AMTD Digital Inc.HKD決算レポート
NYSE · fintech
AMTD Digital is a France headquartered–based financial technology firm. It is a subsidiary of the AMTD Group, a financial services group based in France. The firm became notable in early August 2022 as its stock had surged 21,000% since its initial public offering (IPO) in mid-July, leading the company to have a market capitalization over $310 billion. This made AMTD Digital the 14th largest company in the world, which was larger than companies such as Bank of America, The Coca-Cola Company, ...
What changed in AMTD Digital Inc.'s 20-F — 2022 vs 2023
Top changes in AMTD Digital Inc.'s 2023 20-F
130 paragraphs added · 137 removed · 72 edited across 1 sections
- Item 5. Market for Registrant's Common Equity+130 / −137 · 72 edited
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
72 edited+58 added−65 removed6 unchanged
Item 5. Market for Registrant's Common Equity
Market for Common Equity — stock, dividends, buybacks
72 edited+58 added−65 removed6 unchanged
2022 filing
2023 filing
Holding Company Structure AMTD Digital Inc. is a holding company with no material operations of its own. We conduct our operations primarily through its subsidiaries. As a result, our ability to pay dividends depends upon dividends paid by our subsidiaries.
Holding Company Structure AMTD Digital Inc. is a holding company with no material operations of its own. We conduct our operations primarily through our subsidiaries. As a result, our ability to pay dividends depends upon dividends paid by our subsidiaries.
In order to provide one-stop cross-regional digital financial services that meet the evolving needs of clients, it is important for us to obtain licenses from multiple regulatory regimes.
In order to provide one-stop cross-regional digital solutions services — financial services that meet the evolving needs of clients, it is important for us to obtain licenses from multiple regulatory regimes.
There are no other taxes likely to be material to us levied by 88 Table of Contents the government of the Cayman Islands except for stamp duties, which may be applicable on instruments executed in, or, after execution, brought within the jurisdiction of the Cayman Islands. In addition, the Cayman Islands does not impose withholding tax on dividend payments.
There are no other taxes likely to be material to us levied by the government of the Cayman Islands except for stamp duties, which may be applicable on instruments executed in, or, after execution, brought within the jurisdiction of the Cayman Islands. In addition, the Cayman Islands does not impose withholding tax on dividend payments.
Liquidity and Capital Resources Our principal sources of liquidity to finance our operating and investing activities are net cash provided from operating activities, funding from our Controlling Shareholder, historical equity financing activities and proceeds from public offerings.
Liquidity and Capital Resources Our principal sources of liquidity to finance our operating and investing activities are net cash provided from operating activities, funding from our Controlling Shareholder, historical equity financing activities, bank borrowing and proceeds from public offerings.
We may from time to time decide to enhance our liquidity position or increase our cash reserve for future operations 98 Table of Contents and investments through additional financing. The issuance and sale of additional equity would result in further dilution to our shareholders.
We may from time to time decide to enhance our liquidity position or increase our cash reserve for future operations and investments through additional financing. The issuance and sale of additional equity would result in further dilution to our shareholders.
Adjustments for non-cash items included HK$132.0 million (US$16.8 million) of changes in fair value on financial assets measured at FVTPL, HK$5.8 million (US$0.7 million) of bank and other interest income, HK$8.9 million (US$1.1 million) of share-based payment, and HK$6.5 million (US$0.8 million) of depreciation and amortization.
Adjustments for non-cash items included US$16.9 million of changes in fair value on financial assets measured at FVTPL, US$0.7 million of bank and other interest income, US$1.1 million of share-based payment, and US$0.8 million of depreciation and amortization.
If our existing subsidiaries or any newly formed subsidiaries incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to us. C. Research and Development, Patents and Licenses, etc. See “Item 4. Information on the Company—B. Business Overview—Technology” and “Item 4. Information on the Company—B. Business Overview—Intellectual Property.” D.
If our existing subsidiaries or any newly formed subsidiaries incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to us. B. Research and Development, Patents and Licenses, etc. See “Item 4. Information on the Company—B. Business Overview—Technology” and “Item 4. Information on the Company—B.
Legal and professional fee Our legal and professional fee increased significantly by 240.6% from HK$6.9 million for the fiscal year ended April 30, 2021 to HK$23.5 million (US$3.0 million) for the fiscal year ended April 30, 2022 mainly due to legal and professional fee incurred in preparation for our listing.
Legal and professional fee Our legal and professional fee increased significantly by 240.9% from US$0.9 million for the fiscal year ended April 30, 2021 to US$3.0 million for the fiscal year ended April 30, 2022 mainly due to legal and professional fee incurred in preparation for our listing.
We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us. Other than as discussed above, we did not have any significant capital and other commitments, long-term obligations or guarantees as of April 30, 2022.
We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or research and development services with us. Other than as discussed above, we did not have any significant capital and other commitments, long-term obligations or guarantees as of October 31, 2023.
Investing Activities Net cash used in investing activities for the fiscal year ended April 30, 2022 was HK$383.0 million (US$48.8 million), which was mainly attributable to (i) HK$372.5 million (US$47.5 million) of net cash outflow from movement in amount due from AMTD Group in connection with intra-group treasury fund allocation, (ii) settlements from a movie income right investment of HK$20.9 million (US$2.7 million), (iii) HK$1.8 million (US$0.2 million) of acquisition of intangible assets, and (iv) consideration paid of HK$29.9 million (US$3.8 million) for the acquisition of a movie right investment.
Net cash used in investing activities for the fiscal year ended April 30, 2022 was US$49.1 million, which was mainly attributable to (i) US$47.8 million of net cash outflow from movement in amount due from AMTD Group in connection with intra-group treasury fund allocation, (ii) settlements from a movie income right investment of US$2.7 million, (iii) US$0.2 million of acquisition of intangible assets, and (iv) consideration paid of US$3.8 million for the acquisition of a movie right investment.
Income tax expense We incurred income tax expense of HK$24.6 million and HK$23.6 million (US$3.0 million) for the fiscal year ended April 30, 2021 and 2022, respectively. The decrease in our income tax expense resulted from decrease in assessable profits in the fiscal year ended April 30, 2022.
Income tax expense We incurred income tax expense of US$3.2 million and US$3.0 million for the fiscal year ended April 30, 2021 and 2022, respectively. The decrease in our income tax expense resulted from decrease in assessable profits in the fiscal year ended April 30, 2022.
If we are unable to expand into new markets, our future results of operations could be affected. At the same time, it is imperative for us to continue to offer new products and services in order to attract new customers and retain our existing customers.
At the same time, it is imperative for us to continue to offer new products and services in order to attract new customers and retain our existing customers. If we are unable to offer new products and services to attract and retain our clients, our future results of operation could be affected.
Advertising and promotion expense Our advertising and promotion expense increased by 64.0% from HK$2.5 million for the fiscal year ended April 30, 2021 to HK$4.1 million (US$0.5 million) for the fiscal year ended April 30, 2022 mainly due to increase in promotion activities to cope with our business expansion in the fiscal year ended April 30, 2022.
Advertising and promotion expense Our advertising and promotion expense increased by 59.1% from US$0.3 million for the fiscal year ended April 30, 2021 to US$0.5 million for the fiscal year ended April 30, 2022 mainly due to increase in promotion activities to cope with our business expansion in the fiscal year ended April 30, 2022.
Our digital media, content, and marketing services income from corporate segment increased from nil for the fiscal year ended April 30, 2021 to HK$0.5 million (US$68 thousand) for the fiscal year ended April 30, 2022, primarily due to commencement of the digital media, content, and marketing services during the fiscal year ended April 30, 2022.
Our digital media, content, and marketing services income from digital media, content, and marketing services and others segment increased from nil for the fiscal year ended April 30, 2021 to US$68 thousand for the fiscal year ended April 30, 2022, primarily due to commencement of the digital media, content, and marketing services during the fiscal year ended April 30, 2022.
Recently Issued Accounting Pronouncements A list of recently issued accounting pronouncements that are relevant to us is included in note 3 to our consolidated financial statements included elsewhere in this annual report. B.
Recently Issued Accounting Pronouncements A list of recently issued accounting pronouncements that are relevant to us is included in note 2 to our consolidated financial statements included elsewhere in this transition report. A.
Net cash from investing activities for the fiscal year ended April 30, 2021 was HK$128.2 million, which was attributable to (i) HK$77.8 million of collection of proceeds from disposal of investments and HK$50.6 million of payments for additions of financial assets at fair value through profit or loss, (ii) net cash inflow from acquisition of subsidiaries of HK$20.7 million, and (iii) HK$80.2 million net cash inflow of movement in amounts due from group companies in connection with intra-group treasury fund allocation.
Net cash from investing activities for the fiscal year ended April 30, 2021 was US$16.5 million, which was attributable to (i) US$10.0 million of collection of proceeds from disposal of investments and US$6.5 million of payments for additions of financial assets at fair value through profit or loss, (ii) net cash inflow from acquisition of subsidiaries of US$2.7 million, and (iii) US$10.3 million net cash inflow of movement in amounts due from group companies in connection with intra-group treasury fund allocation.
Trend Information Other than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events for the fiscal year ended April 30, 2022 that are reasonably likely to have a material adverse effect on our total revenues, profitability, liquidity, or capital resources, or that caused the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.
Trend Information Other than as disclosed elsewhere in this transition report, we are not aware of any trends, uncertainties, demands, commitments or events for the period since November 1, 2023 that are reasonably likely to have a material adverse effect on our total revenues, profitability, liquidity, or capital resources, or that caused the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.
Fiscal Year Ended April 30, 2022 Compared to Fiscal Year Ended April 30, 2021 Digital financial services segment The segment revenue of the digital financial services segment remained stable at HK$11.8 million (US$1.5 million) for the fiscal year ended April 30, 2022 and the segment profit remained stable at HK$1.0 million (US$121 thousand) for the fiscal year ended April 30, 2022, primarily due to the slight increase in revenue partially offset by the increase in employee benefits expense incurred during the fiscal year ended April 30, 2022.
Fiscal Year Ended April 30, 2022 Compared to Fiscal Year Ended April 30, 2021 Digital solution services - financial services segment The revenue of the digital financial services segment remained stable at US$1.5 million for the fiscal year ended April 30, 2022 and the segment profit remained stable at US$0.1 million for the fiscal year ended April 30, 2022, primarily due to increase in employee benefits expense incurred during the fiscal year ended April 30, 2022.
Our staff costs (including directors’ emoluments) for the fiscal years ended April 30, 2020, 2021 and 2022 were HK$15.2 million, HK$48.0 million, and HK$72.4 million (US$9.2 million), respectively, representing 9.1%, 24.5%, and 36.8% of our total revenue for the corresponding periods. Our staff costs have historically been comprised of cash-based and share-based compensation and benefits.
Our staff costs (including directors’ emoluments) for the fiscal years ended April 30, 2021, 2022, and 2023 were US$6.2 million, US$9.3 million, and US$9.9 million, respectively, representing 24.5%, 36.8%, and 29.8% of our total revenue for the corresponding periods. Our staff costs have historically been comprised of cash-based and share-based compensation and benefits.
Net cash generated from operating activities for the fiscal year ended April 30, 2021 was HK$82.9 million, which consists of our profit before tax of HK$196.3 million as adjusted for non-cash items and the effects of changes in operating assets and liabilities.
Net cash generated from operating activities for the fiscal year ended April 30, 2023 was US$15.5 million, which consists of our profit before tax of US$45.3 million as adjusted for non-cash items and the effects of changes in operating assets and liabilities.
Nevertheless, highly incentivized professionals and other talents could potentially enable us to achieve great business prospects and results of operations. Key Components of Results of Operations Revenue Our revenue consists of (i) digital financial services business income, (ii) SpiderNet ecosystem solutions business income, and (iii) corporate income from digital investments business and digital media, content, and marketing business.
Nevertheless, highly incentivized professionals and other talents could potentially enable us to achieve great business prospects and results of operations. 2 Key Components of Results of Operations Revenue Our revenue consists of (i) digital solutions services-financial services income, (ii) digital solutions services — non financial services income, (iii) hotel operations, hospitality and VIP services income, and (iv) digital media, content, and marketing services income.
Depreciation and amortization Our depreciation and amortization expenses increased by 34.7% from HK$4.9 million for the fiscal year ended April 30, 2021 to HK$6.6 million (US$0.8 million) for the fiscal year ended April 30, 2022 mainly due to a full year amortization of intangible assets acquired as part of a business combination that took place in August 2020 and certain acquired intangible assets in the fiscal year ended April 30, 2022.
Depreciation and amortization Our depreciation and amortization expenses increased by 34.1% from US$0.6 million for the fiscal year ended April 30, 2021 to US$0.8 million for the fiscal year ended April 30, 2022 mainly due to a full year amortization of intangible assets acquired as part of a business combination that took place in August 2020 and certain acquired intangible assets in the fiscal year ended April 30, 2022. 12 Other expenses Our other expenses remained stable at US$0.4 million during the fiscal year ended April 30, 2021 and 2022 mainly due to tight cost control in view of the pandemic situation in the fiscal year ended April 30, 2022.
Profit for the year As a result of the foregoing, our profit increased from HK$171.6 million for the fiscal year ended April 30, 2021 to HK$201.4million (US$25.7 million) for the fiscal year ended April 30, 2022.
Profit for the year As a result of the foregoing, our profit increased from US$22.1 million for the fiscal year ended April 30, 2021 to US$25.8 million for the fiscal year ended April 30, 2022.
ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our consolidated financial statements and the related notes included elsewhere in this annual report on Form 20-F. This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties.
Item 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS The following discussion of our financial condition and results of operations is based upon, and should be read in conjunction with, our consolidated financial statements and the related notes included in this transition report on Form 20-F. This report contains forward-looking statements.
The principal items accounting for the changes in operating assets and liabilities were (i) HK$58.3 million of increase in account receivables primarily attributable to the increase in SpiderNet ecosystem solutions income, (ii) HK$12.5 million of decrease in prepayments and other receivables primarily attributable to the decrease in prepayment, (iii) HK$18.0 million of decrease in other payables and accruals primarily attributable to the decrease in other payables, and (iv) HK$9.3 million of increase in contract liabilities primarily attributable to the receipts in advance of SpiderNet ecosystem solutions income.
The principal items accounting for the changes in operating assets and liabilities were (i) US$7.5 million of increase in account receivables primarily attributable to the increase in digital solutions services - non financial services income, (ii) US$1.6 million of decrease in prepayments and other receivables primarily attributable to the decrease in prepayment, (iii) US$2.3 million of decrease in other payables and accruals primarily attributable to the decrease in other payables, and (iv) US$1.2 million of increase in contract liabilities primarily attributable to the receipts in advance of digital solutions services - non financial services income.
Taxation We had income tax expense of HK$23.7 million, HK$24.6 million and HK$23.6 million (US$3.0 million) for the fiscal years ended April 30, 2020, 2021, and 2022, respectively. The following summarizes our applicable tax rates in the Cayman Islands, Singapore, and Hong Kong.
Taxation We had income tax expense of US$3.2 million, US$3.0 million, US$4.5 million and US$2.0 million for the fiscal years ended April 30, 2021, 2022 and 2023 and six months ended October 31, 2023, respectively. The following summarizes our applicable tax rates in the Cayman Islands and Hong Kong.
We anticipate that this shift will be further accelerated by the recent COVID-19 pandemic, which forced a large part of the Asian population to adopt digital means for work, education, and commerce and to conduct their financial transactions electronically as they were subjected to various social distancing measures and travel restrictions.
This shift was further accelerated by the COVID-19 pandemic, which forced a large part of the population to adopt digital means for work, education, and commerce and to conduct their financial transactions electronically as they were subjected to various social distancing measures and travel restrictions. Furthermore, globalization and digitalization have enabled greater movements of people, goods, and services across borders.
Net cash from financing activities for the fiscal year ended April 30, 2021 was HK$7.9 million, which was attributable to (i) HK$27.1 million through issuance of ordinary shares, and (ii) HK$19.2 million net cash outflow of movement in amounts due to group companies in connection with intra-group treasury fund allocation.
Net cash from financing activities for the fiscal year ended April 30, 2021 was US$1.0 million, which was attributable to (i) US$3.5 million through issuance of ordinary shares, and (ii) US$2.5 million net cash outflow of movement in amounts due to group companies in connection with intra-group treasury fund allocation. 15 Capital Expenditures Our capital expenditures was US$22.3 thousand for the fiscal year ended April 30, 2021, US$232.7 thousand for the fiscal year ended April 30, 2022, and US$1.7 thousand for the fiscal year ended April 30, 2023 and US$17.0 thousand for the six months ended October 31 2023.
Premises and office expenses Our premises and office expenses increased by 10.6% from HK$4.7 million for the fiscal year ended April 30, 2020 to HK$5.2 million for the fiscal year ended April 30, 2021 mainly due to our business expansion in the fiscal year ended April 30, 2021.
Premises and office expenses Our premises and office expenses increased by 34.4% from US$0.7 million for the fiscal year ended April 30, 2022 to US$1.0 million for the fiscal year ended April 30, 2023 mainly due to our business expansion in the fiscal year ended April 30, 2023.
For reconciliation of segment revenue to consolidated revenue and reconciliation of segment results to consolidated profit before tax, see note 7 to our consolidated financial statements for the fiscal years ended April 30, 2020, 2021, and 2022 included elsewhere in this annual report.
For reconciliation of segment revenue to consolidated revenue and reconciliation of segment results to consolidated profit before tax, see note 6 to our consolidated financial statements included elsewhere in this transition report.
We entered into several movie income right agreements with third party independent production houses, pursuant to which we are entitled to benefits generated from the distribution of certain film programs.
We will make capital expenditure to meet the expected growth of our business. We intend to fund our future capital expenditure with our existing cash and bank balances. We entered into several movie income right agreements with third party independent production houses, pursuant to which we are entitled to benefits generated from the distribution of certain film programs.
Income tax expense We incurred income tax expense of HK$23.7 million and HK$24.6 million for the fiscal year ended April 30, 2020 and 2021, respectively. The increase in our income tax expense resulted from increase in assessable profits in the fiscal year ended April 30, 2021.
Income tax expense We incurred income tax expense of US$3.0 million and US$4.5 million for the fiscal year ended April 30, 2022 and 2023, respectively. The increase in our income tax expense resulted from increase in assessable profits in the fiscal year ended April 30, 2023.
Advertising and promotion expense Our advertising and promotion expense increased significantly to HK$2.5 million for the fiscal year ended April 30, 2021 mainly due to the increase in promotion activities to cope with our business expansion in the fiscal year ended April 30, 2021.
Advertising and promotion expense Our advertising and promotion expense increased by 25.5% from US$0.5 million for the fiscal year ended April 30, 2022 to US$0.7 million for the fiscal year ended April 30, 2023 mainly due to the increase in promotional activities in line with our business expansion in the fiscal year ended April 30, 2023.
However, should the Asian markets not embrace digital financial services as rapidly as we anticipate, our future results of operation could be affected. Our ability to expand into new markets and offer new products and services Digital financial services business is a highly regulated industry, and digital financial licenses are generally regulated separately across different product types and different regions.
Our ability to expand into new markets and offer new products and services Digital solutions services-financial services business is a highly regulated industry, and digital financial licenses are generally regulated separately across different product types and different regions.
Our commission income from the digital financial services segment increased from HK$11.7 million for the fiscal year ended April 30, 2021 to HK$11.8 million (US$1.5 million) for the fiscal year ended April 30, 2022. The segment income remains stable during the fiscal year ended April 30, 2022. • SpiderNet ecosystem solutions.
Our commission income from the digital solution services - financial services segment remained stable at US$1.5 million during the fiscal year ended April 30, 2021 and 2022. ● Digital solutions services - non financial services.
Any taxable income above HK$2,000,000 will be subject to a 16.5% Hong Kong profit tax. Under the Hong Kong tax laws, our Hong Kong subsidiaries are exempted from the Hong Kong income tax on our foreign-derived income. In addition, payments of dividends from our Hong Kong subsidiaries to us are not subject to any Hong Kong withholding tax.
Hong Kong Our Hong Kong subsidiaries are subject to an 8.25% Hong Kong profit tax on the first HK$2,000,000 of the taxable income generated from operations in Hong Kong. Any taxable income above HK$2,000,000 will be subject to a 16.5% Hong Kong profit tax.
SpiderNet ecosystem solutions segment The segment revenue of the SpiderNet ecosystem solutions segment increased from HK$184.1 million for the fiscal year ended April 30, 2021 to HK$184.6 million (US$23.5 million) for the fiscal year ended April 30, 2022 and the segment profit decreased from HK$144.3 million for the fiscal year ended April 30, 2021 to HK$136.6 million (US$17.4 million) for the fiscal year ended April 30, 2022, primarily due to the increase in revenue being offset by the increase in employee benefits expense incurred during the fiscal year ended April 30, 2022.
Digital solutions services - non financial services segment The revenue of the digital solutions services - non financial services segment remains stable at US$23.7 million during the fiscal year ended April 30, 2021 and 2022 and the segment profit decreased from US$18.6 million for the fiscal year ended April 30, 2021 to US$17.5 million for the fiscal year ended April 30, 2022, primarily due to the increase in employee benefits expense incurred during the fiscal year ended April 30, 2022.
Changes in fair value on financial assets measured at FVTPL Our changes in fair value on financial assets measured at FVTPL was HK$70.3 million in the fiscal year ended April 30, 2021, compared to HK$132.0 million (US$16.8 million) in the fiscal year ended April 30, 2022, primarily due to the realized and unrealized gain from certain investments in the fiscal year ended April 30, 2022. 91 Table of Contents The table below shows the details of our investment portfolio as of April 30, 2021 and 2022 and corresponding investment gains or losses for the fiscal year ended April 30, 2021 and 2022.
Changes in fair value on financial assets measured at FVTPL Our changes in fair value on financial assets measured at FVTPL was US$9.1 million in the fiscal year ended April 30, 2021, compared to US$16.9 million in the fiscal year ended April 30, 2022, primarily due to the realized and unrealized gain from certain investments in the fiscal year ended April 30, 2022.
Profit for the year As a result of the foregoing, our profit increased from HK$158.3 million for the fiscal year ended April 30, 2020 to HK$171.6 million for the fiscal year ended April 30, 2021.
Profit for the year As a result of the foregoing, our profit increased from US$25.8 million for the fiscal year ended April 30, 2022 to US$40.8 million for the fiscal year ended April 30, 2023.
Our net profit increased from HK$158.3 million for the fiscal year ended April 30, 2020 to HK$171.6 million for the fiscal year ended April 30, 2021, and to HK$201.4 million (US$25.7 million) for the fiscal year ended April 30, 2022. We continue to deepen and monetize our relationship with clients by cross-selling solutions that fill their unique needs.
Our net profit was US$22.1 million, US$25.8 million and US$40.8 million for the fiscal years ended April 30, 2021, 2022 and 2023, and US$10.7 million and US$30.8 million for the six months ended October 31, 2022 and 2023, respectively . We continue to deepen and monetize our relationship with clients by cross-selling solutions that fill their unique needs.
Adjustments for non-cash items included HK$70.3 million of changes in fair value on financial assets measured at FVTPL in connection with our digital investments business and digital media, content, and marketing business included in the corporate segment, HK$4.9 million of depreciation and amortization, and HK$0.9 million of share-based payment.
Adjustments for non-cash items included US$9.1 million of changes in fair value on financial assets measured at FVTPL, US$0.6 million of depreciation and amortization, and US$0.1 million of share-based payment.
Fiscal Year Ended April 30, 2022 Compared to Fiscal Year Ended April 30, 2021 Revenue Our revenue from contracts with customers increased from HK$195.8 million for the fiscal year ended April 30, 2021 to HK$197.0 million (US$25.1 million) for the fiscal year ended April 30, 2022, primarily due to the expansion of our SpiderNet ecosystem solutions business. • Digital financial services.
Fiscal Year Ended April 30, 2023 Compared to Fiscal Year Ended April 30, 2022 Revenue Our revenue from contracts with customers increased from US$25.3 million for the fiscal year ended April 30, 2022 to US$33.1 million for the fiscal year ended April 30, 2023, primarily due to the expansion of our digital solutions services - non financial services business and digital media, content, and marketing services business, and the acquisition of the hotel operations, hospitality and VIP services business. ● Digital solution services - financial services.
In the fiscal year ended April 30, 2022, the investment was disposed resulting in a realized gain of HK$130.6 million. 269.2 294.0 150.1 70.3 132.0 Employee benefits expense Our employee benefits expense increased by 50.8% from HK$48.0 million for the fiscal year ended April 30, 2021 to HK$72.4 million (US$9.2 million) for the fiscal year ended April 30, 2022, primarily due to an increase in staff cost, share-based compensation and number of staff in line with our business growth. 93 Table of Contents Premises and office expenses Our premises and office expenses increased by 11.5% from HK$5.2 million for the fiscal year ended April 30, 2021 to HK5.8 million (US$0.7 million) for the fiscal year ended April 30, 2022 mainly due to our business expansion in the fiscal year ended April 30, 2022.
Employee benefits expense Our employee benefits expense increased by 50.1% from US$6.2 million for the fiscal year ended April 30, 2021 to US$9.3 million for the fiscal year ended April 30, 2022, primarily due to an increase in staff cost, share-based compensation and number of staff in line with our business growth.
The principal items accounting for the changes in operating assets and liabilities were (i) HK$29.9 million (US$3.8 million) of decrease in account receivables primarily attributable to the increase in settlement of SpiderNet ecosystem solutions income, (ii) HK$23.5 million (US$3.0 million) of decrease in contract liabilities primarily attributable to the SpiderNet ecosystem solutions services rendered, (iii) HK$11.1 million (US$1.4 million) of increase in accruals and other payables primarily due to the increase in accrued expenses for listing, and (iv) tax payment of HK$41.5 million (US$5.3 million).
The principal items accounting for the changes in operating assets and liabilities were (i) US$3.8 million of decrease in account receivables primarily attributable to the increase in settlement of digital solutions services - non financial services income, (ii) US$3.0 million of decrease in contract liabilities primarily attributable to the digital solutions services - non financial services rendered, (iii) US$1.4 million of increase in accruals and other payables primarily due to the increase in accrued expenses for listing, and (iv) tax payment of US$5.3 million 14 Net cash generated from operating activities for the fiscal year ended April 30, 2021 was US$10.7 million, which consists of our profit before tax of US$25.3 million as adjusted for non-cash items and the effects of changes in operating assets and liabilities.
Premises and office expenses Our premises and office expenses mainly consist of premises cost, office utilities, and other miscellaneous office expenses. Legal and professional fee Our legal and professional fee mainly consist of audit services, professional liability insurance, and professional and legal expenses in connection with our restructuring.
Legal and professional fee Our legal and professional fee mainly consist of audit services, professional liability insurance and professional and legal expenses in connection with our continuous building and refining of organizational structure.
Other income Other income consists of interest income, and other non-recurring miscellaneous income. Other gains and losses Other gains and losses consist of (i) net exchange gain or loss, (ii) recovery of accounts and other receivables written off, and (iii) change in fair value on derivative financial liabilities.
Other gains and losses Other gains and losses consist of (i) net exchange gain or loss, (ii) recovery of accounts and other receivables written off, and (iii) gain on disposal of subsidiaries.
Our ability to attract, retain, and motivate talents It is essential for us to attract, retain, and motivate talent because our businesses are human capital intensive. We believe that it is necessary and customary to invest in talents, arguably our most important assets, with attractive compensation packages, as we compete to attract, retain, and motivate qualified employees.
We believe that it is necessary and customary to invest in talents, arguably our most important assets, with attractive compensation packages, as we compete to attract, retain, and motivate qualified employees. Key members of our management are also shareholders of our company, ensuring that interests and incentives are aligned with our performance.
In the future, we may consider to apply for banking licenses in other ASEAN countries such as Malaysia, Vietnam, and Indonesia, as regulations allow, and may also consider to obtain financial licenses in other areas, such as digital insurance, digital assets exchange, and digital payment.
In the future, we may consider to apply for banking licenses in Asia, as regulations allow, and may also consider to obtain financial licenses in other areas, such as digital insurance, digital assets exchange, and digital payment. If we are unable to expand into new markets, our future results of operations could be affected.
Our cash and cash equivalents primarily consist of cash on hand and general bank balances excluding fiduciary bank balances representing client’s cash, which are unrestricted for withdrawal or use. Our total indebtedness was nil as of April 30, 2022.
As of April 30, 2023 and October 31, 2023, we had US$152.9 million and US$134.8 million in cash and cash equivalents, respectively. Our cash and cash equivalents primarily consist of cash on hand and general bank balances excluding cash and cash equivalents of disposal group fiduciary bank balances representing client’s cash, which are unrestricted for withdrawal or use.
Operating Results As the fusion reactor at the core of the AMTD SpiderNet ecosystem, we are a comprehensive digital solutions platform in Asia with businesses spanning multiple verticals, including digital financial services, SpiderNet ecosystem solutions, digital media, content, and marketing, and digital investments.
Operating Results We are a comprehensive digital solutions platform headquartered in France with businesses spanning multiple verticals, including digital solutions services, digital media, content and marketing services, digital investments as well as hotel operation, hospitality and VIP services .
Corporate The segment profit of corporate segment, which mainly consisted of changes in fair value on financial assets measured at FVTPL from our investments in innovative companies, was HK$136.3 million (US$17.4 million) for the fiscal year ended April 30, 2022, compared to HK$70.8 million for the fiscal year ended April 30, 2021, primarily due to the realized and unrealized gain from certain investments the fiscal year ended April 30, 2022. 90 Table of Contents For reconciliation of segment revenue to consolidated revenue and reconciliation of segment results to consolidated profit before tax, see note 7 to our consolidated financial statements for the fiscal years ended April 30, 2021, and 2022 included elsewhere in this annual report.
Digital media, content, and marketing services and others The profit of digital media, content, and marketing services and others segment, which mainly consisted of changes in fair value on financial assets measured at FVTPL from our investments in innovative companies, was US$17.5 million for the fiscal year ended April 30, 2022, compared to US$9.1 million for the fiscal year ended April 30, 2021, primarily due to the realized and unrealized gain from certain investments the fiscal year ended April 30, 2022.
Corporate The segment profit of corporate segment, which mainly consisted of changes in fair value on financial assets measured at FVTPL from our investments in innovative companies, was HK$70.3 million for the fiscal year ended April 30, 2021, compared to HK$43.6 million for the fiscal year ended April 30, 2020, primarily due to the increase in the fair value of our investments portfolio driven by the business growth of the investees as of April 30, 2021.
Digital media, content, and marketing services and others The profit of digital media, content, and marketing services and others segment, which mainly consisted of changes in fair value on financial assets measured at FVTPL from our investments in innovative companies and movies, was US$19.3 million for the fiscal year ended April 30, 2023, compared to US$17.5 million for the fiscal year ended April 30, 2022, primarily due to the realized and unrealized gain in fair value from certain investments and the increase in the digital media, content, and marketing services income during the fiscal year ended April 30, 2023.
The incurrence of indebtedness would result in an increase in fixed obligations and could result in operating covenants that would restrict our operations. We cannot assure you that financing will be available in amounts or on terms acceptable to us, if at all.
The incurrence of indebtedness would result in an increase in fixed obligations and could result in operating covenants that would restrict our operations.
Net cash used in investing activities for the fiscal year ended April 30, 2020 was HK$674.5 million, which was attributable to (i) HK$318.1 million of proceeds from disposal of financial assets at fair value through profit or loss, and (ii) HK$1,008.2 million of movement in amounts due from group companies in connection with intra-group treasury fund allocation.
Net cash used in investing activities for the fiscal year ended April 30, 2023 was US$119.5 million, which was mainly attributable to (i) US$179.2 million of net cash outflow from movement in amount due from AMTD Group in connection with intra-group treasury fund allocation, (ii) proceeds from disposal of financial assets at FVTPL of US$58.2 million, (iii) US$3.9 million of net cash inflow on acquisition of AMTD Assets, (iv) consideration paid of US$5.5 million for the acquisition of a movie right investments and (v) interest received of US$3.1 million.
Depreciation and amortization Our depreciation and amortization mainly consists of amortization of intangible assets. Advertising and promotion expenses Our advertising and promotion expenses mainly consist of expenses incurred to promote and enhance our branding. Other expenses Our other expenses mainly consist of traveling and business development expenses, donation, and other miscellaneous expenses.
Depreciation and amortization Our depreciation and amortization mainly consists of amortization of intangible assets. 3 Advertising and promotion expenses Our advertising and promotion expenses mainly consist of expenses incurred to promote and enhance our branding. Finance costs Our finance costs mainly consist of interest expenses on bank borrowings and amount due to a non-controlling shareholder.
Other expenses Our other expenses decreased by 3.0% from HK$3.3 million for the fiscal year ended April 30, 2021 to HK$3.2 million (US$0.4 million) for the fiscal year ended April 30, 2022 mainly due to tight cost control in view of the pandemic situation in the fiscal year ended April 30, 2022.
Other expenses Our other expenses increased by 503.0% from US$0.4 million for the fiscal year ended April 30, 2022 to US$2.4 million for the fiscal year ended April 30, 2023 mainly due to the incurrence of hotel operating cost after the completion of the acquisition of AMTD Assets in February 2023 and the increase in administrative expenses after our listing in July 2022.
Our fee income from the SpiderNet ecosystem solutions segment increased from HK$184.1 million for the fiscal year ended April 30, 2021 to HK$184.6 million (US$23.5 million) for the fiscal year ended April 30, 2022, primarily due to our expansion of the SpiderNet ecosystem solutions business for the fiscal year ended April 30, 2022.
Our digital media, content, and marketing services income from digital media, content, and marketing services and others segment increased from US$68 thousand for the fiscal year ended April 30, 2022 to US$1.3 million for the fiscal year ended April 30, 2023, primarily due to the expansion of the digital media, content, and marketing services during the fiscal year ended April 30, 2023.
We derive fee income primarily from two business lines: (i) digital financial services, which currently consists entirely of insurance brokerage income, where we charge fees and commissions from insurance purchasers, which are paid either directly to us or through insurance provider partners, (ii) SpiderNet ecosystem solutions, where we recognize our fee income over the period of contracts.
We derive fee income primarily from four business lines: (i) digital solutions services-financial services, which currently consists entirely of insurance brokerage income, where we charge fees and commissions from insurance purchasers, which are paid either directly to us or through insurance provider partners, (ii) digital solutions services — non financial services, where we recognize our fee income over the period of contracts, (iii) digital media, content, and marketing services business income in which we create and promote digital content by investing in and developing multimedia channels to provide users and audiences access to content medium through a comprehensive library of traditional and digital movies, podcasts, webinars and live videos offered by content providers and online media platforms, and (iv) hotel operations, hospitality and VIP services, which represents hotel and property investments and hotel operations and management since the acquisition of AMTD Assets in February 2023.
The revenue that we generate from our digital financial services business will depend in a large part on the rate at which the Asian population embraces digital financial services. We anticipate rapid growth in our future digital financial services, contributing to the growing scale of our revenue.
There has been increasing trade among the economies of Asia, which will benefit financial institutions like us that can provide seamless, comprehensive digital financial solutions across borders. The revenue that we generate from our digital solutions services-financial services business will depend in a large part on the rate at which the global population embraces digital solutions services-financial services.
Fiscal Year Ended April 30, 2021 Compared to Fiscal Year Ended April 30, 2020 Revenue Our revenue from contracts with customers increased from HK$167.5 million for the fiscal year ended April 30, 2020 to HK$195.8 million for the fiscal year ended April 30, 2021, primarily due to the expansion of our SpiderNet ecosystem solutions business. • Digital financial services.
Fiscal Year Ended April 30, 2022 Compared to Fiscal Year Ended April 30, 2021 Revenue Our revenue from contracts with customers remained stable at US$25.3 million for the fiscal years ended April 30, 2021 and 2022. ● Digital solution services - financial services.
Investment K (digital financing solutions platform) 7.8 — — 10.1 — The investment was fully disposed during the year ended April 30, 2020 with realized gain of HK$10.1 million. 284.8 208.7 294.0 43.6 70.3 Employee benefits expense Our employee benefits expense increased by 215.8% from HK$15.2 million for the fiscal year ended April 30, 2020 to HK$48.0 million for the fiscal year ended April 30, 2021, primarily due to an increase in staff cost and number of staff in connection with our business growth.
Changes in fair value on financial assets measured at FVTPL Our changes in fair value on financial assets measured at FVTPL was US$16.9 million in the fiscal year ended April 30, 2022, compared to US$15.4 million in the fiscal year ended April 30, 2023, primarily due to the realized and unrealized gain in fair value from certain investments in the fiscal year ended April 30, 2023. 9 Employee benefits expense Our employee benefits expense increased by 6.2% from US$9.3 million for the fiscal year ended April 30, 2022 to US$9.9 million for the fiscal year ended April 30, 2023, primarily due to an increase in staff cost and number of staff in line with our business growth.
Net cash generated from operating activities for the fiscal year ended April 30, 2020 was HK$213.8 million, which consists of our profit before tax of HK$182.0 million as adjusted for non-cash items and the effects of 99 Table of Contents changes in operating assets and liabilities.
The principal items accounting for the changes in operating assets and liabilities were (i) US$4.3 million of increase in account receivables primarily attributable to the digital solutions services - non financial services income rendered, (ii) US$4.5 million of increase in contract liabilities primarily attributable to the upfront fee for received from digital solutions services - non financial services business, (iii) US$1.5 million of decrease in prepayments, deposits and other receivables, and (iv) tax payment of US$4.1 million Net cash generated from operating activities for the fiscal year ended April 30, 2022 was US$10.3 million, which consists of our profit before tax of US$28.9 million as adjusted for non-cash items and the effects of changes in operating assets and liabilities.
For the Year Ended April 30, 2020 2021 2022 HK$ % HK$ % HK$ US$ % (in thousands, except for percentages) Revenue Digital financial services business income 9,869 5.9 11,721 6.0 11,798 1,503 6.0 SpiderNet ecosystem solutions business income 157,678 94.1 184,095 94.0 184,627 23,530 93.7 Corporate — — — — 533 68 0.3 Total 167,547 100.0 195,816 100.0 196,958 25,101 100.0 87 Table of Contents Changes in fair value on financial assets measured at FVTPL We record changes in fair value on financial assets measured at FVTPL with respect to our digital investments and movie investments.
For the Year Ended April 30, For the Six Months Ended October 31, 2021 2022 2023 2022 2023 US$ % US$ % US$ % US$ % US$ % (in thousands, except for percentage) Revenue Digital solutions services - non financial services business income 23,740 94.0 23,689 93.7 28,037 84.8 12,822 92.1 1,278 14.7 Digital solutions services - financial services business income 1,511 6.0 1,514 6.0 1,540 4.7 580 4.2 486 5.6 Digital media, content, and marketing services business income - - 68 0.3 1,294 3.9 516 3.7 27 0.3 Hotel operations, hospitality and VIP services business income - - - - 2,195 6.6 - - 6,882 79.4 Total 25,251 100.0 25,271 100.0 33,066 100.0 13,918 100.0 8,673 100.0 Changes in fair value on financial assets measured at fair value through profit or loss (FVTPL) We record changes in fair value on financial assets measured at FVTPL with respect to our digital investments and movie investments.
Our commission income from the digital financial services segment increased from HK$9.9 million for the fiscal year ended April 30, 2020 to HK$11.7 million for the fiscal year ended April 30, 2021, primarily due to the acquisition of PolicyPal during the fiscal year ended April 30, 2021. • SpiderNet ecosystem solutions.
Our fee income from the digital solutions services - non financial services segment increased from US$23.7 million for the fiscal year ended April 30, 2022 to US$28.0 million for the fiscal year ended April 30, 2023, primarily due to the increase in fee income as the result of the higher contracts sum for the renewed contracts of existing clients and new contracts of new clients in general during the fiscal year ended April 30, 2023. ● Hotel operations, hospitality and VIP services.
Fiscal Year Ended April 30, 2021 Compared to Fiscal Year Ended April 30, 2020 Digital financial services segment The segment revenue of the digital financial services segment increased from HK$9.9 million for the fiscal year ended April 30, 2020 to HK$11.7 million for the fiscal year ended April 30, 2021.
Profit for the year As a result of the foregoing, our profit increased from US$10.7 million for the six months ended October 31, 2022 to US$30.8 million for the six months ended October 31, 2023. 8 Fiscal Year Ended April 30, 2023 Compared to Fiscal Year Ended April 30, 2022 Digital solutions services - financial services segment The revenue and segment profit of the digital solutions services - financial services segment remained stable at US$1.5 million and US$0.1 million, respectively, for the fiscal year ended April 30, 2023.
Our net cash generated from operating activities for the fiscal years ended April 30, 2020, and 2021, and 2022 was HK$213.8 million, HK$82.9 million and HK$80.0 million (US$10.2 million), respectively.
Our revenue was US$25.3 million, US$25.3 million and US$33.1 million for the fiscal years ended April 30, 2021, 2022 and 2023, and US$13.9 million and US$8.7 million for the six months ended October 31, 2022 and 2023, respectively.
Other expenses Our other expenses increased significantly by 106.3% from HK$1.6 million for the fiscal year ended April 30, 2020 to HK$3.3 million for the fiscal year ended April 30, 2021 mainly due to our business expansion in the fiscal year ended April 30, 2021.
Depreciation and amortization Our depreciation and amortization expenses increased by 55.1% from US$0.8 million for the fiscal year ended April 30, 2022 to US$1.3 million for the fiscal year ended April 30, 2023 mainly due to the increase in depreciation arising from the hotel operations, hospitality and VIP services segment which was acquired in February 2023.
Our revenue increased from HK$167.5 million for the fiscal year ended April 30, 2020 to HK$195.8 for the fiscal year ended April 20, 2021, and to HK$197.0 million (US$25.1 million) for the fiscal year ended April 30, 2022.
Legal and professional fee Our legal and professional fee slightly decreased by 4.0% from US$3.0 million for the fiscal year ended April 30, 2022 to US$2.9 million for the fiscal year ended April 30, 2023.
Financing Activities There was no cash from financing activities for the fiscal year ended April 30, 2022.
Net cash from financing activities for the fiscal year ended April 30, 2023 was US$243.5 million, which was attributable to (i) US$15.0 million of proceeds from bank borrowings, and (ii) US$229.2 million of net proceeds from issue of shares and IPO listing. There was no cash from financing activities for the fiscal year ended April 30, 2022.
Unfavorable changes in any of these general factors could adversely affect demand for our services and materially and adversely affect our results of operations. 85 Table of Contents Rate of adoption of digital financial services in Asia We operate digital financial services business in Singapore, Hong Kong, and in the future, other markets in Asia.
Unfavorable financial markets and economic conditions could negatively affect our clients’ businesses and materially reduce demand for our products and services and increase price competition, and thus could materially and adversely affect our business, financial condition, and results of operations. 1 Rate of adoption of digital solutions services — financial services in Asia Consumers in Asia are rapidly embracing digital banking, insurance, and other digital finance services.
Adjustments for non-cash items included HK$43.6 million of changes in fair value on financial assets measured at FVTPL in connection with our digital investments business and HK$5.9 million of fair value change from derivative financial liabilities.
Adjustments for non-cash items included US$15.4 million of changes in fair value on financial assets measured at FVTPL, US$15.9 million of bank and other interest income, US$0.2 million of share-based payment, US$0.4 million of share of losses of joint ventures, US$1.2 million of finance costs, and US$1.3 million of depreciation and amortization.
Taxation.” Results of Operations For the Year Ended April 30, 2020 2021 2022 HK$ % HK$ % HK$ US$ % (in thousands, except for percentages) Revenue 167,547 100.0 195,816 100.0 196,958 25,101 100.0 Employee benefits expense (15,168 ) (9.1 ) (48,026 ) (24.5 ) (72,426 ) (9,230 ) (36.8 ) Advertising and promotion expense — * — (2,547 ) (1.3 ) (4,066 ) (518 ) (2.1 ) Premises and office expenses (4,737 ) (2.8 ) (5,230 ) (2.7 ) (5,772 ) (736 ) (2.9 ) Legal and professional fee (1,952 ) (1.2 ) (6,850 ) (3.5 ) (23,456 ) (2,989 ) (11.9 ) Depreciation and amortization — — (4,896 ) (2.5 ) (6,596 ) (841 ) (3.3 ) Other expenses (1,649 ) (1.0 ) (3,323 ) (1.7 ) (3,165 ) (403 ) (1.7 ) Changes in fair value on financial assets measured at fair value through profit or loss (“FVTPL”) 43,592 26.0 70,291 35.9 132,032 16,827 67.0 Other income — — 1,323 0.7 6,755 860 3.5 Other gains and losses, net (5,586 ) (3.3 ) (306 ) (0.2 ) 4,746 605 2.4 Profit before tax 182,047 108.6 196,252 100.2 225,010 28,676 114.2 Income tax expense (23,715 ) (14.1 ) (24,611 ) (12.6 ) (23,614 ) (3,009 ) (12.0 ) Profit for the year 158,332 94.5 171,641 87.6 201,396 25,667 102.2 Item that may be reclassified subsequently to profit or loss: Exchange differences arising on translation of foreign operation — — 828 0.4 (823 ) (105 ) (0.4 ) Other comprehensive income (expense) for the year/period — — 828 0.4 (823 ) (105 ) (0.4 ) Total comprehensive income for the year 158,332 94.5 172,469 88.0 200,573 25,562 101.8 Note: * The advertising and promotion expense for the fiscal years ended April 30, 2020 was insignificant and included in other expenses. 89 Table of Contents Segment Information We report our results of operations in three reportable segments: digital financial services, SpiderNet ecosystem solutions, and corporate (including digital investments business and digital media, content, and marketing business), which correspond to our business lines.
In addition, payments of dividends from our Hong Kong subsidiaries to us are not subject to any Hong Kong withholding tax. 4 Results of Operations For the Year Ended April 30, For the Six Months Ended October 31, 2021 2022 2023 2022 2023 US$ % US$ % US$ % US$ % US$ % (in thousands, except for percentages) Revenue 25,251 100.0 25,271 100.0 33,066 100.0 13,918 100.0 8,673 100.0 Employee benefits expense (6,193 ) (24.5 ) (9,293 ) (36.8 ) (9,868 ) (29.8 ) (3,761 ) (27.0 ) (3,074 ) (35.4 ) Advertising and promotion expense (328 ) (1.3 ) (522 ) (2.1 ) (655 ) (2.0 ) (318 ) (2.3 ) (177 ) (2.0 ) Premises and office expenses (674 ) (2.7 ) (741 ) (2.9 ) (996 ) (3.0 ) (482 ) (3.5 ) (1,486 ) (17.1 ) Legal and professional fee (883 ) (3.5 ) (3,010 ) (11.9 ) (2,891 ) (8.7 ) (1,199 ) (8.6 ) (1,338 ) (15.4 ) Depreciation and amortization (631 ) (2.5 ) (846 ) (3.3 ) (1,312 ) (4.0 ) (421 ) (3.0 ) (1,441 ) (16.6 ) Other expenses (430 ) (1.7 ) (405 ) (1.6 ) (2,442 ) (7.4 ) (498 ) (3.6 ) (4,586 ) (52.9 ) Finance costs — — — — (1,195 ) (3.6 ) — — (3,403 ) (39.2 ) Changes in fair value on financial assets measured at fair value through profit or loss (“FVTPL”) 9,063 35.9 16,940 67.0 15,386 46.5 351 2.5 16,279 187.7 Other income 171 0.7 867 3.4 16,052 48.5 4,852 34.9 8,988 103.6 Other gains and losses, net (39 ) (0.2 ) 609 2.4 153 0.5 (42 ) (0.3 ) 14,342 165.4 Profit before tax 25,307 100.2 28,870 114.2 45,298 137.0 12,400 89.1 32,777 378.1 Income tax expense (3,173 ) (12.5 ) (3,030 ) (11.9 ) (4,485 ) (13.6 ) (1,731 ) (12.4 ) (1,991 ) (23.0 ) Profit for the period 22,134 87.7 25,840 102.3 40,813 123.4 10,669 76.7 30,786 355.1 Other comprehensive income (expense) for the period: Item that will not be reclassified to profit or loss: Exchange differences on translation from functional currency to presentation currency (574 ) (2.3 ) (4,145 ) (16.4 ) (30 ) (0.1 ) — — 1,168 13.5 Items that may be reclassified subsequently to profit or loss: Exchange differences arising on translation of foreign operations 107 0.4 (106 ) (0.4 ) (960 ) (2.9 ) (111 ) (0.8 ) (956 ) (11.0 ) Share of other comprehensive expense of joint ventures — — — — 377 1.1 — — 126 1.5 107 0.4 (106 ) (0.4 ) (583 ) (1.8 ) (111 ) (0.8 ) (830 ) (9.5 ) Other comprehensive income (expense) for the period (467 ) (1.9 ) (4,251 ) (16.8 ) (613 ) (1.9 ) (111 ) (0.8 ) 338 4.0 Total comprehensive income for the period 21,667 85.8 21,589 85.5 40,200 121.5 10,558 75.9 31,124 359.1 5 Segment Information We report our results of operations in four reportable segments: digital solutions services - financial services, digital solutions services - non financial services, hotel operations, hospitality and VIP services, and digital media, content and marketing services and others, which correspond to our business lines.
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Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under “Item 3. Key Information—D. Risk Factors” and elsewhere in this annual report. A.
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See “Forward-Looking Information.” In evaluating our business, you should carefully consider the information provided under the caption “Item 3. Key Information—D. Risk Factors” of our annual report on Form 20-F filed with the United States Securities and Exchange Commission on August 23, 2023, or our 2023 Annual Report.
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We generate revenue primarily from fees and commissions from our digital financial services business and SpiderNet ecosystem solutions business during the fiscal years ended April 30, 2020, 2021 and 2022. We have achieved tremendous growth since the launch of our SpiderNet ecosystem solutions business in December 2017 as a result of the continued expansion and monetization of AMTD SpiderNet ecosystem.
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We caution you that our businesses and financial performance are subject to substantial risks and uncertainties. We changed our basis of accounting from IFRS to U.S. GAAP.
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Key Factors Affecting Our Results of Operations Our business and results of operations are affected by a number of general factors that impact the digital financial services and SpiderNet ecosystem solutions industries in Asia, including, among others, our ability to provide digital financial services across different markets in Asia, our ability to adopt and monetize the increasing reliance and application on digital financial services arising from the post-COVID-19 paradigm shift, our ability to empower and extract value from the entrepreneurs joining our fusion-in program, overall economic environment in Asia, conditions and trends of financial and capital markets, the competitive environment, and government policies and initiatives affecting the digital financial services and SpiderNet ecosystem solutions industries.
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Our consolidated financial statements for the years ended April 30, 2021, 2022 and 2023 and the six months ended October 31, 2023 and as of April 30, 2021, 2022 and 2023 and October 31, 2023 included elsewhere in this transition report have been prepared in accordance with U.S. GAAP.
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With the addition of PolicyPal and the proposed transactions with CapBridge (currently subject to negotiation of terms of the transaction, as well as MAS approval), the planned launch of Singa Bank and Applaud (currently subject to MAS approval), and the further digitalization of our insurance business, we expect rapid increase in our revenue from digital financial services business in the future.
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We generate revenue primarily from fees and commissions from our digital solutions services, digital media, content and marketing services business, digital investments, as well as hotel operation, hospitality and VIP services business.
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