Financial Performance - For the three months ended June 30, 2023, the group's revenue decreased to approximately HKD 70.70 million from approximately HKD 71.84 million for the same period in 2022, a decline of about 1.6%[5] - The profit attributable to shareholders for the reporting period was approximately HKD 1.64 million, down from approximately HKD 2.95 million in the same period of 2022, representing a decrease of about 44.4%[5] - The gross profit decreased by approximately HKD 3.51 million, primarily due to reduced revenue from installation services and increased direct labor and material costs caused by labor shortages and supply chain disruptions[5] - The gross profit margin for the reporting period was approximately 13.9%, compared to 18.6% for the same period in 2022[8] - Revenue for the three months ended June 30, 2023, was HKD 70,698,000, a decrease of 1.58% from HKD 71,838,000 in the same period of 2022[18] - Profit attributable to equity holders for the three months ended June 30, 2023, was HKD 1,642,000, down 44.4% from HKD 2,947,000 in the same period of 2022[27] - Basic earnings per share for the period was HKD 0.14, compared to HKD 0.25 in the previous year, representing a decline of 44%[27] - The total comprehensive income for the period was HKD 1.64 million, compared to HKD 2.95 million for the same period in 2022[8] Expenses and Costs - Administrative and other operating expenses decreased by approximately HKD 0.69 million, while listing expenses were reduced by approximately HKD 1.23 million[6] - Administrative and other operating expenses decreased to HKD 7,423,000 from HKD 8,107,000, reflecting a reduction of 8.4%[23] - The company’s financing costs increased to HKD 470,000 from HKD 227,000, marking a rise of 106%[23] - Cost of revenue increased by approximately HKD 2.37 million or 4.05% to approximately HKD 60.88 million, attributed to labor shortages and supply chain disruptions[46] - Income tax expenses decreased by approximately HKD 0.47 million or 58.75% to about HKD 0.33 million due to a reduction in taxable profits[52] Dividend Policy - The company did not recommend the payment of a dividend for the reporting period, consistent with the previous year[6] - The company does not recommend the payment of an interim dividend for the reporting period[40] - The company 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 under normal circumstances[77] Business Strategy and Market Conditions - The company continues to focus on its core business of providing electromechanical engineering system installation services, with plans for future project expansions[11] - The company is actively monitoring market conditions and adjusting its strategies to mitigate the impact of inflation and supply chain challenges[11] - The overall business environment remains challenging, but the company is optimistic about future growth opportunities[43] - The company plans to focus on potential large projects and public housing initiatives in Hong Kong[43] - The recovery of travel and tourism in Hong Kong is expected to boost local consumption and economic growth[41] Corporate Governance - The company is committed to good corporate governance to fulfill responsibilities to shareholders and enhance shareholder value[73] - The company has maintained compliance with the principles and applicable provisions of the corporate governance code during the reporting period, except for a deviation regarding the separation of roles between the chairman and CEO[73] - The audit committee consists of three independent non-executive directors, ensuring independent review and oversight of financial reporting[76] - The audit committee has reviewed the quarterly performance for the reporting period and confirmed compliance with applicable accounting standards and GEM listing rules[76] Share Capital and Ownership - Major shareholders include Success Step with a 42.37% stake and Noble Capital with a 40.13% stake in the company[65] - The total issued share capital of the company as of June 30, 2023, was 1,200,000,000 shares[63] - As of June 30, 2023, there are no major shareholders or high shareholding individuals other than those disclosed in the report[68] - The company has a total of 1,200,000,000 shares issued as of June 30, 2023[2] Compliance and Risk Management - The company has not adopted any new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[14] - The company has not engaged in any business that directly or indirectly competes with its group business during the reporting period[70] - The group does not face significant foreign exchange risks as all revenue-generating activities and borrowings are primarily transacted in HKD[56] - No significant contingent liabilities were reported as of June 30, 2023[57] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[69] Leadership - The chairman and CEO, Mr. Pan Zhengqiang, has over 34 years of experience in the fire and pump installation services sector, playing a key role in the group's overall business development and strategic planning[73]
荧德控股(08535) - 2024 Q1 - 季度财报