mF International Limited Announces Fiscal Year 2023 Financial Results
mF International (MFI), a Hong Kong-based financial trading solution provider, announced its fiscal year 2023 financial results. The company reported a revenue decrease of 8.5% to HK$32.0 million (US$4.1 million) from HK$34.9 million in 2022. Despite this, the gross profit margin increased to 56.2%. Net income slightly declined to HK$6.6 million (US$0.8 million), and earnings per share were HK$0.572 (US$0.073). Cost reductions in employee expenses and outsourcing fees helped improve the profit margin. The company saw increased revenue from customization and white label services but faced declines in liquidity and subscription services. In April 2024, mF International completed its IPO and started trading on Nasdaq under the symbol MFI, raising funds to support future growth initiatives.
- Gross profit margin increased to 56.2%, up from 52.7% in 2022.
- Net income was HK$6.6 million (US$0.8 million), maintaining strong profitability despite a slight decline.
- Customization service revenue increased by 25.7% to HK$9.0 million (US$1.1 million).
- Successful IPO in April 2024, raising capital for future growth.
- Cost of revenue decreased by 15.2%, mainly due to reduced expenses in staff, outsourcing, and commissions.
- Overall revenue decreased by 8.5% to HK$32.0 million (US$4.1 million) in 2023.
- Revenue from liquidity services dropped significantly by 60.8%.
- Net cash provided by operating activities decreased to HK$11.3 million (US$1.4 million) from HK$13.5 million.
- General and administrative expenses increased by 4.5% to HK$11.1 million (US$1.4 million), partly due to IPO costs.
- Research and development expenses declined by 85.8%, potentially indicating less investment in innovation.
Insights
The fiscal year 2023 financial results for mF International Limited provide substantial insights into their performance amidst macroeconomic challenges. Revenue decreased by
The overall net income showed a marginal decline, down from
Operating expenses saw a minimal increase, with significant IPO-related costs being a primary driver. The decrease in research and development expenses points to a shift in focus towards more implementation rather than preliminary research, which might indicate a more matured stage in product offerings.
While there are short-term challenges reflected in some of the financial metrics, the strategic adjustments and enhanced service offerings present a cautiously optimistic long-term outlook.
Investors should monitor the Company’s ability to leverage its IPO proceeds for future growth and how it manages macroeconomic uncertainties.
The shift in mF International’s revenue mix highlights a strategic pivot in its business model. The marked reduction in liquidity services revenue, down by
The slight decline in overall revenue is noteworthy but may be part of a broader strategic realignment. The Company's focus on innovation, operational efficiency and its I-A-D-T philosophy aligns well with current market needs, suggesting they are positioning themselves well for future opportunities in a competitive market.
The long-term success will depend on how effectively the Company capitalizes on its investments in customization and white label services, as well as its ability to attract and retain customers through its enhanced service offerings.
Investors should consider the Company's market positioning and strategic direction, which appears focused on sustainable growth through innovation and operational excellence.
mF International's emphasis on customization and support services reflects a current trend in the financial technology sector where clients demand more tailored solutions. The
The improvement in the gross profit margin, despite a decrease in overall revenue, can be partially attributed to optimizing in-house resources for implementation tasks historically outsourced. This shift not only improves cost efficiency but also enhances the Company's control over service quality and delivery timelines.
The successful IPO and Nasdaq listing imply that the Company is in a strong position to further invest in technology and expand its market reach, potentially driving future growth and innovation.
Investors should keep an eye on ongoing investments in technology and customization, which are key differentiators in a competitive market.
Mr. Chi Weng Tam, Executive Director and Chief Executive Officer of the Company, commented, "I'm pleased to present our financial results for fiscal year 2023. Despite facing significant macroeconomic uncertainties, we have improved our gross profit margin and enhanced our service offerings in a challenging environment, particularly with respect to customization and support services, which have seen robust growth. The slight decrease in overall revenue is largely attributable to strategic adjustments in our service portfolio, which are already showing promising results. Our focus on innovation and operational efficiency has enabled us to maintain a strong financial position. Our unique I-A-D-T philosophy of Information, Analysis, Decision, and Transaction continues to guide our strategic focus, ensuring that our trading solutions are both at the cutting-edge and aligned with market needs. It's also worth noting that in April 2024, we completed our initial public offering (the "IPO") and listing on the Nasdaq Capital Market under the ticker symbol "MFI," which we expect may enhance our competitiveness globally and position favorably for future investments and expansion, in order to provide us with the capital to pursue ambitious initiatives that align with our long-term vision. Looking forward, we are dedicated to continuous research and development to improve the services we offer our customers. I am confident that mF International will continue to thrive, deliver increased value to our shareholders and enhance our customer partnerships."
Fiscal Year 2023 Financial Highlights
- Revenue was
HK ($32.0 million US ) for fiscal year 2023, compared to$4.1 million HK for fiscal year 2022.$34.9 million - Gross profit was
HK ($18.0 million US ) for fiscal year 2023, compared to$2.3 million HK for fiscal year 2022.$18.4 million - Gross profit margin was
56.2% for fiscal year 2023, increased from52.7% for fiscal year 2022. - Net income was
HK ($6.6 million US ) for fiscal year 2023, compared to$0.8 million HK for fiscal year 2022.$6.8 million - Basic and diluted earnings per share was
HK ($0.57 2US ) for fiscal year 2023, compared to$0.07 3HK for fiscal year 2022.$0.58 9
Fiscal Year 2023 Financial Results
Revenue
Total revenue of the Company was HK
- Revenue from initial set up, installation and customization services was
HK ($9.0 million US ) for fiscal year 2023, which increased by$1.1 million 25.7% fromHK for fiscal year 2022. The increase was mainly due to the increase in demand for the Company's customization services provided to customers to customize the functions and features of the trading platforms during fiscal year 2023.$7.1 million - Revenue from subscriptions was
HK ($11.4 million US ) for fiscal year 2023, which increased by$1.5 million 0.3% fromHK for fiscal year 2022. The Company maintained the same business activities for this revenue source during fiscal year 2023.$11.4 million - Revenue from hosting, support and maintenance services was
HK ($4.3 million US ) for fiscal year 2023, which increased by$0.6 million 3.6% fromHK for fiscal year 2022. The increase was mainly due to the increase in customers for the Company's hosting, support and maintenance services for fiscal year 2023.$4.2 million - Revenue from liquidity services was
HK ($2.6 million US ) for fiscal year 2023, which decreased by$0.3 million 60.8% fromHK for fiscal year 2022. The decrease was mainly due to a customer who was engaging in in-house research on a trading signal and was developing new trading signals to replace the existing one. During the testing phase, the demand for the Company's liquidity services was reduced, as the trading volume was maintained at a lower level until the new trading signals had been optimized.$6.7 million - Revenue from white label services was
HK ($2.1 million US ) for fiscal year 2023, which increased by$0.3 million 12.3% fromHK for fiscal year 2022. The increase was mainly due to the increase in customers for the Company's white label services for fiscal year 2023.$1.9 million - Revenue from quotes/news/package subscription services was
HK ($2.5 million US ) for fiscal year 2023, which decreased by$0.3 million 31.8% fromHK for fiscal year 2022. The decrease was mainly due to customers subscribed for fewer quotes/news/package services for fiscal year 2023.$3.6 million
Cost of Revenue
Cost of revenue was
Gross Profit
Gross profit was
Gross profit margin was
Operating Expenses
Total operating expenses were HK
- Selling and marketing expenses were
HK ($160,976 US ) for fiscal year 2023, which slightly decreased by$20,609 0.5% fromHK for fiscal year 2022, mainly because of a reduction in marketing expenses incurred during fiscal year 2023.$161,791 - Research and development expenses were
HK ($11,373 US ) for fiscal year 2023, which decreased by$1,456 85.8% fromHK for fiscal year 2022, because more staff costs were incurred at the project development stage, rather than the preliminary project research stage, for fiscal year 2023.$80,012 - General and administrative expenses were
HK ($11.1 million US ) for fiscal year 2023, which increased by$1.4 million 4.5% fromHK for fiscal year 2022, because the IPO expenses of$10.6 million HK that were incurred in fiscal year 2023.$3.4 million
Total Other Income (Expense)
Total other income, net was
Net Income
Net income was
Basic and Diluted Earnings per Share
Basic and diluted earnings per share was HK
Financial Condition
As of December 31, 2023, the Company had cash and cash equivalents of HK
Net cash provided by operating activities was HK
Net cash used in investing activity was HK
Net cash used in financing activities was HK
Exchange Rate Information
Translations of amounts from HK$ into US$ as of and for the years ended December 31, 2023 are solely for the convenience of the reader and were calculated at the noon buying rate of
Recent Development
On April 24, 2024, the Company completed its IPO of 1,666,667 ordinary shares at a public offering price 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," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar. 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 | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
As of December 31, 2022 and 2023 | ||||||||||||
HK$ | HK$ | US$ | ||||||||||
As of December 31, | ||||||||||||
2022 | 2023 | 2023 | ||||||||||
HK$ | HK$ | US$ | ||||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash | 12,063,731 | 6,810,418 | 871,912 | |||||||||
Accounts receivable, net | 1,133,370 | 2,579,475 | 330,240 | |||||||||
Prepaid expenses and other current assets | 346,064 | 371,143 | 47,516 | |||||||||
Investment at fair value | 1,979,268 | 343,862 | 44,023 | |||||||||
Total current assets | 15,522,433 | 10,104,898 | 1,293,691 | |||||||||
Non-current assets | ||||||||||||
Property and equipment, net | 123,305 | 36,511 | 4,674 | |||||||||
Intangible assets, net | 13,564,772 | 15,336,589 | 1,963,486 | |||||||||
Operating lease right-of-use assets | 1,730,717 | 2,957,515 | 378,639 | |||||||||
Long term deposit | 479,076 | 431,972 | 55,304 | |||||||||
Deferred initial public offering ("IPO") costs | 3,119,900 | 4,984,334 | 638,125 | |||||||||
Total assets | 34,540,203 | 33,851,819 | 4,333,919 | |||||||||
Liabilities and Shareholders' Equity | ||||||||||||
Current liabilities | ||||||||||||
Accrued expenses and other current liabilities | 1,844,246 | 1,782,265 | 228,177 | |||||||||
Amounts due to a related party | 306,110 | 306,110 | 39,190 | |||||||||
Current portion of bank borrowings | 3,701,162 | 3,863,852 | 494,674 | |||||||||
Contract liabilities | 4,199,173 | 4,619,690 | 591,441 | |||||||||
Current portion of operating lease liabilities | 1,624,066 | 1,392,826 | 178,318 | |||||||||
Tax payable | 229,355 | 217,478 | 27,843 | |||||||||
Total current liabilities | 11,904,112 | 12,182,221 | 1,559,643 | |||||||||
Non-current liabilities | ||||||||||||
Bank borrowings, non-current | 9,919,236 | 6,062,904 | 776,211 | |||||||||
Operating lease liabilities, non-current | 138,289 | 1,570,307 | 201,040 | |||||||||
Deferred tax liabilities | 2,152,668 | 2,292,955 | 293,558 | |||||||||
Total liabilities | 24,114,305 | 22,108,387 | 2,830,452 | |||||||||
COMMITMENTS AND CONTINGENCIES (Note 14) | ||||||||||||
Shareholders' equity | ||||||||||||
Ordinary shares, authorized to issue an unlimited number of | 3,900 | 3,900 | 500 | |||||||||
Additional paid-in capital | 2,042,379 | 2,042,379 | 261,478 | |||||||||
Retained earnings | 8,478,877 | 9,778,545 | 1,251,910 | |||||||||
Accumulated other comprehensive loss | (99,258) | (81,392) | (10,421) | |||||||||
Total shareholders' equity | 10,425,898 | 11,743,432 | 1,503,467 | |||||||||
Total liabilities and shareholders' equity | 34,540,203 | 33,851,819 | 4,333,919 | |||||||||
* | Giving retroactive effect to the 1 for 231.7 share split effected on August 11, 2023. |
mF International Limited and Subsidiaries | ||||||||||||||||
Consolidated Statements of Income and Comprehensive Income | ||||||||||||||||
For the Years Ended December 31, 2021, 2022 and 2023 | ||||||||||||||||
2021 | 2022 | 2023 | 2023 | |||||||||||||
For the years ended December 31, | ||||||||||||||||
2021 | 2022 | 2023 | 2023 | |||||||||||||
HK$ | HK$ | HK$ | US$ | |||||||||||||
Revenue | 32,212,970 | 34,931,827 | 31,961,177 | 4,091,869 | ||||||||||||
Cost of revenue | 16,260,407 | 16,512,702 | 13,995,670 | 1,791,813 | ||||||||||||
Gross profit | 15,952,563 | 18,419,125 | 17,965,507 | 2,300,056 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling and marketing expenses | 220,681 | 161,791 | 160,976 | 20,609 | ||||||||||||
Research and development expenses | 29,478 | 80,012 | 11,373 | 1,456 | ||||||||||||
General and administrative expenses | 5,167,704 | 10,634,851 | 11,110,942 | 1,422,492 | ||||||||||||
Total operating expenses | 5,417,863 | 10,876,654 | 11,283,291 | 1,444,557 | ||||||||||||
Income from operations | 10,534,700 | 7,542,471 | 6,682,216 | 855,499 | ||||||||||||
Other income (expense) | ||||||||||||||||
Other income, net | 1,402,874 | 1,265,200 | 457,941 | 58,628 | ||||||||||||
Realized loss on disposal of financial assets at | (16,120) | - | (7,874) | (1,008) | ||||||||||||
Change in fair value on financial assets at fair | (660,325) | (1,157,650) | (2,091) | (268) | ||||||||||||
Interest expenses, net | (479,904) | (443,577) | (353,002) | (45,194) | ||||||||||||
Total other (expense) income, net | 246,525 | (336,027) | 94,974 | 12,158 | ||||||||||||
Income before income taxes | 10,781,225 | 7,206,444 | 6,777,190 | 867,657 | ||||||||||||
Income tax expenses | (431,630) | (387,845) | (148,309) | (18,987) | ||||||||||||
Net income | 10,349,595 | 6,818,599 | 6,628,881 | 848,670 | ||||||||||||
Other comprehensive (loss) income | ||||||||||||||||
Foreign currency translation adjustment | (14,168) | 7,496 | 17,866 | 2,287 | ||||||||||||
Comprehensive income | 10,335,427 | 6,826,095 | 6,646,747 | 850,957 | ||||||||||||
Weighted average shares outstanding – basic | 11,585,000 | 11,585,000 | 11,585,000 | 11,585,000 | ||||||||||||
Earnings per share – basic and diluted* | 0.893 | 0.589 | 0.572 | 0.073 | ||||||||||||
* | Giving retroactive effect to the 1 for 231.7 share split effected on August 11, 2023. |
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SOURCE mF International Limited
FAQ
What were the fiscal year 2023 financial results for mF International (MFI)?
How did mF International's gross profit margin change in fiscal year 2023?
What was the impact of mF International's IPO in April 2024?
Why did mF International's revenue decrease in fiscal year 2023?
How did customization services perform for mF International in fiscal year 2023?
