Financial Performance - The Group's revenue from advertising services decreased to approximately HK$58.2 million, down 4.4% from HK$60.9 million in the same period last year[10]. - The Group recorded a loss of approximately HK$17.6 million for the period, a significant increase of 482.6% compared to a gain of approximately HK$4.6 million for the same period ended 31 December 2021[17]. - The gross profit margin for advertising services dropped from approximately 38.6% to about 22.4% due to reduced marketing activities and rising production costs[20]. - The Group recorded a revenue decrease of approximately HK$58.2 million for the nine months ended 31 December 2022, representing a decline of approximately 4.4% compared to HK$60.9 million for the same period last year[42]. - The Group's gross profit margin for advertising services dropped to approximately 22.4%, down from approximately 38.6% during the corresponding period last year[44]. - The loss before income tax for the nine months ended 31 December 2022 was HK$17,570,000, compared to a profit of HK$4,628,000 in the same period of 2021[147]. - The total comprehensive expense attributable to owners of the company for the period was HK$10,206,000, a decrease from a comprehensive income of HK$3,318,000 in the previous year[147]. - The company reported a basic and diluted loss per share of HK$1.3 for the nine months ended 31 December 2022, compared to earnings of HK$0.4 in the same period of 2021[147]. - The Group reported a loss of HKD 17.57 million for the nine months ended December 31, 2022, with total comprehensive expenses for the period amounting to HKD 21.69 million[125]. Strategic Initiatives - The Group successfully acquired Hainan Weishi New Energy Technology Co., Ltd., which focuses on developing super-fast charging batteries, aligning with the Group's strategic shift towards renewable energy technology[24]. - The Group is consolidating its operations in the electric vehicle segment and exploring new business opportunities in renewable energy batteries[22]. - The board believes that the expansion and R&D of the new battery technology business will further increase the business scale and generate greater returns for shareholders[59][61]. - The company has successfully acquired Hainan Weishi New Energy Technology Co., Ltd. for HK$1.6 million, aiming to expand its renewable energy project portfolio[74]. - The Company terminated the acquisition agreement for a 12.005% equity interest in Guangxi Huaao Automobile Manufacturing Co. Ltd. on November 10, 2022, with a consideration of RMB100 million[77]. - The acquisition never materialized, and no payment was made by the Company under the agreement, which would have constituted a major transaction under GEM Listing Rules[78]. - The acquisition agreement for a 7.0% equity interest in Guangxi Huaao was terminated on August 31, 2022, due to unmet conditions[96]. Cost Management - Administrative and finance costs significantly increased during the period, contributing to the overall loss[17]. - Administrative expenses increased by approximately 100.9% to approximately HK$24.5 million, primarily due to increased staff costs and expenses related to acquisitions[50]. - Finance costs rose by approximately 76.9% to approximately HK$2.5 million, attributed to increased borrowings from approximately HK$13.0 million to approximately HK$23.3 million[52]. - The Group is closely monitoring market conditions and has implemented strategic plans to control operational costs while maintaining service quality[12]. - The company plans to continue developing cost-effective marketing solutions in the advertising business segment to retain clients in both the PRC and Hong Kong[68][69]. Fundraising Activities - The Group plans to raise gross proceeds of up to approximately HK$51 million through a rights issue, offering one rights share for every two existing shares at a subscription price of HK$0.10 per rights share[30]. - The maximum net proceeds from the Rights Issue are estimated to be approximately HK$48.5 million, with a net subscription price per Rights Share of approximately HK$0.095[32]. - Approximately 47% (or approximately HK$23 million) of the net proceeds will be used for debt repayment, 41% (or approximately HK$20 million) for the expansion and R&D of new battery technology, and 12% (or approximately HK$5.5 million) for general working capital[32]. - The rights issue received valid acceptances for 281,026,670 shares, representing approximately 55.16% of the total number of rights shares offered[60]. - The remaining unsubscribed Rights Shares represent approximately 44.84% of the total number of Rights Shares offered under the Rights Issue[36]. - The actual net proceeds raised from the placing of 169,828,478 shares on October 21, 2022, was approximately HK$26 million[91]. Market Outlook - The business environment is expected to improve in the second half of 2023 due to the easing of COVID-19 restrictions in China and Hong Kong[40]. - Following the relaxation of COVID-19 restrictions, the business outlook for the PRC and Hong Kong is expected to improve in the second half of 2023[93]. Corporate Governance - The Board confirmed compliance with all code provisions of the Corporate Governance Code, except for the requirement of providing 14 days' notice for regular board meetings[113]. - The Audit Committee reviewed the unaudited third quarterly results and confirmed compliance with applicable accounting standards and GEM Listing Rules[120]. - The Group's financial reporting system, risk management, and internal control systems were reviewed and found adequate by the Audit Committee[116]. - The audit committee consists of three independent non-executive directors, ensuring oversight and governance of financial reporting[142]. Employee Information - As of December 31, 2022, the Group had approximately 35 employees, with total staff costs amounting to approximately HK$3.2 million, down from HK$5.4 million for the nine months ended December 31, 2021[81]. - The Group's employee compensation policy is linked to individual performance and is regularly reviewed based on prevailing salary trends in the regions of operation[106]. - Employee benefit expenses for the three months ended December 31, 2022, were HK$1,693,000, down from HK$2,278,000 in the same period of 2021[163]. Taxation - The group has not provided for Hong Kong Profit Tax for the nine months ended December 31, 2022, as its subsidiaries incurred losses for taxation purposes[165]. - The company’s PRC subsidiaries incurred losses for taxation purposes, resulting in no provision for PRC Enterprise Income Tax for the nine months ended December 31, 2022[187]. - The company’s entities in Hong Kong are subject to a two-tiered profits tax rates regime, with the first HK$2 million taxed at 8.25%[186].
嘉鼎国际集团(08153) - 2023 Q3 - 季度财报