Financial Performance - For the first quarter of 2019, the company reported a revenue of HKD 2,643,000, a decrease of 39% compared to HKD 4,355,000 in the same period of 2018[6] - The gross profit for the first quarter was HKD 2,317,000, down 35.5% from HKD 3,600,000 year-on-year[6] - Operating loss for the quarter was HKD 915,000, compared to an operating profit of HKD 131,000 in the previous year[6] - The company recorded a pre-tax loss of HKD 1,496,000, which is an increase of 92.5% from a loss of HKD 776,000 in the same quarter of 2018[6] - The net loss attributable to owners of the company was HKD 1,416,000, compared to a loss of HKD 776,000 in the prior year, representing an increase of 82.5%[8] - Basic and diluted loss per share for the quarter was HKD 0.47, compared to HKD 0.26 in the same period last year[8] - The group reported a net loss attributable to owners of approximately HKD 1,416,000 for the three months ended February 28, 2019, compared to a net loss of HKD 776,000 for the same period in 2018[22] - The group incurred financing costs of HKD 581,000 for the three months ended February 28, 2019, compared to HKD 907,000 in the same period of 2018[19] - The group’s total equity as of February 28, 2019, was HKD (18,643,000), reflecting a loss during the period[24] Expenses - The company incurred software research and development and operational expenses of HKD 774,000, a reduction of 37.1% from HKD 1,231,000 in the previous year[6] - Sales and marketing expenses increased to HKD 340,000, up 56.5% from HKD 217,000 year-on-year[6] - Administrative expenses were HKD 2,115,000, slightly up from HKD 2,018,000 in the same quarter of 2018[6] - The group reported a decrease in employee costs, with salaries and allowances amounting to HKD 2,422,000, down from HKD 2,502,000 in the previous year[18] - Operating expenses for the three months ended February 28, 2019, were approximately HKD 3,229,000, a decrease of 7% compared to approximately HKD 3,466,000 in the same period last year[28] Revenue Sources - Revenue from software licensing and related services was HKD 787,000, down 71% from HKD 2,681,000 in the previous year[18] - The group recorded an unaudited revenue of approximately HKD 2,643,000 for the three months ended February 28, 2019, a decrease of 39% compared to approximately HKD 4,355,000 in the same period last year[27] Business Development - The group aims to enhance advanced financial solutions and services to meet customer and market demands, focusing on core business and technology development[37] - The group plans to explore new business opportunities and diversify its business lines to maintain competitiveness and achieve growth[39] - The company plans to enhance its core business and technology development through product functionality upgrades and service expansion[41] - The upgrade of the OCTOSTP system is underway, with a new C version being developed to replace the old VB version, aimed at improving technical performance and stability[42] - New products are being developed, including a High Frequency Trading Engine and a CCASS Report Generator, to enhance competitiveness and support high-frequency trading[45] - The company has established a new sales and business product team to diversify its product offerings and expand its customer base[49] - The company has signed a new partnership agreement with a well-known IT solutions provider to resell products and services, enhancing its service offerings[49] - The company is expanding its customer base by targeting asset management firms and other departments within banks, in addition to its traditional focus on Hong Kong securities brokers and banks[43] Human Resources - The company has hired a human resources professional to identify and recruit IT talent, crucial for expanding its fintech resource services[50] - The company is collaborating with six recruitment agencies to source more IT professionals for its services[51] Shareholder Information - Maximizer International Limited holds 177,793,941 shares, representing 59.05% of the issued share capital[60] - DGM Trust Corporation, as trustee, holds 194,244,779 shares, accounting for 64.51% of the issued share capital[60] - A total of 123,529,400 convertible preferred shares were issued to Maximizer International Limited at an initial conversion price of HKD 0.17 per share[61] - The company issued a five-year non-listed zero-coupon convertible bond with a principal amount of HKD 29,699,876.20 to Maximizer International Limited, convertible at HKD 0.17 per share[61] Audit and Compliance - The audit committee held one meeting to review the company's financial reports for the three months ending February 28, 2019[68] - The company did not repurchase any of its listed securities during the three months ending February 28, 2019[69] - No records of short positions held by directors or senior management in the company's shares or related securities were found[57] - No other individuals or major shareholders were recorded with short positions in the company's shares[63] - The company has not disclosed any other interests recorded in the register as per the Securities and Futures Ordinance[64] - The audit committee is responsible for overseeing the relationship between the company and external auditors[66] Financial Reporting Standards - The company has adopted new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial statements for the period[11] - The group has not applied new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective, and is currently assessing their impact[16] - The group has not recognized any deferred tax assets due to uncertainty regarding future profit sources[21] - The group has approximately HKD 67,904,000 in unrecognized deferred tax liabilities that can be carried forward indefinitely to offset future taxable profits[9] - The group’s capital and reserves showed a decrease in reserves by HKD 59,691,000 due to the application of HKFRS 15[16]
辰罡科技(08131) - 2019 Q1 - 季度财报