Financial Performance - The Group achieved a year-on-year revenue growth of 4% in the first financial quarter despite a declining Grade A commercial property leasing market[24]. - Revenue for the three months ended June 30, 2022, was HK$92,043,000, representing a 4.0% increase compared to HK$88,483,000 in the same period of 2021[38]. - Gross profit decreased to HK$5,766,000, down 19.7% from HK$7,185,000 year-on-year[38]. - Profit before income tax increased significantly to HK$1,074,000, compared to HK$184,000 in the same period last year, marking a 485.0% increase[38]. - The profit attributable to owners of the Company was HK$626,000, a turnaround from a loss of HK$582,000 in the previous year[38]. - Basic and diluted earnings per share were HK$0.32, compared to a loss of HK$0.29 per share in the same period of 2021[38]. - Total comprehensive income for the period attributable to owners of the Company was HK$442,000, compared to a loss of HK$520,000 in the prior year, indicating a significant improvement[44]. - The total comprehensive income for the period was HK$781,000, compared to a loss of HK$272,000 in the prior year, showing a substantial recovery[44]. - The Group recorded a profit of approximately HK$0.8 million for the current period, compared to a loss of approximately HK$0.3 million in the previous period[135]. - Profit attributable to owners of the Company was approximately HK$0.6 million for the current period, compared to a loss of approximately HK$0.6 million in the previous period[135]. Market Conditions - The overall market vacancy rate for Hong Kong's Grade A office market increased to 9.4% by the end of June 2022, with a negative absorption of 96,800 square feet reported in June[23]. - The vacancy rate in Central Hong Kong rose from 7.6% to 7.9%, indicating weak market demand[23]. - The overall vacancy rate for Grade A office space in Hong Kong increased to 9.4% as of June 2022, reflecting weakened market demand[25]. - The Group expects the domestic Grade A office fit-out market to face sustained pressure due to the COVID-19 pandemic, but anticipates opportunities from the development of the Northern Metropolis and Greater Bay Area[155]. - Hong Kong remains a vital international financial center, expected to attract more financial and tech companies as economic activities normalize post-pandemic[159]. Strategic Initiatives - The Group adopted an agile marketing and pricing strategy, resulting in a slight drop in gross profit margin but aimed at boosting market share and business scale[24]. - The aggressive marketing strategy is expected to enhance bargaining power with landlords and sub-contractors in the medium term[24]. - The Group aims to secure more orders from larger companies, positioning itself for profit growth when the industry recovers[24]. - The Group adopted flexible marketing and pricing strategies to maintain business scale and increase market share despite a declining fit-out project volume[26]. - The Group remains optimistic about the market for Grade A commercial fit-out services in Hong Kong and the PRC, aiming for growth through agile strategies and quality services[32]. - The group anticipates gaining a larger market share and solidifying its market position as industry activities recover[159]. Revenue Breakdown - Revenue from Hong Kong was HK$91,336,000, up 10.3% from HK$82,943,000 in 2021, while revenue from the PRC decreased significantly to HK$707,000 from HK$5,540,000[64]. - Revenue from bare shell fit-out projects was approximately HK$54.7 million, contributing to approximately 59.4% of total revenue, and increased by approximately 14.6% from HK$47.7 million in the previous period[120]. - Revenue from restacking projects was approximately HK$31.1 million, contributing to approximately 33.7% of total revenue, compared to HK$25.1 million in the previous period[119]. - The Group's revenue from maintenance and other services was approximately HK$0.3 million, accounting for 0.3% of total revenue, compared to HK$0.015 million in the previous period[119]. Cost and Expenses - Gross profit margin fell to 6.3%, a decrease of 1.8 percentage points from 8.1% in the previous year[38]. - Total cost of sales and administrative expenses amounted to HK$92,366,000, an increase of 5.9% from HK$87,732,000 in the previous year[72]. - Subcontracting charges for the period were HK$78,489,000, representing an increase of 6.8% from HK$73,966,000 in 2021[72]. - Administrative expenses decreased by approximately 5.4% to HK$6.1 million from HK$6.4 million in the previous period, primarily due to a reduction in administrative staff costs[132]. - Finance costs decreased by approximately 37.5% to HK$35,000 from HK$56,000 in the previous period, mainly consisting of interest on lease liabilities[133]. Shareholding Structure - As of June 30, 2022, Mr. Wong Sai Chuen holds 112,500,000 shares, representing 56.25% of the issued share capital[165]. - Ms. Hui Man Yee, Maggie, also holds 112,500,000 shares through her spouse, Mr. Wong Sai Chuen, equating to 56.25% of the issued share capital[165]. - Mr. Wong Kin Kei has an interest in 37,500,000 shares, which is 18.75% of the issued share capital[165]. - Madison Square International Investment Limited, a company controlled by Mr. Wong Sai Chuen, holds 56.25% of the group's issued share capital[168]. - J&J Partner Investment Group Limited, controlled by Mr. Wong Kin Kei, holds 18.75% of the group's issued share capital[168]. - As of June 30, 2022, no other directors or their close associates had interests or short positions in any shares of the company[172]. Corporate Governance - The Company has adopted a code of conduct for securities transactions by Directors that meets the required standards set out in the GEM Listing Rules[200]. - All Directors have confirmed full compliance with the required standards throughout the three months ended 30 June 2022[200].
庄皇集团公司(08501) - 2023 Q1 - 季度财报