Financial Performance - For the three months ended August 31, 2019, the revenue was HKD 3,006,000, a decrease of 6.3% compared to HKD 3,209,000 for the same period in 2018[7]. - The gross profit for the nine months ended August 31, 2019, was HKD 7,030,000, down 32.3% from HKD 10,380,000 in the previous year[7]. - Operating loss for the three months ended August 31, 2019, was HKD 1,222,000, compared to a loss of HKD 697,000 in the same period of 2018[7]. - The total comprehensive loss for the nine months ended August 31, 2019, was HKD 4,087,000, compared to a profit of HKD 7,000 in the same period of 2018[9]. - Basic and diluted loss per share for the three months ended August 31, 2019, was HKD 0.576, compared to a loss of HKD 0.231 in the same period of 2018[9]. - The total operating expenses for the nine months ended August 31, 2019, were HKD 9,692,000, an increase from HKD 10,374,000 in the previous year[7]. - The company reported an unaudited revenue of approximately HKD 3,006,000 for the three months ended August 31, 2019, a decrease of 6% compared to approximately HKD 3,209,000 for the same period last year[37]. - The unaudited net loss attributable to shareholders for the three months ended August 31, 2019, was approximately HKD 1,734,000, compared to an unaudited net loss of approximately HKD 697,000 for the same period last year[28]. Revenue Breakdown - Revenue breakdown for the three months ended August 31, 2019: HKD 1,306,000 (43%) from software licensing and professional services, HKD 1,052,000 (35%) from maintenance services, HKD 511,000 (17%) from computer hardware sales, and HKD 137,000 (5%) from fintech resource services[37]. - The group reported a total revenue of HKD 14,168,000 for the nine months ended August 31, 2019, compared to HKD 12,500,000 for the same period in 2018, representing a growth of approximately 13.4%[18]. - Revenue from software licensing and related services decreased to HKD 4,379,000 for the nine months ended August 31, 2019, down from HKD 6,283,000 in 2018, a decline of about 30.3%[18]. - Revenue from maintenance services also declined to HKD 3,220,000 for the nine months ended August 31, 2019, compared to HKD 4,480,000 in 2018, a decrease of approximately 28.2%[18]. Expenses and Costs - The financing costs for the nine months ended August 31, 2019, were HKD 1,769,000, compared to no financing costs in the same period of 2018[7]. - Software research and development and operating expenses for the three months ended August 31, 2019, were HKD 599,000, down from HKD 892,000 in the same period of 2018[7]. - Sales and marketing expenses for the nine months ended August 31, 2019, were HKD 726,000, an increase from HKD 688,000 in the previous year[7]. - The group incurred an impairment loss of approximately HKD 200,000 on trade receivables due to a customer whose company registration in Hong Kong was revoked[40]. - For the three months ended August 31, 2019, the group's unaudited operating expenses were approximately HKD 3,330,000, a decrease of 7% compared to approximately HKD 3,585,000 in the same period last year[39]. Assets and Liabilities - The group’s total assets included a liability portion of approximately HKD 14,579,000 related to convertible bonds as of August 31, 2019[23]. - The liability portion of the convertible bonds as of August 31, 2019, was HKD 14,579,000, reflecting an increase from HKD 12,810,000 as of December 1, 2018[34]. - The company generated an unaudited tax loss of approximately HKD 69,299,000 in Hong Kong, which can be carried forward indefinitely to offset future taxable profits[35]. - The company confirmed that no deferred tax assets were recognized due to the unpredictability of future profit sources[35]. Business Strategy and Development - The group plans to focus on improving advanced financial solutions and services to meet customer and market demands[48]. - The group aims to expand its customer base by leveraging existing relationships and expertise in procuring computer hardware[48]. - The group has established a new sales and business product team to engage with different clients and expand its customer base[45]. - The company is committed to developing new products, such as the "FinReg Innovation Tool," to assist brokerage firms in compliance and risk management[42]. - The company will continue to explore new business opportunities and diversify its revenue sources from existing and potential clients[49]. - The company is developing new products such as a high-frequency trading engine (HFT) to enhance competitiveness and meet brokerage operational needs[57]. - The company has signed several sales contracts worth approximately HKD 4,700,000 for the implementation and enhancement of the OCTO STP system with various brokerage firms[44]. - The company is collaborating with seven recruitment agencies to find more IT professionals for its fintech resource services[62]. Shareholder Information - As of August 31, 2019, Maximizer International Limited holds 177,793,941 shares, representing 59.05% of the issued share capital[72]. - Pacific East Limited owns 16,450,838 shares, accounting for 5.46% of the issued share capital[72]. - DGM Trust Corporation, as a trustee, holds 194,244,779 shares, which is 64.51% of the issued share capital[72]. - The company issued 123,529,400 convertible preference shares at an initial conversion price of HKD 0.17 per ordinary share[73]. - The company also issued convertible bonds with a principal amount of HKD 29,699,876.20, convertible at the same initial price of HKD 0.17 per ordinary share[74]. Governance and Compliance - The audit committee held three meetings to review the company's reports and financial statements during the nine months ending August 31, 2019[79]. - The audit committee is responsible for ensuring fair and independent investigations of any potential misconduct related to financial reporting and internal controls[79]. - There are no records of other individuals or major shareholders holding short positions in the company's shares[75][76]. - The company has not granted any further options under its share option scheme since May 27, 2011[65]. - No repurchase of listed securities occurred during the nine months ended August 31, 2019[80]. - No purchase or sale of the company's listed securities was conducted by the company or its subsidiaries during the reporting period[80]. - The board of directors consists of five members, including two executive directors and three independent non-executive directors[80].
辰罡科技(08131) - 2019 Q3 - 季度财报