Financial Performance - For the three months ended March 31, 2021, the total revenue of Kinetix Systems Holdings Limited was approximately HKD 59.11 million, a decrease of about 29.4% compared to the same period in 2020[9]. - The gross profit for the same period was approximately HKD 13.49 million, an increase of about 27.4% year-over-year[10]. - The company recorded a net loss of approximately HKD 0.78 million for the three months ended March 31, 2021, compared to a net loss of HKD 1.02 million in the same period of 2020[10]. - The basic and diluted loss per share for the period was HKD 0.05, compared to earnings of HKD 0.01 per share in the same period of 2020[12]. - The company’s total comprehensive loss for the period was HKD 0.78 million, compared to HKD 1.02 million in the same period of 2020[12]. - The group recorded a loss of approximately HKD 0.8 million in the 2021 quarter, an improvement from a loss of approximately HKD 1.0 million in the 2020 quarter[66]. Revenue Breakdown - Revenue from IT infrastructure solutions was HKD 30,504,000, while IT development solutions generated HKD 17,427,000 for the three months ended March 31, 2021[25]. - Revenue from IT infrastructure solutions decreased by approximately 70.5% to about HKD 17,400,000, accounting for approximately 29.5% of total revenue in the 2021 quarter[52]. - Revenue from IT development solutions increased by approximately 146.0% to about HKD 30,500,000, representing approximately 51.6% of total revenue in the 2021 quarter[53]. - Revenue from IT maintenance and support services rose by approximately 120.0% to about HKD 7,700,000, making up approximately 13.1% of total revenue in the 2021 quarter[57]. - Revenue from the e-commerce business involving entertainment products decreased by approximately 61.8% to about HKD 3,400,000, which accounted for approximately 5.8% of total revenue in the 2021 quarter[58]. Expenses and Costs - The company’s administrative and general expenses for the period were approximately HKD 11.43 million, compared to HKD 8.92 million in the same period of 2020[12]. - The cost of IT solution services was HKD 17,039,000, an increase from HKD 9,701,000 in the same period last year, indicating a significant rise in operational costs[34]. - Selling expenses for the 2021 quarter were approximately HKD 2.9 million, an increase of about HKD 1.4 million or 93.3% compared to the 2020 quarter (2020: HKD 1.5 million)[63]. - Administrative expenses rose to approximately HKD 11.4 million in the 2021 quarter, an increase of about HKD 2.5 million or 28.1% from the 2020 quarter (2020: HKD 8.9 million)[64]. Dividends and Equity - The board of directors did not recommend the payment of an interim dividend for the three months ended March 31, 2021[10]. - The company did not recommend the payment of dividends for the quarter ended March 31, 2021, consistent with the previous year[40]. - As of March 31, 2021, the total equity attributable to owners of the company was approximately HKD 108.86 million[13]. Cash and Borrowings - As of March 31, 2021, the company had bank borrowings of HKD 4,326,000, down from HKD 6,778,000 as of December 31, 2020[43]. - As of March 31, 2021, the group had cash and cash equivalents of approximately HKD 56.8 million, up from approximately HKD 35.8 million as of December 31, 2020[67]. - The group's debt-to-equity ratio as of March 31, 2021, was 65.6%, significantly higher than 19.3% as of December 31, 2020[67]. Corporate Governance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15[89]. - The chairman and CEO roles are held by the same individual, which deviates from the corporate governance code[89]. - The board believes that the risk of legal actions against directors is relatively low due to effective risk management systems[91]. Future Plans and Challenges - The company plans to review its accounting policies in light of new Hong Kong Financial Reporting Standards that have come into effect during the current accounting period[17]. - The company plans to integrate specific IT solutions with IoT and cloud computing technologies to participate in smart city projects domestically and internationally[59]. - The company experienced challenges due to the COVID-19 pandemic, impacting order volume and pricing strategies, but views these challenges as opportunities for future business development[59]. - The company plans to continue evaluating the impact of COVID-19 on operations and financial performance[97].
倢冠控股(08606) - 2021 Q1 - 季度财报