Financial Performance - For the three months ended December 31, 2020, the company's revenue was HKD 10,311,000, a decrease of 4.65% compared to HKD 10,815,000 for the same period in 2019[6]. - For the nine months ended December 31, 2020, the company's revenue was HKD 30,724,000, down 3.63% from HKD 31,883,000 in the previous year[6]. - The net profit attributable to the company's owners for the three months ended December 31, 2020, was HKD 2,525,000, compared to HKD 914,000 for the same period in 2019, representing a significant increase of 176.5%[6]. - The net profit attributable to the company's owners for the nine months ended December 31, 2020, was HKD 8,622,000, an increase of 244.5% from HKD 2,504,000 in the previous year[6]. - The company's basic and diluted earnings per share for the three months ended December 31, 2020, were HKD 0.63, compared to HKD 0.23 for the same period in 2019[6]. - The total comprehensive income for the nine months ended December 31, 2020, was HKD 8,622,000, reflecting strong performance in the current fiscal year[7]. - The company reported a fair value gain on financial assets of HKD 494,000 for the nine months ended December 31, 2020, compared to no gain in the previous year[6]. - For the nine months ended December 31, 2020, total revenue was HKD 30,724,000, a decrease of 3.6% compared to HKD 31,883,000 for the same period in 2019[13]. - The company reported a profit attributable to owners of HKD 8,622,000 for the nine months ended December 31, 2020, compared to HKD 2,504,000 for the same period in 2019, representing a significant increase of 244.5%[20]. - Basic earnings per share for the nine months ended December 31, 2020, was HKD 2.16, compared to HKD 0.64 for the same period in 2019, reflecting a growth of 237.5%[20]. - The profit before tax was approximately HKD 10.8 million, a significant increase from approximately HKD 5.2 million for the same period in 2019, representing an increase of about 107.7%[42]. - The profit attributable to the owners of the company for the nine months ended December 31, 2020, was approximately HKD 8.6 million, an increase of about 244% from approximately HKD 2.5 million for the same period in 2019[44]. Expenses and Costs - Employee benefit expenses for the three months ended December 31, 2020, were HKD 4,327,000, down 17.1% from HKD 5,223,000 in the same period of 2019[6]. - The company incurred listing expenses of HKD 4,528,000 in the previous year, which impacted the financial results[6]. - The estimated tax expense for the nine months ended December 31, 2020, was HKD 2,177,000, a decrease of 18.1% from HKD 2,659,000 in the same period of 2019[18]. - Interest income from fixed deposits for the nine months ended December 31, 2020, was HKD 223,000, down 8.2% from HKD 243,000 in the same period of 2019[16]. - Employee benefits expenses decreased by about 3% to approximately HKD 10.7 million, primarily due to a reduction in performance bonuses and severance payments[35]. - Other expenses decreased by approximately 31% to about HKD 2.7 million, primarily due to a reduction in legal and professional fees[40]. - Financing costs decreased from approximately HKD 167,000 to about HKD 136,000, mainly due to a reduction in floating interest rates[41]. Government Support and Subsidies - The company received government subsidies totaling approximately HKD 1,619,000 for the nine months ended December 31, 2020, under the Employment Support Scheme[17]. - The company has committed to not reducing staff during the subsidy period as a condition for receiving the Employment Support Scheme subsidy[17]. Strategic Plans and Developments - The company aims to continue developing financial trading solutions and resource allocation software, focusing on market expansion and technological advancements[8]. - The company plans to allocate resources to enhance and upgrade existing financial trading solutions and explore the development of new information technology solutions[27]. - The company has submitted a proposal for the development of non-financial IT solutions and won the project in May 2020, with expectations to launch part of the solutions by April 2021[28]. - The company aims to diversify its revenue sources to mitigate risks associated with its reliance on financial trading solutions[28]. - The board believes that the significant impact of the COVID-19 pandemic on the global economy and financial markets may continue to adversely affect the company's financial performance in the next fiscal year[28]. Share Capital and Options - The company has a total issued share capital of 10 billion shares with a par value of HKD 0.01 per share as of December 31, 2020[23]. - The company granted a total of 38,000,000 share options under its share option scheme, with 5,600,000 options granted to related parties[50]. - The share options granted in 2020 are divided into two tranches, each representing 50% of the total options, with the first tranche vesting on November 3, 2021[50]. - The total number of stock options granted in 2020 was 1,600,000, increasing the total unexercised stock options to 34,000,000[51]. - As of December 31, 2020, the company had 16,200,000 stock options available for exercise, compared to zero in 2019[52]. - The exercise price for the 2020 stock options was HKD 0.095, while the 2019 options had an exercise price of HKD 0.178[51]. - The fair value per share at the grant date for the 2020 stock options was HKD 0.046 for the first batch and HKD 0.047 for the second batch[51]. - The company recognized share-based payment expenses of approximately HKD 972,000 for the nine months ended December 31, 2020, compared to HKD 622,000 in 2019[51]. Corporate Governance - The company is committed to high standards of corporate governance, which it believes is essential for protecting shareholder interests and enhancing corporate value[48]. - The audit committee, established on March 29, 2019, consists of three independent non-executive directors[65]. - The company has adopted a written terms of reference for the audit committee in accordance with GEM Listing Rules[65]. - The company has adopted a strict code of conduct for securities trading in compliance with GEM listing rules[59]. - The compliance advisor, Dongxing Securities (Hong Kong) Limited, has no interests in the company's equity as of the report date[64]. - The company has not granted any rights to directors or senior executives to acquire shares or debt securities as of December 31, 2020[62]. - No other directors or senior management held any disclosable interests in the company's shares as of December 31, 2020[55]. - The company does not have any knowledge of any directors violating the securities trading code as of December 31, 2020[60]. Shareholder Information - Major shareholders include Essential Strategy with 210,000,000 shares (52.5%) and Expert Wisdom with 90,000,000 shares (22.5%) as of December 31, 2020[58]. - The company’s directors and senior management held significant interests, with the chairman owning 52.5% through a controlled corporation[54]. - Mr. Wei holds 210,000,000 shares through his wholly-owned company Essential Strategy[60]. - Mr. Zhong holds 90,000,000 shares through his wholly-owned company Expert Wisdom[60]. - There are no interests held by directors or controlling shareholders in any business that directly or indirectly competes with the group as of December 31, 2020[63].
连成科技集团(08635) - 2021 Q3 - 季度财报