Revenue Performance - For the three months ended September 30, 2019, the revenue was HK$79,968,000, an increase from HK$31,748,000 in the same period of 2018, representing a growth of 151.1%[10] - For the nine months ended September 30, 2019, the revenue was HK$166,804,000, up from HK$101,136,000 in 2018, showing a growth of 64.7%[10] - Revenue from contracts with customers for the nine months ended 30 September 2019 was HK$166,804,000, a decrease of 18.5% compared to HK$204,940,000 for the same period in 2018[35] - Revenue from the sale of computer and mobile phone software and toolbar advertisement for the three months ended 30 September 2019 was HK$17,497,000, down 11.4% from HK$19,707,000 in 2018[35] - E-commerce revenue for the nine months ended 30 September 2019 was HK$78,874,000, compared to no revenue in the same period of 2018, indicating a significant market expansion[35] - Revenue from kindergarten education was HK$0 for the nine months ended September 30, 2019, a decrease from HK$3,305,000 in 2018[35] - Revenue from the Corporate Management Solutions and I.T. Contract Services Business was approximately HK$35,829,000, representing an increase of approximately 12.3% from HK$31,897,000 in the same period last year[146] - The revenue from Hong Kong for the nine months ended September 30, 2019 was HK$110,547,000, a substantial increase from HK$36,745,000 in 2018, reflecting a growth of 200.5%[22] - Revenue from the United States decreased to HK$16,083,000 for the nine months ended September 30, 2019, down from HK$23,330,000 in the same period of 2018, representing a decline of 30.8%[22] - Other regions, including Mainland China, contributed HK$22,358,000 in revenue for the nine months ended September 30, 2019, compared to HK$19,711,000 in 2018, showing an increase of 8.3%[22] Profit and Loss - The gross profit for the three months ended September 30, 2019, was HK$17,759,000, a slight decrease from HK$18,202,000 in 2018, reflecting a decline of 2.4%[10] - The loss for the period from continuing operations was HK$3,205,000, compared to a loss of HK$1,722,000 in the same period of 2018, indicating an increase in loss of 86.1%[10] - The loss before taxation for the three months ended September 30, 2019, was HK$2,368,000, compared to a loss of HK$664,000 in the same period of 2018, representing an increase in loss of 256.4%[10] - The loss for the nine months ended September 30, 2019, was HK$4,490,000, compared to a loss of HK$184,428,000 in the same period of 2018, indicating a significant reduction in loss of 97.6%[10] - The basic loss per share for the three months ended September 30, 2019, was HK$0.96, compared to HK$0.64 in 2018, reflecting an increase in loss per share of 50%[15] - The total comprehensive loss was HK$10,128,000, a significant decrease from HK$192,027,000 in the same period of 2018, indicating a reduction in losses by 94.7%[20] - The loss attributable to owners of the Company for the nine months ended September 30, 2019, was HK$7,983,000, compared to HK$189,507,000 in 2018[64] - The total loss for the period attributable to owners was HK$4,248,000 for the three months ended September 30, 2019, compared to HK$2,840,000 in 2018[64] Expenses and Costs - Total selling and administrative expenses for the three months ended September 30, 2019, were HK$18,610,000, down from HK$20,598,000 in 2018, a decrease of 9.6%[10] - Total staff costs for the nine months ended September 30, 2019, were HK$20,385,000, down from HK$25,731,000 in the same period of 2018, indicating a reduction of 20.9%[45] - The current tax expense for the nine months ended September 30, 2019, was HK$2,158,000, a decrease from HK$3,810,000 in the same period of 2018, reflecting a reduction of 43.2%[50] Impairment and Losses - The company reported an impairment loss on trade and other receivables of HK$107,000 for the three months ended September 30, 2019, compared to HK$124,000 in 2018, a decrease of 13.7%[10] - The company incurred a loss on deemed disposal of an associate amounting to HK$2,129,000 for the nine months ended September 30, 2019, with no such loss reported in the same period of 2018[38] - Impairment loss on goodwill for the nine months ended September 30, 2019, was HK$163,000,000, significantly impacting the overall financial performance[38] - The total impairment loss on amounts due from deconsolidated subsidiaries for the nine months ended September 30, 2019, was HK$570,000, with no such loss reported in the same period of 2018[38] Financial Position - The accumulated losses as of September 30, 2019, amounted to HK$189,507,000, a decrease from HK$908,697,000 at the beginning of the year, representing a reduction of 79.1%[22] - The total equity attributable to owners of the company decreased to HK$611,363,000 as of September 30, 2019, from HK$648,833,000 at the beginning of the year, reflecting a decline of 5.8%[22] - The Group's financial statements have been prepared under the historical cost convention, with certain financial instruments measured at fair values[28] Business Segments - The Group's principal activities include research, development, and distribution of software, e-commerce operations, securities investment, and IT contract services[26] - The Group's reportable segments included Software Business, Securities Investment Business, Corporate Management Solutions, and B2C Online Sales Platform and B2B Product Trading[73] - The segment revenue reported for the Corporate Management Solutions and I.T. Contract Services Business was HK$35,888,000[82] - The Software Business recorded revenue of approximately HK$52,101,000, a decrease of approximately 17.1% compared to HK$62,822,000 in the same period of 2018[133] - The B2C Online Sales Platform and B2B Product Trading Business generated revenue of approximately HK$78,874,000, with a segment profit of approximately HK$889,000, marking the first revenue for this segment[150] Strategic Developments - The Group aims to diversify its business portfolio and expand geographical footprint through the B2B Product Trading initiative, introducing high-quality products globally[152] - The Group continues to explore business opportunities in the Asia-Pacific regions while maintaining mature distribution channels in traditional markets like the U.S., Russia, Japan, and Europe[137] - The Group has launched enhanced software products, including IObit Software Updater 2 and IObit Malware Fighter 7, to strengthen its flagship offerings[135] Market Challenges - The competitive landscape in the I.T. market and declining popularity of PC devices have posed ongoing challenges to the Software Business, leading to weak sales performance during the period[138] - The Securities Investment Business segment recorded a loss of approximately HK$134,000, a decrease of approximately 93.4% compared to a loss of approximately HK$2,031,000 in 2018[156] Investments and Disposals - The Group disposed of 186,492,340 shares of Finsoft Financial Investment Holdings Limited, generating net proceeds of approximately HK$12.4 million at an average price of approximately HK$0.07 per share[158] - The Finsoft Disposal resulted in an accumulated fair value loss of approximately HK$13,340,000, which was transferred from the investment revaluation reserve to accumulated losses[158] - The Directors believe the Subscription represents a strategic move to potentially revive the Securities Investment Business, which had been suspended due to high risks[166]
智易控股(08100) - 2019 Q3 - 季度财报