Financial Performance - For the nine months ended September 30, 2021, the company's revenue was approximately HKD 128,465,000, a decrease of about 21.9% compared to the same period in 2020[4]. - The loss attributable to shareholders for the nine months ended September 30, 2021, was approximately HKD 10,311,000, a reduction of about 49.0% compared to the same period in 2020[4]. - The gross profit for the nine months ended September 30, 2021, was HKD 1,639,000, down from HKD 3,063,000 in the same period of 2020[5]. - Operating loss for the nine months ended September 30, 2021, was HKD 10,454,000, compared to HKD 19,534,000 in the same period of 2020[5]. - The company reported a net loss before tax of HKD 10,501,000 for the nine months ended September 30, 2021, compared to HKD 19,593,000 in the same period of 2020[5]. - The total comprehensive loss attributable to shareholders for the nine months ended September 30, 2021, was HKD 10,145,000, compared to HKD 20,064,000 in the same period of 2020[5]. - The basic and diluted loss per share for the nine months ended September 30, 2021, was HKD 5.58, compared to HKD 10.94 in the same period of 2020[5]. - Other income for the nine months decreased to approximately HKD 26,000, a decline of about 96.6% from approximately HKD 770,000 in the previous year, mainly due to reduced interest income from bank deposits[46]. - The company recorded a loss attributable to equity shareholders of approximately HKD 10.31 million, a decrease of about 49.0% from HKD 20.22 million in the same period last year, attributed to a significant reduction in trade receivables impairment losses[49]. Revenue Breakdown - For the three months ended September 30, 2021, revenue from telecommunications services was HKD 805,000, down from HKD 6,898,000 in the same period of 2020[12]. - Revenue from distribution business for the three months ended September 30, 2021, was HKD 42,171,000, compared to HKD 49,172,000 in the same period of 2020[12]. - Revenue from telecommunications services decreased by approximately 58.6% to about HKD 1,583,000 for the nine months ended September 30, 2021, compared to HKD 3,827,000 in the same period last year[29]. - Distribution business revenue in Hong Kong generated approximately HKD 70,251,000, a decrease of about 10.5% from HKD 78,450,000 year-on-year[31]. - Revenue from mobile and data recharge services in China fell by approximately 69.4% to about HKD 7,851,000, down from HKD 25,645,000 in the previous year[34]. - The distribution business for mobile phones and electronic products in China reported revenue of approximately HKD 2,163,000, a decrease of about 44.9% from HKD 3,928,000 year-on-year[36]. - Revenue from mobile and data recharge distribution in Singapore decreased by approximately 11.6% to about HKD 46,569,000, down from HKD 52,689,000 in the same period last year[37]. - Revenue from telecommunications services and distribution business accounted for approximately HKD 9.48 million and HKD 118.98 million, representing 7.4% and 92.6% of total revenue, respectively[45]. Cost Management - Employee costs for the three months ended September 30, 2021, were HKD 830,000, a decrease of 26.5% from HKD 1,130,000 in 2020[6]. - Depreciation expenses for owned properties, plants, and equipment amounted to HKD 388,000 for the three months ended September 30, 2021, down from HKD 522,000 in 2020, representing a 25.6% decrease[6]. - The company is implementing strict cost control measures to improve its business and financial performance while exploring suitable business opportunities and investment prospects in the telecommunications sector[43]. - The company is actively seeking to lower unit costs for call time and mobile data to enhance competitiveness and reduce prepaid product prices[31]. Business Strategy and Development - The company operates as a mobile virtual network operator, purchasing call time and mobile data from various network operators for resale[28]. - The company plans to expand its distribution network overseas to attract more users during their travels[31]. - The company has adopted stricter credit risk standards to mitigate credit risks associated with distributors[36]. - The company remains cautiously optimistic about medium to long-term business development despite ongoing challenges from the COVID-19 pandemic[39]. - The company is monitoring the impact of COVID-19 on its financial condition and operational performance, taking necessary actions to maintain business stability[39]. - The company entered into a framework agreement with Micass (Shenzhen) Telecommunications Co., Ltd. to establish a joint venture in Hong Kong focused on providing comprehensive digital solutions for various industries and government entities globally[40]. - The joint venture will leverage Micass's integrated chips and solutions for 5G small cell radio units, aiming to expand opportunities in the global 5G infrastructure market[42]. Shareholder Information - The company did not recommend any dividend payment for the nine months ended September 30, 2021[4]. - The company did not recommend any dividends for the nine months ended September 30, 2021, consistent with the previous year[22]. - As of September 30, 2021, the company’s major shareholder, New Everich, holds approximately 56.49% of the shares, with Mr. Li Jiancheng owning 104,437,500 shares[62]. - The company has not proposed any dividends for the nine months ending September 30, 2021, consistent with the previous year[59]. Corporate Governance - The company has complied with the corporate governance code as per GEM listing rules during the nine months ended September 30, 2021[73]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited results for the nine months ended September 30, 2021, and found them to comply with applicable accounting standards[83]. - The company has established a risk management and internal control system, which has been confirmed as effective by management as of September 30, 2021[81]. - The company has not purchased, sold, or redeemed any of its shares during the nine months ended September 30, 2021[75]. Share Option Plan - The company has adopted a new share option plan effective from May 11, 2016, with a duration of 10 years[69]. - The maximum number of shares that may be issued under the share option plan is 18,487,500 shares, representing 10% of the issued shares as of September 30, 2021[70]. - No share options have been granted or cancelled under the share option plan during the nine months ended September 30, 2021[72]. - The company aims to attract and retain talented employees through the share option plan, rewarding contributions to long-term development[69]. RF-SIM Business - The company allocated approximately HKD 12,300,000 for the development and implementation of the RF-SIM business plan in Hong Kong and Macau, with about HKD 4,300,000 already utilized[54]. - The company faced challenges in promoting RF-SIM applications due to the dominance of a stored-value smart card system in the electronic wallet and payment market in Hong Kong[54]. - After three years of efforts, the company decided to shift the application of RF-SIM technology to smart living, targeting large residential property management companies in Hong Kong[54]. - The development and implementation of the RF-SIM business remain a key agenda for the company, with ongoing internal research to explore different application scenarios[56]. - The company will closely monitor the development of its RF-SIM business and consider further changes to the allocation of IPO proceeds if necessary[56]. - The company has exclusive licensing rights for RF-SIM intellectual property in Hong Kong and Macau, while another entity holds rights outside these regions[80]. - The company has a non-compete agreement in place to prevent conflicts with its business operations in Hong Kong and Macau[80].
直通电讯(08337) - 2021 Q3 - 季度财报