Financial Performance - For the three months ended September 30, 2022, the group reported revenue of HKD 8,820,000, a decrease of 21.9% compared to HKD 11,298,000 for the same period in 2021[8]. - For the nine months ended September 30, 2022, total revenue was HKD 27,193,000, down 13.3% from HKD 31,368,000 in the previous year[8]. - The group recorded a net loss attributable to owners of the company of HKD 320,000 for the three months ended September 30, 2022, compared to a profit of HKD 236,000 in the same period of 2021[8]. - The total comprehensive loss for the three months ended September 30, 2022, was HKD 2,417,000, compared to a comprehensive income of HKD 349,000 for the same period in 2021[8]. - The basic loss per share for the three months ended September 30, 2022, was HKD (0.03), compared to earnings of HKD 0.02 per share in the same period of 2021[8]. - For the nine months ended September 30, 2022, the group recorded revenue of approximately HKD 27.2 million, a decrease of about 13.3% compared to approximately HKD 31.4 million for the same period in 2021[102]. - The profit attributable to the company's owners for the nine months ended September 30, 2022, was approximately HKD 0.9 million, an increase of about 150.5% from approximately HKD 0.4 million for the same period in 2021[102]. - The group recorded a total comprehensive loss attributable to the company's owners of approximately HKD 2.1 million for the nine months ended September 30, 2022, compared to a total comprehensive income of approximately HKD 0.8 million for the same period in 2021[102]. Revenue Breakdown - Front-end trading solution service revenue for the three months ended September 30, 2022, was HKD 4,568,000, down 6% from HKD 4,865,000 in the same period of 2021[77]. - Back-end settlement solution service revenue increased to HKD 2,684,000 for the three months ended September 30, 2022, compared to HKD 2,601,000 in the same period of 2021, reflecting a growth of 3%[77]. - The revenue from installation and customization services significantly decreased to HKD 251,000 for the three months ended September 30, 2022, from HKD 2,088,000 in the same period of 2021, representing a decline of 88%[77]. - Management cloud service revenue for the nine months ended September 30, 2022, was HKD 2,388,000, slightly down from HKD 2,412,000 in the same period of 2021[80]. - Revenue from installation and customization services decreased significantly by approximately 64.9%, from about HKD 4.2 million to approximately HKD 1.5 million for the nine months ended September 30, 2022[105]. - Revenue from backend settlement services increased by approximately 2.2%, from about HKD 7.7 million to approximately HKD 7.8 million for the nine months ended September 30, 2022[105]. Operating Expenses - The group experienced a significant increase in operating expenses, totaling HKD 5,978,000 for the three months ended September 30, 2022, compared to HKD 3,221,000 in the same period of 2021[8]. - Total operating expenses for the nine months ended September 30, 2022, amounted to HKD 5,377,000, a decrease of 44% compared to HKD 9,552,000 for the same period in 2021[83]. - Employee costs decreased by approximately HKD 1.4 million, from HKD 18.6 million for the nine months ended September 30, 2021, to the current period[110]. - Other operating expenses decreased by approximately 43.7%, from HKD 9.6 million to approximately HKD 5.4 million, primarily due to a reduction in rent and rates of approximately HKD 1.0 million[112]. - Depreciation expenses increased by approximately HKD 0.4 million, representing a 30.0% increase compared to approximately HKD 1.4 million for the same period in 2021[111]. Strategic Plans - The group plans to focus on market expansion and new product development to enhance future performance[8]. - The company is exploring potential mergers and acquisitions to strengthen its market position[8]. - The group plans to focus on expanding its wealth management solutions customer base and improving user trading applications[103]. - The group aims to expand its managed cloud services to local brokerage clients as part of its long-term strategy[103]. - The company plans to establish an R&D center in China, with an investment of approximately HKD 10.7 million[125]. Market Conditions and Risks - The management remains cautious about market volatility and is committed to improving operational efficiency[8]. - The group anticipates continued challenges from the COVID-19 pandemic and geopolitical tensions affecting market volatility[103]. - The group will maintain a prudent approach to cost control and risk management in response to external environmental changes[103]. Corporate Governance - The company has adopted and complied with the corporate governance code as per GEM Listing Rules Appendix 15 for the nine months ended September 30, 2022[144]. - All directors confirmed compliance with the trading standards set forth in GEM Listing Rules from January 1, 2022, to September 30, 2022, with no reported violations[145]. - The audit committee, consisting of independent non-executive directors, reviewed the unaudited financial performance for the nine months ended September 30, 2022, ensuring adherence to applicable accounting standards and GEM Listing Rules[149]. Shareholder Information - As of September 30, 2022, Quantsmile (BVI) Limited holds 411,902,870 shares, representing approximately 33.49% of the issued shares[133]. - As of September 30, 2022, 如鷹企業顧問有限公司 holds 664,296,910 shares, representing approximately 54.01% of the issued shares[133]. - Financial Data Technologies Limited holds 130,000,000 shares, representing approximately 10.57% of the issued shares as of September 30, 2022[133]. - The trustee, 交通銀行信託有限公司, holds 101,500,000 shares, representing approximately 8.25% of the issued shares as of September 30, 2022[133]. - The company has not granted any stock options under the stock option plan as of September 30, 2022[138]. - The stock reward plan has granted a total of 9,280,000 reward shares to 45 selected individuals, with 4,640,000 shares vesting on December 31, 2022[141]. - The stock reward plan trustee did not purchase any shares on the stock exchange as of September 30, 2022[141]. - The company has a stock reward plan effective for 10 years from the adoption date, which is January 22, 2019[140]. - No directors or major shareholders have interests in any competing businesses as of September 30, 2022[142]. - The company has no other entities or individuals with interests in its shares that require disclosure under the Securities and Futures Ordinance as of September 30, 2022[137]. Dividend Information - The group did not recommend the payment of dividends for the nine months ended September 30, 2022, compared to zero HKD for the same period in 2021[98]. - The board did not recommend any dividend payment for the nine months ended September 30, 2022, consistent with the previous year[116].
电子交易集团(08036) - 2022 Q3 - 季度财报