Financial Performance - For the nine months ended September 30, 2023, the company reported a total revenue of RMB 34,694,000, a decrease of 10.0% compared to RMB 38,626,000 for the same period in 2022[9] - The gross loss for the nine months ended September 30, 2023, was RMB 6,883,000, improving from a gross loss of RMB 19,474,000 in the same period of 2022[9] - The company incurred a total comprehensive loss of RMB 22,803,000 for the nine months ended September 30, 2023, compared to a loss of RMB 35,263,000 for the same period in 2022, indicating a reduction in losses by approximately 35.4%[9] - Basic and diluted loss per share for the nine months ended September 30, 2023, was RMB 1.73, an improvement from RMB 2.68 in the same period of 2022[9] - The company reported a total other income of RMB 984,000 for the nine months ended September 30, 2023, down from RMB 1,248,000 in the same period of 2022[9] - The net loss for the nine months ended September 30, 2023, was approximately RMB 22,803,000, a decrease of 35% compared to RMB 35,263,000 for the same period in 2022[25] Expenses and Cost Management - Distribution and selling expenses decreased to RMB 3,125,000 for the nine months ended September 30, 2023, from RMB 3,993,000 in the same period of 2022, reflecting a reduction of approximately 21.8%[9] - Management expenses remained relatively stable at RMB 11,467,000 for the nine months ended September 30, 2023, compared to RMB 11,001,000 in the same period of 2022[9] - Distribution and selling expenses decreased by 22% to approximately RMB 3,125,000 for the nine months ended September 30, 2023, compared to RMB 3,993,000 in the same period of 2022, due to effective cost-saving measures[25] - The cost of sales for the nine months ended September 30, 2023, was approximately RMB 41,577,000, down 28% from RMB 58,100,000 in the same period of 2022[24] Equity and Dividends - The company’s total equity as of September 30, 2023, was RMB 16,651,000, a decrease from RMB 51,980,000 as of January 1, 2022[10] - The company has not declared any dividends due to the accumulated losses exceeding the total equity[10] - The company did not recommend the payment of dividends for the nine months ended September 30, 2023, consistent with the previous year[22] Strategic Initiatives - The company continues to explore new strategies for market expansion and product development to enhance future performance[9] - The company plans to enhance marketing efforts while continuing to implement cost-saving measures, expecting further improvement in performance in the upcoming quarter[25] - Future product innovations will focus on new technologies, addressing customer pain points, and adapting to the competitive environment, while maintaining strict cost control and risk monitoring[30] Stock Options and Share Capital - As of September 30, 2023, Mr. Lin Hsueh-Hsin holds a total equity of 123,552,682 shares, representing 9.38% of the company's issued share capital[37] - Mr. Hsiung Ying holds a total equity of 18,410,322 shares, representing 1.40% of the company's issued share capital[37] - The company's stock option plan allows for the issuance of up to 81,184,000 shares, which is approximately 10% of the issued share capital as of the special general meeting date[39] - An additional authorization allows for the issuance of 86,443,000 shares under the stock option plan, also approximately 10% of the issued share capital as of the annual general meeting date[40] - The stock option plan was updated to allow for the issuance of 61,032,000 shares, representing about 6.95% of the issued share capital as of the annual general meeting date[42] - The total number of unexercised stock options as of September 30, 2023, is 65,413,599 shares, after accounting for 5,915,500 shares that have lapsed[49] Corporate Governance - The company has complied with the GEM Listing Rules regarding directors' securities transactions during the nine months ending September 30, 2023[56] - The Audit and Risk Management Committee reviewed the unaudited results for the nine months ending September 30, 2023, and confirmed compliance with applicable accounting standards[60] - There have been no competitive or conflict of interest activities involving directors or major shareholders during the nine months ending September 30, 2023[53] - The company is actively seeking a suitable candidate to fill the CEO position, which has been vacant since November 1, 2022[54] - The Compensation Committee is responsible for reviewing the remuneration policies for directors and senior management[57] - The Nomination Committee is tasked with developing nomination policies and reviewing the board diversity policy[58] Market and Regulatory Environment - The group reported a decline in bank revenues due to the implementation of cost-reduction policies, impacting the operational costs for the real economy and financial consumers[27] - The group aims to provide targeted solutions through products like SAAS, UPAY, and micro-cloud stores, enhancing customer service despite challenges in contract signing and payment collection in Q3[27] - The People's Bank of China's Document No. 259 emphasizes regulatory reforms in the acquiring market, with payment institutions required to complete non-standard merchant transformations by May and onboarding of new merchants by September 30, 2023[27] - The group is actively participating in the digital system upgrade projects, achieving joint certification from the General Software and Hardware Adaptation Certification Center, with two cooperative clients onboarded in Q3[28]
新利软件(08076) - 2023 Q3 - 季度财报