Financial Performance - For the nine months ended May 31, 2022, the company's revenue was approximately HKD 97,650,000, a decrease of 4.3% compared to HKD 102,199,000 in the same period of 2021[7]. - The gross profit for the same period was approximately HKD 23,288,000, an increase of 6.0% from HKD 21,976,000 in 2021[7]. - The profit for the nine months was approximately HKD 3,002,000, down 60.4% from HKD 7,575,000 in the previous year[8]. - The operating profit for the nine months was approximately HKD 3,298,000, a decrease of 58.4% from HKD 7,935,000 in 2021[11]. - The basic and diluted earnings per share for the nine months were HKD 0.188, down 60.3% from HKD 0.473 in the previous year[12]. - The total comprehensive income attributable to owners of the company for the nine months was HKD 3,062,000, a decrease of 59.6% from HKD 7,575,000 in 2021[12]. - The company reported a net cash outflow from operating activities of approximately HKD 1,500,000 for the nine months[11]. Revenue Breakdown - For the three months ended May 31, 2022, the total revenue was HKD 27,742,000, a decrease of 12.1% compared to HKD 31,667,000 for the same period in 2021[23]. - Installation services revenue for the nine months ended May 31, 2022, was HKD 35,589,000, a decline of 18.1% from HKD 43,441,000 in 2021[23]. - Maintenance services revenue for the nine months ended May 31, 2022, increased by 3.4% to HKD 56,502,000 from HKD 54,626,000 in the previous year[23]. - Security services revenue for the nine months ended May 31, 2022, rose by 34.5% to HKD 5,559,000 compared to HKD 4,132,000 in 2021[23]. Expenses and Costs - Cost of sales decreased by approximately 7.31% from about HKD 80,223,000 for the nine months ended May 31, 2021, to about HKD 74,362,000 for the same period in 2022[42]. - Administrative expenses increased by approximately 9.98% from about HKD 20,390,000 for the nine months ended May 31, 2021, to about HKD 22,424,000 for the same period in 2022, primarily due to general salary increases for administrative staff[43]. - The total employee costs amounted to approximately HKD 59,706,000 for the nine months ended May 31, 2022, compared to HKD 57,681,000 for the same period in 2021[34]. Dividends and Shareholder Information - The company did not recommend the payment of an interim dividend for the period, compared to no dividend in the same period of 2021[9]. - The board did not recommend the payment of an interim dividend for the period, consistent with the previous year[45]. - As of May 31, 2022, the company has 1,600,000,000 shares issued, with major shareholders holding significant stakes[67]. - Dr. Wu Tai-wing holds 880,000,000 shares, representing a 55% ownership stake in the company[67]. - Ms. Wang Zhiwen, as the spouse of Dr. Wu, also holds 880,000,000 shares, equating to a 55% ownership stake[67]. - ECI Asia, a controlled entity of Dr. Wu, holds 880,000,000 shares, which is 55% of the total shares[69]. - Mr. Yang Shuo holds 320,000,000 shares, representing a 20% ownership stake[69]. Corporate Governance - The company has confirmed compliance with the non-competition agreement established on February 17, 2017, by its controlling shareholders[75]. - The company has adopted corporate governance practices in line with GEM Listing Rules, ensuring effective accountability[78]. - All directors have confirmed adherence to the trading standards set forth in the company's code of conduct for securities trading[79]. - The company has maintained good corporate governance practices throughout the reporting period, with no significant deviations from the established codes[78]. - The audit committee consists of four independent non-executive directors, with Mr. Xu Junhao as the chairman[82]. - The audit committee reviewed the unaudited condensed consolidated financial statements prior to their approval by the board on July 12, 2022[84]. Strategic Plans and Investments - The company plans to continue exploring market expansion opportunities and new product development strategies[11]. - The company has been awarded a four-year framework project for the maintenance and installation of a television system by the Transport Department, which commenced operations during the reporting period[35]. - The company is focusing on bidding for ELV maintenance service contracts to strengthen customer relationships and increase market share[37]. - The company has invested in Skytec Technology Company Limited to provide electric vehicle charging system renovation services, indicating a strategic move towards electric vehicle solutions[38]. - The company aims to continuously invest in developing internal capabilities and collaborating with business partners to provide integrated solutions and security services[40]. Tax and Liabilities - The group incurred a tax expense of HKD 303,000 for the three months ended May 31, 2022, compared to a tax credit of HKD 90,000 in the same period of 2021[26]. - The group’s deferred tax expense for the nine months ended May 31, 2022, was HKD (27,000), compared to HKD 87,000 in the previous year[26]. - As of May 31, 2022, the group had no significant contingent liabilities[46]. Capital Commitments and Proceeds - The group's capital commitment for purchasing new software was approximately HKD 117,000, unchanged from the previous year[47]. - As of May 31, 2022, approximately HKD 3,500,000 of the net proceeds from the listing remained unutilized[54]. - The group plans to utilize the unutilized proceeds by 2025 due to delays in obtaining additional licenses and qualifications[58]. Share Options and Buybacks - No share options were granted under the share option scheme as of May 31, 2022[62]. - No share buybacks or purchases were made by the company or its subsidiaries during the nine months ended May 31, 2022[81].
ECI TECH(08013) - 2022 Q3 - 季度财报