Financial Performance - For the three months ended August 31, 2023, the company reported revenue of HKD 6,025,000, a decrease of 60.3% compared to HKD 15,172,000 for the same period in 2022[5] - The gross profit for the three months ended August 31, 2023, was HKD 4,003,000, representing a gross margin of 66.4%[5] - Operating loss for the three months ended August 31, 2023, was HKD 1,013,000, compared to an operating profit of HKD 2,694,000 for the same period in 2022[5] - The company reported a net loss attributable to owners of HKD 1,334,000 for the three months ended August 31, 2023, compared to a profit of HKD 2,249,000 in the same period last year[5] - For the nine months ended August 31, 2023, total revenue was HKD 19,389,000, down 64.1% from HKD 54,243,000 in the previous year[5] - The company incurred financing costs of HKD 941,000 for the nine months ended August 31, 2023, compared to HKD 1,238,000 in the same period of 2022[5] - The company recorded unaudited revenue of approximately HKD 6,025,000 for the three months ended August 31, 2023, a decrease of 60% compared to HKD 15,172,000 for the same period last year[17] - The unaudited net loss for the three months ended August 31, 2023, was approximately HKD 1,334,000, compared to an unaudited profit of HKD 2,249,000 for the same period last year[17] - The company’s total equity as of August 31, 2023, was HKD 17,527,000, down from HKD 25,129,000 a year earlier[15] Revenue Breakdown - The company’s software licensing and related services generated revenue of HKD 3,434,000 for the nine months ended August 31, 2023, a decrease of 13.4% from HKD 39,746,000 in the same period of 2022[10] - Maintenance services contributed HKD 9,096,000 in revenue for the nine months ended August 31, 2023, remaining relatively stable compared to HKD 9,120,000 in the previous year[10] - Revenue from software licensing, leasing, and related services accounted for approximately HKD 1,012,000 or 17% of total revenue[17] - Revenue from maintenance services was approximately HKD 2,727,000, representing 45% of total revenue[17] - Revenue from fintech resource services increased by 17% to approximately HKD 2,266,000 compared to HKD 1,936,000 in the same period last year[18] - Revenue from the sale of self-developed software was approximately HKD 3,739,000, while revenue from fintech resource services was approximately HKD 2,266,000, reflecting a 17% increase from approximately HKD 1,936,000 in the same period last year[26] Operating Expenses and Financial Management - The company’s operating expenses for the period were approximately HKD 3,729,000, a decrease of 35% from HKD 5,722,000 in the previous year[18] - Depreciation expenses for property, plant, and equipment were approximately HKD 38,000, remaining stable compared to HKD 40,000 in the same period last year[19] - The company has approximately HKD 38,209,000 in unutilized tax losses that can be carried forward indefinitely to offset future taxable profits[13] Strategic Focus and Growth Plans - The company continues to focus on expanding its software licensing and fintech resource services as part of its growth strategy[9] - The group plans to enhance its compliance technology solutions, particularly the FinReg system, to automate transaction monitoring and anti-money laundering compliance for clients[23] - The launch of abcWealthConnect, an asset management platform, aims to improve operational efficiency for clients in the external asset management services sector[25] - The group anticipates a gradual recovery of the overall economy in the second half of 2023, following the lifting of pandemic-related restrictions, which is expected to positively impact the growth of compliance technology solutions[22] - The group is actively engaging with potential clients to implement its compliance technology solutions and expand its customer base[22] - The financial technology resource services segment has seen stable growth, attributed to increased demand for recruitment services and successful client acquisitions[26] - The group recognizes the importance of regulatory compliance in the financial industry and is committed to investing more resources in its compliance technology solutions[25] - The overall industry outlook remains uncertain, heavily influenced by the recovery of the Hong Kong economy and the financial sector, with a focus on improving operational efficiency and driving revenue growth in 2023[27] - The company is committed to preparing for growth opportunities as market conditions improve[29] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors[41] - The company is actively seeking suitable candidates to fill the vacancy left by the resignation of an independent non-executive director[42] - The Audit Committee held three meetings during the nine months ended August 31, 2023, to review the company's reports and financial statements[43] - The Audit Committee reviewed the unaudited performance for the three months ended August 31, 2023, and deemed it prepared in accordance with applicable accounting standards[43] - The company did not redeem any of its listed securities during the nine months ended August 31, 2023[44] - The company or its subsidiaries did not purchase or sell any of the company's listed securities during the reporting period[44] Shareholding Structure - As of August 31, 2023, Bravo Merit Management holds 355,949,933 shares, representing 74.81% of the issued share capital[37] - Non-Fabulous Consulting Limited holds 123,529,400 convertible preferred shares, accounting for 25.96% of the issued share capital[37] - Bravo agreed to acquire 355,949,933 ordinary shares for a total consideration of HKD 27,000,000, equivalent to approximately HKD 0.0759 per share[37] Research and Development - The company plans to enhance its research and development capabilities and improve the quality of its sales and marketing teams[29] - The sales and marketing teams will continue to maintain close business relationships with existing customers while exploring potential markets to boost sales performance[29] - The company emphasizes its 30 years of experience in providing diverse products and services to maintain market competitiveness[29]
辰罡科技(08131) - 2023 Q3 - 季度财报