Financial Performance - For the six months ended June 30, 2022, the investment management service revenue was approximately HKD 14,802,000, a decrease of about HKD 19,400,000 compared to the same period in 2021[7]. - The loss attributable to owners for the six months ended June 30, 2022, was approximately HKD 12,817,000, compared to a profit of HKD 4,313,000 for the same period in 2021[7]. - The total operating expenses for the six months ended June 30, 2022, were HKD 28,423,000, a decrease of 37.7% compared to HKD 45,597,000 in the previous year[19]. - The IM service revenue decreased by 56.7% from HKD 34,202,000 in 2021 to HKD 14,802,000 in 2022, primarily due to a reduction in management and performance fees[19]. - The fair value loss on financial assets measured at fair value through profit or loss was HKD (35,349,000), a significant decline compared to a gain of HKD 7,410,000 in the previous year, representing a change of -577.0%[19]. - The group recorded a loss attributable to shareholders of approximately HKD 60,459,000 for the six months ended June 30, 2022, compared to a profit of HKD 9,837,000 in the same period last year, mainly due to fair value losses on financial assets and losses from associates[26]. - The company reported a loss of HKD 12,817,000 for the six months ended June 30, 2022, compared to a profit of HKD 4,313,000 in the same period of 2021[109]. - The company’s basic and diluted loss per share for continuing operations was HKD 0.53, compared to earnings of HKD 0.09 per share in the previous year[109]. - The company reported a comprehensive loss of HKD 27,846,000 for the six months ended June 30, 2022[119]. - The group reported a net loss of HKD 59,525 thousand for the six months ended June 30, 2022, compared to a profit of HKD 8,835 thousand for the same period in 2021[172]. Revenue and Expenses - Other income decreased by 6.7% from HKD 2,015,000 in the previous year to approximately HKD 1,881,000 in the current period, mainly due to lower interest income from reduced cash deposits[24]. - Total expenses decreased by approximately 37.7% to about HKD 28,423,000 from HKD 45,597,000 in the same period last year, primarily due to reduced employee benefits expenses[25]. - The total cash and deposits as of June 30, 2022, amounted to HKD 118,621,000, a decrease of approximately HKD 40,788,000 compared to the previous period[43][44]. - The cash flow from operating activities for the six months ended June 30, 2022, was a net outflow of HKD 82,028,000, compared to a net inflow of HKD 40,690,000 for the same period in 2021[122]. - The net cash used in investing activities was HKD 38,058,000 for the first half of 2022, an increase from HKD 29,756,000 in the previous year[122]. - The cash flow from financing activities resulted in a net outflow of HKD 311,000, compared to a net outflow of HKD 3,223,000 in the same period of 2021[122]. Asset Management - The assets under management (AUM) as of June 30, 2022, were approximately USD 533 million, down 45.89% from USD 985 million as of December 31, 2021, representing a decrease of about USD 452 million[19]. - The company completed the sale of its CRM business for a total consideration of HKD 219,464,000, resulting in a gain of approximately HKD 50,157,000[10]. - The group achieved a gain from the sale of discontinued operations of HKD 50,157,000, compared to no gain in the previous year[30]. - The company completed the sale of its CRMS business for HKD 219,464,000 on March 22, 2022[51]. - The company reported a cash outflow of HKD 55,034,000 related to the sale of its CRM business, net of cash sold[122]. Corporate Governance - The company appointed Mr. Geng Tao as the new CEO effective September 13, 2022, ensuring compliance with corporate governance guidelines[100]. - The audit committee confirmed the effectiveness of the risk management and internal control systems as of June 30, 2022[102]. - The company has established an audit committee to oversee financial reporting and internal control processes, consisting of three independent non-executive directors[102]. - The company aims to maintain high standards of corporate governance to protect shareholder interests[100]. Market Conditions - The Hang Seng Index fell by 6.57% and the MSCI China Index (in USD) dropped by 12.27% during the first half of 2022, impacting the group’s managed fund performance[36]. - The group recognizes ongoing market instability and volatility, particularly due to the impacts of the Russia-Ukraine war and inflation, and will continue to balance risk and return[38]. - The group implemented strict cost control measures to improve profitability amid challenging market conditions[26]. - The group’s IM business remains optimistic about its medium to long-term prospects despite the challenging environment[37]. Employee and Compensation - The total employee compensation for continuing operations for the six months ended June 30, 2022, was approximately HKD 13,049,000, down from approximately HKD 25,009,000 in the same period last year[66]. - The company had a total of 34 employees as of June 30, 2022, a significant decrease from 1,979 employees as of December 31, 2021[65]. Shareholder Information - As of June 30, 2022, the company's total equity was approximately HKD 747,327,000, with a total issued share count of 11,495,494,321 shares[42]. - The company did not recommend any interim dividend for the six months ended June 30, 2022[69]. - The company has adopted a share option scheme effective from June 4, 2020, with a remaining term of approximately 7 years and 9 months[78]. - The maximum number of shares that can be issued upon the exercise of options under the scheme is capped at 1,134,647,232 shares, equivalent to about 10% of the issued shares at the time of adoption[79]. - The company has granted a total of 334,720,000 shares under the share incentive plan, which represents approximately 2.91% of the total issued shares as of June 30, 2022[94]. Financial Position - Total assets as of June 30, 2022, amounted to HKD 837,684,000, a decrease of 23.9% from HKD 1,099,916,000 as of December 31, 2021[116]. - Total liabilities decreased to HKD 90,357,000, down 72.1% from HKD 324,707,000[116]. - The company's equity attributable to owners increased to HKD 747,327,000 from HKD 775,209,000, a decrease of 3.6%[116]. - The company’s total reserves decreased to HKD 1,462,425,000 from HKD 1,467,001,000, a decline of 0.3%[119]. Investment and Fair Value - The fair value of financial assets as of June 30, 2022, totaled HKD 248,628,000, with HKD 109,706,000 classified as Level 1, HKD 128,266,000 as Level 2, and HKD 10,656,000 as Level 3[151]. - The company holds investments in funds with a fair value of HKD 301,327,000 as of December 31, 2021, with HKD 127,668,000 classified as Level 1 and HKD 162,116,000 as Level 2[153]. - The company’s financial assets include listed equity securities valued at HKD 70,763,000 from China and HKD 12,114,000 from the United States[151].

Business Focus and Strategy - The company sold its CRM services business for HKD 219.5 million to focus on investment management and strategic direct investment businesses[6] - The completion of the sale of the CRM business allows the management to focus more on the core investment management business and allocate resources flexibly for potential investment opportunities[12] - The investment management business includes securities advisory services, asset management, and trading of securities[12] - The strategic direct investment business involves proprietary investments in financial markets[13] - The company aims to leverage its capabilities in asset allocation, stock selection, and risk management to provide services to clients amidst market uncertainties[8] - The company aims to expand its investment management business by promoting its funds and advisory services to institutional clients and family offices, targeting an increase in AUM[35] - The company is focusing on developing its quantitative research and asset allocation model, Magic Abacus System, to provide comprehensive investment solutions[35] - The company anticipates that the current global volatility presents a unique opportunity for investment in China, with attractive valuations[34] Financial Performance - Assets under management (AUM) increased from approximately USD 355 million at the end of 2018 to about USD 985 million by the end of 2021, indicating steady growth in the investment management business[7] - The group's overall revenue for the year ended December 31, 2021, was approximately HKD 10,704,000, a decrease of about 93.6% from HKD 167,584,000 in 2020[23] - The group reported a loss attributable to equity holders of approximately HKD 67,729,000 for the year ended December 31, 2021, compared to a profit of approximately HKD 17,254,000 in 2020[26] - The fair value loss on financial assets for the year was approximately HKD 59,192,000, compared to a fair value gain of approximately HKD 22,993,000 in 2020[23] - The group recorded a net loss of approximately HKD 12,231,000 for the year ended December 31, 2021, compared to a net profit of approximately HKD 1,088,000 in 2020[29] - Other income increased significantly to approximately HKD 23,058,000 in 2021 from HKD 4,733,000 in 2020, mainly due to a one-time compensation of approximately HKD 18,962,000[24] Cost Management and Expenses - Total expenses for the CRMS business increased from approximately HKD 220,728,000 in 2020 to HKD 253,213,000 in 2021, primarily due to rising employee costs[27] - Employee benefits expenses rose by approximately HKD 54,976,000 to HKD 202,012,000 in 2021, accounting for about 79.8% of total expenses for the group[27] - Total operating expenses decreased from approximately HKD 166,812,000 in 2020 to HKD 85,938,000 in 2021, reflecting strict cost management[25] - The group aims to balance investment development with strict cost management to maintain profitability in its business segments[42] Market Conditions and Risks - The Chinese asset management market is currently over USD 20 trillion and is expected to continue strong growth over the next decade[7] - The CSI 300 index and Hang Seng index fell by 5.2% and 14.8% respectively in 2021, reflecting a challenging year for investors in China[8] - The group faces significant risks related to investment management, including pressure on assets under management (AUM) and management fees due to market conditions[75] - The company is subject to various risks including general economic conditions, which can impact investment performance and fund liquidity[78] - Future regulatory changes could lead to increased compliance costs and disclosure requirements, potentially impacting the fund's net asset value[85] Employee and Operational Insights - The group faced significant challenges in employee recruitment due to high service standards expected by CRM clients and a relatively high employee turnover rate[20] - The sustainability and growth of the group depend on the ability to recruit and retain competent employees, which is critical for achieving business and financial goals[91] - Employees are considered the most valuable asset, with the group offering competitive compensation and comprehensive performance evaluation programs[107] - The group employed 1,979 staff as of December 31, 2021, an increase from 1,874 in 2020[63] Regulatory and Compliance Matters - The company is committed to complying with new regulations and ensuring adherence to regulatory requirements in both Hong Kong and China[110] - The regulatory environment for alternative investment management is changing, which may adversely affect the value of fund investments and the ability to implement investment strategies[84] - The group has confirmed compliance with the disclosure requirements under the Listing Rules regarding related party transactions[138] Client and Revenue Dependency - A substantial portion of the group's revenue is derived from a few major clients, which poses a risk if these clients impose exclusivity clauses[87] - The group's revenue is heavily reliant on telecommunications service providers in Hong Kong, Macau, and China, making it vulnerable to market competition and pricing pressures[89] - The largest customer contributed approximately 34% of the group's service revenue, while the top five customers accounted for about 77% of the revenue from continuing operations[114] Environmental and Social Governance - The group plans to publish an Environmental, Social, and Governance (ESG) report in accordance with the Hong Kong Stock Exchange listing rules[65] - The group emphasizes environmental protection and has implemented measures to reduce environmental impact, including energy conservation and recycling initiatives[102]

Financial Performance - For the six months ended June 30, 2021, the revenue was approximately HKD 178,779,000, a decrease of about HKD 117,000 compared to the same period in 2020[6]. - The profit attributable to the company's owners for the six months ended June 30, 2021, was approximately HKD 4,313,000, a turnaround from a loss of HKD 12,274,000 in the same period of 2020[6]. - The operating profit for the same period was HKD 5,969,000, a significant improvement from an operating loss of HKD 15,635,000 in the previous year[103]. - The company reported total revenue of HKD 178,779,000, a slight decrease of 0.07% compared to HKD 178,896,000 in the same period of 2020[103]. - The company reported a loss of HKD 12,274,000 for the period, which reflects ongoing challenges in the market[115]. - The reported segment profit for the six months ended June 30, 2021, was HKD 11,048, down 51.2% from HKD 22,614 in the previous year[179]. Revenue Breakdown - Service revenue from the CRM business was approximately HKD 123,295,000, an increase of about 5% compared to HKD 117,301,000 in the previous year[10]. - The IM business generated revenue of approximately HKD 34,202,000, down from HKD 48,948,000 in the same period of 2020[10]. - Revenue from telecommunications industry clients increased by approximately 5% compared to the same period last year[19]. - Revenue from non-telecom industry clients increased by approximately 17% compared to the same period last year[20]. - Total revenue for the IM business was HKD 34,202 million, while the CRMS business generated HKD 123,295 million in revenue for the six months ended June 30, 2021[173]. Expenses and Costs - Total expenses decreased from approximately HKD 200,394,000 in the previous year to about HKD 176,663,000 in 2021[14]. - The total employee compensation paid by the group for the six months ended June 30, 2021, was approximately HKD 125,612,000, compared to HKD 109,822,000 for the same period last year[60]. - The company’s financial costs for the period were HKD 3,269,000, compared to HKD 3,006,000 in the previous year[103]. - The company incurred depreciation and amortization expenses totaling HKD 11,062 million during the reporting period[173]. Assets and Liabilities - The company reported total assets of HKD 1,269,460,000 as of June 30, 2021, an increase from HKD 1,258,594,000 at the end of 2020[111]. - The company’s total liabilities decreased to HKD 2,504,560,000 as of June 30, 2021, compared to HKD 2,472,060,000 at the end of the previous year[115]. - The company’s total equity attributable to the company's owners was HKD 838,736,000, up from HKD 829,782,000 at the end of 2020[111]. Cash Flow - The group recorded a cash flow increase of approximately HKD 7,360,000 for the six months ended June 30, 2021[46]. - The company reported a net cash flow from operating activities of HKD 40,690,000 for the six months ended June 30, 2021, compared to HKD 12,371,000 for the same period in 2020, representing an increase of 229%[117]. - The company incurred a net cash outflow from investing activities of HKD 29,756,000, a significant improvement from HKD 126,057,000 in the prior year[117]. Shareholder Information - The board proposed to issue up to 330,700,000 new shares under a share incentive plan, which was approved by shareholders on August 27, 2021[40]. - The company did not recommend any interim dividend for the six months ended June 30, 2021, consistent with the previous year[64]. - Zhao Linghuan holds 7,802,539,321 shares, representing approximately 68.76% of the company's equity[65]. Employee and Governance - The company emphasizes that employees are its most valuable asset and provides various employee benefits[65]. - The company has adopted a code of conduct that meets or exceeds the standards set out in the listing rules, ensuring compliance by all directors[93]. - The company has complied with all provisions of the corporate governance code as of June 30, 2021[98]. Investment and Strategy - The company plans to increase fundraising and marketing efforts while seeking additional investment opportunities in SDI to enhance shareholder returns[18]. - The group continues to pursue investment strategies that diversify its portfolio to mitigate market risks while generating returns[38]. - The group aims to enhance market penetration in China and explore opportunities in the non-telecom market, anticipating new market opportunities from the 14th Five-Year Plan[28]. Financial Risks and Management - The group faces various financial risks, including market risk, credit risk, liquidity risk, and price risk, which are consistent with those reported in the previous fiscal year[130]. - The group has not made any changes to its risk management policies since the end of the last fiscal year[131].

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].