Financial Performance - For the nine months ended September 30, 2021, the group's revenue decreased by approximately 56.6% to about HKD 32.3 million from approximately HKD 74.5 million in the same period last year[5]. - The gross profit for the same period fell by about 72.6%, down to approximately HKD 8.4 million from about HKD 30.7 million in the previous year[5]. - The group recorded a loss attributable to ordinary equity shareholders of approximately HKD 3.6 million, compared to a profit of HKD 15.9 million in the same period last year[5]. - The operating loss for the nine months was approximately HKD 3.6 million, compared to an operating profit of HKD 19.4 million in the same period last year[7]. - The total comprehensive loss for the period amounted to approximately HKD 3.6 million, compared to a total comprehensive income of HKD 15.6 million in the previous year[9]. - The company reported a basic and diluted loss per share of HKD 0.49 for the nine months ended September 30, 2021[7]. - For the nine months ended September 30, 2021, total revenue was HKD 32,326,000, a decrease of 56.6% compared to HKD 74,491,000 for the same period in 2020[21]. - Revenue from Hong Kong for the nine months was HKD 32,012,000, down 57.0% from HKD 74,491,000 in the previous year[21]. - The company reported a pre-tax loss of HKD 310,000 for the three months ended September 30, 2021, compared to a profit of HKD 2,000 for the same period in 2020[30]. - Employee costs for the nine months increased to HKD 7,945,000, up 83.5% from HKD 4,334,000 in the previous year[25]. - Interest income for the nine months was HKD 90,000, a decrease of 79.5% from HKD 435,000 in the same period last year[23]. - Direct costs for the nine months were HKD 23,924,000, down 45.5% from HKD 43,828,000 in the previous year[29]. - The company received government grants totaling HKD 528,000 in the previous year, with no grants reported for the current period[23]. - Depreciation for owned properties, plants, and equipment for the nine months was HKD 305,000, down 63.0% from HKD 824,000 in the previous year[29]. Company Strategy and Market Focus - The company is focusing on restructuring and exploring new market opportunities to recover from the current financial downturn[5]. - The company plans to strengthen its market responsiveness and continue its business expansion plans in the interior design and renovation sector[46]. - The company aims to leverage its industry experience to explore new business opportunities and undertake more large-scale projects[46]. - The company believes there will be an increase in the construction of health centers and medical facilities due to growing public awareness of health issues and an aging population in Hong Kong[46]. Assets and Liabilities - The total assets of the company as of September 30, 2021, were approximately HKD 142.0 million, reflecting a decrease from the previous year[11]. - As of September 30, 2021, the group's net current assets were approximately HKD 128.3 million, including cash and cash equivalents of about HKD 117.5 million[60]. - The current ratio was approximately 8.5 times as of September 30, 2021, down from 10.1 times at the end of the previous year[60]. - The group confirmed a trade receivables loss provision of HKD 4.6 million as of September 30, 2021, compared to HKD 3.9 million on December 31, 2020[59]. - The total equity attributable to the owners of the company was approximately HKD 133.7 million as of September 30, 2021, down from HKD 142.0 million at the end of the previous year[60]. - The group had no outstanding borrowings as of September 30, 2021, due to no significant debt financing needs during the period[60]. Corporate Governance - The company has adopted a share incentive plan on May 17, 2021, aimed at retaining participants and encouraging contributions to the group's growth[78]. - During the reporting period, the trustee purchased a total of 10,040,000 shares under the share incentive plan, at a total cost of approximately HKD 1.7 million[79]. - The company has complied with the corporate governance code, except for a deviation regarding the separation of the roles of Chairman and CEO[81]. - The board of directors has adhered to the trading compliance code during the nine months ending September 30, 2021, with no known non-compliance issues[83]. - The audit committee was established on November 18, 2016, in accordance with GEM listing rules, and is responsible for overseeing financial reporting and risk management[84]. - The unaudited consolidated financial statements for the nine months ending September 30, 2021, were prepared in accordance with applicable accounting standards and GEM listing rules[85]. Market Conditions - The company experienced a significant decline in revenue primarily driven by reduced income from renovation projects in medical centers, corridors, retail shops, and warehouses[5]. - The overall gross margin dropped from approximately 41.2% in the previous year to about 26.0% in the current period, primarily due to a reduction in gross margin for elderly care home projects and the absence of higher-margin medical center renovation projects[52]. - There were no significant unrecognized deferred tax assets and liabilities as of September 30, 2021[33]. - There were no significant investments, acquisitions, or disposals of subsidiaries during the period, nor any major future capital expenditure plans[65].
K W NELSON GP(08411) - 2021 Q3 - 季度财报