Revenue Performance - For the six months ended September 30, 2020, the group's revenue was approximately HKD 21.0 million, a decrease of 34.7% compared to HKD 32.2 million for the same period in 2019[14] - The group recorded revenue of approximately HKD 21.0 million for the reporting period, a decrease of 34.7% compared to HKD 32.1 million for the six months ended September 30, 2019[24] - For the six months ended September 30, 2020, the company reported total revenue of HKD 20,983,000, a decrease of 34.5% compared to HKD 32,120,000 for the same period in 2019[82] - The group reported a total revenue of HKD 20,983,000 for the six months ended September 30, 2020, a decrease of 12.0% compared to HKD 23,886,000 for the same period in 2019[104] Income Breakdown - Commission income from the securities brokerage business decreased by 4.7% to approximately HKD 10.3 million, accounting for 49.3% of total revenue[16] - Interest income from margin financing services increased by 13.3% to approximately HKD 9.3 million, representing 44.5% of total revenue[17] - Commission income from underwriting and placing services decreased by 90.0% to approximately HKD 1.3 million, accounting for 6.2% of total revenue[19] - The asset management service generated revenue of HKD 3,000, with a segment loss of HKD 57,000 during the reporting period[20] - Commission and brokerage income from the Hong Kong market was HKD 9,713,000, down 4.8% from HKD 10,206,000 in the previous year[104] Profitability - Net profit for the reporting period was approximately HKD 6.7 million, down 19.9% from approximately HKD 8.4 million for the six months ended September 30, 2019[26] - The company recorded a profit before tax of HKD 8,161,000, down 32.5% from HKD 12,144,000 in the same period last year[82] - The net profit for the period was HKD 6,713,000, representing a decrease of 20% compared to HKD 8,382,000 for the same period in 2019[82] - The brokerage services segment reported a profit of HKD 8,479,000, contributing significantly to the overall profitability of HKD 15,693,000[112] Expenses and Costs - Other operating expenses increased by 101.1% to approximately HKD 4.9 million, compared to HKD 2.5 million for the six months ended September 30, 2019[25] - Employee costs for the six months ended September 30, 2020, amounted to HKD 4,071,000, an increase of 34% compared to HKD 3,189,000 for the same period in 2019[7] - Financing costs for the six months ended September 30, 2020, totaled HKD 956,000, compared to HKD 677,000 for the same period in 2019, representing an increase of 41.3%[8] Financial Position - As of September 30, 2020, the group's cash and bank deposits amounted to approximately HKD 79.7 million, down from approximately HKD 149.5 million as of March 31, 2020[27] - The group's current assets net value increased to approximately HKD 317.5 million as of September 30, 2020, compared to approximately HKD 310.5 million as of March 31, 2020[27] - The debt-to-equity ratio as of September 30, 2020, was approximately 0.17, up from 0.03 as of March 31, 2020[28] - As of September 30, 2020, total assets amounted to HKD 640,000,000, compared to HKD 635,000,000 as of March 31, 2020[84] - The company's cash and cash equivalents increased to HKD 79,693,000 from HKD 149,531,000, indicating a decrease in liquidity[84] Operational Adjustments - The group implemented work-from-home policies to minimize COVID-19 transmission, adapting to new operational arrangements[14] - The group has maintained a cautious approach in its underwriting and placing business due to market volatility since the outbreak of COVID-19[19] - The overall performance of the financial services industry in Hong Kong remained relatively stable during the first half of 2020 despite the pandemic[13] Shareholder Information - As of September 30, 2020, Mr. Li Qing Song holds a 75% equity interest in the company, represented by 750,000,000 shares[59] - Major shareholders, including Wan Shun Holdings, hold a 75% equity interest in the company, with similar holdings reported by other related parties[64] - The company has confirmed that all major shareholders have adhered to the non-competition agreement established on January 22, 2020, during the reporting period[57] Compliance and Governance - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors during the reporting period[48] - The Audit Committee was established on January 22, 2020, consisting of three members to ensure regulatory compliance and review the unaudited interim financial statements for the six months ending September 30, 2020[49] - The unaudited consolidated financial statements have been reviewed by the Audit Committee and the company's auditor, Deloitte[50] Impairment and Provisions - The group recorded a provision for expected credit losses of approximately HKD 1.6 million due to uncertain economic outlook and market volatility[17] - Impairment losses recognized for accounts receivable from securities trading amounted to HKD 1,572,000 for the six months ended September 30, 2020, with no impairment losses recorded in the same period of 2019[9] - The company recognized an impairment loss provision of HKD 1,572,000 for accounts receivable from individual clients as of September 30, 2020, compared to zero as of March 31, 2020[149] Cash Flow and Liquidity - The operating cash flow before changes in working capital for the six months ended September 30, 2020, was HKD 11,225,000, compared to HKD 13,347,000 for the same period in 2019, indicating a decrease of about 15.9%[88] - The net cash used in operating activities for the six months ended September 30, 2020, was HKD 112,971,000, a significant increase from HKD 11,492,000 in the previous year[88] - The cash and cash equivalents decreased by HKD 69,838,000 during the period, compared to a decrease of HKD 13,078,000 in the same period of the previous year[88] Initial Public Offering (IPO) - The net proceeds from the IPO amounted to approximately HKD 90.6 million, with planned uses including expanding placement and underwriting business, and upgrading IT systems[39] - The company raised HKD 2,500,000 from the issuance of 250,000,000 shares at HKD 0.5 each during its initial public offering on February 19, 2020[169] Other Financial Information - The company reported commission income from related parties totaling HKD 465,000 for the six months ended September 30, 2020, compared to HKD 143,000 for the same period in 2019, representing a significant increase of 225.9%[171] - Interest income from related parties was HKD 19,000 for the six months ended September 30, 2020, down from HKD 39,000 in the same period of 2019, indicating a decrease of 51.3%[171] - The company received fee income from related parties amounting to HKD 27,000 for the six months ended September 30, 2020, slightly up from HKD 25,000 in the same period of 2019, reflecting a growth of 8%[171]

Financial Performance - Total revenue for the fiscal year ended March 31, 2020, was approximately HKD 61.5 million, a decrease of about 5.8% compared to the previous year[22] - The net profit attributable to shareholders was HKD 13.6 million, with an adjusted net profit of HKD 34.0 million, reflecting a decrease of approximately 17.1% year-on-year[22] - The total revenue for the group was approximately HKD 61.5 million, a decrease of 5.8% compared to the previous year (HKD 65.3 million) due to delays and cancellations in certain underwriting and placement projects[37] - The net profit attributable to the owners of the company decreased to approximately HKD 13.6 million, down 64.0% from approximately HKD 37.8 million in the previous year[41] - The interest income from margin financing services increased by 28.8% to approximately HKD 17.2 million, accounting for 28.0% of total revenue[33] - Commission income from placement and underwriting services decreased by 24.6% to approximately HKD 21.7 million, representing 35.3% of total revenue[35] - The brokerage service commission income decreased by 1.2% to approximately HKD 22.6 million, accounting for 36.7% of total revenue[32] - The company’s adjusted net profit, excluding listing expenses, was approximately HKD 34.0 million, a decrease of 17.1% from approximately HKD 41.0 million in the previous year[41] - The listing expenses for the year amounted to approximately HKD 20.4 million, significantly higher than HKD 1.9 million in the previous year[40] - Increased operational expenses were noted due to one-time charitable donations and higher audit fees[22] Market Conditions - The ongoing COVID-19 pandemic has severely impacted Hong Kong's capital markets, leading to the worst performance since the 2008 financial crisis[22] - The company anticipates continued volatility in financial markets due to various risks and uncertainties, including the COVID-19 situation and geopolitical tensions[24] - The overall market environment was negatively impacted by the COVID-19 pandemic, leading to a significant reduction in investor appetite for new issuances in the Hong Kong capital market[28] - The financial services industry in Hong Kong saw a total of 148 IPOs raising USD 40 billion during the fiscal year, outperforming Nasdaq[20] Funding and Capital Management - The company successfully raised approximately HKD 90.6 million in net proceeds from its listing on the Hong Kong Stock Exchange on February 19, 2020, which is expected to provide sufficient funding for future expansion[21] - The net proceeds from the IPO amounted to approximately HKD 90.6 million, which will be used for expanding placement and underwriting business, providing funding for margin financing, and upgrading IT systems[55] - As of March 31, 2020, the group's cash and bank deposits totaled approximately HKD 149.5 million, a significant increase from HKD 30.2 million in 2019[42] - The net current assets as of March 31, 2020, were approximately HKD 310.5 million, up by about HKD 127.0 million from HKD 183.5 million in 2019[42] - The debt-to-equity ratio as of March 31, 2020, was approximately 0.03, a decrease from 0.16 in 2019[43] - As of March 31, 2020, the group's bank borrowings were HKD 10.0 million, down from HKD 30.0 million in 2019[45] Corporate Governance and Management - The company operates as a comprehensive financial services provider under the Securities and Futures Ordinance in Hong Kong, primarily through its subsidiary, Kafuda Securities, licensed for regulated activities including Type 1 (Securities Trading), Type 4 (Advising on Securities), and Type 9 (Asset Management) [77] - The management team includes experienced professionals with over 20 years in general business administration and finance, enhancing the company's strategic direction and operational management [66][72] - The company has a strong focus on risk management, with key personnel responsible for overseeing risk policies and compliance in regulated activities [66][72] - The board comprises independent non-executive directors with extensive experience in various industries, providing independent opinions on the company's strategy and performance [68][70] - The financial director oversees financial reporting, planning, and monitoring, ensuring robust financial governance within the organization [72] - The company aims to expand its market presence and enhance its service offerings through strategic initiatives and potential acquisitions [77] - The management team is committed to maintaining high standards of corporate governance and operational integrity [68][69] Employee and Operational Insights - Employee costs for the year were approximately HKD 7.1 million, an increase of about HKD 1.8 million from HKD 5.3 million in 2019[50] - The group reported that sales to the top five customers accounted for 29.5% of total sales for the year, down from 32.0% in 2019, with the largest customer contributing 8.1% of total sales, down from 13.1% in 2019[97] - The group has not issued any debt securities during the review year[90] - The group has not made any investments in properties during the review year[89] - The group has not entered into any management contracts for significant portions of its business during the review year[101] Shareholder and Equity Information - The company has a total of 750,000,000 shares held by Mr. Li, representing a 75% ownership stake[123] - Mr. Li owns 60% of the issued share capital of Wan Shun Holdings Limited, which is considered as having an interest in the shares held by Wan Shun[124] - Major shareholders hold 75% of the company's shares, with specific individuals having controlled interests[129] - The public float of the company's shares is at least 25% as of the report date[142] Compliance and Legal Matters - The group has complied with all relevant laws and regulations without any significant violations during the review year[87] - The group has confirmed compliance with the disclosure requirements of the Listing Rules during the review year[103] - The company has no significant litigation or arbitration pending as of the report date[138] - The independent non-executive directors confirmed that the controlling shareholders complied with the non-competition agreement during the review period[116] Risk Management - The board is committed to maintaining effective risk management and internal control systems, which aim to manage rather than eliminate risks associated with achieving business objectives[198] - The risk management process includes risk identification, assessment, management measures, and control and review, with management responsible for monitoring and communicating risks[199] - The board has sufficient capability to oversee the design and implementation of risk management and internal control systems, negating the immediate need for an internal audit function[199]