Financial Performance - For the three months ended June 30, 2021, the company reported revenue of HKD 16,858,000, an increase of 3.7% compared to HKD 16,251,000 for the same period in 2020[15]. - Gross profit for the same period was HKD 5,152,000, a decrease of 5.6% from HKD 5,462,000 year-over-year[15]. - The company achieved a profit before tax of HKD 435,000, compared to a profit of HKD 136,000 in the previous year, representing a significant increase[15]. - Net profit for the period was HKD 218,000, recovering from a loss of HKD 186,000 in the same quarter of 2020[15]. - Basic and diluted earnings per share for the quarter were HKD 0.02, compared to a loss per share of HKD 0.02 in the prior year[15]. - Total comprehensive income attributable to owners of the company was HKD 193,000, compared to a total comprehensive loss of HKD 200,000 in the previous year[15]. - The company reported other income of HKD 375,000, down from HKD 591,000 in the same period last year[15]. - The group reported revenue of HKD 16,858,000 for the three months ended June 30, 2021, an increase from HKD 16,251,000 in the same period of 2020, representing a growth of approximately 3.7%[29]. - The group recorded a pre-tax profit of HKD 217,000 for the three months ended June 30, 2021, compared to HKD 322,000 in the same period of 2020, indicating a decline of approximately 32.6%[41]. - The company reported a profit of approximately HKD 0.2 million for the three months ended June 30, 2021, compared to a loss of approximately HKD 0.2 million for the same period in 2020[60]. Revenue Breakdown - Revenue from new property construction was HKD 10,968,000, while revenue from renovation and maintenance of existing properties was HKD 3,034,000, showing a decrease of 11.8% compared to HKD 3,437,000 in the previous year[26]. - The company's revenue increased by approximately 3.7% from about HKD 16.3 million to approximately HKD 16.9 million for the three months ended June 30, 2021, primarily due to increased income from structural and geotechnical engineering consulting services[50]. Expenses and Costs - Gross profit decreased by approximately HKD 0.3 million, or 5.7%, from about HKD 5.5 million to approximately HKD 5.2 million for the same period, resulting in a gross profit margin decline from about 33.6% to approximately 30.6%[55]. - Service costs rose by approximately 8.5% from about HKD 10.8 million to approximately HKD 11.7 million, with employee costs accounting for about 89.0% of total service costs as of June 30, 2021[54]. - Total employee costs amounted to HKD 12,083,000, a slight decrease from HKD 12,368,000 in the same period last year, reflecting a reduction of about 2.3%[35]. - General and administrative expenses decreased by approximately 19.9% from about HKD 5.3 million to approximately HKD 4.3 million, mainly due to reduced legal and professional fees[57]. - The group’s financing costs included interest expenses on lease liabilities amounting to HKD 56,000, an increase from HKD 26,000 in the previous year[37]. - The group’s depreciation on property, plant, and equipment was HKD 77,000, down from HKD 104,000 in the same period last year, reflecting a decrease of approximately 26%[37]. Equity and Share Capital - As of June 30, 2021, total equity attributable to owners of the company was HKD 70,289,000, an increase from HKD 70,096,000 at the beginning of the period[19]. - As of June 30, 2021, the company had issued 1,152,000,000 ordinary shares with a nominal value of HKD 0.01 each, and the total authorized share capital was HKD 15,000,000[64]. - As of June 30, 2021, Dr. Chen and Mr. Kwong each hold 394,072,000 shares, representing approximately 41.05% of the total issued share capital of 960,000,000 shares[84][89]. - Dr. Chen and Mr. Kwong control Wan Nian Property Development Limited, which holds 394,072,000 shares in the company, with ownership proportions of approximately 68.2% and 31.8% respectively[88]. Corporate Governance and Compliance - The company has complied with the corporate governance code as per GEM Listing Rules, with no insurance arrangements for directors due to stable business conditions[99]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the three months ended June 30, 2021[104]. - The company has adopted a code of conduct for securities transactions by directors, with no violations reported during the three months ended June 30, 2021[100]. - The board of directors has not identified any business or interests that may compete with the company's operations as of June 30, 2021[96]. Investments and Acquisitions - The company completed the acquisition of 23.4% of OPS Holding Limited's issued share capital on July 22, 2021, aiming to diversify its business portfolio[51]. - The company completed the acquisition of 23.4% of OPS Holdings Limited for a consideration of HKD 18,252,000, paid through the issuance of 192,000,000 shares at an issue price of approximately HKD 0.095 per share[74]. - The company has not invested in any construction and property development companies as of June 30, 2021, but is actively seeking suitable investment opportunities[80]. Liquidity and Financial Position - The company has no borrowings as of June 30, 2021, indicating a stable financial position with sufficient liquidity to meet funding needs[62]. - The current ratio decreased from approximately 5.2 times as of March 31, 2021, to about 4.2 times as of June 30, 2021, primarily due to an increase in contract liabilities[62]. - The company maintains a prudent treasury policy, continuously assessing customer credit and financial conditions to mitigate credit risk[63]. - The company’s bank deposits used as collateral for general bank financing amounted to HKD 4.1 million as of June 30, 2021[71]. Other Information - The company has no significant contingent liabilities as of June 30, 2021[69]. - The company did not engage in any significant acquisitions or disposals of subsidiaries or associates during the three months ended June 30, 2021[68]. - The company has no major capital commitments beyond those disclosed in the prospectus and quarterly report[67]. - The company incurred approximately HKD 0.6 million for new computers and software for new employees as of June 30, 2021[78]. - No dividends were recommended for the three months ended June 30, 2021, consistent with the same period in 2020[101]. - No share options were granted under the share option scheme during the three months ended June 30, 2021, and there were no unexercised share options as of June 30, 2021[102]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the three months ended June 30, 2021[97].
WAC HOLDINGS(08619) - 2022 Q1 - 季度财报