,500) | | Issuance of New Shares | 48,000 | | Share Issuance Transaction Costs | (1,787) | | Total at December 31, 2020 (End of Period) | 14,578 | Notes to the Financial Statements This section provides detailed notes to the financial statements, explaining the company's core business, accounting policies, segment revenue composition, key profit and loss item details, and the basis for calculating loss per share. The company's core business is fitting-out and renovation projects in Hong Kong, with a significant decrease in renovation project revenue during the period. Due to recorded losses, the company has not provided for taxation and does not recommend dividend distribution Company Information and Basis of Preparation The company is an investment holding company registered in the Cayman Islands, primarily engaged in housing improvement solutions in Hong Kong, including interior fitting-out for new projects and renovation and alteration works for existing buildings. Financial statements are presented in HKD and prepared in accordance with Hong Kong Financial Reporting Standards - The company's core business involves providing contracting services in Hong Kong, including interior fitting-out for new commercial and residential buildings, as well as renovation and alteration works for existing commercial buildings[8] - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and presented in Hong Kong Dollars[8][9] Segment Information and Revenue The company's business is divided into 'Fitting-out Projects' and 'Renovation Projects' segments, with all revenue derived from Hong Kong. Total revenue for the first nine months of 2020 was HKD 80.81 million, a 46.1% year-on-year decrease. Fitting-out project revenue decreased by 10.1%, while renovation project revenue saw a significant 75.2% year-on-year decline Segment Revenue for the Nine Months Ended December 31 (HKD thousands) | Business Segment | 2020 | 2019 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Fitting-out Projects | 60,288 | 67,096 | -10.1% | | Renovation Projects | 20,520 | 82,808 | -75.2% | | Total | 80,808 | 149,904 | -46.1% | Key Profit & Loss Items Other income significantly increased to HKD 1.84 million during the period, mainly from other income items. Finance costs decreased by 45.6% year-on-year to HKD 1.72 million, benefiting from reduced interest on other borrowings. Total staff costs within administrative expenses were HKD 12.76 million, a 13.2% year-on-year decrease - For the nine months ended December 31, 2020, total other income, gains or losses amounted to HKD 1.842 million, a substantial increase from HKD 53 thousand in the prior year period[16] - Finance costs decreased by 45.6% from HKD 3.157 million in the prior year period to HKD 1.717 million, primarily due to a reduction in interest on other borrowings[17] - Total staff costs decreased by 13.2% from HKD 14.706 million in the prior year period to HKD 12.761 million[18] Tax, Dividend, and Loss Per Share No Hong Kong profits tax provision was made due to the taxable loss recorded during the period. The Board does not recommend any dividend payment. Basic loss per share narrowed from 4.30 HK cents last year to 4.11 HK cents, primarily due to an increase in the weighted average number of shares from the rights issue - No provision for Hong Kong profits tax was made as the Group had no assessable profits during the reporting period[20] - The Board does not recommend the payment of any dividend for the period[21] - For the nine months ended December 31, 2020, basic loss per share was 4.11 HK cents, compared to 4.30 HK cents in the prior year period, primarily due to an increase in the weighted average number of ordinary shares from 200 million to approximately 255 million used in the loss calculation[23] Management Discussion and Analysis Business Review The company primarily engages in fitting-out and renovation projects in Hong Kong. During the period, the company tendered for approximately HKD 2.28 billion in projects, successfully securing 10 projects with a total contract value of approximately HKD 129 million, serving leading Hong Kong and renowned Chinese property developers. To improve its financial position, the company completed a rights issue in November 2020, raising net proceeds of approximately HKD 46.2 million - For the nine months ended December 31, 2020, the company tendered for approximately HKD 2.277 billion in projects and was awarded 10 projects with a total contract value of approximately HKD 129 million[25] - The company completed a rights issue in November 2020, issuing 600 million shares at HKD 0.080 per share, raising net proceeds of approximately HKD 46.2 million[26] Financial Review Impacted by the COVID-19 pandemic on Hong Kong's economy, the company's revenue for the first nine months of 2020 decreased by 46.1% year-on-year to HKD 80.8 million. Gross profit sharply declined by 87.5% to HKD 2.1 million. Administrative expenses decreased by 28.2% due to reduced legal and professional fees. Ultimately, loss attributable to owners of the company expanded from HKD 8.6 million last year to HKD 10.5 million - Revenue decreased by 46.1% from approximately HKD 150 million in the prior year period to approximately HKD 80.8 million, primarily due to the adverse impact of the COVID-19 pandemic on Hong Kong's economy[29] - Gross profit decreased by 87.5% from HKD 16.6 million in the prior year period to HKD 2.1 million[31] - Administrative expenses decreased by 28.2% from HKD 18.0 million in the prior year period to HKD 12.9 million, mainly due to reduced legal and professional fees and tendering costs[32] - Loss attributable to owners of the company increased from HKD 8.6 million in the prior year period to HKD 10.5 million, primarily due to the decrease in gross profit[33] Prospects and Outlook The company will continue to focus on Hong Kong's fitting-out and renovation engineering market, particularly residential and commercial projects. From early 2021 to the reporting date, five new fitting-out projects have been awarded, with a total contract value of approximately HKD 275 million. Despite COVID-19 uncertainties, the rights issue completed in November 2020 improved the company's financial and cash position, supporting future project bidding - The company will continue to focus on renovation and fitting-out engineering opportunities in Hong Kong, particularly in residential development projects and commercial properties[34] - From January 1, 2021, to the reporting date, the Group has been awarded five fitting-out projects with a total contract value of approximately HKD 275.3 million[34] - The rights issue completed in November 2020 improved the company's financial and cash position, providing support for future development[35] Other Disclosures Shareholding and Interests This section discloses the shareholdings of directors and major shareholders. Director Mr. Chan Siu Chung is a major controlling shareholder, holding approximately 13.60% of the shares. Additionally, the company has a share option scheme, and as of the period end, several executive directors and employees held unexercised share options Directors' and Chief Executive's Interests As of December 31, 2020, Director Mr. Chan Siu Chung beneficially owned 108,838,709 ordinary shares of the company, representing approximately 13.60% of the issued share capital. Additionally, Directors Mr. Cheung Hiu Tung and Mr. Cheung Hoi Wai each held 2,838,709 share options, each representing approximately 0.35% Directors' Long Positions in Shares and Underlying Shares of the Company (As of December 31, 2020) | Name | Capacity | Number of Ordinary Shares Held | Approximate Percentage | | :--- | :--- | :--- | :--- | | Chan Siu Chung | Beneficial Owner | 108,838,709 | 13.60% | | Cheung Hiu Tung | Beneficial Owner (Share Options) | 2,838,709 | 0.35% | | Cheung Hoi Wai | Beneficial Owner (Share Options) | 2,838,709 | 0.35% | Share Option Scheme The company adopted a share option scheme on September 30, 2019. As of December 31, 2020, there were 28,387,097 unexercised share options with an exercise price of HKD 0.3135 per share, involving three executive directors and other employees - As of December 31, 2020, there were 28,387,097 unexercised share options under the share option scheme[42] Details of Unexercised Share Options (As of December 31, 2020) | Grantees | Number | Exercise Price (HKD) | | :--- | :--- | :--- | | Executive Director Chan Siu Chung | 2,838,709 | 0.3135 | | Executive Director Cheung Hiu Tung | 2,838,709 | 0.3135 | | Executive Director Cheung Hoi Wai | 2,838,709 | 0.3135 | | Other Employees | 19,870,970 | 0.3135 | Corporate Governance The company is committed to maintaining a high level of corporate governance. During the reporting period, the company complied with most provisions of the Corporate Governance Code, but there was a deviation where the roles of Chairman and Chief Executive Officer were not separated. The Audit and Risk Management Committee, comprising three independent non-executive directors, has reviewed the quarterly financial report Compliance Status The company complied with the Corporate Governance Code during the reporting period, with one deviation: the roles of Chairman and Chief Executive Officer were not held by different individuals. The company explained that Chairman Mr. Chan Siu Chung, along with the executive director team, performs the Chief Executive Officer functions to avoid duplication of duties - For the nine months ended December 31, 2020, the company complied with the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules, with one deviation[51] - The deviation is that the roles of Chairman and Chief Executive Officer are not performed by different individuals, as required by Code Provision A.2.1. The company's Chairman, Mr. Chan Siu Chung, oversees the Group's management in conjunction with other executive directors, thus no separate Chief Executive Officer has been appointed[51] Audit and Risk Management Committee The Audit and Risk Management Committee comprises three independent non-executive directors, with Mr. Yeung Chun Yu as Chairman. The committee's primary responsibilities include reviewing financial statements, monitoring internal controls, and risk management systems. The committee has reviewed the unaudited condensed consolidated financial statements for the quarter - The Audit and Risk Management Committee consists of independent non-executive directors Mr. Yeung Chun Yu (Chairman), Ms. Lai Wing Sze, and Ms. Yu Wan Ki[52] - The committee has reviewed the Group's unaudited condensed consolidated financial statements for the nine months ended December 31, 2020[54]