Financial Performance - For the nine months ended September 30, 2023, the group's revenue decreased by approximately 44.7% to about HKD 22.9 million from approximately HKD 41.4 million in the same period last year[5]. - The gross profit for the same period fell by about 51.7%, from approximately HKD 12.5 million to about HKD 6.1 million[5]. - The company recorded a loss attributable to owners of approximately HKD 4.3 million, compared to a profit of HKD 57,000 in the previous year[5]. - The operating loss for the nine months was approximately HKD 4.4 million, compared to an operating profit of HKD 455,000 in the previous year[6]. - Total comprehensive loss attributable to owners for the nine months was approximately HKD 4.43 million, compared to a total comprehensive income of HKD 33,000 in the previous year[9]. - The company reported a basic and diluted loss per share of HKD 0.45 for the nine months ended September 30, 2023, compared to earnings of HKD 0.01 per share in the previous year[6]. - For the three months ended September 30, 2023, the company reported a loss attributable to shareholders of approximately HKD 2.84 million, compared to a profit of HKD 2.29 million in the same period last year[28]. Revenue Sources - The company reported a significant decrease in revenue primarily driven by reduced income from design and renovation projects for elderly homes and medical centers[5]. - Revenue from design and renovation projects dropped from HKD 39.2 million to HKD 20.7 million, primarily due to a decrease of HKD 25.9 million and HKD 3.5 million from elderly homes and medical center projects, respectively[45]. - For the nine months ended September 30, 2023, external customer revenue from Hong Kong was HKD 22,901,000, a decrease of 44.6% compared to HKD 41,438,000 for the same period in 2022[20]. Cost Management - Material and subcontracting costs for the nine months ended September 30, 2023, were HKD 15,582,000, down 42.5% from HKD 27,024,000 in the same period of 2022[22]. - Total administrative expenses for the nine months ended September 30, 2023, amounted to HKD 27,388,000, a decrease of 34.5% compared to HKD 41,867,000 for the same period in 2022[22]. - Administrative expenses decreased from approximately HKD 12.4 million to about HKD 9.7 million, attributed to a reduction in legal fees and employee bonuses[50]. Dividends and Shareholder Returns - The board of directors did not recommend the payment of a dividend for the current period, while a mid-term dividend of HKD 0.05 was declared for the six months ended June 30, 2022[5]. - The board of directors did not recommend the distribution of dividends for the nine months ended September 30, 2023, consistent with the previous year[30]. Market Outlook and Strategy - The company remains cautiously optimistic about the recovery of the office property renovation demand as market stabilization measures are implemented and market sentiment improves[41]. - The company plans to strengthen its responsiveness to market trends and continue its business expansion plans, particularly in the commercial and healthcare sectors[42]. - The company will invest more resources to undertake larger projects and explore new business opportunities to maximize long-term returns for shareholders[42]. Employee and Corporate Governance - The group had a total of 15 employees as of September 30, 2023, an increase from 12 employees as of December 31, 2022[61]. - The company has complied with the corporate governance code as per GEM Listing Rules, except for a deviation regarding the separation of the roles of Chairman and CEO[78]. - The audit committee, established in November 2016, consists of three members and oversees financial reporting and risk management[82]. Shareholder Information - As of September 30, 2023, Mr. Liu Jingwei holds 750,000,000 shares, representing a 75% ownership stake in the company[66]. - Sino Emperor Group Limited, fully owned by Mr. Liu Jingwei, also holds 750,000,000 shares, equating to a 75% ownership[68]. - The total number of issued shares as of September 30, 2023, is 1,000,000,000[67]. - During the period, the company purchased a total of 7,420,000 shares under the share incentive plan, at a total cost of approximately HKD 1.0 million[75]. - The company aims to retain participants and encourage contributions to its growth through the share incentive plan adopted on May 17, 2021[74].
K W NELSON GP(08411) - 2023 Q3 - 季度财报