Revenue Performance - The total revenue for the group during the reporting period was approximately HKD 22,900,000, a decrease of HKD 149,900,000 compared to HKD 172,800,000 for the same period last year[10]. - Revenue from data center services was approximately HKD 20,700,000, down HKD 149,300,000 from HKD 170,000,000 in the same period last year[10]. - Revenue from lending business was approximately HKD 2,300,000, unchanged from the same period last year[13]. - The company reported revenue of HKD 22,905,000 for the nine-month period ending September 30, 2022, a decrease of 87.5% compared to HKD 172,753,000 for the same period in 2021[30]. - For the three months ended September 30, 2022, the revenue from big data center services was HKD 6,885,000, while for the nine months, it was HKD 20,655,000, a significant decrease from HKD 170,044,000 in the same period last year[37]. - The total revenue for the three months ended September 30, 2022, was HKD 7,635,000, compared to HKD 865,000 in the same period last year, and for the nine months, it was HKD 22,905,000, down from HKD 172,753,000 year-on-year[37]. Loss and Financial Performance - The company recorded a loss of approximately HKD 29,700,000, a decrease of HKD 150,800,000 or 83.6% compared to a loss of HKD 180,500,000 in the same period of 2021[14]. - The gross loss from data center services decreased by approximately HKD 23,700,000, primarily due to a reduction in sales and service costs by about HKD 173,500,000, which outweighed the revenue decrease of approximately HKD 149,400,000 from the closure of three data centers[14]. - The company incurred a loss before tax of HKD 29,663,000 for the nine-month period, compared to a loss of HKD 180,447,000 in the same period last year, reflecting a reduction in losses[30]. - The total comprehensive loss for the nine-month period was HKD 40,911,000, compared to HKD 160,156,000 in the previous year, showing a substantial decrease[32]. - The basic and diluted loss per share for the nine-month period was HKD 5.41, compared to HKD 35.10 in the previous year, indicating a reduction in loss per share[32]. Asset Management and Impairment - The group has made provisions for impairment of fixed assets due to the closure of three data centers in Sichuan, China, which will close in the fourth quarter of 2022[6]. - Fixed asset impairment provisions decreased by approximately HKD 115,700,000 due to the closure and dismantling of three data centers since June 2021[14]. - Employee costs decreased by approximately HKD 9,600,000 due to a reduction in workforce following the closure of the three data centers[14]. Business Segments and Services - The group’s data center services are part of its main business segments, which also include data processor leasing and lending services[4]. - The group recorded no revenue from data processor leasing services during the reporting period[11]. - The cryptocurrency mining business generated no revenue in the current periods, compared to HKD 115,000 in the previous year[37]. - The online gaming business reported no revenue for the current periods, down from HKD 344,000 in the previous year[37]. Strategic Initiatives and Future Plans - The company plans to explore the development of data centers in overseas markets, including North America and Southeast Asia, to expand its existing business[17]. - The company is considering research into blockchain technology and web 3.0 applications in response to the Hong Kong government's policy declaration on the development of virtual assets[16]. - The company has no plans for significant investments or acquisitions during the reporting period[22]. Corporate Changes and Governance - The company changed its name from "Loto Interactive Limited" to "Crypto Flow Technology Limited" to better reflect its future development direction[18]. - The company completed a mandatory unconditional cash offer, resulting in a new major shareholder, Wan Fung Industries, acquiring approximately 51% of the company's issued share capital for HKD 78,308,496[23]. - The company has appointed new executive directors and independent non-executive directors, which may influence future strategic decisions[26]. - The audit committee, consisting of three independent non-executive directors, reviewed the financial data for the third quarter, ensuring compliance with internal controls and risk management[69]. - The company has established a risk management framework to oversee its financial reporting processes and enhance internal controls[68]. Shareholder Information - As of September 30, 2022, the total number of issued shares was 548,378,822[62]. - Wan Fung Industrial Co., Ltd. holds 279,815,740 shares, representing 51.03% of total shares[62]. - BIT Mining Limited owns 48,195,605 shares, accounting for 8.79% of total shares[62]. - The company reported a significant increase in user data, with a total of 279,815,740 shares held by its major shareholder, representing a 35% equity interest[64]. Financial Management - The company reported other income and gains of HKD 566,000 for the nine-month period, compared to a loss of HKD 114,932,000 in the previous year, indicating a positive shift[30]. - The company’s financial expenses for the nine-month period were HKD 236,000, a decrease from HKD 592,000 in the previous year, suggesting improved financial management[30]. - The company did not record any deferred tax assets or liabilities due to operational losses in both periods[39]. - The tax rate for the company's subsidiaries in China is 25% as per the Corporate Income Tax Law[40]. Dividends and Stock Options - The company does not recommend the payment of an interim dividend for the reporting period[19]. - No dividends were declared or paid for the nine months ended September 30, 2022, consistent with the same period last year[41]. - The company did not engage in any purchase, sale, or redemption of its listed securities during the reporting period[46]. - There were no new share option plans established after the expiration of the 2012 share option plan on May 18, 2022[48]. - The company did not grant or exercise any stock options under the 2012 stock option plan during the reporting period[54]. - A total of 32,083,600 stock options were reported, with 31,793,600 remaining unexercised[53]. - The stock options granted on April 1, 2019, have an exercise price of HKD 1.10 and a validity period until March 31, 2029[54]. - The stock options granted on August 10, 2020, have an exercise price of HKD 0.26 and a validity period until August 9, 2030[54].
加幂科技(08198) - 2022 Q3 - 季度财报