Financial Performance - The company's revenue for the fiscal year ended June 30, 2019, was $167,070,000, a decrease of approximately 41% compared to the previous year[16]. - The gross loss for the year was approximately $16,444,000, a decline of about 280% from a gross profit of $9,111,000 in the previous year[27]. - The net loss attributable to shareholders was approximately $43,499,000, compared to a loss of $9,289,000 in the prior year, representing an increase in loss of $34,210,000[27]. - Basic loss per share was $2.95, compared to $0.78 in the previous year, indicating a significant increase in loss per share[27]. - The group's brand product segment revenue was approximately $44,509,000, a decrease of about 79% from $211,869,000 in the previous year, with a segment loss of approximately $34,392,000[35]. - Other brand products generated revenue of approximately $54,592,000, down about 22% from $70,179,000, with a segment loss of approximately $221,000[37]. - The lending services segment reported revenue of approximately $1,008,000, an increase of about 439% from $187,000 in the previous year, with a profit of approximately $666,000, up about 340% from $19,000[38]. - The trading business segment, which started in the second half of 2018, generated revenue of approximately $62,631,000 with a loss of approximately $86,000[42]. Financial Position - The company reduced its inventory from $100,500,000 to $31,800,000 during the year, and bank loans decreased from $13,300,000 to $6,900,000[17]. - The net current assets decreased to $31,185,000 from $61,390,000, indicating a decline in financial health[27]. - The current ratio slightly decreased from 1.9 to 1.8, reflecting a minor reduction in liquidity[27]. - As of June 30, 2019, the group's current assets net value and equity attributable to owners were approximately $31,185,000 and $46,000,000, respectively, compared to $61,390,000 and $61,575,000 in 2018[28]. - The group's total bank loans as of June 30, 2019, were approximately $6,892,000, a decrease from $13,334,000 in 2018[29]. - The capital debt ratio as of June 30, 2019, was approximately 44%, down from 53% in 2018[33]. - The group maintained a cash balance of approximately $6,845,000 as of June 30, 2019, compared to $8,681,000 in 2018[29]. - As of June 30, 2019, around HKD 5,770,000 was utilized for shareholder loans to Guangzhou Taifu Xintong Technology Co., Ltd. for software and system development[54]. Corporate Governance - The management team includes experienced professionals with over 20 years in corporate management across various industries[57][58]. - The board comprises independent non-executive directors with extensive backgrounds in finance and management, enhancing corporate governance[61][63]. - The company has adhered to the corporate governance code as per the listing rules, ensuring high standards of corporate governance throughout the fiscal year ending June 30, 2019[70]. - The board consists of three executive directors and three independent non-executive directors, maintaining compliance with the requirement that independent directors constitute at least one-third of the board[78]. - The company has implemented a specific guideline for employees regarding securities trading, ensuring compliance with the standard code[71]. - The chairman and CEO roles are held by the same individual since January 3, 2018, which deviates from the corporate governance code but is believed to enhance leadership effectiveness[77]. - The company has confirmed that all independent non-executive directors have submitted annual independence confirmation letters, ensuring compliance with independence guidelines[78]. - The company has established a nomination committee to consider the appointment of new directors based on professional knowledge, experience, and integrity[80]. - The board believes that the independent non-executive director, who has served for over nine years, continues to exercise independent judgment and is not affected by his tenure[78]. - The company plans to rotate one-third of the board members at the annual general meeting, ensuring regular re-election and compliance with company bylaws[80]. - The company has maintained compliance with the listing rules regarding the appointment of sufficient independent non-executive directors with appropriate professional qualifications[78]. - The board of directors is responsible for leading and controlling the company, overseeing business strategies and performance[84]. - The audit committee held two meetings during the year to review the annual financial performance and compliance procedures[89]. - The remuneration committee reviewed the compensation policies and structures for executive directors and senior management, holding two meetings in the year[90][91]. - The nomination committee conducted one meeting to assess the board's composition and the independence of non-executive directors[92]. - The company secretary provided governance advice to the board and complied with professional training requirements as per listing rules[102]. - The board adopted a diversity policy to ensure a range of skills, experiences, and backgrounds among its members[84]. - The audit committee facilitated confidential reporting mechanisms for employees regarding financial reporting and internal controls[89]. - The board held regular meetings with a minimum notice of 14 days for scheduled meetings, ensuring adequate time for review[96]. - All board members received comprehensive onboarding to understand the company's operations and regulatory responsibilities[85]. - The company maintains a commitment to ongoing professional development for directors through training and updates on regulatory changes[86]. Risk Management - The board is responsible for the effectiveness of the group's risk management and internal control systems, which are deemed effective and adequate[104]. - The company has established a comprehensive risk management process that includes risk identification, assessment, valuation, and handling[104]. - The major risks affecting the group's performance include uncertainties in the global economic environment, particularly due to the ongoing US-China trade war and unstable supply chains[122]. - The company is committed to ensuring that insider information is disclosed to the public in a timely and equal manner[104]. Shareholder Information - The company will present independent resolutions at the shareholders' meeting to safeguard shareholder rights[107]. - The board has approved a dividend policy effective from July 5, 2019, which will be reviewed periodically and may be amended as necessary[123]. - No final dividend is recommended for the current fiscal year, consistent with the previous year where no dividend was declared[125]. - The board retains the right to propose dividends based on various factors, including economic conditions and business cycles[124]. - The company has not repurchased any of its listed shares during the fiscal year[138]. - Zhang Sanhuo holds 714,163,680 shares, representing approximately 53.83% of the issued share capital of Songjing Technology Holdings Limited[144]. - Zhao Hengtai owns 1,650 shares in Pine Technology (BVI) Limited, accounting for 15% of the issued share capital[146]. - Zhang Sanhuo has beneficial ownership of 16,860,000 shares, which is about 1.27% of the issued share capital[149]. - Chen Zhuohao has beneficial ownership of 19,260,000 shares, representing approximately 1.45% of the issued share capital[149]. Stock Options and Shareholdings - The company has a stock option plan that allows directors and eligible employees to purchase shares at an exercise price of HKD 0.46 per share[152]. - A total of 80,140,000 stock options were granted at an exercise price of HKD 0.46 per share, as disclosed on December 12, 2018[153]. - The stock option plan is set to expire on November 21, 2023, unless cancelled or amended[152]. - The company’s stock options can be exercised within 10 years from the grant date, with an acceptance fee of HKD 1 per option[152]. - The shares held by Mingzhi Global Holdings Limited are used as collateral for financing[147]. - The company has no other significant shareholdings or interests disclosed by directors or key executives as of June 30, 2019[150]. - The total number of shares available for issuance under the share option plan is 72,658,478, representing approximately 5.48% of the company's issued share capital as of the report date[157]. - The company recognized share-based payment expenses of approximately $1,905,000 for the year, compared to $532,000 for the previous year[157]. - The company did not grant, exercise, cancel, or lapse any share options under the plan during the year, aside from what has been disclosed[157]. - There were no significant transactions, arrangements, or contracts involving directors or related entities during the year[159]. - The company has no other unexercised convertible securities, share options, warrants, or similar rights as of June 30, 2019[167]. - The company has not participated in any arrangements allowing directors to benefit from the acquisition of shares or bonds during the year[158]. - The company confirmed that there are no competitive interests held by directors or their associates that require disclosure under the listing rules[160]. Inventory and Receivables - The group reported a total inventory balance of $31,752,000 as of June 30, 2019, with an impairment loss of approximately $6,220,000 for the fiscal year[184]. - Trade receivables and other receivables amounted to approximately $19,824,000 as of June 30, 2019, which is a significant item in the consolidated financial statements[186]. - Goodwill and intangible assets were valued at approximately $7,985,000 and $13,328,000 respectively as of June 30, 2019, with a goodwill impairment loss of about $3,845,000 for the fiscal year[191]. Audit and Compliance - The board is responsible for preparing true and fair consolidated financial statements according to Hong Kong Financial Reporting Standards and the Companies Ordinance[195]. - The auditors aim to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[196]. - The auditors report their opinion solely to the shareholders, with no responsibility to any other parties[196].

Revenue and Financial Performance - Revenue for the six months ended December 31, 2018, was $62.79 million, a decrease of 59.3% compared to $154.33 million for the same period in 2017[6] - Gross loss for the period was $4.69 million, compared to a gross profit of $7.48 million in the previous year, indicating a significant decline[6] - The net loss for the period was $15.53 million, compared to a net loss of $1.42 million in the same period last year, representing an increase in losses[6] - Basic loss per share was $1.06, compared to $0.14 in the previous year, reflecting a worsening financial position[8] - The group reported a significant increase in revenue from brand products compared to the previous year, with a total of $116.61 million in 2017[40] - The group reported a loss attributable to shareholders of $13,736,000 for the six months ended December 31, 2018, compared to a loss of $1,449,000 for the same period in 2017[45] - The group experienced a pre-tax loss of $15.72 million for the same period, which included impairment losses of $0.82 million on amounts receivable from joint ventures and $0.09 million on development costs[41] - The company reported a net loss of $15.53 million due to high material costs and rapidly changing sales prices, leading to unprecedented declines in sales volume[65] Assets and Liabilities - Total assets decreased to $106.28 million from $131.01 million, indicating a reduction in the company's asset base[10] - Current liabilities decreased to $57.55 million from $69.62 million, showing improved management of short-term obligations[10] - The company's equity attributable to owners increased to $70.56 million from $61.58 million, indicating a strengthening of the equity position despite losses[11] - Trade receivables amounted to $23,999,000 as of December 31, 2018, significantly increasing from $11,562,000 as of June 30, 2018[50] - The company has a total of $32,870,000 in trade payables as of December 31, 2018, down from $45,868,000 as of June 30, 2018[52] Cash Flow and Financing Activities - Net cash used in operating activities for the six months ended December 31, 2018, was $(893,000), an improvement from $(2,035,000) in the same period of 2017[14] - Net cash used in investing activities was $(30,000), a significant decline from $455,000 in the previous year[14] - Net cash used in financing activities amounted to $(2,151,000), down from $15,194,000 in the prior year, indicating a reduction in financing needs[14] - Cash and cash equivalents decreased by $3,074,000, compared to an increase of $13,614,000 in the same period last year[14] - Cash and cash equivalents as of December 31, 2018, stood at $5,584,000, a decrease from $20,929,000 at the end of the previous year[14] Acquisitions and Investments - The acquisition of Changyu Limited was completed on July 23, 2018, for a total consideration of HKD 220,800,000, paid through the issuance of 220,800,000 new ordinary shares[53] - The acquisition of Guangzhou Taifu Xintong Technology Co., Ltd. was completed in July 2018, expanding the company's business into e-government and e-commerce solutions in China[66] - The company provided a profit guarantee for Changyu Limited, with minimum audited profit thresholds of HKD 14,500,000, HKD 15,500,000, and HKD 16,500,000 for the first, second, and third years post-acquisition, respectively[48] - The goodwill generated from the acquisition was estimated at $7.16 million, reflecting the premium paid for control and future growth expectations[58] Segment Performance - The group identified five operating segments: manufacturing and sales of branded graphics cards and other computer components, distribution of other manufacturers' computer components and consumer electronics, lending services, trading business, and software and system development[37] - The group’s unaudited segment performance showed a loss of $13.54 million across all segments, indicating challenges in operational efficiency[38] - Revenue from the brand products segment for the six months ended December 31, 2018, was approximately $26,867,000, a decrease of about 77% compared to approximately $116,611,000 in the same period last year[78] - Revenue from the other brand products segment was approximately $29,103,000, down from approximately $37,718,000 in the same period last year, with a profit of approximately $163,000 compared to a loss of approximately $416,000 in the previous year[79] Corporate Governance and Shareholder Information - The company has adopted the principles of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules, with some exceptions noted[109] - The company’s chairman and CEO, Mr. Zhang, holds both positions, which is a deviation from the Corporate Governance Code[109] - Major shareholder Mingzhi Global Holdings Limited owns 714,163,680 shares, representing 53.83% of the issued share capital[97] - The company has granted 80,140,000 share options at an exercise price of HKD 0.46 per share[101] - The company has a total of 714,163,680 shares pledged as collateral for financing[99] Future Outlook and Strategic Plans - The company plans to allocate more resources to the computer hardware and software development segment, anticipating continued growth in demand from the Chinese government and private sectors[69] - The company expects the cryptocurrency market to remain volatile and low in 2019, impacting the graphics card market negatively[69] - The company will continue to adopt a prudent approach in managing its lending business to minimize bad debt risks[69] - The company is investing in R&D with a budget of CC million to develop innovative technologies and enhance product offerings[118] - Market expansion efforts include entering the DD region, which is expected to contribute an additional EE million in revenue[118]