Financial Performance - The company's revenue for the three months ended December 31, 2021, was HKD 12,578,000, representing a 22% increase from HKD 10,311,000 in the same period of 2020[6]. - For the nine months ended December 31, 2021, the revenue reached HKD 37,217,000, up 21% from HKD 30,724,000 in the previous year[6]. - The net profit attributable to the owners of the company for the three months was HKD 2,390,000, a decrease of 5% compared to HKD 2,525,000 in the same quarter of 2020[6]. - Total comprehensive income for the nine months was HKD 8,574,000, slightly down from HKD 8,622,000 in the previous year[6]. - The company reported a profit attributable to owners of the company of HKD 8,574,000 for the nine months ended December 31, 2021, slightly down from HKD 8,622,000 in the same period of 2020[23]. - Basic earnings per share for the nine months ended December 31, 2021, were HKD 2.14, compared to HKD 2.16 for the same period in 2020[23]. - The diluted earnings per share for the nine months ended December 31, 2021, was HKD 2.14, compared to HKD 2.16 for the same period in 2020[25]. - The company did not recommend the payment of an interim dividend for the nine months ended December 31, 2021[28]. Revenue Breakdown - Revenue from licensing and maintenance services for the nine months ended December 31, 2021, was approximately HKD 29.07 million, accounting for 78% of total revenue[33]. - Revenue from initial setup and customization services for the nine months ended December 31, 2021, was approximately HKD 8.14 million, accounting for 22% of total revenue[33]. - The revenue from initial setup and customization services increased significantly to HKD 8,138,000 for the nine months ended December 31, 2021, compared to HKD 921,000 in the same period of 2020, representing an increase of 786%[15]. - Revenue from initial setup and customization services increased approximately 784% from about HKD 0.9 million to about HKD 8.1 million for the nine months ended December 31, 2021[34]. - Sales of computer hardware and software generated revenue of approximately HKD 9,000 for the nine months ended December 31, 2021, compared to none in the previous year[34]. - Revenue from licensed and maintenance services decreased approximately 2% from about HKD 29.8 million to about HKD 29.1 million due to contract terminations totaling about HKD 1.5 million[34]. Expenses and Costs - Employee benefits expenses for the nine months were HKD 14,295,000, up 34% from HKD 10,665,000 in the same period of 2020[6]. - The company experienced an increase in expenses totaling approximately HKD 5.3 million, including employee benefits and internet service costs[31]. - Research and development expenses were approximately HKD 10.6 million for the nine months ended December 31, 2021, compared to HKD 7.8 million in the previous year[39]. - The company incurred financing costs of HKD 27,000 for the nine months, significantly reduced from HKD 136,000 in the previous year[6]. - Financing costs decreased approximately 80% from about HKD 136,000 to about HKD 27,000, attributed to the repayment of bank loans and a decline in floating interest rates[46]. - Income tax expense increased approximately 10% from about HKD 2.2 million to about HKD 2.4 million, influenced by a decrease in non-taxable income[49]. Corporate Governance - The company has adopted good corporate governance principles as per GEM Listing Rules Appendix 15, ensuring compliance with all applicable code provisions[52]. - The company aims to enhance shareholder value and transparency through robust corporate governance practices[52]. - The audit committee was established on March 29, 2019, in accordance with GEM Listing Rule 5.28, consisting of three independent non-executive directors[73]. - The audit committee reviewed the unaudited condensed consolidated financial statements for accuracy[12]. - The compliance advisor for the company is Dongxing Securities (Hong Kong) Limited, with no reported interests in the company's equity as of the report date[72]. Shareholder Information - As of December 31, 2021, a total of 32,400,000 stock options were exercisable, an increase from 16,200,000 options in 2020[57]. - The company confirmed a share-based payment expense of approximately HKD 435,000 for the nine months ended December 31, 2021, compared to HKD 964,000 for the same period in 2020[56]. - The company granted a total of 1,600,000 stock options in 2020, with an exercise price of HKD 0.095 per share[58]. - The expected volatility for the 2020 stock options was 55.27% for the first batch and 54.01% for the second batch[59]. - The fair value of the 2019 stock options at grant date was HKD 0.078 per share for the first batch and HKD 0.082 per share for the second batch[56]. - The company has not reported any violations of the securities trading code by its directors as of December 31, 2021[68]. - There are no known interests or conflicts of interest among directors or major shareholders in any competing businesses as of December 31, 2021[71]. - The company’s major shareholders include Mr. Wai, who holds 210,000,000 shares (52.5%), and Mr. Chung, who holds 90,000,000 shares (22.5%) of the company[63][64]. - Essential Strategy, owned by Mr. Wai, and Expert Wisdom, owned by Mr. Chung, collectively hold 300,000,000 shares, representing 75% of the total issued shares[67]. Future Plans - The company plans to continue expanding its market presence and developing new financial trading solutions[10]. - The company plans to allocate resources to enhance and upgrade existing financial trading solutions and explore the development of new IT solutions[32]. - The company has been awarded a Standing Offer Agreement (SOA) to provide IT professional services to Hong Kong government departments, effective from January 31, 2022, for a duration of 48 months[32].
连成科技集团(08635) - 2022 Q3 - 季度财报