Financial Performance - The company reported a loss of HKD 6,440,000 for the three months ended December 31, 2020, compared to a loss of HKD 698,000 for the same period in 2019, representing an increase in loss of approximately 820%[5] - For the nine months ended December 31, 2020, the total loss was HKD 17,901,000, compared to a loss of HKD 627,000 in the same period of 2019, indicating a significant increase in loss of approximately 2,754%[5] - Revenue for the nine months ended December 31, 2020, was HKD 10,435,000, a decrease of 84.7% compared to HKD 67,931,000 for the same period in 2019[6] - Gross profit for the nine months ended December 31, 2020, was HKD 3,723,000, down from HKD 21,163,000 in the same period of 2019, reflecting a decline of approximately 82.4%[6] - The total comprehensive loss for the nine months ended December 31, 2020, was HKD 14,850,000, compared to a gain of HKD 846,000 in the same period of 2019, indicating a significant shift in performance[8] - Basic and diluted loss per share for the nine months ended December 31, 2020, was HKD 1.79, compared to HKD 0.06 for the same period in 2019[6] - The group reported a net loss attributable to owners of approximately HKD 17.9 million, compared to a net loss of HKD 0.6 million in 2019[92] Revenue and Income Sources - Merchant acquiring transaction fee income for the three months ended December 31, 2020, was HKD 2,273,000, down 88.6% from HKD 19,903,000 in the same period of 2019[55] - The group’s total revenue from merchant acquiring business was approximately HKD 10.4 million, a decrease of about 84.7% compared to HKD 67.9 million in 2019[84] - Merchant acquiring transaction fee income was approximately HKD 8.4 million, down about 83.8% from HKD 51.8 million in 2019[84] - The group recognized other income of HKD 1,220,000 for the nine months ended December 31, 2020, compared to HKD 229,000 for the same period in 2019, showing a substantial increase[56] - The group’s foreign exchange income for the nine months ended December 31, 2020, was HKD 1,977,000, down 86.5% from HKD 14,641,000 in the same period of 2019[55] - The group’s market promotion and distribution service income for the nine months ended December 31, 2020, was HKD 25,000, a decrease of 98.3% from HKD 1,460,000 in the same period of 2019[55] Costs and Expenses - The company experienced a decrease in service costs, with costs for the nine months ended December 31, 2020, at HKD 6,712,000, down from HKD 46,768,000 in 2019, a reduction of approximately 85.6%[6] - The group incurred employee costs of HKD 8,623,000 for the nine months ended December 31, 2020, which is an increase of 17.6% from HKD 7,335,000 in the same period of 2019[58] - General administrative expenses were approximately HKD 12.3 million, a decrease of about 7.4% from HKD 13.3 million in 2019[88] - Financing costs increased to approximately HKD 1.8 million from HKD 0.5 million in 2019, primarily due to interest expenses from convertible bonds issued in June 2020[91] Financing and Investments - The company issued convertible bonds totaling HKD 11,850,000 with a coupon rate of 7% on June 26, 2020, which can be converted into a maximum of 79,000,000 shares at an initial conversion price of HKD 0.15 per share[68] - The company has acknowledged the potential risks associated with investments in GEM-listed companies, emphasizing the need for careful consideration by investors[2] - The group is actively exploring investment opportunities in online and offline payment-related businesses in the Asia-Pacific region[81] Corporate Governance and Compliance - The company has adopted the corporate governance code and has complied with all provisions since December 1, 2020[110] - The audit committee, consisting of three independent non-executive directors, reviewed the third-quarter financial statements and confirmed compliance with applicable accounting standards[119] - The company has established a compliance advisory role to ensure adherence to applicable laws and GEM listing rules[115] - The company has confirmed that all directors complied with the trading code throughout the reporting period[114] Market and Strategic Developments - The company is investing $1 billion in R&D for new technologies aimed at enhancing user experience and product efficiency[121] - Market expansion efforts have led to a 30% increase in market share in the Asia-Pacific region[121] - The company completed a strategic acquisition of a tech startup for $500 million to bolster its software capabilities[121] - A new marketing strategy was implemented, resulting in a 25% increase in customer engagement metrics[121] - The company plans to enter two new international markets by the end of Q4 2020, aiming for a 10% revenue contribution from these markets in 2021[121] Shareholder Information - Major shareholder Meiya holds 325,000,000 shares, representing 32.50% of the issued shares[104] - China Payment Holdings also holds 325,000,000 shares, equivalent to 32.50% of the issued shares[104] - Straum Investments Limited and Mr. Yu Zhenhui each hold 146,500,000 shares, accounting for 14.65% of the issued shares[104] Taxation - The group did not incur any income tax expenses for the nine months ended December 31, 2020, as entities established in the Cayman Islands and British Virgin Islands are exempt from income tax[60] - The company did not make any tax provisions for Hong Kong profits tax due to the offset of prior year tax losses[61] - The company’s Thai operations did not incur corporate income tax due to tax losses, while operations in Cambodia have not commenced, thus no tax provisions were made[61] - The company’s foreign investors in Thailand are subject to a withholding tax of 10% on dividends, unchanged from the previous year[61] Other Information - The company did not recommend any dividend payment for the nine months ended December 31, 2020, consistent with the previous year[65] - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[109] - No stock options have been granted since the adoption of the stock option plan, and there were no outstanding stock options as of December 31, 2020[117] - The company has not engaged in any arrangements that would allow directors or senior executives to hold any interests in the company's shares during the reporting period[104]
东方支付集团控股(08613) - 2021 Q3 - 季度财报