Financial Performance - The unaudited condensed consolidated financial results for the three months ended September 30, 2022, were reported, with comparative figures for the same period in 2021[22]. - Revenue for the three months ended September 30, 2022, was HK$18,456,000, a decrease of 9.4% from HK$20,360,000 in the same period of 2021[24]. - Gross profit for the three months ended September 30, 2022, increased to HK$5,429,000, up 24% from HK$4,377,000 in the previous year[24]. - Other income for the three months ended September 30, 2022, was HK$2,262,000, significantly down from HK$12,183,000 in the same period of 2021[24]. - The operating loss before income tax for the three months ended September 30, 2022, was HK$1,328,000, compared to a profit of HK$7,215,000 in the same period of 2021[24]. - The loss attributable to owners of the company from continuing operations for the three months ended September 30, 2022, was HK$964,000, compared to a profit of HK$5,432,000 in the previous year[27]. - Total comprehensive loss for the period was HK$22,445,000, compared to a comprehensive income of HK$4,799,000 in the same period of 2021[27]. - The loss per share attributable to owners of the company for continuing operations was HK$0.06 for the three months ended September 30, 2022[29]. - Total revenue for the nine months ended September 30, 2022, was HK$53,285,000, down from HK$65,377,000 in the same period of 2021, representing a decrease of 18.5%[24]. - The company experienced a significant decline in other comprehensive income, reporting a loss of HK$19,274,000 for the three months ended September 30, 2022[26]. - The total loss attributable to owners of the Company for the nine months ended September 30, 2022, was HK$5,397,000, compared to a loss of HK$3,204,000 in the same period of 2021, reflecting an increase of 68.3%[57]. - Basic and diluted loss per share for continuing operations was HK$0.06 for the three months ended September 30, 2022, down from HK$0.36 in the same period of 2021[59]. - The total basic and diluted loss per share for the three months ended September 30, 2022, was HK$0.16, compared to a profit of HK$0.29 in the same period of 2021, marking a decline of 155.2%[59]. Market Outlook and Strategy - The Group's revenue for the third quarter of 2022 showed a significant increase compared to the previous year, reflecting strong market demand[21]. - User data indicated a growth in active users, contributing to the overall revenue increase for the quarter[21]. - The Company is optimistic about future growth, projecting a continued upward trend in revenue for the upcoming quarters[21]. - New product developments are underway, focusing on enhancing digital content creation capabilities to capture a larger market share[21]. - The Company plans to expand its market presence through strategic partnerships and collaborations in the digital space[21]. - Ongoing research and development efforts are aimed at integrating advanced technologies into existing product lines[21]. - The Company is exploring potential acquisition opportunities to bolster its competitive position in the market[21]. - Management emphasized the importance of adapting to market trends and consumer preferences to drive future growth[21]. - The financial outlook remains positive, with guidance suggesting a potential revenue growth of over 15% year-on-year for the next fiscal year[21]. Revenue Breakdown - Revenue from computer graphic production for the three months ended September 30, 2022, was HK$3,284,000, a significant increase from HK$79,000 in the same period of 2021[37]. - Total revenue from television programmes and movies decreased to HK$617,000 for the three months ended September 30, 2022, compared to HK$4,143,000 in the same period of 2021[37]. - Management services fee revenue for the three months ended September 30, 2022, was HK$3,957,000, slightly down from HK$4,149,000 in the same period of 2021[37]. - Rental income for the three months ended September 30, 2022, was HK$10,556,000, compared to HK$11,989,000 in the same period of 2021, reflecting a decrease of approximately 11.9%[37]. - Government grants received amounted to HK$51,000 for the three months ended September 30, 2022, down from HK$9,813,000 in the same period of 2021[37]. - Interest income for the three months ended September 30, 2022, was HK$2,070,000, a decrease from HK$2,296,000 in the same period of 2021[40]. Expenses and Losses - Distribution and selling expenses from continuing operations for the Period were HK$2,266,000, a decrease of HK$8,503,000 compared to HK$10,769,000 for the same period in 2021, mainly due to reduced marketing expenses from film distribution[67]. - Administrative expenses from continuing operations for the Period amounted to HK$26,389,000, a decrease of HK$2,248,000 compared to HK$28,637,000 for the same period last year, primarily due to decreases in staff costs and office running costs[67]. - Finance costs from continuing operations for the Period were HK$18,000, up from HK$6,000 for the same period in 2021, arising from interest expense of lease liabilities recognized under HKFRS 16[67]. - Loss from discontinued operations for the Period was HK$9,692,000, a decrease of HK$4,211,000 compared to a loss of HK$13,903,000 for the same period last year, mainly due to reduced litigation and operating expenses[67]. Legal Matters - The Group has ongoing litigation regarding property occupation fees amounting to RMB148,745,800 and related interest from 2016 to 2019[82]. - The Guangzhou Intermediate People's Court ruled that Guangdong GDC must pay RMB41,656,989 and RMB3,813,331 in related interest for the period from March 2016 to September 2019[82]. - The case has been returned for retrial by the Guangdong Higher People's Court, with no judgment made as of the report date[82]. - Guangdong GDC initiated legal proceedings against Pearl River Film Production, claiming approximately RMB240,000,000 for capital contribution and RMB54,900,000 for related interests, along with RMB20,000,000 in compensation for losses due to breach of contract[84]. - The Guangzhou Intermediate People's Court rejected Guangdong GDC's claims on 18 May 2022, and an appeal was filed on 1 June 2022, with no judgment handed down as of the report date[84]. Shareholder Information - The Board does not recommend the payment of an interim dividend for the nine months ended 30 September 2022, consistent with the previous year where no dividend was paid[90]. - As of 30 September 2022, Mr. Chen Zheng holds 185,988,200 shares, representing approximately 12.33% of the total issued share capital[92]. - Mr. Wang Hongpeng holds 2,088,000 shares, representing approximately 0.14% of the total issued share capital[92]. - Mr. Xiao Yong holds 380,000 shares, representing approximately 0.03% of the total issued share capital[92]. - No purchases, sales, or redemptions of the Company's listed securities were made by the Company or its subsidiaries during the nine months ended 30 September 2022[90]. - The Company will make timely disclosures of any significant updates on the respective websites of the Stock Exchange and the Company[85]. - The Company has not engaged in any arrangements enabling Directors or their associates to acquire benefits through share acquisitions during the nine months ended September 30, 2022[94]. - The Company has not granted any share options under its Share Option Scheme since its adoption on June 18, 2013, which is valid for 10 years[98]. Corporate Governance - The Company has complied with the Corporate Governance Code throughout the nine months ended September 30, 2022, with one noted deviation regarding attendance at the annual general meeting[100]. - The Company confirmed that all Directors complied with the code of conduct regarding securities transactions throughout the nine months ended September 30, 2022[107]. - There were no competing businesses or conflicts of interest reported by the Directors or controlling shareholders during the nine months ended September 30, 2022[99]. - The Group's third quarterly results for the nine months ended September 30, 2022, were unaudited, and the audit committee reviewed these results[107].
环球数码创意(08271) - 2022 Q3 - 季度财报