Financial Performance - For the nine months ended March 31, 2022, the group's revenue was approximately MYR 40.5 million, an increase of about 36.5% compared to the same period last year[8]. - The gross profit for the nine months ended March 31, 2022, increased by approximately 1.9% to about MYR 10.1 million[8]. - The company reported a loss per share of approximately 2.21 sen for the nine months ended March 31, 2022, compared to a profit of approximately 0.13 sen per share for the same period last year[8]. - The total comprehensive loss for the period was approximately MYR 13.25 million, compared to a profit of MYR 1.34 million for the same period last year[11]. - The cumulative profit for the period was reported at 5,190 thousand MYR, with a total comprehensive income of (13,543) thousand MYR[30]. - The company experienced a significant loss of (13,270) thousand MYR during the period, indicating challenges in financial performance[30]. - The company reported a pre-tax loss of 13,591 thousand MYR for the nine months ended March 31, 2022, compared to a profit of 1,970 thousand MYR in the previous year, indicating a significant downturn[46]. - For the nine months ended March 31, 2022, the company reported a loss attributable to equity holders of approximately 13.27 million MYR, compared to a profit of 761,000 MYR for the same period in 2021[69]. - The company reported a loss of approximately 13.6 million MYR for the nine months ended March 31, 2022, compared to a profit of about 0.8 million MYR for the same period in 2021, primarily due to decreased gross profit, increased selling expenses, and higher administrative and operational costs[104]. Revenue Breakdown - The company generated 37,623 thousand MYR from its primary market in Malaysia, while the revenue from China was 2,858 thousand MYR[39]. - The company’s revenue from sales and services for the three months ended March 31, 2022, was approximately MYR 12.78 million, compared to MYR 11.32 million for the same period last year[11]. - For the nine months ended March 31, 2022, the total reported segment revenue was 40,481 thousand MYR, compared to 29,646 thousand MYR for the same period in 2021, representing an increase of 36.5%[46]. - Revenue from network support services rose by approximately 190.3%, from about 4.3 million MYR to approximately 12.5 million MYR during the same period[91]. - E-commerce contributed approximately 2.0 million MYR, accounting for 4.9% of total revenue for the nine months ended March 31, 2022[88]. Expenses and Costs - The company’s administrative and other operating expenses for the nine months ended March 31, 2022, were approximately MYR 10.85 million, compared to MYR 13.18 million for the same period last year[11]. - Sales and service costs increased by approximately 54.0%, from about 19.7 million MYR to approximately 30.4 million MYR, primarily due to increased telecommunications and network ordering costs[92]. - Gross margin decreased from approximately 33.4% to about 25.0% due to rising costs of network equipment and hardware[93]. - Sales expenses surged by approximately 1469%, from about 0.7 million MYR to approximately 10.9 million MYR, mainly driven by marketing costs associated with the newly introduced e-commerce[98]. - Administrative and other operating expenses increased by approximately 79.6%, from about 7.3 million MYR to approximately 13.2 million MYR, largely due to higher employee costs and depreciation[99]. Tax and Compliance - The company incurred a tax expense of MYR 39, compared to a tax expense of MYR 1.13 million for the same period last year[11]. - The total tax expense for the nine months ended March 31, 2022, was (39) thousand MYR, compared to 1,125 thousand MYR in the same period of 2021, showing a reduction in tax liabilities[60]. - The estimated corporate income tax rate for the group's operations in Malaysia remains at 24% for the nine months ended March 31, 2022[68]. Strategic Initiatives - The company is primarily engaged in providing network support services, network connectivity services, and e-commerce solutions[23]. - The group is actively exploring opportunities to expand its business outside Malaysia, specifically targeting the Hong Kong and China markets[79]. - The group plans to invest more resources in the Chinese market to explore different opportunities and expand existing businesses, including network connectivity services and e-commerce[87]. - The company has established a strategic partnership with Hangzhou Super Technology Co., Ltd. to provide cloud computing and blockchain-based internet solutions from October 1, 2021, to December 31, 2024[82]. Corporate Governance - The audit committee consists of three independent non-executive directors, ensuring robust oversight of financial reporting and compliance with applicable accounting standards and GEM listing rules[123]. - The company has adopted and complied with the corporate governance code as per GEM listing rules for the nine months ending March 31, 2022, ensuring proper regulation of business activities and decision-making processes[125]. - The board believes that the dual role of the chairman and CEO held by Eric Tan is in the best interest of the company, ensuring effective management and business planning[128]. - The company has confirmed compliance with the prescribed trading standards for directors as per GEM listing rules during the nine months ending March 31, 2022[129]. Market Conditions - The ongoing COVID-19 pandemic has created significant challenges, but the company is focused on maintaining network availability and stability while adapting to new operational procedures[75]. - The group anticipates challenges in the coming years due to economic uncertainties but expects gradual recovery as countries adapt to living with COVID-19[87]. Shareholder Information - Major shareholder Mr. Yu holds a controlled entity interest of 416,250,000 shares, representing 69.38% of the company[108]. - Thrive Harvest Limited owns approximately 50.63% of the company's issued share capital with 303,750,000 shares, while Huitong Yingfu Investment Limited holds about 18.75% with 112,500,000 shares[115]. - The company has maintained a weighted average number of ordinary shares of 600 million for both the current and previous periods[69]. Future Outlook - The report includes forward-looking statements regarding the company's financial condition and operational performance, which are subject to known and unknown risks[135]. - The company has not provided specific future outlook or performance guidance in the available documents[120].
比特元宇宙(08645) - 2022 Q3 - 季度财报