Operational Performance - The company reported a stable operational performance despite external volatility, with high-margin product sales increasing and low-margin product sales decreasing, partially offsetting revenue declines due to weak demand from major clients[10]. - The group benefited from a decrease in cost expenditures due to falling copper prices, contributing to improved margins[10]. - Despite the challenges posed by the COVID-19 pandemic, the company experienced significant revenue growth in its technology solutions business and improved overall gross margins compared to the previous year[68]. Financial Performance - The group recorded total revenue of HKD 276.6 million for the fiscal year ending September 30, 2020, a decrease of 11.5% or HKD 35.7 million compared to HKD 312.3 million for the fiscal year ending September 30, 2019[27]. - The group's gross profit for the fiscal year 2020 was HKD 77.9 million, an increase of 34.7% or HKD 20.1 million from HKD 57.8 million in the fiscal year 2019[27]. - The after-tax net loss increased from HKD 6.1 million in the fiscal year 2019 to HKD 32.6 million in the fiscal year 2020[28]. - The loss per share for the fiscal year 2020 was HKD 10.6580 cents, compared to HKD 1.9889 cents in the fiscal year 2019[29]. - Revenue from energy-related and electric/electronic products for the fiscal year 2020 was HKD 242.3 million, a decrease of approximately HKD 67.5 million or 21.8% compared to fiscal year 2019, primarily due to trade tensions and the COVID-19 pandemic[32]. - The cost of sales for the energy-related and electric/electronic products business decreased by 24.9% to HKD 190.0 million in fiscal year 2020, aligning with the revenue decline[32]. - Gross profit for the energy-related and electric/electronic products business was HKD 52.3 million in fiscal year 2020, with a gross margin of 21.6%, up from 18.4% in fiscal year 2019[32]. - The technology solutions business generated revenue of HKD 34.2 million in fiscal year 2020, primarily from data center services (HKD 16.6 million) and cloud services (HKD 16.9 million)[34]. - The gross profit for the technology solutions business was HKD 25.6 million, resulting in a gross margin of 74.8%[35]. - Administrative expenses increased by 111.8% to HKD 98.7 million in fiscal year 2020, driven by higher employee costs and professional fees related to licensing and business expansion[40]. - The company reported a loss before tax of HKD 32.6 million for fiscal year 2020, compared to a profit before tax of HKD 8.7 million in fiscal year 2019[42]. - The net cash position as of September 30, 2020, was HKD 87.9 million, an increase from HKD 4.0 million as of September 30, 2019[49]. - Operating cash flow for fiscal year 2020 was HKD 29.8 million, an increase from HKD 17.6 million in fiscal year 2019, attributed to a reduction in working capital[51]. - Investment activities generated a net cash inflow of HKD 0.3 million in fiscal year 2020, a decrease from HKD 15.4 million in fiscal year 2019[52]. - In the fiscal year 2020, the net cash flow from financing activities was HKD 101.0 million, a decrease from HKD 266.5 million in fiscal year 2019[53]. - Capital expenditure for fiscal year 2020 was HKD 2.7 million, slightly up from HKD 2.6 million in fiscal year 2019[54]. - As of September 30, 2020, the debt-to-asset ratio was approximately 243.8%, down from 320.7% in 2019, with total borrowings of about HKD 315.8 million[57]. - Employee costs for fiscal year 2020 totaled approximately HKD 91.4 million, an increase from HKD 81.7 million in fiscal year 2019[67]. Strategic Focus - The company aims to focus resources on developing cloud software and database services for clients in innovative technology fields such as blockchain, fintech, and big data[10]. - The company plans to evolve into a comprehensive financial services platform, leveraging its recent licensing achievements to enhance its service offerings[11]. - The company is committed to integrating blockchain technology as a core innovation driver, aligning with government initiatives to promote technological advancements[14]. - The company is committed to developing new digital financial infrastructure based on blockchain technology[15]. - The company is focused on expanding its market presence and exploring new strategies for growth[80]. - The company aims to enhance its market position through strategic planning and effective communication with capital markets[82]. Regulatory and Compliance - The group’s subsidiary, Huobi Asset Management (Hong Kong) Limited, obtained licenses from the Hong Kong Securities and Futures Commission for Type 4 and Type 9 regulated activities on July 31, 2020, indicating a strategic move towards providing professional investment advisory and asset management services[11]. - The company has obtained regulatory approval for Huobi Asset Management to conduct regulated business in securities and asset management[25]. - The company has received approval for its Trust or Company Service Provider (TCSP) license, allowing it to operate under Hong Kong regulations[26]. - The overall market trend indicates a shift towards licensed operations in the virtual asset industry, driven by increased regulatory scrutiny and institutional interest in cryptocurrencies[13]. - The company emphasizes high corporate governance standards, which are crucial for improving group performance and protecting shareholder interests[94]. - The company has a compliance team led by Ms. Sun Yelin, who has extensive experience in global financial regulatory compliance[92]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules, except for the separation of roles between the Chairman and the CEO, which the board believes is beneficial for future development[95]. Management and Governance - The company has a strong management team with diverse backgrounds in finance, technology, and law, enhancing its operational capabilities[80]. - The management team includes professionals with over 40 years of experience in finance and accounting, enhancing the company's strategic capabilities[88]. - The company appointed Ms. Zhang Li as Chief Financial Officer on August 26, 2020, bringing extensive experience from her previous roles in auditing and mergers and acquisitions[82]. - Ms. Zhao Ruobing was appointed as Chief Operating Officer in October 2020, with a strong background in wealth management and asset management[83]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a diverse range of business experience and knowledge[105]. - The company has established a nomination and corporate governance committee to identify suitable candidates for board appointments[121]. - The board has established three committees: the Audit Committee, the Remuneration Committee, and the Nomination and Corporate Governance Committee to oversee specific areas of governance[103]. - The company has established a remuneration committee to provide recommendations on the remuneration policies for directors and senior management[129]. - The audit committee is responsible for monitoring the independence of the external auditor and the effectiveness of the audit process[135]. - The company has a clear framework for evaluating the independence of its non-executive directors[126]. - The board believes that sufficient safeguards are in place to ensure a balance of power, despite the dual role arrangement of the Chairman and CEO[106]. Shareholder Relations - The company emphasizes the importance of timely and non-selective disclosure to allow shareholders and investors to make informed investment decisions[145]. - The company has a dedicated website for effective communication with shareholders, providing access to the latest business operations, financial data, and corporate governance practices[147]. - The company encourages shareholders to submit suggestions regarding operations, strategies, or management at shareholder meetings[149]. - The company maintains regular dialogue with institutional investors and analysts to keep them informed about its developments[147]. - The company is committed to enhancing investor relations and communication with shareholders and potential investors[155]. Related Party Transactions - The independent non-executive directors confirmed that the ongoing related party transactions were conducted within their respective annual caps and were in compliance with the listing rules[181][182]. - The auditor issued an unqualified opinion regarding the group's ongoing related party transactions for the year ended September 30, 2020, confirming that they were approved by the board and adhered to the group's pricing policies[182][183]. - There were no other significant related party transactions that required disclosure under the listing rules for the year ended September 30, 2020[183]. Acquisitions and Investments - Win Techno Inc. was fully acquired on July 30, 2019, and its financial performance is now consolidated into the group's financial statements[169]. - Win Techno became a participant in the Amazon Web Services (AWS) Partner Network on December 24, 2019, allowing it to provide payment agency services to support AWS's end customers[174]. - A service agreement was amended on March 19, 2020, increasing the financial assistance cap from HKD 15 million to HKD 30 million for the period from April 14, 2020, to December 23, 2022[176]. - For the year ended September 30, 2020, the annual cap for data center services provided by Win Techno to Huobi Global (Seychelles) was set at JPY 230,500,000 (approximately HKD 16,135,000) compared to JPY 34,000,000 (approximately HKD 2,380,000) for the previous year[178][181]. - The financial assistance provided by Win Techno to Huobi Global (Seychelles) was capped at HKD 30,000,000 for the year ended September 30, 2020, while the previous year's cap was HKD 15,000,000[178][181].

Financial Performance - The group recorded total revenue of approximately HKD 117.5 million for the six months ended March 31, 2020, a decrease of about 29.5% or HKD 49.2 million compared to HKD 166.7 million for the same period in 2019[23]. - The group's gross profit for the 2020 period was HKD 21.7 million, down approximately 30.1% or HKD 9.4 million from HKD 31.1 million in the 2019 period[23]. - The net loss increased from HKD 1.6 million in 2019 to HKD 30.2 million in 2020, resulting in a loss per share of HKD 0.0989 compared to HKD 0.0054 in 2019[24][25]. - Revenue from the energy-related and electronic products business was HKD 109.8 million, a decrease of approximately 34.1% or HKD 56.9 million from the previous year[26]. - The group reported a loss before tax of approximately HKD 30.1 million in 2020, compared to a profit of about HKD 7.8 million in 2019, attributed to decreased revenue and increased overall expenses and financing costs[34]. - The group reported a loss before tax of HKD 30,059,000 for the six months ended March 31, 2020[150]. - The company reported a loss attributable to owners of the company of HKD 30,209,000 for the six months ended March 31, 2020, compared to a loss of HKD 1,641,000 for the same period in 2019, indicating a significant increase in losses[181]. Operational Challenges - The company reported a significant decline in manufacturing sales in March due to reduced orders from major clients, impacting production capacity in Q1[8]. - External uncertainties have increased pressure on the company's manufacturing business, with global trade expected to shrink by 13% to 32% this year according to the World Trade Organization[7]. - The International Monetary Fund predicts a 3% contraction in global economic output this year, marking the most severe recession since the Great Depression[7]. - The company experienced a temporary decline in operational levels due to COVID-19, impacting revenue compared to the same period in 2019[82]. - The company has implemented flexible work-from-home policies and procured materials for pandemic control to mitigate the impact of COVID-19 on its operations[82]. Revenue and Segment Analysis - Revenue from external customers in the contract manufacturing segment was HKD 109,810,000, while the solutions service segment generated HKD 7,648,000[150]. - The group’s revenue from the United States was HKD 47,432,000, a significant decrease from HKD 90,107,000 in the prior year, reflecting a decline of approximately 47.5%[157]. - The group’s operating segments include contract manufacturing and technology solutions services, with each segment requiring different resources[148]. - The group reported a segment profit of HKD 5,275,000 from contract manufacturing, while the solutions service segment incurred a loss of HKD 2,422,000[150]. - Revenue from data center services and cloud services amounted to HKD 7,325,000 and HKD 16,000 respectively, contributing to the overall revenue for the first time[164]. Cost and Expense Management - Administrative expenses increased by 118.9% from approximately HKD 21.3 million in 2019 to about HKD 46.6 million in 2020, driven by higher employee costs and professional service fees related to applying for virtual asset and financial licenses[32]. - The group’s administrative expenses for the period were HKD 27,476,000, contributing to the overall loss[150]. - The company reported a total of HKD 9,015,000 in financing costs for the six months ended March 31, 2020, up from HKD 3,045,000 in the same period of 2019, representing a 195% increase[170]. - The company recognized a loss of HKD 4,907,000 from foreign exchange, compared to a loss of HKD 776,000 in the previous year, indicating a significant increase in foreign exchange losses[171]. Cash Flow and Liquidity - Cash and cash equivalents as of March 31, 2020, were HKD 432.4 million, down from HKD 474.7 million as of September 30, 2019, resulting in a net cash position of HKD 58.9 million[39]. - Operating cash flow for 2020 was approximately HKD 0.9 million, a decrease from HKD 2.5 million in 2019, primarily due to an increase in working capital of HKD 7.8 million[41]. - The company maintained a strong cash reserve despite the external challenges and increased operational costs due to the COVID-19 pandemic[56]. - The company aims to ensure sufficient liquidity to meet financial obligations through regular monitoring of cash outflows[144]. Strategic Initiatives and Future Outlook - The acquisition of Win Techno Inc. in July 2019 has enabled the company to actively develop cloud software and database services for clients in blockchain, fintech, and big data sectors[8]. - The company anticipates further revenue growth from two supplementary agreements approved at the shareholders' special meeting in March[8]. - The company remains focused on the long-term development of blockchain technology as a new infrastructure for the next generation of industrial upgrades[12]. - The company remains cautiously optimistic about future business development, driven by potential growth in emerging businesses and global economic stimulus measures[56]. Financial Reporting and Standards - The company adopted new accounting standards effective from October 1, 2019, including HKFRS 16 on leases, which may impact financial reporting[86]. - The company’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and are unaudited[84]. - The group recognized a decrease in current liabilities by HKD 8,115,000 due to the adoption of HKFRS 16[91]. - The impact of HKFRS 16 on the consolidated financial position was significant, with adjustments made to both assets and liabilities[91]. Risk Management - The group faces various financial risks, including market risk, interest rate risk, fair value risk, credit risk, and liquidity risk[131]. - The company has implemented a monitoring procedure to ensure follow-up actions are taken to recover overdue debts[137]. - The company closely monitors overdue debts to mitigate credit risk[136]. - The company assesses the credit risk of financial assets based on observable data and past payment records[141].

Financial Performance - The company reported a gross profit increase of approximately 2.1% compared to the same period last year, despite external pressures from trade tensions and rising material costs[9]. - The pre-tax profit decreased by 20.0% year-on-year due to increased total expenses and financing costs[9]. - The total revenue for the fiscal year 2019 was approximately HKD 312.3 million, a decrease of about 9.6% or HKD 33.1 million compared to HKD 345.4 million in the fiscal year 2018[24]. - The gross profit for the fiscal year 2019 was HKD 57.8 million, an increase of approximately 2.1% or HKD 1.2 million from HKD 56.6 million in the fiscal year 2018[24]. - The net loss for the fiscal year 2019 was HKD 6.1 million, a decrease from a net profit of HKD 6.6 million in the fiscal year 2018[25]. - The earnings per share for the fiscal year 2019 was a loss of HKD 1.9889, compared to earnings of HKD 2.1947 per share in the fiscal year 2018[26]. - Revenue from the energy-related and electric/electronic products business for the fiscal year 2019 was HKD 309.9 million, a decrease of approximately 10.3% or HKD 35.5 million from the previous fiscal year[27]. - The sales cost for the fiscal year 2019 was HKD 252.9 million, a decrease of approximately 12.4% from HKD 288.8 million in the fiscal year 2018[29]. - The gross profit margin for the energy-related and electric/electronic products business improved to 18.4% in the fiscal year 2019 from 16.4% in the fiscal year 2018[29]. - Other income increased by approximately HKD 1.3 million to HKD 8.2 million in FY2019, mainly due to an increase in government grants by HKD 3.7 million[33]. - Administrative expenses rose by HKD 4.4 million or 10.4% to HKD 46.6 million in FY2019, attributed to increased employee costs from hiring more talent[36]. - Financing costs increased by HKD 3.0 million to HKD 5.5 million in FY2019, consistent with the level of borrowings[38]. - Profit before tax decreased by HKD 2.2 million to HKD 8.7 million in FY2019, due to increased overall expenses and financing costs[39]. - The net cash from operating activities was HKD 17.6 million in FY2019, down from HKD 20.9 million in FY2018, primarily due to an increase in working capital[46]. - Capital expenditures for FY2019 were HKD 2.6 million, down from HKD 5.2 million in FY2018[49]. - The net cash from financing activities was HKD 266.5 million in FY2019, compared to HKD 100.4 million in FY2018, influenced by loans from the direct holding company[48]. - The company reported a net loss of HKD 111,181,000 as of September 30, 2019, with total reserves amounting to HKD 111,522,000, including other reserves of HKD 222,703,000[165]. - The company did not recommend the payment of a final dividend for the fiscal year ending September 30, 2019[158]. Business Expansion and Acquisitions - The company completed the acquisition of Win Techno Inc. in July 2019, which primarily provides cloud services and data center services for blockchain enterprises[10]. - The company completed the acquisition of Win Techno Inc. for a total consideration of HKD 6.0 million on July 30, 2019[22]. - The newly acquired business from Win Techno Inc. generated approximately HKD 2.5 million in revenue within two months, mainly from data center services[31]. - The company aims to leverage the knowledge and experience of its major shareholder, Huobi Group, to explore diversification in blockchain and fintech sectors[8]. - The company plans to embrace the development trends in the blockchain industry and diversify its business while maintaining steady progress in manufacturing[19]. - The company is actively expanding into new markets and enhancing relationships with existing customers to mitigate external uncertainties[9]. - The company aims to expand into new markets and high-margin products while exploring diversification in blockchain and fintech sectors[64]. Corporate Governance and Management - The company has a strong management team with diverse backgrounds in technology, finance, and corporate governance, enhancing its strategic capabilities[70]. - The management team includes professionals with advanced degrees from prestigious universities, contributing to the company's expertise in automation and control science[72]. - The company has established a robust governance structure with independent non-executive directors overseeing key committees, ensuring compliance and strategic oversight[73]. - The company is committed to continuous improvement in corporate governance and operational efficiency to drive long-term growth[73]. - The leadership's extensive experience in various industries positions the company well for future opportunities in the digital economy[76]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance with all relevant guidelines[90]. - The board believes that having Mr. Li Lin serve as both chairman and CEO is necessary for the company's future development, given his over 10 years of experience in corporate management[90]. - The company has established a compliance department led by Ms. Sun Yelin, who has extensive experience in global financial regulatory compliance[87]. - The company emphasizes the importance of maintaining high corporate governance standards to enhance group performance and protect shareholder interests[89]. - The company has a strong focus on risk management and internal controls, with Mr. Wu Shupeng serving as the Chief Security Officer[86]. - The board regularly reviews corporate governance practices to meet stakeholder expectations and comply with regulatory requirements[89]. - The company has a dual role arrangement for the chairman and CEO to ensure effective management and business development[90]. - The board of directors is responsible for the overall leadership direction and strategic decisions of the group, with three committees established for oversight: Audit Committee, Remuneration Committee, and Nomination and Corporate Governance Committee[97]. - The company has adopted a board diversity policy to ensure sustainable and balanced development, considering factors such as gender, age, cultural background, and professional experience[104]. - The company has implemented a continuous professional development plan for all directors to enhance their understanding of corporate governance and compliance[96]. - The board has assessed the independence of all independent non-executive directors, confirming their compliance with the listing rules[99]. - The company has purchased appropriate liability insurance for all directors and senior officers[102]. - The board is committed to reviewing and enhancing corporate governance practices to ensure compliance with the corporate governance code[95]. - The company has established a clear division of responsibilities between the Chairman and the CEO to maintain a balance of power[100]. - The board of directors ensures effective operation and timely discussion of all major matters[105]. - The company secretary is responsible for maintaining meeting records and ensuring compliance with applicable rules and regulations[106]. - All directors have the right to seek independent professional advice at the company's expense when necessary[115]. - Directors are entitled to receive complete and reliable information to make informed decisions[115]. - The board can approve urgent matters through written resolutions if a meeting cannot be convened[106]. - The company has held a total of 5 board meetings in the fiscal year ending September 30, 2019[111]. - Independent non-executive directors attended all meetings, with attendance rates of 100% for some members[111]. - The nomination and corporate governance committee determines the criteria for selecting new board members[116]. - Directors must rotate at least once every three years to ensure fresh perspectives[116]. - The board has complied with the listing rules regarding the appointment of at least three independent non-executive directors, constituting at least one-third of the board[118]. - The Nomination and Corporate Governance Committee was established on September 25, 2017, to replace the previous committee formed on October 27, 2016[123]. - The Remuneration Committee consists of three members, all of whom are independent non-executive directors, ensuring compliance with listing rules[127]. - The company has adopted a board diversity policy, with progress reported in the annual report[125]. - The Remuneration Committee reviews and approves compensation for executive directors and senior management, considering market practices and individual performance[128]. - The company received annual confirmations from independent non-executive directors regarding their independence, affirming compliance with listing rules[121]. - The board's structure, size, and composition are reviewed by the Nomination and Corporate Governance Committee to align with corporate strategy[124]. - The company has established a formal and transparent process for determining remuneration policies for all directors and senior management[128]. - The board is responsible for ensuring compliance with corporate governance codes and listing rules, with disclosures made in the corporate governance report[124]. - The company has a clear framework for evaluating the independence of its independent non-executive directors[124]. - The audit committee was established on October 27, 2016, in accordance with Listing Rule 3.21 and Corporate Governance Code C.3[133]. - The audit committee consists of three independent non-executive directors as of September 30, 2019[134]. - The company ensures that all significant information is disclosed to the public in a clear and balanced manner, adhering to the Securities and Futures Ordinance and Listing Rules[143]. Shareholder Relations and Communication - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of its business and strategies[145]. - The company encourages shareholders to submit written proposals for business transactions to convene special general meetings[146]. - The company’s annual general meeting is scheduled to be held around March 20, 2020[145]. - The company has established a website for public access to its latest business operations, financial data, and corporate governance information[145]. - The company’s financial summary for the past five fiscal years is included in the annual report, providing insights into its financial performance[159]. Environmental and Operational Practices - The company is committed to complying with applicable environmental laws and regulations in its operating locations, continuously reviewing its environmental practices[161]. - The company operates primarily in contract manufacturing for energy-related and electronic products, providing technical solutions[155]. - The company maintains good relationships with suppliers and customers, focusing on providing satisfactory customer service[161]. Related Party Transactions - Li Lin indirectly holds approximately 65.24% of the issued shares of the group, making him the controlling shareholder[166]. - The ongoing related transactions were confirmed to be conducted within their respective annual caps and were deemed fair and reasonable by independent non-executive directors[171]. - The auditor issued an unqualified opinion regarding the group's ongoing related transactions for the year ending September 30, 2019[172]. - No other significant related party transactions were disclosed for the year ending September 30, 2019, apart from those mentioned[173]. Employee and Remuneration Policies - The company's remuneration policy is determined by the remuneration committee based on employee performance, qualifications, and capabilities[182]. - The group has a retirement benefits plan detailed in the financial statements as of September 30, 2019[183]. - The total number of shares available for issuance under the share option plan is 30,000,000, representing approximately 10% of the company's issued share capital[190]. - The share options granted to eligible participants must not exceed 1% of the company's issued shares in any 12-month period[190]. - The exercise price for shares under the share option plan must be at least the higher of the closing price on the date of grant or the average closing price over the preceding five trading days[194]. - No donations were made by the group for the year ending September 30, 2019[200].

Revenue and Profitability - The company's revenue for the six months ended March 31, 2019, was HKD 166.7 million, representing a 3.5% increase from HKD 161.0 million for the same period in 2018[12]. - Revenue from the largest customer increased by 20.1%, contributing significantly to the overall revenue growth[10]. - Gross profit increased by approximately 38.7% compared to the same period last year, rising from HKD 22.4 million to HKD 31.1 million[14]. - The adjusted net profit for the six months ended March 31, 2019, was HKD 5.3 million, compared to HKD 4.9 million after accounting for relocation costs in the previous year[10]. - Profit before tax increased from HKD 1.3 million to HKD 7.8 million, a rise of HKD 6.5 million, attributed to increased sales and gross margins[22]. - The company reported a loss of HKD 1.6 million for the six months ended March 31, 2019, compared to a profit of HKD 0.986 million in 2018[52]. - Total comprehensive income attributable to owners of the company was a loss of HKD 509,000 for the period, down from HKD 4,838,000 in the previous year[55]. Cost Management - The cost of sales decreased from HKD 138.6 million to HKD 135.6 million, resulting in a sales cost percentage of 81.3%, down from 86.1% in the prior year[13]. - The gross margin improved to 18.7% from 13.9% in the previous year, reflecting enhanced production capabilities after relocating facilities to Shenzhen[14]. - Selling and distribution expenses decreased by HKD 0.3 million or 8.4%, from HKD 3.8 million to HKD 3.5 million[18]. - Administrative expenses rose from HKD 20.4 million to HKD 21.3 million, an increase of HKD 0.9 million or 4.6%[19]. - Financing costs increased from HKD 1.0 million to HKD 3.0 million, reflecting the rise in the group's borrowing levels[21]. Cash Flow and Liquidity - Cash and cash equivalents decreased from HKD 205.995 million to HKD 147.097 million[28]. - Operating cash flow used was HKD 2.5 million, down from HKD 13.2 million in the previous period, due to an increase in working capital of HKD 10.6 million[31]. - Cash flow from operating activities showed a net outflow of HKD 2,507,000, improving from a net outflow of HKD 13,234,000 in the same period last year[68]. - The net cash used in investing activities was HKD 999,000, a reduction from HKD 3,326,000 in the previous year, showing improved cash management[66]. - The company experienced a significant decrease in trade and other payables, with a reduction of HKD 13,397,000 compared to HKD 6,985,000 in the previous year[66]. Asset and Liability Management - The company's total assets decreased to HKD 253,357,000 from HKD 311,224,000 year-over-year, indicating a decline of approximately 18.5%[58]. - Current liabilities decreased to HKD 65,115,000 from HKD 125,539,000, reflecting a reduction of about 48%[58]. - Non-current liabilities increased to HKD 92,796,000 from HKD 90,706,000, showing a slight increase of approximately 2.3%[58]. - The group has a total of HKD 133,530,000 in non-derivative financial liabilities, with HKD 100,000,000 due beyond one year but not exceeding five years[150]. Production and Operational Efficiency - The relocation of production facilities to Shenzhen has improved production and development capabilities, contributing to lower sales costs[16]. - The company expects to further enhance production line efficiency following the relocation of its manufacturing facility to Shenzhen, China[44]. - The company is exploring diversification opportunities to mitigate risks and ensure long-term sustainable development amid global economic uncertainties[11]. Taxation and Compliance - The company incurred a one-time tax expense of approximately HKD 6.9 million related to the transfer of land use rights and certain buildings[10]. - The actual tax rate rose to 32.4% from 21.1%, primarily due to a one-time tax expense of approximately HKD 6.9 million related to land use rights transfer[24]. - The group reported a corporate income tax expense of HKD 8,535,000 for the period, compared to HKD 183,000 in 2018, maintaining a tax rate of 25%[179]. Financial Reporting Standards - The adoption of HKFRS 9 has led to changes in the group's accounting policies, particularly in the classification and measurement of financial instruments[78]. - The group has applied HKFRS 15, which establishes a five-step model for recognizing revenue from customer contracts, effective from October 1, 2018[100]. - The adoption of Hong Kong Financial Reporting Standard No. 15 had no significant impact on the group's interim financial statements for the period ending March 31, 2019[111]. Future Outlook and Strategic Initiatives - The company is exploring opportunities to expand into technology services, blockchain technology, and financial technology services to mitigate future risks[44]. - The management team is committed to implementing effective corporate governance and accelerating business development[8]. - The company has not provided specific guidance for future performance or new product developments in the current report[55].

Financial Performance - For the fiscal year ending September 30, 2018, the group's revenue increased by HKD 39.0 million or 12.7%, primarily due to a 42.0% revenue increase from the largest customer and improved trading conditions in various regional markets[13] - The group's revenue increased by 12.7% from HKD 306.4 million to HKD 345.4 million, primarily due to a 42.0% increase in sales to its largest customer[19] - Net profit for the year rose by 26.9% to HKD 6.6 million, up from HKD 5.2 million in the previous year[32] - Gross profit decreased by HKD 11.0 million to HKD 56.6 million, with a gross margin decline to 16.4% from 22.1%[22] - Selling costs rose to HKD 288.8 million, accounting for 83.6% of revenue, compared to 77.9% the previous year[20] - Other income increased to HKD 6.9 million, up from HKD 2.6 million, driven by government grants and property sales[23] - Administrative expenses decreased by 2.2% to HKD 42.4 million, including relocation costs of HKD 3.8 million[25] - Adjusted profit before tax fell to HKD 18.1 million from HKD 23.9 million, primarily due to increased raw material and labor costs[30] - The effective tax rate decreased to 39.3% from 48.2%[31] - The company did not recommend a final dividend for the year[33] Challenges and Future Outlook - The company anticipates significant challenges in the fiscal year 2019, including labor shortages, rising raw material costs, and increased tariffs on sales to the United States[13] - The company is facing challenges due to rising raw material prices and potential higher tariffs in the US market[59] - The company plans to continue expanding its customer base to seize market opportunities amid global economic and political uncertainties, particularly the trade war between China and the United States[13] - The new management team will actively explore opportunities for business diversification to mitigate risks and achieve long-term sustainable development[13] Corporate Governance - The board is committed to maintaining high corporate governance standards, which are crucial for improving group performance and protecting shareholder interests[73] - The company adopted all provisions of the corporate governance code as per the Hong Kong Stock Exchange listing rules, ensuring compliance with regulatory requirements[74] - The board currently consists of five members, including two executive directors and three independent non-executive directors, reflecting a diverse governance structure[82] - The company has established three board committees, including the audit committee, remuneration committee, and nomination committee, to enhance corporate governance oversight[81] - Continuous professional development programs are provided to all directors to ensure they are aware of their responsibilities and the company's performance[80] - The company is focused on reviewing and enhancing its corporate governance practices to align with stakeholder expectations and regulatory standards[78] - The independent non-executive directors were appointed on October 11, 2018, contributing to the board's independence and oversight capabilities[83] - The company has implemented a compliance manual and code of conduct applicable to employees and directors to ensure adherence to governance standards[77] - The board has assessed the independence of all independent non-executive directors, confirming compliance with the listing rules for the year ending September 30, 2018[84] Shareholder Relations and Communication - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of the group's business and strategies[129] - The annual general meeting for shareholders is scheduled to be held on March 27, 2019[129] - The company encourages investors and stakeholders to provide suggestions and maintain communication[136] Employee and Operational Insights - The total employee cost for the year was HKD 82.4 million, an increase from HKD 76.2 million in 2017, with a total of 811 employees as of September 30, 2018[51] - The company plans to invest in high-quality and well-trained employees to enhance development capabilities and expand core competitiveness[59] - The company has restructured its sales team and allocated additional resources for market promotion to expand its customer base[59] Capital and Investment - The company successfully completed the relocation of its production facilities to a fully equipped and independently operated leased facility in Guangming New District[12] - The company's capital expenditure for the year was financed through internal resources and credit, amounting to HKD 5.2 million[42] - Investment cash outflow for the year was HKD 3.9 million, a decrease from HKD 25.6 million in 2017, with capital expenditures of HKD 5.2 million compared to HKD 22.0 million in the previous year[39] Share Transactions and Ownership - On August 21, 2018, Huobi Global Limited and Trinity Gate Limited completed the acquisition of the company's shares from Sina Investment Limited, marking a new phase of development for the company[12] - Huobi Global Limited acquired 215,576,000 shares for a total consideration of HKD 586,366,720, representing approximately 71.67% of the company's issued share capital[192] - Huobi Global Limited became the controlling shareholder, holding 70% of the issued shares, while Huobi Universal Inc. and Huobi Capital Inc. own 30%[193] - The mandatory unconditional cash offer was priced at HKD 2.72 per share, with the cancellation of unexercised options priced at HKD 1.22 per share[194] Risk Management - The board is responsible for establishing, maintaining, and continuously evaluating the adequacy and effectiveness of the group's risk management and internal control systems[123] - The board confirmed that there was no immediate need to establish an internal audit function, considering the group's existing risk management and internal control systems were sufficient[124] - The company has maintained compliance with applicable environmental laws and regulations in its business operations[149] Related Party Transactions - The company confirmed that there were no other significant related party transactions during the fiscal year ending September 30, 2018, apart from those disclosed in the financial statements[160] - The auditor issued an unqualified opinion regarding the group's continuing connected transactions, confirming compliance with relevant pricing policies and regulatory agreements[157]