Financial Performance - The company's revenue for the fiscal year ended June 30, 2022, was approximately $7,817,000, a decrease of about 36% compared to $12,219,000 in the previous year[4]. - The gross profit margin fell to 22% from 36% year-on-year, with gross profit decreasing to approximately $1,750,000 from $4,392,000, a decline of about 60%[7]. - The annual loss for the company was approximately $8,443,000, compared to a loss of $2,091,000 in the previous year, representing an increase of 304%[4]. - The company reported an operating loss of $8,542,000, compared to an operating loss of $1,963,000 in the previous year, indicating a significant increase in losses[160]. - The annual loss attributable to the company’s owners was $8,220,000, compared to a loss of $2,524,000 in the previous year, reflecting a 225.5% increase in losses[163]. - Total assets decreased to $26,174,000 from $35,657,000, a decline of 26.5% year-on-year[161]. - The company's net equity dropped to $24,838,000 from $33,393,000, representing a decrease of 25.7%[162]. - The basic and diluted loss per share for the year was $0.62, compared to $0.19 in the previous year, indicating a worsening financial position[160]. - Other comprehensive loss for the year totaled $112,000, contrasting with a comprehensive income of $249,000 in the previous year[160]. Cash Flow and Liquidity - Cash and cash equivalents increased significantly to $14,313,000, up 199% from $4,784,000 in the previous year[4]. - For the year ended June 30, 2022, the net cash generated from operating activities was $10,744 thousand, a significant increase from $649 thousand in the previous year, representing a growth of approximately 1,553%[164]. - The net cash inflow from financing activities was negative at $780 thousand, worsening from a negative $234 thousand in the previous year[165]. - The total cash and cash equivalents at the end of the reporting period increased to $14,313 thousand, up from $4,784 thousand, marking a growth of approximately 199%[165]. Goodwill and Impairment - The company recorded goodwill impairment losses of approximately $5,640,000, primarily related to a Chinese subsidiary's goodwill[17]. - A goodwill impairment loss of USD 5,640,000 was recorded in the profit and loss statement for the year ended June 30, 2022, significantly impacting the consolidated financial statements[152]. - The company experienced a significant impairment loss of goodwill amounting to $5,640 thousand during the year, which was not present in the previous year[164]. Cost Management - General and administrative expenses decreased by about 42%, from approximately $7,287,000 to $4,259,000, due to strict cost control measures[19]. - Employee costs, including director remuneration, amounted to approximately $3,926,000 this year, down from about $5,981,000 last year[43]. - The company plans to introduce new products and services to expand its customer base and implement cost control policies to maintain competitiveness[8]. Corporate Governance - The company has adopted the new corporate governance code effective from January 1, 2022, ensuring compliance with the latest developments in corporate governance practices[57]. - The board of directors has confirmed adherence to the standard code of conduct for securities trading, with all directors affirming compliance throughout the year[58]. - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[57]. - The board consists of executive and independent non-executive directors, with a total of at least three independent non-executive directors, representing at least one-third of the board[62][63]. - The company is committed to ongoing compliance with the listing rules and corporate governance standards set by the exchange[58]. Market and Economic Conditions - The company will continue to assess the impact of COVID-19 on its financial condition and operating performance, adjusting its business strategies accordingly[8]. - The board anticipates a challenging economic environment due to ongoing COVID-19 impacts, rising global interest rates, and geopolitical uncertainties, particularly from the Russia-Ukraine conflict[40]. - The company faces potential trade restrictions and tariffs between the US and China, which could increase product costs and impact consumer confidence[98]. Shareholder Relations - The company emphasizes high transparency in communication with shareholders, maintaining ongoing dialogue through annual general meetings and financial reports[92]. - The company is committed to ensuring that shareholders can easily access fair and understandable information about its performance and strategies[92]. - The company has a responsibility to notify shareholders of any formal motions proposed for the upcoming annual general meeting if requested by a certain percentage of shareholders[91]. Audit and Compliance - The Audit Committee held two meetings this year to review the annual financial performance and reports, as well as the interim results for the six months ending December 31, 2021[72]. - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of June 30, 2022[149]. - The company has implemented internal controls deemed necessary for the preparation of consolidated financial statements[156]. Stock Options and Employee Benefits - The company has a stock option plan that allows for the issuance of options to purchase up to 132,670,173 shares, representing approximately 10% of the issued shares as of the date of the shareholders' annual meeting[127]. - The exercise price for options granted under the plan is set at HKD 0.46 and HKD 0.83, with a total of 80,140,000 options granted at the exercise price of HKD 0.46[126]. - The remuneration policy for employees is based on performance, qualifications, and work capability, with the board determining the compensation for directors and senior management[140].

INTERIM REPORT 2022 中期報告 * For identification purpose only 僅供識別 松景科技控股有限公司 * (Incorporated in Bermuda with limited liability) (於百慕達註冊成立之有限公司) Stock Code 股份代號 : 1079 目錄 審核委員會 蘇漢章先生 （主席） 周春生先生 田宏先生 薪酬委員會 蘇漢章先生 （主席） 張三貨先生 周春生先生 田宏先生 提名委員會 張三貨先生 （主席） 蘇漢章先生 周春生先生 田宏先生 註冊辦事處 Clarendon House 2 Church Street Hamilton HM 11 Bermuda | | 頁次 | | --- | --- | | 公司資料 | 2 | | 管理層之討論及分析 | 3-7 | | 其他資料 | 8-19 | | 簡明綜合損益及其他全面收益表 | 20-21 | | 簡明綜合財務狀況表 | 22-23 | | 簡明綜合權益變動表 | 24 | | 簡明綜合現金流量表 | 25 | | 簡明綜合中期財務報表附註 | 26-34 | 公司資 ...

Financial Performance - The company's revenue for the fiscal year ended June 30, 2021, was approximately $12,219,000, a decrease of about 89% compared to $109,386,000 in the previous year[21]. - The gross profit turned from a loss of approximately $1,264,000 last year to a profit of approximately $4,392,000 this year[22]. - The net loss attributable to the company's owners was approximately $2,524,000, significantly reduced from $17,318,000 in the previous year[22]. - Operating expenses decreased by approximately 48% to about $7,734,000 from approximately $14,949,000 last year due to strict cost control measures[22]. - The company generated a cash net inflow from operating activities of $649,000, a decrease of $3,053,000 compared to $3,702,000 in the previous year[21]. - The company recorded other income of approximately $967,000 this year, compared to other losses of approximately $3,228,000 last year[22]. - Revenue from brand products decreased by approximately 100% to about $2,000 compared to approximately $55,369,000 in the previous year[32]. - Revenue from other brand products declined by approximately 89% to about $4,294,000 from approximately $39,740,000 in the previous year[33]. - Revenue from lending services increased by approximately 6% to about $1,163,000 from approximately $1,101,000 in the previous year, with profit rising by approximately 35% to about $993,000[34]. - Revenue from computer software and system development services decreased by approximately 2% to about $6,760,000 from approximately $6,868,000 in the previous year, with profit turning around to approximately $1,153,000[36]. Financial Position - The current ratio improved from 4 to 5.17, indicating better short-term financial health[24]. - The total current assets as of June 30, 2021, were approximately $20,484,000, down from $22,053,000 the previous year[24]. - Cash and bank balance increased from approximately $4,252,000 on June 30, 2020, to approximately $4,784,000 on June 30, 2021[25]. - Total liabilities decreased by approximately $1,231,000 or about 17% from June 30, 2020, totaling approximately $6,223,000 on June 30, 2021[25]. - The capital-to-debt ratio was approximately 16% as of June 30, 2021, compared to about 17% in the previous year[27]. Governance and Compliance - The company has a strong governance structure with independent non-executive directors overseeing audit and remuneration committees[52]. - The independent directors bring a wealth of experience from various sectors, enhancing the company's strategic decision-making capabilities[54]. - The company is committed to maintaining compliance with regulatory standards and improving its corporate governance practices[60]. - The company has complied with listing rules regarding the appointment of independent non-executive directors, ensuring that all independent directors meet the independence criteria as per rules 3.10(1), 3.10(2), and 3.10A[80]. - The audit committee held two meetings this year to review the annual financial performance and compliance procedures, as well as internal controls and risk management systems[89]. - The remuneration committee conducted one meeting to review the company's remuneration policies and the compensation of executive directors and senior management[91]. - The nomination committee held one meeting to assess the composition and independence of the board, as well as the qualifications of retiring directors for re-election[95]. - The company has established a board diversity policy to ensure a mix of skills, professional experience, and backgrounds among board members[85]. - The audit committee is responsible for reviewing the company's corporate governance policies and practices, ensuring compliance with legal regulations and standards[96]. Risks and Challenges - The company will continue to monitor the impact of the COVID-19 pandemic on its financial condition and operating performance[17]. - The board anticipates ongoing uncertainty and challenges in the global economy and retail environment[17]. - The future outlook remains uncertain due to the ongoing COVID-19 pandemic and geopolitical risks, impacting global economic recovery[37]. - The group faces risks related to the ongoing COVID-19 pandemic, which could impact supply chains and consumer demand[123]. Shareholder Information - The company has a total of 714,163,680 shares issued, with Zhang Sanhuo holding 53.83% through a controlled company[152]. - As of June 30, 2021, Zhang Sanhuo holds 16,860,000 shares, representing approximately 1.27% of the company's issued share capital[154]. - Chen Zhuohao holds 19,260,000 shares, which is about 1.45% of the company's issued share capital[154]. - The company has a stock option plan that allows for the issuance of up to 132,670,173 shares, equivalent to about 10% of the issued shares as of the annual general meeting date[160]. - The exercise price for stock options granted under the plan is set at HKD 0.46 per share[157]. - The stock option plan was adopted on November 22, 2013, and is set to expire on November 21, 2023[156]. - The company plans to have one-third of its directors retire at each annual general meeting to enhance corporate governance[151]. - The company has not entered into any service contracts with directors that would prevent termination within one year, excluding statutory compensation[148]. - The company’s stock options can be exercised at any time within a period not exceeding 10 years from the grant date[156]. - The company aims to provide rewards or incentives to directors and qualified employees through the stock option plan[156]. Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of June 30, 2021[186]. - The company is responsible for preparing true and fair consolidated financial statements according to Hong Kong Financial Reporting Standards and the Companies Ordinance[197]. - The board must assess the company's ability to continue as a going concern and disclose relevant matters unless liquidation or cessation of operations is intended[197]. - The auditor's goal is to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[198]. - Reasonable assurance is a high level of assurance but does not guarantee that all material misstatements will be detected[198]. - Material misstatements can arise from fraud or error and may influence economic decisions made by users of the financial statements[198].

Revenue Performance - The company's revenue for the period decreased by approximately 89% to about $8,652,000, down from approximately $77,389,000 in the same period last year[6]. - Revenue from the brand products segment dropped to about $2,000, a decrease of approximately 100% from about $42,408,000 in the previous year[16]. - Revenue from other brand products was approximately $4,294,000, down about 84% from approximately $26,313,000 in the same period last year[17]. - Revenue from computer software and system development increased by approximately 114% to about $3,782,000, compared to about $1,770,000 in the previous year[20]. - The lending services segment's revenue increased by about 4% to approximately $574,000, with a profit of about $1,404,000, up from approximately $386,000 in the previous year[18]. - Revenue for the six months ended December 31, 2020, was $8,652,000, a decrease of 88.8% compared to $77,389,000 for the same period in 2019[52]. - The group’s lending services segment generated revenue of $574,000, showing a slight increase compared to $553,000 in the previous period, indicating potential growth in this area[70]. Profitability and Loss - The gross profit for the period was approximately $2,473,000, a significant improvement from a gross loss of about $5,275,000 in the same period last year[12]. - The loss attributable to the company's owners was approximately $1,340,000, a reduction of about 89% from approximately $12,221,000 in the same period last year[13]. - The basic loss per share was approximately $0.1, compared to about $0.92 in the previous year[14]. - The net loss for the period was $1,212,000, a substantial reduction from the net loss of $14,408,000 in the previous year, reflecting a 91.6% improvement[54]. - The group incurred a loss before tax of $1,173,000 for the six months ended December 31, 2020, compared to a loss of $14,215,000 for the same period in 2019, indicating a reduction in losses[73]. Expenses and Cost Management - Operating expenses decreased by approximately 40% to about $4,786,000, down from about $7,947,000 in the previous year[12]. - Employee costs, including directors' remuneration, were approximately $3,968,000 for the period, down from approximately $4,452,000 in the same period last year[29]. - The total unallocated corporate expenses for the current period were $1,186,000, down from $1,773,000 in the previous period, reflecting improved cost management[70]. - The group’s tax expenses for the current period were $172,000, a decrease from $314,000 in the previous period, indicating a reduction in tax liabilities[74]. Financial Position - Cash and bank balances increased from approximately $4,252,000 on June 30, 2020, to approximately $6,412,000 on December 31, 2020[22]. - Total current assets rose to approximately $25,489,000 as of December 31, 2020, compared to approximately $22,053,000 on June 30, 2020[22]. - Current liabilities increased from approximately $5,510,000 on June 30, 2020, to approximately $8,506,000 on December 31, 2020[22]. - The current ratio decreased from 4 on June 30, 2020, to 3 on December 31, 2020[22]. - The debt-to-equity ratio based on total liabilities to total assets was approximately 24% as of December 31, 2020, up from 17% on June 30, 2020[23]. - The company’s total equity was $34,508,000 as of December 31, 2020, down from $35,235,000 as of June 30, 2020[57]. - The company’s inventory was reported as zero as of December 31, 2020, compared to $335,000 as of June 30, 2020, indicating a complete depletion of inventory[56]. Shareholder Information - Major shareholder Mingzhi Global holds 714,163,680 shares, representing 53.83% of the issued share capital[36]. - The company has a stock option plan allowing for the issuance of options for up to 132,670,173 shares, approximately 10% of the issued shares as of the annual general meeting date[39]. - The company’s major shareholders include Hammer Capital Private Investments Limited, which holds 714,163,680 shares[36]. - Simply Perfect Group holds a 15% stake in PINE Technology (BVI) Limited, a subsidiary of the company[38]. Corporate Governance - 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[45]. - The company’s chairman and CEO roles are held by the same individual, which deviates from corporate governance guidelines[46]. - The company has appointed new independent non-executive directors in November and August 2020[47]. - The company’s audit committee consists of three independent non-executive directors, overseeing financial reporting and risk management[50]. Stock Options - As of December 31, 2020, there were 6,000,000 stock options granted to the Chairman and CEO, with an exercise price of HKD 0.83[40]. - The stock options granted in 2018 have an exercise price of HKD 0.46, with 10,860,000 options available[40]. - The company has a total of 72,640,000 stock options granted, with no options exercised, canceled, or lapsed in the six months ending December 31, 2020[41]. - The stock option plan is set to expire on November 21, 2023, unless cancelled or amended[38]. - There were no new stock options granted or exercised during the six months ending December 31, 2020[41]. Other Financial Metrics - The company recognized a foreign exchange gain of $485,000 during the period, contrasting with a loss of $139,000 in the previous year[54]. - The group reported a financing cash inflow of $4,502,000 for the six months ended December 31, 2020, compared to $2,278,000 in the same period of 2019, indicating increased financing activities[60]. - The company reported interest income of $1,000 for the current period, a slight decrease from $2,000 in the previous period[70]. - Trade receivables net amount was $1,931,000 as of December 31, 2020, down from $5,696,000 as of June 30, 2020[81]. - Fixed-rate loans receivable amounted to $10,489,000 as of December 31, 2020, compared to $9,888,000 as of June 30, 2020[83]. - Trade payables totaled $951,000 as of December 31, 2020, compared to $748,000 as of June 30, 2020[84].

Financial Performance - The company's revenue for the fiscal year ended June 30, 2020, was approximately $109.39 million, a decrease of about 35% from $167.07 million in the previous year[21]. - The gross loss for the year was approximately $1.26 million, a reduction of about 92% compared to the previous year's gross loss of $16.44 million[21]. - The annual loss attributable to the company's owners was approximately $17.32 million, down from $38.73 million in the previous year, representing a decrease of about 55%[23]. - Basic loss per share was $1.31, an improvement from $2.95 in the previous year, reflecting a reduction of about 56%[20]. - Operating expenses decreased by approximately $3.47 million or about 19% to approximately $14.95 million, primarily due to stricter cost control measures[21]. - The group reported revenue of $109,386,000 for the year ended June 30, 2020, a decrease of 34.5% compared to $167,070,000 in 2019[177]. - The cost of sales was $110,650,000, resulting in a gross loss of $1,264,000, compared to a gross loss of $16,444,000 in the previous year[177]. - Operating loss for the year was $18,793,000, significantly improved from an operating loss of $43,269,000 in 2019[177]. - The net loss for the year was $19,253,000, compared to a net loss of $43,499,000 in 2019, indicating a reduction in losses[177]. - The company reported a total comprehensive loss of $38,994 thousand for the year ended June 30, 2020, compared to a loss of $17,608 thousand in the previous year, indicating a significant increase in losses[185]. Assets and Liabilities - The company's current assets totaled approximately $22.05 million, down from $69.79 million in the previous year[24]. - Total assets decreased to $59,232,000 from $69,787,000 in the previous year, reflecting a decline of approximately 15.2%[179]. - The group's cash and cash equivalents were $4,252,000, down from $6,845,000 in 2019, representing a decrease of 37.8%[179]. - Non-current assets totaled $20,636,000, down from $23,118,000, a decline of 10.8%[179]. - The group’s equity attributable to owners decreased to $28,832,000 from $46,000,000, a drop of 37.2%[183]. - The company's distributable reserves as of June 30, 2020, included contributed surplus of $9,036,000 and retained earnings of $(51,588,000), totaling $(42,552,000)[123]. - The company's total liabilities increased, with bank borrowings repaid amounting to $6,134 thousand in 2020, compared to $7,036 thousand in 2019, indicating ongoing debt management efforts[190]. Cash Flow and Financing - The cash flow from operating activities for the year ended June 30, 2020, was $3,702 thousand, down from $6,030 thousand in the previous year, reflecting a decline in operational efficiency[188]. - The company experienced a net cash outflow from financing activities of $6,789 thousand in 2020, compared to $7,545 thousand in 2019, showing a slight improvement in cash management[190]. - The group's cash and bank balance decreased from approximately $6,845,000 on June 30, 2019, to about $4,252,000 on June 30, 2020[25]. Corporate Governance - The company has maintained high standards of corporate governance throughout the year, adhering to the principles outlined in the corporate governance code[62]. - All directors confirmed compliance with the standard code of conduct for securities trading throughout the year[63]. - The board consists of executive directors and independent non-executive directors, ensuring a diverse range of expertise and experience[66]. - The company has maintained compliance with listing rules by appointing at least three independent non-executive directors, representing at least one-third of the board[68]. - The company believes that the current structure of having the same individual serve as both Chairman and CEO is beneficial for effective strategy implementation[67]. - The board is responsible for significant matters including policy, strategy, budget, internal controls, and risk management[75]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, with a majority of independent non-executive directors[78]. - The Audit Committee's primary responsibilities include reviewing financial information, internal control procedures, and risk management systems[79]. - The company provides formal and comprehensive onboarding for new directors to ensure they understand their responsibilities under listing rules and regulations[76]. - Continuous professional development is facilitated for directors, including participation in external seminars and training courses[77]. Market Challenges and Strategies - The company continues to face multiple challenges, including trade tensions and the impact of COVID-19 on global markets[16]. - The company aims to expand its market network to counter competitive pressures and actively seek new business opportunities[16]. - The company reported a significant impact on its operations due to the ongoing COVID-19 pandemic, which has affected supply chains and consumer demand[111]. - The company is subject to risks from trade restrictions and tariffs between the US and China, which could increase product costs and affect consumer confidence[111]. Share Options and Equity - The company has a total of 132,670,173 share options available for issuance under the updated plan, representing approximately 10% of the issued share capital as of the report date[140]. - As of June 30, 2020, the company recognized approximately $440,000 in share-based payment expenses, a decrease from $1,905,000 as of June 30, 2019[145]. - The exercise price for certain share options is set at HKD 0.46 per share, with a total of 10,860,000 options granted to the chairman and CEO, Mr. Zhang, and 13,260,000 options granted to executive director, Mr. Chen[142]. - The share options plan was adopted on November 22, 2013, and was amended on November 15, 2018, to comply with listing rules[138]. - The company has not granted, exercised, canceled, or allowed any share options to lapse during the year, aside from those disclosed[145]. Auditor and Compliance - The independent auditor, Zhonghui Anda CPA Limited, was appointed on June 21, 2019, and will be proposed for reappointment at the upcoming annual general meeting[158]. - The audit committee reviewed the accounting principles and practices adopted by the group and discussed audit, internal control, and financial reporting matters[157]. - The company has established an insider information policy to ensure timely and equal disclosure of insider information to the public[92]. - The company ensures that all resolutions presented at the shareholders' meeting are voted on according to listing rules, with results published on the company's and the stock exchange's websites[94]. - The company secretary has complied with the professional training requirements as per the listing rules this year[88].

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]