Financial Performance - For the three months ended September 30, 2022, the Group reported revenue of HK$45,000, a decrease of 99.8% compared to HK$22,376,000 in the same period of 2021[10]. - The cost of sales for the same period was HK$24,000, resulting in a gross profit of HK$21,000, compared to a gross profit of HK$2,037,000 in the previous year[10]. - The Group incurred an operating loss of HK$6,888,000, a significant decline from the operating profit of HK$5,027,000 reported in the prior year[10]. - The loss before tax for the period was HK$6,924,000, compared to a profit before tax of HK$4,977,000 in the corresponding period of 2021[10]. - The profit attributable to owners of the Company for the period was a loss of HK$6,924,000, compared to a profit of HK$4,977,000 in the same period last year[10]. - Total comprehensive income attributable to owners of the Company for the period was a loss of HK$5,130,000, compared to a profit of HK$5,090,000 in the previous year[10]. - Basic earnings per share for the period was a loss of HK$1.42, compared to earnings of HK$1.06 per share in the same period of 2021[10]. - The Group recorded a loss of approximately HK$6.9 million for the three months ended 30 September 2022, compared to a profit of HK$4.98 million for the same period in 2021, indicating a significant decline in operating income[86][90]. Equity and Reserves - As of September 30, 2022, the total equity attributable to owners of the Company was HK$81,443,000, down from HK$86,573,000 as of July 1, 2022[11]. - The statutory reserve is maintained at a minimum of 25% of capital after usage, with a portion of profits transferred to this reserve as per PRC regulations[12]. Taxation - No provision for Hong Kong Profits Tax was made as the Group had no profits assessable to tax for both periods presented[32]. - PRC enterprise income tax was not provided as the Group had no profit assessable to PRC EIT for both periods presented[33]. Income and Expenses - The Group recorded other income of HK$127,000 for the three months ended September 30, 2022, compared to HK$10,616,000 in the same period of 2021[26]. - The Group did not recognize any gain on the disposal of intangible assets for the three months ended September 30, 2022, compared to HK$1,962,000 in 2021[26]. - Selling and distribution expenses decreased to approximately HK$50,000 for the three months ended September 30, 2022, compared to HK$100,000 in 2021, due to reduced business income[78]. - Administrative expenses decreased from approximately HK$7.5 million for the three months ended September 30, 2021, to approximately HK$7.0 million for the same period in 2022, representing a decrease of approximately 6.7%[79]. Business Operations - Revenue for the period primarily derived from internet advertising agency services and digital assets business[23]. - The Group's revenue from overseas internet advertising fell significantly, with no revenue recorded from the digital assets business due to the impact of COVID-19 and changes in digital asset policies[60]. - Revenue generated from internet services during the same period was HK$45,000, significantly affected by local anti-pandemic policies and economic conditions[68]. - The cost of sales for the three months ended September 30, 2022, was HK$24,000, primarily related to internet services[69]. - The company expanded its overseas cryptocurrency business in the second half of 2021, leveraging its expertise in digital assets[44]. - The company launched a digitalization empowerment platform in March 2022 to provide personalized advertising and enhance customer loyalty[44]. - The "Million Stars Promotion Machine," an intelligent advertising device with a product vending function, was introduced to tap into the advertising market in mainland China[51]. - The digitalization empowerment system incorporates both online and offline functions, enhancing the company's service offerings[51]. - The company closely monitors cryptocurrency price movements to set competitive pricing strategies in the digital assets market[50]. - The Group plans to establish Million Stars Supercomputing Co., Ltd. in Hong Kong to operate the newly established digital assets business, leveraging favorable policies[65]. - The Group's digital asset business is expected to grow as a result of favorable policies introduced in Hong Kong[70]. - The Group will continue to seek new business opportunities and explore new revenue sources to enhance shareholder returns[66]. Financial Position - As of 30 September 2022, the Group's cash and bank balances totaled approximately HK$1.0 million, down from HK$19.5 million as of 30 June 2022, primarily due to initial investments in some projects[88][91]. - The Group's outstanding borrowings remained stable at HK$9.3 million as of 30 September 2022, with a debt-to-equity ratio of approximately 8.6%[93][98]. - The Group's subsidiaries in the Horgos Economic Development Zone benefit from a five-year exemption from enterprise income tax, with standard rates of 16.5% in Hong Kong and 25% in the PRC[85][89]. Corporate Governance - The audit committee reviewed the unaudited consolidated results for the three months ended September 30, 2022, prior to board approval[127]. - All directors, except Gan Xiaohua, confirmed compliance with the required standards set out in the Model Code during the reporting period[125]. - The company has adopted a code of conduct for securities transactions that meets the standards of the GEM Listing Rules[124]. - There were no known competing businesses or conflicts of interest involving directors or controlling shareholders during the reporting period[118]. - The consolidated performance for the three months ending September 30, 2022, has not yet been audited by the company's auditors[130]. - The report is presented by the Chairman and CEO, Zhu Yongjun, on November 11, 2022[130]. - The board includes executive directors Zhu Yongjun, Gan Xiaohua, and Tian Yuan, as well as independent non-executive directors Chen Ce, Jiang Ying, and Zhu Minli[130]. Shareholder Information - As of September 30, 2022, the company had 488,000,000 shares issued[117]. - Zhu Yongjun holds 38,398,786 shares, representing approximately 7.87% of the issued share capital[112]. - 7Road Holdings Limited is a substantial shareholder with 54,000,000 shares, accounting for 11.07% of the issued share capital[115]. - Shanghai Angell Asset Management holds 72,497,169 shares, which is about 14.86% of the issued share capital[115]. - Jiang Peijie owns 29,150,000 shares, representing 5.97% of the issued share capital[115]. - The company did not purchase, sell, or redeem any of its listed securities during the three months ended September 30, 2022[119].
瓦普思瑞元宇宙(08093) - 2023 Q1 - 季度财报