Financial Performance - For the three months ended March 31, 2023, the company reported revenue of HKD 4,729,000, a decrease of 82.0% compared to HKD 26,197,000 for the same period in 2022[3] - The gross profit for the nine months ended March 31, 2023, was HKD 3,951,000, remaining relatively stable compared to HKD 3,954,000 for the same period in 2022[3] - Operating loss for the three months ended March 31, 2023, was HKD 2,857,000, compared to an operating loss of HKD 8,061,000 for the same period in 2022[3] - The company recorded a net loss of HKD 6,178,000 for the three months ended March 31, 2023, an improvement from a net loss of HKD 9,869,000 in the same period of 2022[3] - Total comprehensive loss for the three months ended March 31, 2023, was HKD 6,477,000, compared to a total comprehensive loss of HKD 9,363,000 for the same period in 2022[5] - The company’s total revenue for the nine months ended March 31, 2023, was HKD 19,754,000, a decrease of 47.9% from HKD 37,927,000 in the same period of 2022[3] - Basic loss per share for the three months ended March 31, 2023, was HKD (0.14), compared to HKD (0.22) for the same period in 2022[5] - The basic and diluted loss per share for the three months ended March 31, 2023, was HKD 1.38, compared to a loss of HKD 2.21 for the same period in 2022[18] Revenue Sources - The company’s revenue from "Internet+" services (supply chain) for the nine months ended March 31, 2023, was HKD 15,011,000, down from HKD 28,687,000 in the same period of 2022[11] - The company’s revenue from personal protective equipment manufacturing and distribution for the nine months ended March 31, 2023, was HKD 4,743,000, down from HKD 7,698,000 in the same period of 2022[11] Other Income and Expenses - For the nine months ended March 31, 2023, the company reported a total other income of HKD 29,012,000, compared to HKD 15,269,000 for the same period in 2022, representing an increase of 90.5%[12] - The company recognized compensation income of HKD 16,458,000 from the sale of locked shares, having sold 534,000,000 shares during the period[12] - The pre-tax profit for the nine months ended March 31, 2023, was HKD 9,085,000, a significant improvement from a loss of HKD 23,413,000 in the same period of the previous year[18] - The cost of goods sold for the nine months ended March 31, 2023, was HKD 15,803,000, compared to HKD 6,537,000 for the same period in 2022, indicating a 142.5% increase[14] - The interest expense on convertible bonds for the nine months ended March 31, 2023, was HKD 7,241,000, down from HKD 10,192,000 in the same period of 2022, reflecting a decrease of 29.5%[14] Shareholder Information - Major shareholders include Frontend Investment Limited with 697,364,364 shares (15.19%) and Integrated Asset Management (Asia) Limited with 542,363,000 shares (11.81%)[35] - The total shareholding of Mr. Zhou Weihua is 43,800,000 shares, representing 0.95% of the company[31] Corporate Governance - The company has adopted and complied with the applicable code provisions of the GEM Listing Rules Appendix 15, with some deviations noted[49] - The roles of Chairman and CEO are currently held by executive directors, which the board believes is beneficial for the company's business prospects and management[49] - The company has implemented a code of conduct for securities trading by directors, confirming compliance with the required standards during the nine months ended March 31, 2023[50] - The Audit Committee has been established and consists of three independent non-executive directors[51] - The Audit Committee is responsible for reviewing the company's annual reports, interim reports, and quarterly reports[51] - The Audit Committee has reviewed the unaudited performance for the nine months ending March 31, 2023, and confirmed compliance with applicable accounting standards[51] Stock Options - A total of 263,900,000 options were granted under the new share option scheme, with 77,000,000 options exercised as of March 31, 2023[45] - The exercise price for the options granted was set at HKD 0.04, with various vesting periods extending to June 30, 2028[45] - The total number of options available for employees under the scheme amounts to 131,000,000[45] - The total number of stock options granted under the old stock option plan as of March 31, 2023, is 178,850,000[43] - The total number of stock options exercised is 55,655,000, representing approximately 31% of the total options granted[43] - The total number of stock options for employees is 32,395,000, which accounts for about 18% of the total options granted[43] - The total number of stock options for consultants is 90,800,000, making up approximately 51% of the total options granted[43] - The exercise price for all stock options is set at HKD 0.33[43] - The stock options have various vesting periods, with some options expiring as early as February 28, 2021[43] - The company has a significant number of stock options that remain unexercised, indicating potential future dilution[43] - The stock options granted to directors total 55,655,000, which is 31% of the total options[43] - The company has seen a consistent approach to stock option grants, reflecting its strategy to incentivize key personnel[43] - The report indicates a structured approach to stock option management, with clear details on grants and exercises[43] Business Strategy - The company is actively exploring cooperation models with various platform operators in the "Internet+" business to expand market share[25] - The company has successfully entered the Douyin platform as a selected supplier for the "Global Preferred Import Supermarket"[26] - The demand for personal protective equipment has decreased, but the company continues to provide high-quality protective gear to customers[27] - The company is establishing a supply chain service network within the "Internet+" business through partnerships with logistics operators[26] - The company will continue to focus on the "Internet+" business model, leveraging years of experience and technology in supply chain services to expand its offerings[28] - The company is exploring opportunities in the health industry, including the production, distribution, and supply chain of health products, aiming to create new revenue sources[28] - The company plans to enhance sales and supply chain services for various health products across platforms in mainland China and Hong Kong[28] - The company is strengthening collaborations with platform operators to deepen partnerships in the "Internet+" services[28] - The company is actively seeking joint ventures with industry participants to develop "Internet+" solutions[28] Dividends - No dividend has been recommended for the nine months ending March 31, 2023, consistent with the previous year[29] Convertible Bonds - The company has issued convertible bonds that, upon conversion, will result in the issuance of up to 249,651,810 shares to Integrated Asset[36] - The maturity date of the convertible bonds has been extended from January 17, 2021, to January 17, 2022, with a conversion price adjusted from HKD 0.34 to HKD 0.221, allowing for the conversion of up to 405,542,986 shares[38] - The interest rate on the convertible bonds will increase to 10% per annum, payable annually[38] - As of the report date, Integrated Asset has not exercised any conversion rights on the company's shares since January 17, 2022, and no default notices have been received[39] - The company is in discussions with Integrated Asset regarding the renewal or further extension of the convertible bonds[39] Share Transactions - The company did not purchase, sell, or redeem any shares during the nine months ended March 31, 2023[46] - As of March 31, 2023, there were no interests held by directors, major shareholders, or their close associates in any business that directly or indirectly competes with the company[47] - The company has no provisions in its articles of association regarding pre-emptive rights for existing shareholders when new shares are issued[48]
国药科技股份(08156) - 2023 Q3 - 季度财报