Financial Performance - The company reported unaudited revenue of HKD 6,749,000 for the three months ended June 30, 2023, a decrease of 50.4% compared to HKD 13,595,000 in the same period of 2022[6]. - The net loss for the period was HKD 11,848,000, compared to a profit of HKD 2,668,000 in the previous year, indicating a significant decline in performance[6]. - The company recorded a loss before tax of HKD 13,468,000, compared to a profit before tax of HKD 3,389,000 in the same quarter of the previous year[6]. - The basic loss per share was HKD 2.96, compared to earnings per share of HKD 0.67 in the prior year[6]. - The company reported a net loss attributable to owners of HKD 11,848,000 for the three months ended June 30, 2023, compared to a profit of HKD 2,668,000 in the same period of 2022[22]. - Basic loss per share for the period was HKD (2.96), compared to earnings of HKD 0.67 per share in the previous year[22]. - The group recorded a loss before tax of approximately HKD 13.5 million for the three months ended June 30, 2023, compared to a profit of approximately HKD 3.4 million for the same period in 2022[43]. - The loss attributable to owners of the company for the three months ended June 30, 2023, was approximately HKD 11.9 million, compared to a profit of approximately HKD 2.7 million for the same period in 2022[45]. Revenue Breakdown - Revenue from licensing and maintenance services was HKD 3,634,000, down 65.9% from HKD 10,649,000 in the previous year[12]. - Revenue from initial setup and customization services increased to HKD 3,115,000, up 5.7% from HKD 2,946,000 in the same period last year[12]. - The revenue from licensing and maintenance services decreased by approximately 66% to about HKD 3.6 million for the three months ended June 30, 2023, from approximately HKD 10.6 million in the same period in 2022[30]. - For the three months ended June 30, 2023, total revenue was HKD 6,749,000, a decrease of 50.4% compared to HKD 13,595,000 for the same period in 2022[12]. Expenses and Costs - Employee benefit expenses increased to HKD 14,343,000, up from HKD 4,906,000, reflecting a rise of 192.5% year-over-year[6]. - The company’s total expenses for the quarter included significant costs in employee benefits and financial asset impairments, totaling HKD 14,343,000 and HKD 1,758,000 respectively[6]. - Research and development expenses increased to approximately HKD 8.3 million for the three months ended June 30, 2023, from approximately HKD 3.9 million in the same period in 2022, largely due to the one-time employee bonus[35]. - Financial and contract asset impairment losses for the three months ended June 30, 2023, were approximately HKD 1.8 million, compared to approximately HKD 23,000 in the same period of 2022, largely due to the ongoing impact of the COVID-19 pandemic and rising U.S. interest rates[40]. Equity and Assets - Total equity as of June 30, 2023, was HKD 117,863,000, down from HKD 129,719,000 at the end of the previous quarter[7]. - The company’s non-current assets were located in Hong Kong and China as of June 30, 2023, with all revenue generated in Hong Kong[14]. Corporate Governance - The company has established an audit committee to oversee financial reporting and internal controls, consisting of three independent non-executive directors[72]. - There were no reported violations of the securities trading code by any directors during the relevant period[71]. - The company has confirmed compliance with the securities trading code by all directors throughout the reporting period[68]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the three months ended June 30, 2023[72]. Future Outlook and Strategy - The company aims to enhance its financial trading solutions and resource allocation software, focusing on market expansion and technological development[9]. - The company plans to establish a research and development center to enhance and upgrade existing financial trading solutions and explore new information technology solutions[28]. - The company aims to diversify its business and expand revenue sources, including entering the fintech market through the establishment of two Hong Kong-registered companies focused on precious metals and blockchain trading activities[28]. - The company is considering strategic acquisitions to enhance its product portfolio, targeting a completion by Q3 2023[76]. - Market expansion plans include entering two new regions, projected to increase market share by 5%[76]. Stock Options and Shareholding - As of June 30, 2023, there were no stock options available for exercise, compared to 29,200,000 options in 2022[55]. - A total of 1,600,000 stock options were granted under the 2020 stock option plan, with 800,000 options granted to a related party[56]. - The exercise price for the 2020 stock options was set at HKD 0.095 per share[56]. - The expected volatility for the 2020 stock options was 55.27% for the first batch and 54.01% for the second batch[57]. - The company’s chairman, Mr. Wai, holds a controlling interest of 210,000,000 shares, representing 52.5% of the issued shares[58]. - The CEO, Mr. Chung, holds a controlling interest of 90,000,000 shares, representing 22.5% of the issued shares[59].
连成科技集团(08635) - 2024 Q1 - 季度财报