Financial Performance - For the nine months ended December 31, 2020, the company reported total revenue of HKD 57,455,000, an increase of 23% compared to HKD 46,672,000 for the same period in 2019[13]. - The gross profit for the nine months was HKD 22,082,000, representing a 39% increase from HKD 15,863,000 in the previous year[13]. - The company achieved a profit before tax of HKD 7,335,000 for the nine months, compared to a loss of HKD 3,056,000 in the same period of 2019[13]. - The net profit attributable to owners for the nine months was HKD 6,740,000, a significant turnaround from a loss of HKD 3,251,000 in the prior year[13]. - The basic and diluted earnings per share for the nine months were HKD 0.70, compared to a loss per share of HKD 0.34 in the same period of 2019[13]. - The company reported other income of HKD 5,736,000 for the nine months, up from HKD 864,000 in the previous year[13]. - The total comprehensive income for the nine months was HKD 6,636,000, compared to a total comprehensive loss of HKD 3,207,000 in the prior year[13]. - The company recorded a foreign exchange loss of HKD 104,000 for the nine months, compared to a gain of HKD 44,000 in the previous year[13]. - The group reported total revenue of HKD 57,455,000 for the nine months ended December 31, 2020, an increase of 23% compared to HKD 46,672,000 for the same period in 2019[36]. - Revenue from new property construction was HKD 35,406,000 for the nine months ended December 31, 2020, up 29% from HKD 27,507,000 in the previous year[36]. - The group’s total employee costs amounted to HKD 40,228,000 for the nine months ended December 31, 2020, representing an increase of 14% from HKD 35,241,000 in the same period of 2019[44]. - The group’s revenue from renovation and maintenance of existing properties was HKD 10,365,000 for the nine months ended December 31, 2020, down 33% from HKD 15,437,000 in the previous year[36]. - The group’s revenue from other services, including expert witness services and e-commerce consulting, was HKD 11,684,000 for the nine months ended December 31, 2020, significantly up from HKD 3,728,000 in the same period of 2019[36]. - The company recorded a profit attributable to owners of HKD 6.74 million for the nine months ended December 31, 2020, compared to a loss of HKD 3.25 million in the same period of 2019[57]. - Basic and diluted earnings per share for the nine months ended December 31, 2020, were HKD 0.70, compared to a loss of HKD 0.34 per share in the same period of 2019[57]. - The company did not recommend the payment of dividends for the nine months ended December 31, 2020, consistent with the previous year[56]. Operational Highlights - The company plans to continue expanding its market presence and investing in new product development to drive future growth[13]. - The company continues to explore variable interest entity arrangements for a social-based e-commerce new retail online platform, aiming to provide quality product selections and professional health management solutions[64]. - The company is focused on expanding business opportunities with existing clients and is seeking to increase the variety of consulting services offered[62]. - The company anticipates a challenging business and operating environment in the future while continuing to pursue more engineering consulting service contracts to expand market share[62]. - The company has delayed plans to lease additional office space due to the COVID-19 pandemic and social unrest in Hong Kong[97]. - The company is investing $F million in R&D for new technologies aimed at enhancing user experience[136]. - Market expansion efforts are projected to increase market share by G% in the next fiscal year[136]. - The company is exploring potential acquisitions to strengthen its position in the market, with a budget of $H million allocated for this purpose[136]. - Strategic partnerships are being formed to enhance distribution channels, expected to boost sales by I%[136]. - The company has implemented cost-cutting measures that are projected to save $J million annually[136]. - Overall, the company remains optimistic about future growth, citing a strong pipeline of products and services[136]. Employee and Cost Management - General and administrative expenses increased to HKD 18,249,000 for the nine months, slightly up from HKD 18,182,000 in 2019[13]. - The group’s total employee costs amounted to HKD 40,228,000 for the nine months ended December 31, 2020, representing an increase of 14% from HKD 35,241,000 in the same period of 2019[44]. - Employee costs for the nine months ended December 31, 2020, were approximately HKD 40.2 million, up from approximately HKD 35.2 million in the previous year[92]. - The company hired 14 new junior and senior engineers in the geotechnical engineering team, resulting in employee costs of approximately HKD 6.3 million as of December 31, 2020[95]. - The company expanded its civil engineering team by hiring 6 new junior and senior engineers, leading to employee costs of about HKD 1.8 million as of December 31, 2020[95]. Financial Position and Risks - The total financing costs increased from HKD 40 million to HKD 68 million, reflecting a significant rise in interest expenses[46]. - Total borrowings amounted to approximately HKD 4.0 million as of December 31, 2020, with a capital debt ratio increasing from 0% to 5.7% due to the rise in bank borrowings[77]. - The current ratio decreased from approximately 7.1 times as of March 31, 2020, to 3.6 times as of December 31, 2020, primarily due to increases in bank borrowings and trade payables[77]. - The company faces credit risk related to trade receivables, which may increase and result in longer trade receivable turnover days[106]. Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules, except for not purchasing insurance for directors' potential legal actions[127]. - The company has established an audit committee to oversee the appointment and performance of external auditors, consisting of three independent non-executive directors[132]. - As of December 31, 2020, there were no known interests or short positions held by directors or major shareholders that would conflict with the company's business[122]. - The company has not issued any new shares or options during the reporting period[131]. - No significant changes in shareholder structure were reported as of December 31, 2020[119]. Shareholder Information - The company’s major shareholders, Dr. Chen and Mr. Kwan, collectively hold approximately 41.05% of the issued share capital[111]. - Dr. Chen and Mr. Leung own approximately 68.2% and 31.8% of Wan Nian Property Development Limited, which holds 394,072,000 shares in the company, representing about 41.05% of the total issued share capital[121]. - The percentage of shares held by Wan Nian Property Development Limited is calculated based on 960,000,000 issued shares as of December 31, 2020[121].
WAC HOLDINGS(08619) - 2021 Q3 - 季度财报