Financial Performance - The group's revenue decreased by approximately HKD 156.5 million or 39.7% to approximately HKD 237.5 million for the nine months ended December 31, 2021, compared to approximately HKD 394 million for the same period in 2020[22]. - Gross profit decreased by approximately HKD 14.8 million or 62.1% to approximately HKD 9 million for the nine months ended December 31, 2021, resulting in a gross margin decline from 6.0% to 3.8%[24]. - Other income decreased significantly by approximately HKD 19,800,000 or 93.8% to about HKD 1,300,000 for the nine months ended December 31, 2021, primarily due to a reduction in government subsidies received[25]. - The company recorded a loss of approximately HKD 1,600,000 for the nine months ended December 31, 2021, compared to a profit of about HKD 26,000,000 for the same period in 2020[30]. - The company anticipates a challenging first half of 2022 due to the ongoing impact of the pandemic and rising construction material costs, which are expected to pressure profit margins[32]. - The company reported a basic earnings per share of HKD 0.41 for the nine months ended December 31, 2021, compared to HKD 6.51 for the same period in 2020[35]. Contractual Activities - The group had 47 existing contracts with a total contract value of HKD 1,110.7 million as of April 1, 2021, and completed 3 contracts worth HKD 9.4 million during the nine months ended December 31, 2021[19]. - The number of new contracts awarded during the nine months ended December 31, 2021, was 31, with a total value of HKD 25 million[19]. - The total number of contracts as of December 31, 2021, was 75, with a total contract value of HKD 1,126.3 million[19]. - The decrease in revenue was primarily due to a reduction in contract works, particularly the number of change orders compared to the same period last year[22]. Cost Management - Direct costs reduced by approximately HKD 141.7 million or 38.3% to approximately HKD 228.5 million for the nine months ended December 31, 2021, down from approximately HKD 370.2 million for the same period in 2020[23]. - Administrative expenses decreased by approximately HKD 1,600,000 or 12.6% to about HKD 11,100,000 for the nine months ended December 31, 2021, attributed to reduced depreciation and a decrease in employee numbers[28]. - Financing costs slightly decreased by approximately HKD 600,000 or 17.1% to about HKD 2,800,000 for the nine months ended December 31, 2021, due to a decline in Hong Kong interbank offered rates[29]. - Tax expenses decreased by approximately HKD 2,000,000 or 98.3% to about HKD 400,000 for the nine months ended December 31, 2021, due to a reduction in taxable profits compared to the previous year[30]. COVID-19 Impact - The ongoing COVID-19 pandemic has caused significant negative impacts on the construction industry, including supply chain disruptions and labor shortages due to preventive isolation measures[20]. - The group has strengthened COVID-19 preventive measures to ensure a safe working environment for all employees and workers[20]. Corporate Governance - The company has complied with the continuous disclosure obligations under the GEM Listing Rules[90]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial performance for the nine months ended December 31, 2021[87]. - The company adhered to the corporate governance code during the nine months ended December 31, 2021[89]. Shareholder Information - The company’s major shareholder, Chrysler Investments Limited, holds 260,000,000 shares, representing 65% of the total shareholding[73]. - The company did not declare or propose any dividends for the nine months ended December 31, 2021, consistent with the previous year[68]. - The board did not recommend the payment of an interim dividend for the nine months ended December 31, 2021, compared to no dividend for the same period in 2020[81]. Management and Operations - The company operates as a single operating segment focused on civil engineering construction services, with no further analysis presented for this segment[52]. - The company appointed Mr. Tang Siwa as the Executive Director and Chief Operating Officer effective December 28, 2021[75]. - The company has not applied any new accounting standards or interpretations that have not yet come into effect during the reporting period[45].
常满控股(08523) - 2022 Q3 - 季度财报