Financial Performance - The company's revenue for the nine months ended March 31, 2023, was approximately HKD 76.72 million, a decrease of 1.2% compared to HKD 77.63 million for the same period in 2022[14]. - Gross profit increased by 11.2% to approximately HKD 33.15 million from HKD 29.81 million in the previous year[14]. - Net profit and total comprehensive income rose by 14.0% to approximately HKD 18.46 million, compared to HKD 16.19 million in the prior year[14]. - Earnings per share increased by 14.1% to HKD 2.30 from HKD 2.02 in the previous year[14]. - The cost of sales decreased by 8.9% to approximately HKD 43.60 million from HKD 47.80 million in the previous year, primarily due to reduced connector costs[16]. - Other income increased by approximately HKD 0.8 million or about 18.4% to approximately HKD 5.3 million for the nine months ended March 31, 2023[19]. - Administrative expenses rose by approximately HKD 1.8 million or about 13.9% to approximately HKD 15.0 million for the nine months ended March 31, 2023[20]. - Profit attributable to owners of the company increased by approximately HKD 2.3 million or about 14.0% to approximately HKD 18.5 million for the nine months ended March 31, 2023[21]. - The company achieved a profit before tax of HKD 22.62 million for the nine months, up 16.2% from HKD 19.44 million in the previous year[46]. - The net profit for the period was HKD 18.42 million, an increase of 14.1% compared to HKD 16.14 million in the prior year[46]. - The company reported a profit attributable to owners of the company of HKD 6,368,000 for the three months ended March 31, 2023, compared to HKD 3,864,000 for the same period in 2022, representing a 64.6% increase[69]. - For the nine months ended March 31, 2023, the profit attributable to owners was HKD 18,416,000, up from HKD 16,144,000 in the previous year, indicating a growth of 14.1%[69]. - Total employee costs for the nine months were HKD 19,381,000, an increase of 8.9% from HKD 17,802,000 in the prior year[69]. Cash and Equity Position - As of March 31, 2023, the group had cash and bank balances of approximately HKD 100.2 million, up from approximately HKD 79.4 million as of June 30, 2022[24]. - The current ratio as of March 31, 2023, was approximately 7.0 times, compared to approximately 4.9 times as of June 30, 2022[24]. - As of March 31, 2023, the total equity increased to HKD 141,952,000, up from HKD 123,493,000 as of July 1, 2022, representing a growth of approximately 15%[48]. Business Strategy and Market Position - The company aims to enhance its position as a leading provider of mechanical rebar connection services in Hong Kong and create long-term value for stakeholders[11]. - The company will continue to monitor business opportunities and strengthen its market competitiveness to enhance profitability and shareholder value[10]. - The company operates a single business segment focused on providing rebar processing and connection services in Hong Kong[15]. - The company continues to explore opportunities for market expansion and potential new product offerings in the construction sector[50]. Research and Development - The company plans to allocate approximately HKD 2.4 million for research and development, with HKD 1.3 million already utilized as of March 31, 2023[44]. - The remaining funds for R&D are expected to be fully utilized by December 31, 2024[44]. - The company aims to enhance the quality and cost-effectiveness of its services through ongoing R&D efforts[44]. - The company is actively seeking suitable R&D opportunities to improve its existing services and reduce indirect costs[44]. Dividends and Shareholder Information - The group has not recommended any dividends for the period ended March 31, 2023[26]. - The company did not declare any dividends for the current period, consistent with the previous nine months[81]. - Major shareholders include Kwan Yuen Tak with a 31.4% stake and Lam Shu Yu with a 14.3% stake in the company[74]. Compliance and Governance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial performance for the period and confirmed adherence to applicable accounting standards[90]. - The company has adopted a code of conduct for securities trading by directors and employees, ensuring compliance with GEM listing rules[93]. - The company confirmed compliance with non-competition commitments by key individuals, including Jianxin Creative Limited and Mr. Guan Yande, as of June 30, 2022[87]. Industry Context - The construction industry faced challenges, with the nominal value of completed construction works decreasing by 8.1% for residential projects in 2022 compared to 2021[8]. - The total nominal value of completed construction works for 2022 was HKD 247.1 billion, reflecting a 5.7% increase from 2021[7]. - The revenue for the nine months ended March 31, 2023, was primarily derived from services provided in Hong Kong, emphasizing the company's regional focus[61]. Other Financial Information - The group had no significant investments, acquisitions, or disposals during the period ended March 31, 2023[33]. - The net proceeds from the IPO amounted to approximately HKD 37.8 million after deducting underwriting fees and other related expenses[34]. - The group plans to use the remaining proceeds for expanding operations, including purchasing land for a new workshop in Hong Kong[36]. - The company has not yet utilized approximately HKD 35.3 million allocated for purchasing land to establish a new workshop, with plans to complete this by December 31, 2024[41]. - The company has no outstanding derivative financial instruments for speculative purposes as of March 31, 2023[25]. - The company has adopted new accounting standards that may impact future financial reporting, particularly regarding lease accounting[56]. - The estimated taxable profit for the period was HKD 2.0 million, with a tax provision calculated at a rate of 8.25% for the first HKD 2.0 million and 16.5% for amounts exceeding that[68]. - The company incurred research expenses of HKD 194,000 for the three months ended March 31, 2023, compared to HKD 396,000 for the same period in 2022[69]. - Depreciation of property, plant, and equipment for the nine months was HKD 2,526,000, a decrease of 9.1% from HKD 2,778,000 in the previous year[69]. - The weighted average number of ordinary shares for calculating basic earnings per share remained constant at 800,000 shares for both periods[69]. - The company has no unexercised, granted, cancelled, exercised, or lapsed share options as of March 31, 2023[70].
人和科技(08140) - 2023 Q3 - 季度财报