Financial Performance - For the three months ended March 31, 2022, the group's revenue increased by approximately 29.8% to about HKD 21.0 million from approximately HKD 16.1 million in the same period last year, driven mainly by increased revenue from design and renovation projects for elderly care homes, office properties, and medical centers [5]. - The gross profit for the period rose to approximately HKD 5.9 million, up from about HKD 2.7 million in the same period last year [5]. - The loss attributable to the owners of the company for the period was approximately HKD 0.8 million, compared to a profit of HKD 0.5 million in the same period last year [5]. - The total comprehensive loss for the period was HKD 797,000, compared to a total comprehensive income of HKD 479,000 in the same period last year [10]. - The basic and diluted loss per share for the period was HKD (0.08), compared to earnings per share of HKD 0.05 in the same period last year [8]. Revenue and Expenses - Total operating expenses for the three months ended March 31, 2022, amounted to HKD 22,247,000, up from HKD 15,808,000 in the previous year [23]. - Material and subcontracting costs increased to HKD 14,550,000 from HKD 12,234,000 year-on-year [23]. - Employee benefit costs, including director remuneration, surged to HKD 5,682,000 from HKD 2,088,000 [23]. - Administrative expenses increased significantly to HKD 7.2 million from HKD 2.3 million in the same period last year, reflecting higher operational costs [8]. - Other income and gains for the period were HKD 22,000, slightly down from HKD 28,000 in the previous year [8]. Dividends and Shareholder Information - The board of directors did not recommend the payment of an interim dividend for the period, consistent with the previous year [5]. - The major shareholder, Sino Emperor, holds 750,000,000 shares, representing 75% of the company [59]. Assets and Liabilities - As of March 31, 2022, the group's current assets net value was approximately HKD 122.5 million, including cash and cash equivalents of about HKD 75.0 million [48]. - The current ratio improved to approximately 10.7 times, up from 7.1 times as of December 31, 2021, due to a decrease in trade and other payables [48]. - The group confirmed a trade receivables loss provision of HKD 2.3 million as of March 31, 2022, down from HKD 2.8 million as of December 31, 2021 [47]. - The group has no outstanding borrowings as of March 31, 2022, due to no significant debt financing needs during the period [48]. - The group reported no significant contingent liabilities as of March 31, 2022 [54]. Corporate Governance - The chairman and CEO roles are held by the same individual, Liu Jingwei, which the board believes benefits the group's business outlook and operational efficiency [64]. - The company has adopted the corporate governance code as per GEM listing rules and has complied with most provisions, except for the separation of the chairman and CEO roles [62][64]. - The board will continue to review the effectiveness of the corporate governance structure to assess the need for separating the roles of chairman and CEO [64]. - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with GEM Listing Rules, with no known violations during the three months ending March 31, 2022 [65]. Market Outlook and Operations - The group remains optimistic about the future of the interior design and renovation market, particularly in commercial spaces and healthcare centers [35]. - The company operates primarily in the interior design and contracting sector, focusing on commercial spaces in Hong Kong [32]. - The group operates primarily in Hong Kong, with no significant impact from exchange rate fluctuations during the period [50]. Employee and Incentive Plans - The group maintained a total of 15 employees as of March 31, 2022, with regular reviews of compensation to attract and retain talent [53]. - A share incentive plan was adopted on May 17, 2021, aimed at retaining participants and encouraging contributions to the group's growth and development [66]. - During the reporting period, the trustee purchased a total of 9,490,000 shares under the share incentive plan, at a total cost of approximately HKD 1.9 million after transaction costs [67]. Audit and Compliance - The audit committee, established on November 18, 2016, reviewed the unaudited condensed consolidated financial statements for the three months ending March 31, 2022, confirming compliance with applicable accounting standards and GEM Listing Rules [70]. - The company has not adopted any new or revised accounting standards that would have a significant impact on its financial performance and position [19]. - There were no significant unrecognized deferred tax assets and liabilities as of March 31, 2022 [26]. - As of March 31, 2022, the group had no significant capital commitments [52]. - There were no major investments, acquisitions, or disposals of subsidiaries during the period, nor any future plans for significant capital asset acquisitions as of March 31, 2022 [53].
K W NELSON GP(08411) - 2022 Q1 - 季度财报