Financial Performance - The company reported revenue of HKD 72,239,000 for the three months ended March 31, 2020, a significant increase from HKD 1,318,000 in the same period of 2019, representing a growth of approximately 5,373%[8] - The cost of sales and services for the same period was HKD 72,174,000, leading to a gross profit of HKD 65,000, compared to a gross profit of HKD 268,000 in 2019[8] - The company incurred a loss before tax of HKD 18,076,000 for the reporting period, compared to a loss of HKD 5,033,000 in the previous year, indicating a deterioration in performance[8] - The total comprehensive loss for the period was HKD 24,614,000, compared to HKD 4,970,000 in the same period of 2019, reflecting a significant increase in losses[11] - Basic and diluted loss per share for the period was HKD 0.56, compared to HKD 0.16 in the previous year, indicating a worsening of per-share performance[11] - The group incurred a loss of approximately HKD 17,800,000, an increase of 256% compared to a loss of HKD 5,000,000 in the same period last year[40] Revenue Sources - The revenue breakdown showed that big data center services contributed HKD 71,976,000, while mobile game agency services and lottery product distribution services contributed HKD 233,000 and HKD 30,000, respectively[16] - The total revenue for the group during the reporting period was approximately HKD 72,200,000, a significant increase of HKD 70,900,000 compared to HKD 1,300,000 for the same period last year[35] - Revenue from the big data center services was approximately HKD 72,000,000, representing a substantial increase of HKD 70,900,000 from HKD 1,100,000 in the same period last year[35] - The online gaming business generated revenue of HKD 200,000, which remained roughly the same as the previous year[31] - The lottery business recorded revenue of approximately HKD 30,000 during the reporting period[37] Operational Developments - The group is currently constructing its third data center, expected to be completed by the end of May 2020, with an operational scale 2.5 to 3 times larger than the second data center[27] - The group has developed integrated management software for the data center, enhancing operational efficiency and real-time monitoring capabilities[30] - The group has suspended the sale of lottery terminals and components due to a downturn in demand in the mainland Chinese market[32] - The company plans to continue expanding its big data center services, with a third center under construction expected to attract more customers and generate significant revenue[45] Employee and Operating Costs - Employee costs increased by HKD 3,400,000 due to the expansion of big data center services, with the workforce growing from 34 to 103 employees[40] - Operating expenses, including consulting and rental costs, rose by HKD 3,900,000 primarily due to the expansion of big data center services[40] Tax and Accounting - The deferred tax credit recognized during the period was HKD 288,000, with no tax provision made for Hong Kong profits tax due to lack of taxable profits[18] - The company has not applied any new accounting standards that have been issued but are not yet effective, indicating stability in accounting policies[14] Share Options and Holdings - The total number of shares outstanding for 500.com as of March 31, 2020, was 44,024,595 shares[57] - Zhang Jing holds 49,200 American Depositary Shares (ADS) options, representing approximately 0.11% of the total shares[57] - Huang Lilan holds 15,500 ADS options, representing approximately 0.04% of the total shares[57] - Yuan Qiang holds 26,667 ADS options, representing approximately 0.06% of the total shares[57] - The exercise price for the majority of the options granted to directors is $10.00, with various exercise periods[59][61] - The company has granted a total of 6,000,000 options to various directors under the 2012 Stock Option Plan[65] - The company has a total of 62,000,000 options granted to certain directors, with an exercise price of $0.20[65] - The company has reported no other significant shareholdings or interests from directors or key executives as of March 31, 2020[61] - The company is committed to maintaining transparency regarding share options and holdings as per regulatory requirements[61] - The total number of shares issued by the company as of March 31, 2020, is 3,158,599,836 shares[75] - 500.com Limited holds 1,278,714,329 shares, representing approximately 40.48% of the company's total issued shares[75] - The company granted 5,000,000 share options during the reporting period, with a total of 72,300,000 options outstanding as of March 31, 2020[68] - The exercise price for the options granted on January 5, 2018, is HKD 0.20, with an exercise period until January 4, 2028[69] Governance and Compliance - The company has established an audit committee to review and supervise the financial reporting process and risk management[78] - No directors or major shareholders have interests that compete with the company's business during the reporting period[76] - The financial data in the first quarter report has not been audited by the company's auditors but has been reviewed by the audit committee[78] - The company appointed Zhang Jing as a director on January 2, 2020, and Pan Zhengming resigned on the same date[69] - The company aims to ensure that consultants receive share options similar to those provided to employees for their services[70] Dividends - The company did not recommend the payment of an interim dividend for the reporting period[20] - The company does not recommend the payment of an interim dividend for the reporting period[46] Other Financial Activities - The company issued a loan of HKD 30,000,000 with a term of 24 months and an interest rate of 10% post-reporting period[44] - No revenue was generated from the lending business during the reporting period[38] - The group recognized an increase of HKD 1,200,000 in amortization of intangible assets due to acquisitions[40] - The company experienced a foreign exchange loss increase of HKD 1,000,000 during the reporting period[40]
加幂科技(08198) - 2020 Q1 - 季度财报