Financial Performance - For the three months ended March 31, 2019, the group's revenue decreased by approximately 31.2% to about HKD 23.0 million from approximately HKD 33.4 million in the same period last year[5]. - The group's gross profit fell from approximately HKD 11.5 million in the previous year to about HKD 9.0 million in the current period[5]. - Profit attributable to the owners of the company decreased from approximately HKD 7.0 million to about HKD 5.0 million[5]. - The group's other income for the current period was HKD 149,000, down from HKD 63,000 in the previous year[8]. - The pre-tax profit for the current period was HKD 6.5 million, compared to HKD 8.4 million in the previous year[8]. - The basic and diluted earnings per share for the current period were 0.5 HK cents, down from 0.7 HK cents in the previous year[8]. - The total comprehensive income attributable to the owners of the company for the current period was HKD 5.9 million, compared to HKD 7.1 million in the previous year[11]. - The group reported a net profit of approximately HKD 5.0 million, down from HKD 7.0 million in the same period last year, mainly due to a decrease in gross profit[46]. Dividend Policy - The board of directors did not recommend the payment of an interim dividend for the current period, compared to no dividend in the same period last year[5]. - The company did not recommend an interim dividend for the three months ended March 31, 2019[31]. - The board did not recommend the distribution of an interim dividend for the period[47]. Revenue and Cost Analysis - Direct costs for the three months ended March 31, 2019, were HKD 13.99 million, down from HKD 21.92 million in the same period last year[25]. - The overall gross profit margin increased from approximately 34.4% to about 39.1%, primarily due to a higher gross profit margin from renovation projects, which accounted for about 51.9% of total revenue[43]. - General and administrative expenses decreased by approximately 15.0% to about HKD 2.7 million, down from HKD 3.1 million in the previous year[44]. Business Expansion and Strategy - The company has ongoing renovation projects for medical centers and offices, indicating a focus on expanding service offerings in Hong Kong, Macau, and China[35]. - The company plans to reapply for a transfer of its shares from GEM to the main board, which is expected to enhance its public image and liquidity[36]. - The group plans to focus on expanding its business in the Chinese market and enhancing its ability to capture more commercial opportunities[39]. Assets and Liabilities - The group's net current assets as of March 31, 2019, were approximately HKD 105.5 million, including cash and cash equivalents of about HKD 82.9 million[48]. - The group has no outstanding borrowings as of March 31, 2019, indicating no significant debt financing needs during the period[50]. - The group has no significant capital commitments as of March 31, 2019[53]. Corporate Governance - The company has adopted the corporate governance code as per GEM Listing Rules and has complied with most provisions, except for the separation of the roles of Chairman and CEO[65]. - The audit committee, established in November 2016, consists of three members and is responsible for overseeing financial reporting and risk management[68]. - The company has confirmed that all directors complied with the trading rules during the reporting period[66]. - The company has not identified any competing business interests among its directors or major shareholders[63]. Shareholding Structure - The company holds 750,000,000 shares, representing a 75% ownership stake by Sino Emperor Group Limited, which is fully owned by Mr. Liu Jingwei[58]. - Mr. Liu Jingwei's spouse, Ms. Chan Pui Shan, also holds a 75% interest in the company through Sino Emperor[61]. - The company has no other shareholders owning 5% or more of the issued shares apart from those disclosed[62]. Compliance and Reporting - The unaudited consolidated financial statements for the three months ended March 31, 2019, were reviewed and deemed compliant with applicable accounting standards and GEM listing rules[70]. - The report was presented by the Chairman and CEO, Liu Jingwei, on May 10, 2019[71]. - No purchases, sales, or redemptions of the company's listed securities occurred during the three months ending March 31, 2019[67]. - There are no known claims against the company as of the reporting date[56].
K W NELSON GP(08411) - 2019 Q1 - 季度财报