Financial Performance - For the three months ended June 30, 2023, the company reported revenue of HKD 95,344,000, an increase of 38.7% compared to HKD 68,762,000 for the same period in 2022[3] - The cost of sales for the same period was HKD 91,327,000, resulting in a gross profit of HKD 4,017,000, down 25.1% from HKD 5,363,000 in 2022[3] - The company incurred an operating loss before tax of HKD 4,213,000, compared to a loss of HKD 3,719,000 in the previous year, reflecting an increase in losses of 13.3%[3] - Basic and diluted loss per share for the period was HKD 1.76, slightly improved from HKD 1.86 in the same period last year[3] - The group reported a pre-tax loss of HKD 4,213,000 for the three months ended June 30, 2023, compared to a pre-tax loss of HKD 3,719,000 in the same period of 2022[19] - Gross profit decreased from approximately HKD 5,300,000 to about HKD 4,000,000, a decline of approximately HKD 1,300,000 or 25%[41] - Gross margin for the period was approximately 4.2%, down 3.6% from the previous period's gross margin of about 7.8%[41] Revenue Segments - Customer contract revenue for the three months ended June 30, 2023, was HKD 95,888,000, an increase of 42.7% compared to HKD 67,190,000 for the same period in 2022[15] - The construction business segment reported a loss of HKD 1,903,000 for the three months ended June 30, 2023, compared to a loss of HKD 3,216,000 in the same period of 2022[12] - The construction segment generated revenue of approximately HKD 95,888,000, an increase of about 43% from HKD 67,190,000 in the same period last year[28] - The lending business segment recorded revenue of approximately HKD 781,000, an increase of about 16% from HKD 672,000 in the same period last year[38] - The construction segment's revenue from building construction and related services was approximately HKD 47,762,000, an increase of about 82% from HKD 26,205,000 in the same period last year[29] - The electromechanical engineering segment generated revenue of approximately HKD 45,574,000, an increase of about 13% from HKD 40,186,000 in the same period last year[31] - The interior renovation segment saw significant growth, with revenue of approximately HKD 2,552,000, an increase of about 219% from HKD 799,000 in the same period last year[32] - The property investment segment generated revenue of approximately HKD 148,000, a decrease of about 3% from HKD 153,000 in the same period last year[36] Expenses and Costs - The group’s employee benefits expenses, including directors' remuneration, amounted to HKD 6,501,000 for the three months ended June 30, 2023, compared to HKD 5,680,000 in the same period of 2022[19] - Administrative expenses rose by approximately HKD 400,000 or 4% to about HKD 9,800,000, primarily due to increased employee costs[44] - Financial expenses increased by approximately HKD 31,000 or 388% to about HKD 39,000, mainly due to increased interest expenses on short-term loans[45] - The construction costs for the three months ended June 30, 2023, were HKD 91,327,000, an increase from HKD 63,399,000 in the same period of 2022[19] Equity and Assets - Total equity attributable to the owners of the company as of June 30, 2023, was HKD 146,728,000, a decrease from HKD 150,941,000 as of April 1, 2023[5] - As of June 30, 2023, the group held financial assets at fair value amounting to approximately HKD 38,012,000, with significant investments including listed equity investments and various debt securities[64] - The total amount of contracts on hand exceeded HKD 855,000,000 during the reporting period[55] Corporate Governance - The audit committee consists of three independent non-executive directors, ensuring compliance with GEM listing rules[84] - The company is committed to maintaining high standards of corporate governance to enhance stakeholder confidence[83] - The board of directors is composed of both executive and independent non-executive members, ensuring a balanced governance structure[85] - The company has adopted the corporate governance code as per GEM listing rules, ensuring transparency and accountability[83] Investment Strategy - The group aims to continue balancing its construction business in Hong Kong and Macau, focusing on prudent bidding strategies to address industry challenges[52] - The group plans to apply for more necessary licenses and qualifications to expand its service scope and selectively undertake new contracts[59] - The group is actively seeking investment opportunities in listed securities and other financial products in Hong Kong and other recognized overseas markets to generate additional income[60] - The board will adopt a more cautious approach to manage the investment portfolio due to recent market volatility and economic instability, aiming for positive short-term returns[66] Tax and Compliance - The company has not reported any income tax for the period, maintaining a consistent tax position[3] - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[8] - The company has adopted new accounting standards effective from April 1, 2023, which may impact future financial reporting[10] Shareholder Information - As of June 30, 2023, Masan Multi Strategy Fund SPC holds 35,715,200 shares, representing 14.88% of the company's issued share capital[76] - Energy Luck Limited owns 23,978,816 shares, accounting for 9.99% of the company's issued share capital[76] - Like Capital Limited has a stake of 12,661,000 shares, which is 5.28% of the company's issued share capital[76] - The company has not granted any share options during the reporting period, and there were no unexercised options as of June 30, 2023[73] - The maximum number of unexercised share options that can be granted under the share option scheme is capped at 10% of the issued shares at any time[68] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[82] Risk Management - The company emphasizes the importance of understanding the investment risks associated with its operations, particularly in the GEM market[1] - The group continues to develop its lending business despite increased competition and uncertainty in the Hong Kong lending market, believing it will yield positive impacts and returns[63] - The group has no significant contingent liabilities or capital commitments as of the reporting period end[46][47]
智城发展控股(08268) - 2024 Q1 - 季度财报