mF International Limited Announces First Six Months of Fiscal Year 2024 Financial Results
mF International announced its unaudited financial results for the first six months of FY 2024, ending June 30, 2024. The company reported a revenue of HK$12.5 million (US$1.6 million), down 11.9% from the same period last year. Gross profit was HK$5.3 million (US$0.7 million), a 27.2% decrease. The company faced a net loss of HK$5.5 million (US$0.7 million), compared to a net income of HK$2.2 million last year. Basic and diluted loss per share was HK$0.45 (US$0.06).
Revenue from subscriptions increased by 7.3%, hosting, support, and maintenance services grew by 17.7%, and white label services rose by 55.6%. However, revenue from initial setup, installation, customization, liquidity services, and quotes/news/package subscriptions declined. Total operating expenses surged by 147% to HK$11.6 million (US$1.5 million), driven by higher employee compensation, legal fees, and other costs. As of June 30, 2024, the company had HK$32.8 million (US$4.2 million) in cash and restricted cash.
mF International ha annunciato i risultati finanziari non verificati per i primi sei mesi dell'anno fiscale 2024, terminati il 30 giugno 2024. L'azienda ha registrato un fatturato di HK$12.5 milioni (US$1.6 milioni), in calo dell'11.9% rispetto allo stesso periodo dell'anno scorso. Il profitto lordo è stato di HK$5.3 milioni (US$0.7 milioni), con una diminuzione del 27.2%. L'azienda ha subito una perdita netta di HK$5.5 milioni (US$0.7 milioni), rispetto a un utile netto di HK$2.2 milioni dell'anno precedente. La perdita per azione, sia base che diluita, è stata di HK$0.45 (US$0.06).
I ricavi da abbonamenti sono aumentati del 7.3%, i servizi di hosting, supporto e manutenzione sono cresciuti del 17.7%, e i servizi etichetta bianca sono aumentati del 55.6%. Tuttavia, i ricavi da installazione iniziale, personalizzazione, servizi di liquidità e abbonamenti a quotazioni/notizie/pacchetti sono diminuiti. Le spese operative totali sono schizzate del 147% a HK$11.6 milioni (US$1.5 milioni), a causa di un aumento dei compensi per i dipendenti, delle spese legali e di altri costi. Al 30 giugno 2024, l'azienda aveva HK$32.8 milioni (US$4.2 milioni) in contante e contante vincolato.
mF International anunció sus resultados financieros no auditados para los primeros seis meses del año fiscal 2024, que concluyó el 30 de junio de 2024. La compañía reportó un ingreso de HK$12.5 millones (US$1.6 millones), una caída del 11.9% en comparación con el mismo período del año pasado. El beneficio bruto fue de HK$5.3 millones (US$0.7 millones), lo que representa una disminución del 27.2%. La compañía enfrentó una pérdida neta de HK$5.5 millones (US$0.7 millones), en comparación con un ingreso neto de HK$2.2 millones el año anterior. La pérdida básica y diluida por acción fue de HK$0.45 (US$0.06).
Los ingresos por suscripciones aumentaron un 7.3%, los servicios de alojamiento, soporte y mantenimiento crecieron un 17.7%, y los servicios de etiqueta blanca se elevaron un 55.6%. Sin embargo, los ingresos por configuración inicial, instalación, personalización, servicios de liquidez y suscripciones a cotizaciones/noticias/paquetes disminuyeron. Los gastos operativos totales se dispararon un 147% hasta HK$11.6 millones (US$1.5 millones), impulsados por un aumento en la compensación a empleados, honorarios legales y otros costos. Al 30 de junio de 2024, la compañía tenía HK$32.8 millones (US$4.2 millones) en efectivo y efectivo restringido.
mF International은 2024 회계연도 상반기(2024년 6월 30일 종료) 비감사 재무 결과를 발표했습니다. 회사는 HK$12.5백만(미화 1.6백만)의 수익을 보고했으며, 이는 작년 같은 기간에 비해 11.9% 감소한 수치입니다. 총 수익은 HK$5.3백만(미화 0.7백만)으로 27.2% 감소했습니다. 회사는 HK$5.5백만(미화 0.7백만)의 순손실을 기록했으며, 이는 작년의 순이익 HK$2.2백만에 비해 큰 차이입니다. 기본 및 희석 손실은 주당 HK$0.45(미화 0.06)였습니다.
구독에서의 수익은 7.3% 증가했으며, 호스팅, 지원 및 유지 관리 서비스는 17.7% 성장했고, 화이트 라벨 서비스는 55.6% 증가했습니다. 그러나 초기 설정, 설치, 사용자 맞춤형 서비스, 유동성 서비스 및 인용/뉴스/패키지 구독에서의 수익은 감소했습니다. 총 운영 비용은 HK$11.6백만(미화 1.5백만)으로 147% 급증했으며, 이는 높은 직원 보상, 법률 비용 및 기타 비용이 영향을 미쳤기 때문입니다. 2024년 6월 30일 기준으로 회사는 HK$32.8백만(미화 4.2백만)의 현금 및 제한된 현금을 보유하고 있었습니다.
mF International a annoncé ses résultats financiers non audités pour les six premiers mois de l'exercice 2024, se terminant le 30 juin 2024. La société a déclaré un chiffre d'affaires de HK$12,5 millions (US$1,6 million), en baisse de 11,9 % par rapport à la même période l'année dernière. Le bénéfice brut était de HK$5,3 millions (US$0,7 million), soit une diminution de 27,2 %. L'entreprise a enregistré une perte nette de HK$5,5 millions (US$0,7 million), contre un bénéfice net de HK$2,2 millions l'année précédente. La perte de base et diluée par action s'élevait à HK$0,45 (US$0,06).
Les revenus provenant des abonnements ont augmenté de 7,3 %, les services d'hébergement, de support et de maintenance ont progressé de 17,7 %, et les services de marque blanche ont augmenté de 55,6 %. Cependant, les revenus provenant de la configuration initiale, de l'installation, de la personnalisation, des services de liquidité et des abonnements à des devis/nouvelles/packaging ont diminué. Les dépenses d'exploitation totales ont augmenté de 147 % pour atteindre HK$11,6 millions (US$1,5 million), en raison des augmentations de la rémunération des employés, des frais juridiques et d'autres coûts. Au 30 juin 2024, l'entreprise détenait HK$32,8 millions (US$4,2 millions) en cash et cash restreint.
mF International gab seine ungeprüften finanziellen Ergebnisse für die ersten sechs Monate des Geschäftsjahres 2024 bekannt, die am 30. Juni 2024 endeten. Das Unternehmen meldete einen Umsatz von HK$12,5 Millionen (US$1,6 Millionen), was einem Rückgang von 11,9% im Vergleich zum gleichen Zeitraum des Vorjahres entspricht. Der Bruttogewinn betrug HK$5,3 Millionen (US$0,7 Millionen), was einem Rückgang von 27,2% entspricht. Das Unternehmen verzeichnete einen Nettoverlust von HK$5,5 Millionen (US$0,7 Millionen), verglichen mit einem Nettogewinn von HK$2,2 Millionen im letzten Jahr. Der Verlust pro Aktie, sowohl einfach als auch verwässert, betrug HK$0,45 (US$0,06).
Die Einnahmen aus Abonnements stiegen um 7,3%, Hosting-, Support- und Wartungsdienstleistungen wuchsen um 17,7%, und die White-Label-Dienstleistungen stiegen um 55,6%. Die Einnahmen aus der anfänglichen Einrichtung, Installation, Anpassung, Liquiditätsdiensten und abonnements von Angeboten/Nachrichten/Paketen jedoch sanken. Die Gesamtausgaben stiegen um 147% auf HK$11,6 Millionen (US$1,5 Millionen), bedingt durch höhere Mitarbeitervergütungen, Rechtskosten und andere Aufwendungen. Zum 30. Juni 2024 hatte das Unternehmen HK$32,8 Millionen (US$4,2 Millionen) an Bargeld und eingeschränktem Bargeld.
- None.
- Revenue decreased by 11.9%.
- Gross profit dropped by 27.2%.
- Net loss of HK$5.5 million compared to net income of HK$2.2 million last year.
- Basic and diluted loss per share was HK$0.45.
- Revenue from initial setup, installation, and customization services fell by 69.8%.
- Revenue from liquidity services decreased by 20.4%.
- Revenue from quotes/news/package subscriptions declined by 10.4%.
- Total operating expenses increased by 147%.
- General and administrative expenses more than doubled.
Insights
mF International's financial results for H1 2024 reveal significant challenges. Revenue declined by
Notably, operating expenses surged by
While the company's cash position improved to
The shift in revenue mix towards subscriptions and white-label services indicates a potential pivot in business strategy, but it's yet to offset the decline in other areas. Investors should closely monitor whether the
The financial trading solution market is experiencing a shift, as evidenced by mF International's results. The
The company's expansion efforts in China and Malaysia through consulting agreements are strategic, targeting high-growth markets in Asia. This move could diversify their customer base and potentially offset the current revenue challenges. However, the effectiveness of these investments remains to be seen in a competitive fintech landscape.
The increase in hosting and maintenance services revenue aligns with industry trends towards cloud-based and SaaS models in financial technology. This shift could provide more stable, long-term revenue if mF International can effectively scale these offerings.
Investors should watch for signs of market share growth and whether the company can leverage its Nasdaq listing to attract international clients and partners, potentially opening new revenue streams in a globally expanding fintech market.
Mr. Chi Weng Tam, Executive Director and Chief Executive Officer of the Company, commented, "Despite facing certain revenue challenges, we have demonstrated resilience and adaptability in our business model. Our growth in subscriptions, hosting, support, maintenance, and white-label services reflects the increasing reliance of clients on our trading platforms and the demand for flexible solutions that meet varied needs. This highlights our efforts in retaining customers and diversifying our service offerings in a challenging environment. Additionally, we continue to make substantial investments to expand our business. In May 2024, we entered into two business development and marketing consulting agreements totaling
First Six Months of Fiscal Year 2024 Financial Highlights
- Revenue was
HK ($12.5 million US ) for the six months ended June 30, 2024, compared to$1.6 million HK for the same period last year.$14.2 million - Gross profit was HK
$5.3 million (US ) for the six months ended June 30, 2024, compared to$0.7 million HK for the same period last year.$7.3 million - Net loss was HK
$5.5 million (US ) for the six months ended June 30, 2024, compared to net income of$0.7 million HK for the same period last year.$2.2 million - Basic and diluted loss per share was HK
$0.45 (US ) for the six months ended June 30, 2024, compared to basic and diluted earnings per share of$0.06 HK for the same period last year.$0.19
First Six Months of Fiscal Year 2024 Financial Results
Revenue
Revenue was
- Revenue from initial set up, installation and customization services was
HK ($1.1 million US ) for the six months ended June 30, 2024, which decreased by$0.1 million 69.8% fromHK for the same period last year. The decrease was mainly due to the decreased demand for customization services.$3.7 million - Revenue from subscriptions was
HK ($5.4 million US ) for the six months ended June 30, 2024, which increased by$0.7 million 7.3% fromHK for the same period last year. The increase in subscription revenue represented an increase in the access right to the Company's trading platforms granted to those customers to whom it had delivered the initial set up or customization of the trading platforms in the prior year.$5.0 million
- Revenue from hosting, support and maintenance services was
HK ($2.3 million US ) for the six months ended June 30, 2024, which increased by$0.3 million 17.7% fromHK for the same period last year. The increase in this revenue stream aligned with the increment in licensing revenue.$2.0 million - Revenue from liquidity services was
HK ($1.0 million US ) for the six months ended June 30, 2024, which decreased by$0.1 million 20.4% fromHK for the same period last year. The decrease was mainly due to a lower transaction volume.$1.2 million - Revenue from white label services was
HK ($1.5 million US ) for the six months ended June 30, 2024, which increased by$0.2 million 55.6% fromHK for the same period last year. The increase was mainly due to the growth in the number of customers in this revenue stream.$1.0 million - Revenue from quotes/news/package subscription services was
HK ($1.2 million US ) for the six months ended June 30, 2024, which decreased by$0.2 million 10.4% fromHK for the same period last year. The decrease was driven by the type of data feed service package subscribed by the customers. During the six months ended June 30, 2024, the Company's customers subscribed to the basic data feed service instead of premium service package.$1.3 million
Cost of Revenue
Cost of revenue was
Gross Profit
Gross profit was
Operating Expenses
Total operating expenses were
- Selling and marketing expenses were
HK ($0.9 million US ) for the six months ended June 30, 2024, compared to$0.1 million HK for the same period last year, mainly because the Company contracted two consultants to assist it in exploring new customers and planning its business strategy, and marketing and promotional activities.$0.08 million
- Research and development expenses were HK
$0.1 million (US ) for the six months ended June 30, 2024, from nil for the same period last year, as the Company intends to expand its software development team's software development capacity to continue to improve existing functions and develop new functions.$0.01 million - General and administrative expenses were HK
$10.6 million (US ) for the six months ended June 30, 2024, compared to$1.4 million HK for the same period last year, because of a surge in employee compensation and benefits of$4.6 million HK , insurance expense of$1.8 million HK , legal and professional fees of$0.4 million HK and travel expenses by$3.7 million HK . During the six months ended June 30, 2024, the Company offered an appreciation bonus and compensation increase to its executives and staff. The Company also incurred additional insurance coverage cost for its directors and executives as well as audit fees, legal fees, transfer agent fees, investor relations, printing, and advisory fees subsequent to the completion of its initial public offering. Its travel expenses also increased during the six months ended June 30, 2024 as its executives travelled for conferences and business meetings.$0.1 million
Total Other Expense
Total other expenses, net was
Net Income (Loss)
Net loss was
Basic and Diluted Earnings (Loss) per Share
Basic and diluted loss per share was
Financial Condition
As of June 30, 2024, the Company had cash and restricted cash of
Net cash used in operating activities was
Net cash used in investing activity was
Net cash provided by financing activities was
Exchange Rate Information
Translations of amounts from HK$ into US$ as of and for the years ended June 30, 2024 are solely for the convenience of the reader and were calculated at the noon buying rate of
About mF International Limited
mF International Limited is a
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "views," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar words. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the
For investor and media inquiries, please contact:
mF International Limited
Investor Relations Department
Email: ir@m-finance.net
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
mF International Limited and Subsidiaries | ||||||||||||
Unaudited Condensed Consolidated Balance Sheets | ||||||||||||
As of December 31, 2023 and June 30, 2024 | ||||||||||||
December 31, 2023 | June 30, 2024 | June 30, 2024 | ||||||||||
HK$ | HK$ | US$ | ||||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash | 6,810,418 | 30,506,308 | 3,906,908 | |||||||||
Restricted cash | - | 2,340,000 | 299,681 | |||||||||
Accounts receivable, net | 2,579,475 | 1,112,573 | 142,486 | |||||||||
Prepaid expenses, current | 371,143 | 12,922,493 | 1,654,969 | |||||||||
Deposits and other current assets | - | 403,250 | 51,644 | |||||||||
Investment at fair value | 343,862 | 343,862 | 44,038 | |||||||||
Total current assets | 10,104,898 | 47,628,486 | 6,099,726 | |||||||||
Non-current assets | ||||||||||||
Property and equipment, net | 36,511 | 28,356 | 3,632 | |||||||||
Intangible assets, net | 15,336,589 | 16,584,716 | 2,123,986 | |||||||||
Operating lease right-of-use assets | 2,957,515 | 2,258,388 | 289,229 | |||||||||
Prepaid expenses, non-current | - | 5,594,226 | 716,446 | |||||||||
Long term deposit | 431,972 | 431,972 | 55,322 | |||||||||
Deferred initial public offering ("IPO") costs | 4,984,334 | - | - | |||||||||
Total non-current assets | 23,746,921 | 24,897,658 | 3,188,615 | |||||||||
Total assets | 33,851,819 | 72,526,144 | 9,288,341 | |||||||||
Liabilities and Shareholders' Equity | ||||||||||||
Current liabilities | ||||||||||||
Accrued expenses and other payables | 1,782,265 | 376,731 | 48,248 | |||||||||
Amount due to a related party | 306,110 | 306,110 | 39,203 | |||||||||
Bank borrowings, current | 3,863,852 | 3,923,880 | 502,527 | |||||||||
Contract liabilities | 4,619,690 | 9,489,991 | 1,215,372 | |||||||||
Operating lease liabilities, current | 1,392,826 | 1,406,045 | 180,071 | |||||||||
Income tax payable | 217,478 | 93,409 | 11,963 | |||||||||
Total current liabilities | 12,182,221 | 15,596,166 | 1,997,384 | |||||||||
Non-current liabilities | ||||||||||||
Bank borrowings, non-current | 6,062,904 | 4,101,554 | 525,281 | |||||||||
Operating lease liabilities, non-current | 1,570,307 | 852,343 | 109,159 | |||||||||
Deferred tax liabilities, net | 2,292,955 | 1,399,592 | 179,244 | |||||||||
Total non-current liabilities | 9,926,166 | 6,353,489 | 813,684 | |||||||||
Total liabilities | 22,108,387 | 21,949,655 | 2,811,068 | |||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Shareholders' equity | ||||||||||||
Ordinary shares, authorized to issue an | 3,900 | 3,900 | 500 | |||||||||
Additional paid-in capital | 2,042,379 | 46,418,547 | 5,950,728 | |||||||||
Retained earnings | 9,778,545 | 4,231,954 | 541,565 | |||||||||
Accumulated other comprehensive loss | (81,392) | (77,912) | (15,520) | |||||||||
Total shareholders' equity | 11,743,432 | 50,576,489 | 6,477,273 | |||||||||
Total liabilities and shareholders' equity | 33,851,819 | 72,526,144 | 9,288,341 | |||||||||
mF International Limited and Subsidiaries | ||||||||||||
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income | ||||||||||||
For the Six Months Ended June 30, 2023 and 2024 | ||||||||||||
For the six months ended June 30, | ||||||||||||
2023 | 2024 | 2024 | ||||||||||
HK$ | HK$ | US$ | ||||||||||
Revenue | 14,153,693 | 12,470,969 | 1,597,143 | |||||||||
Cost of revenue | 6,896,648 | 7,184,748 | 920,142 | |||||||||
Gross profit | 7,257,045 | 5,286,221 | 677,001 | |||||||||
Operating expenses | ||||||||||||
Selling and marketing expense | 79,200 | 918,731 | 117,661 | |||||||||
Research and development expense | - | 109,231 | 13,989 | |||||||||
General and administrative expense | 4,620,203 | 10,580,763 | 1,355,066 | |||||||||
Total operating expenses | 4,699,403 | 11,608,725 | 1,486,716 | |||||||||
Income (loss) from operations | 2,557,642 | (6,322,504) | (809,715) | |||||||||
Other income (expense) | ||||||||||||
Other income (expenses), net | 43,643 | (18,096) | (2,318) | |||||||||
Realized loss on disposal of financial assets at fair value | (7,874) | - | - | |||||||||
Change in fair value on financial assets at fair value | (2,091) | - | - | |||||||||
Interest expense, net | (201,624) | (99,354) | (12,724) | |||||||||
Total other expense, net | (167,946) | (117,450) | (15,042) | |||||||||
Income (loss) before income taxes | 2,389,696 | (6,439,954) | (824,757) | |||||||||
Income tax expense (benefit) | 169,358 | (893,363) | (114,412) | |||||||||
Net income (loss) | 2,220,338 | (5,546,591) | (710,345) | |||||||||
Other comprehensive loss | ||||||||||||
Foreign currency translation adjustment | (157) | 3,480 | (5,099) | |||||||||
Comprehensive income | 2,220,181 | (5,543,111) | (715,444) | |||||||||
Weighted average shares outstanding – basic and diluted* | 11,585,000 | 12,196,111 | 12,196,111 | |||||||||
Earnings (loss) per share – basic and diluted* | 0.192 | (0.45) | (0.06) | |||||||||
* Giving retroactive effect to the 1 for 231.7 share split effected on August 11, 2023.
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SOURCE mF International Limited
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