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Public company info - Global Token Limited , 08192.HK
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Global Token Limited, 08192.HK - Company Profile
Chairman Guo Yong
Share Issued (share) 1,036,000,000
Par Currency Hong Kong Dollar
Par Value 0.04
Industry IT Hardware
Corporate Profile Business Summary: The Group is principally engaged in (i) rental of energy-saving air-conditioners, (ii) trading business, (iii) money lending business, (iv) securities trading business and (v) blockchain technology related business. Performance for the year: For the year ended 31 December 2019, the Group recorded a revenue of approximately HK$169,084,000 (2018: approximately HK$177,448,000). The loss for the year decreased by 43.9% from approximately HK$154,617,000 for the year ended 31 December 2018 to approximately HK$86,781,000 for the year ended 31 December 2019. Business Review Trading Business The Group’s trading business is mainly engaged in trading of electronic products in the PRC. During the year ended 31 December 2019, the Group recorded approximately HK$165,555,000 (31 December 2018: approximately HK$163,951,000) of revenue from the trading business, representing a slight increase of 1.0% compared to the last corresponding period. Profit of this segment increased by 66.6% from approximately HK$2,577,000 for the year ended 31 December 2018 to approximately HK$4,293,000 for the year ended 31 December 2019 in line with the increase in trading volume. A prudent manner will be continually adapted to manage the credit risk posed by the economic uncertainties raised from the novel coronavirus pneumonia (“COVID-19”) outbreak. To maintain the sustainability of the Group, the trading business coverage is expanded to include the trading of cryptocurrencies mining hardware for Bitcoin, through the acquisition of 85.7% equity interest of High Sharp Electronic Limited (“High Sharp”) and 90.0% equity interest of Shanghai High Sharp Tech Limited (“Shanghai High Sharp”) in the first season of 2020. High Sharp is principally engaged in the provision of general trading. Shanghai High Sharp is principally engaged in the research and development of ASIC-based chips which are critical components of the cryptocurrencies mining hardware products. Details of the acquisition are set out in the Company’s announcement dated on 24 April 2020. Money Lending Business The Group recorded loans interest income of approximately HK$1,500,000 from the money lending business for the year ended 31 December 2019, representing a decline of 52.2% compared to the last corresponding period of approximately HK$3,136,000. The decrease of loan interest income was caused by the shrink of loan portfolio size. The segment profit of the money lending business significantly decreased from a profit of approximately HK$2,409,000 for the year ended 31 December 2018 to a loss of approximately HK$6,026,000 for the year ended 31 December 2019 attributing to the increase on the allowance for expected credit losses on the loan receivable amounting approximately HK$6,419,000 (31 December 2018: net reversal of allowance for expected credit losses of approximately HK$495,000) during the year. There was no default event happened in respect of the Group’s loan portfolio during the year under review. However, the default risk is expected to increase due to the material uncertainties of the global economic environment affected by the recent outbreak of COVID-19, which may have an adverse effect on the value of the loan collateral. A prudent attitude to better the default risk management of the money lending business will be adopted by closely monitoring and evaluating the value of the loan collateral. Securities Trading Business The revenue from securities trading business mainly comprised of the brokerage and commission income. The Group recorded approximately HK$1,814,000 of revenue from securities trading business for the year ended 31 December 2019, representing a decrease of 37.4% compared to the last corresponding period of approximately HK$2,896,000 in line with the reduction in the total turnover. As a result of the adverse Hong Kong stock market performance, the total turnover decreased to approximately HK$678 million for the year ended 31 December 2019 (31 December 2018: approximately HK$1,111 million). The Hong Kong stock market is expected to continue to be dragged down by the outbreak of COVID-19, which will continue to weaken the securities trading business in the coming year. Loss of this segment increased by 98.2% from approximately HK$4,277,000 for the year ended 31 December 2018 to approximately HK$8,477,000 for the year ended 31 December 2019 as a result of the underperformance of the business leading to an increase in the impairment loss of the goodwill amounting approximately HK$6,617,000 (31 December 2018: approximately HK$2,365,000). Blockchain Technology Related Business The blockchain technology related business is mainly engaged in (i) mainstream cryptocurrencies trading, (ii) non-mainstream cryptocurrencies trading and (iii) enterprise solution for blockchain technology. During the year ended 31 December 2019, the Group recorded approximately HK$215,000 (31 December 2018: approximately HK$7,465,000) of revenue from the business. The significant decrease was caused by the slowdown of the cryptocurrencies market. The segment loss of approximately HK$18,967,000 (31 December 2018: approximately HK$22,027,000) is caused by the substantial investment in the research and development cost of the enterprise solution for blockchain technology and the decrease on trading volume in both mainstream and non-mainstream cryptocurrencies trading as a result of the decline of the crypto economy. On 21 June 2019, the Group ceased the business related to the provision of non-mainstream cryptocurrencies trading platform. Details of cessation of the operation are set out in the Company’s announcement dated 21 June 2019. Further to the cessation of the operation, the Group disposed of this business to an independent third party at a consideration of HK$1,400,000 on 1 April 2020. The disposal was completed on the same date. Details of the disposal are set out in the Company’s announcement dated 24 April 2020. Given the underperformance of the business, the Directors are of the opinion that it’s costintensive to continue the operation. A further substantial capital contribution might be required in the development cost of the blockchain technology as the industry is still in its initial stage. On 15 May 2020, the board of Directors approved to discontinue the entire operation of blockchain technology related business. Discontinued Operation On 30 December 2019, the Group entered into a sale and purchase agreement to dispose of the entire segment of the rental of energy-saving air-conditioners to an independent third party of a consideration of RMB2,800,000 (equivalent to approximately HK$3,119,000). The Directors are of the opinion that this segment has been loss-making and further financial contribution might be required to anticipate the operation. Details of the disposal are set out in the Company’s announcement dated 30 December 2019. The disposal was completed on 23 April 2020. During the year under review, the Group recorded approximately HK$1,606,000 of revenue from the business representing a decrease of 52.5% compared to the last corresponding period of approximately HK$3,379,000. The fall in air-conditioner usage hours was caused by the economic slowdown of the mainland China, which led to the closedown of many of the Group’s major customers, small and medium-sized enterprises. Segment loss decreased by 46.6% from approximately HK$20,510,000 for the year ended 31 December 2018 to approximately HK$10,957,000 for the year ended 31 December 2019. The decrease was attributed to the implementation of the cost-cutting on staff costs and other operating expenses. Prospects: The global economy in early 2020 has been adversely affected by concerns over the COVID-19 outbreak, which may bring an impact on consumer confidence. The worldwide stock index drops significantly in 2020 due to the drop in crude oil prices and the market panic of the outbreak of the COVID-19. The crisis may have a material influence on the Group’s financial results and development plan for the coming year. The management foresees that there are full of challenges in 2020. The Group will continue to review its existing business from time to time and is committed to improving the business operations and financial position of the Group, actively identify potential business and investment opportunities to expand its source of income. The Company has appointed an international consultancy firm as the Company’s financial advisor to assist the Company in formulating a resumption proposal in order to demonstrate that the Company maintains a sufficient level of operations or assets as required under Rule 17.26 of the GEM Listing Rule. The Company will make further announcements in due course to inform the shareholders and the public of the Company of the latest status of the Company’s resumption of trading.

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