Financial Performance - For the nine months ended December 31, 2019, the group's revenue was HKD 80,431,000, a decrease of 18.7% compared to HKD 98,988,000 for the same period in 2018[4] - The gross profit for the nine months was HKD 7,338,000, down 63.5% from HKD 20,106,000 in the previous year[4] - The group reported a loss before tax of HKD 8,428,000 for the nine months, compared to a profit of HKD 3,450,000 in the same period of 2018[4] - Total comprehensive loss for the period was HKD 8,428,000, compared to a total comprehensive income of HKD 3,000,000 for the same period in 2018[4] - Basic and diluted loss per share for the nine months was HKD 0.65, compared to earnings of HKD 0.23 per share in the previous year[4] - The company incurred a loss attributable to owners of HKD 8,428,000 for the nine months ended December 31, 2019, compared to a profit of HKD 3,000,000 for the same period in 2018[25] - The company recorded a net loss of approximately HKD 8.4 million for the nine months ended December 31, 2019, compared to a net profit of approximately HKD 3 million for the same period in 2018[38] Revenue Breakdown - The company reported a total revenue of approximately HKD 80,431,000 for the nine months ended December 31, 2019, a decrease of 18.1% compared to HKD 98,988,000 for the same period in 2018[19] - The construction management services generated revenue of HKD 7,377,000 for the three months ended December 31, 2019, down 79.1% from HKD 35,304,000 in the same period of 2018[19] - The company’s total revenue for the three months ended December 31, 2019, was HKD 7,377,000, with no revenue from consulting and maintenance services during this period[19] - Total revenue decreased by approximately HKD 18.6 million or 18.7% to approximately HKD 80.4 million for the nine months ended December 31, 2019, compared to HKD 99 million for the same period in 2018[29] - Construction management service revenue decreased by approximately HKD 15.9 million or 16.4% to approximately HKD 80.4 million, primarily due to the completion of a project in Tseung Kwan O, resulting in a revenue decrease of approximately HKD 18.1 million[30] Expenses and Costs - Administrative expenses for the nine months were HKD 13,717,000, a decrease of 8.1% from HKD 14,939,000 in 2018[4] - The total employee costs for the nine months ended December 31, 2019, were HKD 12,908,000, slightly down from HKD 13,088,000 in the same period of 2018[21] - Service costs decreased by approximately HKD 5.8 million or 7.3% to approximately HKD 73.1 million, mainly due to a reduction in consumables costs by approximately HKD 11.8 million[31] - Administrative expenses decreased by approximately HKD 1.2 million or 8.2% to approximately HKD 13.7 million, primarily due to reductions in legal and professional fees, rent expenses, and bank charges[35] - Financing costs increased by approximately HKD 400,000 or 19.6% to approximately HKD 2.3 million, mainly due to increased bank borrowings for early-stage project financing[36] Equity and Dividends - The group had total equity of HKD 89,912,000 as of December 31, 2019, down from HKD 98,358,000 at the end of 2018[6] - The company did not declare any dividends for the nine months ended December 31, 2019, consistent with the previous year[24] - The board did not declare or propose any dividends for the nine months ended December 31, 2019, and 2018[39] Business Strategy and Market Conditions - The company continues to focus on providing design, procurement, and installation services for water circulation systems[8] - The company plans to explore opportunities to expand its business into Hong Kong, Macau, and other construction-related contracting services in China to maintain sustainable growth[28] - The company faced challenges due to external macroeconomic slowdowns and increased competition in project acquisition amid the COVID-19 pandemic[27] - The company continues to monitor market conditions amid the challenges posed by the COVID-19 pandemic and will assess business objectives and the use of net proceeds accordingly[54] Compliance and Governance - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable disclosure requirements[9] - The group has adopted the cumulative effect transition method for the new lease accounting standard, with minimal impact on financial performance[13] - The audit committee reviewed the unaudited condensed consolidated results for the nine months ending December 31, 2019, and found them to be prepared in accordance with applicable accounting standards[65] - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM Listing Rules[56] - The company maintains a commitment to good corporate governance, believing it is essential for long-term success and sustainable development[59] Use of Proceeds - As of December 31, 2019, the net proceeds from the IPO amounted to approximately HKD 38 million, with HKD 15.3 million utilized and HKD 22.7 million remaining[51] - The company allocated HKD 19.4 million for consolidating its industry position and expanding its business, with only HKD 0.8 million utilized[52] - HKD 7.6 million was fully used to repay bank loans, while HKD 3.6 million was utilized to strengthen the company's technology and project management capabilities[52] Other Financial Information - The average borrowing rate applied to lease liabilities as of April 1, 2019, was 5.875%[17] - The company recognized lease liabilities interest expense of approximately HKD 84,000 and depreciation of right-of-use assets of approximately HKD 1,474,000 for the nine months ended December 31, 2019[18] - The company’s contract costs for the nine months ended December 31, 2019, included approximately HKD 73,093,000, a decrease from HKD 77,496,000 in the same period of 2018[21] - Other income increased from approximately HKD 192,000 to approximately HKD 235,000, mainly due to an increase in interest income from fixed deposits[34] - The company has not engaged in any arrangements that would allow directors to benefit from purchasing shares or debt securities during the nine months ending December 31, 2019[50] - No share options were granted, exercised, expired, or lapsed under the share option scheme during the nine months ending December 31, 2019[49] - The company has not purchased, sold, or redeemed any of its listed securities during the nine months ending December 31, 2019[55]
浩柏国际(08431) - 2020 Q3 - 季度财报