Financial Performance - Revenue for the six months ended December 31, 2019, was $77,389,000, representing a 23.2% increase from $62,790,000 in the same period of 2018[7]. - Gross loss for the period was $5,275,000, compared to a gross loss of $4,694,000 in the previous year, indicating a decline in gross margin[7]. - The company reported a loss before tax of $14,215,000, slightly improved from a loss of $15,721,000 in the prior year[7]. - Total comprehensive loss for the period was $14,547,000, compared to $16,007,000 in the same period of 2018, showing a reduction in overall losses[9]. - Basic and diluted loss per share was $0.92, an improvement from $1.06 in the previous year[9]. - The company reported segment losses of $12,231,000 for the six months ended December 31, 2019, compared to segment losses of $13,535,000 in the same period of 2018[23][25]. - The net loss for the period was approximately $14.41 million, with gross loss around $5.28 million, compared to a gross loss of approximately $4.69 million in the previous year[38]. Assets and Liabilities - Non-current assets decreased to $22,939,000 from $23,118,000 as of June 30, 2019[11]. - Current assets decreased to $65,153,000 from $69,787,000, primarily due to a reduction in inventory[11]. - Current liabilities increased to $47,993,000 from $38,602,000, indicating a rise in trade payables[11]. - Total equity decreased to $38,026,000 from $52,133,000, reflecting a significant decline in reserves[12]. - Trade receivables at the end of the reporting period amounted to $31.03 million, significantly up from $18.48 million at the end of the previous period[32]. - The group's current assets net value as of December 31, 2019, was approximately $17,160,000, down from $31,185,000 on June 30, 2019[49]. - The group reported a current ratio of approximately 1.4 as of December 31, 2019, compared to 1.8 on June 30, 2019[49]. Cash Flow - The company reported a net cash outflow from operating activities of $3,576,000 for the six months ended December 31, 2019, compared to a net outflow of $893,000 for the same period in 2018[16]. - The company’s cash and cash equivalents decreased by $1,375,000 during the six months ended December 31, 2019, compared to a decrease of $3,074,000 in the same period of 2018[16]. - The company’s total cash and cash equivalents as of December 31, 2019, were $5,423,000, down from $5,584,000 as of December 31, 2018[16]. - The company’s financing activities generated a net cash inflow of $2,278,000 for the six months ended December 31, 2019, compared to a net cash outflow of $2,151,000 in the same period of 2018[16]. Revenue by Division - The brand products division generated revenue of approximately $42,408,000, an increase of about 58% from $26,867,000 in the same period last year[55]. - The lending services division's revenue increased by approximately 15% to $553,000 from $482,000 in the previous year[59]. - The computer hardware and software development division's revenue decreased by approximately 16% to $1,770,000 from $2,103,000 in the same period last year[63]. - The trade business division's revenue increased by approximately 50% to $6,345,000 from $4,235,000 in the previous year[62]. Shareholder Information - As of December 31, 2019, the major shareholder, Mingzhi Global Holdings Limited, holds 714,163,680 shares, representing approximately 53.83% of the issued share capital[70]. - The company’s executive director, Zhang Sanhuo, has a beneficial ownership of 16,860,000 shares, accounting for about 1.27% of the issued share capital[74]. - The company’s executive director, Chen Zhuohau, holds 19,260,000 shares, which is approximately 1.45% of the issued share capital[74]. - PINE Technology (BVI) Limited, under the beneficial ownership of Simply Perfect Group Limited, holds 1,650 shares, representing 15% of the issued share capital[71]. - All shares held by Mingzhi Global Holdings Limited were pledged as collateral for financing as of December 31, 2019[78]. Stock Options and Corporate Governance - The company has stock options allowing Zhang Sanhuo to purchase 6,000,000 shares at HKD 0.83 and 10,860,000 shares at HKD 0.46[76]. - Chen Zhuohau has stock options to purchase 6,000,000 shares at HKD 0.83 and 13,260,000 shares at HKD 0.46[76]. - The company has granted a total of 80,140,000 stock options at an exercise price of HKD 0.46 per share under the 2018 stock option plan[80]. - The stock option plan is set to expire on November 21, 2023, unless canceled or amended[79]. - The company has complied with all provisions of the corporate governance code, except for specific clauses regarding the separation of roles between the chairman and the CEO[87]. - The board believes that the current structure of having the same individual serve as both chairman and CEO is beneficial for effective strategy implementation[87]. Operational Focus and Future Plans - The company is focusing on new product development and market expansion strategies to improve future performance[6]. - The company plans to focus on reducing operational costs and inventory levels while maintaining flexibility in response to the ongoing COVID-19 pandemic[44]. - The performance of the trading business in joint ventures in China has declined due to increased operating costs and market competition, but the overall impact on the company's financial position is considered minimal[41]. - The company will continue to review the composition of its loan portfolio and the interest rates charged to maximize revenue and mitigate credit risk[40]. - The lending business is expected to remain a stable source of income, with management adopting a cautious approach to maintain healthy cash flow[46].

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]