广骏集团控股(08516) - 2022 Q1 - 季度财报

Company Information This chapter details Kwong Chun Group Holdings Limited's fundamental corporate information, including its board, committees, and key professional contacts - The company's board of directors comprises executive directors Mr. Ha Chak Hung (Chairman), Mr. Yip Chu Shing (Chief Executive Officer), Ms. Tong Man Chun, and three independent non-executive directors Ms. Tang Shui Man, Dr. Fok Wai Sun, and Mr. Yuk Kai Yiu[6] - The company's auditor is BDO Limited, Hong Kong[7] Executive Summary This chapter summarizes the company's Q1 2021 financial performance, noting a revenue decrease, gross profit turnaround, and narrowed net loss due to reduced wage costs Key Financial Indicators for Q1 2021 | Indicator | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | | :--- | :--- | :--- | | Revenue | Approx. HKD 8.7 Million | Approx. HKD 11.4 Million | | Gross Profit / (Loss) | Approx. HKD 0.1 Million | Approx. (HKD 1.6) Million | | Net Loss Attributable to Owners of the Company | Approx. HKD 2.4 Million | Approx. HKD 5.1 Million | - The decrease in revenue was primarily attributed to the completion of three maintenance projects, the negative impact of social unrest and the COVID-19 pandemic on project progress, and the overall economic recession in Hong Kong[10] - The increase in gross profit and reduction in net loss were mainly due to a decrease in wage costs[10] Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement details Q1 2021 income, costs, and losses, showing a positive gross profit and narrowed losses despite revenue decline, driven by cost control Consolidated Statement of Profit or Loss Summary (Three Months Ended June 30) | Item (HKD Thousand) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Revenue | 8,659 | 11,387 | | Cost of Sales | (8,556) | (13,012) | | Gross Profit / (Loss) | 103 | (1,625) | | Other Income | 769 | 340 | | Administrative Expenses | (3,006) | (3,362) | | Finance Costs | (262) | (431) | | Loss Before Tax | (2,396) | (5,078) | | Loss for the Period | (2,396) | (5,078) | - Basic and diluted loss per share improved from 1.06 HK cents in the prior year period to 0.50 HK cents[11] Consolidated Statement of Changes in Equity This statement illustrates changes in shareholders' equity for Q1 2021, showing a decrease from HKD 32.53 million to HKD 30.14 million due to a HKD 2.4 million loss - As of June 30, 2021, total equity attributable to equity holders of the company was approximately HKD 30.14 million, a decrease from HKD 32.53 million as of March 31, 2021[14] - The decrease in total equity for the quarter was entirely due to the HKD 2,396 thousand loss recorded during the period[14] Notes to the Consolidated Financial Statements This section details the financial statements' basis, accounting policies, and key items, covering general information, revenue, tax, dividends, and loss per share - The Group is principally engaged in civil engineering works for road and highway-related infrastructure and structural maintenance works[16] Revenue by Business Segment (Three Months Ended June 30) | Business Type (HKD Thousand) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Maintenance Works | 8,659 | 11,387 | | Civil Engineering Works | — | — | | Total | 8,659 | 11,387 | - The Board does not recommend the payment of a dividend for the three months ended June 30, 2021[29] - No provision for Hong Kong Profits Tax has been made for the quarter as the Group had no estimated assessable profits[27] Management Discussion and Analysis Business Review and Outlook Management reviews the civil engineering business, noting adverse impacts from protests and COVID-19, and anticipates future government infrastructure projects despite intense market competition - The company's business was adversely affected by both public protests in Hong Kong and the COVID-19 pandemic during the reporting period, leading to delays in ongoing projects and a reduction in industry tender volumes[33] - Management noted intense market competition and low successful bid prices for maintenance projects, but believes this competitive environment is temporary and expects to continue tendering for civil engineering and maintenance projects to seek greater profits[33] Financial Review This section analyzes financial indicator changes, noting a 23.7% revenue decrease, a 34.6% cost of sales reduction, gross profit turnaround, and a narrowed loss for the period - Revenue decreased from HKD 11.4 million in the prior year period to HKD 8.7 million, primarily due to (i) the completion of three maintenance projects and one civil engineering project; (ii) the negative impact of social unrest and COVID-19; and (iii) the overall economic recession in Hong Kong[38] - Gross profit margin improved from -14.3% in the prior year period to 1.2% in the current period, mainly benefiting from a decrease in wage costs[40] - Finance costs decreased by 39.2% year-on-year to approximately HKD 0.262 million, primarily due to the repayment of bank and other borrowings[43] - Loss for the period improved from HKD 5.1 million in the prior year period to HKD 2.4 million, mainly due to reduced wage costs[45] Events After Reporting Period Post-reporting period, the company completed a placing of 91.2 million new shares at HKD 0.105 each, raising HKD 9.2 million for working capital and debt repayment Details of Placing | Item | Details | | :--- | :--- | | Agreement Date | June 16, 2021 | | Completion Date | July 5, 2021 | | Number of Placing Shares | 91,200,000 Shares | | Placing Price | HKD 0.105 per share | | Net Proceeds | Approx. HKD 9.2 Million | | Use of Proceeds | General working capital and debt repayment | - The placing shares represent approximately 15.97% of the enlarged issued share capital upon completion of the placing[49] Other Financial Information This section confirms no dividend for the quarter and states that foreign exchange risk is not significant due to Hong Kong-based, HKD-denominated operations - The Board does not recommend the payment of a dividend for the three months ended June 30, 2021[52] - As business activities are conducted solely in Hong Kong and primarily denominated in HKD, the Directors consider the Group's foreign exchange risk not significant[53] Other Information Corporate Governance and Compliance This section outlines corporate governance practices, confirming compliance with the Corporate Governance Code and directors' adherence to securities trading standards - The Board considers that the company has complied with all the principles and applicable code provisions of the Corporate Governance Code for the three months ended June 30, 2021[56] - The Audit Committee, comprising three independent non-executive Directors, has reviewed the unaudited results for the quarter and is of the opinion that they comply with applicable accounting standards and the GEM Listing Rules, and that adequate disclosures have been made[71] Share Capital and Equity-Related Information This section details share capital and equity information, confirming no share option activity or share transactions, and listing director and substantial shareholder interests - For the three months ended June 30, 2021, the company neither granted nor exercised any share options, nor did it purchase, sell, or redeem any of its shares[58][61] Directors' and Substantial Shareholders' Interests in Shares (as at June 30, 2021) | Name/Designation | Capacity | Number of Shares Held (Long Position) | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Ha Chak Hung | Interest in controlled corporation | 171,669,000 | 35.76% | | Mr. Yip Chu Shing | Interest in controlled corporation | 171,669,000 | 35.76% | | Chun Shing Holdings Limited | Beneficial owner | 171,669,000 | 35.76% |