Financial Performance - For the three months ended November 30, 2021, ECI Technology Holdings Limited reported revenue of approximately HKD 37,010,000, an increase of 16.5% compared to HKD 31,642,000 for the same period in 2020[6]. - The gross profit for the same period was approximately HKD 9,309,000, representing a 40.7% increase from HKD 6,611,000 in 2020[6]. - The net profit after tax for the period was approximately HKD 1,895,000, a decrease of 65.6% compared to HKD 5,512,000 in 2020[7]. - Operating profit for the three months was approximately HKD 2,224,000, down 60.2% from HKD 5,589,000 in the previous year[9]. - The basic and diluted earnings per share for the period were HKD 0.12, a decrease from HKD 0.34 in 2020[9]. - The group reported total revenue of HKD 37,010,000 for the three months ended November 30, 2021, compared to HKD 31,642,000 for the same period in 2020, representing a year-on-year increase of approximately 16.8%[18]. - The group recorded a profit attributable to owners of HKD 1,895,000 for the three months ended November 30, 2021, down from HKD 5,512,000 in the prior year, indicating a decline of approximately 65.6%[24]. Expenses and Costs - Administrative expenses increased to HKD 7,104,000 from HKD 6,368,000, reflecting a rise of 11.5%[9]. - The total employee costs for the period amounted to HKD 20,932,000, an increase from HKD 19,148,000 in the previous year, reflecting a rise of about 9.3%[23]. - Other income significantly decreased to HKD 66,000 from HKD 5,346,000, indicating a decline of 98.8%[9]. - Other income for the period was HKD 66,000, significantly lower than HKD 5,346,000 in the same period last year, primarily due to the absence of government subsidies[20]. - The group incurred a tax expense of HKD 260,000 for the period, compared to HKD 31,000 in the previous year, representing an increase of approximately 738.7%[21]. Dividends - The board of directors did not recommend the payment of an interim dividend for the period[8]. - The group did not declare an interim dividend for the three months ended November 30, 2021, consistent with the previous year[24]. - The company did not recommend an interim dividend for the three months ending November 30, 2021, compared to no dividend in the previous year[37]. Business Operations - ECI Technology Holdings Limited continues to focus on providing installation and maintenance services, as well as security services, as part of its core operations[11]. - Installation services generated revenue of HKD 14,672,000, maintenance services contributed HKD 20,376,000, and security services accounted for HKD 1,962,000 during the same period[17]. - The group’s segment performance showed a decline in profit from installation and maintenance services, with segment profit dropping to HKD 3,253,000 from HKD 5,566,000 year-on-year[18]. - The company is focusing on bidding for ELV maintenance service contracts to strengthen customer relationships and increase market share amid stagnant demand for security system installations[31]. - The security services business is recovering, with ongoing projects expected to increase in 2022, including event security services to diversify the service brand[32]. - The company has invested in Skytec Technology Company Limited to enhance its electric vehicle charging system solutions, integrating various brands of chargers[32]. - The company aims to continuously invest in developing internal capabilities and collaborate with business partners to provide integrated one-stop solutions and security services[32]. - The company has successfully secured the security services contract for the Standard Chartered Hong Kong Marathon 2021, enhancing its reputation and experience for future bids[30]. Equity and Shares - The company’s total equity as of November 30, 2021, was approximately HKD 66,392,000, up from HKD 61,293,000 at the end of the previous year[10]. - The average number of ordinary shares outstanding remained at 1,600,000 for both periods, resulting in diluted earnings per share being the same as basic earnings per share[26]. - The total number of shares issued as of November 30, 2021, is 1,600,000,000[49]. - Dr. Wu Tai-wing and Ms. Wang Zhiwen hold approximately 55% of the company's shares, totaling 880,000,000 shares each[46]. - Major shareholder ECI Asia holds 880,000,000 shares, representing 55% of the total shares issued as of November 30, 2021[49]. - Mr. Yang holds 320,000,000 shares, accounting for 20% of the total shares issued as of November 30, 2021[49]. - The share option plan allows for a maximum of 10% of the total issued shares at the time of listing, equating to 160,000,000 shares[45]. - As of November 30, 2021, no share options were granted or agreed to be granted under the share option plan[45]. Use of Proceeds - The net proceeds from the listing on March 10, 2017, amounted to approximately HKD 31,500,000 after deducting all related listing expenses and commissions[42]. - As of November 30, 2021, the group had approximately HKD 3,500,000 of unutilized listing proceeds remaining[42]. - The planned use of unutilized proceeds includes HKD 3,500,000 for obtaining additional licenses and qualifications, and HKD 6,500,000 for salaries and capital asset purchases[42]. - The total amount of utilized proceeds as of November 30, 2021, was HKD 11,500,000[42]. - The company plans to utilize unutilized proceeds for establishing a sewage treatment and filtration plant by 2025[43]. Corporate Governance - The audit committee, consisting of four independent non-executive directors, has reviewed the financial statements for the three months ended November 30, 2021[57]. - The company has adopted a code of conduct for securities trading by directors, which complies with GEM listing rules[55]. - The company has maintained good corporate governance practices in accordance with GEM listing rules[54]. - The board of directors includes seven members, with two executive directors and four independent non-executive directors[58]. - No buybacks or sales of the company's listed securities occurred during the three months ended November 30, 2021[56]. - The company has confirmed compliance with the non-competition agreement by its major shareholders since November 30, 2021[52]. - The company has not entered into any arrangements for directors or senior management to acquire shares or securities of the company or its affiliates since November 30, 2021[51]. Risk Management - The group considers its foreign exchange risk to be minimal as all transactions are denominated in Hong Kong dollars[41]. - The company has no significant contingent liabilities as of November 30, 2021[40].
ECI TECH(08013) - 2022 Q1 - 季度财报