Financial Performance - The group's unaudited consolidated revenue from continuing operations for the nine months ended September 30, 2023, was approximately HKD 16,376,000, an increase of about 0.8% compared to HKD 16,241,000 for the same period in 2022[4]. - The group recorded an unaudited consolidated loss attributable to owners of the company from continuing and discontinued operations of approximately HKD 5,103,000 for the nine months ended September 30, 2023, compared to HKD 7,768,000 for the same period in 2022[4]. - The basic and diluted loss per share from continuing and discontinued operations for the nine months ended September 30, 2023, was approximately HKD 0.11, compared to HKD 0.17 for the same period in 2022[4]. - The group's gross profit for the nine months ended September 30, 2023, was HKD 5,684,000, compared to HKD 2,604,000 for the same period in 2022, indicating a significant improvement[6]. - Administrative expenses for the nine months ended September 30, 2023, were HKD 9,520,000, down from HKD 13,763,000 in the same period of 2022, reflecting cost control measures[6]. - The group reported a pre-tax loss of HKD 5,496,000 for the nine months ended September 30, 2023, compared to a loss of HKD 10,690,000 for the same period in 2022, showing a reduction in losses[6]. - The total comprehensive expenses for the nine months ended September 30, 2023, amounted to HKD 5,863,000, down from HKD 12,918,000 in the same period of 2022, indicating improved financial performance[7]. - The group’s revenue for the three months ended September 30, 2023, was HKD 6,526,000, compared to HKD 4,954,000 for the same period in 2022, representing a year-over-year increase[6]. - The group’s loss attributable to owners from continuing operations for the three months ended September 30, 2023, was HKD 646,000, an improvement from HKD 2,188,000 in the same period of 2022[7]. - The total loss attributable to owners for the three months ended September 30, 2023, was HKD 707,000, compared to HKD 2,459,000 in the same period of 2022, showing a reduction of 71.3%[21]. Business Operations - The company has terminated its fintech services business, which did not generate any revenue for the nine months ended September 30, 2023, consistent with the previous year[28]. - The company has decided to terminate its lottery business due to ongoing operational losses, with no revenue generated for the nine months ended September 30, 2023[31]. - The company's smart retail business generated significant growth in system development and hardware sales, with revenue from these services increasing approximately 2.3 times from about RMB 900,000 in Q3 2022 to about RMB 2,100,000 in Q3 2023[27]. - The company's discontinued operations, including the lottery, fintech, and sports training businesses, incurred a loss attributable to owners of approximately HKD 259,000 for the nine months ended September 30, 2023, compared to HKD 787,000 in the same period of 2022[32]. Shareholder Information - As of September 30, 2023, the major shareholder 51 Credit Card holds 1,834,963,213 shares, representing approximately 39.16% of the issued shares[42]. - Mr. Wang Yonghua holds 365,000,000 shares, accounting for approximately 7.79% of the issued shares[44]. - The total number of issued shares as of September 30, 2023, is 4,686,048,381 shares[44]. - The company’s total issued shares remained at 4,686,048,381 as of September 30, 2023, with a par value of HKD 0.005 per share[35]. Governance and Compliance - The company has applied the principles of the corporate governance code as per GEM Listing Rules Appendix 15, with the exception of the separation of roles between the Chairman and the CEO, which is currently held by Mr. Sun[46]. - The company is in the process of identifying suitable candidates to fill the CEO vacancy to comply with the corporate governance code[47]. - The audit committee has reviewed the unaudited consolidated quarterly results for the nine months ended September 30, 2023, and confirmed compliance with applicable accounting standards and GEM Listing Rules[50]. Future Outlook - The company is focusing its resources on the smart retail business, which is expected to be a key area of growth moving forward[27]. - The group's business development will continue to be driven by its smart retail business, focusing on cloud services, system development, and hardware and software sales[36]. - The rise of artificial intelligence is expected to further boost demand for cloud services in the future[36]. - The company will adjust cost-saving measures to prepare for exploring new business opportunities in the industry[36]. - The company aims to leverage new opportunities arising from market developments and consumer needs[36]. - The company will continue to focus on the development of new products and technologies[36]. - The company is preparing for potential market expansion and mergers and acquisitions as part of its strategic initiatives[36]. Taxation - The company has not recognized any tax provision for Hong Kong profits tax due to no taxable profits generated in Hong Kong during the periods[14]. - The company has no significant unrecognized deferred tax liabilities as of September 30, 2023[15]. Dividends - The company did not recommend any dividend for the nine months ended September 30, 2023, consistent with the previous year[25]. Interest Expenses - The company incurred interest expenses of HKD 9,000 related to lease liabilities for the three months ended September 30, 2023, consistent with the same amount in 2022[12]. Financial Reporting Standards - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, which did not result in significant changes to the accounting policies or reported amounts[8]. - The company has begun evaluating the impact of new and revised Hong Kong Financial Reporting Standards but has not identified any significant effects on its operating performance and financial position[9].
中彩网通控股(08071) - 2023 Q3 - 季度财报