Financial Performance - For the nine months ended December 31, 2021, the company's revenue and gross profit were approximately HKD 95,250,000 and HKD 33,530,000, representing an increase of about 61.53% and 4.54% compared to the same period in 2020[5]. - The company recorded a loss of approximately HKD 58,880,000 for the nine-month period, an improvement from a loss of HKD 65,040,000 in the same period of 2020[5]. - The loss attributable to equity holders of the company for the nine months was approximately HKD 47,660,000, compared to HKD 53,390,000 in 2020[5]. - The basic and diluted loss per share attributable to equity holders for the nine months was approximately HKD 2.01, down from HKD 3.25 in the previous year[9]. - For the three months ended December 31, 2021, the company reported revenue of HKD 63,682,000, compared to HKD 29,629,000 in the same period of 2020, marking a significant increase[7]. - The gross profit for the three-month period was HKD 16,441,000, compared to HKD 14,743,000 in the same period of 2020[7]. - The total comprehensive income for the nine months was a loss of HKD 36,592,000, compared to a loss of HKD 4,711,000 in the same period of 2020[11]. - The company reported a total loss before tax of HKD 58,803 thousand for the nine months ended December 31, 2021, compared to a loss of HKD 65,044 thousand in the same period of 2020, indicating a slight improvement[24]. - The total comprehensive loss for the nine months ended December 31, 2021, included a total expenditure of HKD 47,657,000[56]. Revenue Segmentation - Revenue for the nine months ended December 31, 2021, was HKD 95,245 thousand, an increase from HKD 58,965 thousand in the same period of 2020, representing a growth of 61.5%[18]. - The segment revenue from prepaid card and internet payment business was HKD 91,444 thousand for the nine months ended December 31, 2021, compared to HKD 29,617 thousand in 2020, reflecting a significant increase of 208.5%[24]. - The company’s total revenue from merchant acquiring business was HKD 2,717 thousand for the nine months ended December 31, 2021, compared to HKD 10,435 thousand in the same period of 2020, reflecting a decline of 73.9%[24]. - The company’s total revenue from foreign exchange discount income was HKD 504 thousand for the nine months ended December 31, 2021, compared to HKD 1,977 thousand in the same period of 2020, indicating a decrease of 74.5%[18]. - Revenue from prepaid card and internet payment business accounted for approximately HKD 91,400,000, while revenue from merchant acquiring business in Thailand was about HKD 2,700,000, and high-end benefits business contributed around HKD 1,100,000[87]. Cost and Expenses - The company has been focusing on improving operational efficiency and reducing administrative expenses, which decreased to HKD 85,384,000 from HKD 86,324,000 year-over-year[7]. - The cost of services provided was approximately HKD 61,700,000, reflecting an increase of about 130% compared to the previous period, consistent with the revenue growth[88]. - General administrative expenses for the review period were approximately HKD 85,400,000, showing a decrease of about 1% compared to the same period last year[89]. - Employee costs, including directors' remuneration and share-based payment expenses, totaled HKD 48,469,000 for the nine months ended December 31, 2021, up from HKD 37,820,000 in 2020, reflecting a 28.5% increase[32]. - The financing costs for the nine months ended December 31, 2021, amounted to HKD 18,948 thousand, down from HKD 23,312 thousand in the same period of 2020, showing a reduction of 18.8%[30]. Corporate Governance - The board of directors is responsible for overseeing the company's overall strategy and development, as well as monitoring internal control policies and evaluating financial performance[111]. - The company has complied with all applicable provisions of the corporate governance code during the review period[112]. - The company has established various committees, including a nomination committee, remuneration committee, audit committee, internal control committee, and compliance committee, to enhance corporate governance[111]. - The Audit Committee has been established in accordance with GEM listing rules, consisting of independent non-executive directors, with Dr. Yuan Shumin as the chairman[115]. - The Audit Committee reviewed the unaudited quarterly performance for the nine months ending December 31, 2021, confirming compliance with applicable accounting standards and sufficient disclosure[115]. Strategic Initiatives - The company is actively exploring investment opportunities in the fintech and information technology sectors in the Greater Bay Area of China, considering favorable policies and the rapid recovery of the Chinese economy from the pandemic[83]. - The company is shifting its business focus from the Thai merchant acquiring market to other segments, such as prepaid card and internet payment businesses in China, due to skepticism about future growth in the Thai market[84]. - The company is closely monitoring the development of the COVID-19 pandemic and its impact on financial performance, taking necessary actions to maintain business stability and sustainability[83]. - The company has engaged an IT firm to explore software development related to payment services, focusing on local consumption in the Asia-Pacific region and cross-border e-commerce payment expansion[81]. - The company is actively expanding its prepaid card business and has completed system integration for cross-border RMB services with several banks[75]. Shareholder Information - As of December 31, 2021, major shareholder Zhang Chang holds 437,230,000 shares, representing 18.47% of the total shares[105]. - Vered Capital Limited holds a secured interest in 260,090,000 shares, representing 10.99% of the total shares[105]. - The company issued 200,000,000 new ordinary shares at a subscription price of HKD 0.078 per share, representing 20% of the total issued share capital as of August 31, 2021[66]. - The company will see its equity in Oriental Payment diluted from 32.5% to approximately 27.08% following the issuance of 200,000,000 subscription shares[68]. - After the completion of the subscription, Oriental Payment will no longer be a subsidiary of the company, and its financial performance will not be consolidated into the group's financial statements[69].
中国支付通(08325) - 2022 Q3 - 季度财报