Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 40,439,000, an increase of 14.1% compared to HKD 35,304,000 for the same period in 2019[8] - Gross profit decreased to HKD 3,128,000, down 66.0% from HKD 9,194,000 in the previous year[8] - Operating profit for the period was HKD 29,033,000, a significant recovery from an operating loss of HKD 18,306,000 in 2019[8] - Profit before tax was HKD 27,959,000, compared to a loss of HKD 136,296,000 in the same period last year[8] - Net profit for the period was HKD 28,059,000, a turnaround from a loss of HKD 135,420,000 in 2019[11] - Basic and diluted earnings per share for the period were HKD 2.7, compared to a loss of HKD 12.9 per share in the previous year[8] - Total comprehensive income for the period was HKD 27,016,000, compared to a loss of HKD 134,875,000 in 2019[11] - The company reported a net loss of HKD 135,128,000 for the six months ended June 30, 2020, compared to a loss of HKD 135,420,000 for the same period in 2019[22] - Total comprehensive income for the period was HKD 26,932,000, a decrease from HKD 27,016,000 in the previous year[22] - The company reported a basic earnings profit of approximately HKD 28,031,000 for the six months ended June 30, 2020, compared to a loss of approximately HKD 135,128,000 for the same period in 2019[54] - The group recorded an attributable comprehensive profit of approximately HKD 28,000,000 for the period, compared to a loss of about HKD 135,100,000 in the previous period[101] Assets and Liabilities - Current assets as of June 30, 2020, totaled HKD 72,554,000, compared to HKD 21,846,000 at the end of 2019[14] - Total equity increased to HKD 28,915,000 from HKD 1,899,000 at the end of 2019[14] - Non-current assets as of June 30, 2020, totaled HKD 109,000, a decrease from HKD 202,000 as of December 31, 2019[45] - The company’s total reserves decreased to HKD (340,229,000) as of June 30, 2020, from HKD (368,260,000) at the beginning of the year[22] - The company’s cash flow from operating activities was significantly impacted by the ongoing economic conditions, reflecting a challenging business environment[22] - The group’s assets classified as held for sale amounted to HKD 55,184,000 as of June 30, 2020[38] - The group’s liabilities classified as held for sale were HKD 183,000, with total liabilities amounting to HKD 46,066,000[38] Cash Flow and Financing - Cash and cash equivalents decreased by HKD 2,350,000, ending at HKD 4,344,000 as of June 30, 2020, compared to HKD 11,678,000 at the beginning of the period[22] - The company incurred a net cash outflow of HKD 1,407,000 from operating activities, compared to HKD 888,000 in the prior year[22] - The company reported a net cash inflow of HKD 2,000 from investment activities, down from HKD 359,000 in the previous year[22] - The company’s financing activities resulted in a net cash outflow of HKD 945,000, compared to HKD 1,726,000 in the same period last year[22] Revenue Segments - The financial payment processing segment generated revenue of HKD 40,439,000, while the property development and telecommunications services segments reported no revenue during the same period[31] - The group reported a significant increase in revenue from Singapore, rising to HKD 38,971,000 in 2020 from HKD 10,500,000 in 2019[45] - Telecommunications business revenue was approximately HKD 40,400,000, a growth of 29.9% from HKD 31,100,000 in the previous period[93] - The increase in telecommunications revenue was primarily driven by the wholesale voice telecommunications segment[93] - The group’s overseas tax provision for the six months ended June 30, 2020, was HKD 100,000, compared to a tax provision of HKD (844,000) in the same period of 2019[51] Operational Efficiency - The company reported a significant reduction in operating expenses, with administrative expenses decreasing to HKD 11,630,000 from HKD 17,978,000 in the previous year[8] - Operating expenses totaled approximately HKD 12,500,000, a decrease of about 56.6% compared to the previous year, primarily due to cost structure streamlining[99] - The operating profit for the period was approximately HKD 29,000,000, compared to a loss of about HKD 18,300,000 in the same period last year, mainly due to the settlement of outstanding consideration related to the acquisition of Diamond Frontier Investments Limited[99] Shareholder Information - The major shareholder, Zhao Ruiyong, holds 222,820,000 shares, representing 21.22% of the company's equity[113] - The total number of shares held by major shareholders includes 222,820,000 shares held by Hong Kong Great Wall, representing 21.22%[119] - The company has a stock option plan valid for 10 years, allowing for the grant of up to 105,028,000 options, representing 10% of the issued shares at the time of adoption[123] - As of June 30, 2020, there were no stock options granted or agreed to be granted under the stock option plan[124] Legal and Compliance - The company has initiated legal proceedings against a former director for the forced transfer of remaining shares due to prolonged delays in settlement, with a remaining receivable balance of approximately HKD 12,393,000[67] - The company is preparing and exchanging relevant legal documents regarding claims against the former director as of the date of the interim report[67] - The company has maintained compliance with the corporate governance code and has confirmed adherence to the required standards for securities trading by directors[125][127] Future Outlook - The group anticipates continued challenges and uncertainties in the business environment for the second half of 2020 due to COVID-19 impacts[94] - The group will continue to seek opportunities in emerging technologies, information technology, and 5G technology sectors to enhance business performance and achieve sustainable growth[97] - The company plans to continue seeking opportunities in the telecommunications, media, and technology (TMT) sectors[93]

Financial Performance - The company's revenue for 2019 was approximately HKD 79,210,000, representing a 16.6% increase from HKD 67,920,000 in 2018[6]. - The net loss for the year was HKD 225,172,000, a significant increase from the previous year's loss of HKD 16,148,000[6]. - The gross profit for 2019 was HKD 13,491,000, down 56.2% from HKD 30,794,000 in 2018, indicating a significant decline in profitability[165]. - Operating loss for the year was HKD 40,813,000, slightly improved from a loss of HKD 46,754,000 in 2018[165]. - The net loss attributable to equity holders of the company was HKD 219,027,000, compared to a loss of HKD 11,727,000 in the previous year, reflecting a substantial increase in losses[166]. - Total comprehensive loss for the year amounted to HKD 226,846,000, compared to HKD 25,142,000 in 2018, highlighting a worsening financial position[168]. - The total comprehensive loss for the year was HKD 220,713,000, compared to a loss of HKD 20,535,000 in the previous year, indicating a significant increase in losses[178]. Asset and Liability Management - The company's net asset value decreased to HKD 1,899,000 from HKD 228,745,000 in 2018[6]. - Current liabilities exceeded current assets by approximately HKD 56,766,000 as of December 31, 2019[101]. - The company's equity attributable to owners decreased from HKD 225,728,000 in 2018 to HKD 5,015,000 in 2019, a decline of about 97.8%[173]. - The total liabilities exceeded total assets, resulting in a negative net asset value of HKD (56,766,000) in 2019[170]. - The group reported a net unrealized fair value loss of approximately HKD 54,500,000 and a net loss on sale and fair value changes of approximately HKD 60,600,000 for FVPL financial assets in 2019, contrasting with a net unrealized gain of approximately HKD 54,400,000 in 2018[41]. Cash Flow and Liquidity - The net cash used in operating activities for the year ended December 31, 2019, was HKD (8,104) thousand, a significant improvement from HKD (42,848) thousand in 2018, representing a reduction of approximately 81%[180]. - The net cash generated from investment activities was HKD 962 thousand in 2019, compared to a cash outflow of HKD (63,251) thousand in 2018, indicating a turnaround in investment cash flow[180]. - The group has entered into a loan agreement totaling HKD 41,700,000 to alleviate liquidity and financial pressure, with an outstanding amount of approximately HKD 2,840,000 as of December 31, 2019[199]. - The group plans to raise funds through a share placement and is in discussions with potential investors[196]. - The group did not incur any interest payments in 2019, compared to HKD (7) thousand in 2018, indicating a potential reduction in debt obligations[180]. Business Strategy and Diversification - The company is actively seeking opportunities in the telecommunications, media, and technology (TMT) sectors to diversify its business portfolio[14]. - The company plans to streamline its existing business portfolio in response to the economic uncertainties brought by COVID-19[14]. - The board remains optimistic that business diversification will enhance shareholder value and promote sustainable growth in the long term[14]. - The group aims to diversify its business portfolio and seek new investment opportunities despite the challenges posed by COVID-19 and the uncertain economic environment[23]. Governance and Management - The company appointed Li Bing as CEO on November 1, 2017, who has extensive experience in private equity, mergers, and acquisitions[45]. - The board includes independent non-executive directors with extensive experience in finance, investment, and corporate governance, enhancing the company's strategic oversight[49][51][52][53]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, each with distinct responsibilities[72]. - The board is committed to maximizing shareholder value and improving long-term returns for shareholders[56]. - The company has ensured compliance with the standards set out in the code of conduct for securities trading by all directors during the year ending December 31, 2019[59]. Impairment and Financial Risks - Impairment losses on goodwill and intangible assets were recorded at approximately HKD 7,300,000 and HKD 32,400,000, respectively, due to reduced financial forecasts[30]. - The independent auditor's report highlighted concerns regarding the recoverability of trade and other receivables totaling HKD 20,887,000, which were fully provided for impairment[148]. - The independent auditor has expressed a reservation regarding the validity of certain other receivables amounting to approximately HKD 5,090,000 due to lack of supporting documentation[149]. - The company has not identified any significant risks based on the risk assessment conducted in 2019[95]. Employee and Operational Efficiency - The total employee cost for the year ended December 31, 2019, was approximately HKD 18,800,000, down from HKD 23,000,000 in 2018, reflecting a decrease of about 18.26%[135]. - The company employed 35 staff members as of December 31, 2019, compared to 41 in 2018, indicating a reduction of approximately 14.63% in workforce size[135]. - The group’s total operating expenses for the year were approximately HKD 56,100,000, a reduction from HKD 81,900,000 in the previous year, mainly due to streamlined operations and reduced employee costs[25]. Environmental and Social Responsibility - The company has been actively participating in waste reduction initiatives since 2015, aiming to minimize waste generated during operations[144]. - The company has committed to high standards of environmental, social, and governance performance, collaborating with stakeholders for sustainable business development[144].

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 35,304,000, an increase of 17.6% compared to HKD 30,172,000 for the same period in 2018[9] - Gross profit decreased to HKD 9,194,000, down 47.4% from HKD 17,484,000 in the previous year[9] - Operating loss for the period was HKD 18,306,000, slightly improved from a loss of HKD 19,691,000 in 2018[9] - The net loss attributable to equity holders of the company was HKD 135,128,000, compared to a profit of HKD 64,438,000 in the same period last year[9] - Basic and diluted loss per share was HKD 12.9, a decline from earnings of HKD 6.5 per share in 2018[9] - Total comprehensive loss for the period amounted to HKD 134,875,000, compared to a comprehensive income of HKD 61,443,000 in the prior year[12] - The company reported a significant impairment loss of HKD 4,485,000 on goodwill during the period[9] - Other income decreased to HKD 1,274,000 from HKD 3,126,000 in the previous year, reflecting a decline of 59.2%[9] - The company incurred financial costs of HKD 71,000, up from HKD 4,000 in the previous year, indicating increased financial burdens[9] Assets and Liabilities - Non-current assets decreased from HKD 116,118 thousand in 2018 to HKD 108,409 thousand in 2019, a decline of approximately 6.1%[15] - Current assets decreased significantly from HKD 189,585 thousand in 2018 to HKD 67,011 thousand in 2019, representing a decrease of about 64.7%[15] - Total liabilities increased from HKD 67,292 thousand in 2018 to HKD 72,599 thousand in 2019, an increase of approximately 8.5%[15] - The company's net asset value decreased from HKD 228,745 thousand in 2018 to HKD 93,870 thousand in 2019, a decline of about 59.0%[15] - The total equity attributable to equity holders decreased from HKD 225,728 thousand in 2018 to HKD 91,149 thousand in 2019, a decrease of approximately 59.5%[17] - Cash and cash equivalents decreased from HKD 13,915 thousand in 2018 to HKD 11,678 thousand in 2019, a decline of about 16.0%[15] - As of June 30, 2019, current liabilities exceeded current assets by approximately HKD 5,588,000[24] Cash Flow - The net cash used in operating activities was HKD (888,000) for the six months ended June 30, 2019, compared to HKD (52,192,000) in the same period of 2018[20] - The net cash generated from investment activities was HKD 359,000 for the six months ended June 30, 2019, compared to HKD (52,875,000) in the same period of 2018[20] - The net cash used in financing activities was HKD (1,726,000) for the six months ended June 30, 2019, compared to HKD 50,685,000 in the same period of 2018[20] - The company experienced a decrease in cash and cash equivalents of HKD 2,255,000 for the six months ended June 30, 2019[20] - The company has sufficient working capital for its current operations for the next twelve months after considering the loan from directors[24] Accounting Standards - The company adopted the Hong Kong Financial Reporting Standard 16, which significantly changed the accounting treatment for leases[29] - The adoption of Hong Kong Financial Reporting Standard 16 resulted in the recognition of right-of-use assets and lease liabilities amounting to approximately HKD 5,815,000 as of January 1, 2019[37] - The total lease liabilities as of January 1, 2019, were HKD 5,865,000, with a financing lease obligation of approximately HKD 50,000 classified as lease liabilities[36] - As of June 30, 2019, the right-of-use assets decreased to HKD 4,169,000 after amortization of HKD 1,652,000[42] - The total lease liabilities as of June 30, 2019, were HKD 4,214,000, with current liabilities amounting to HKD 3,238,000[42] Business Segments - The group's business segments include telecommunications services, financial payment processing solutions, software development services, distribution, property development, and tourism[45] - The financial payment processing segment generated revenue of HKD 31,076,000, while the solutions and software development services segment contributed HKD 4,228,000, compared to HKD 16,466,000 and HKD 13,706,000 respectively in the previous year[51] - The telecommunications business generated total revenue of approximately HKD 31,100,000, an increase of 88.5% from HKD 16,500,000 in the previous period, driven by the expansion of the wholesale voice telecommunications segment[104] - Revenue from the information technology and distribution business decreased by 69.3% to approximately HKD 4,200,000, down from HKD 13,700,000 in the previous period, due to global economic instability and weak consumer markets[105] Future Outlook - The company is focusing on strategic market expansion and new product development to improve future performance[9] - The group is currently seeking various opportunities in the telecommunications, media, and technology (TMT) sectors to diversify its business portfolio[104] - The group plans to continue pursuing new investment opportunities arising from the Belt and Road Initiative to enhance business performance and achieve sustainable growth[108] - The company anticipates maintaining its current market position while exploring potential growth opportunities in the future[95] Shareholder Information - As of June 30, 2019, the total issued and fully paid shares remained at 1,050,280,000, unchanged from the previous year[83] - Major shareholders include Hong Kong Great Wall with 222,820,000 shares, representing 21.22% ownership[138] - The new share option plan allows for a maximum of 105,028,000 options, equivalent to 10% of the issued shares as of the annual general meeting date[142] Corporate Governance - The company is committed to maintaining high standards of corporate governance and shareholder value[144] - Management will provide monthly updates to the board regarding the group's performance and financial status[145] - The company has adopted a standard code for securities trading by its directors, ensuring compliance[146]

Financial Performance - The company's revenue for 2018 was approximately HKD 67,920,000, a decrease of 5.3% from HKD 71,675,000 in 2017[6]. - The net loss for the year was HKD 16,148,000, an improvement from a loss of HKD 17,271,000 in the previous year, representing a reduction of 6.5%[6]. - The overall gross profit margin decreased to 45.3% from 54.7% year-on-year[15]. - Total revenue from the information technology and distribution business in 2018 was approximately HKD 21,800,000, accounting for 32.1% of the group's total revenue, a decrease of 4.0% from HKD 22,700,000 in 2017[18]. - The group recorded a one-time goodwill impairment loss of approximately HKD 5,100,000 in 2018, compared to HKD 21,000,000 in 2017, due to challenges in the business environment[20]. - The group recognized a loss provision of approximately HKD 45,700,000 for other receivables in 2018, which was not present in 2017[25]. - The group's total revenue for the year was approximately HKD 67,900,000, a decrease of 5.3% compared to the previous year, primarily due to reduced revenue from the information technology and distribution business[24]. - The overall gross profit margin for the year was 45.3%, down from 54.7% in the previous year, with gross profit decreasing by 21.4% to approximately HKD 30,800,000[24]. - The group’s operating loss was approximately HKD 46,800,000, an improvement from a loss of HKD 59,100,000 in the previous year[26]. - The group’s loss attributable to equity holders was approximately HKD 11,700,000, compared to a loss of HKD 15,700,000 in the previous year[27]. - The company reported a total loss of HKD 16,148,000 for the year ended December 31, 2018, compared to a loss of HKD 17,271,000 in 2017, representing a 6.5% improvement in performance year-over-year[197]. - The loss attributable to equity holders of the company was HKD 11,727,000 in 2018, down from HKD 15,735,000 in 2017, indicating a reduction of 25.8%[197]. - The company's basic and diluted loss per share improved to HKD (1.2) in 2018 from HKD (1.8) in 2017[197]. - Total comprehensive loss for the year was HKD 25,142,000, significantly higher than the HKD 11,411,000 reported in 2017, marking a 120.1% increase in losses[197]. Business Diversification and Strategy - The company is actively seeking opportunities to diversify its business portfolio, particularly in the enterprise IT solutions sector[12]. - A memorandum of understanding was signed to propose the sale of the underperforming IT and distribution business, which may enhance the company's financial position[12]. - The company established joint ventures in Xinjiang and Sichuan for developing cultural tourism and real estate projects[12]. - The board remains optimistic that business diversification will enhance shareholder value and promote sustainable growth in the long term[12]. - The group plans to diversify its business portfolio and seek new investment opportunities, particularly in response to the challenges faced in the information technology and distribution sector[22]. Corporate Governance - The company has maintained high levels of corporate governance, prioritizing shareholder interests and enhancing long-term shareholder value[57]. - The company has complied with the Listing Rules and Corporate Governance Code, ensuring proper appointment of a company secretary following the resignation of Ms. Chen Yan on March 13, 2018[58]. - The company confirmed that all directors have fully complied with the standards set out in the Model Code for Securities Transactions by Directors of Listed Issuers during the year ended December 31, 2018[60]. - The company has a strong board of independent non-executive directors with extensive experience in finance, auditing, and corporate governance[53][54][55]. - The board of directors consists of four executive directors and three independent non-executive directors, ensuring a diverse skill set and experience[61]. - The company has adopted a board diversity policy since 2013, focusing on various factors including gender, age, and professional experience to enhance decision-making[63]. - The company emphasizes transparency and accountability in its corporate governance policies[85]. - The company confirmed that it has complied with the corporate governance code as per the listing rules[85]. Financial Position and Assets - The company's total assets increased to HKD 228,745,000 from HKD 208,331,000, reflecting a growth of 9.7%[6]. - As of December 31, 2018, the net asset value of the group was approximately HKD 228.7 million, an increase from HKD 208.3 million in 2017[34]. - The company reported a significant decrease in trade and other receivables, which fell to HKD 43,531,000 in 2018 from HKD 69,792,000 in 2017, a decline of 37.6%[199]. - The company’s cash and cash equivalents decreased to HKD 13,915,000 in 2018 from HKD 69,409,000 in 2017, a drop of 80%[199]. - Non-current assets decreased to HKD 116,118,000 in 2018 from HKD 96,048,000 in 2017, reflecting a 21% increase[199]. - Current assets decreased to HKD 189,585,000 in 2018 from HKD 242,475,000 in 2017, a decline of 21.8%[199]. Shareholder Information - The board has not recommended the payment of dividends for the year ending December 31, 2018, consistent with the previous year[114]. - The company has no reserves available for distribution to shareholders as of December 31, 2018[116]. - Major shareholders include Hong Kong Great Wall, Great Wall Group, and Zhao Feifan, each holding 222,820,000 shares, or approximately 21.22%[133]. - As of December 31, 2018, Zhao Ruiyong holds 222,820,000 shares, representing approximately 21.22% of the company's equity[127]. Related Party Transactions - The company has established related party transactions with both Zhejiang Honglan and Hangzhou Kangyuan, requiring compliance with disclosure regulations[146][152]. - The auditor was unable to provide a letter confirming compliance with the listing rules due to insufficient information regarding the related party transactions[170]. - The related party transactions for the year ended December 31, 2018, are disclosed in the consolidated financial statements and do not fall under the definitions of "related transactions" or "continuing related transactions" as per the listing rules[171]. Environmental, Social, and Governance (ESG) Commitment - The company has been participating in the Hong Kong Green Organization Certification "Waste Reduction Certificate" program since 2015, aimed at encouraging businesses to reduce waste[174]. - The company emphasizes its commitment to high standards of environmental, social, and governance performance, focusing on employee development and environmental protection[174]. - The company plans to publish its Environmental, Social, and Governance report within three months after the annual report, providing further details on its performance[174].