Financial Performance - For the three months ended June 30, 2023, the total revenue was HKD 64,358,000, a decrease of 23.6% compared to HKD 84,279,000 for the same period in 2022[6] - Gross profit for the same period was HKD 7,680,000, down 22.5% from HKD 9,910,000 year-on-year[6] - The company reported a profit before tax of HKD 1,085,000, a decline of 76.7% from HKD 4,636,000 in the previous year[6] - The net profit for the period was HKD 1,022,000, representing a decrease of 73.8% compared to HKD 3,900,000 in the prior year[6] - Basic earnings per share were HKD 0.13, down from HKD 0.49 in the same quarter of 2022[6] - Total revenue decreased by approximately HKD 19.9 million or 23.6% from HKD 84.3 million for the three months ended June 30, 2022, to approximately HKD 64.4 million for the three months ended June 30, 2023[24] - Gross profit decreased by approximately HKD 2.2 million or 22.2% from approximately HKD 9.9 million to approximately HKD 7.7 million, with gross profit margins remaining stable at approximately 11.8% and 11.9% for the respective periods[26] - Net profit attributable to the company's owners decreased by approximately HKD 2.9 million or 74.4% from approximately HKD 3.9 million to approximately HKD 1.0 million[33] Administrative and Financing Costs - The total administrative expenses increased to HKD 5,554,000 from HKD 4,567,000 year-on-year, reflecting a rise of 21.6%[6] - Financing costs rose to HKD 1,332,000, compared to HKD 781,000 in the previous year, marking an increase of 70.5%[6] - Administrative expenses increased by approximately HKD 1.0 million or 21.7% from approximately HKD 4.6 million to approximately HKD 5.6 million, primarily due to increased employee costs[29] - Financing costs increased by approximately HKD 0.5 million or 62.5% from approximately HKD 0.8 million to approximately HKD 1.3 million, attributed to increased utilization of bank loans and factoring loans[30] Income and Tax - Revenue from construction services amounted to HKD 64,260,000, while property rental income was HKD 98,000[14] - Other income increased from approximately HKD 74,000 to approximately HKD 291,000, mainly due to increased interest income from loans to a joint venture[28] - Tax expenses decreased by approximately HKD 0.6 million or 85.7% from approximately HKD 0.7 million to approximately HKD 0.1 million, primarily due to a decrease in profit before tax[31] Dividends and Shareholding - The company did not recommend the payment of an interim dividend for the three months ended June 30, 2023, consistent with the previous year[20] - As of June 30, 2023, major shareholders, Sharp Talent and Diamondfield, each hold 561,860,000 shares, representing 70.2% of the issued share capital[41] - The shareholding structure indicates a strong control by key individuals, ensuring stability in governance[45] - No interim dividend was recommended for the three months ended June 30, 2023[52] Corporate Governance - The audit committee reviewed the unaudited consolidated results for the three months ended June 30, 2023, and found them to comply with applicable accounting policies and regulations[55] - The company did not purchase, sell, or redeem any of its listed securities during the period ended June 30, 2023[49] - There were no conflicts of interest reported among directors or major shareholders as of June 30, 2023[48] - The company has adopted a code of conduct for directors' securities transactions, with no violations reported during the three months ended June 30, 2023[51] - The roles of the chairman and CEO are currently held by the same individual, which the board believes is in the best interest of the company[50] - The company has complied with all applicable corporate governance codes during the three months ended June 30, 2023[50] - The audit committee consists of three independent non-executive directors, ensuring oversight of the company's financial reporting[54] Business Operations and Strategy - The company continues to focus on construction services and property investment in Hong Kong as its primary business segments[10] - The group is a major contractor in Hong Kong, focusing on new infrastructure projects, site preparation, renovation, and maintenance works[37] - During the review period, the group's projects were not halted due to the COVID-19 pandemic, indicating resilience in operations[37] - The group has completed the acquisition of 50% of Acasa Property Limited, which will enhance its project portfolio and client base[39] - The management team believes that the number of properties under construction and renovation in Hong Kong will drive growth in the renovation and maintenance sector[39] - The group aims to explore business and investment opportunities to strengthen revenue sources and secure larger projects in the future[39] - The group is considering acquisitions, business restructuring, fundraising, and diversification to enhance long-term growth potential[39] - The management is closely monitoring the impact of the pandemic on operational performance, cash flow, and financial condition[37] - The group is committed to enhancing its market position and expanding market share amidst competitive challenges[39] Other Information - The company did not have any significant acquisitions or disposals of subsidiaries or associates during the period[34] - The company did not hold any significant investments other than investment properties and interests in joint ventures as of June 30, 2023[35] - No significant new products or technologies were mentioned in the report, indicating a focus on existing operations[47] - There were no share options granted or exercised under the share option scheme during the three months ended June 30, 2023[53]
CHI HO DEV(08423) - 2024 Q1 - 季度财报