麦迪森控股(08057) - 2020 Q3 - 季度财报

Corporate Information The company experienced significant personnel changes within its board and senior management during the reporting period - During the reporting period, significant personnel changes occurred within the company's board, committees, and senior management, including resignations and new appointments for roles such as Chairman, CEO, Executive Director, and Company Secretary[7][8][10] Financial Highlights Revenue decreased by 30.2% to HK$164.1 million, leading to a 108.7% expansion in loss attributable to owners, reaching HK$327.5 million Financial Highlights for the Nine Months Ended December 31, 2019 | Metric | Amount (HKD) | Year-on-Year Change | | :--- | :--- | :--- | | Revenue | Approx. 164,100,000 | -30.2% | | Loss Attributable to Owners of the Company | Approx. 327,500,000 | Loss expanded by 108.7% | | Dividends | Not distributed | No change | Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The company reported HK$164 million in revenue, a 30.2% decrease, with loss for the period expanding to HK$352 million and loss attributable to owners reaching HK$327 million, driven by significant impairment losses Key Items from the Statement of Profit or Loss for the Nine Months Ended December 31, 2019 | Item (HKD '000) | Nine Months 2019 | Nine Months 2018 (Restated) | | :--- | :--- | :--- | | Revenue | 164,135 | 235,085 | | Operating costs | (85,486) | (101,501) | | Impairment loss recognized on goodwill | (257,440) | (6,847) | | Impairment loss recognized on property, plant and equipment | (21,760) | – | | Gain on disposal of a subsidiary | 42,594 | – | | Loss before tax | (351,763) | (137,448) | | Loss for the period | (352,118) | (150,773) | | Loss attributable to owners of the Company | (327,479) | (156,867) | Condensed Consolidated Statement of Changes in Equity Equity attributable to owners of the company substantially decreased from HK$167 million due to significant losses, with non-controlling interests also declining Notes to the Condensed Consolidated Financial Statements 1. General Information The company, a Cayman Islands-incorporated investment holding company listed on GEM, primarily operates in alcoholic beverage sales, financial services, blockchain, loan financing, and auctions - The Group primarily operates in five key business segments: alcoholic beverage sales, financial services, blockchain services, loan financing services, and alcoholic beverage auction services[30] 2. Basis of Preparation and Restatement Financial statements are prepared under GEM Listing Rules, with comparative figures restated due to a business combination under common control - Due to a business combination under common control, financial statement data for prior periods have been restated to maintain comparability[32][34] 4. Revenue and Segment Information Group revenue decreased 30.2% due to declines in loan financing and alcoholic beverage sales, while blockchain services grew but incurred substantial losses, with Hong Kong and China as key declining regions Segment Revenue and (Loss) Profit for the Nine Months Ended December 31 | Segment (HKD '000) | 2019 Revenue | 2018 Revenue (Restated) | 2019 (Loss)/Profit | 2018 (Loss)/Profit (Restated) | | :--- | :--- | :--- | :--- | :--- | | Alcoholic beverage sales | 57,212 | 92,135 | (8,549) | 2,185 | | Financial services | 7,238 | 10,920 | (8,011) | (6,750) | | Blockchain services | 30,141 | 15,721 | (314,654) | (36,258) | | Loan financing services | 65,728 | 113,082 | 28,192 | 82,123 | | Auction | 3,816 | 3,227 | (2,919) | (319) | | Total | 164,135 | 235,085 | (305,941) | 40,981 | Revenue by Geographical Region for the Nine Months Ended December 31 | Region (HKD '000) | 2019 | 2018 (Restated) | | :--- | :--- | :--- | | Hong Kong | 92,641 | 168,024 | | China | 41,353 | 56,991 | | Europe | 30,141 | 10,070 | | Total | 164,135 | 235,085 | 8. Loss for the Period Loss for the period was impacted by HK$55.7 million in staff costs and HK$25.5 million in depreciation, while equity-settled share-based payment expenses for consultants significantly decreased from HK$50.2 million to HK$0.6 million Major Expenses Included in Loss for the Period for the Nine Months Ended December 31 | Item (HKD '000) | 2019 | 2018 (Restated) | | :--- | :--- | :--- | | Total staff costs | 55,738 | 69,413 | | Depreciation of property, plant and equipment | 16,866 | 19,477 | | Depreciation of right-of-use assets | 8,672 | – | | Equity-settled share-based payment expenses – consultants | 627 | 50,192 | 10. Loss Per Share Basic loss per share widened to 6.31 HK cents from 3.75 HK cents, primarily due to a substantial increase in loss attributable to owners Loss Per Share (HK Cents) | Item | Nine Months Ended December 31, 2019 | Nine Months Ended December 31, 2018 (Restated) | | :--- | :--- | :--- | | Basic | (6.31) | (3.75) | | Diluted | (6.32) | (3.80) | 11. Share-based Payment Transactions The Group granted over 360 million new share options, bringing total outstanding options to 796 million shares (15.3% of issued shares), with related expenses significantly decreasing to HK$2.48 million - On August 16 and December 6, 2019, the company granted 11,500,000 and 355,400,000 share options, respectively[71] - For the nine months ended December 31, 2019, share-based payment expenses related to share options amounted to approximately HK$2,483,000, representing a significant year-on-year decrease[74] 12. Business Combination under Common Control and Restatement The acquisition of Hackett Enterprises Limited on March 29, 2019, treated as a common control business combination, required restatement of 2018 comparative financial data to reflect its inclusion - On March 29, 2019, the company completed the acquisition of Hackett, which was classified as a business combination under common control, requiring restatement of comparative financial data[81] - Following restatement, revenue for the nine months ended 2018 was adjusted from HK$122 million to HK$235 million, and loss before tax was adjusted from HK$207 million to HK$137 million[91] Management Discussion and Analysis Business Review Group revenue declined 30.2% to HK$164 million due to downturns in loan financing and wine businesses, and European cryptocurrency mining operations ceased in January 2020 despite blockchain services growth Revenue Contribution by Business Segment for the Nine Months Ended December 31, 2019 | Business Segment | Revenue (HKD) | | :--- | :--- | | Wine business | Approx. 57,200,000 | | Wine auction business | Approx. 3,800,000 | | Financial services business | Approx. 7,200,000 | | Blockchain services business | Approx. 30,100,000 | | Loan financing business | Approx. 65,800,000 | - The Group ceased its cryptocurrency mining operations in Europe on January 22, 2020[94] Financial Review Financial performance deteriorated with revenue declining 30.2% due to weak loan financing and alcoholic beverage sales, while HK$279 million in impairment losses on blockchain-related assets led to a 108.7% increase in loss attributable to owners, partially offset by a HK$42.6 million gain from subsidiary disposal Revenue Revenue decreased 30.2% to HK$164 million, primarily due to reduced loan financing income from economic slowdowns and declining alcoholic beverage sales from competition and social events - The decrease in revenue was primarily attributable to (i) reduced income from loan financing business due to economic slowdown, and (ii) a decline in alcoholic beverage sales due to intense competition and social events in Hong Kong[95] Impairment Loss The Group recognized substantial impairment losses on cryptocurrency mining assets, including HK$257 million on Diginex goodwill and HK$21.8 million on related property and equipment, due to unmet business forecasts - Due to delays in the development of high-performance computing services, the Group recognized an impairment loss of approximately HK$257,400,000 on goodwill arising from the acquisition of Diginex[107] - An impairment loss of approximately HK$21,800,000 was recognized on property, plant and equipment of Diginex and Nordic[107] Gain on Disposal of a Subsidiary The Group disposed of its 55% equity in Novel Idea Holdings Limited for HK$45 million, recognizing a gain of approximately HK$42.6 million - The Group recorded a gain of approximately HK$42,600,000 from the disposal of Novel Idea, a subsidiary engaged in cryptocurrency derivatives trading platforms[111] Loss Attributable to Owners of the Company Loss attributable to owners expanded 108.7% from HK$157 million to HK$328 million, primarily due to substantial impairment losses on Diginex and Nordic assets, partially offset by the Novel Idea disposal gain - Loss attributable to owners increased by approximately HK$171 million to HK$328 million, primarily due to significant impairment losses in the blockchain business[115] Significant Investments, Material Acquisitions and Disposals of Subsidiaries, and Future Plans for Material Investments and Capital Assets As of December 31, 2019, the Group held minor stakes in Tencent and AAC Technologies, disposed of money market funds, sold 55% of Novel Idea, and increased its equity in BITOCEAN Co., Ltd. to 90.66% Significant Financial Assets Held for Trading as of December 31, 2019 | Investment Target | Fair Value (HKD '000) | Percentage of Total Assets | | :--- | :--- | :--- | | Tencent Holdings Limited (700) | 376 | 0.03% | | AAC Technologies Holdings Inc. (2018) | 340 | 0.03% | - During the period, the Group disposed of its 55% equity interest in Novel Idea and increased its equity interest in BITOCEAN Co., Ltd[125] Outlook and Prospects Management anticipates significant uncertainties from Hong Kong social events and the COVID-19 outbreak, with the company focusing on quality products and services while exploring new business directions - Management anticipates that ongoing social events in Hong Kong and the COVID-19 outbreak will bring business uncertainties[129] - The company's strategy involves consolidating its high-end fine wine business and seeking new business directions to mitigate negative impacts[129] Other Information Unauthorised Disposal The Group initiated legal proceedings in Shenzhen against Diginex's minority shareholders and Chinese management for unauthorized disposal of cryptocurrency mining equipment in China - The Group has filed a lawsuit concerning the unauthorized disposal of its cryptocurrency mining equipment in China, targeting Diginex's minority shareholders and management company[155] Material Events after the Reporting Period Post-reporting period, the Group completed two significant divestitures: selling 49% of Bartha International on January 17, 2020, and disposing of Madison Future Games (including Diginex and Nordic) on January 22, 2020, terminating European crypto mining operations - On January 17, 2020, the Group completed the disposal of its 49% equity interest in Bartha International, after which Bartha and its subsidiaries are no longer consolidated into the Group's financial statements[169][172] - On January 22, 2020, the Group disposed of Madison Future Games and its subsidiaries (including Diginex and Nordic) for a nominal consideration of HK$1.00, formally terminating its European cryptocurrency mining operations[173]