新利软件(08076) - 2022 Q3 - 季度财报

Financial Performance Consolidated Statement of Profit or Loss and Other Comprehensive Income For the nine months ended September 30, 2022, the Group recorded a net loss of RMB 35.263 million, a 68.6% increase from the prior year, with sales revenue decreasing 20.1% to RMB 38.626 million primarily due to reduced technical support service income, and gross loss expanding to RMB 19.474 million Consolidated Statement of Profit or Loss Summary (As of September 30) | Indicator | For the three months ended September 30 (RMB thousands) | For the nine months ended September 30 (RMB thousands) | | :--- | :--- | :--- | | | 2022 | 2021 | 2022 | 2021 | | Sales Revenue | 19,168 | 17,330 | 38,626 | 48,368 | | Gross Profit / (Loss) | 155 | (4,709) | (19,474) | (11,156) | | Loss Before Tax | (5,085) | (7,136) | (35,263) | (22,790) | | Loss for the Period | (5,085) | (7,075) | (35,263) | (20,921) | | Basic Loss Per Share (RMB cents) | (0.39) | (0.54) | (2.68) | (1.59) | Consolidated Statement of Changes in Equity As of September 30, 2022, the Group's total equity significantly decreased to RMB 16.717 million from RMB 51.980 million at the beginning of the year, primarily due to the RMB 35.263 million loss recorded during the period Summary of Changes in Equity | Item | Amount (RMB thousands) | | :--- | :--- | | As at January 1, 2022 (Audited) | 51,980 | | Loss and Total Comprehensive Expenses for the Period | (35,263) | | As at September 30, 2022 (Unaudited) | 16,717 | Summary of Notes to Financial Statements The notes to the financial statements detail revenue composition, tax status, and dividend policy, indicating that while technical support services are the primary revenue source, their income decreased year-on-year, a key subsidiary enjoys a 15% preferential tax rate but had no assessable profit during the period, and the Board does not recommend an interim dividend Sales Revenue Composition Technical support services constitute the largest portion of the Group's total sales revenue, but for the nine months ended September 30, 2022, this income was RMB 33.994 million, a 23.8% decrease from RMB 44.620 million in the prior year Sales Revenue Details (For the nine months ended September 30) | Revenue Type | 2022 (RMB thousands) | 2021 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sales of Software Products | 2,968 | 1,740 | +70.6% | | Sales of Related Hardware Products | 1,664 | 2,008 | -17.1% | | Provision of Technical Support Services | 33,994 | 44,620 | -23.8% | | Total | 38,626 | 48,368 | -20.1% | Other Gains and Losses For the nine months ended September 30, 2022, the Group recorded a net other loss of RMB 1.219 million, compared to a gain of RMB 4.719 million in the prior year, primarily due to a shift from net exchange gain to net exchange loss - The period recorded a net exchange loss of RMB 2.113 million, compared to a net exchange gain of RMB 2.269 million in the prior period, which is the primary reason for the change in other gains and losses[20] - The prior period included a gain from the disposal of a subsidiary of approximately RMB 2.461 million, which was absent in the current period[20] Income Tax Xinli Technology, a key subsidiary in China, enjoys a 15% preferential corporate income tax rate as a high-tech enterprise; however, no Chinese corporate income tax was accrued as the Group generated no assessable profit during the period - Subsidiary Xinli Technology is recognized as a high-tech enterprise, applying a 15% preferential tax rate, lower than the standard 25% tax rate[22] - For the nine months ended September 30, 2022, the Group generated no assessable profit in China, thus no Chinese corporate income tax was provided[23] Dividends The Board does not recommend the payment of any dividends for the nine months ended September 30, 2022 - The Board does not recommend the payment of dividends for the nine months ended September 30, 2022 (nine months ended September 30, 2021: nil)[26] Management Discussion and Analysis Financial Review The Group's revenue for the first nine months decreased by 20% year-on-year to RMB 38.626 million, primarily due to a 24% reduction in technical support service income, while net loss expanded by 69% year-on-year to RMB 35.263 million due to decreased revenue and a one-off gain from subsidiary disposal in the prior period, though distribution and selling expenses decreased by 36% due to effective cost-saving measures Key Financial Indicators Change (For the nine months ended September 30) | Indicator | 2022 (RMB thousands) | 2021 (RMB thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sales Revenue | 38,626 | 48,368 | -20% | | Cost of Sales | 58,100 | 59,524 | -2% | | Administrative Expenses | 11,001 | 9,686 | +14% | | Distribution and Selling Expenses | 3,993 | 6,270 | -36% | | Finance Costs | 828 | 1,234 | -33% | | Net Loss | 35,263 | 20,921 | +69% | - The primary reasons for the expanded loss include: (i) a revenue decrease of approximately RMB 9.742 million; and (ii) a gain from the disposal of a subsidiary of approximately RMB 2.461 million in the prior period, which was absent in the current period[30] Business Review and Strategy Recurring domestic COVID-19 outbreaks led to reduced IT investment in the banking sector, significantly impacting the Group's business; in response, the Group adheres to its "New One Body, Two Wings" strategy, adjusting product structure, focusing on online-offline integration for payment services, expanding to small and medium-sized banks and merchants, and exiting unprofitable provincial outsourcing services to control losses - Recurring domestic COVID-19 outbreaks impacted banking sector revenue and reduced IT investment, significantly affecting the Group's business and leading to a decline in revenue[32] - The Group adheres to its "New One Body, Two Wings" strategy, diversifying payment products into various scenarios such as aggregated payment, government-finance payment, and smart hospitals, while preparing for the development of digital currency[35] - The bank merchant outsourcing service business underwent strategic contraction, exiting certain unprofitable provinces, reducing service coverage from 13 provinces and 19 branches to 11 provinces and 13 branches to enhance efficiency and profitability[36] Future Outlook The Group will continue to focus on "Payment + Outsourcing Services," prioritizing services for small and medium-sized merchants and new payment scenarios, developing a distinctive "OFFLINE TO ONLINE" operation and maintenance model, while strictly controlling costs and strengthening risk monitoring to achieve a virtuous cycle of "increasing revenue and reducing expenditure" - The core business remains "Payment + Outsourcing Services," extending to services for small and medium-sized merchants and new payment scenarios to form a data foundation[39] - The Group will continue to strictly control costs and strengthen overall business risk monitoring, aiming to achieve "increasing revenue and reducing expenditure"[39] Other Important Information Shareholding Structure The report discloses the shareholding of major shareholders and directors holding over 5% of the company's equity as of September 30, 2022, with Mr. Xiong Rongli and his associates, Mr. Lin Xuexin, Ms. Zhou Cuilian, Mr. Li Dong, and Ms. Lei Ying identified as key interest holders Major Shareholders' Interests As of September 30, 2022, Goldcorp Industrial Limited, Mr. Xiong Rongli, Mr. Lin Xuexin, Mr. Li Dong, and their associates are the company's major shareholders Major Shareholders' Shareholding (As of September 30, 2022) | Shareholder Name | Number of Shares Held (Long Position) | Percentage of Shareholding | | :--- | :--- | :--- | | Goldcorp Industrial Limited | 136,307,500 | 10.35% | | Mr. Xiong Rongli (and his spouse Ms. Yao Bin) | 174,840,000 | 13.27% | | Mr. Lin Xuexin (and his spouse Ms. Zhou Cuilian) | 123,552,682 | 9.38% | | Mr. Li Dong (and his spouse Ms. Lei Ying) | 71,775,500 | 5.45% | Directors' and Chief Executives' Interests As of September 30, 2022, several directors held company shares and share options, with Mr. Xiong Rongli (resigned) and Mr. Lin Xuexin being the executive directors with the highest shareholding percentages Directors' Total Shareholding Interests (As of September 30, 2022) | Director Name | Total Interests (Shares) | Percentage of Issued Share Capital | | :--- | :--- | :--- | | Mr. Xiong Rongli (resigned) | 174,840,000 | 13.27% | | Mr. Lin Xuexin | 123,552,682 | 9.38% | | Mr. Cui Jian | 32,755,000 | 2.49% | | Mr. Xiong Ying | 18,410,322 | 1.40% | Share Option Scheme The company has a share option scheme to incentivize directors and employees; the report details unexercised share options as of September 30, 2022, totaling 75,588,259 options, with no new grants, exercises, or lapses during the period - As of September 30, 2022, a total of 75,588,259 share options remained unexercised, involving directors, continuous contract employees, and consultants[58] - During the reporting period, no new share options were granted, exercised, or lapsed[58] Corporate Governance The company claims compliance with the Corporate Governance Code, with one deviation: the CEO position has been vacant since November 1, 2022; the Audit and Risk Management Committee has reviewed the quarterly results and deemed them properly prepared and adequately disclosed - The company complies with the Corporate Governance Code, but with a deviation: the roles of Chairman and Chief Executive Officer are not separated, and the CEO position has been vacant since November 1, 2022[63] - The Audit and Risk Management Committee, comprising three independent non-executive directors, has reviewed the unaudited results for the period and deemed them adequately disclosed[69] - The company has a Remuneration Committee and a Nomination Committee, with adjustments made to their members after the reporting period[66][67]