Required:

Compare and contrast the presentation of Income Statement with Company A and Company B, analyse its financial performance and operation results with recommendation.

Company A - Income Statement CONSOLIDATED INCOME STATEMENT For the year ended December 3|. 2019 Year ended December 31. 201'? HKD '00:) Revenue 205,833,682 Cost of sales [177,284,649] Gross profit 28,556,033 Selling and marketing expenses [10,378,073] Administrative expenses [3.103301] Research and development expenses 17,492,554] Fair value changes on investments measured at fair value through profit or loss 3.813.012 Share of losses of investments accounted for using the equity method [671,822] Other income 1,265,921 Other [losseslfgains net (226.39\"?! Operating prot 11,760,217 Finance income. net 402.429 Fair value changes of convertible redeemable preferred shares Prolit before income tax 12,162,646 Income tax expenses 12,059,696} Prolit for the gear 10,102,950 Attributable to: Owners of the Company 10,044,161. Noncontrolling interests 53,786 10,102,950 Earnings per share [expressed in HKD per sharel: Basic 0.423 Diluted 0.510 Company B - Income Statement CONSOLIDATED INCOME STATEMENT Year ended December 31, 2019 HKD'000 Revenues Commission 65,525,997 Online marketing services 15,840,078 Interest revenue 786,032 Other services and sales 15,376,424 97,528,531 Cost of revenues (65,208,143) Gross profit 32,320,388 Selling and marketing expenses (18,819,067) Research and development expenses (8,445,664) General and administrative expenses (4,338,954) Net provision for impairment losses on financial assets (645,685) Fair value changes on investments measured at fair value through profit or loss 77,699 Other gains, net 2,531,143 Operating profit/(loss) 2,679,860 Finance income 166,217 Finance costs (191,042) Fair value changes of convertible redeemable preferred shares Share of gains/(losses) of investments accounted for using equity method 107,353 Profit/(loss) before income tax 2,762,388 Income tax expenses (526,223) Profit/(loss) for the year 2,236,165 Profit/(loss) for the year attributable to: Equity holders of the Company 2,238,769 Non-controlling interests (2,604) 2,236,165 Earnings/(loss) per share for profit/(loss) for the year attributable to the equity holders of the Company Basic earnings/(loss) per share (HKD) 14 0.39 Diluted earnings/(loss) per share (HKD) 14 0.38 150