Financial Performance - For the nine months ended December 31, 2019, the company reported total revenue of HKD 46,672,000, a decrease of 5.8% compared to HKD 49,563,000 for the same period in 2018[15] - The gross profit for the nine months was HKD 15,863,000, down 18.0% from HKD 19,486,000 in the previous year[15] - The company incurred a net loss of HKD 3,251,000 for the nine months, compared to a profit of HKD 914,000 in the same period of 2018[15] - The basic and diluted loss per share for the nine months was HKD (0.34), compared to earnings of HKD 0.12 per share in the prior year[15] - The company reported a total comprehensive loss attributable to owners of the company of HKD 3,207,000 for the nine months, compared to a total comprehensive income of HKD 1,034,000 in the same period of 2018[15] - Revenue from customer contracts for the nine months ended December 31, 2019, totaled HKD 46,672,000, a decrease of 5.8% compared to HKD 49,563,000 for the same period in 2018[59] - Gross profit fell from approximately HKD 19.5 million for the nine months ended December 31, 2018, to approximately HKD 15.9 million for the same period in 2019, a decrease of about 18.5%[85] - The overall gross profit margin decreased from approximately 39.3% for the nine months ended December 31, 2018, to approximately 34.0% for the same period in 2019[85] - The company reported a pre-tax loss of HKD 1,422,000 for the nine months ended December 31, 2019, compared to a pre-tax profit of HKD 412,000 for the same period in 2018[62] Expenses and Costs - The service cost for the nine months was HKD (30,809,000), slightly up from HKD (30,077,000) in the previous year[15] - General and administrative expenses rose to HKD (18,182,000) from HKD (12,622,000) in the previous year, reflecting a 43.9% increase[15] - Employee costs for the nine months ended December 31, 2019, amounted to HKD 35,241,000, an increase of 9.0% from HKD 32,299,000 in the same period of 2018[62] - The company incurred non-recurring listing expenses of approximately HKD 5.4 million for the nine months ended December 31, 2018, with no such expenses recognized for the same period in 2019[88] - Financing costs for the nine months ended December 31, 2019, totaled HKD 117,000, a decrease from HKD 147,000 in the same period of 2018[62] - Income tax expenses decreased by approximately 81.2% from about HKD 1.0 million for the nine months ended December 31, 2018, to about HKD 0.2 million for the same period in 2019[90] Equity and Assets - As of December 31, 2019, the company had total equity of HKD 67,576,000, which includes retained earnings of HKD 8,311,000[18] - The company’s total assets as of December 31, 2019, were reported at HKD 72,312,000, reflecting a significant increase from previous periods[18] - The company’s share capital increased to HKD 9,600,000 as of December 31, 2019, from HKD 10,000,000 at the beginning of the period[18] - The company reported other comprehensive income of HKD 44,000 for the nine months ending December 31, 2019[18] - The current ratio decreased from approximately 11.0 times on March 31, 2019, to 6.4 times on December 31, 2019, primarily due to a decrease in bank and cash balances and an increase in contract liabilities and lease liabilities[94] - As of December 31, 2019, the company had no borrowings, resulting in a capital debt ratio of 0% due to funds raised from share issuance and ongoing efforts to control financial leverage[94] Business Operations - The company is primarily engaged in providing comprehensive structural and geotechnical engineering consultancy services[20] - The company operates a single business segment, providing comprehensive structural and geotechnical engineering consulting services[56] - Almost all external revenue for the nine months ended December 31, 2019, was generated from services provided in Hong Kong, with no further regional data presented[57] - The company has not provided any further analysis of its single business segment beyond the overall performance and financial position[56] - The company’s non-current assets are primarily located in Hong Kong, with no additional regional data presented[57] Future Outlook - The company plans to focus on market expansion and new product development to improve future performance[15] - The company anticipates a challenging business environment moving forward, focusing on identifying new clients and projects to strengthen its market position[80] - The company aims to leverage funds raised from its share offering to secure more engineering consulting contracts and expand its market share[80] Corporate Governance - The audit committee, established on August 27, 2018, consists of three independent non-executive directors and has reviewed the unaudited condensed consolidated financial statements for the nine months ending December 31, 2019[137] - The company has complied with the corporate governance code as per GEM Listing Rules, except for a deviation regarding insurance for directors[132] - No securities transactions by directors violated the trading rules during the nine months ending December 31, 2019[133] - There were no business or interest conflicts reported by directors or major shareholders as of December 31, 2019[127] Shareholder Information - The company has a total issued share capital of 960,000,000 shares as of December 31, 2019, with Wanchai Development Limited holding approximately 49.07% of the shares[124] - Dr. Chan and Mr. Leung own approximately 68.2% and 31.8% of Wanchai Development Limited, respectively, which in turn holds 471,072,000 shares of the company[126] - No dividends were recommended by the board for the nine months ending December 31, 2019[134] - There were no share options granted or unexercised as of December 31, 2019[136] - The company did not purchase, sell, or redeem any of its listed securities during the nine months ending December 31, 2019[131] Accounting Policies - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from April 1, 2019, impacting its accounting policies[22] - The company’s financial statements are prepared in accordance with Hong Kong Generally Accepted Accounting Principles[22] - The implementation of HKFRS 16 resulted in a decrease in retained earnings by HKD 165,000 as of April 1, 2019[18] - The company adopted the Hong Kong Financial Reporting Standard 16, resulting in a lease liability of HKD 4,472,000 as of April 1, 2019[47] - The weighted average incremental borrowing rate applied by the company was 3.86% for discounting lease liabilities[45] Risk Management - The company maintained a prudent treasury policy, continuously assessing customer credit and financial conditions to mitigate credit risk[95] - The company had no pledged assets as of December 31, 2019[105] - The company’s operations are primarily conducted in HKD, and the directors believe that foreign exchange exposure has minimal impact on the company[102]
WAC HOLDINGS(08619) - 2020 Q3 - 季度财报