Financial Performance - For the nine months ended September 30, 2023, the Group reported revenue of HK$45,147,000, a decrease of 60.8% compared to HK$115,306,000 for the same period in 2022[86]. - The Group's profit for the period was HK$25,477,000, compared to a profit of HK$11,402,000 for the same period in 2022, representing a significant increase[86]. - The total comprehensive income for the period attributable to shareholders was HK$25,477,000, compared to a loss of HK$26,690,000 for the same period in 2022[88]. - Basic and diluted earnings per share for the nine months ended September 30, 2023, were HK$0.48, compared to HK$0.22 for the same period in 2022[88]. - The Group reported an impairment loss on contract assets and accounts receivable of HK$65,285,000 for the nine months ended September 30, 2023, compared to HK$78,879,000 in the same period of 2022[86]. - The Group's administrative expenses for the nine months ended September 30, 2023, were HK$65,285,000, compared to HK$78,879,000 for the same period in 2022, reflecting a reduction in operational costs[86]. - The Group's total revenue for the three months ended September 30, 2023, was HK$10,316,000, down from HK$22,993,000 in the same period of 2022[97]. - The Group's deferred tax for the period was recorded as zero, indicating no tax liabilities incurred during this timeframe[100]. - The Group did not recommend the payment of an interim dividend for the nine months ended September 30, 2023, consistent with the previous year[101]. Investment and Asset Management - As of 30 September 2023, the Group recorded a fair value loss on financial assets at FVTPL of approximately HK$3,608,000 compared to a fair value gain of approximately HK$25,000 in 2022, primarily due to a decrease in the fair value of investments in listed equity securities in Hong Kong[1]. - The Group reported a fair value gain on financial assets at FVTOCI of approximately HK$28,238,000, a significant improvement from a fair value loss of approximately HK$40,993,000 in 2022, mainly attributed to the increase in the fair value of investments in LEO Group Co., Ltd.[1]. - The Group aims to optimize returns from its investment portfolios and create value for shareholders, maintaining its current investment portfolio unless strategic changes or opportunities arise[1]. - Following the loss of control over Jixiang on 31 May 2023, Jixiang was deconsolidated from the Group's financial statements, impacting the Group's overall asset management strategy[1]. - The Group's share of losses from associates changed from a profit of approximately HK$14,058,000 in 2022 to a loss of approximately HK$13,047,000 in 2023[116]. - The Group's financial results from Dynamic Indonesia Holdings ceased to be accounted for in its consolidated financial statements after the Walletku Disposal[135]. Shareholder Information - As of September 30, 2023, substantial shareholder Ng Ting Kit holds 670,280,000 shares, representing approximately 13.00% of the company[28]. - As of September 30, 2023, King's Group Capital Limited holds 288,800,000 shares, representing 5.60% of the total issued shares of 5,156,035,108[35][36]. - During the nine months ended September 30, 2023, the Group repurchased a total of 180,200,000 shares at an aggregate consideration of HK$17,076,460[52][53]. - A total of 180,200,000 shares were repurchased from May 22, 2023, to June 19, 2023, at a total consideration of HK$17,076,460[54]. - The highest price paid per share during the repurchase was HK$0.101, while the lowest was HK$0.083[54]. - The repurchased shares were subsequently cancelled on July 31, 2023[55]. - The maximum entitlement of each participant under the share option scheme is capped at 1% of the total issued shares in any 12-month period[43]. - No options were granted, exercised, cancelled, or lapsed under the existing share option scheme during the nine months ended September 30, 2023[49]. - As of September 30, 2023, there were no outstanding share options under the scheme[49]. Corporate Governance - The company has complied with the Corporate Governance Code provisions during the nine months ended September 30, 2023[60]. - The company is committed to good corporate governance practices to enhance transparency and disclosure quality[60]. - The company has adopted a code of conduct for Directors' securities transactions, ensuring compliance with GEM Listing Rules[59]. - The Board comprises one non-executive Director and two executive Directors, along with three independent non-executive Directors as of the report date[68]. - The Audit Committee, consisting of three independent non-executive Directors, reviewed the financial information for the nine months ended September 30, 2023[67]. - There were no changes in the information of Directors that required disclosure during the term of office[51]. Business Operations and Strategy - The group expects that the stabilization of the global pandemic and the recovery of the labor market will boost domestic consumption, although this may be offset by falling asset prices due to quantitative tightening measures[22]. - The group will continue to implement its business plans and strategies to enhance existing businesses and create value for shareholders[23]. - The Group's principal activities include hospitality services in Australia, network media services, money lending, and asset investments[115]. - The Group aims to regularly review and refine Balgownie's products and services to maintain market competitiveness[127]. - The Group plans to position Balgownie as an integrated resort destination, offering wellness retreats and event-hosting services, with a new restaurant capable of accommodating approximately 270 customers[126]. - A renovation agreement was entered into in July 2023 to improve Balgownie's facilities, which is expected to enhance competitiveness in the market[128]. - Balgownie has partnered with Endota Spa to enhance its offerings, with the day spa opened in June 2022, contributing to additional income through a revenue-sharing model[122]. - The new "Wellness Retreat" product/service launched in collaboration with the Spa Partner is expected to attract more customers to Balgownie[124]. Legal and Financial Liabilities - The outstanding principal amount of a loan to Jixiang is approximately RMB70,893,000 (equivalent to approximately HK$79,216,000), with additional claims including interest and liquidated damages totaling approximately RMB85,186,000 (equivalent to approximately HK$95,187,000) as of 18 November 2019[3]. - The total litigation costs related to the judgment amount to approximately RMB 473,000, with the borrower responsible for about RMB 465,000[9]. - The borrower is required to repay approximately RMB 71,000,000 in principal and related interest within ten days of the judgment, with total interest accrued of about RMB 1,000,000 from June 20, 2019, to September 16, 2019, and a 6% annual interest rate on the principal thereafter[9]. - The Group incurred finance costs of HK$5,081,000 for the nine months ended September 30, 2023, down from HK$6,910,000 in the same period of 2022, indicating improved cost management[86]. - The Group's revenue from other sources, including loan interest income and dividend income, totaled HK$4,215,000 for the nine months ended September 30, 2023, compared to HK$2,325,000 in 2022, reflecting a year-on-year increase[97]. - The Group recorded interest income of approximately HK$4,167,000 from its money lending business, an increase from approximately HK$2,306,000 in 2022, primarily due to an increase in loans granted[146]. - The Group will continue to monitor market conditions to develop its money lending business with prudent credit procedures[146].
恒泰裕集团(08081) - 2023 Q3 - 季度财报