Financial Performance - The Group recorded a goodwill impairment loss of approximately HK$4,000,000 during the period, compared to no impairment in 2022 [4]. - The segment loss for the business division was approximately HK$3,473,000, an improvement from a loss of approximately HK$8,122,000 in 2022 [37]. - The Group's other losses amounted to approximately HK$7,811,000 for the period, down from a loss of approximately HK$9,694,000 in 2022 [38]. - The net loss attributable to owners of the Company for the Period was approximately HK$9,338,000, an improvement from a net loss of approximately HK$11,604,000 in the corresponding period of 2022 [4]. - For the nine months ended September 30, 2023, the total revenue was HK$64,018,000, a decrease of 16.8% compared to HK$76,850,000 for the same period in 2022 [72]. - The gross profit for the nine months was HK$45,623,000, down from HK$50,590,000 in the previous year, reflecting a gross margin of approximately 71.3% [72]. - The loss for the period was HK$7,868,000, compared to a loss of HK$7,946,000 for the same period in 2022, indicating a slight improvement in performance [72]. - The company reported a loss before tax of HK$6,893,000 for the nine months, compared to a loss of HK$5,719,000 in the same period last year [72]. - For the nine months ended September 30, 2023, the company reported a loss of HK$9,338,000 compared to a loss of HK$11,604,000 for the same period in 2022 [100]. - The total equity as of September 30, 2023, was HK$235,346,000, down from HK$241,733,000 as of September 30, 2022 [100]. - The company’s accumulated losses increased to HK$1,316,449,000 as of September 30, 2023, from HK$1,310,656,000 as of September 30, 2022 [100]. - The company reported a current tax expense of HK$975,000 for the nine months ended September 30, 2023, down from HK$2,227,000 in the same period of 2022, indicating a reduction of approximately 56.2% [135]. Revenue and Segment Analysis - For the nine months ended September 30, 2023, total revenue from external customers was HK$64,018,000, with the Software Business contributing HK$54,440,000 [145]. - The Software Business reported a segment profit of HK$3,423,000, while the Securities Investment Business incurred a loss of HK$3,473,000 [145]. - The Corporate Management Solutions and I.T. Contract Services Business generated revenue of HK$9,446,000, resulting in a segment profit of HK$462,000 [145]. - The B2C Online Sales Platform and B2B Product Trading Business had revenue of HK$132,000, with a segment loss of HK$194,000 [145]. - The total segment loss for the nine months ended 30 September 2023 was HK$6,893,000, compared to a loss of HK$26,491,000 for the same period in 2022 [145][189]. - The Group's overall loss for the period was HK$7,946,000, reflecting a decrease from the previous year's loss of HK$8,252,000 [189]. - The Group's financial performance indicates a significant improvement in segment results compared to the previous year, particularly in the Software Business [145][189]. Operational Strategies and Market Outlook - The expected average sales growth rate during the forecast period was determined based on an international research platform, with lower projected annual net profit margins due to increased development expenditure and market competition [7]. - The Board believes that the software business will continue to be a major source of revenue, focusing on developing new technologies and expanding sales channels in Europe and the US [23]. - The global economic outlook remains uncertain, with inflation pressures potentially impacting the business [20]. - The Group is focusing on product innovation, with new software versions expected to launch in late 2023, featuring updates and hard drive optimization [2]. - The Group is expanding its sales and distribution channels, particularly in emerging markets like the Asia-Pacific region, while implementing digital marketing campaigns [2]. - The Group continues to focus on enhancing its software offerings and expanding its e-commerce capabilities [145]. - Future strategies may include further investments in technology and potential market expansion initiatives [145]. - The Group's performance metrics suggest a need for ongoing assessment of resource allocation across its segments to optimize profitability [145]. Employee and Cost Management - As of September 30, 2023, the Group had 18 employees, down from 22 employees at the end of 2022 [17]. - The Group's treasury policy is conservative, with guidelines in place to monitor and control investment risk exposure [2]. - The Group is committed to careful cost control and increasing product variety in response to market challenges [6]. - The Board will continue to monitor the performance of the software business segment closely, focusing on prudent cost and credit risk management [6]. - Staff costs for the nine months ended September 30, 2023, amounted to HK$8,788,000, a decrease from HK$10,399,000 in the same period of 2022, reflecting a reduction of approximately 15.5% [120]. Research and Development - The Group's ongoing investment in research and development aims to enhance network security and improve user experience [2]. - The company continues to focus on research and development in personal computer performance software and mobile applications, aiming for market expansion and technological advancements [71]. Financial Reporting and Compliance - The company adopted all new and revised HKFRSs effective from January 1, 2023, with no significant changes to accounting policies or financial statement presentation [81]. - The company did not apply for any new HKFRSs that have been issued but are not yet effective as of January 1, 2023 [84]. - The company has not made any adjustments to the basic loss per share for the three months and nine months ended September 30, 2023, as there were no outstanding dilutive ordinary shares [139].
智易控股(08100) - 2023 Q3 - 季度财报