麦迪森控股(08057) - 2021 Q3 - 季度财报

Financial Performance Financial Summary For the nine months ended December 31, 2020, the Group's total revenue significantly decreased by 50.3% year-on-year, but loss attributable to owners of the Company narrowed considerably, with no dividends declared 2020 First Three Quarters Key Financial Indicators | Indicator | Nine Months Ended December 31, 2020 | Nine Months Ended December 31, 2019 | | :--- | :--- | :--- | | Revenue | Approx. HKD 81.6 million | Approx. HKD 164.1 million | | Loss Attributable to Owners of the Company | Approx. HKD 21.1 million | Approx. HKD 352.1 million | | Dividends | Nil | Nil | Consolidated Income Statement Analysis Despite a significant 50.3% revenue decline to HKD 81.592 million, the Group's total loss for the period narrowed substantially to HKD 21.06 million, primarily due to the absence of prior-year goodwill impairment Nine Months Ended December 31 Revenue Segment Comparison (HKD thousands) | Business Segment | 2020 | 2019 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Alcoholic Beverage Sales | 37,746 | 57,212 | -34.0% | | Financial Services | 0 | 7,238 | -100% | | Blockchain Services | 0 | 30,141 | -100% | | Loan Financing Services | 39,890 | 65,728 | -39.3% | | Auction (Discontinued) | 3,956 | 3,816 | +3.7% | | Total | 81,592 | 164,135 | -50.3% | - The significant narrowing of loss was primarily due to the absence of goodwill impairment loss in the current period, which amounted to HKD 257 million in the prior year[14] - Additionally, fair value changes of derivative financial instruments contributed a gain of HKD 46.705 million[14] Loss Per Share (HK cents) | Period | 2020 | 2019 | | :--- | :--- | :--- | | Nine Months Ended December 31 (Basic) | (0.18) | (6.31) | | Nine Months Ended December 31 (Diluted) | (0.18) | (6.32) | Consolidated Statement of Changes in Equity As of December 31, 2020, total equity attributable to owners increased slightly to HKD 196 million, driven by comprehensive income of HKD 9.076 million from overseas operations - As of December 31, 2020, total equity attributable to owners of the Company was approximately HKD 196 million[21] - For the nine months ended December 31, 2020, total comprehensive income for the period was approximately HKD 9.076 million, compared to a total comprehensive expense of HKD 367 million in the prior year[19][21] Notes to Financial Statements General Information and Accounting Policies The Company, incorporated in the Cayman Islands and listed on GEM, prepares its financial statements under HKFRS, with consistent accounting policies, reviewed by the audit committee but unaudited - As of December 31, 2020, Mr. Ding Pengyun was the controlling shareholder of the Company, holding approximately 42.19% of the issued share capital[24] - These financial statements have not been audited by the Company's auditor but have been reviewed by the Company's audit committee[27] Revenue and Segment Information This section details the Group's revenue sources, recognition timing, business segment performance, and geographical contributions, highlighting the significant decline in total revenue due to zero contributions from financial and blockchain services Revenue Composition Group revenue comprises contracts with customers and other sources, with alcoholic beverage sales and loan interest as primary continuing operations, while financial and blockchain service revenues ceased Nine Months Ended December 31 Revenue Sources (HKD thousands) | Revenue Source | 2020 | 2019 | | :--- | :--- | :--- | | Revenue from contracts with customers | | | | Alcoholic beverage sales | 37,746 | 57,212 | | Loan referral services | 5,645 | 5,992 | | Other income sources | | | | Loan interest income | 34,245 | 59,736 | | Blockchain services income | 0 | 30,141 | | Financial services interest income | 0 | 5,833 | Segment Results All continuing segments recorded losses, but the Group's overall loss significantly narrowed due to a substantial reduction in the blockchain services segment's loss from HKD 315 million to HKD 4.1 million Nine Months Ended December 31 Segment (Loss)/Profit (HKD thousands) | Business Segment (Continuing Operations) | 2020 | 2019 | | :--- | :--- | :--- | | Alcoholic Beverage Sales | (5,894) | (8,549) | | Financial Services | (2,276) | (8,011) | | Blockchain Services | (4,096) | (314,654) | | Loan Financing Services | (1,341) | 28,192 | Geographical Revenue Hong Kong and Mainland China were the primary revenue contributors for continuing operations, while European blockchain business revenue ceased in the current period Nine Months Ended December 31 Revenue by Region (HKD thousands) | Region (Continuing Operations) | 2020 | 2019 | | :--- | :--- | :--- | | China | 30,074 | 41,353 | | Hong Kong | 47,562 | 88,825 | | Europe | 0 | 30,141 | Key Profit and Loss Items Key items affecting profit and loss include government subsidies as other income, finance costs from convertible bonds, increased impairment provisions for loans, and decreased staff costs - Finance costs were approximately HKD 31.508 million, primarily from interest expenses on convertible bonds, promissory notes, and other borrowings[45] - Net impairment recognized on loans and interest receivables for the period was approximately HKD 22.576 million, significantly higher than HKD 4.369 million in the prior year[51] - Total staff costs decreased from HKD 55.738 million in the prior year to HKD 34.547 million[51] Share-based Payment Transactions The Company's share option scheme, active until 2025, saw 273.7 million options cancelled or lapsed during the period, with 511.2 million options remaining unexercised and no new grants - As of December 31, 2020, 511,200,000 share options granted under the share option scheme remained unexercised, representing approximately 8.2% of the total issued shares[62] - For the nine months ended December 31, 2020, 273,700,000 share options were cancelled or lapsed, with no new share options granted during the period[69] - During the period, the Group recognized share-based payment expenses of approximately HKD 6.844 million for share options granted[63] Management Discussion and Analysis Business Review The Group reclassified its disposed wine auction business as discontinued operations, while continuing operations revenue declined 51.6% due to macroeconomic factors, trade tensions, COVID-19, and subsidiary disposals - The Group disposed of Madison Auction Limited, which engaged in wine auction business, on November 2, 2020, and its financial results were reclassified as discontinued operations[71] - Revenue from continuing operations decreased by 51.6%, primarily due to economic slowdown in Mainland China and Hong Kong, US-China trade tensions, the COVID-19 pandemic, and the disposal of subsidiaries engaged in financial services and cryptocurrency mining businesses[72] Financial Review Total revenue decreased by 50.3% to HKD 81.6 million, but total loss significantly reduced to HKD 21.1 million, primarily due to the absence of substantial goodwill and plant impairment losses present in the prior year - Total revenue was approximately HKD 81.6 million, a year-on-year decrease of 50.3%; gross profit was approximately HKD 49.5 million, a year-on-year decrease of 37.0%[75] - Administrative and other operating expenses and depreciation charges significantly decreased by 61.7% and 62.7% respectively, due to the disposal of subsidiaries and cost control measures[78] - The loss significantly reduced by approximately HKD 331 million, mainly because there were no impairment losses on goodwill and plant and equipment in the current period, whereas these two impairments totaled approximately HKD 279 million in the prior year[78] Capital Structure and Business Outlook The Company completed a HKD 1 billion new share placement in December 2020 to supplement capital, and management anticipates continued economic challenges in 2021 while seeking new investment opportunities - The Company completed a placement on December 22, 2020, issuing 1,038,545,379 new shares at HKD 0.055 per share[83] - Management anticipates challenging economic conditions in 2021 but will continue to identify other investment opportunities to sustain long-term growth[84] Other Information Directors' and Shareholders' Interests This section discloses directors' and major shareholders' interests in shares and options, with controlling shareholder Mr. Ding Pengyun holding approximately 42.19% of the Company's equity - Disclosed interests of directors including Guo Qun, Zhang Li, Ji Zuguang in shares and share options[87] - Controlling shareholder Mr. Ding Pengyun, through entities he controls such as Royal Spectrum, Devoss Global, and CVP, collectively holds approximately 42.19% interest in the Company[93] Share Option Scheme The 2015 share option scheme, valid until 2025, details changes in options granted to key stakeholders, including cancellations and unexercised quantities, with exercise prices ranging from HKD 0.207 to HKD 1.89 - The share option scheme is valid until September 20, 2025[102] - Detailed information on share options granted to Devoss Global, Montrachet, various directors, consultants, and employees, with exercise prices ranging from HKD 0.207 to HKD 1.89[102][104] Corporate Governance The Company maintains high corporate governance standards, addressing a temporary deviation from the Chairman/CEO separation rule, and its audit committee has reviewed the unaudited financial report for compliance - From November 19, 2019, to July 31, 2020, Mr. Chan Ying Kit concurrently served as Chairman and Chief Executive Officer, deviating from Corporate Governance Code Provision A.2.1; the Company believes this promoted leadership consistency and balanced power[114] - The audit committee, comprising four members with Mr. Chu Kin Hong as Chairman (an independent non-executive director), has reviewed this financial report and deemed it to have made sufficient disclosures[117]