Financial Performance - The Group reported revenue of HK$60,123,000 for the three months ended September 30, 2023, representing an increase from HK$45,000 in the same period of 2022[8]. - The cost of sales increased significantly to HK$66,956,000, leading to a gross loss of HK$6,833,000 compared to a gross profit of HK$21,000 in the prior year[8]. - Operating loss for the period was HK$10,426,000, compared to an operating loss of HK$6,888,000 in the same period last year[8]. - The loss attributable to owners of the Company for the period was HK$10,597,000, compared to a loss of HK$6,924,000 in the previous year[8]. - Total comprehensive loss for the period attributable to owners of the Company was HK$11,986,000, compared to a total comprehensive loss of HK$5,130,000 in the prior year[8]. - Basic loss per share was HK$2.09 for the current period, compared to HK$1.42 for the same period in 2022[8]. - For the three months ended September 30, 2023, the loss attributable to owners of the Company was HK$10,597,000, compared to a loss of HK$6,924,000 for the same period in 2022, representing an increase in loss of approximately 53.5%[35]. - For the three months ended September 30, 2023, the loss attributable to equity holders was approximately HK$10.6 million, an increase of 53.6% compared to a loss of HK$6.9 million for the same period in 2022[58][60][73]. Revenue Sources - Revenue for the period primarily derived from internet advertising agency services and digitalization empowerment platform business[21]. - The Group generated revenue of HK$60.1 million from internet business during the three months ended September 30, 2023, impacted by local government anti-pandemic policies and economic conditions[59][61]. - As of the end of September 2023, the internet advertising and game business generated operating revenue of approximately HK$60 million[45]. Expenses and Costs - The Group's administrative expenses decreased to HK$3,479,000 from HK$6,961,000 in the previous year, indicating a reduction in operational costs[8]. - Selling and distribution expenses increased to approximately HK$113,000 for the three months ended September 30, 2023, compared to HK$50,000 in the previous year, mainly due to marketing efforts for the promotion machine business[65][68]. - The cost of sales for the same period was HK$67 million, primarily related to the provision of internet services[63][66]. Financial Position - As of September 30, 2023, the total equity attributable to owners of the Company was HK$1,511,000, a decrease from HK$13,497,000 as of July 1, 2023[9]. - The Group's cash and bank balances as of September 30, 2023, totaled approximately HK$27.5 million, down from HK$30.8 million as of June 30, 2023, primarily due to outstanding receivables[80][83]. - Outstanding borrowings as of September 30, 2023, remained at HK$4.7 million, unchanged from June 30, 2023[81]. - As of September 30, 2023, the Group had no significant capital commitments or contingent liabilities, consistent with June 30, 2023[89][93]. Governance and Compliance - The audit committee has reviewed the unaudited consolidated results for the three months ended September 30, 2023, prior to recommending them to the board for approval[115]. - The consolidated results for the three months ended September 30, 2023, have not been audited by the auditors of the company[115]. - The audit committee comprises independent non-executive directors, ensuring compliance with GEM Listing Rules[114]. - All directors confirmed compliance with the required standards set out in the Model Code and the Code of Conduct during the three months ended September 30, 2023[109]. - The company has adopted a code of conduct for securities transactions that meets or exceeds the required standards[108]. - The company continues to maintain a strong governance structure with an independent audit committee[114]. Business Development - The Group has invested in the research and development of a digitalization empowerment platform, which includes the "Million Stars Promotion Machine," an intelligent advertising device with product vending capabilities[46]. - The "Million Stars Promotion Machine" has been well received in the market since its launch, providing convenience for customers with mobile payment options[47]. - In June 2023, the Group launched a new generation of the "Million Stars Promotion Machine," integrating cashier, sales, inventory, and marketing management functions, aimed at various merchandising stores[53]. - The Group's internet advertising and digitalization empowerment platform businesses are expected to continue developing steadily with the recovery of the Chinese economy[54]. - The Group is committed to product development and business expansion, consolidating existing businesses while seeking new opportunities[54]. Shareholder Information - The interests of substantial shareholders as of September 30, 2023, included 54 million shares (10.63%) held by 7Road Holdings Limited and 50 million shares (9.84%) held by Shanghai Hutong Investments Centre[101]. - The Company had 508 million shares issued as of September 30, 2023[97]. - Directors and chief executives held approximately 7.56% and 1.58% of the Company's shares, respectively, as of September 30, 2023[97]. - There were no known competing businesses or conflicts of interest involving the Directors or controlling shareholders as of September 30, 2023[103][104]. - There were no significant changes in shareholdings reported during the period[1]. Dividend and Earnings - The Board does not recommend the payment of a dividend for the three months ended September 30, 2023[36]. - No diluted earnings/(loss) per share were presented for the periods ended September 30, 2023, and September 30, 2022, as there were no potential ordinary shares in issue[37]. Risk Management - The Group's financial management strategy aims to minimize market risks, including foreign currency and interest rate risks, with no significant adverse effects reported during the period[85][87]. - The Group's treasury activities are centralized, with cash generally deposited in banks in Hong Kong and Mainland China[79][86]. - The Group's risk management policy aims to minimize the adverse impact of foreign currency and interest rate risks on financial performance, with negligible foreign exchange risk noted as of September 30, 2023[91]. - As of September 30, 2023, the Group had no pledged bank deposits securing bank financing[92].
瓦普思瑞元宇宙(08093) - 2024 Q1 - 季度财报