Revenue Performance - The Group's revenue for the three months ended September 30, 2019, was HK$8,302,000, a decrease of 52.5% compared to HK$17,457,000 for the same period in 2018[10]. - For the nine months ended September 30, 2019, the Group's revenue was HK$29,704,000, down 24.2% from HK$39,196,000 in the previous year[10]. - Revenue includes sales from software platform services, mobile game development, and interest income from money lending[42]. - For the three months ended September 30, 2019, the revenue from software platform provision was HK$3,792,000, a decrease of 40% compared to HK$6,313,000 in the same period of 2018[43]. - Mobile gaming and application revenue significantly dropped to HK$20,000 from HK$7,906,000 year-over-year for the three months ended September 30, 2019[43]. - Interest income from money lending business increased to HK$4,490,000 for the three months ended September 30, 2019, up 38.8% from HK$3,238,000 in the same period of 2018[43]. - Total revenue for the nine months ended September 30, 2019, was HK$29,704,000, a decrease of 24.2% compared to HK$39,196,000 in the same period of 2018[43]. - Interest income from the Money Lending Business increased significantly to approximately HK$14,737,000, up from approximately HK$9,047,000 in 2018, contributing approximately 49.6% to total revenue[76][99]. - Revenue from the Software Platform Business was approximately HK$13,534,000, an increase of approximately 10.0% compared to HK$12,301,000 in 2018, accounting for approximately 45.6% of total revenue[76][88]. Profit and Loss - The gross profit for the three months ended September 30, 2019, was HK$7,392,000, representing a decline of 54.5% from HK$16,285,000 in the same period of 2018[10]. - The loss from operations for the three months ended September 30, 2019, was HK$4,184,000, compared to a loss of HK$1,426,000 for the same period in 2018[11]. - The loss for the period attributable to owners of the Company for the three months ended September 30, 2019, was HK$2,849,000, compared to a loss of HK$3,646,000 in the previous year[11]. - The basic and diluted loss per share for the three months ended September 30, 2019, was HK$0.22, an improvement from HK$0.29 in the same period of 2018[11]. - The Group reported a loss before taxation of HK$4,711,000 for the three months ended September 30, 2019, compared to a loss of HK$1,657,000 in the previous year[11]. - The company reported a loss of HK$4,182,000 for the three months ended September 30, 2019, compared to a loss of HK$2,357,000 in the same period of 2018, representing an increase in loss of approximately 77.4%[13]. - For the nine months ended September 30, 2019, the total loss was HK$12,174,000, a decrease of 11.5% compared to a loss of HK$13,761,000 in the same period of 2018[13]. - The total comprehensive expense for the three months ended September 30, 2019, was HK$4,178,000, compared to HK$3,682,000 for the same period in 2018, indicating an increase of 13.5%[13]. - The company attributed a loss of HK$2,827,000 to owners of the Company for the three months ended September 30, 2019, down from HK$4,971,000 in the same period of 2018, a reduction of 43.2%[13]. - The company reported a total comprehensive expense of HK$12,229,000 for the nine months ended September 30, 2019, compared to HK$15,534,000 for the same period in 2018, reflecting a decrease of 21.5%[13]. Expenses - The Group's administrative expenses for the three months ended September 30, 2019, were HK$8,740,000, down from HK$11,354,000 in the previous year[10]. - Research and development expenses for the three months ended September 30, 2019, were HK$2,290,000, compared to HK$2,146,000 in the same period of 2018[10]. - Salaries, wages, and other benefits for the three months ended September 30, 2019, were HK$4,908,000, a slight decrease from HK$5,019,000 in the same period of 2018[58]. - Administrative and other operating expenses decreased to approximately HK$39,257,000 from approximately HK$43,225,000 in 2018, primarily due to reductions in administrative and research and development expenses[79][83]. - The total finance charges for the nine months ended September 30, 2019, were HK$1,864,000, an increase from HK$1,809,000 in the same period of 2018[54]. Taxation - The income tax credit for the three months ended September 30, 2019, was HK$529,000, compared to an expense of HK$700,000 in the same period of 2018[11]. - The deferred tax credit for the nine months ended September 30, 2019, was HK$1,588,000, compared to a deferred tax expense of HK$908,000 in the same period of 2018[63]. - The company did not make any provision for Hong Kong Profits Tax or PRC Enterprise Income Tax due to tax losses carried forward[63][64]. Equity and Shares - The company’s accumulated losses increased to HK$211,547,000 as of September 30, 2019, compared to HK$202,770,000 at the beginning of the year[15]. - The total equity attributable to owners of the Company as of September 30, 2019, was HK$239,569,000, a decrease from HK$248,383,000 at the beginning of the year[15]. - The company issued shares worth HK$32,337,000 during the period, contributing to changes in equity[15]. - The total number of ordinary shares in issue as of September 30, 2019, was 1,272,640,000, unchanged from the previous quarter[71][74]. - The total number of shares issued as of September 30, 2019, was 1,272,640,000[118]. - Mr. Chiu Ngai Hung holds a beneficial ownership of 687,177,955 shares, representing approximately 54.00% of the total shareholding[117]. Business Strategy and Outlook - The Group has adopted a more conservative sales strategy for the Mobile Gaming and Application Business to reduce investment costs amid fierce competition and regulatory challenges[95][96]. - The Money Lending Business has become a main source of income for the Group, achieving a revenue increase of approximately 62.9%[99]. - The company anticipates a continued downward trend in the lending market through the fourth quarter of 2019 due to market competition and the Sino-US trade war[101]. - The company expects Hong Kong's economy to slow down amid ongoing uncertainties, impacting business strategies and cost control measures[102]. - The company will remain cautious in resource allocation while seeking potential investment opportunities to create synergies with existing business segments[103]. Risk Management and Governance - The company has adopted a prudent credit policy to mitigate risks associated with impairment and bad debts in its personal loan portfolio[101]. - The management will continue to review and tighten credit policies to prevent potential losses from bad debts[105]. - The Audit Committee consists of three independent non-executive Directors: Mr. Leung Man Chun, Mr. Fok Kin Fung Eric, and Dr. Lee G. Lam[126]. - The Audit Committee is responsible for reviewing the financial reporting process, risk management, and internal control of the Group[126]. - The Company has not purchased, sold, or redeemed any of its listed securities during the Period[129]. - The Company has adopted a code of conduct regarding securities transactions by directors, with no reported non-compliance during the Period[128]. - The Board comprises two executive Directors, one non-executive Director, and three independent non-executive Directors as of the report date[130]. - The Company reviewed its accounting principles and practices, discussing internal controls and financial reporting matters with the Board[127]. - The Group is capable of conducting its business independently and at arm's length from the interests of the mentioned companies[123]. - No Directors have interests in any competing businesses as per the disclosures[124]. - The Company is listed on the GEM of the Stock Exchange[123]. - The report is dated November 8, 2019, indicating the financial performance for the third quarter of 2019[130].
悟喜生活(08148) - 2019 Q3 - 季度财报