Financial Performance - The company's revenue for the three months ended June 30, 2022, was HKD 13,595,000, representing a 15.2% increase from HKD 11,799,000 in the same period of 2021[6] - The profit attributable to the company's owners for the period was HKD 2,668,000, a decrease of 11.6% compared to HKD 3,017,000 in the previous year[6] - Basic and diluted earnings per share were both HKD 0.67, down from HKD 0.75 in the same period last year, reflecting a decline of 10.7%[6] - The company reported a pre-tax profit of HKD 3,389,000, slightly down from HKD 3,613,000, a decrease of 6.2%[6] - Profit before tax decreased by approximately 6% to about HKD 3.4 million, down from approximately HKD 3.6 million in the same period last year, mainly due to a decrease in fair value changes of financial assets[48] - Profit attributable to owners of the company decreased by approximately 12% to about HKD 2.7 million, down from approximately HKD 3.0 million in the same period last year[51] Income and Expenses - Other income increased significantly to HKD 806,000 from HKD 67,000, marking a growth of 1097.0%[6] - Employee benefit expenses rose to HKD 4,906,000 from HKD 4,095,000, indicating an increase of 19.8%[6] - The cost of internet services increased to HKD 816,000 from HKD 759,000, reflecting a rise of 7.5%[6] - Other expenses increased by approximately 21% to about HKD 1.8 million, up from approximately HKD 1.5 million in the same period last year, primarily due to increases in legal and professional fees[46] - Financing costs decreased by approximately 87% to about HKD 2,000, down from approximately HKD 15,000 in the same period last year, as the group repaid all bank loans in November 2021[47] - Income tax expense increased by approximately 21% to about HKD 721,000, compared to approximately HKD 596,000 in the same period last year, due to an increase in profit before tax[50] Equity and Shareholder Information - Total equity attributable to owners increased to HKD 127,471,000 as of June 30, 2022, up from HKD 124,801,000 at the end of the previous quarter[8] - The company did not declare an interim dividend for the three months ended June 30, 2022, compared to no dividend declared in the same period of 2021[28] - As of June 30, 2022, Mr. Wai Ming holds 210,000,000 shares, representing 52.5% of the issued shares through his controlled entity, Essential Strategy[63] - Mr. Chung has 90,000,000 shares, accounting for 22.5% of the issued shares through his controlled entity, Expert Wisdom[63] - The total shares held by Essential Strategy and its beneficial owner, Mr. Wai, is 210,000,000, which is 52.5% of the issued shares[65] - The total shares held by Expert Wisdom and its beneficial owner, Mr. Chung, is 90,000,000, which is 22.5% of the issued shares[65] Corporate Governance - The company is committed to high levels of corporate governance, adhering to the GEM Listing Rules and principles of good governance[53] - The company has established an audit committee in compliance with GEM Listing Rules, which reviews financial reporting and internal controls[73] - The audit committee consists of three independent non-executive directors, with Mr. Lo Chi Hung as the chairman[73] - The company confirms that all directors have complied with the securities trading code during the relevant period[67] - There are no known breaches of the securities trading code by any directors during the relevant period[68] - The company has not granted any rights to directors or senior management to acquire shares or securities during the relevant period[69] Future Outlook and Strategy - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[76] - The company is investing in R&D for new technologies, with an allocation of 10 million HKD for the upcoming year[76] - Market expansion plans include entering two new regions, aiming for a 20% increase in market share within those areas[76] - The company has identified potential acquisition targets to enhance its product offerings and market presence[76] - A new product line is expected to launch in Q3 2022, anticipated to contribute an additional 5 million HKD in revenue[76] - The company has implemented a new strategy focusing on digital transformation to improve operational efficiency[76] Stock Options and Share-Based Payments - The company adopted a share option scheme to incentivize and reward contributions from eligible participants[54] - A total of 36,400,000 stock options were granted under the 2019 stock option plan, with 50% vesting in 2020 and the other 50% in 2021[55] - As of June 30, 2022, 29,200,000 stock options were exercisable, an increase from 16,200,000 in the previous year[56] - The fair value of the stock options granted in 2019 was calculated using the Black-Scholes model, with expected volatility of 55.89% for the first batch and 56.23% for the second batch[56] - A total of 1,600,000 stock options were granted under the 2020 stock option plan, with 50% vesting in 2021 and the other 50% in 2022[57] - As of June 30, 2022, 400,000 stock options from the 2020 plan were exercisable, compared to none in the previous year[60] - The fair value of the stock options granted in 2020 was also calculated using the Black-Scholes model, with expected volatility of 55.27% for the first batch and 54.01% for the second batch[59] - The company recognized approximately HKD 2,000 in share-based payment expenses for the 2020 stock options during the three months ended June 30, 2022[59] - The exercise price for the 2019 stock options was set at HKD 0.178 per share, while the exercise price for the 2020 stock options was HKD 0.095 per share[56][59] - The expected term for the 2019 stock options was 5.5 years for the first batch and 6.0 years for the second batch[56] - The company had no share-based payment expenses recorded for the 2019 stock options during the three months ended June 30, 2022[56] Market and Operational Performance - The company operates primarily in Hong Kong, with all revenue generated in this region for the three months ended June 30, 2022[16] - Major customers contributed significantly to total sales, with Customer A generating HKD 1,974,000 and Customer D generating HKD 1,596,000 in the three months ended June 30, 2022[18] - The company reported a significant increase in user data, with a growth rate of 25% year-over-year in active users[76] - The company reported a net profit margin of 12% for the last quarter, reflecting improved operational performance[76]
连成科技集团(08635) - 2023 Q1 - 季度财报