Financial Performance - Revenue for the three months ended December 31, 2021, was HK$8,513,000, a decrease of 15.7% compared to HK$10,102,000 for the same period in 2020[7]. - Gross profit for the three months ended December 31, 2021, was HK$1,016,000, compared to HK$904,000 in the same period of 2020, reflecting an increase of 12.4%[7]. - The loss for the period attributable to owners of the Company was HK$5,234,000, compared to a loss of HK$5,342,000 in the same period of 2020, indicating a slight improvement[9]. - Total comprehensive expense for the three months ended December 31, 2021, was HK$5,903,000, compared to an expense of HK$4,509,000 in the same period of 2020[9]. - For the nine months ended December 31, 2021, total revenue was HK$28,799,000, a decrease of 1.4% from HK$29,197,000 in the same period of 2020[7]. - The loss for the nine months attributable to owners of the Company was HK$15,769,000, compared to a profit of HK$20,230,000 in the same period of 2020[9]. - Basic loss per share for the three months ended December 31, 2021, was HK$0.39, unchanged from the same period in 2020[9]. - The Company reported other income of HK$158,000 for the three months ended December 31, 2021, compared to HK$804,000 in the same period of 2020[7]. - The administrative expenses for the three months ended December 31, 2021, were HK$6,850,000, a decrease from HK$7,604,000 in the same period of 2020[7]. - Revenue for the nine months ended December 31, 2021, was HK$28,799,000, a decrease of 5.7% compared to HK$30,525,000 for the same period in 2020[34]. - Total comprehensive income for the nine months ended December 31, 2021, was a loss of HK$15,187,000 compared to a loss of HK$2,853,000 for the same period in 2020[34]. - The accumulated losses as of December 31, 2021, were HK$217,286,000, an increase from HK$197,990,000 as of December 31, 2020[34]. - Loss before income tax for the Reporting Period was approximately HK$18,330,000, compared to a profit before income tax of approximately HK$18,447,000 for the corresponding period[80]. - Investment income for the three months ended December 31, 2021 was HK$147,000, while for the nine months it was HK$618,000[39]. - Government grants recognized as other income for the nine months ended December 31, 2021 amounted to HK$724,000, down from HK$1,315,000 in the corresponding period[39]. - The Board does not recommend the payment of any dividend for the nine months ended December 31, 2021, same as the corresponding period[58]. Business Developments - The company recognized a total transaction with owners of HK$1,366,000 from the disposal of subsidiaries during the reporting period[34]. - The company has not applied any new and revised standards that have been issued but are not yet effective, currently assessing their potential impact[29]. - The unaudited condensed consolidated financial statements have been reviewed by the audit committee of the company[29]. - On 18 June 2021, the Company’s subsidiary acquired 70% of Zhongzhisuxun Technology Development for RMB7,000[67]. - Non-controlling interests in Zhongzhisuxun Technology Development recognized at the acquisition date amounted to approximately HK$216,000[71]. - The Group incurred no provision for Hong Kong profits tax and PRC enterprise income tax for the three and nine months ended 31 December 2021 due to tax losses[46]. - The company has deregistered Beijing YBDS as it was no longer needed after acquiring China Mobile Payment Technology Group Company Limited[137]. Market Trends and Opportunities - China's electronic signature market grew by 41.2% to RMB 15.28 billion in 2021 from RMB 10.82 billion in 2020, with projections to reach RMB 40.42 billion by 2024[86]. - The value of payments processed by non-bank payment institutions in China increased by 14.88% year on year to RMB 90.71 trillion, while the number of such payments grew by 14.37% year on year to about 268.19 billion[86]. - The Group aims to enhance its digital solutions for cyber security and artificial intelligence services to capitalize on China's booming digital economy[90]. - The company is actively pursuing opportunities in China's digital economy to enhance long-term business development[128]. - The company is focused on leveraging opportunities arising from the transformation of industries in China[134]. Strategic Initiatives - CITIC Cyber Security signed contracts for AI-based recognition and facial recognition systems for a metro company's automated fare collection system[90]. - CITIC Cyber Security completed the acquisition of Zhongzhisuxun Technology Development, enhancing its capabilities in digital culture and information security software[97]. - The joint venture with major telecommunications carriers aims to provide digital solutions for cyber security to financial institutions and government departments[101]. - The Group is focusing on diversifying its business into digital solutions for cyber security and facilitating companies' digital transformation[90]. - CITIC Cyber Security established a joint venture with three major Chinese telecom operators to provide digital solutions in cybersecurity, leveraging their service capabilities and customer base[104]. - The company applied its proprietary product, eCitizen, for electronic identity authentication in several banks' financial services and electronic signatures, enhancing personal data protection in online transactions[105]. - During the reporting period, CITIC Cyber Security conducted information verification for a securities brokerage and a certificate authority, utilizing APIs and terminals[106]. - The total number of tenants in CITIC Cyber Security's co-working spaces in Shenzhen reached 37, primarily consisting of fintech startups[109]. - The company is diversifying into internet electronic identity authentication, electronic signature, and AI services to broaden income streams amid a challenging business environment[128]. - CITIC Cyber Security signed contracts to develop a unified digital authentication system and maintain intelligent bookcases for clients in the transportation and property sectors[127][129]. - CITIC Cyber Security's initiatives aim to provide more convenient and secure login and transaction authorization services in various sectors, including transportation and banking[104]. - The company signed a framework agreement to provide training and consultancy on robotic process automation (RPA) for a leading telecommunications company, enabling AI-based customer services without human intervention[134]. - The company formed a digital technology joint venture to provide cybersecurity solutions to financial institutions, government departments, and enterprises, and acquired a 70% equity stake in a software developer for digital transformation[134]. Shareholder Information - The company raised approximately HK$100 million through a subscription by issuing 450,000,000 ordinary shares at a price of HK$0.225 per share, resulting in Happy On Holdings Limited holding approximately 72.83% of the total issued share capital[137]. - Approximately HK$19.785 million of the raised funds were applied to pay outstanding registered capital for Guangzhou YBDS, while HK$45.5 million was redirected for new potential projects and general working capital[137]. - As of December 31, 2021, Mr. Ho Yeung held 18,083,500 ordinary shares, representing approximately 1.333% of the total issued ordinary shares of the company[140]. - The total number of ordinary shares issued by the company as of December 31, 2021, is 1,356,250,000[152]. - No share options were granted under the share option scheme since its adoption, and no options were outstanding, lapsed, cancelled, or exercised during the nine months ended December 31, 2021[158]. - The share option scheme was adopted on August 1, 2011, and was valid for 10 years, expiring on July 31, 2021[158]. - During the reporting period, neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities[158]. - As of the report date, none of the directors or substantial shareholders had any interest in a competing business or any conflicts of interest with the group[166]. - The Audit Committee, established in May 2000, is responsible for reviewing the group's audit findings and compliance with GEM Listing Rules[166]. - All directors complied with the required standard of dealings and the code of conduct regarding securities transactions throughout the reporting period[165]. - The company has not granted any rights to acquire shares or debentures to any director or their family members during the reporting period[156]. - There were no other persons with interests or short positions in the shares or underlying shares of the company recorded in the required register[153].
量子思维(08050) - 2022 Q3 - 季度财报