Financial Performance - For the nine months ended May 31, 2023, ECI Technology Holdings Limited reported revenue of approximately HKD 123,822,000, an increase of 26.8% compared to HKD 97,650,000 for the same period in 2022[6]. - The gross profit for the same period was approximately HKD 31,915,000, representing a 37.2% increase from HKD 23,288,000 in the previous year[6]. - The profit for the nine-month period was approximately HKD 6,517,000, which is a significant increase of 117.2% compared to HKD 3,002,000 in 2022[7]. - The operating profit for the nine months was HKD 7,481,000, up from HKD 3,298,000 in the previous year, marking a 126.5% increase[10]. - Basic and diluted earnings per share for the nine months were HKD 0.407, compared to HKD 0.188 in 2022, reflecting a 116.0% increase[11]. - The total comprehensive income attributable to owners of the company for the nine months was HKD 4,813,000, compared to HKD 3,062,000 in the previous year, indicating a 57.2% increase[11]. - The company experienced a significant increase in sales costs, which rose to HKD 91,907,000 from HKD 74,362,000, reflecting a 23.8% increase[10]. - Other income for the nine months was HKD 1,328,000, down from HKD 2,403,000 in the previous year, a decrease of 44.7%[10]. - The company reported a decrease in fair value losses on financial assets, which amounted to HKD 12,000 compared to HKD 7,000 in the previous year[10]. - The group's total comprehensive income for the nine months ended May 31, 2023, was HKD 3,062,000, compared to HKD 4,813,000 for the same period in 2022[21]. Revenue Breakdown - Installation services generated revenue of HKD 54,674,000 for the nine months ended May 31, 2023, up 53.7% from HKD 35,589,000 in the previous year[21]. - Maintenance services revenue increased to HKD 60,921,000, representing a 7.5% rise from HKD 56,502,000 year-on-year[21]. - Security services revenue grew significantly to HKD 8,227,000, a 47.8% increase compared to HKD 5,559,000 in the prior year[21]. Dividends and Shareholder Information - The company did not recommend the payment of an interim dividend for the period, consistent with the previous year[8]. - The company has not declared or proposed any dividends for the nine months ended May 31, 2023[29]. - As of May 31, 2023, the total number of shares issued by the company is 1,600,000,000, with a maximum of 160,000,000 shares (10%) potentially issued under the share option plan[62]. - No share options were granted under the share option plan for the nine months ending May 31, 2023, and there are no unexercised share options or convertible securities as of the report date[62]. - Dr. Wu Tai-wing and Ms. Wang Zhiwen each hold 880,000,000 shares, representing 55% of the company's total shares[63]. - ECI Asia, a controlled entity of Dr. Wu, also holds 880,000,000 shares, accounting for 55% of the total shares[68]. - Mr. Yang Shuo holds 320,000,000 shares, which is 20% of the total shares[68]. Operational Highlights - The company has secured a four-year contract for maintenance of security systems for the disciplined services, valued at over HKD 25,000,000, which commenced in December 2022[33]. - The company is expanding its electric vehicle charging management solutions, with ongoing projects at multiple facilities and plans to commence operations in 2023[39]. - The company aims to enhance its market share by focusing on ELV maintenance service contracts, emphasizing high-quality and timely service[39]. - The security guard business is recovering, with ongoing projects expected to increase in 2023, including security services for major events[39]. Governance and Compliance - The company has confirmed compliance with a non-competition agreement signed by its controlling shareholders, ensuring no competition with the company's business[74]. - There are no reported conflicts of interest involving directors or controlling shareholders with respect to the company's business[75]. - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, ensuring compliance with the governance standards, except for deviation in rule C.2.1 regarding the roles of Chairman and CEO[77]. - The audit committee, established on February 17, 2017, consists of three independent non-executive directors and is responsible for reviewing financial statements and internal control procedures[83]. - The audit committee reviewed the unaudited consolidated financial information for the period and approved the quarterly results on July 6, 2023[85]. Capital and Funding - The group’s capital commitment for purchasing new software was approximately HKD 297,000 as of May 31, 2023[49]. - The group has approximately HKD 3,500,000 of unutilized listing proceeds as of May 31, 2023[56]. - The group plans to utilize unutilized listing proceeds for obtaining additional licenses and qualifications by 2025 due to delays in meeting operational funding requirements[59]. - As of May 31, 2023, the group had no significant contingent liabilities[48]. Employee Costs - Total employee costs for the nine months ended May 31, 2023, amounted to HKD 65,240,000, an increase of 9% from HKD 59,706,000 in 2022[6]. - Administrative expenses increased by approximately 14.33% from about HKD 22,424,000 to approximately HKD 25,638,000, primarily due to general salary increases for administrative staff[43].
ECI TECH(08013) - 2023 Q3 - 季度财报