万成环球控股(08309) - 2022 Q3 - 季度财报

Financial Highlights Consolidated Statement of Profit or Loss and Other Comprehensive Income For the nine months ended December 31, 2021, revenue grew 5.1% to HK$455 million, but gross profit fell 28.0% and profit for the period sharply declined 74.8% to HK$6.54 million, with basic EPS dropping to HK$1.09 cents Summary of Consolidated Statement of Profit or Loss (For the nine months ended December 31) | Indicator | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 454,693 | 432,724 | +5.1% | | Gross Profit | 41,072 | 57,076 | -28.0% | | Profit Before Tax | 5,939 | 29,510 | -79.9% | | Profit for the Period | 6,543 | 25,951 | -74.8% | | Basic Earnings Per Share (HK Cents) | 1.09 | 4.33 | -74.8% | Consolidated Statement of Changes in Equity As of December 31, 2021, total equity slightly decreased to HK$99.05 million from HK$101.5 million, influenced by HK$6.54 million profit and HK$9 million in dividends Summary of Changes in Equity (For the nine months ended December 31, 2021) | Item | Amount (HK$ Thousand) | | :--- | :--- | | Balance at April 1, 2021 | 101,507 | | Profit for the period | 6,543 | | Approved dividends | (9,000) | | Balance at December 31, 2021 | 99,050 | Notes to the Unaudited Condensed Consolidated Financial Statements Notes detail financial data composition, highlighting street cleaning revenue decline, reduced other income due to prior-year subsidies, and a significant increase in staff costs Revenue Analysis Total revenue grew 5.1% to HK$455 million, driven by bus and ferry cleaning and new property management services, despite a 3.7% decline in street cleaning solutions Segment Revenue (For the nine months ended December 31) | Business Segment | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Street Cleaning Solutions | 300,153 | 311,689 | -3.7% | | Building Cleaning Solutions | 65,885 | 64,215 | +2.6% | | Bus and Ferry Cleaning Solutions | 49,752 | 29,342 | +69.5% | | Other Cleaning Services | 32,575 | 27,478 | +18.5% | | Property Management Services | 6,328 | – | N/A | | Total | 454,693 | 432,724 | +5.1% | Other Income Other income plummeted from HK$12.33 million to HK$1.37 million, primarily due to the absence of prior-year government grants - Other income significantly decreased due to approximately HK$12.14 million in government grants (Anti-epidemic Fund and Employment Support Scheme) received in the prior period, with no such grants in the current period[19] Profit for the Period Composition Total staff costs increased 8.1% to HK$366 million, significantly impacting profit, with wages and benefits as primary components Key Expense Items (For the nine months ended December 31) | Item | 2021 (HK$ Thousand) | 2020 (HK$ Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Staff Costs | 365,827 | 338,306 | +8.1% | | Depreciation of Right-of-use Assets | 5,770 | 5,776 | -0.1% | Dividends The Board does not recommend a dividend for the current nine-month period, though a HK$9 million final dividend for the prior fiscal year was paid - No dividend is recommended for the current reporting period[26] - A final dividend of HK$9 million (HK$1.5 cents per share) for the previous fiscal year (ended March 31, 2021) was paid on October 20, 2021[26] Management Discussion and Analysis Business Review and Outlook The company's core environmental cleaning business, operating over 30 years, saw total revenue growth driven by bus and ferry cleaning despite street cleaning contract completion, with seven new government contracts supporting future prospects - The core business is environmental cleaning solutions, with a comprehensive service portfolio including street, building, bus, and ferry cleaning[29] - Seven new 3-year large government service contracts were secured starting October 2021, reflecting recognition of the company's service quality[29][32] - The company remains confident in the environmental cleaning service industry outlook, aiming to expand market share and implement strict internal controls to maximize shareholder returns[32] Financial Review Revenue grew 5.1% to HK$455 million, driven by bus and ferry cleaning, but increased staff costs and reduced other income led to a 74.8% decline in profit attributable to owners to HK$6.54 million - Revenue increased by 5.1%, primarily driven by an increase in service contracts for bus and ferry cleaning solutions[34] - Gross profit decreased by 28.0%, with the gross profit margin falling from 13.2% to 9.03%, mainly due to an increase in staff costs of approximately HK$24.72 million[35] - Other income significantly decreased due to government Anti-epidemic Fund and Employment Support Scheme subsidies in the prior period, which were absent in the current period[36] - Net profit sharply declined by 74.8% to HK$6.54 million (compared to HK$25.95 million in the prior period)[39] Disclosures and Corporate Governance Disclosure of Directors' and Chief Executives' Interests As of December 31, 2021, controlling shareholders Mr. Wong Chong Shing, Mr. Wong Man Shing, and Mr. Wong Chi Ho collectively held 61.50% of the company's shares - Mr. Wong Chong Shing, Mr. Wong Man Shing, and Mr. Wong Chi Ho are parties acting in concert, collectively deemed to be interested in 369,000,000 shares, representing 61.50% of the company's total share capital[42][45] Corporate Governance The company complied with GEM Listing Rules' Corporate Governance Code, with an audit committee of independent non-executive directors reviewing the unaudited financial statements - The company has adopted and complied with the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules[51] - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the quarter[57] - As of the reporting date, the company's issued shares maintained sufficient public float, complying with the GEM Listing Rules' requirement of not less than 25%[56]