Revenue Performance - For the three months ended June 30, 2021, the group's revenue increased from approximately HKD 57.33 million to approximately HKD 91.11 million, representing a growth of 58.8%[5] - The increase in revenue was primarily driven by installation project revenues, which rose by approximately HKD 43.93 million during the reporting period[5] - Revenue for the three months ended June 30, 2021, was HKD 91,109,000, a 59% increase from HKD 57,325,000 for the same period in 2020[36] - Installation services generated HKD 71,637,000 in revenue, up from HKD 27,706,000, representing a 158% increase year-over-year[36] - Revenue cost increased by approximately HKD 27.71 million or 58.50% to about HKD 75.08 million for the three months ended June 30, 2021[58] Profit and Loss - The comprehensive loss attributable to shareholders amounted to approximately HKD 0.04 million, a decrease of about HKD 2.75 million or 101.48% compared to a profit of approximately HKD 2.71 million for the same period in 2020[6] - The company reported a net loss before tax of approximately HKD 1.49 million, compared to a profit of HKD 3.14 million for the same period in 2020[6] - The company reported a slight loss attributable to equity holders of approximately HKD 0.04 million for the three months ended June 30, 2021, compared to a profit of HKD 2.71 million for the same period in 2020, reflecting a significant increase in normalized profit to approximately HKD 6.95 million, up from HKD 2.71 million[53] - Gross profit for the three months ended June 30, 2021, was approximately HKD 16.03 million, compared to HKD 9.95 million for the same period in 2020, reflecting a gross margin improvement[6] - Gross profit rose by approximately HKD 6.08 million or 61.11% to about HKD 16.03 million, with a slight increase in gross margin from 17.36% to 17.60%[59] Expenses - The company incurred listing expenses of approximately HKD 6.99 million related to its proposed transfer from GEM to the main board[5] - Administrative and other operating expenses increased to approximately HKD 7.73 million from HKD 6.12 million in the previous year[6] - Administrative and other operating expenses increased by approximately HKD 1.61 million or 26.31% to about HKD 7.73 million, attributed to various factors including employee salaries and office expenses[60] - Financing costs for the three months ended June 30, 2021, were approximately HKD 0.15 million, up from HKD 0.06 million in 2020, due to increased interest expenses from bank loans and lease liabilities[61] - Income tax expenses increased by approximately HKD 1.10 million or 255.81% to about HKD 1.53 million, primarily due to non-deductible expenses related to the proposed listing transfer[63] Corporate Governance - The audit committee has reviewed the quarterly performance report and confirmed compliance with applicable accounting standards and GEM listing rules[84] - The company has adhered to the corporate governance code principles, except for the separation of roles between the chairman and CEO[82] - The audit committee consists of three independent non-executive directors, ensuring independent review and oversight of financial reporting[84] Market and Business Strategy - The company continues to focus on expanding its installation engineering services and exploring new market opportunities in Hong Kong[9] - The company aims to enhance its position as a leading electromechanical engineering service provider in Hong Kong, focusing on sustainable business growth and market expansion[55] - The company plans to utilize funds raised from the GEM listing to expand its business and strengthen its market position, contributing to growth in business scale and profitability[55] - The company remains optimistic about the overall fire protection market in Hong Kong and will continue to improve internal processes and technical infrastructure to maximize returns from existing operations[55] Financial Reporting Standards - The company adopted the revised Hong Kong Financial Reporting Standards (HKFRS) effective from January 1, 2021, including HKFRS 16 related to COVID-19 rent concessions[11] - The company has chosen to apply the practical expedient for all eligible rent concessions, which will not require reassessment of the lease liability discount rate[16] - The revised HKFRS 16 allows for rent concessions directly resulting from the COVID-19 pandemic to be accounted for without being classified as lease modifications[15] - The company anticipates that the application of the revised standards will not have a significant impact on the consolidated financial statements[17] - The company is currently evaluating the impact of the newly issued but not yet effective revised HKFRS on its financial statements[22] - The revised HKFRS 1 clarifies the classification of liabilities as current or non-current based on rights existing at the end of the reporting period[20] - The company has not early adopted any of the revised standards that are not yet effective, intending to apply them upon their effective date[19] - The practical expedient for rent concessions is applicable only to concessions that meet specific criteria related to the timing and nature of the lease payments[15] - The company expects that the future application of these revisions will not significantly affect the consolidated financial statements[23] Shareholder Information - Major shareholders include Success Step with 42.37% and Noble Capital with 40.13% of the issued share capital[74] - Mr. Pan Zhengqiang holds 481,500,000 shares, representing 40.13% of the issued share capital[76] - Legend Advanced holds 90,000,000 shares, accounting for 7.50% of the issued share capital[76] - Ms. Deng Anna Man Li, as the spouse of Mr. Pan Zhengqiang, is deemed to have an interest in 508,500,000 shares, which is 42.37% of the issued share capital[76] - The total number of issued shares as of June 30, 2021, is 1,200,000,000[77] - No major shareholders or high-holding shareholders were reported other than those disclosed[77] - The company did not purchase, sell, or redeem any shares during the reporting period[78] Risk Management - The company maintains a prudent cash management policy to ensure readiness for future growth opportunities[65] - The company does not face significant foreign exchange risks as all revenue-generating operations and borrowings are primarily transacted in HKD[66] - As of June 30, 2021, there were no significant contingent liabilities reported[67] - The company has not engaged in any business that directly or indirectly competes with its operations during the reporting period[80]
荧德控股(08535) - 2022 Q1 - 季度财报