WT集团(08422) - 2021 Q3 - 季度财报

Company Information Company Overview This section provides fundamental information about WT Group Holdings Limited, including board members, committee structures, registered office, principal place of business, legal advisors, auditors, and stock code - The company's Board of Directors comprises Executive Directors Mr. Kam Kin Pan (Chairman) and Mr. Hung Cheung Fai, along with three independent non-executive directors[2] - The company's auditor is National Auditing Firm Limited[3] - The company's shares are listed on the GEM of the Hong Kong Stock Exchange under stock code 8422[3] Financial Performance Consolidated Financial Statements The Group's unaudited consolidated financial statements for the nine months ended March 31, 2021, show a significant decrease in revenue but an increase in gross profit, leading to a narrowed net loss attributable to owners of HKD 2.22 million, an improvement from HKD 4.68 million in the prior period Summary of Results for the Nine Months Ended March 31, 2021 | Indicator | Nine Months Ended March 31, 2021 (HKD Thousands) | Nine Months Ended March 31, 2020 (HKD Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 21,014 | 50,812 | -58.6% | | Gross Profit | 2,563 | 1,122 | +128.4% | | Loss Before Income Tax | (2,284) | (5,406) | Loss narrowed | | Loss for the Period | (2,220) | (4,680) | Loss narrowed | | Basic Loss Per Share (HK Cents) | (0.22) | (0.47) | Loss narrowed | - As of March 31, 2021, total equity attributable to owners of the company was HKD 62.621 million, a decrease from HKD 64.841 million as of July 1, 2020, primarily due to the loss incurred during the period[5] Notes to the Financial Statements The notes to the financial statements provide detailed explanations of the results, indicating the Group's primary engagement in specialized and general building engineering in Hong Kong as a single operating segment, with details on revenue recognition, expense composition, taxation, and earnings per share calculation, noting no dividends were distributed during the period - The Group primarily engages in specialized and general building engineering in Hong Kong, with all operations considered a single operating segment, thus no segment information is presented[6][13] - For the nine months ended March 31, 2021, total employee benefit expenses were HKD 6.842 million, a decrease from HKD 7.570 million in the prior corresponding period[14][15] - The Directors do not recommend the payment of a dividend for the nine months ended March 31, 2021[21] Loss Per Share Calculation | Item | Nine Months Ended March 31, 2021 | Nine Months Ended March 31, 2020 | | :--- | :--- | :--- | | Loss Attributable to Owners of the Company (HKD Thousands) | (2,220) | (4,680) | | Weighted Average Number of Ordinary Shares | 1,000,000,000 | 1,000,000,000 | | Basic and Diluted Loss Per Share (HK Cents) | (0.22) | (0.47) | Management Discussion and Analysis Business Review and Future Prospects The Group engages in foundation, demolition, and general building engineering in Hong Kong, with net loss narrowing from HKD 4.7 million to HKD 2.2 million due to improved project mix leading to higher gross profit and reduced administrative expenses; management remains cautiously optimistic about long-term development despite industry challenges, focusing on core business and new opportunities - For the nine months ended March 31, 2021, the decrease in net loss was primarily due to increased gross profit from an improved project mix and reduced administrative expenses resulting from lower employee benefit expenses and depreciation[22] - Management anticipates that the Hong Kong construction industry will face challenges in the coming year, including intense competition and difficulties in securing contracts, which may impact financial performance[23] - The Group will continue to expand its market share, pursue more foundation and superstructure projects, adhere to prudent financial management principles, and may consider other investment opportunities to broaden its return base[23][24] Financial Review This section provides a detailed analysis of the period's financial performance, noting a 58.7% year-on-year revenue decrease due to fewer large contract projects, yet gross profit and margin significantly increased to 12.2% from 2.2% due to a more favorable project mix, while administrative expenses decreased by 16.7%, collectively narrowing the loss attributable to owners by 53.2% Financial Performance Review (Nine Months Ended March 31) | Indicator | 2021 (HKD Million) | 2020 (HKD Million) | Change | Reason | | :--- | :--- | :--- | :--- | :--- | | Revenue | 21.0 | 50.8 | -58.7% | Decrease in the number of large contract construction projects | | Gross Profit | 2.6 | 1.1 | +136.4% | Higher gross profit generated from project mix | | Gross Margin | 12.2% | 2.2% | Increase | Higher gross profit generated from project mix | | Administrative Expenses | 5.5 | 6.6 | -16.7% | Decrease in employee benefit expenses and depreciation | | Loss Attributable to Owners | 2.2 | 4.7 | -53.2% | Increase in gross profit and decrease in administrative expenses | Other Disclosures and Corporate Governance Disclosure of Interests This section discloses the shareholdings of directors, chief executives, and substantial shareholders, noting that controlling shareholder Tak Wing Ventures Limited (jointly controlled by Mr. Hung Cheung Fai, Mr. Yip Siu Ching (deceased), and Mr. Kam Kin Pan) holds 62.66% of the company's shares, with China Silver Asset Management Limited also being a substantial shareholder holding 12.31% - Executive Directors Mr. Hung Cheung Fai, Mr. Yip Siu Ching (deceased), and Mr. Kam Kin Pan are deemed to collectively hold 626,600,000 shares, representing 62.66% of the total share capital, through their jointly controlled holding company, Tak Wing[30][31] - Substantial shareholder China Silver Asset Management Limited and its associated fund, CS Asia Opportunities Master Fund, hold 123,140,000 shares, representing 12.31% of the company's total share capital[33] Corporate Governance and Other Information This section covers various corporate governance matters and significant events, including the company's restoration of the 25% minimum public float requirement on March 22, 2021, a reported deviation from the Corporate Governance Code regarding the absence of a Chief Executive Officer, and key changes such as the passing of the former Chairman, appointment of a new Chairman, and auditor change, with the Audit Committee having reviewed the quarterly financial statements - On March 22, 2021, the company restored its public float to approximately 25.03% by the controlling shareholder selling 1.2% of shares, meeting GEM Listing Rules requirements[36] - The company reported a deviation from Corporate Governance Code provision A.2.1 due to the absence of a Chief Executive Officer, where the Board's management and daily business management responsibilities are not clearly segregated, which the Board believes contributes to management efficiency[39] - Several significant changes occurred during the reporting period: former Chairman Mr. Yip passed away on September 24, 2020; Executive Director Mr. Kam Kin Pan was appointed Compliance Officer and Authorized Representative on September 25, 2020, and subsequently Chairman on November 2, 2020[45][46] - The company's auditor changed from PricewaterhouseCoopers to National Auditing Firm Limited, effective July 9, 2020[47] - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the quarter and considers them to be prepared in compliance with applicable accounting standards and GEM Listing Rules, with adequate disclosures made[49]