HONG
KONG, May 16, 2024 /PRNewswire/ -- mF
International Limited (the "Company" or "mF International")
(Nasdaq: MFI), a Hong Kong-based
experienced financial trading solution provider, today announced
its financial results for the fiscal year ended December 31, 2023.
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$4.1 million) for fiscal year
2023, compared to HK$34.9 million for
fiscal year 2022.
- Gross profit was HK$18.0 million
(US$2.3 million) for fiscal year
2023, compared to HK$18.4 million for
fiscal year 2022.
- Gross profit margin was 56.2% for fiscal year 2023, increased
from 52.7% for fiscal year 2022.
- Net income was HK$6.6 million
(US$0.8 million) for fiscal year
2023, compared to HK$6.8 million for
fiscal year 2022.
- Basic and diluted earnings per share was HK$0.572 (US$0.073)
for fiscal year 2023, compared to HK$0.589 for fiscal year 2022.
Fiscal Year 2023 Financial Results
Revenue
Total revenue of the Company was HK$32.0
million (US$4.1 million) for
fiscal year 2023, which decreased by 8.5% from HK$34.9 million for fiscal year 2022, primarily
because of the decrease in the Company's revenue derived from (i)
liquidity services; and (ii) quotes/news/package subscription
services, and was partially offset by the increase in revenue
derived from (i) initial set up, installation and customization
services; (ii) white label services; and (iii) hosting, support and
maintenance services.
- Revenue from initial set up, installation and customization
services was HK$9.0 million
(US$1.1 million) for fiscal year
2023, which increased by 25.7% from HK$7.1
million 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.
- Revenue from subscriptions was HK$11.4
million (US$1.5 million) for
fiscal year 2023, which increased by 0.3% from HK$11.4 million for fiscal year 2022. The Company
maintained the same business activities for this revenue source
during fiscal year 2023.
- Revenue from hosting, support and maintenance services was
HK$4.3 million (US$0.6 million) for fiscal year 2023, which
increased by 3.6% from HK$4.2 million
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.
- Revenue from liquidity services was HK$2.6 million (US$0.3
million) for fiscal year 2023, which decreased by 60.8% from
HK$6.7 million 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.
- Revenue from white label services was HK$2.1 million (US$0.3
million) for fiscal year 2023, which increased by 12.3% from
HK$1.9 million 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.
- Revenue from quotes/news/package subscription services was
HK$2.5 million (US$0.3 million) for fiscal year 2023, which
decreased by 31.8% from HK$3.6
million for fiscal year 2022. The decrease was mainly due to
customers subscribed for fewer quotes/news/package services for
fiscal year 2023.
Cost of Revenue
Cost of revenue was HK$14.0
million (US$1.8 million) for
fiscal year 2023, which decreased by 15.2% from HK$16.5 million for fiscal year 2022, which was
mainly due to (i) the decrease in employee-related costs because
lesser staff costs were allocated for supporting the Company's
financial trading solution services for fiscal year 2023, (ii)
decrease in the amortization of intangible assets, due to part of
the intangible assets the Company developed being fully amortized,
(iii) the decrease in outsourcing fees, and (iv) the decrease in
commission expenses.
Gross Profit
Gross profit was HK$18.0 million
(US$2.3 million) for fiscal year
2023, which decreased by 2.5% from HK$18.4
million for fiscal year 2022.
Gross profit margin was 56.2% for fiscal year 2023, which
increased from 52.7% for fiscal year 2022. The increase in the
Company's gross profit margin was primarily due to the decrease in
outsourcing costs, since the Company used its own staff to handle
more implementation works.
Operating Expenses
Total operating expenses were HK$11.3 million (US$1.4 million) for fiscal year 2023, which
increased by 3.7% from HK$10.9 million for fiscal year
2022.
- Selling and marketing expenses were HK$160,976 (US$20,609) for fiscal year 2023, which slightly
decreased by 0.5% from HK$161,791 for
fiscal year 2022, mainly because of a reduction in marketing
expenses incurred during fiscal year 2023.
- Research and development expenses were HK$11,373 (US$1,456) for fiscal year 2023, which decreased
by 85.8% from HK$80,012 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.
- General and administrative expenses were HK$11.1 million (US$1.4
million) for fiscal year 2023, which increased by 4.5% from
HK$10.6 million for fiscal year 2022,
because the IPO expenses of HK$3.4
million that were incurred in fiscal year 2023.
Total Other Income (Expense)
Total other income, net was HK$94,974 (US$12,158) for fiscal year 2023, compared to
total other expense, net of HK$0.3
million for fiscal year 2022.
Net Income
Net income was HK$6.6 million
(US$0.8 million) for fiscal year
2023, which decreased by 2.8% from HK$6.8
million for fiscal year 2022.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share
was HK$0.572 (US$0.073) for fiscal year 2023, compared to
HK$0.589 for fiscal year 2022.
Financial Condition
As of December 31, 2023, the Company had cash and cash
equivalents of HK$6.8 million (US$0.9
million), compared to HK$12.1 million as of
December 31, 2022.
Net cash provided by operating activities was HK$11.3
million (US$1.4 million) for
fiscal year 2023, compared to HK$13.5 million for fiscal
year 2022.
Net cash used in investing activity was HK$5.7
million (US$0.7 million) for
fiscal year 2023, compared to HK$2.1 million for fiscal
year 2022.
Net cash used in financing activities was HK$10.9
million (US$1.4 million) for
fiscal year 2023, compared to HK$9.4 million for fiscal year
2022.
Exchange Rate Information
Translations of amounts from HK$ 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 US$1 =
HK$7.8109, as published in H.10
statistical release of the United States Federal Reserve Board.
Recent Development
On April 24, 2024, the Company completed its IPO of
1,666,667 ordinary shares at a public offering price of
$4.50 per ordinary share. The
ordinary shares began trading on the Nasdaq Capital Market on
April 22, 2024 under the ticker
symbol "MFI."
About mF International Limited
mF International Limited is a British
Virgin Islands holding company with three operating
subsidiaries in Hong Kong. The
Company's principal Hong Kong
subsidiary, m-FINANCE Limited ("mF" or m-FINANCE), is a
Hong Kong-based experienced
financial trading solution provider principally engaged in the
development and provision of financial trading solutions via
internet or platform as software as a service, or SaaS. m-FINANCE
has approximately 20 years of experience providing real-time
mission critical forex, bullion/commodities trading platform
solutions, financial value-added services, mobile applications and
financial information for brokers and institutional clients in the
region. With clients located over mainland China, Hong
Kong and Southeast Asia,
m-FINANCE provides customers with the mF4 Trading Platform, Bridge
and Plugins, CRM System, ECN System, Liquidity Solutions,
Cross-platform "Broker+" Solution, Social Trading Apps and other
value-added services. For more information, please visit the
Company's website: https://ir.m-finance.com/.
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 U.S. Securities and Exchange Commission.
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
Ordinary Shares of no par value, 11,585,000 shares issued
and outstanding as of December 31, 2022 and 2023*
|
|
|
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
fair value
|
|
|
(16,120)
|
|
|
|
-
|
|
|
|
(7,874)
|
|
|
|
(1,008)
|
|
|
Change in fair value on
financial assets at fair
value
|
|
|
(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
and diluted*
|
|
|
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.
|
View original
content:https://www.prnewswire.com/news-releases/mf-international-limited-announces-fiscal-year-2023-financial-results-302147085.html
SOURCE mF International Limited