Financial Performance - For the three months ended March 31, 2021, the group's revenue decreased by approximately 39.2% to about HKD 16.1 million from approximately HKD 26.6 million in the same period last year[5]. - The gross profit for the period fell to approximately HKD 2.7 million, down from approximately HKD 11.6 million in the previous year[5]. - The profit attributable to owners of the company was approximately HKD 0.5 million, compared to HKD 7.4 million in the same period last year[5]. - Basic and diluted earnings per share were HKD 0.05, down from HKD 0.74 in the previous year[7]. - Operating profit for the period was HKD 0.621 million, significantly lower than HKD 8.868 million in the same period last year[8]. - The total comprehensive income for the period, after tax, was HKD 479,000, compared to HKD 7.026 million in the previous year[8]. - The company reported a decrease in other income to HKD 28,000 from HKD 165,000 in the previous year[8]. - The company's pre-tax profit for the three months ended March 31, 2021, was HKD 497,000, down 93% from HKD 7,362,000 in the same period of 2020[31]. - Basic earnings per share for the three months ended March 31, 2021, were HKD 0.05, a decrease of 93% from HKD 0.74 in the same period of 2020[31]. Dividend and Shareholder Returns - The board of directors did not recommend the payment of an interim dividend for the period, while there was no dividend in the same period last year[5]. - The company did not recommend any interim dividend for the three months ended March 31, 2021, consistent with the same period in 2020[32]. - The group did not recommend an interim dividend for the current period, consistent with the previous year[46]. Costs and Expenses - Employee costs increased to HKD 2,088,000 for the three months ended March 31, 2021, compared to HKD 1,549,000 for the same period in 2020, reflecting a rise of 35%[24]. - The direct costs for the period were HKD 13.491 million, slightly down from HKD 14.989 million in the previous year[8]. - The direct costs for the three months ended March 31, 2021, were HKD 13,491,000, a decrease of 10% from HKD 14,989,000 in the same period of 2020[27]. - Administrative expenses decreased from HKD 2.9 million to HKD 2.1 million, mainly due to a reversal of HKD 0.3 million in trade receivables impairment[43]. - The income tax expense for the three months ended March 31, 2021, was HKD 114,000, significantly lower than HKD 1,490,000 for the same period in 2020[28]. - The company recorded a depreciation expense of HKD 202,000 for property, plant, and equipment, down from HKD 276,000 in the same period of 2020[27]. - The interest on lease liabilities decreased to HKD 10,000 for the three months ended March 31, 2021, from HKD 16,000 in the same period of 2020[22]. Market and Operational Insights - The company primarily operates in Hong Kong, providing interior design, project management services, and interior renovation works[13]. - Revenue from design and renovation projects increased from HKD 5.1 million to HKD 12.0 million, mainly due to a HKD 7.8 million increase from elderly care projects[38]. - The group completed several elderly care and office property projects during the period, despite the ongoing impact of the COVID-19 pandemic[36]. - The group anticipates continued growth in the interior design and renovation market, particularly in commercial spaces and healthcare centers, driven by increasing public awareness of health issues and an aging population[37]. Financial Position and Liquidity - As of March 31, 2021, the group's net current assets amounted to approximately HKD 140.7 million, an increase from HKD 140.1 million as of December 31, 2020[49]. - The group's cash and cash equivalents were approximately HKD 122.5 million as of March 31, 2021, compared to HKD 113.7 million as of December 31, 2020[49]. - The current ratio as of March 31, 2021, was approximately 14.4 times, up from 10.1 times as of December 31, 2020, primarily due to a decrease in trade and other payables[49]. - As of March 31, 2021, the group had no outstanding borrowings, indicating no significant debt financing needs during the period[49]. - The total equity attributable to owners of the company was approximately HKD 142.5 million as of March 31, 2021, compared to HKD 142.0 million as of December 31, 2020[50]. - The group had no significant capital commitments as of March 31, 2021[54]. - The group maintained a prudent financial management policy, ensuring a stable liquidity position throughout the period[52]. - The group had no significant contingent liabilities as of March 31, 2021[56]. Corporate Governance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15 and has complied with its provisions, except for a deviation from rule A.2.1[66]. - The board believes that having the same individual serve as both Chairman and CEO is beneficial for the company's business prospects and operational efficiency[66]. - The audit committee has been established since November 18, 2016, and is responsible for reviewing financial statements and overseeing risk management and internal control procedures[69]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ended March 31, 2021, and confirmed compliance with applicable accounting standards and GEM Listing Rules[69]. - The audit committee currently consists of three members, with Ms. Su Yingzhi serving as the chairperson[69]. - The board will continue to review the effectiveness of the corporate governance structure to assess the need for separating the roles of Chairman and CEO[66]. - The company has a proper power distribution within the board, ensuring that independent non-executive directors can effectively perform their functions[66]. - All directors have complied with the trading rules during the three-month period ending March 31, 2021, with no known non-compliance issues[67]. - The company has not reported any non-compliance situations during the specified period[67]. - No shares of the company were purchased, sold, or redeemed by the company or its subsidiaries during the three months ended March 31, 2021[68].
K W NELSON GP(08411) - 2021 Q1 - 季度财报