Financial Performance - The company reported revenue of HKD 4,632,000 for the nine months ended December 31, 2022, representing a 70.5% increase from HKD 2,717,000 in the same period of 2021[4] - The cost of services provided increased to HKD 4,115,000, up from HKD 1,656,000, resulting in a gross profit of HKD 517,000, down from HKD 1,061,000[4] - The company incurred a loss before tax of HKD 25,914,000 for the nine months ended December 31, 2022, compared to a loss of HKD 24,923,000 in the same period of 2021[4] - The net loss attributable to equity holders of the company was HKD 25,914,000 for the nine months ended December 31, 2022, compared to HKD 24,996,000 in the same period of 2021[4] - Basic and diluted loss per share for the nine months ended December 31, 2022, was HKD 2.10, compared to HKD 2.50 for the same period in 2021[4] - The company reported other income of HKD 1,123,000 for the nine months ended December 31, 2022, down from HKD 1,675,000 in the same period of 2021[4] - General administrative expenses were HKD 17,354,000 for the nine months ended December 31, 2022, compared to HKD 16,504,000 in the same period of 2021[4] - The company recorded a total comprehensive loss of HKD 26,181,000 for the nine months ended December 31, 2022, compared to HKD 25,897,000 in the same period of 2021[6] Equity and Shareholder Information - The company's equity attributable to equity holders decreased to HKD 11,792,000 as of December 31, 2022, from HKD 21,551,000 at the end of the previous reporting period[10] - The weighted average number of ordinary shares for the nine months ended December 31, 2022, was 1,232,174,000, compared to 1,000,000,000 for the same period in 2021, indicating an increase in shares outstanding[29] - The company confirmed that the diluted loss per share is the same as the basic loss per share due to the anti-dilutive effect of potential ordinary shares[29] - As of December 31, 2022, the total number of issued shares of the company is 1,348,000,000[3] - Metagate Investment SPC holds 226,460,000 shares, representing 16.80% of the company's issued shares[82] - Rainbow Elite International Limited holds 91,000,000 shares, accounting for 6.75% of the company's issued shares[82] - Yuanfu Group Limited holds 67,500,000 shares, which is 5.01% of the company's issued shares[82] Operational Highlights - The group’s main business is merchant acquiring in Thailand, with a focus on expanding its services in the region[15] - Merchant acquiring transaction fee income for the three months ended December 31, 2022, was HKD 740,000, up 55.4% from HKD 476,000 in the same period of 2021[18] - ESG consulting service income for the nine months ended December 31, 2022, amounted to HKD 450,000, compared to no income in the same period of 2021[18] - The group recorded total revenue of approximately HKD 4,632,000 during the reporting period, an increase from HKD 2,717,000 in 2021, driven by a rise in transaction volume from Chinese tourists in Thailand[52] - Merchant acquiring transaction fee income was approximately HKD 3,181,000, up from HKD 2,193,000 in 2021, reflecting an increase of about 44.9%[52] Loss and Expenses - The group faced a net loss attributable to owners of approximately HKD 25,914,000, slightly higher than the net loss of HKD 24,996,000 in 2021, primarily due to increased R&D expenses[60] - Gross profit decreased to approximately HKD 517,000, down about 51.3% from HKD 1,061,000 in the same period last year, with gross margin dropping from approximately 39.1% to 11.2%[55] - The cost of services provided increased by approximately 148.5% to HKD 4,115,000, compared to HKD 1,656,000 in 2021, due to higher transaction volumes and the introduction of ESG consulting services[54] - General administrative expenses rose to approximately HKD 17,354,000 from HKD 16,504,000 in 2021, mainly due to increased R&D expenditures[56] - Employee costs for the nine months ended December 31, 2022, totaled HKD 10,811,000, slightly up from HKD 10,594,000 in the same period of 2021[22] - Financing costs decreased to approximately HKD 2,779,000 from HKD 4,569,000 in 2021, attributed to reduced interest expenses on convertible bonds[59] Tax and Compliance - The group did not recognize any Hong Kong profits tax due to tax losses incurred during the period[25] - The group has not commenced operations in Cambodia, thus no corporate income tax was recognized for that jurisdiction[26] - The group currently has no predetermined dividend payout ratio, and any future dividend declaration will depend on various factors including operating performance and financial condition[61] - The company did not declare any dividends for the nine months ended December 31, 2022, consistent with the previous year[30] - The company has confirmed compliance with trading standards during the reporting period[91] - The company did not comply with certain GEM listing rules until November 1, 2022, when a new independent non-executive director was appointed[88] Governance and Internal Controls - The company has adopted the corporate governance code as a framework to protect shareholder interests and enhance corporate value[86] - The Audit Committee has been established to review and supervise the company's financial reporting and internal control procedures[94] - The Audit Committee consists of three independent non-executive directors, with Mr. Zhong Weiquan as the chairman[94] - The Audit Committee has reviewed the Group's Q3 financial statements and believes they comply with applicable accounting standards and have made sufficient disclosures[94] Financial Instruments and Liabilities - The convertible bonds issued in June 2020, with a principal amount of HKD 11,850,000, had their maturity extended to December 23, 2023, following amendments to the terms[34] - The company recognized a loss of approximately HKD 1,100,000 due to the revision of the convertible bonds' terms during the reporting period[36] - As of December 31, 2022, the liability portion of the convertible bonds was reported at HKD 13,014,000, reflecting an increase from HKD 11,859,000 as of March 31, 2021[39] - The group maintained a prudent treasury policy and a robust liquidity position throughout the reporting period[65] - As of December 31, 2022, the group had outstanding foreign exchange forward contracts amounting to USD 250,000 (approximately HKD 1,950,000) to hedge against foreign exchange risk[66] - The group has no other derivative instruments to hedge foreign exchange risk as of December 31, 2022[66] Loans and Related Entities - The group has provided a revolving loan facility of up to HKD 4,700,000 to a related entity, with an outstanding principal amount of HKD 4,700,000 as of the report date[70] - The loan agreement carries an interest rate of 8% per annum, with a default interest rate of 24% applicable on overdue amounts[73] - The group is in discussions regarding the repayment arrangements for the loan provided to the related entity[74] Market Opportunities and Strategy - The group aims to diversify its business portfolio and expand its market influence by pursuing opportunities in the electronic payment industry[49] - The group is closely monitoring the impact of the COVID-19 pandemic on its financial condition and operational performance, adjusting its business strategies accordingly[51] - The group has identified various market opportunities for broader applications of electronic payments in developing Asian countries[51] Investments and Acquisitions - There were no significant investments, acquisitions, or disposals during the reporting period[68] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[85] - The company has a stock option plan that allows for the issuance of 100,000,000 shares, approximately 7.23% of the total issued shares as of the report date[92] - No directors or major shareholders have interests in any competing businesses as of December 31, 2022[89]
东方支付集团控股(08613) - 2023 Q3 - 季度财报