香港交易及結算所有限公司及香港聯合交易所有限公司對本通函之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本通函全部或任何部分內容而產生或因依賴 該等內容而引致之任何損失承擔任何責任。 此乃要件 請即處理 閣下如對本通函任何方面或應採取之行動有任何疑問，應諮詢 閣下之股票經紀或其他註冊證 券商、銀行經理、律師、專業會計師或其他專業顧問。 閣下如已售出或轉讓名下全部International Genius Company之股份，應立即將本通函及隨附之 代表委任表格送交買主或承讓人，或經手買賣或轉讓之銀行、股票經紀或其他代理，以便轉交 買主或承讓人。 INTERNATIONAL GENIUS COMPANY 閣下如未能出席股東週年大會，務請將代表委任表格按照其上印列之指示填妥及簽署，並盡快 交回本公司之香港股份過戶及登記分處卓佳證券登記有限公司（地址為香港夏愨道16號遠東金 融中心17樓），惟無論如何須於股東週年大會或其任何續會指定舉行時間不少於48小時前（即不 遲於二零二四年十二月十一日（星期三）下午三時正）交回。填妥並交回代表委任表格後， 閣 下仍可依願親身出席股東週年大會或其任何續會並 ...

Acquisition and Strategic Transformation - The company successfully acquired Deep Neural Computing Company Limited (DNCC), a leader in AI, deep neural networks, and quantitative trading algorithms, marking a strategic shift towards AI-driven trading technology solutions [5]. - The company reported a strategic transformation to become a provider of AI trading technology solutions, responding to evolving market dynamics [10]. - The company aims to optimize operational capabilities and enhance customer service through the integration of DNCC into its investment management services [5]. - The acquisition of DNCC contributed approximately HKD 9.22 million in revenue post-acquisition, enhancing the company's capabilities in AI-driven investment strategies [15]. - The company completed the acquisition of DNCC's entire issued share capital on March 22, 2024, enhancing its technology-driven investment management business [28]. - The company has developed multiple trading algorithms based on machine learning and deep learning, commercializing its core product "IGC Prophet" for various international financial trading fields [33]. Financial Performance - Total revenue for the year ended June 30, 2024, was HKD 226.71 million, a decrease of 32.11% from HKD 333.96 million in the same period last year [11]. - Gross profit increased to HKD 13.07 million, up fourfold from HKD 3.18 million, with a gross margin improvement from 0.95% to 5.76% [11]. - The company reported a pre-tax loss of HKD 38,492 thousand, which is comparable to the pre-tax loss of HKD 38,539 thousand in 2023 [200]. - The net loss for the year was HKD 39,988 thousand, compared to a net loss of HKD 38,707 thousand in the previous year [200]. - The overall financial performance indicates challenges in revenue generation and increased costs, necessitating strategic adjustments moving forward [200]. Cost Management and Operational Efficiency - Despite a decline in total revenue, the company improved its gross margin due to effective cost management, indicating resilience amid global economic uncertainties [6]. - The company remains committed to maintaining a strong financial foundation while exploring strategic growth opportunities despite market challenges [22]. - The company aims to maintain high business ethics while providing stable returns to shareholders [35]. Shareholder and Capital Management - The company issued new shares to finance the acquisition of DNCC, strengthening its capital structure and providing flexibility for future growth plans [6]. - The company raised approximately HKD 286 million from the rights issue and subscription, with net proceeds of about HKD 284 million after expenses [25]. - The company has a significant shareholder with 390,821,084 shares, representing 70.01% of the issued share capital [157]. - The company reported no dividends for the reporting period [151]. Employee Management and Corporate Governance - A new employee stock option plan was launched to attract and retain top talent, ensuring the company has the right personnel to drive innovation [7]. - The company employed 35 staff as of June 30, 2024, down from 36 staff as of June 30, 2023 [31]. - The company has established arrangements for employees to confidentially report any concerns regarding financial reporting or internal controls [45]. - The company has adopted the corporate governance code and has complied with its provisions, except for the absence of a chairman since July 25, 2023 [35]. Environmental, Social, and Governance (ESG) Initiatives - The company reported a significant focus on environmental, social, and governance (ESG) strategies, reflecting its commitment to sustainable development and corporate social responsibility [84]. - The company aims to minimize its operational impact on the environment while creating value for the community, employees, and stakeholders [86]. - The company successfully reduced nitrogen oxide emissions from 1.96 kg in 2023 to 0.56 kg in 2024, representing a 71.43% decrease [97]. - The company has established a waste reduction program, encouraging the use of recycled paper and double-sided printing [100]. - The company has implemented policies for effective resource usage, including energy, water, and raw materials [132]. Risk Management and Compliance - The company has implemented a comprehensive legal and compliance risk management framework to mitigate risks associated with regulatory changes [172]. - The audit committee is responsible for overseeing the appointment and remuneration of external auditors, ensuring transparency and accountability in financial reporting [43]. - The company has established a whistleblowing policy to allow employees and business partners to report concerns regarding misconduct or unethical behavior confidentially [75]. - The company has not reported any violations of laws related to child labor or forced labor during the reporting period [121].

Financial Performance - Revenue for the year ended June 30, 2024, was HKD 226,711,000, a decrease of 32% compared to HKD 333,964,000 for the year ended June 30, 2023[2] - Gross profit for the year was HKD 13,066,000, with a gross margin of approximately 5.8%, compared to HKD 3,182,000 and a margin of 1% in the previous year[2] - Operating loss for the year was HKD 38,365,000, slightly higher than the operating loss of HKD 37,941,000 in the previous year[2] - Net loss for the year was HKD 39,988,000, compared to a net loss of HKD 38,707,000 in the previous year, indicating a 3.3% increase in losses[3] - Total revenue for the year 2024 was HKD 226,711 thousand, a decrease of 32% from HKD 333,964 thousand in 2023[14] - The group reported a total loss for the year of HKD 39,988 thousand in 2024, compared to a loss of HKD 38,707 thousand in 2023[14] - The company reported a pre-tax loss of HKD 39,991,000 for the year ended June 30, 2024, compared to a loss of HKD 38,710,000 in the previous year[32] - The net loss attributable to equity holders widened to HKD 39.99 million from HKD 38.71 million in the previous year[44] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 798,093,000, significantly up from HKD 207,094,000 in the previous year[8] - Non-current assets, including property, plant, and equipment, were valued at HKD 641,763,000, compared to HKD 51,469,000 in the previous year[6] - Current liabilities increased to HKD 93,089,000 from HKD 40,114,000, reflecting a 132.5% rise[8] - The group's total assets as of June 30, 2024, amounted to HKD 798,093 thousand, with classified assets of HKD 712,995 thousand[18] - The total liabilities as of June 30, 2024, were HKD 104,652 thousand, with classified liabilities of HKD 63,063 thousand[18] - The net current asset value decreased to HKD 63.24 million from HKD 115.51 million year-on-year[45] Revenue Breakdown - The party product trading segment generated revenue of HKD 45,140 thousand in 2024, down 51% from HKD 92,332 thousand in 2023[14] - The technology-driven investment management segment reported revenue of HKD 9,221 thousand in 2024, with a classification performance of HKD 8,552 thousand, compared to a loss of HKD 6,794 thousand in 2023[14] - The commodity trading segment's revenue decreased to HKD 172,350 thousand in 2024 from HKD 241,632 thousand in 2023, with a classification performance loss of HKD 3,139 thousand[14] - Revenue from mainland China for 2024 was HKD 190,669 thousand, down from HKD 241,632 thousand in 2023[20] - Revenue from party products trade was HKD 45,140,000, down 51% from HKD 92,332,000 year-on-year[24] - Revenue from goods trade was HKD 172,350,000, a decline of 29% compared to HKD 241,632,000 in the previous year[24] - Revenue from commodity trading decreased by 28.67% to HKD 172.35 million due to excess manufacturing capacity and increased price pressure[47] Acquisitions and Investments - The group completed the acquisition of Deep Neural Computing Company Limited (DNCC) on March 22, 2024, enhancing its capabilities in AI, deep neural networks, distributed computing, and quantitative trading algorithms[12] - The acquisition of DNCC contributed approximately HKD 9.22 million in revenue post-acquisition until June 30, 2024[48] - The group issued 21,000,000 shares as part of the acquisition of DNCC, expanding into advanced algorithm and AI-driven investment solutions[55] - The company completed the acquisition of DNCC's entire issued share capital on March 22, 2024, enhancing its technology-driven asset management business[59] Shareholder Information - The company did not recommend any final dividend for the year ended June 30, 2024, consistent with the previous year[31] - The company raised approximately HKD 286 million through a rights issue and share subscription, with a net amount of about HKD 284 million after expenses[56] - The company’s authorized share capital as of June 30, 2024, was HKD 10,000 million, with issued share capital of HKD 5,582,451[55] - Share premium reduction approved at a special shareholders' meeting amounted to approximately HKD 4,318 million, with HKD 4,176 million used to offset accumulated losses[55] Operational Insights - Operating expenses rose by 35.73% to HKD 53.42 million, primarily due to increased depreciation and related costs from the new headquarters[44] - The company’s financing costs increased significantly, with lease liabilities interest rising to HKD 1,582,000 from HKD 658,000 year-on-year[28] - The company has implemented credit risk assessment policies to manage lending operations, ensuring compliance with applicable laws and regulations[50] - The company closely monitors its loan portfolio and updates credit status regularly, issuing alerts for defaults or overdue payments[53] Future Outlook - The global algorithm trading market is projected to reach $42.99 billion by 2030, with a compound annual growth rate (CAGR) of 12.2%[63] - The company believes it can leverage trends in AI-driven solutions and quantitative trading models to expand its investment management footprint[63] Corporate Governance - The company has complied with the corporate governance code as of June 30, 2024, despite not having a chairman since July 25, 2023[65] - The annual general meeting of shareholders is scheduled for December 13, 2024, at 3 PM in China[69] - The full-year performance announcement will be published on the company's website and the Hong Kong Stock Exchange website[69] - The annual report for the year ending June 30, 2024, is expected to be sent to shareholders by October 31, 2024[69] - The board expresses gratitude to all employees, management, shareholders, clients, and banks for their support[69]

Financial Performance - The company recorded revenue of approximately HKD 102.86 million for the reporting period, a decrease of about 46.65% compared to HKD 192.79 million in the same period last year[6]. - Revenue from party product trading was approximately HKD 27.44 million, down 70.70% from HKD 93.64 million in the previous year[7]. - The company reported a net loss of approximately HKD 20.72 million, compared to a net loss of HKD 14.31 million in the same period last year[6]. - Revenue from commodity trading was approximately HKD 75.41 million, a decrease of 23.94% from HKD 99.15 million in the previous year[9]. - Gross profit for the same period was HKD 1,647,000, down 65.8% from HKD 4,817,000 in 2022[37]. - Operating loss increased to HKD 19,852,000, compared to an operating loss of HKD 13,855,000 in the previous year, reflecting a deterioration of 43.1%[37]. - Loss before tax for the period was HKD 20,722,000, compared to a loss of HKD 14,146,000 in 2022, representing a 46.5% increase in losses[37]. - The company reported a total comprehensive loss of HKD 18,755,000 for the period, compared to a loss of HKD 18,492,000 in the previous year[38]. - Basic and diluted loss per share for the period was HKD 3.86, compared to HKD 2.67 in the same period last year, reflecting a 44.5% increase in loss per share[38]. - Total revenue for the six months ended December 31, 2023, was HKD 102,855,000, a decrease of 46.8% compared to HKD 192,786,000 in 2022[65]. - The party product trading segment generated revenue of HKD 27,444,000, down 70.7% from HKD 93,639,000 in the previous year[65]. - The commodity trading segment reported revenue of HKD 75,411,000, a decrease of 23.9% from HKD 99,147,000 in 2022[65]. Assets and Liabilities - As of December 31, 2023, the group's net current assets were approximately HKD 101.04 million, down from HKD 115.51 million as of June 30, 2023[15]. - The group's total assets less current liabilities amounted to approximately HKD 141.35 million, a decrease from HKD 166.98 million as of June 30, 2023[15]. - The current ratio as of December 31, 2023, was 2.14, compared to 3.88 as of June 30, 2023[15]. - The group had cash and bank balances of approximately HKD 55.94 million as of December 31, 2023, down from HKD 89.08 million as of June 30, 2023[15]. - The total assets as of December 31, 2023, amounted to HKD 229,614,000, an increase from HKD 207,094,000 as of June 30, 2023[39]. - Total liabilities increased to HKD 105,673,000 as of December 31, 2023, compared to HKD 64,398,000 as of June 30, 2023[67][69]. - The company’s trade payables as of December 31, 2023, were HKD 52,133,000, up from HKD 13,335,000 as of June 30, 2023[62]. - The company’s other receivables increased to HKD 12,496,000 as of December 31, 2023, compared to HKD 10,136,000 as of June 30, 2023[58]. - The company’s impairment losses for other receivables and deposits were approximately HKD 71,654,000 as of December 31, 2023[59]. - The total trade receivables as of December 31, 2023, amounted to HKD 74,550,000, significantly increasing from HKD 24,476,000 as of June 30, 2023[55]. Operational Updates - The company aims to explore high-margin products, such as metal silicon used in chip production, to meet changing market demands[9]. - The company is actively seeking suitable personnel to restore its suspended licenses for regulated activities under the Securities and Futures Ordinance[8]. - The company continues to implement cost control measures to maintain its existing business operations[6]. - The company has maintained its continuous operation basis, believing it has sufficient resources to continue operating in the foreseeable future[45]. - The company operates in four reportable segments: party products trading, securities brokerage and asset management, commodity trading, and lending business[63]. - The company did not generate any revenue from its securities brokerage and asset management segment during the reporting period[8]. - The company has not granted any loans to customers and did not generate any revenue from its lending business during the reporting period[11]. - The company had no significant mergers, acquisitions, or disposals during the reporting period[21]. - There were no major investments made by the company during the reporting period[22]. - The company did not grant any share options during the reporting period[32]. - There were no unexercised share options under the share option scheme as of December 31, 2023[32]. Management and Governance - The company is in the process of appointing a new chairman following the resignation of Dr. Wu Yu on July 25, 2023, with Mr. Cheung Ka Fai transitioning from CFO to CEO[36]. - The board of directors did not recommend an interim dividend for the six months ended December 31, 2023[53]. - The board approved the unaudited interim consolidated financial statements for the six months ending December 31, 2023, on February 28, 2024[80]. - No significant events affecting the company and its subsidiaries occurred after December 31, 2023, except for the proposed acquisition disclosed in the "Outlook" section[79]. Market and Economic Conditions - The People's Bank of China announced a 50 basis point cut in the reserve requirement ratio effective February 5, 2024, expected to increase credit supply[16]. - The company reported a foreign exchange gain of HKD 326,000 for the six months ended December 31, 2023, compared to a loss of HKD 2,175,000 in the same period of 2022[50]. - The company incurred financing costs of HKD 870,000 related to lease liabilities for the six months ended December 31, 2023, up from HKD 291,000 in the same period of 2022[51]. - The company reported a significant increase in management compensation to HKD 2,874,000 for the six months ended December 31, 2023, compared to HKD 1,543,000 in 2022[76]. - Revenue from mainland China was HKD 76,060,000, down 57.8% from HKD 180,247,000 in the previous year[71].

Financial Performance - The company's revenue for the six months ended December 31, 2023, was HKD 102,855,000, a decrease of 46.8% compared to HKD 192,786,000 for the same period in 2022[2]. - The gross profit for the reporting period was HKD 1,647,598, resulting in a gross margin of approximately 1.6%[2]. - The operating loss for the six months was HKD 22,097,000, compared to an operating loss of HKD 22,136,000 in the previous year[2]. - The total comprehensive loss for the period was HKD 18,755,000, slightly higher than the loss of HKD 18,492,000 in the same period last year[3]. - The loss attributable to equity holders of the company was HKD 20,724,000, compared to HKD 14,321,000 in the previous year, indicating a significant increase in losses[3]. - Basic and diluted loss per share for the period was HKD 3.86, compared to HKD 2.67 in the previous year[3]. - For the six months ended December 31, 2023, the company reported a pre-tax loss of HKD 20,724,000, compared to a pre-tax loss of HKD 14,321,000 for the same period in 2022, representing a 45.5% increase in losses[19]. - The company reported a net loss of HKD 20,722,000 for the six months ended December 31, 2023, compared to a net loss of HKD 14,313,000 for the same period in 2022[28]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to HKD 229,614,000, an increase from HKD 207,094,000 as of June 30, 2023[4]. - Current liabilities increased to HKD 88,262,000 from HKD 40,114,000 as of June 30, 2023, indicating a significant rise in short-term obligations[6]. - The company's non-current assets decreased from HKD 51,469,000 to HKD 40,310,000, reflecting a reduction in long-term investments[4]. - The total comprehensive assets as of December 31, 2023, amounted to HKD 229,614,000, while total comprehensive liabilities were HKD 105,673,000[30]. - The company's trade receivables as of December 31, 2023, amounted to HKD 74,550,000, a significant increase from HKD 24,476,000 as of June 30, 2023[20]. - The total liabilities related to trade payables increased to HKD 52,133,000 as of December 31, 2023, compared to HKD 13,335,000 as of June 30, 2023[23]. - The company had cash and cash equivalents of HKD 38,502,000 as of December 31, 2023, down from HKD 52,492,000 as of June 30, 2023[37]. - The cash and bank balance as of December 31, 2023, was approximately HKD 55.94 million, down from HKD 89.08 million as of June 30, 2023[47]. - The company's total liabilities included HKD 64,817,000 in classified liabilities as of December 31, 2023[30]. Revenue Breakdown - The party products trading segment generated revenue of HKD 27,444,000, down from HKD 93,639,000, reflecting a decline of 70.7%[27]. - The commodity trading segment reported revenue of HKD 75,411,000, a decrease of 24.0% from HKD 99,147,000 in the previous year[27]. - Revenue from customers in Mainland China was HKD 76,060,000, down from HKD 180,247,000 in the previous year, indicating a decline of 57.8%[32]. - The group's revenue for the second half of 2023 was approximately HKD 102.86 million, a decrease of about 46.65% compared to HKD 192.79 million in the same period last year[42]. - Revenue from party product trading was approximately HKD 27.44 million, down 70.70% from HKD 93.64 million in the previous year, primarily due to increased market supply and price competition post-pandemic[43]. Expenses and Management - The company reported a total depreciation expense of HKD 9,880,000 for the six months ended December 31, 2023, compared to HKD 3,658,000 in the previous year, reflecting a 170.5% increase[15]. - The group's operating expenses decreased by 0.18% to HKD 22.1 million during the reporting period[42]. - The company’s management compensation for the six months ended December 31, 2023, was HKD 2,901,000, an increase from HKD 1,548,000 in the previous year[38]. Corporate Governance and Future Plans - The company continues to operate under the going concern basis, indicating confidence in its ability to sustain operations in the foreseeable future[9]. - The company did not declare an interim dividend for the six months ended December 31, 2023, consistent with the previous year[18]. - The group announced a conditional acquisition of Deep Neural Computing Company Limited to enhance research and application of AI trading technology[49]. - The group aims to explore high-margin products, such as metal silicon used in chip production, to meet changing market demands[45]. - The group is seeking breakthroughs in technology applications in asset management and related financial services, particularly in algorithmic trading and AI trading technology[49]. - The company plans to utilize the proceeds from the share subscription and placement for debt repayment, with specific allocations including HKD 110 million for overdue convertible bonds and HKD 15 million for general working capital[53][54]. - The remaining proceeds from the share subscription are expected to be utilized by June 30, 2024[54]. - The company has complied with the corporate governance code, although there was a temporary absence of a CEO until July 25, 2023, when the CFO was appointed as CEO[59]. - The company is in the process of selecting a suitable candidate to fill the vacant chairman position following the resignation of the previous chairman on July 25, 2023[59]. Employment and Compliance - The company has a total of 35 employees as of December 31, 2023, down from 36 employees as of June 30, 2023[57]. - The company has not entered into any forward foreign exchange contracts to manage foreign currency risks, as management believes these risks are controllable[56]. - The company did not incur any taxable profits during the reporting period, resulting in no provision for Hong Kong profits tax[16]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[58]. - The company’s audit committee reviewed the interim results and financial statements for the reporting period[61]. - There were no significant mergers, acquisitions, or disposals of subsidiaries during the reporting period[54].

Core Viewpoint - INTL GENIUS (00033) anticipates a net loss increase of 35% to 45% for the six months ending December 31, 2023, compared to the same period in 2022, primarily due to a revenue decline of approximately 40% to 50% [1] Revenue Decline - The revenue decrease is attributed to reduced net exports in traditional domestic industries such as toys and plastic product manufacturing, leading to lower downstream demand and a decline in raw material prices [1] - Overall sales volume has decreased, exacerbated by the normalization of international logistics post-pandemic, resulting in increased supply of party products in the market and intensified competition, which has driven prices down [1]

Financial Performance - The company's revenue for the fiscal year ending June 30, 2023, showed a significant increase compared to the previous year, driven by growth in digital business segments such as algorithm trading and artificial intelligence [11]. - The group recorded revenue of approximately HKD 333.96 million for the year ended June 30, 2023, an increase of about 12.99% compared to HKD 295.56 million in the same period last year [12]. - Revenue from party product trading was approximately HKD 92.33 million, a decrease of about 20.07% from HKD 115.51 million in the previous year, as the group strategically shifted focus to commodity trading [13]. - Revenue from commodity trading increased significantly to approximately HKD 241.63 million, an increase of 81.36% from HKD 133.23 million in the previous year, driven by post-pandemic market opportunities [15]. - The net loss attributable to equity holders was approximately HKD 38.71 million, compared to a profit of HKD 41.38 million in the same period last year, primarily due to no revenue generated from securities brokerage and asset management [12]. - The gross profit for the same period was HKD 3,182,000, compared to HKD 50,826,000 in the previous year, indicating a significant decline [185]. - Operating loss for the year was HKD 37,941,000, a decrease from an operating profit of HKD 15,656,000 in 2022 [185]. - The net loss for the year was HKD 38,707,000, compared to a profit of HKD 40,701,000 in the previous year [186]. Economic Environment - The International Monetary Fund (IMF) projects global economic growth at 3% for 2023, with China's growth forecast at 5.2% [8]. - Hong Kong's GDP grew by 1.5% year-on-year in Q2 2023, a decrease from 2.9% in the previous quarter, indicating a slowdown in economic recovery [8]. - The company reported a decline in business sentiment among enterprises, with the Hong Kong Purchasing Managers' Index (PMI) falling to 49.8, indicating contraction [8]. Digital Business and AI Focus - The company is focusing on enhancing its risk management capabilities while developing new business opportunities in the digital sector, particularly in AI and algorithm trading [9]. - The AI market is expected to grow at a compound annual growth rate (CAGR) of over 40% in the next decade, presenting significant opportunities for the company [9]. - The company has made progress in its digital business initiatives, particularly in algorithm trading and AI, as part of its strategy to adapt to the new economic landscape [9]. - The company is actively seeking to leverage the low inventory levels in the AI server market to capitalize on long-term demand, with AI server prices being significantly higher than standard servers [9]. Cost Management and Financial Health - Operating expenses for the reporting period were approximately HKD 39.36 million, a decrease of about 17.57% from HKD 47.75 million in the previous year, due to successful cost control measures [12]. - As of June 30, 2023, the group's net current assets were approximately HKD 115.51 million, down from HKD 174.09 million a year earlier [18]. - The group's cash and bank balances were approximately HKD 89.08 million as of June 30, 2023, compared to HKD 99.19 million in the previous year [18]. - The company plans to use HKD 284 million from the recent fundraising for various purposes, including repaying overdue debts and general working capital [21]. Governance and Compliance - The company has maintained compliance with corporate governance codes, although the roles of Chairman and CEO were not separated during the reporting period [27]. - The Audit Committee held five meetings during the year to consider and approve the audited consolidated financial statements for the year ending June 30, 2023 [39]. - The Audit Committee reviewed the internal controls of the group during the year and confirmed that the annual report is complete, accurate, and complies with all relevant rules and regulations [37]. - The company has established a whistleblowing policy to allow employees to report any misconduct confidentially [37]. Environmental, Social, and Governance (ESG) Initiatives - The company reported a continuous commitment to sustainable operations, aiming to reduce environmental impact and create value for stakeholders [75]. - The environmental, social, and governance (ESG) report covers activities from July 1, 2022, to June 30, 2023, highlighting minimal environmental impact from operations [75]. - The company reported a significant reduction in nitrogen oxides emissions from 1,137.89 kg in 2022 to 1.96 kg in 2023, representing a decrease of approximately 99.83% [88]. - The company has implemented various energy-saving measures, including replacing low-power lamps and encouraging energy-saving habits [86]. - The company aims to reduce waste and has initiated measures such as promoting the use of recycled paper and double-sided printing [92]. Employee Management and Development - The workforce decreased to 36 employees as of June 30, 2023, down from 42 employees a year earlier [25]. - The employee turnover rate decreased to 52.2% in 2023 from 73.9% in 2022, attributed to a stable work environment and the normalization of economic activities [103]. - The total training hours provided to employees in 2023 was 126 hours, an increase from 118 hours in 2022 [109]. - The average training hours per employee in 2023 was 5.5 hours, compared to 5.1 hours in 2022 [109]. Risk Management - The Risk Management Committee was established on December 28, 2015, and held one meeting this year, reviewing the group's risk management procedures and internal control systems [56]. - The company has a policy for the appointment and re-election of directors, with non-executive directors serving a fixed term of three years [58]. - The company has implemented a comprehensive legal and compliance risk management framework to mitigate risks associated with regulatory changes [160]. Shareholder and Capital Structure - The company’s issued share capital was HKD 5,372,451, divided into 537,245,104 shares as of June 30, 2023, with no changes in capital structure during the reporting period [19]. - The company does not recommend any dividend distribution for the year [142]. - Neo Tech holds 390,821,084 shares, representing 72.74% of the company's issued share capital [149].

Financial Performance - For the fiscal year ended June 30, 2023, the company reported a revenue of HKD 333,964,000, an increase of 12.9% compared to HKD 295,561,000 for the previous year[3] - The company incurred a loss of HKD 38,707,000 for the year, compared to a profit of HKD 40,701,000 in the previous year, representing a significant decline[2] - Operating loss for the year was HKD 37,941,000, a decrease from an operating profit of HKD 15,656,000 in the prior year[3] - Total comprehensive loss for the year amounted to HKD 44,880,000, compared to a total comprehensive income of HKD 38,050,000 in the previous year[5] - The group recorded a net loss of HKD 38,707,000 for the year, a significant decrease from a profit of HKD 40,701,000 in the previous year[15] - The company reported a basic loss per share of HKD 7.21, compared to earnings per share of HKD 7.70 in the previous year[6] - The company reported a net loss attributable to shareholders of HKD 38,710,000 in 2023, compared to a profit of HKD 41,375,000 in 2022[33] Revenue Breakdown - Total revenue for the group in 2023 was HKD 333,964,000, an increase from HKD 295,561,000 in 2022, representing a growth of approximately 13%[15] - The party products trading segment generated revenue of HKD 92,332,000 in 2023, down from HKD 115,510,000 in 2022, reflecting a decline of about 20%[15] - The securities brokerage and asset management segment reported a loss of HKD 6,794,000 in 2023, compared to a profit of HKD 41,044,000 in 2022[15] - The commodity trading segment saw significant growth, with revenue increasing to HKD 241,632,000 in 2023 from HKD 133,227,000 in 2022, marking an increase of approximately 81%[15] - Revenue from party product trading decreased to HKD 92,332,000 in 2023 from HKD 115,510,000 in 2022, representing a decline of 20%[25] - Revenue from commodity trading significantly increased to HKD 241,632,000 in 2023, up from HKD 133,227,000 in 2022, marking an increase of 81.5%[25] Assets and Liabilities - Current assets decreased to HKD 155,625,000 from HKD 226,150,000, indicating a reduction of 31.2%[7] - Total assets decreased to HKD 207,094,000 from HKD 239,639,000, reflecting a decline of 13.6%[7] - The company's equity attributable to shareholders decreased to HKD 142,670,000 from HKD 188,336,000, a drop of 24.2%[7] - Total assets as of June 30, 2023, amounted to HKD 207,094,000, with total liabilities of HKD 64,398,000[18] - Total liabilities were reported at HKD 52,063,000, with tax payable at HKD 4,941,000[19] Cash Flow and Financing - The company raised approximately HKD 286 million through a rights issue and subscription, with a net amount of about HKD 284 million after expenses[57] - The estimated remaining unutilized funds from the rights issue are expected to be used by June 30, 2024[59] - The company has no outstanding loans payable to third parties as of June 30, 2023[55] Operational Costs - The group’s unallocated corporate expenses increased to HKD 31,167,000 in 2023 from HKD 18,054,000 in 2022, indicating rising operational costs[15] - Operating expenses for the reporting period were approximately HKD 39.36 million, a decrease of about 17.57% from HKD 47.75 million in the previous year[50] Employee and Corporate Governance - The company had 36 employees as of June 30, 2023, down from 42 employees a year earlier[62] - The company has complied with the corporate governance code during the reporting period, with no CEO appointed, and the functions were undertaken by the board's executive committee[65] Future Plans and Developments - The company plans to enhance research and development efforts in artificial intelligence trading technology for sustainable long-term growth[64] Miscellaneous - The company did not declare any final dividend for the year ending June 30, 2023, consistent with the previous year[32] - The company did not sell any subsidiaries in the year ending June 30, 2023, but had previously sold Market Season Limited and other subsidiaries in 2022[41] - The company has not entered into any forward foreign exchange contracts to manage currency risks during the reporting period[61] - The annual performance announcement will be published on the company's website and the Hong Kong Stock Exchange website by October 31, 2023, or earlier[70] - The annual general meeting for shareholders is scheduled for December 15, 2023, at 3 PM in China[69] - The financial statements as of June 30, 2023, have been verified by the auditor, confirming consistency with the audited financial reports[68]

Financial Performance - The group recorded revenue of approximately HKD 192.79 million for the reporting period, a decrease of about 10.5% compared to HKD 215.51 million in the same period last year[6]. - The net loss for the reporting period was HKD 14.31 million, compared to a profit of HKD 48.91 million in the same period last year[6]. - For the six months ended December 31, 2022, the company's revenue was HKD 192,786,000, a decrease of 10.6% compared to HKD 215,510,000 in the same period of 2021[33]. - The company reported a total comprehensive loss attributable to equity holders of HKD (18,499) thousand for the six months ended December 31, 2022, compared to a profit of HKD 49,423 thousand in the same period of 2021[34]. - Basic and diluted loss per share was HKD (2.67) for the six months ended December 31, 2022, down from HKD 9.10 in the previous year[34]. - The pre-tax loss for the six months ended December 31, 2022, was HKD 14,321,000, compared to a profit of HKD 48,909,000 in the same period of 2021[51]. - The company reported a net cash outflow from operating activities of HKD (20,796) thousand for the six months ended December 31, 2022, compared to a cash inflow of HKD 23,707 thousand in the same period of 2021[38]. Revenue Breakdown - Revenue from party product trading was approximately HKD 93.64 million, a decrease of 4.38% from HKD 97.93 million in the same period last year[7]. - Revenue from commodity trading increased by 39.73% to approximately HKD 99.15 million, up from HKD 70.96 million in the same period last year[9]. - Revenue from party product trading was HKD 93,639,000, down from HKD 97,927,000, while commodity trading revenue increased to HKD 99,147,000 from HKD 70,959,000[45]. - Revenue from mainland China was HKD 180,247,000, up from HKD 168,886,000 year-over-year, indicating a growth of about 6.5%[68]. - The company reported a significant increase in revenue from customer contracts in Malaysia, generating HKD 12,518,000, compared to no revenue in the previous year[68]. - Major customer A contributed HKD 81,100,000 in revenue, a substantial increase from HKD 47,813,000 in the prior year, reflecting a growth of approximately 69.5%[71]. Expenses and Costs - The operating expenses for the reporting period decreased by 14.1% to HKD 22.14 million, reflecting the company's cost control measures[6]. - The cost of sales and services for the same period was HKD (187,969,000), resulting in a gross profit of HKD 4,817,000, down from HKD 48,167,000 in the previous year[33]. - The financing costs for the period were HKD (291,000), a decrease from HKD (772,000) in the previous year[33]. - The income tax expense for the period was HKD 167,000, compared to HKD 29,000 in the same period of 2021[49]. Assets and Liabilities - The group had a net current asset of HKD 151.03 million as of December 31, 2022, down from HKD 174.09 million as of June 30, 2022[11]. - The total assets less current liabilities amounted to HKD 172.97 million as of December 31, 2022, compared to HKD 187.58 million as of June 30, 2022[11]. - The cash and bank balance was approximately HKD 76.59 million as of December 31, 2022, down from HKD 99.19 million as of June 30, 2022[11]. - The company's total equity attributable to equity holders decreased to HKD 169,837 thousand as of December 31, 2022, from HKD 188,336 thousand as of June 30, 2022[35]. - The company's total liabilities amounted to HKD 206,165 thousand as of December 31, 2022, compared to HKD 239,639 thousand as of June 30, 2022[36]. Share Capital and Ownership - As of December 31, 2022, the company had a total issued share capital of 537,245,104 shares[21]. - The company’s major shareholder, Dr. Wu, holds 72.79% of the issued share capital[20]. - Neo Tech Inc. holds 72.74% of the company's issued share capital, fully owned by the chairman and executive director, Dr. Wu[22]. - Total issued and paid-up shares were 1,000,000,000 with a par value of HKD 0.01 per share as of December 31, 2022[56]. Corporate Governance and Compliance - The company has adhered to the corporate governance code during the reporting period, with no significant deviations noted[26]. - The audit committee reviewed the interim report, ensuring compliance with financial reporting standards[29]. - The board approved the unaudited interim consolidated financial statements for the six months ended December 31, 2022, on February 28, 2023[85]. Future Outlook and Plans - The company is confident that revenue and gross profit from its business will improve post-COVID-19 due to ongoing support from shareholders and management[18]. - The company plans to utilize the remaining funds from the rights issue by June 30, 2024[15]. - The company continues to explore opportunities for developing asset management business in Hong Kong and other countries[18]. - The company has not engaged in any significant mergers, acquisitions, or disposals during the reporting period[15]. - The company has not made any significant investments during the reporting period[15]. Employee and Management Information - The company had a total of 44 employees as of December 31, 2022, an increase from 42 employees on June 30, 2022[17]. - The total compensation for key management personnel for the six months ended December 31, 2022, was HKD 1,548,000, a decrease from HKD 1,841,000 in the same period of 2021[80]. Miscellaneous - The company did not recommend any interim dividend for the six months ended December 31, 2022, and 2021[50]. - The company did not issue any share options during the reporting period, and there were no unexercised options as of December 31, 2022[25]. - There were no purchases, sales, or redemptions of the company's listed securities during the reporting period[26]. - The company has no capital commitments that have not been recognized in the financial statements as of December 31, 2022[81]. - No significant events affecting the company and its subsidiaries occurred after December 31, 2022, up to the report date[84].

Financial Performance - The total revenue for the year ended June 30, 2022, was HKD 295,561,000, a decrease of 12.9% compared to HKD 339,436,000 for the previous year[2]. - The gross profit for the year was HKD 50,826,000, resulting in a gross margin of approximately 17.2%[2]. - The operating profit for the year was HKD 15,656,000, compared to an operating loss of HKD 32,543,000 in the previous year[2]. - The net profit attributable to shareholders for the year was HKD 40,701,000, a significant recovery from a loss of HKD 67,797,000 in the prior year[3]. - The total comprehensive income for the year was HKD 38,050,000, compared to a loss of HKD 66,926,000 in the previous year[3]. - Basic earnings per share for continuing operations were HKD 7.70, compared to a loss per share of HKD 28.55 in the previous year[6]. - The company reported a significant reduction in financing costs, down to HKD (996,000) from HKD (14,466,000) in the previous year[2]. - The company reported a pre-tax profit of 41,375,000 HKD for the year ending June 30, 2022, compared to a loss of 67,786,000 HKD for the previous period[45]. - Total income tax expense increased to 2,710,000 HKD for the year ending June 30, 2022, from 2,355,000 HKD in the previous period[41]. - The company did not declare any final dividend for the year ending June 30, 2022, consistent with the previous period[42]. Assets and Liabilities - The company's total assets as of June 30, 2022, were HKD 239,639,000, down from HKD 395,103,000 in the previous year[7]. - The cash and cash equivalents decreased to HKD 99,191,000 from HKD 248,778,000 year-over-year[7]. - The company's equity attributable to shareholders increased to HKD 188,336,000 from HKD 149,479,000 in the previous year[8]. - As of June 30, 2022, total liabilities and equity amounted to HKD 239,639,000, a decrease from HKD 395,103,000 in the previous year[9]. - Current liabilities, including trade payables, were reported at HKD 52,063,000, compared to HKD 244,194,000 in the previous year[9]. - The total value of assets, net of current liabilities, was HKD 187,576,000, up from HKD 150,909,000 in the previous year[9]. - The company reported a significant increase in accrued expenses and other payables, rising to HKD 13,254,000 from HKD 30,445,000[9]. - The company's total liabilities as of June 30, 2022, were HKD 52,063 million, with the largest portion attributed to service and investment business liabilities (HKD 23,731 million)[21]. Revenue Breakdown - Total revenue for the year ending June 30, 2022, was HKD 295,561,000, with contributions from various segments including HKD 115,510,000 from trading and HKD 133,227,000 from commodity trading[16]. - Revenue from external customers amounted to HKD 295,561,000, indicating a strong performance across all business segments[16]. - Revenue from Hong Kong for the year ended June 30, 2022, was HKD 54,979 million, a decrease from HKD 102,964 million in the previous year[24]. - Revenue from Mainland China for the year ended June 30, 2022, was HKD 133,227 million, slightly down from HKD 141,519 million in the previous year[24]. - Revenue from Malaysia increased significantly to HKD 107,022 million in the year ended June 30, 2022, compared to HKD 55,625 million in the previous year[24]. - The group's income from asset management for the year ended June 30, 2022, was HKD 46,302,000, while consulting income was HKD 189,000, showing a significant decrease from HKD 567,000 in the previous period[31]. Operational Highlights - The company has six reporting segments, including securities brokerage and asset management, lending business, and commodity trading[14]. - The company has ceased operations in the security product trading and security service provision segment in the previous period[14]. - The company plans to focus on expanding its trading services and enhancing its asset management capabilities in the upcoming fiscal year[16]. - The company aims to improve its operational efficiency and reduce administrative expenses to enhance profitability in future periods[16]. - The group is exploring business expansion and investment management opportunities in other countries and regions, focusing on technological innovations in asset management[79]. - The group initiated its lending business by providing a loan of HKD 2 million to an independent third-party borrower, which has since defaulted, resulting in a loss of HKD 2 million recorded in the profit and loss statement[81]. Impairment and Losses - The company reported a significant impairment loss of HKD 3,387,000 related to the right-of-use assets, indicating potential challenges in asset management[18]. - The company recognized a significant impairment loss on accounts receivable related to the sale of subsidiaries, totaling 122,555,000 HKD[48]. - The company recorded a loss of 3,952 thousand HKD from the sale of Dewei Kexin, contributing to a total revenue from subsidiary sales of 13,932 thousand HKD[67]. - The company recorded a loss of HKD 5,036 million from discontinued operations during the reporting period[73]. - The revenue from the sale of subsidiaries was HKD 488 million, while the loss from discontinued operations was HKD (5,036) million[72]. Shareholder Information - The total number of ordinary shares issued as of June 30, 2022, was 537,245,000 shares[43]. - The total issued share capital was 1,000,000,000 shares as of June 30, 2022, following a share consolidation[52]. - The company raised approximately HKD 18,146,000 from the placement of 181,463,440 shares at HKD 0.1 per share in April 2020[53]. - The company issued 118,259,944 shares at a subscription price of HKD 0.71 per share, raising approximately HKD 83,965,000[54]. - The company announced a rights issue where shareholders received 3 shares for every 1 share held at a subscription price of HKD 0.71 per share, raising approximately HKD 286 million in total proceeds[87]. Corporate Governance and Compliance - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and historical cost convention[11]. - The audit committee has reviewed the annual performance and confirmed compliance with applicable accounting standards[101]. - The company has adhered to the corporate governance code, with no CEO appointed as of June 30, 2022, and responsibilities managed by the board's executive committee[99]. - The annual general meeting is scheduled for December 15, 2022, in Hong Kong[103]. - The annual performance announcement will be published on the company's website and the Hong Kong Stock Exchange website[104]. Future Outlook - Future outlook remains cautious due to market volatility and economic uncertainties, with a focus on maintaining operational efficiency and exploring strategic partnerships[20]. - The group is well-positioned to seize future opportunities as the community vaccination rate increases and the pandemic is controlled[97].