Financial Performance - For the three months ended March 31, 2019, the total revenue of Kinetix Systems Holdings Limited was approximately HKD 51.66 million, an increase of about 4.9% compared to the same period in 2018[10]. - The gross profit for the same period was approximately HKD 11.38 million, a decrease of about 10.4% year-on-year[11]. - The net profit recorded for the three months was approximately HKD 3.90 million, reflecting a slight increase of about 1% compared to the previous year[11]. - The basic and diluted earnings per share for the period were HKD 0.49, down from HKD 0.64 in the same period last year[14]. - The total comprehensive income for the period was HKD 3.88 million, compared to HKD 3.85 million in the previous year[14]. - The group reported total revenue of HKD 51,662 thousand for the three months ended March 31, 2019, an increase of 4.9% compared to HKD 49,259 thousand for the same period in 2018[39]. - Total revenue for the quarter ended March 31, 2019, was approximately HKD 51.7 million, an increase of about HKD 2.4 million or 4.9% from HKD 49.3 million in the same quarter of 2018[66]. Revenue Breakdown - Revenue from IT infrastructure solutions was HKD 25,094 thousand, while IT development solutions and IT maintenance and support services generated HKD 19,092 thousand and HKD 7,476 thousand, respectively[39]. - Revenue from IT infrastructure solutions decreased by approximately 14.3% to about HKD 25.1 million, accounting for approximately 48.6% of total revenue[60]. - Revenue from IT development solutions increased by approximately 52.8% to about HKD 19.1 million, representing approximately 37.0% of total revenue[61]. - The group’s revenue from Hong Kong and Macau was HKD 47,784 thousand, a slight decrease from HKD 48,479 thousand in the previous year[37]. - The group’s revenue from Singapore was HKD 193 thousand, with no revenue reported for the same period in 2018[37]. Expenses and Costs - The company’s administrative and general expenses for the quarter were approximately HKD 5.39 million, compared to HKD 6.53 million in the same period last year, indicating a reduction in costs[14]. - The company’s sales costs for the quarter were approximately HKD 40.28 million, up from HKD 36.55 million in the previous year[14]. - Selling expenses increased by approximately 16.7% to about HKD 1.4 million, primarily due to an increase in the average number of sales staff[68]. - Administrative expenses decreased by approximately 16.9% to about HKD 5.4 million, mainly due to a reduction in employee costs[69]. - The group’s income tax expense for the three months ended March 31, 2019, was HKD 651 thousand, compared to HKD 548 thousand for the same period in 2018[45]. Dividends and Shareholder Information - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2019[12]. - The group did not declare an interim dividend for the three months ended March 31, 2019, compared to no dividend declared for the same period in 2018[47]. - The board of directors has resolved not to declare any dividends for the three months ended March 31, 2019[96]. - As of March 31, 2019, the major shareholder Vigorous King Limited held approximately 75% of the company's shares, equivalent to 600,000,000 shares[85]. Assets and Liabilities - The group recognized right-of-use assets and lease liabilities amounting to HKD 5,479 thousand and HKD 6,162 thousand, respectively, as of January 1, 2019, due to the adoption of HKFRS 16[33]. - The group’s total liabilities increased due to the recognition of lease liabilities under the new accounting standard[33]. - The company had cash and cash equivalents of approximately HKD 100 million as of March 31, 2019, compared to approximately HKD 63.4 million as of December 31, 2018[72]. - The group had no pledged assets as of March 31, 2019, consistent with December 31, 2018[77]. Employment and Costs - As of March 31, 2019, the group had a total of 89 employees, an increase from 85 employees as of March 31, 2018[74]. - Total employee costs for the quarter were approximately HKD 8.8 million, compared to approximately HKD 8.7 million in the same quarter of 2018[74]. Corporate Governance and Risks - The board believes that the dual role of the chairman and CEO held by Mr. Yu is in the best interest of the group, despite a deviation from corporate governance code A.2.1[88]. - The company has not made any insurance arrangements for potential legal actions against its directors, considering the risks manageable[90]. - The company anticipates facing multiple risks and uncertainties that may negatively impact its business and overall short-term performance[64]. - There were no known competing business interests from the company's directors or major shareholders as of the 2019 quarter[91]. IPO and Financial Review - The net proceeds from the initial public offering amounted to approximately HKD 34.1 million after deducting underwriting fees, commissions, and other listing expenses[93]. - As of March 31, 2019, the company has utilized approximately HKD 60,000 of the IPO proceeds[93]. - The audit committee has reviewed the unaudited financial statements for the three months ended March 31, 2019, and confirmed compliance with applicable accounting standards and GEM listing rules[95]. Changes in Management - Significant changes in the board include the resignation of Mr. Zhang Huajie as an independent non-executive director effective May 8, 2019[98].
倢冠控股(08606) - 2019 Q1 - 季度财报