Financial Performance - The group's revenue decreased by approximately HKD 57 million or 40.1%, from HKD 142.2 million for the three months ended June 30, 2020, to HKD 85.2 million for the three months ended June 30, 2021[22]. - Revenue for the three months ended June 30, 2021, was HKD 85,174,000, a decrease of 40.0% compared to HKD 142,203,000 for the same period in 2020[33]. - The company recorded a profit of HKD 200,000 for the three months ended June 30, 2021, compared to HKD 10,000,000 for the same period in 2020[30]. - The pre-tax profit for the period was 246 thousand HKD, a significant decline from 10,019 thousand HKD in the previous year[53]. - Administrative expenses increased by 12.1% to HKD 3,689,000 from HKD 3,342,000 in the prior year[28]. - Financing costs decreased by 18.2% to HKD 905,000 from HKD 1,071,000 year-on-year[29]. - Tax expenses significantly dropped by 92.6% to HKD 96,000 from HKD 1,300,000 in the same period last year[30]. - The total employee costs decreased to 37,729 thousand HKD from 40,117 thousand HKD, a reduction of 5.9%[48]. - The tax expense for the period was 96 thousand HKD, down from 1,349 thousand HKD, indicating a decrease of 92.9%[49]. - No dividends were declared or proposed for the three months ended June 30, 2021, consistent with the previous year[54]. Cost Management - Direct costs reduced by approximately HKD 48.9 million or 37.7%, from HKD 129.7 million to HKD 80.8 million during the same periods[23]. - Direct costs for the same period were HKD 80,752,000, down 37.8% from HKD 129,713,000 year-on-year[33]. - The company is taking measures to strengthen cost control, particularly on materials and fuel costs, to achieve profitability and positive cash flow[31]. Market Conditions - The ongoing COVID-19 pandemic continues to create uncertainty in the market, impacting the construction industry due to supply chain disruptions and labor shortages[20]. - The board anticipates a challenging outlook for the construction industry, with ongoing pressure on contract amounts due to intense competition[31]. - The business activities of the group were not severely disrupted by the pandemic, and construction projects progressed well during the review period[20]. Corporate Governance - The company confirmed compliance with the corporate governance code during the three months ended June 30, 2021[77]. - The company has established a good corporate governance framework to balance the interests of shareholders, customers, and employees[76]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial performance for the three months ended June 30, 2021[74]. - The company adopted a code of conduct for securities transactions by directors, which has been fully complied with during the reporting period[73]. Operational Highlights - The group completed 12 new contracts during the review period, totaling HKD 3.5 million, bringing the total number of contracts to 59 with a total value of HKD 1,114.2 million[19]. - The group operates primarily in the civil engineering construction industry, providing site formation, road and drainage works, and structural engineering services in Hong Kong[17]. - The company has a single operating segment focused on civil engineering construction services in Hong Kong[44]. - The group is recognized as a contractor by the Hong Kong government and is registered as a general building contractor and specialist contractor in site formation works[17]. Shareholder Information - Major shareholder Chrysler Investments Limited holds 260,000,000 shares, representing 65.0% of the company's equity[62]. - The weighted average number of ordinary shares for the calculation of basic earnings per share remained at 400,000 thousand shares[53]. - The company did not recommend any dividend payment for the three months ended June 30, 2021, consistent with the previous year[66]. - No shares were repurchased by the company or its subsidiaries during the three months ended June 30, 2021[67]. - The company has not granted any share options under the share option scheme since its adoption on January 24, 2018[68]. Other Income - Other income decreased by approximately HKD 3.1 million or 83.8%, from HKD 3.7 million to HKD 600,000, primarily due to the termination of government subsidies under the Employment Support Scheme[25]. - Compensation income increased to 344 thousand HKD from 219 thousand HKD, representing a growth of 56.9% year-over-year[45].
常满控股(08523) - 2022 Q1 - 季度财报