Financial Performance - For the three months ended September 30, 2023, the Group reported revenue of HK$11,213,000, a decrease of 19.4% compared to HK$13,909,000 for the same period in 2022[12]. - Gross profit for the three months ended September 30, 2023, was HK$6,013,000, down 35.5% from HK$9,273,000 in the prior year[12]. - The loss for the period attributable to owners of the Company was HK$5,950,000, compared to a loss of HK$9,329,000 in the same quarter of 2022, representing a 36.5% improvement[13]. - Total comprehensive income for the period was a loss of HK$6,137,000, compared to a loss of HK$9,690,000 in the prior year, indicating a 36.5% reduction in losses[12]. - For the nine months ended September 30, 2023, the Group's revenue was HK$40,482,000, down 6.0% from HK$43,105,000 in the same period of 2022[12]. - The loss before tax for the nine months ended September 30, 2023, was HK$15,658,000, slightly higher than the loss of HK$15,582,000 in the previous year[12]. - Basic loss per share for the three months ended September 30, 2023, was HK(4.720) cents, compared to HK(7.400) cents for the same period in 2022[13]. - The Group incurred administrative expenses of HK$11,581,000 for the three months ended September 30, 2023, a decrease from HK$13,100,000 in the prior year[12]. - Other income for the three months ended September 30, 2023, was HK$131,000, down from HK$852,000 in the same quarter of 2022[12]. - The Group's impairment loss on loan and interest receivables for the three months ended September 30, 2023, was HK$233,000, compared to HK$258,000 in the same period of 2022[12]. Revenue Breakdown - Revenue for the nine months ended 30 September 2023 was HK$39,669,000, a decrease of 5.8% compared to HK$42,072,000 for the same period in 2022[28]. - Revenue from sales of technology software systems for the nine months ended 30 September 2023 was HK$3,116,000, down 26.5% from HK$4,240,000 in 2022[28]. - Revenue from system customization and network support increased to HK$9,797,000 for the nine months ended 30 September 2023, up 46.5% from HK$6,670,000 in 2022[28]. - Software licensing fee revenue decreased to HK$16,155,000 for the nine months ended 30 September 2023, down 19.4% from HK$20,095,000 in 2022[28]. - Interest income on loan financing for the nine months ended 30 September 2023 was HK$813,000, a decrease of 21.3% compared to HK$1,033,000 in 2022[30]. - Other income for the nine months ended 30 September 2023 totaled HK$162,000, a decrease of 89.3% from HK$1,517,000 in 2022[30]. - The revenue from the financial trading software solutions business amounted to approximately HK$39,668,000 for the nine months ended September 30, 2023, representing a decrease of approximately 5.7% compared to HK$42,070,000 for the same period in 2022[57]. - Revenue from the money lending business division was approximately HK$813,000, a decrease of approximately 21.3% from HK$1,033,000 in the same period last year[65]. Expenses and Costs - The Group recorded a provision for impairment loss on loan and interest receivables of approximately HK$1,451,000, up from approximately HK$953,000 in the same period last year[65]. - The total cost of sales for the nine months ended 30 September 2023 included staff costs of HK$12,042,000, compared to HK$11,548,000 in the same period of 2022, representing a 4.3% increase[45]. - Staff costs for the nine months ended 30 September 2023 totaled HK$31,524,000, up from HK$30,165,000 in the same period of 2022, indicating a 4.5% increase[44]. - Administrative expenses for the period amounted to approximately HK$38,112,000, an increase of approximately 1.5% compared to HK$37,548,000 for the same period in 2022[92]. Taxation and Compliance - For the nine months ended 30 September 2023, the income tax expense was HK$1,016,000, a decrease from HK$1,844,000 in the same period of 2022[37]. - The current tax charge for the period for the three months ended 30 September 2023 was HK$34,000, significantly lower than HK$659,000 in the same period of 2022[37]. - There was no share of tax attributable to associates or joint ventures for the nine months ended 30 September 2023, consistent with the same period in 2022[41]. - The Hong Kong profits tax rate for the first HK$2 million of assessable profits remained at 8.25% for the nine months ended 30 September 2023, unchanged from the previous year[38]. Strategic Initiatives - The Group plans to diversify its provision of IT services to improve sales performance in the internet financial platforms services division, which generated no revenue during the period[63]. - A strategic cooperation framework agreement was signed in May 2023 to develop an IoT-based electronic trading platform for agricultural products[64]. - The Group aims to maintain competitiveness by improving operational efficiency and rationalizing costs in the financial trading software solutions business[62]. - The Group plans to establish a research and development center in Qianhai, Shenzhen, to enhance innovation and service quality, leveraging local government support and talent[122][125]. - The Group plans to diversify its offerings in the information technology and internet finance platform services to enhance competitiveness[67]. Market Conditions - The Hong Kong economy continued to recover in the third quarter of 2023, driven by inbound tourism and private consumption, although the momentum has softened compared to the first half of the year[55]. - The Group will continue to monitor the economic environment and support private consumption through its services[56]. - The Group expects the Hong Kong stock market to remain volatile, which may impact the performance of its securities investments[78]. - The money lending business will adopt a prudent approach in granting new loans due to the instability of the financial market and economic environment in Hong Kong[123][126]. Shareholder Information - As of September 30, 2023, Ms. Tin Yat Yu Carol holds 36,467,000 shares, representing approximately 28.93% of the Company's total issued shares[130]. - The total number of issued shares of the Company as of September 30, 2023, is 126,058,234 shares, which is used for calculating the approximate percentage shareholdings[131]. - Mr. Chan Sek Keung Ringo holds 6,168,000 shares, representing approximately 4.89% of the Company's total shares[136]. - An additional 600,000 shares are held by Woodstock Management Limited, which is wholly owned by Mr. Chan Sek Keung Ringo, contributing to his overall interest in the Company[138]. Corporate Governance - The Company complied with all applicable code provisions in the Corporate Governance Code during the reporting period[141]. - The Audit Committee reviewed the unaudited condensed consolidated results and confirmed compliance with applicable accounting standards[155]. - The Company has established an Audit Committee to monitor financial reporting and internal control systems[153]. - The Audit Committee was established on September 10, 2013, and consists of three independent non-executive directors[158]. - The board of directors includes five executive directors and three independent non-executive directors as of the report date[158].
汇财金融投资(08018) - 2023 Q3 - 季度财报