Financial Performance - For the three months ended June 30, 2021, the company reported a loss of HKD 7,774,000 compared to a loss of HKD 5,220,000 for the same period in 2020, representing a 49% increase in losses year-over-year [6]. - Revenue for the same period was HKD 1,428,000, a decrease of 66% from HKD 4,262,000 in the prior year [7]. - Gross profit decreased to HKD 509,000, down 63% from HKD 1,387,000 in the previous year [7]. - The company's basic and diluted loss per share for the period was HKD (0.78), compared to HKD (0.52) in the same period last year [7]. - Total comprehensive loss for the period was HKD 8,123,000, compared to HKD 3,138,000 in the prior year, indicating a significant increase in overall losses [10]. - The company reported a pre-tax loss of approximately 7,774 thousand HKD for the three months ended June 30, 2021, compared to a loss of 5,220 thousand HKD in the same period of 2020 [38]. - The group recorded a net loss attributable to the owners of the company of approximately HKD 7.8 million, compared to HKD 5.2 million in 2020, primarily due to a decrease in revenue and gross profit from reduced UnionPay transaction volumes [66]. Revenue and Expenses - Merchant acquiring transaction fee income was 1,171 thousand HKD, down 66.1% from 3,469 thousand HKD in the previous year [28]. - Employee costs increased to 3,701 thousand HKD, up 32.4% from 2,800 thousand HKD in the previous year [31]. - The company incurred administrative expenses of HKD 4,824,000, which is a 26% decrease from HKD 3,830,000 in the previous year [7]. - General administrative expenses increased by approximately 26.0% to about HKD 4.8 million, compared to HKD 3.8 million in 2020 [62]. - Sales and distribution costs were approximately HKD 2.3 million, a decrease of about 11.8% from HKD 2.6 million in 2020 [63]. - The cost of services provided totaled approximately HKD 0.9 million, a reduction of about 68.0% compared to HKD 2.9 million in 2020 [59]. Strategic Focus and Future Outlook - The company aims to expand its market presence in Southeast Asia, leveraging its existing operations and partnerships [22]. - The financial report indicates a focus on cost management strategies to mitigate losses in the upcoming quarters [22]. - The company has not provided specific guidance for future performance but emphasizes the importance of strategic investments in technology and market expansion [22]. - The company is actively exploring new business opportunities related to payments to support growth amid uncertainties from the COVID-19 pandemic and the US-China trade war [56]. - The company has completed the placement of convertible bonds to raise funds for investment opportunities in the Asia-Pacific region [56]. Governance and Compliance - The company has adopted the corporate governance code as a benchmark since its listing on GEM on October 16, 2018, and has complied with all applicable code provisions up to the report date [84]. - The audit committee, consisting of three independent non-executive directors, has reviewed the first quarter financial statements and confirmed compliance with applicable accounting standards [91]. - The compliance advisor, appointed to provide guidance on legal compliance and GEM listing rules, has no interests related to the company that need to be disclosed [89]. Shareholder Information - Major shareholders include Mei Ya and China Payment, each holding approximately 32.50% of the issued shares, while Straum Investments Limited holds approximately 13.80% [78]. - The group currently has no predetermined dividend payout ratio, and any future dividend declarations will depend on various factors including operational performance and financial condition [68]. - The board does not recommend the payment of dividends for the reporting period, consistent with 2020 [70]. Risk Management - As of June 30, 2021, the group had no significant contingent liabilities [74]. - The group has maintained a prudent treasury policy and a robust liquidity position throughout the reporting period [71]. - As of June 30, 2021, the group had outstanding foreign exchange forward contracts amounting to USD 0.1 million (approximately HKD 0.8 million) to hedge against foreign exchange risks [72]. - The company continues to monitor the impact of the COVID-19 pandemic on its financial condition and operational performance [56].
东方支付集团控股(08613) - 2022 Q1 - 季度财报