GAMEONE(HK:08282)2023-05-12 08:48Financial Performance - For the three months ended March 31, 2023, the revenue was HKD 29,493,000, representing an increase of 56.5% compared to HKD 18,893,000 for the same period in 2022[3] - The cost of services provided was HKD 23,645,000, leading to a gross profit of HKD 5,848,000, down from HKD 9,532,000 in the previous year[3] - The total comprehensive loss for the period was HKD 3,971,000, compared to a loss of HKD 273,000 in the same period last year[3] - The basic and diluted loss per share was HKD 1.50, compared to HKD 0.48 for the same period in 2022[3] - The group reported a net loss of approximately HKD 3.6 million for the three months ended March 31, 2023, compared to a net loss of about HKD 0.8 million for the same period in 2022[37] - The group's gross profit decreased by approximately 38.9% from about HKD 9.5 million for the three months ended March 31, 2022, to about HKD 5.8 million for the three months ended March 31, 2023[41] - The gross margin for the three months ended March 31, 2023, was approximately 19.8%, a decrease of about 30.7 percentage points from approximately 50.5% for the same period in 2022[41] Revenue Breakdown - Software service revenue for the three months ended March 31, 2023, was HKD 17.2 million, up from HKD 4.9 million in the same period of 2022, representing a growth of approximately 252.5%[19] - The gaming business generated revenue of HKD 12.3 million for the three months ended March 31, 2023, a decrease of about 12.2% from HKD 14.0 million in the same period of 2022[19] - Major clients contributed over 10% of total revenue, with Client A contributing HKD 9.2 million and Client B contributing HKD 5.4 million for the three months ended March 31, 2023[23] Expenses - Administrative expenses increased to HKD 7,467,000 from HKD 4,718,000 year-over-year, reflecting a rise of 58.5%[3] - Sales expenses for the three months ended March 31, 2023, were approximately HKD 2.7 million, a decrease of about 52.6% compared to approximately HKD 5.7 million for the same period in 2022[42] - Administrative expenses increased by approximately 59.6% to about HKD 7.5 million for the three months ended March 31, 2023, compared to approximately HKD 4.7 million for the same period in 2022[43] Corporate Governance - The company has adopted a code of conduct regarding securities trading by directors, which has been complied with throughout the review period[55] - The company has maintained a minimum public float of 25% as required by GEM listing rules[58] - The company has adopted the corporate governance code and has complied with all applicable provisions, except for the separation of the roles of Chairman and CEO, which are held by the same individual[56] - The company believes that having the same person serve as both Chairman and CEO provides strong and consistent leadership, facilitating the formulation and execution of business strategies[56] - The company has ensured that the audit committee consists of at least three members, with a majority being independent non-executive directors[63] - The company has made sufficient disclosures regarding its financial performance in compliance with applicable laws and regulations[63] Future Plans and Strategies - The group has allocated more resources to video live-streaming e-commerce advertising technology services due to strong demand in China[37] - The group plans to introduce more quality licensed games and focus on mobile games to strengthen market positioning and enhance marketing efforts[37] Dividends and Shareholder Information - No dividends were declared or paid by the company or any of its subsidiaries for the three months ended March 31, 2023[30] - The board did not recommend the distribution of dividends for the three months ended March 31, 2023[46] - The company and its subsidiaries did not purchase, sell, or redeem any of the company's listed securities during the three months ended March 31, 2023[53] - No stock options were granted, exercised, expired, or lapsed during the three months ended March 31, 2023, and there are no unexercised stock options under the plan[61] Company Overview - The company operates primarily in software services and game development in mainland China and Hong Kong[7] - The company’s shares have been listed on the GEM of the Hong Kong Stock Exchange since January 13, 2016[7] - The company has a stock option plan approved by shareholders on December 23, 2015, which is effective for 10 years from the date of listing[59] - The total number of shares that may be issued upon the exercise of stock options granted under the plan shall not exceed 30% of the issued shares from time to time[60] - The audit committee, established on December 23, 2015, includes independent non-executive directors and has reviewed the unaudited consolidated results for the three months ended March 31, 2023, ensuring compliance with applicable accounting standards and GEM listing rules[63] - The company is committed to responding accurately and swiftly to the rapidly changing business environment through its governance structure[56] Standards and Compliance - The company has not applied any new standards that have been issued but not yet effective, and is currently assessing their potential impact[10]