Financial Performance - The group's revenue increased from approximately HKD 50,264,000 for the three months ended March 31, 2021, to approximately HKD 101,291,000 for the three months ended March 31, 2022, representing an increase of approximately HKD 51,027,000 or 101.5%[7] - Gross profit rose from approximately HKD 6,795,000 to approximately HKD 8,697,000, an increase of approximately HKD 1,902,000 or 28.0%[7] - The net profit attributable to the owners of the company was approximately HKD 3,396,000 for the three months ended March 31, 2022, compared to approximately HKD 3,068,000 for the same period in 2021[8] - Basic and diluted earnings per share increased to HKD 0.70 for the three months ended March 31, 2022, from HKD 0.63 for the same period in 2021[10] - The total comprehensive income for the period was approximately HKD 3,395,000, compared to HKD 3,067,000 for the same period in the previous year[10] Cost Management - Administrative expenses decreased from HKD 6,148,000 to HKD 5,414,000, indicating improved cost management[10] - Financing costs increased from HKD 49,000 to HKD 221,000, reflecting higher borrowing costs during the reporting period[10] - Subcontracting costs increased to HKD 8,123,000 from HKD 5,449,000 year-over-year, indicating rising operational costs[28] - Service costs rose from approximately HKD 43,469,000 to approximately HKD 92,594,000, an increase of approximately HKD 49,125,000 or 113.0%, primarily due to employee costs increasing by 199.8%[47] Revenue Sources and Client Dependence - The increase in revenue and gross profit was primarily due to ongoing construction projects, including the Tseung Kwan O-Lam Tin Tunnel and the organic resources recovery center in Sha Ling[7] - Major clients contributing over 10% of revenue included Client S with HKD 29,935,000, Client B with HKD 19,242,000, and Client L with HKD 19,242,000, indicating significant reliance on a few key customers[23] Challenges and Risks - The company continues to face challenges due to the impact of the fifth wave of COVID-19, affecting project orders and final accounts[7] - The construction progress was impacted by the fifth wave of COVID-19, leading to delays in project certification and a reduction in available workforce[40] - The company is exploring diversification opportunities within the construction industry to mitigate risks associated with public sector project availability[36] Operational Focus and Strategy - The company has not reported any new product developments or market expansions during this period, focusing instead on existing operations[21] - There were no acquisitions or significant strategic changes mentioned in the earnings report, indicating a stable operational strategy[21] - The company secured a total of 94,188,000 HKD in new public sector contracts and 1,148,000 HKD in change orders during the three months ended March 31, 2022[36] - As of March 31, 2022, the company participated in 34 public sector projects and two private sector projects, with a backlog of approximately 324,353,000 HKD[36] - The company has focused on developing a comprehensive suite of tunnel construction services since 2014, enhancing its competitive advantage in contract bidding[36] - The company is one of the few selected subcontractors for major public infrastructure projects, including the Central Kowloon Route and the three-runway system at Hong Kong International Airport[42] - The company anticipates sustained demand for tunnel construction services driven by ongoing major infrastructure projects in Hong Kong[42] Corporate Governance - The company has maintained high standards of corporate governance since its listing on the GEM on February 22, 2017, and has adopted the corporate governance code[71] - The audit committee, consisting of three independent non-executive directors, reviewed the first quarter report for the period ending March 31, 2022, confirming compliance with applicable accounting standards and GEM listing rules[68] - The company will continue to review and enhance its corporate governance practices to comply with legal requirements[72] - The company has complied with the corporate governance code during the reporting period[73] Shareholder Information - As of March 31, 2022, major shareholders Du Yanbing and Zhuang Roujia each hold 290,120,000 shares, representing 59.5% of the company's issued share capital[66] - Wu Guolun holds 39,500,000 shares, accounting for 8.1% of the company's issued share capital[66] - The company has not granted or issued any share options or adopted any share option schemes as of March 31, 2022[69] - No directors or senior management have any interests in the company's shares or related securities as of March 31, 2022[64] - No other individuals have reported interests in the company's shares or related securities as of March 31, 2022[67] Compliance and Regulations - The company has adopted the trading regulations standards as per GEM Listing Rules 5.48 to 5.67 for directors' securities trading conduct[74] - All directors confirmed full compliance with the trading regulations standards as of March 31, 2022[74] - The compliance advisor, Haode Financing Limited, has been the sponsor for the company’s GEM listing[75] - The compliance advisory agreement with Haode was extended on multiple occasions, with the latest extension on March 24, 2022[75] - No significant events occurred after March 31, 2022, that would materially affect the group's operations and financial performance[59]
骏杰集团控股(08188) - 2022 Q1 - 季度财报