As of September 30, 2021, a total of 310 sets of artwork were listed for trade on the Platform — comprising 85 sets of paintings and calligraphies from famous Chinese, Russian and Mongolian artists, with a total listing value of $33,357,795 (HK$259,100,000); 35 pieces of jewelry with a total listing value of $9,354,602 (HK$72,660,000); 134 pieces of precious stones with a total listing value of $16,999,472 (HK$132,040,000); 29 pieces of amber with a total listing value of $12,230,762 (HK$95,000,000); 4 pieces of antique mammoth ivory carvings with a total listing value of $669,473 (HK$5,200,000); 2 pieces of porcelain pastel paintings with a total listing value of $334,737 (HK$2,600,000); 7 pieces of porcelain with a total listing value of $1,094,331 (HK$8,500,000); 6 sets of Unit+ products with a total listing value of $1,327,875 (HK$10,314,000); 1 piece of Yixing collectable with a listing value of $128,745 (HK$1,000,000); and 7 pieces of Sports memorabilia with a listing value of $1,095,542 (HK$8,509,400), of which 22%-48% (for 85 sets of paintings), 24%-48.5% (for the 134 pieces of precious stones), 29%-48% (for the 35 pieces of jewelry), 47%-48.5% (for 4 piece of antique mammoth ivory carvings), 32%-48% (for the 29 pieces of amber), 45%-46% (for the 2 pieces of porcelain pastel paintings), 25%-48% (for the 7 pieces of porcelain), 30.25%-45% (for the 6 sets of Unit+ products), 45% (1 piece of Yixing collectable) and 45% (for the 7 pieces of Sports memorabilia) of the listed values were charged as listing fees, respectively.
During the three months ended September 30, 2021, there were 11 new sets of painting listed on the Platform. The total listing value was $1,457,567 (HK$11,500,000) for the painting, of which 22% (for the painting) of the listed value was charged as the listing fee.
As of September 30, 2020, a total of 292 sets of artwork were listed for trade on the Platform —comprising 67 sets of paintings and calligraphies from famous Chinese, Russian and Mongolian artists, with a total listing value of $28,502,185 (HK$221,100,000); 35 pieces of jewelry with a total listing value of $9,366,661 (HK$72,660,000); 134 pieces of precious stones with a total listing value of $17,021,386 (HK$132,040,000); 29 pieces of amber with a total listing value of $12,246,529 (HK$95,000,000); 4 pieces of antique mammoth ivory carvings with a total listing value of $670,336 (HK$5,200,000); 2 pieces of porcelain pastel paintings with a total listing value of $335,168 (HK$2,600,000); 7 pieces of porcelain with a total listing value of $1,095,742 (HK$8,500,000); 6 sets of Unit+ products with a total listing value of $1,329,586 (HK$10,314,000); 1 piece of Yixing collectable with a listing value of $128,911 (HK$1,000,000); and 7 pieces of Sports memorabilia with a listing value of $1,096,954 (HK$8,509,400), of which 22.5%-48% (for 67 sets of paintings), 24%-48.5% (for the 134 pieces of precious stones), 29%-48% (for the 35 pieces of jewelry), 47%-48.5% (for 4 piece of antique mammoth ivory carvings), 32%-48% (for the 29 pieces of amber), 45%-46% (for the 2 pieces of porcelain pastel paintings), 25%-48% (for the 7 pieces of porcelain), 30.25%-45% (for the 6 sets of Unit+ products), 45% (1 piece of Yixing collectable) and 45% (for the 7 pieces of Sports memorabilia) of the listed values were charged as listing fees, respectively.
During the three months ended September 30, 2020, there were no new artworks listed on the Platform because of the uncertain economic climate and tepid investor interest. We incurred $320,173 listing fee revenue for the three months ended September 30, 2021 compared to nil for the same period in 2020. There were 11 new sets of painting listed on our trading platform during the three months ended September 30, 2021 whereas there was no new artwork listed on the Platform in the same period in 2020.
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(ii)
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Commission fee revenue
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We generate commission fee from non-VIP traders and selected traders as follows:
For non-VIP traders, the commission revenue was calculated based on a percentage of transaction value of artworks, where we charge trading commissions for the purchase and sale of the ownership shares of the artworks. The commission is typically 0.3% of the total amount of each transaction, we currently charge a reduced fee of 0.2% (resulting in an aggregate of 0.4% for both buy and sell transactions) of the total transaction amount with the minimum charge of $0.0013 (HK$0.01).
For selected traders, starting from April 1, 2016, we charged a predetermined monthly fee (unlimited trades for specific artworks) for specific artworks. These traders are selected by authorized agents and reviewed by us. After review, we negotiate individually with each one of them to determine a fixed monthly fee. Different traders may have different rates but once negotiated and agreed to, the monthly fee is fixed. Using the output method, we recognize the monthly commission revenue when the selected traders receive access to our trading platform to make unlimited trades for specific artwork.
We define traders as “inactive” if they meet the following criteria;
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The trader defaults in payment over three months;
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The trader did not incur any transactions in the month of reassessment;
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