Financial Performance - For the three months ended March 31, 2022, the company reported total revenue of HKD 9,042,000, a decrease of 15.4% compared to HKD 10,682,000 for the same period in 2021[12]. - The company incurred an operating loss of HKD 266,000, compared to an operating profit of HKD 905,000 in the previous year, indicating a significant decline in operational performance[12]. - The net loss attributable to owners of the company for the period was HKD 300,000, contrasting with a profit of HKD 869,000 in the same quarter of 2021[12]. - The basic loss per share for the period was HKD (0.03), compared to earnings per share of HKD 0.08 in the prior year[12]. - Total comprehensive loss attributable to owners of the company was HKD 165,000, compared to total comprehensive income of HKD 860,000 in the previous year[12]. - The company reported other comprehensive income of HKD 135,000 for the period, compared to a loss of HKD 9,000 in the same quarter of 2021[12]. - The group reported a loss attributable to owners of the company of HKD (300) thousand for the three months ended March 31, 2022, compared to a profit of HKD 869 thousand in the same period last year[86]. - The group recorded a revenue of approximately HKD 9.0 million for the three months ended March 31, 2022, a decrease of about 15.9% compared to approximately HKD 10.7 million for the same period in 2021[90]. Revenue Breakdown - Revenue for the three months ended March 31, 2022, was HKD 9,042 thousand, a decrease of 15.4% compared to HKD 10,682 thousand for the same period in 2021[68]. - Front office trading solutions revenue was HKD 4,745 thousand, down 6.8% from HKD 5,092 thousand in the previous year[68]. - Back office settlement solutions revenue increased to HKD 2,552 thousand, up 3.0% from HKD 2,477 thousand year-on-year[68]. - Revenue from front office trading solutions decreased by approximately 6.8% to about HKD 4.7 million for the three months ended March 31, 2022, down from approximately HKD 5.1 million for the same period in 2021[93]. - Revenue from installation and customization services plummeted by approximately 67.5% to about HKD 0.5 million for the three months ended March 31, 2022, down from approximately HKD 1.5 million for the same period in 2021[93]. - The geographical revenue breakdown shows HKD 8,788 thousand from Hong Kong and HKD 254 thousand from Macau for the current period[76]. Cost and Expenses - The company’s financing costs for the period were HKD 33,000, a slight increase from HKD 2,000 in the same period last year[12]. - Employee costs for the three months ended March 31, 2022, were approximately HKD 5.7 million, a decrease of about 6.5% from approximately HKD 6.0 million for the same period in 2021[98]. - Other operating expenses decreased by approximately 26.6% to about HKD 2.3 million for the three months ended March 31, 2022, down from approximately HKD 3.2 million for the same period in 2021[100]. - The group’s tax expense for the three months ended March 31, 2022, was approximately HKD 1,000, a decrease of about 97.1% from approximately HKD 34,000 for the same period in 2021[102]. - Other income, including bank interest and government grants, totaled HKD 13 thousand, down from HKD 43 thousand in the previous year[73]. - Other income decreased from HKD 43,000 for the three months ended March 31, 2021, to approximately HKD 13,000 for the same period in 2022, primarily due to a reduction in government grants[97]. Strategic Focus - The company is focused on enhancing its operational strategies to improve financial performance in the upcoming quarters[12]. - The financial results reflect the challenges faced in the current market environment, prompting a reassessment of growth strategies[12]. - The company continues to explore opportunities for market expansion and potential new product developments[12]. - The group plans to focus on expanding its wealth management solutions and enhancing user trading applications to improve competitiveness in the fintech market[91]. - The company aims to continue executing its business strategies while maintaining a prudent approach to cost control and risk management in response to external market conditions[91]. Shareholder Information - The total number of shares held by directors and key executives as of March 31, 2022, includes 2,291,420 shares and 10,810,010 shares, representing approximately 0.19% and 0.9% of the issued shares, respectively[116]. - Quantsmile (BVI) Limited holds 33.49% of the company's shares, totaling 411,902,870 shares[123]. - 如鷹企業顧問有限公司 owns 54.01% of the company with 664,296,910 shares[123]. - Financial Data Technologies Limited and Mr. 聶凡淇 each hold 10.57% of the company's shares, amounting to 130,000,000 shares[123]. - 交通銀行信託有限公司 acts as a trustee holding 8.25% of the shares, which is 101,500,000 shares[123]. Corporate Governance - The company has established an audit committee to oversee financial reporting and internal controls[131]. - The compliance advisor has been appointed to ensure adherence to applicable laws and GEM listing rules[130]. - The major shareholders have entered into a non-competition agreement as of January 22, 2019[128]. - The company is registered in the Cayman Islands and was listed on the GEM on February 19, 2019[135]. Other Information - No dividends were recommended for the three months ended March 31, 2022, consistent with the previous year[85]. - The group has not identified any individual customer contributing more than 10% of total revenue during the period[77]. - The group is currently assessing the potential impact of new and revised Hong Kong Financial Reporting Standards that will come into effect in the future[66]. - The company has not purchased, sold, or redeemed any of its listed securities during the three months ending March 31, 2022[132]. - No significant events occurred after March 31, 2022, up to the report date[133]. - The company has reallocated the net proceeds from its fundraising to more effectively deploy financial resources, with specific amounts detailed for various initiatives[108]. - The company invested HKD 10.70 million in establishing a research and development center in China, with prior investments of HKD 9.45 million[114]. - The company allocated HKD 0.38 million for marketing expenses related to industry seminars and advertising by the end of December 2022[114]. - The company reported a human resource investment of HKD 1.28 million for network support engineers, with a previous investment of HKD 0.56 million[114]. - The company has incurred costs of HKD 0.27 million for various expenses by the end of December 2022[112]. - The company plans to expand its wealth management solutions business, with a total investment of HKD 2.60 million in 2022[108]. - The stock reward plan has resulted in the trustee holding 101,500,000 shares, with 9,280,000 shares granted to selected participants on January 20, 2022[121]. - The company has not granted any stock options under its stock option plan as of March 31, 2022[119].
电子交易集团(08036) - 2022 Q1 - 季度财报