Financial Performance - For the nine months ended September 30, 2023, the company's revenue was approximately HKD 106,861,000, a decrease of about 12.3% compared to the same period in 2022[4]. - The loss attributable to shareholders for the nine months ended September 30, 2023, was approximately HKD 7,795,000, a reduction of about 41.6% compared to the same period in 2022[4]. - For the three months ended September 30, 2023, the revenue was HKD 30,553,000, down from HKD 46,296,000 in the same period of 2022[5]. - The gross profit for the nine months ended September 30, 2023, was HKD 2,284,000, compared to HKD 1,059,000 for the same period in 2022[5]. - The company reported a basic and diluted loss per share of HKD 4.22 for the nine months ended September 30, 2023, compared to HKD 7.22 for the same period in 2022[5]. - The total comprehensive loss for the nine months ended September 30, 2023, was HKD 7,592,000, compared to HKD 15,937,000 for the same period in 2022[5]. - The company reported a net loss attributable to ordinary equity shareholders of HKD 7,795,000 for the nine months ended September 30, 2023, compared to a loss of HKD 13,356,000 for the same period in 2022, representing a 42.5% improvement[27]. - The group's revenue for the nine months ended September 30, 2023, decreased to approximately HKD 106,861,000, a decline of about 12.3% compared to HKD 121,788,000 in the same period last year[45]. - The group's gross profit for the nine months ended September 30, 2023, was approximately HKD 2,284,000, an increase of about 120% compared to HKD 1,059,000 in the same period last year, mainly due to improved gross margin from telecommunications services in Hong Kong[45]. - The group recorded a loss attributable to equity shareholders of approximately HKD 7,795,000, a decrease of about 41.6% from HKD 13,356,000 in the same period last year, primarily due to reduced trade receivables impairment losses and improved gross margin from telecommunications services[48]. Revenue Breakdown - Revenue from telecommunications services for the nine months ended September 30, 2023, was HKD 4,505,000, compared to HKD 1,090,000 in the same period of 2022[12]. - Revenue from distribution business for the nine months ended September 30, 2023, was HKD 102,356,000, down from HKD 120,698,000 in the same period of 2022[12]. - Revenue from telecommunications services for the nine months ended September 30, 2023, was approximately HKD 4,469,000, an increase of about 3.3 times compared to approximately HKD 1,046,000 in the same period last year[34]. - Distribution business in Hong Kong generated revenue of approximately HKD 62,457,000 for the nine months ended September 30, 2023, a 2.9% increase from approximately HKD 60,670,000 in the same period last year[36]. - Revenue from the distribution business in China was approximately HKD 7,597,000 for the nine months ended September 30, 2023, a decrease of about 6.3% from approximately HKD 8,107,000 in the same period last year[39]. - Revenue from mobile and data recharge distribution business in Singapore decreased by approximately 37.8% to about HKD 32,302,000 for the nine months ended September 30, 2023, compared to approximately HKD 51,921,000 in the same period last year[40]. Dividend and Shareholder Information - The company did not recommend any dividend payment for the nine months ended September 30, 2023[4]. - The company did not recommend any dividend for the nine months ended September 30, 2023, consistent with the previous year[24]. - The board did not recommend any dividend payment for the nine months ended September 30, 2023, consistent with the previous year[51]. - As of September 30, 2023, the company had a total of 104,437,500 shares owned by New Everich, with Mr. Li Jiancheng and Ms. Guo Jinghua holding 54% and 46% respectively[18]. - The weighted average number of ordinary shares outstanding remained constant at 184,875,000 shares for both the nine months ended September 30, 2023, and 2022[28]. Cost Management and Expenses - The company incurred a total employee cost of HKD 3,375,000 for the nine months ended September 30, 2023, slightly down from HKD 3,388,000 in the previous year[19]. - The total depreciation expense for property, plant, and equipment was HKD 1,128,000 for the nine months ended September 30, 2023, compared to HKD 1,165,000 for the same period in 2022[20]. - The group's administrative and other operating expenses were approximately HKD 10,148,000, a decrease of about 28.1% from HKD 14,119,000 in the previous year, mainly due to a significant reduction in trade receivables impairment losses[46]. - Financial costs for the nine months ended September 30, 2023, were approximately HKD 39,000, a decrease of about 7.1% from HKD 42,000 in the previous year, due to reduced interest on lease liabilities[48]. Corporate Governance and Compliance - The company has not adopted any new standards or interpretations that have not yet come into effect during the current accounting period[11]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited results for the nine months ending September 30, 2023, and confirmed compliance with applicable accounting standards[73]. - The company maintains a high level of corporate governance and has complied with the GEM Listing Rules during the review period[64]. - The company has established a code of conduct for securities trading, which has been confirmed as adhered to by all directors[66]. Business Development and Strategy - The company is actively negotiating with service providers to further reduce the unit cost of call time and mobile data, aiming to lower the selling price of prepaid products and enhance competitiveness[36]. - The company plans to expand its distribution of mobile phones and electronic products in Hong Kong, which has become a major source of revenue[36]. - The company has decided to discontinue the collaboration agreement related to 5G infrastructure development due to challenges in product commercialization and the early stage of 5G development in Hong Kong[37]. - The company is optimistic about medium to long-term business development and is closely monitoring market developments while expanding market channels[42]. - The company aims to transform its business development model to create new synergies across different business segments, focusing on Mobility as a Service (MaaS)[43]. - The company will continue to implement strict cost control measures to improve its business and financial performance while exploring new revenue sources[42]. Miscellaneous - The company recorded a net foreign exchange loss of HKD 712,000 for the nine months ended September 30, 2023, compared to a loss of HKD 131,000 for the same period in 2022[18]. - Other income for the nine months ended September 30, 2023, was approximately HKD 52,000, a decrease of about 80.6% from HKD 268,000 in the previous year, primarily due to a reduction in miscellaneous income from the government's employment support scheme[46]. - The company confirmed that its wholly-owned subsidiary has obtained exclusive licensing rights for RF-SIM intellectual property in Hong Kong and Macau[71]. - The company is involved in the research, development, production, and sale of RF-SIM products, as well as the licensing of RF-SIM rights outside of Hong Kong and Macau[70]. - There are no other individuals, apart from the directors and key executives, who hold 10% or more of the company's shares that require disclosure under the Securities and Futures Ordinance[60]. - The company did not grant or cancel any stock options under the stock option plan during the nine months ending September 30, 2023, and there were no unexercised stock options as of that date[62]. - The number of stock options available for grant at the beginning and end of the review period remained at 18,487,500[63]. - The company has not purchased, sold, or redeemed any of its shares during the nine months ending September 30, 2023[67]. - There were no significant acquisitions, disposals, or major investments during the review period[52]. - The group has provided a performance guarantee of HKD 200,000 to the Communications Authority, with bank deposits pledged as collateral[49][50].
直通电讯(08337) - 2023 Q3 - 季度财报