Financial Performance - For the three months ended March 31, 2023, the group's revenue decreased by approximately 23.8% to about HKD 16.0 million from approximately HKD 21.0 million in the same period last year[5]. - The gross profit for the period was approximately HKD 3.6 million, down from approximately HKD 5.9 million in the previous year[5]. - The loss attributable to the owners of the company for the period was approximately HKD 1.0 million, compared to a loss of HKD 0.8 million in the same period last year[5]. - Operating loss for the period was approximately HKD 1.0 million, compared to an operating loss of HKD 0.8 million in the previous year[6]. - The company reported a total comprehensive loss attributable to owners of approximately HKD 0.976 million for the period, compared to HKD 0.797 million in the previous year[9]. - The company's gross profit for the same period decreased from approximately HKD 5,900,000 to about HKD 3,600,000[32]. - The loss attributable to the company's owners for the period was approximately HKD 983,000, compared to a loss of HKD 819,000 in the same period last year[26]. - The group reported a loss of approximately HKD 1.0 million for the period, compared to a loss of HKD 0.8 million in the same period last year[44]. Revenue and Expenses - Total expenses for the period amounted to HKD 17,300,000, down from HKD 22,247,000 in the previous year[22]. - The company reported a decrease in material and subcontracting costs from HKD 14,550,000 to HKD 11,911,000[22]. - General and administrative expenses decreased from HKD 7.0 million to HKD 4.8 million, attributed to a reduction in discretionary bonuses and employee benefits[42]. - Other income and gains increased to HKD 0.352 million from HKD 0.022 million in the previous year[6]. - Administrative expenses decreased to HKD 4.82 million from HKD 6.98 million in the previous year[6]. Dividend 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 company did not recommend the payment of an interim dividend for the three months ended March 31, 2023[28]. - The group’s major shareholder, Mr. Liu Jingwei, holds 750,000,000 shares, representing 75% of the total issued shares[60]. Liquidity and Financial Position - The company’s cash and cash equivalents as of March 31, 2023, were approximately HKD 70.33 million[11]. - As of March 31, 2023, the group had cash and cash equivalents of approximately HKD 16.8 million, down from HKD 25.1 million as of December 31, 2022[48]. - The current ratio improved to approximately 12.7 times, up from 10.8 times, mainly due to a decrease in contract liabilities[48]. - The group maintained a stable liquidity position during the period, with no significant impact from exchange rate fluctuations as most operations are conducted in Hong Kong dollars[50]. Operational Insights - The company operates primarily in Hong Kong, with no other operating segments reported[19]. - The group remains optimistic about the future of the interior design and renovation market, particularly in commercial spaces, healthcare centers, and elderly care facilities[35]. - The group has no significant contingent liabilities as of March 31, 2023, apart from those disclosed in the unaudited consolidated financial statements[55]. - The group employed 12 staff members as of March 31, 2023, with regular reviews of compensation to attract and retain high-performing employees[53]. Compliance and Governance - The group has adopted the corporate governance code as per GEM listing rules and has complied with most provisions, except for the separation of the roles of Chairman and CEO[65]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ended March 31, 2023, and confirmed compliance with applicable accounting standards and GEM listing rules[72]. Risk Management - The group has conducted ongoing credit assessments to minimize credit risk exposure[50]. - The group has not entered into any derivative agreements or used financial instruments to hedge foreign exchange risks during the period[50]. - There are no known competitive businesses directly or indirectly competing with the group’s operations as of March 31, 2023[63]. Share Incentive Plan - The company purchased a total of 6,460,000 shares under the share incentive plan at a total cost of approximately HKD 0.9 million after transaction costs[70]. - No share incentives were granted during the reporting period under the share incentive plan[70].
K W NELSON GP(08411) - 2023 Q1 - 季度财报