Financial Performance - Revenue for the nine months ended December 31, 2022, decreased to HKD 218.65 million from HKD 310.91 million, a decline of 29.67%[5] - Gross profit fell to HKD 31.08 million, down 44.16% from HKD 55.66 million, with a gross margin decrease from 17.90% to 14.21%[5] - Profit attributable to equity holders was HKD 5.89 million, a decrease of 60.20% compared to HKD 14.80 million in the previous year[4] - Basic and diluted earnings per share dropped to 0.49 HK cents from 1.23 HK cents, reflecting a 60.16% decline[4] - The decrease in revenue was primarily due to a reduction in installation service revenue by approximately HKD 98.89 million[5] - The company reported a net profit attributable to owners of HKD 1,602,000 for the three months ended December 31, 2022, a decrease of 63.6% from HKD 4,400,000 in the same period of 2021[19] - Basic earnings per share for the nine months ended December 31, 2022, was HKD 0.49 cents, down 60.2% from HKD 1.23 cents in the same period of 2021[19] - Total revenue for the nine months ended December 31, 2022, was HKD 218,646,000, down 29.6% from HKD 310,912,000 in the same period of 2021[15] Expenses and Costs - Total administrative and operating expenses for the nine months ended December 31, 2022, were HKD 22,963,000, a slight decrease of 1.5% compared to HKD 23,322,000 for the same period in 2021[17] - The company incurred financing costs of HKD 1,018,000 for the nine months ended December 31, 2022, an increase from HKD 474,000 in the same period of 2021[17] - The cost of revenue decreased by approximately HKD 67.68 million or 26.52% to about HKD 187.57 million, aligning with the decrease in revenue[33] - Administrative and other operating expenses decreased by approximately HKD 0.36 million or 1.54% to about HKD 22.96 million, mainly due to a reduction in salaries and benefits for administrative and management staff[37] - The group's income tax expense decreased by approximately HKD 4.30 million or 69.24% to about HKD 1.91 million during the reporting period, primarily due to a reduction in taxable profits[40] Dividends and Shareholder Returns - The company did not recommend the payment of an interim dividend for the nine months ended December 31, 2022[4] - The board does not recommend the payment of dividends for the nine months ended December 31, 2022, similar to the previous year[46] - The board has adopted a revised dividend policy, stating that the annual dividend distributed to shareholders will not be less than 30% of the group's consolidated net profit for any financial year[67] - The company will consider actual and expected financial performance, working capital needs, and future expansion plans when determining future dividends[67] Share Capital and Ownership - The total number of issued shares as of December 31, 2022, was 1,200,000,000[51] - Success Step holds 508,500,000 shares, representing 42.37% of the issued share capital[53] - Noble Capital holds 391,500,000 shares, representing 32.63% of the issued share capital[53] - As of December 31, 2022, the company had a total of 1,200,000,000 shares issued[55] - The company has no major shareholders or high shareholding individuals other than those disclosed in the report[56] Corporate Governance and Compliance - The audit committee reviewed the third-quarter performance report and confirmed compliance with applicable accounting standards and GEM listing rules[66] - The company aims to maintain high standards of corporate governance and has adhered to the principles of the corporate governance code[62] - The audit committee consists of three independent non-executive directors as of December 31, 2022[64] - The company has not engaged in any competitive business activities or conflicts of interest as of December 31, 2022[58] - There were no purchases, sales, or redemptions of the company's listed securities during the reporting period[57] Operational Focus and Future Outlook - The company continues to focus on expanding its mechanical and electrical engineering installation services in Hong Kong[14] - The group will continue to monitor project progress and maintain close communication with suppliers and clients to enhance competitiveness in the market[30] - The overall industry outlook remains challenging, but the group is cautiously optimistic about future operations and will seek opportunities to expand revenue sources[30] - The group is focused on improving operational efficiency and business profitability while actively seeking potential opportunities to enhance shareholder value[30] - The company maintains a prudent cash management policy to ensure readiness for future growth opportunities[43] - All revenue-generating businesses and borrowings are primarily transacted in HKD, mitigating significant foreign exchange risk[44] Listing and Expenses - Normalized operating profit, excluding listing expenses, was approximately HKD 6.92 million[6] - Listing expenses related to the proposed transfer to the main board amounted to approximately HKD 10.33 million during the reporting period[6] - The company has a stock option plan approved by shareholders on January 24, 2018, which is effective for ten years from the listing date[21] - The group has not granted, exercised, cancelled, or allowed any options to lapse under the share option scheme since its adoption[25]
荧德控股(08535) - 2023 Q3 - 季度财报