Financial Performance - Revenue for the six months ended June 30, 2020, was HK$79,883,000, a decrease of 34.3% compared to HK$121,390,000 in the same period of 2019[12]. - Gross profit for the same period was HK$2,676,000, down 76.1% from HK$11,234,000 in 2019[12]. - Loss from operations was HK$36,733,000, compared to a loss of HK$35,065,000 in the prior year, indicating a slight increase in operational losses[12]. - Loss before tax for the period was HK$40,245,000, up from HK$36,907,000 in 2019, reflecting a worsening financial position[12]. - The total comprehensive loss for the period was HK$45,304,000, compared to HK$35,952,000 in the same period last year, representing a 25.9% increase in losses[16]. - Basic loss per share for the period was HK$0.14, compared to HK$0.13 in 2019, indicating a decline in per-share performance[12]. - Other income for the period was HK$3,822,000, down 38.4% from HK$6,206,000 in the previous year[12]. - The consolidated loss for the period was HK$40,398,000, compared to a loss of HK$37,879,000 in the same period of 2019, representing an increase in loss of 3.4%[67]. - Government grants received decreased to HK$427,000 from HK$1,807,000, a decline of 76.4% year-over-year[67]. - Interest income for the period was HK$122,000, down from HK$327,000, a decrease of 62.7%[67]. Operational Costs - Administrative expenses increased to HK$30,270,000, up from HK$27,951,000 in 2019, reflecting rising operational costs[12]. - Distribution costs decreased significantly to HK$5,937,000 from HK$18,695,000, showing a reduction in sales-related expenses[12]. - Other operating expenses of approximately HK$7.0 million were mainly due to impairment losses on loan receivables, intangible assets, and goodwill during the period[196]. - The gross profit margin decreased from 9.3% to approximately 3.3% for the six months ended June 30, 2020, mainly due to the decrease in gross profit margin of the household business and low profit margin for the online gaming business[196]. Assets and Liabilities - Cash and cash equivalents at June 30, 2020, amounted to HK$33,174,000, down from HK$46,999,000 at the same date in 2019[31]. - Current liabilities totaled HK$107,239,000 as of June 30, 2020, compared to HK$108,657,000 at December 31, 2019[24]. - Trade payables increased to HK$14,765,000 at June 30, 2020, from HK$10,335,000 at December 31, 2019[24]. - The Group's total equity at June 30, 2020, was reported at (HK$21,338,000), a decrease from HK$16,353,000 at December 31, 2019[24]. - The Group's net current liabilities were (HK$8,860,000) as of June 30, 2020, compared to net current assets of HK$30,092,000 at December 31, 2019[24]. - Total assets exceeded total liabilities by approximately HK$21,338,000 as of June 30, 2020[38]. Segment Performance - The stainless steel furnishings segment generated revenue of HK$65,124,000, while the online game segment contributed HK$12,915,000, property investment brought in HK$657,000, and money lending accounted for HK$1,187,000[60]. - The total segment loss for the online game segment was HK$1,754,000, and the property investment segment reported a loss of HK$28,260,000[60]. - The impairment of assets in the property investment segment was HK$5,524,000, and the online game segment experienced an impairment of HK$1,500,000[60]. - The Group has four reportable segments: stainless steel furnishings, property investment, money lending, and online game, consistent with the previous year[58]. Related Party Transactions - Related party transactions included purchases from Ningbo JF Furniture Co., Limited amounting to HK$764,000 in 2020, down from HK$1,236,000 in 2019[180]. - Leasing charges paid to Ningbo JF Furniture Co., Limited were HK$1,473,000 in 2020, compared to HK$1,251,000 in 2019[180]. - Interest expenses paid to Imperium Credit Limited increased to HK$1,186,000 in 2020 from HK$300,000 in 2019[180]. - The total balance due to related companies was HK$105,136,000 as of June 30, 2020, compared to HK$100,978,000 at December 31, 2019[188]. Future Outlook and Changes - The Group is undergoing a transformation from a traditional household product manufacturer to a high-profit gaming company due to unfavorable market conditions[200]. - The Group anticipates no future impact from the amendments to the Hong Kong Financial Reporting Standards on its financial statements[58]. - The Group's accounting policies remain consistent with those used in the preparation of the annual financial information for the year ended December 31, 2019[42].

Financial Performance - The Group's turnover decreased by approximately HK$18,797,000 to approximately HK$233,567,000 in 2019[25] - The loss attributable to shareholders increased to approximately HK$77,936,000, representing an increase of approximately HK$43,035,000 compared to 2018[25] - Total revenue of the Group decreased marginally by approximately 7.4% during the reporting period, indicating the business plan to diversify into the online games segment is gaining momentum[57] - Revenue from the household products business decreased by approximately 23.5% to HK$182,810,000 compared to HK$238,848,000 in 2018[56] - Revenue from the online games business increased by approximately 766.5% to HK$44,029,000 compared to HK$5,081,000 in 2018[72] - The Group reported a revenue of approximately HK$233,567,000 for the fiscal year ended 31 December 2019, a decrease of 7.4% from HK$252,363,000 in 2018[83] - Revenue from the money lending business was approximately HK$5,264,000, down from HK$7,105,000 in 2018, with a segment loss of approximately HK$4,088,000 due to impairment losses[76] - The property investment business generated revenue of approximately HK$1,463,000, an increase from HK$1,329,000 in 2018, with a segment profit of approximately HK$1,822,000[77] Assets and Liabilities - Total assets for the year were approximately HK$225,659,982[9] - Total liabilities increased to approximately HK$209,307,135[9] - Equity attributable to owners of the Company was approximately HK$18,590,811[9] - The Group's bank borrowings as of 31 December 2019 were approximately HK$41,416,000, down from HK$44,952,000 in 2018[88] - The gearing ratio increased from 30.4% in 2018 to 59.7% in 2019, reflecting an increase in long-term loans from related parties[88] - As of 31 December 2019, the Group had cash and bank balances of approximately HK$56,962,000, an increase from HK$47,338,000 in 2018[88] - Capital commitments amounted to approximately HK$11,393,000 as of 31 December 2019, related to the acquisition of licensing rights and other video material for online games[88] Business Operations - The challenging environment faced by the Group's household products business contributed to the increase in loss[25] - Continuous investment in the online game business was a factor in the Group's financial performance[25] - The overall manufacturing business improved due to a decrease in export sales[25] - The portion of sales from new products in the household products business decreased to approximately 7.9%, down from 32.7% in 2017 and 39.5% in 2018[56] - The gross profit margin of the household products business maintained at approximately 8.4%, consistent with 2018[56] - The Group plans to broaden its product range to include console games and explore expansion into the lucrative PRC market[41] - The Group has entered into a licensing agreement for the distribution of a PC game titled "W-War" in Southeast Asia and Taiwan[74] - The Group aims to develop a more flexible operation structure to enhance long-term growth potential[41] - The Group will continue to diversify its customer base for the household products business to mitigate risks associated with major customers[73] Cost and Expenses - Distribution costs rose significantly from approximately HK$7,601,000 in 2018 to approximately HK$26,543,000 in 2019, attributed to marketing expenses for new online games[83] - Gross profit margin decreased from 11.0% in 2018 to 9.1% in 2019, primarily due to low profit margins in the online game business[83] - Other income increased from approximately HK$1,783,000 in 2018 to approximately HK$5,889,000 in 2019, mainly due to increased exchange gains and fair value gains on investment properties[83] Employee and Management - The Group's employee remuneration, including Directors' emoluments, decreased by approximately HK$2,686,000 to approximately HK$66,751,000 for the fiscal year of 2019[100] - As of December 31, 2019, the Group employed approximately 558 staff[100] Corporate Governance - The Board does not recommend the payment of any final dividend for the year ended December 31, 2019, consistent with the previous year[140] - The Company has not made any changes to its share capital during the year, as detailed in the financial statements[149] - The Company has confirmed that it meets the public float requirements as of the report date[199] - The Group's business operations are conducted independently from competing businesses, ensuring an arm's length basis[193] - No conflicts of interest have been reported among directors or management shareholders as of December 31, 2019[198] Market and Economic Environment - The PRC's gross domestic product annual growth rate was 6.3% in 2019, down from 6.6% in 2018[25] - The Group is exposed to fluctuations in exchange rates, particularly with respect to RMB[99] - The Group adopts a prudent approach to treasury and funding policies, focusing on risk management[101] - The Group's financial position will be evaluated from time to time to adapt to a rapidly changing economic environment[101]

Financial Performance - Revenue for the six months ended June 30, 2019, was HK$121,390,000, a decrease of 7.3% compared to HK$131,306,000 in the same period of 2018[9] - Gross profit for the same period was HK$11,234,000, down 23.8% from HK$14,718,000 in 2018[9] - Loss from operations was HK$35,065,000, compared to a loss of HK$10,602,000 in the prior year, indicating a significant increase in operational losses[9] - Loss for the period attributable to owners of the company was HK$37,398,000, compared to HK$13,275,000 in 2018, reflecting a substantial increase in net losses[9] - Basic and diluted loss per share for the period was HK$0.13, compared to HK$0.05 in the same period last year[9] - Total comprehensive loss for the period was HK$35,952,000, compared to HK$14,659,000 in 2018, indicating a worsening financial position[12] - The consolidated loss for the period was HK$37,879,000, compared to a loss of HK$13,275,000 in the same period of 2018, representing an increase in loss of 185.5%[111] Income and Expenses - Other income increased significantly to HK$6,206,000 from HK$1,682,000 in 2018, marking a growth of 269.5%[9] - Administrative expenses rose to HK$27,951,000 from HK$21,850,000, an increase of 27.5% year-over-year[9] - Distribution costs surged to HK$18,695,000 from HK$305, reflecting a significant increase in expenses related to sales[9] - Interest expense for the six months ended June 30, 2019 was HK$1,392,000[100] - The Group's government grants and other income components contributed HK$1,807,000 and HK$4,000, respectively, to the total other income for the period[111] Assets and Liabilities - Total equity of the Group decreased to HK$57,934, down 37.2% from HK$92,316 at the beginning of the year[22] - Current liabilities increased to HK$118,434, up from HK$98,208 at the end of 2018[20] - Net current assets improved to HK$28,164, compared to HK$7,695 at the end of 2018[20] - Trade receivables decreased to HK$20,994, down 21.0% from HK$26,535 at the end of 2018[19] - The Group's trade and bills payables amounted to HK$18,061,000 as of June 30, 2019, slightly down from HK$18,315,000 at the end of 2018[138] - The Group's loan receivables were HK$17,540,000 as of June 30, 2019, compared to HK$23,462,000 at the end of 2018, indicating a decrease of 25.3%[132] Cash Flow - Net cash used in operating activities was HK$3,695, compared to a net cash inflow of HK$33,476 in the same period last year[26] - Cash and cash equivalents at 30 June 2019 were HK$46,999, a decrease from HK$90,466 at the same time last year[26] Accounting Standards and Policies - The Group has adopted all new and revised Hong Kong Financial Reporting Standards (HKFRSs) effective from January 1, 2019[48] - HKFRS 16 Leases has been initially adopted, introducing a single on-balance sheet accounting model for lessees, impacting the recognition of right-of-use assets and lease liabilities[48] - The Group's financial statements are prepared on a historical cost basis, except for certain properties and financial instruments measured at fair value[42] - The Group's accounting policies remain consistent with those followed in the preparation of the annual financial information for the year ended December 31, 2018[42] - The Group has adopted HKFRS 16, recognizing right-of-use assets and lease liabilities for most leases, impacting financial reporting from January 1, 2019[69] Lease Accounting - The Group's right-of-use assets primarily relate to properties, reflecting its leasing strategy[71] - Lease liabilities for operating leases were measured at the present value of remaining lease payments, discounted at the Group's incremental borrowing rate as of January 1, 2019[75] - The Group recognized additional right-of-use assets and lease liabilities upon transitioning to HKFRS 16, impacting the financial position as of January 1, 2019[82] - The assessment of lease terms, including renewal options, significantly affects the amount of lease liabilities and right-of-use assets recognized[75] Market Strategy and Future Outlook - The company is focusing on expanding its market presence, as indicated by the increase in related party loans and capital commitments[142] - The company is exploring new market expansion opportunities to increase its revenue streams[196] - There is an emphasis on developing new products and technologies to stay competitive in the market[198] - The company aims to improve its financial performance through targeted acquisitions and mergers[197] - The financial data presented is crucial for assessing the company's market position and future outlook[199]

Financial Performance - The Group's revenue for 2018 was approximately HK$252,363,000, an increase of about HK$32,847,000 compared to 2017[18]. - The loss attributable to shareholders for 2018 was approximately HK$34,901,000, representing an increase of approximately HK$25,788,000 from 2017[18]. - The basic loss per share for 2018 was HK$0.12, compared to HK$0.03 in 2017[5]. - The group's total revenue for the fiscal year ended 31 December 2018 was approximately HK$252,363,000, representing a 15.0% increase from 2017[72]. - Gross profit margin increased from 9.8% in 2017 to 11.0% in 2018 due to higher production volume of household products and the high profit margin from the money lending business[73]. - Employee remuneration, including Directors' emoluments, increased by approximately HK$23,239,000 to approximately HK$69,437,000 for the fiscal year of 2018[96]. - The Group's gearing ratio decreased from 19.6% in 2017 to 18.2% in 2018, attributed to a reduction in bank borrowings in the PRC[85]. Business Segments - Revenue from the household products business was approximately HK$238,848,000 in 2018, reflecting a 13.8% increase from approximately HK$209,877,000 in 2017[25]. - The segmental loss for the household products business was approximately HK$947,000 in 2018, a significant improvement from a loss of approximately HK$7,921,000 in 2017[25]. - Revenue from the mobile game business was approximately HK$5,081,000 during the reporting period, with a segment loss of approximately HK$27,906,000, compared to a loss of approximately HK$5,835,000 in 2017[28]. - The money lending business generated revenue of approximately HK$7,105,000 in 2018, down from HK$8,745,000 in 2017, with a segment profit of approximately HK$2,393,000 compared to HK$5,683,000 in 2017[34]. - Revenue from the property investment business was approximately HK$1,329,000 in 2018, an increase from approximately HK$895,000 in 2017, with a segment profit of approximately HK$3,521,000 compared to HK$1,324,000 in 2017[35]. Investments and Acquisitions - The Group completed the acquisition of Cubinet Interactive in July 2018 to expand its mobile game business in Southeast Asia[27]. - The Group invested approximately HK$9,500,000 in capital expenditure to enhance its environmental, social, and governance (ESG) standards, with an additional estimated investment of HK$6,000,000 required[52]. Market Trends and Strategy - The global games market size increased by 13.3% to US$137.9 billion in 2018, with the Asia Pacific market growing by 16.8% and representing 52% of the global market[56]. - Mobile gaming generated approximately US$70.2 billion in 2018, accounting for 51% of all global game revenues, with US$56.4 billion from smartphone gaming and US$13.9 billion from tablet games[56]. - The Group plans to focus on the mobile game business as a key growth driver, with intentions to publish more new titles in 2019 and invest in research and development[44]. - The Group believes that the mobile game business will become the major contributor to its financial performance in the near future[121]. - The mobile game industry is rapidly growing, with the Group having established a strong foundation for accelerated growth since entering the segment in the second half of 2017[112]. Risks and Challenges - The household products business is heavily concentrated, with the largest customer contributing over 95% of the segment's revenue, posing a risk to sales performance[104]. - The mobile games industry is highly competitive, requiring significant marketing campaigns and financial resources for commercial success[117]. - External interruptions, such as hacking, could adversely affect the Group's sales performance and financial position if not addressed[118]. - Changes in legal and regulatory requirements across different countries may disrupt the Group's financial performance and operational model[119]. Operational Insights - The Group has established a strong foundation for its mobile business, aligning with its strategy to broaden its income base[19]. - The Group has not entered into any derivative contracts to hedge against foreign exchange risks, which may affect performance due to fluctuations in RMB[95]. - The implementation of appropriate internal control measures has been established to monitor business performance[120]. - The Group aims to expand its network in the mobile game industry through partnerships with studios and investors[120]. Customer and Supplier Concentration - The largest customer accounted for 93.17% of the group's total sales during the financial year[186]. - The aggregate sales from the five largest customers represented 95.03% of the group's total sales[186]. - The largest supplier contributed 21.91% to the group's total purchases[186]. - The aggregate purchases from the five largest suppliers accounted for 56.23% of the group's total purchases[186].