Financial Performance - For the six months ended June 30, 2020, the total revenue from CRM and IM services was approximately HKD 166,249,000, an increase of about 17% compared to the same period in 2019[6]. - The loss attributable to equity holders for the six months ended June 30, 2020, was approximately HKD 12,274,000, a decrease of about 21% from the loss of HKD 15,621,000 in the same period of 2019[6]. - Total revenue for the six months ended June 30, 2020, was HKD 178,896 thousand, a 26% increase from HKD 141,892 thousand in 2019[106]. - Operating loss for the period was HKD 15,635 thousand, an improvement from a loss of HKD 20,260 thousand in the same period last year[106]. - Net loss attributable to owners of the company was HKD 12,274 thousand, compared to a loss of HKD 15,621 thousand in 2019, reflecting a 21% reduction in losses[106]. - Basic and diluted loss per share for the period was HKD 0.11, an improvement from HKD 0.14 in the previous year[106]. - The total comprehensive loss for the period was HKD 15,470 thousand, slightly improved from HKD 16,328 thousand in the previous year[109]. - The company incurred a loss of HKD 12,274,000 for the first half of 2020, compared to a loss of HKD 15,621,000 in the same period of 2019, indicating an improvement in financial performance[196]. Revenue Breakdown - Revenue from CRM services was approximately HKD 117,301,000, a decrease of about 8% compared to HKD 127,273,000 in 2019, while IM services generated revenue of approximately HKD 48,948,000, up from HKD 14,619,000 in 2019[11]. - The revenue contribution from CRMS, IM, and strategic direct investment was approximately 66%, 27%, and 7% of total revenue, respectively[11]. - Revenue from telecommunications services decreased by approximately 8% year-over-year due to intense competition and the economic impact of COVID-19[21]. - Revenue from non-telecommunications clients decreased by approximately 3% year-over-year, also impacted by COVID-19[22]. - The IM business generated revenue of HKD 48,986,000 for the six months ended June 30, 2020, compared to HKD 14,619,000 for the same period in 2019, reflecting a significant increase of approximately 234%[166]. - The CRM services revenue for the six months ended June 30, 2020, was HKD 117,337,000, down from HKD 127,273,000 in the same period of 2019, showing a decline of about 7%[166]. Expenses and Costs - Total expenses increased from approximately HKD 167,549,000 in the first half of 2019 to approximately HKD 200,394,000 in 2020, with non-recurring expenses of approximately HKD 20,745,000 and HKD 7,204,000 recorded during the period[15]. - Total employee compensation paid during the six months ended June 30, 2020, was approximately HKD 109.82 million, a decrease of 10.8% from HKD 123.13 million in the same period last year[79]. - Total employee benefits expenses decreased to HKD 109,822,000 in the first half of 2020, down from HKD 123,126,000 in the same period of 2019, representing a reduction of approximately 10.8%[192]. - The total other expenses for the first half of 2020 were HKD 12,458,000, down from HKD 16,664,000 in the same period of 2019, showing a decrease of approximately 25.5%[186]. - The total cost of property, plant, and equipment purchased in the first half of 2020 was approximately HKD 457,000, significantly lower than HKD 1,193,000 in the previous year[198]. Assets and Liabilities - Total assets as of June 30, 2020, amounted to HKD 1,175,332 thousand, compared to HKD 1,134,022 thousand at the end of 2019, indicating a growth of approximately 3.6%[113]. - Total liabilities increased to HKD 397,860 thousand from HKD 341,080 thousand, representing a 16.6% rise[113]. - The group maintained a current ratio and quick ratio of 1.88 as of June 30, 2020, down from 2.26 as of December 31, 2019[59]. - The group holds approximately HKD 216,689,000 in bank deposits and cash on hand as of June 30, 2020, down from HKD 423,816,000 as of December 31, 2019[56]. - Cash and cash equivalents decreased to HKD 141,643 thousand from HKD 366,410 thousand, a decline of 61.3%[113]. - The company reported cash and cash equivalents of HKD 366,410,000 as of June 30, 2020, down from HKD 484,375,000 as of December 31, 2019[170]. Investments and Strategic Focus - The group continues to seek investment opportunities to enhance overall financial resource returns, balancing risk and return amid market volatility[53]. - The company plans to continue seeking investment opportunities to enhance shareholder returns and maintain growth in its customer portfolio[20]. - The company has successfully obtained the RQFII license, allowing its investment funds to use overseas capital for direct investment in domestic financial instruments[49]. - The company aims to expand its asset management business in mainland China and develop new product offerings for local investors[49]. - The group has invested in seed capital for two investment funds during the six months ended June 30, 2020, acting as the investment manager[64]. - The company is focused on expanding its CRM services and strategic direct investments to support growth in the IM business[122]. Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code as of June 30, 2020[100]. - The Audit Committee has reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2020, and found it to comply with applicable accounting standards and listing rules[101]. - The company has maintained a high standard of corporate governance to protect shareholders' interests as of June 30, 2020[100]. - There were no interests held by directors or their associates in any competing businesses as of June 30, 2020[99]. - The company has established an Audit Committee to oversee risk management and internal control systems, which were deemed effective during the review period[101]. Employee and Operational Insights - The total number of employees was 1,925, an increase of 148 employees from December 31, 2019[76]. - The number of employees in the business function category increased from 1,660 on December 31, 2019, to 1,803 on June 30, 2020[77]. - The group provided various employee benefits, including housing allowances, social insurance, and medical insurance[79]. - The company is committed to improving operational efficiency by providing diverse training programs for its staff[26]. - The company has maintained a competitive compensation level based on qualifications, experience, performance, and market conditions[79]. Market and Business Development - Management continues to diversify the CRM customer base beyond the telecommunications sector, including clients such as Bank of China and KFC[10]. - The company is focused on expanding its customer base across various industries, including finance, broadcasting, and education[22]. - The company is actively developing new business plans in the telecommunications sector, including projects for mobile virtual network operators and two new projects for non-telecommunications clients[38]. - The company is exploring new opportunities in the non-telecommunications market, including partnerships with food chains and travel companies for CRM services[40][43]. - The company aims to optimize its services through the application of artificial intelligence in its smart response services, aligning with market trends[32].

Business Expansion and Client Acquisition - The company expanded its customer base by establishing several CRM agreements with major clients, including China Unicom and China Telecom, during 2019[10]. - The company believes it can secure more contracts from telecommunications and non-telecommunications clients outside Guangdong province in 2020, leveraging its strong reputation and customer portfolio[10]. - The company continues to diversify its CRM client base to non-telecommunications sectors, including banking and retail[15]. - By the end of 2019, revenue from non-telecommunications clients increased by approximately 13.7% compared to the previous year[33]. - The company is actively developing its CRM business with non-telecom clients, including partnerships with food chains, healthcare providers, and media companies[51][52]. - The company signed service agreements with several major clients, including China Unicom and China Telecom, for telemarketing services throughout 2019[40]. Financial Performance and Revenue - Overall revenue for the group increased by approximately 16.0% to about HKD 314,317,000 for the year ended December 31, 2019[25]. - The service revenue from CRMS business for the year ended December 31, 2019, was approximately HKD 239,412,000, a decrease of about 11.0% compared to HKD 268,975,000 in 2018[25]. - Revenue from telecommunications service providers decreased by approximately 12.2% for the year ended December 31, 2019, due to intense competition in the CRM and telecommunications industry[29]. - The group recorded a loss attributable to equity holders of approximately HKD 38,852,000 for the year ended December 31, 2019, compared to a profit of HKD 76,446,000 in 2018[28]. - Other income increased by approximately 69.6% to about HKD 10,745,000, primarily due to an increase in bank interest income of about HKD 6,730,000[26]. Investment Management and Fund Performance - The company launched several new fund products in 2019, achieving significant returns across all funds, including China long/short equity and global macro funds[11]. - The introduction of the new IM business generated revenue of approximately HKD 70,758,000 for the year ended December 31, 2019, compared to HKD 1,940,000 in 2018[25]. - The company plans to continue developing its IM business, focusing on becoming a provider of products, solutions, platforms, and infrastructure[60]. - The company aims to promote its funds to institutional clients and family offices to geographically expand its client base and increase managed assets[60]. - The company invested approximately HKD 78 million in the non-listed collective investment fund Prelude Opportunity Fund, LP, which is expected to yield higher potential returns compared to limited earnings from idle cash[64]. Strategic Initiatives and Technology Development - The company continues to focus on its internet CRM services, particularly the "Smart Online Response Application," which aims to optimize human resource structures and improve profit margins through cost structure changes and new revenue sources[44]. - The company has developed several AI-related systems, including the EliteUCVAI and EUC, and has obtained copyrights for over 20 software products to meet market development needs[44]. - The company plans to enhance its CRM business infrastructure and explore new opportunities in AI, big data processing, and virtualization technologies as the market becomes clearer[47]. - The company aims to leverage its AI voice technology intellectual property to enhance service value in its CRM business as AI applications mature[55]. Operational Challenges and Market Environment - The group faces increasing competition and rapid technological deployment challenges in its industry[92]. - The group’s revenue is heavily reliant on telecommunications service providers in Hong Kong, Macau, and China, with potential pricing pressure due to increased competition in the telecommunications industry[96]. - The group faces risks related to service errors that could lead to additional costs and damage to client relationships, with no liability insurance in place[97]. - The group’s operations are significantly influenced by the political, economic, and legal environment in China, which poses risks to its business performance[106]. Governance and Compliance - The company has adopted a corporate governance report that complies with all provisions of the corporate governance code as per the listing rules[194]. - The independent non-executive directors confirmed their independence in accordance with the listing rules[160]. - The board of directors is committed to ensuring compliance with corporate governance standards and maintaining a diverse board[158]. - The company has established clear written functions for the board and management to delegate daily operational responsibilities[197]. Employee and Compensation Matters - The group reported a total employee compensation of approximately HKD 254,732,000 for 2019, compared to HKD 238,119,000 in 2018[82]. - The group had 1,777 employees as of December 31, 2019, a decrease from 2,740 employees in the previous year[82]. - The company views employees as its most valuable asset and implements comprehensive performance evaluation plans to reward outstanding performance[125]. Future Outlook and Strategic Goals - The company expects the launch of the 13th Five-Year Plan to create new market opportunities and attract more clients to reduce operational costs and improve customer loyalty management[55]. - The company aims for sustainable growth in its client portfolio alongside new institutional clients[144]. - The main assumptions for budgeted asset management growth rates remain unchanged, projected between 6% and 15%[143].

Financial Performance - For the six months ended June 30, 2019, revenue was approximately HKD 141,892,000, an increase of about 5% compared to the same period in 2018[5]. - The loss attributable to owners for the six months ended June 30, 2019, was approximately HKD 15,621,000, an increase of about 22% compared to the same period in 2018, primarily due to increased amortization of intangible assets and the sale of PIMS and RF-SIM businesses in 2018[5]. - Revenue from CRM services for the six months ended June 30, 2019, was approximately HKD 127,273,000, a slight decrease of about 6% year-on-year[10]. - The new revenue stream from IM services for the six months ended June 30, 2019, was approximately HKD 14,619,000, contributing about 10% to total revenue[10]. - Revenue from telecommunications service providers decreased by approximately 4% year-on-year due to intense competition in the CRM and telecommunications industry[14]. - Total expenses for the six months ended June 30, 2019, were HKD 167,549,000, compared to HKD 144,811,000 in the previous year, reflecting an increase of about 15.7%[62]. - The operating loss for the six months ended June 30, 2019, was HKD 20,260,000, compared to a loss of HKD 6,081,000 in the same period of 2018[62]. - The net loss attributable to owners for the six months ended June 30, 2019, was HKD 15,621,000, compared to HKD 12,775,000 in the previous year[67]. - The basic and diluted loss per share for continuing operations was HKD 0.14 for the six months ended June 30, 2019, compared to HKD 0.07 in the same period of 2018[67]. - The company reported a total revenue of 134,769 thousand HKD for the six months ended June 30, 2019, compared to 197,501 thousand HKD for the same period in 2018, indicating a decrease of approximately 31.8%[164]. Cash Flow and Liquidity - As of June 30, 2019, the total cash and deposits amounted to approximately HKD 507,236,000, an increase of about HKD 46,884,000 compared to the previous period[55]. - The current ratio as of June 30, 2019, was 11.17, up from 9.72 as of December 31, 2018, indicating improved liquidity[55]. - Operating cash flow for the six months ended June 30, 2019, was a net outflow of HKD 7,263,000, compared to a net outflow of HKD 11,160,000 for the same period in 2018, representing a 34% improvement[83]. - Cash generated from investment activities was HKD 2,149,000, up from HKD 835,000 in the previous year, indicating a 157% increase[83]. - Cash flow from financing activities resulted in a net inflow of HKD 52,177,000, with a significant loan of HKD 55,000,000 from a former director[83]. - The total cash and cash equivalents increased by HKD 47,063,000, compared to a decrease of HKD 10,325,000 in the prior year[83]. - As of June 30, 2019, cash and cash equivalents stood at HKD 507,236,000, up from HKD 372,933,000 a year earlier, reflecting a 36% increase[83]. Business Strategy and Market Expansion - The company is actively expanding its non-telecommunications client base, engaging with potential clients across various industries including finance, broadcasting, and education[16]. - The company continues to seek opportunities for collaboration with telecommunications clients and is exploring new business avenues in the telecommunications sector[14]. - The group has established a solid customer base through both new and existing clients, demonstrating success in expanding into non-telecommunications industries[18]. - The group has established four CRM service centers with a capacity of over 4,500 seats, reinforcing its leadership position in China[20]. - The group continues to enhance its internet CRM services, focusing on the "Smart Online Response Application," which optimizes human resource structure and aims to improve profit margins[26]. - The group is exploring the application of artificial intelligence in its services, with a focus on developing AI-related CRM applications and seeking new business opportunities[27]. - The group has initiated discussions with various sectors, including food chains, healthcare, media, travel, and insurance, to expand its CRM services beyond telecommunications[31][32][33][34][37]. - The company is actively seeking business opportunities with government departments and large chain restaurant enterprises in Guangdong and other provinces[41]. Financial Position and Assets - As of June 30, 2019, the company's equity was approximately HKD 819,005,000, with a total of about 11,346,472,321 shares issued[51]. - Total assets as of June 30, 2019, amounted to HKD 999,655,000, up from HKD 963,698,000 at the end of 2018, reflecting a growth of about 3.7%[75]. - The company's total equity decreased to HKD 819,005,000 as of June 30, 2019, from HKD 835,333,000 at the end of 2018, representing a decline of approximately 2%[75]. - Non-current liabilities increased significantly to HKD 123,035,000 from HKD 66,336,000, marking an increase of about 85.5%[75]. - The company’s total liabilities increased to HKD 180,650,000 from HKD 128,365,000, representing an increase of approximately 40.7%[75]. - The company’s current liabilities totaled HKD 57,615,000, a decrease from HKD 62,029,000 in the previous year, reflecting a reduction of approximately 7%[75]. - The company’s accumulated losses reached HKD 2,467,845,000 as of June 30, 2019, compared to HKD 2,450,760,000 at the beginning of the year, indicating a rise in accumulated losses[78]. Accounting and Compliance - The group’s financial performance is under review by an independent auditor, ensuring compliance with international accounting standards[59]. - The company has adopted new accounting standards, including IFRS 16 on leases, which may impact its financial reporting[103]. - The company anticipates that newly adopted standards will not have a significant impact on its financial statements[106]. - The group has adopted IFRS 16 "Leases" since January 1, 2019, resulting in a recognition of lease liabilities amounting to HKD 11,709,000[113]. - The total right-of-use assets recognized as of June 30, 2019, amounted to HKD 10,200,000, compared to HKD 11,709,000 as of January 1, 2019[118]. - The adjustments made due to the adoption of IFRS 16 did not impact the calculation of earnings per share during the period[108]. - The group has not restated comparative figures for the year 2018 under the new accounting standard[113]. Customer Concentration and Revenue Sources - The company has three major customers whose transactions accounted for over 10% of total revenue, with Customer 1 generating 49,564 thousand HKD in 2019 compared to 52,678 thousand HKD in 2018[165]. - The total revenue from the CRMS business segment was 78,388 thousand HKD for the six months ended June 30, 2019[165]. - The company’s total revenue from contracts with customers was HKD 106,281,000 as of December 31, 2018, with a significant portion attributed to the top customers, highlighting the reliance on key accounts[192]. - As of June 30, 2019, 71% of total accounts receivable was concentrated among the top five customers, down from 84% as of December 31, 2018, indicating improved diversification[197].

Business Expansion and Opportunities - The group expanded its customer base by establishing several customer relationship management (CRM) agreements with China Unicom branches, enhancing its service and technology leadership[9]. - The company believes it will benefit from favorable government policies in China, including growth in 4G mobile communications and rapid development of 5G technology[9]. - The group is focused on exploring new business opportunities to broaden revenue sources and enhance shareholder value[10]. - The management anticipates obtaining more contracts from telecommunications and non-telecommunications clients outside Guangdong province in 2019[9]. - The company continues to diversify its CRM customer base beyond the telecommunications sector, now including clients from various industries such as finance, retail, and healthcare[22]. - The company is actively expanding its market presence in China, leveraging government policies and the growing demand for CRM services[22]. - The company is prepared to seize opportunities in the emerging smart CRM market, which is expected to grow significantly with the rise of the Chinese consumer market[22]. - The company continues to explore opportunities in the non-telecommunications market, anticipating new market opportunities from the initiation of the 13th Five-Year Plan[49]. - The company aims to enhance customer communication to provide high-quality products and services, thereby increasing market penetration and expanding different businesses[122]. Financial Performance - The total revenue for the year ended December 31, 2018, was approximately HKD 270,915,000, representing a growth of about 5% compared to HKD 258,371,000 in 2017[26]. - The revenue contribution from CRMS services was approximately HKD 268,975,000, accounting for about 99% of the total revenue, while IM business contributed approximately HKD 1,940,000[29]. - The gross profit for the year was approximately HKD 26,864,000, with a significant increase of about 66% compared to the previous year, resulting in a gross margin of approximately 10%[30]. - The gross profit from CRMS business was approximately HKD 25,532,000, reflecting an increase of about HKD 9,331,000 or 58% year-on-year[30]. - The profit attributable to equity holders for the year ended December 31, 2018, was approximately HKD 76,446,000, a significant increase from a loss of HKD 49,200,000 for the year ended December 31, 2017, resulting in a net profit margin of approximately 28%[32]. - Revenue from telecommunications service providers increased by approximately 5% compared to the previous year[35]. - The group’s revenue and operating profit decreased compared to the previous year, indicating ongoing challenges in the RF-SIM business despite efforts to promote new NB-IoT modules[51]. Acquisitions and Investments - In November 2018, the company acquired all issued shares of Golden Capital Management Limited and Golden Securities Limited, which became wholly-owned subsidiaries, allowing entry into the financial services sector[10]. - The group acquired Jinyong Capital and Jinyong Securities in November 2018, expanding its investment management capabilities[56]. - The company announced the sale of MZone Network Limited and Shenghua Telecommunications Limited for HKD 135,000,000 and the acquisition of Jinyong Capital Management Limited and Jinyong Securities Limited for HKD 270,000,000, completed on November 29, 2018[68]. Employee and Management Insights - Employee contributions are deemed crucial for the group's development, with gratitude expressed towards staff and stakeholders for their support[11]. - The company aims to enhance its service quality through diversified skills training for employees, improving customer satisfaction and sales success rates[37]. - The company recognizes employees as its most valuable asset and implements comprehensive performance evaluation plans to reward outstanding performance[123]. - The group relies heavily on the experience and expertise of its executive directors and senior management, which is critical for its success[92]. - The success of the group, particularly in the CRM business, depends significantly on retaining a large number of qualified employees[93]. Regulatory and Compliance Matters - The company emphasizes the importance of compliance with relevant laws and regulations to avoid operational disruptions[118]. - The group’s operations are subject to the laws and regulations of China, which may adversely affect its business due to changes in the political, economic, or legal environment[101]. - The group has implemented internal monitoring procedures to protect confidential data, including restricting access and prohibiting the use of data storage devices[97]. - The group cannot guarantee that it will not face complaints or claims related to violations of the Trade Descriptions Ordinance (TDO)[91]. Financial Risks and Management - The company faces various financial risks including foreign exchange risk, interest rate risk, credit risk, and liquidity risk, and currently has no hedging policy for foreign exchange risk[103]. - The largest customer contributed approximately 40% of the group's revenue, while the top five customers accounted for about 93% of total revenue as of December 31, 2018[130]. - The company has a distributable reserve of approximately HKD 1,709,869,000 as of December 31, 2018, compared to approximately HKD 1,481,785,000 in 2017[139]. - The board of directors did not recommend the distribution of a final dividend for the year ended December 31, 2018[132]. Market and Competitive Landscape - The company confirms that it has not lost a significant number of customers due to competition with PacificNet, and it operates independently of PacificNet's business[195]. - The company focuses on CRM outsourcing services, while PacificNet operates in telecommunications value-added services and IT outsourcing, indicating a lack of direct competition[196]. - Mr. Li Jiancheng holds a minority stake of 7.21% in PacificNet, which is not expected to significantly influence PacificNet's board or management decisions[196].