Financial Performance - For the nine months ended September 30, 2020, the group's revenue decreased by approximately 9.5% to about HKD 74.5 million from approximately HKD 82.3 million in the same period last year[5]. - The group's gross profit fell by approximately 25.8% to about HKD 30.7 million from approximately HKD 41.4 million in the previous year[5]. - Profit attributable to ordinary equity shareholders decreased from approximately HKD 24.6 million in the previous year to about HKD 15.9 million in the current period[5]. - The operating profit for the nine months was approximately HKD 19.4 million, down from HKD 29.6 million in the same period last year[7]. - The total comprehensive income for the nine months was approximately HKD 15.6 million, compared to HKD 18.1 million in the previous year[9]. - Revenue for the three months ended September 30, 2020, was HKD 24,010,000, a decrease of 22.6% compared to HKD 31,001,000 for the same period in 2019[20]. - Revenue for the nine months ended September 30, 2020, was HKD 74,491,000, down 9.5% from HKD 82,312,000 in the same period of 2019[20]. - The company's basic earnings per share for the nine months ended September 30, 2020, decreased to 1.59 HKD cents from 2.46 HKD cents in the same period last year, representing a decline of approximately 35.4%[28]. - Total revenue decreased from approximately HKD 38.3 million in the previous year to about HKD 14.8 million in the current period, primarily due to a decline in design and renovation projects[44]. - Net profit for the period decreased from approximately HKD 24.6 million in the previous year to about HKD 15.9 million, mainly due to a decline in gross profit from design and renovation projects[50]. Dividends and Shareholder Returns - The board of directors did not recommend the payment of dividends for the current period, consistent with the previous year[5]. - The board of directors did not recommend the distribution of dividends for the nine months ended September 30, 2020, consistent with the same period last year[30]. - The company did not recommend any dividend distribution for the current period, consistent with the previous year[51]. Costs and Expenses - The group reported a decrease in direct costs from approximately HKD 40.96 million to HKD 43.83 million for the nine months[7]. - The total employee costs for the nine months ended September 30, 2020, were HKD 4,334,000, down 18% from HKD 5,283,000 in 2019[22]. - The depreciation expense for the nine months ended September 30, 2020, was HKD 1,341,000, slightly up from HKD 1,224,000 in 2019[24]. - The tax expense for the nine months ended September 30, 2020, was HKD 3,440,000, a decrease from HKD 4,913,000 in the same period of 2019[26]. - General and administrative expenses slightly decreased by approximately 2.0% to about HKD 12.2 million from HKD 12.5 million in the previous year[48]. Government Support and Grants - Government grants recognized as income for the nine months ended September 30, 2020, amounted to HKD 528,000, compared to no grants in the same period of 2019[21]. Corporate Governance - The company has complied with the corporate governance code, except for a deviation regarding the separation of the roles of Chairman and CEO, which are both held by Liu Jingwei[70]. - The company has established an audit committee to oversee financial reporting and risk management, enhancing corporate governance practices[74]. - The company has maintained a strong governance structure, with independent non-executive directors effectively performing their roles[70]. - The company is committed to reviewing its governance structure to assess the need for separating the roles of Chairman and CEO in the future[70]. Liquidity and Financial Position - As of September 30, 2020, the current ratio was approximately 7.3 times, an increase from 3.9 times as of December 31, 2019[54]. - The company had no outstanding borrowings as of September 30, 2020, indicating no significant debt financing needs during the period[54]. - Cash and cash equivalents amounted to approximately HKD 98.2 million as of September 30, 2020, compared to HKD 91.0 million as of December 31, 2019[53]. - The company maintained a strong liquidity position with no significant capital commitments as of September 30, 2020[57]. Business Operations and Future Outlook - The company continues to focus on its core business of interior design and project management services in Hong Kong and mainland China[18]. - The company plans to continue investing resources to undertake more large-scale projects to further develop its interior design and contracting business[42]. - The company remains optimistic about the future of the interior design and contracting market, particularly in commercial spaces and healthcare centers[42]. - The company has implemented preventive measures against COVID-19 to maintain a hygienic working environment, which may impact its operations[39]. - The company’s management will continue to monitor the potential impacts of the COVID-19 pandemic on its business and operations[39]. Shareholding Structure - As of September 30, 2020, Sino Emperor holds 750,000,000 shares, representing a 75% ownership stake in K W Nelson Interior Design and Contracting Group Limited[66]. - Chan Pui Shan, Jessica, as the spouse of Liu Jingwei, is also considered to hold a 75% stake through Sino Emperor, which is wholly owned by Liu Jingwei[67]. Audit and Compliance - The audit committee, consisting of three members, has reviewed the unaudited consolidated financial statements for the nine months ending September 30, 2020, ensuring compliance with applicable accounting standards and GEM listing rules[75]. - No purchases, sales, or redemptions of the company's shares were made by the company or its subsidiaries during the nine months ending September 30, 2020[72]. - The company has not disclosed any interests or stakes in competing businesses by its directors or major shareholders as of September 30, 2020[68]. - The company has adopted a code of conduct for securities transactions by directors, ensuring compliance with trading regulations during the financial performance announcement periods[71].
K W NELSON GP(08411) - 2020 Q3 - 季度财报