Revenue Performance - The total revenue for the group was approximately HKD 93.7 million, representing an increase of about 680.5% compared to the same period last year[10]. - Revenue from corporate finance services increased by approximately 132.7%, while the placement and underwriting business saw a staggering increase of about 3,051.9%[10]. - The group's total revenue for the period was approximately HKD 93.7 million, representing an increase of about 680.5% compared to the same period last year, driven by increased client acquisition and expanded services in corporate financing, underwriting, and secured personal loans[34]. - The company reported a total revenue of HKD 93,704,000 for the six months ended August 31, 2024, a significant increase from HKD 12,005,000 for the same period in 2023, representing a growth of approximately 680%[149]. - The income from placement and underwriting services surged to HKD 85.7 million, compared to HKD 2.7 million in the previous year[118]. Financial Losses - The group recorded a total loss and comprehensive expenses of approximately HKD 22.9 million, compared to a total income and comprehensive income of approximately HKD 9.3 million in the same period last year[10]. - The group recorded a total loss of approximately HKD 22.9 million for the period, compared to a total income of approximately HKD 9.3 million in the same period last year, mainly due to unrealized losses on financial assets measured at fair value through profit or loss[40]. - The company reported a loss before tax of HKD 22.9 million for the period, compared to a profit of HKD 9.3 million in the previous year[118]. - The company reported a total comprehensive loss of HKD (22,889) million for the period, compared to a profit of HKD 9,347 million in the same period last year[124]. Asset Management - The group managed assets of approximately USD 2.8 million (approximately HKD 22.1 million) in the Innovax Balanced Fund as of August 31, 2024, slightly down from USD 2.9 million (approximately HKD 22.8 million) in February 2024[26]. - The total outstanding balance of margin loans was approximately HKD 21.0 million as of August 31, 2024, an increase from HKD 18.6 million in February 2024, with interest income from securities financing at approximately HKD 1.4 million, down from HKD 4.4 million last year[25]. - Non-current assets increased significantly to HKD 8,343 million as of August 31, 2024, compared to HKD 1,509 million as of February 29, 2024[121]. - Current assets totaled HKD 288,106 million, a slight increase from HKD 282,091 million in the previous period[121]. - The total assets reached HKD 296,449 million, up from HKD 283,600 million[121]. Operational Challenges - The economic recovery in Hong Kong remains uneven, impacted by high interest rates and a lack of strong economic momentum[15]. - The geopolitical tensions and inflationary pressures continue to create a challenging business environment globally[11]. - The group anticipates a challenging operating environment for the remainder of the fiscal year due to geopolitical uncertainties and inflationary pressures[67]. Employee and Operational Costs - Employee costs decreased by approximately 27.6% to about HKD 10.8 million, attributed to cost control measures through optimizing the employee compensation plan[39]. - Other operating expenses increased by approximately 1,460.2% to about HKD 89.0 million, primarily due to expenses related to bond underwriting participation, which were not present in the same period last year[38]. - The company experienced a decrease in employee costs, totaling HKD 10,837,000 for the six months ended August 31, 2024, down from HKD 14,976,000 in the same period of 2023[168]. Shareholder Information - As of August 31, 2024, the company has 400,000,000 shares issued, with major shareholders holding significant stakes, including 75% by the controlling shareholder[83][90]. - The controlling shareholder, Mr. Zhong Zhiwen, holds 300,000,000 shares (75%) through a controlled corporation and has a beneficial interest in 400,000 shares (0.1%)[81][82]. - The company has confirmed that all directors and major shareholders have adhered to the non-competition agreement established in 2018[79][80]. Future Plans and Strategies - The group plans to expand its product offerings by increasing secured personal loan services, including accepting physical assets as collateral[31]. - The management aims to strengthen its core business and enhance competitiveness while expanding its industrial chain[58]. - The company is committed to exploring new business opportunities and expanding its product and service offerings[68]. Compliance and Governance - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules, ensuring compliance by all directors during the reporting period[74]. - The company continues to ensure compliance with the Securities and Futures Ordinance regarding the disclosure of interests by directors and major shareholders[88].

Financial Performance - Total revenue for the six months ended August 31, 2024, was HKD 93,704,000, a significant increase from HKD 12,005,000 in the same period last year, representing a growth of 680.3%[1] - The company reported a loss of HKD 22,889,000 for the period, compared to a profit of HKD 9,347,000 in the previous year, indicating a decline in profitability[2] - Basic and diluted loss per share was HKD 5.72, compared to earnings of HKD 2.34 per share in the same period last year[2] - The company reported a total revenue of HKD 93,704 thousand for the six months ended August 31, 2024, compared to HKD 12,005 thousand for the same period in 2023, indicating a significant increase[15] - The group recorded a total loss and comprehensive expenses of approximately HKD 22.9 million, compared to a total income of about HKD 9.3 million in the same period last year, primarily due to an unrealized net loss of approximately HKD 15.4 million from financial assets[62] Revenue Breakdown - Revenue from corporate finance advisory services increased to HKD 4,347,000 from HKD 1,868,000, marking a growth of 132.5%[2] - Revenue from placement and underwriting services surged to HKD 85,701,000 from HKD 2,719,000, reflecting an increase of 3,058.4%[2] - The income from corporate finance advisory services was HKD 4,347 thousand, up from HKD 1,868 thousand year-over-year, reflecting a growth of approximately 132.5%[15] - The underwriting and placement business saw a revenue increase of approximately 3,051.9%, while the lending business generated a revenue increase of about 52.9% compared to the previous year[62] - The financial and independent financial advisory services generated revenue of approximately HKD 3.0 million, an increase from about HKD 0.6 million last year, with 18 financial advisory projects completed[68] Asset and Liability Overview - Total assets as of August 31, 2024, amounted to HKD 296,449,000, up from HKD 283,600,000 as of February 29, 2024[3] - Current assets totaled HKD 288,106,000, compared to HKD 282,091,000 in the previous reporting period[3] - Non-current assets increased to HKD 8,343,000 from HKD 1,509,000, indicating a growth of 438.5%[3] - The company's net asset value decreased to HKD 187,600,000 from HKD 210,489,000, showing a decline of 10.8%[4] - As of August 31, 2024, the cash and bank balances were approximately HKD 35,154,000, a decrease from HKD 75,121,000 as of February 29, 2024[44] Operational Highlights - The company continues to focus on providing financial and securities services, including corporate finance advisory, placement, underwriting, and asset management services[5] - The company’s advisory services for initial public offerings and compliance consulting generated significant revenue, contributing to overall growth in advisory income[11] - The group completed 18 placement and underwriting projects during the period, generating approximately HKD 85.7 million in revenue, a significant increase from HKD 2.7 million in the same period last year[70] - The group participated in 4 IPO sponsorship projects during the period, generating revenue of approximately HKD 0.3 million, down from HKD 0.7 million last year[67] Employee and Operational Costs - The company reported a decrease in employee costs to HKD 10,837 for the six months ending August 31, 2024, down from HKD 14,976 in the same period last year, representing a reduction of approximately 27%[23] - Other operating expenses increased by approximately 1,460.2% to about HKD 89.0 million, primarily due to expenses related to bond underwriting participation, which were not present in the same period last year[81] Market and Economic Conditions - The geopolitical tensions and inflationary pressures continue to create a challenging business environment, impacting the overall economic recovery in Hong Kong and China[63][64] - The company anticipates a challenging operating environment for the remainder of the fiscal year due to geopolitical uncertainties, inflation pressures, and global economic recession risks[100] - The Hong Kong financial market's performance is closely tied to the recovery of the Chinese economy, with the company focusing on expanding its product range and customer base[102] Future Plans and Strategies - The company plans to raise up to approximately HKD 12.0 million through a rights issue at a subscription price of HKD 0.60 per share, offering a maximum of 20,000,000 shares[104] - The company is committed to exploring business opportunities and diversifying into new business areas, leveraging its overseas resources[102] - The company will continue to enhance risk management and credit control capabilities to mitigate potential market and operational risks[101] Governance and Compliance - The company has established an audit committee to oversee financial reporting and compliance with corporate governance codes[107] - The controlling shareholders have confirmed compliance with the non-competition agreement since the listing date on September 14, 2018[110] - No directors or major executives hold any competing business interests as of the announcement date[110] Shareholder Information - As of August 31, 2024, the company has a total of 400,000,000 shares issued, with the controlling shareholder holding 300,000,000 shares, representing 75% ownership[114] - The board has decided not to declare any interim dividends for the current period, consistent with the previous year[118] - The company maintains the required public float percentage as per listing rules[118]

[Company Information](index=2&type=section&id=Company%20Information) [Chairman's Statement](index=3&type=section&id=Chairman's%20Statement) [Market Review and Company Performance](index=3&type=section&id=Market%20Review%20and%20Company%20Performance) Despite global economic challenges, the Group's total revenue decreased, but it successfully returned to profitability in FY2023/24, driven by strategic capital investments Key Financial Performance in FY2023/24 | Metric | FY2024 | FY2023 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Revenue | Approx. 32.7 million HKD | Approx. 45.5 million HKD | -28.1% | | Equity Investment Income | Approx. 22.4 million HKD | N/A | N/A | | Profit/(Loss) and Total Comprehensive Income/(Expense) | Approx. 1.8 million HKD | Approx. (6.6) million HKD | Returned to Profit | - Hong Kong's financial market performed poorly, with the Hang Seng Index falling by **approximately 19.9%**, average daily stock market turnover decreasing by **approximately 20.3%**, and total fundraising by new main board listed companies declining by **approximately 55.1%**[10](index=10&type=chunk) - Most of the Group's business revenues declined: corporate finance advisory, securities trading and brokerage, securities financing, and asset management revenues decreased by **32.7%**, **4.2%**, **62.7%**, and **6.2%** respectively[13](index=13&type=chunk) - Businesses with counter-cyclical growth included placing and underwriting, with revenue increasing by **14.5%**, and money lending, with revenue significantly growing by **590.8%**[13](index=13&type=chunk) [Company Overview and Future Outlook](index=4&type=section&id=Company%20Overview%20and%20Future%20Outlook) The Group, a comprehensive financial and securities service provider, will maintain a cautious approach, strengthen risk management, and explore new business opportunities, particularly in the Greater Bay Area, amidst challenging operating conditions - The Group holds Type 1, 2, 4, 6, and 9 regulated activity licenses issued by the Hong Kong SFC and engages in money lending business[12](index=12&type=chunk) - Future strategic priorities include strengthening risk management, strict cost control, expanding product services, exploring new business areas, and seizing opportunities from Greater Bay Area development[14](index=14&type=chunk)[16](index=16&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) [Business Overview](index=6&type=section&id=Business%20Overview) Despite a 28.1% revenue decline to 32.7 million HKD due to a sluggish market, the Group returned to profitability with a 1.8 million HKD profit, boosted by 22.4 million HKD in equity investment income Revenue Performance by Business Segment (million HKD) | Business Segment | FY2024 Revenue | FY2023 Revenue | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Corporate Finance Advisory | 11.7 | 17.4 | -32.7% | | Securities Trading and Brokerage | 3.0 | 3.1 | -4.2% | | Securities Financing | 5.5 | 14.8 | -62.7% | | Asset Management | 0.4 | 0.5 | -6.2% | | Placing and Underwriting | 10.9 | 9.5 | +14.5% | | Money Lending Services | 1.1 | 0.2 | +590.8% | [Corporate Finance Advisory Services](index=6&type=section&id=Corporate%20Finance%20Advisory%20Services) Corporate finance advisory revenue decreased by 32.7% to 11.7 million HKD, with a significant reduction in projects handled, including IPO sponsorships, financial advisory, and compliance advisory engagements Corporate Finance Advisory Business Projects and Revenue Details | Project Type | 2024 Projects | 2023 Projects | 2024 Revenue (million HKD) | 2023 Revenue (million HKD) | | :--- | :--- | :--- | :--- | :--- | | IPO Sponsorship | 7 | 12 | 8.2 | 11.1 | | Financial and Independent Financial Advisory | 14 | 21 | 2.0 | 4.4 | | Compliance Advisory | 7 | 11 | 1.5 | 1.9 | | **Total** | **28** | **44** | **11.7** | **17.4** | [Other Financial Services](index=7&type=section&id=Other%20Financial%20Services) Placing and underwriting revenue increased significantly, while securities trading and brokerage remained stable; securities financing revenue decreased due to a cautious strategy, and money lending saw substantial growth - Placing and underwriting business completed projects increased from **5 to 12**, with revenue reaching **10.9 million HKD**[28](index=28&type=chunk) - Due to a cautious strategy amid market deterioration, outstanding margin loan balances in securities financing significantly decreased from **64.7 million HKD to 18.6 million HKD**[31](index=31&type=chunk) Money Lending Business Details | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Number of Personal Loans | 9 | 6 | | Outstanding Principal Amount | 19.478 million HKD | 15.511 million HKD | | Annual Interest Rate Range | 3%–15% | 3%–15% | [Financial Review](index=9&type=section&id=Financial%20Review) Total revenue for the fiscal year was 32.7 million HKD, a 28.1% decrease year-on-year, but the Group returned to profitability with a 1.8 million HKD profit, primarily due to 22.4 million HKD in equity investment income Financial Performance Summary (million HKD) | Item | FY2024 | FY2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | 32.7 | 45.5 | -28.1% | | Equity Investment Income | 22.4 | N/A | N/A | | Other Operating Expenses | 15.1 | 12.6 | +19.0% | | Staff Costs | 41.4 | 41.4 | 0% | | Profit/(Loss) | 1.8 | (6.6) | Returned to Profit | [Liquidity, Financial Resources and Capital Structure](index=10&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) The Group maintains a robust financial position with sufficient liquidity, evidenced by net current assets of 209.0 million HKD, a current ratio of 3.86 times, and zero debt-to-equity ratio as of February 29, 2024 Liquidity and Capital Structure Indicators | Metric | As of Feb 29, 2024 | As of Feb 28, 2023 | | :--- | :--- | :--- | | Net Current Assets | 209.0 million HKD | 200.7 million HKD | | Current Ratio | 3.86 times | 3.04 times | | Cash and Bank Balances | 112.0 million HKD | 87.4 million HKD | | Debt-to-Equity Ratio | Zero | Zero | [Significant Investments Held by the Group](index=12&type=section&id=Significant%20Investments%20Held%20by%20the%20Group) As of February 29, 2024, the Group held a 5.85% equity stake in Taizhou Water Group Co., Ltd., valued at approximately 31.4 million HKD, despite its recent shift from profit to loss Significant Investment Details: Taizhou Water Group Co., Ltd. (1542.HK) | Metric | Value | | :--- | :--- | | Percentage of Shareholding | 5.85% | | Percentage of Total Assets | 11.1% | | Fair Value (thousand HKD) | 31,356 | | Investment Cost (thousand HKD) | 48,159 | | Unrealized Loss (thousand HKD) | 5,031 | - Taizhou Water's FY2023 revenue grew by **11.7%** to approximately **RMB 606 million**, but it recorded a loss attributable to owners of approximately **RMB 84.0 million** (compared to a profit of approximately RMB 55.9 million in 2022)[62](index=62&type=chunk) [Use of Proceeds](index=14&type=section&id=Use%20of%20Proceeds) As of February 29, 2024, the Group has fully utilized the net proceeds of approximately 158 million HKD from its IPO, primarily for expanding securities financing and placing and underwriting businesses - The Group has **100% utilized** the net IPO proceeds of **158 million HKD**[72](index=72&type=chunk) Revised Allocation and Use of Net Proceeds (million HKD) | Purpose | Revised Allocated Amount | Amount Utilized | | :--- | :--- | :--- | | Expansion of Placing and Underwriting Business | 40.00 | 40.00 | | Expansion of Securities Financing Business | 92.03 | 92.03 | | Strengthening of Corporate Finance Advisory Business | 0.90 | 0.90 | | Expansion of Asset Management Business | 10.07 | 10.07 | | Working Capital and General Corporate Purposes | 15.00 | 15.00 | | **Total** | **158.00** | **158.00** | [Prospects and Outlook](index=15&type=section&id=Prospects%20and%20Outlook) The Group anticipates gradual market improvement with controlled inflation and potential interest rate cuts, but will remain cautious, focusing on risk management, diversification, and Greater Bay Area opportunities amidst geopolitical uncertainties - The macroeconomic environment is expected to improve, but financial markets will remain volatile due to geopolitical factors and uncertainties in China's economic recovery[77](index=77&type=chunk) - The Group will continue to strengthen its existing financial services platform while exploring diversification opportunities in new business areas[77](index=77&type=chunk) - The Group is optimistic about the Greater Bay Area's development prospects and will focus on cross-border business, leveraging its overseas resources[78](index=78&type=chunk) [Biographies of Directors and Senior Management](index=16&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management) [Report of the Directors](index=21&type=section&id=Report%20of%20the%20Directors) [Principal Business and Stakeholder Relationships](index=21&type=section&id=Principal%20Business%20and%20Stakeholder%20Relationships) The Group, a comprehensive financial and securities service provider, maintains strong relationships with key stakeholders and adheres to relevant laws and regulations, with no significant disputes reported during the year - The Group's principal businesses include IPO sponsorship, financial advisory, compliance advisory, placing and underwriting, securities and futures trading, securities financing, asset management, and money lending services[104](index=104&type=chunk) - During the year, sales to the Group's top five customers and largest customer accounted for approximately **52.4%** and **36.6%** of total sales respectively[124](index=124&type=chunk) - As of February 29, 2024, the Group had **35 employees**, with staff costs of approximately **41.4 million HKD**, consistent with the previous year[126](index=126&type=chunk)[130](index=130&type=chunk) [Dividends and Reserves](index=23&type=section&id=Dividends%20and%20Reserves) The Board resolved not to declare any dividends for the current year, with details of reserve movements presented in the consolidated statement of changes in equity - The Directors do not recommend the payment of any dividend for the current year (2023: nil)[120](index=120&type=chunk) [Directors and Shareholding Structure](index=25&type=section&id=Directors%20and%20Shareholding%20Structure) The Board members remained stable, with controlling shareholder Mr. Zhong Zhiwen holding 75% of the company's shares through his wholly-owned subsidiary, and no listed securities were purchased, sold, or redeemed during the period Major Shareholders' Shareholding (as of February 29, 2024) | Shareholder Name/Entity | Capacity/Nature of Interest | Number of Securities | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Zhong Zhiwen | Interest in controlled corporation | 300,000,000 shares | 75% | | Baiyang | Beneficial owner | 300,000,000 shares | 75% | | Ms. Li Yanxia | Spouse's interest | 300,000,000 shares | 75% | - The controlling shareholder confirmed continuous compliance with the undertakings under the non-competition deed throughout the year[145](index=145&type=chunk) [Share Option Scheme](index=30&type=section&id=Share%20Option%20Scheme) The company adopted a new share option scheme on August 18, 2023, replacing the terminated 2018 scheme, with 40 million options granted under the old scheme remaining unexercised as of February 29, 2024 - The 2018 Share Option Scheme was terminated on August 18, 2023, and a new share option scheme was adopted[160](index=160&type=chunk)[161](index=161&type=chunk) Unexercised Share Options (as of February 29, 2024) | Category of Grantees | Number of Unexercised Share Options | Exercise Price (HKD) | Exercise Period | | :--- | :--- | :--- | :--- | | Directors and Chief Executives | 2,400,000 | 0.324 | Sep 9, 2022 to Mar 8, 2032 | | Other Employees and Former Directors | 37,600,000 | 0.324 | Sep 9, 2022 to Mar 8, 2032 | | **Total** | **40,000,000** | **0.324** | | [Corporate Governance Report](index=34&type=section&id=Corporate%20Governance%20Report) [Board and Committees](index=34&type=section&id=Board%20and%20Committees) The company maintains high corporate governance standards with a clearly structured Board comprising executive and independent non-executive directors, supported by audit, remuneration, and nomination committees that met regularly to fulfill their responsibilities - The company confirmed continuous compliance with the code provisions of the Corporate Governance Code throughout the year[182](index=182&type=chunk) - The Board comprises **5 directors**, including **3 independent non-executive directors**, meeting Listing Rules requirements[183](index=183&type=chunk)[190](index=190&type=chunk) Meeting Attendance During the Year | Meeting Type | Number of Meetings Held | Attendance Rate | | :--- | :--- | :--- | | Board Meetings | 6 | Most directors attended all meetings | | General Meetings | 1 | Most directors attended all meetings | | Audit Committee Meetings | 2 | Members generally attended all meetings | | Remuneration Committee Meetings | 1 | All members attended | | Nomination Committee Meetings | 1 | All members attended | [Risk Management and Internal Control](index=42&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board is ultimately responsible for the Group's risk management and internal control systems, which are annually reviewed and confirmed as effective and adequate, with management overseeing daily operations and reporting to the Board - The Board annually reviews the effectiveness of the risk management and internal control systems[221](index=221&type=chunk) - The Group has implemented policies for handling and disclosing inside information to ensure confidentiality and timely disclosure[227](index=227&type=chunk) [Shareholder Rights and Communication](index=44&type=section&id=Shareholder%20Rights%20and%20Communication) The company prioritizes transparent and timely communication with shareholders through various channels, outlining their rights to convene general meetings, propose resolutions, and make inquiries, while also adopting a dividend policy where payouts are discretionary - Shareholders holding not less than one-tenth of the company's paid-up capital have the right to request an extraordinary general meeting[235](index=235&type=chunk) - The company has adopted a dividend policy, but dividend payment is not guaranteed and is subject to the Board's discretion[238](index=238&type=chunk) [Environmental, Social and Governance Report](index=46&type=section&id=Environmental,%20Social%20and%20Governance%20Report) [ESG Strategy and Governance](index=47&type=section&id=ESG%20Strategy%20and%20Governance) The Group is committed to sustainable development, focusing on operational sustainability, community, diversity, and climate, with the Board overseeing ESG strategy and risk management, identifying key issues through stakeholder engagement - The report is prepared in accordance with the HKEX ESG Reporting Guide, covering the period from March 1, 2023, to February 29, 2024[243](index=243&type=chunk)[245](index=245&type=chunk) - The Board bears overall responsibility for ESG strategy and performance, overseeing related risk management[257](index=257&type=chunk) [Environmental Protection](index=50&type=section&id=Environmental%20Protection) The Group reduced total energy consumption by 21.0% and greenhouse gas emissions by 24.4% year-on-year through energy-saving measures, and plans further carbon offsetting initiatives Energy Consumption and Greenhouse Gas Emissions | Environmental KPI | 2023/24 Fiscal Year | 2022/23 Fiscal Year | Unit | | :--- | :--- | :--- | :--- | | Total Energy Consumption | 7.02 | 8.89 | MWh | | Total Greenhouse Gas Emissions | 4.77 | 6.31 | metric tons of CO2e | Non-Hazardous Waste Generation | Environmental KPI | 2023/24 Fiscal Year | 2022/23 Fiscal Year | Unit | | :--- | :--- | :--- | :--- | | Total Non-Hazardous Waste Generated | 0.36 | 0.58 | metric tons | - The Group plans to achieve carbon neutrality and local afforestation by purchasing carbon credits to support Amazon forest projects and planting trees in Hong Kong or mainland China[275](index=275&type=chunk)[277](index=277&type=chunk) [Employee Care and Development](index=54&type=section&id=Employee%20Care%20and%20Development) The Group values employees as core assets, providing a fair and safe work environment, competitive compensation, and training, with all employees receiving 12 hours of anti-money laundering and risk management training this year - As of February 29, 2024, the corporate finance advisory business had **12 full-time employees**, comprising **8 females** and **4 males**[282](index=282&type=chunk)[283](index=283&type=chunk) Employee Training Overview | Category | Percentage of Employees Trained | Average Training Hours per Employee | | :--- | :--- | :--- | | By Gender (Male/Female) | 100% | 12.0 | | By Employee Category (Senior/Middle/Junior) | 100% | 12.0 | - No work-related injuries or fatalities occurred within the Group during the reporting period or the past two fiscal years[292](index=292&type=chunk) [Operating Practices and Community Investment](index=57&type=section&id=Operating%20Practices%20and%20Community%20Investment) The Group upholds high ethical standards in operations, implementing policies for supply chain, product responsibility, and anti-corruption, while actively engaging in community investment through employee volunteering and green initiatives - The Group has formulated and implemented operating policies covering supply chain management, product responsibility, and anti-corruption[297](index=297&type=chunk) - The Group has a whistleblowing policy and provides internal anti-corruption and anti-money laundering training to all employees[303](index=303&type=chunk) - The Group plans to create employment opportunities and generate positive social impact in local communities by supporting Amazon forest greening projects[310](index=310&type=chunk) [Independent Auditor's Report](index=60&type=section&id=Independent%20Auditor's%20Report) [Audit Opinion and Key Audit Matters](index=60&type=section&id=Audit%20Opinion%20and%20Key%20Audit%20Matters) The independent auditor issued an unmodified opinion on the Group's consolidated financial statements, identifying the impairment assessment of accounts and loans receivable from securities financing services as a key audit matter due to significant management judgment - The auditor believes the consolidated financial statements fairly and truthfully reflect the Group's financial position and performance in accordance with Hong Kong Financial Reporting Standards[312](index=312&type=chunk) - A key audit matter is the "Impairment assessment of accounts receivable and loans receivable arising from securities financing services," primarily due to significant judgment and estimation involved in determining expected credit losses[314](index=314&type=chunk)[316](index=316&type=chunk) [Consolidated Financial Statements](index=64&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=64&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended February 29, 2024, the Group's total revenue decreased to 32.7 million HKD, but it successfully returned to profitability with a 1.8 million HKD profit, primarily due to 22.4 million HKD in other income Consolidated Statement of Profit or Loss Summary (thousand HKD) | Item | FY2024 | FY2023 | | :--- | :--- | :--- | | Total Revenue | 32,727 | 45,535 | | Other Income | 22,424 | 625 | | Staff Costs | (41,368) | (41,390) | | Profit/(Loss) Before Tax | 1,775 | (6,577) | | **Profit/(Loss) for the Year** | **1,775** | **(6,577)** | | Basic Earnings/(Loss) Per Share | 0.44 HK cents | (1.64) HK cents | [Consolidated Statement of Financial Position](index=65&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of February 29, 2024, the Group's total assets were 283.6 million HKD, with net assets of 210.5 million HKD, primarily comprising cash and bank balances and financial assets at fair value through profit or loss Consolidated Statement of Financial Position Summary (thousand HKD) | Item | As of Feb 29, 2024 | As of Feb 28, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 1,509 | 8,303 | | Current Assets | 282,091 | 299,312 | | **Total Assets** | **283,600** | **307,615** | | **Liabilities and Equity** | | | | Current Liabilities | 73,111 | 98,571 | | Non-current Liabilities | — | 330 | | **Total Liabilities** | **73,111** | **98,901** | | **Total Equity** | **210,489** | **208,714** | [Consolidated Statement of Changes in Equity](index=66&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) As of February 29, 2024, the Group's total equity increased by 1.8 million HKD to 210.5 million HKD, primarily driven by the profit recorded for the year Summary of Changes in Equity (thousand HKD) | Item | Share Capital | Share Premium | Share Option Reserve | Retained Profits | Total Equity | | :--- | :--- | :--- | :--- | :--- | :--- | | As of Feb 28, 2023 | 4,000 | 169,663 | 6,707 | 28,344 | 208,714 | | Profit for the Year | — | — | — | 1,775 | 1,775 | | **As of Feb 29, 2024** | **4,000** | **169,663** | **6,707** | **30,119** | **210,489** | [Consolidated Statement of Cash Flows](index=67&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The Group generated 22.7 million HKD from operating activities and 3.4 million HKD from investing activities, resulting in a net increase of 24.6 million HKD in cash and bank balances, reaching 112.0 million HKD at year-end Cash Flow Summary (thousand HKD) | Item | FY2024 | FY2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 22,726 | 30,048 | | Net Cash from Investing Activities | 3,442 | 426 | | Net Cash Used in Financing Activities | (1,538) | (1,910) | | **Net Increase in Cash and Bank Balances** | **24,630** | **28,564** | | Cash and Bank Balances at Beginning of Year | 87,390 | 58,826 | | **Cash and Bank Balances at End of Year** | **112,020** | **87,390** | [Financial Summary](index=126&type=section&id=Financial%20Summary) [Five-Year Financial Summary](index=126&type=section&id=Five-Year%20Financial%20Summary) Over the past five years, the Group's revenue fluctuated, declining to 32.7 million HKD in 2024, while profitability returned to positive in 2024 after a significant loss in 2022, and net assets remained relatively stable Five-Year Financial Data Summary (thousand HKD) | Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 96,676 | 83,682 | 34,955 | 45,535 | 32,727 | | (Loss)/Profit for the Year | 1,607 | 2,380 | (22,517) | (6,577) | 1,775 | | Net Assets | 228,690 | 231,070 | 208,553 | 208,714 | 210,489 |

Financial Performance - Total revenue for the fiscal year ending February 29, 2024, was HK$32,727 thousand, a decrease from HK$45,535 thousand in the previous year[3] - Net profit for the year was HK$1,775 thousand, compared to a net loss of HK$6,577 thousand in the previous year[3] - Earnings per share (basic and diluted) were HK$0.44, compared to a loss per share of HK$1.64 in the previous year[3] - Total revenue decreased by 28.1% to HKD 32.7 million in 2024 from HKD 45.5 million in 2023, with declines in corporate finance advisory, securities trading, securities financing, and asset management revenues[90][91] - The company recorded a profit and total comprehensive income of approximately HKD 1.8 million, a significant improvement from a loss of HKD 6.6 million in the previous year[95] - Revenue for the quarter reached $5.2 billion, representing a 12% year-over-year growth[142] - Net income increased by 18% to $1.1 billion compared to the same period last year[142] - Operating margin improved to 25%, up from 22% in the previous quarter[142] - Guidance for the next quarter projects revenue between $5.5 billion and $5.7 billion, reflecting a 10-14% growth[142] Revenue Breakdown - Revenue from corporate finance advisory services decreased to HK$11,734 thousand from HK$17,446 thousand year-over-year[5] - Revenue from securities financing interest income dropped significantly to HK$5,525 thousand from HK$14,808 thousand[5] - The company's revenue from corporate finance advisory services increased from HKD 17.446 million in 2023 to HKD 11.734 million in 2024, with sponsor fee income rising from HKD 8.207 million to HKD 11.147 million[24] - Revenue from placement and underwriting services decreased from HKD 10.913 million in 2023 to HKD 9.531 million in 2024[24] - Securities trading and brokerage services saw a slight increase in commission income from HKD 3.002 million in 2023 to HKD 3.132 million in 2024[24] - Asset management services generated management fee income of HKD 427,000 in 2023 and HKD 455,000 in 2024[24] - Interest income from securities financing services surged from HKD 5.523 million in 2023 to HKD 14.787 million in 2024[24] - Total revenue increased from HKD 32.727 million in 2023 to HKD 45.535 million in 2024[24] - Revenue recognized at a point in time was HKD 13.915 million in 2024, compared to HKD 12.663 million in 2023[26] - Revenue recognized over time decreased from HKD 17.901 million in 2023 to HKD 12.161 million in 2024[26] - The company completed 28 corporate finance advisory projects in 2024, down from 44 in 2023, with revenue from this segment decreasing by 32.7% to HKD 11.7 million[73] - Revenue from IPO sponsorship services decreased to HKD 8.2 million in 2024 from HKD 11.1 million in 2023, with the company completing one IPO sponsorship out of 68 new listings on the main board[74] - Financial advisory services revenue decreased to HKD 2.0 million in 2024 from HKD 4.4 million in 2023, with 10 projects completed compared to 12 in the previous year[76] - Compliance advisory services revenue dropped to HKD 1.5 million in 2024 from HKD 1.9 million in 2023, with 7 projects completed compared to 11 in the previous year[77] - Placement and underwriting services revenue increased to HKD 10.9 million in 2024 from HKD 9.5 million in 2023, with 12 projects completed compared to 5 in the previous year[78] - Securities trading and brokerage services revenue slightly decreased to HKD 3.0 million in 2024 from HKD 3.1 million in 2023, with 1,015 securities accounts compared to 916 in the previous year[79] - Securities financing services interest income dropped to HKD 5.5 million in 2024 from HKD 14.8 million in 2023, with outstanding margin loan balance decreasing to HKD 18.6 million from HKD 64.7 million[81] - Asset management services revenue decreased to HKD 427,000 in 2024 from HKD 455,000 in 2023, with assets under management at HKD 22.8 million compared to HKD 24.5 million in the previous year[82] - Money lending services interest income surged to HKD 1.1 million in 2024 from HKD 163,000 in 2023, with outstanding loan principal increasing to HKD 19.5 million from HKD 15.5 million[86] Assets and Liabilities - Total assets decreased to HK$283,600 thousand from HK$307,615 thousand compared to the previous year[7] - Cash and bank balances increased to HK$112,020 thousand from HK$87,390 thousand[7] - Current liabilities decreased to HK$73,111 thousand from HK$98,571 thousand[9] - Equity increased slightly to HK$210,489 thousand from HK$208,714 thousand[9] - Accounts receivable from securities trading and brokerage services decreased to 10,416 thousand HKD in 2024 from 21,823 thousand HKD in 2023[40] - Secured margin loans decreased to 18,617 thousand HKD in 2024 from 64,741 thousand HKD in 2023[40] - Secured receivables loans remained constant at 5,000 thousand HKD in both 2024 and 2023, with an interest rate of 8.5%[44] - Unsecured receivables loans increased to 14,937 thousand HKD in 2024 from 10,876 thousand HKD in 2023, with interest rates ranging from 3% to 15%[44] - Contract assets are classified as current assets as the company expects to realize them within the normal operating cycle[48] - The balance of contract assets at the end of the period is 0 thousand HKD for both 2024 and 2023, with a transfer of 345 thousand HKD to receivables in 2023[50] - Other receivables, deposits, and prepayments increased to 2,560 thousand HKD in 2024 from 1,485 thousand HKD in 2023, with a significant rise in current receivables to 2,285 thousand HKD[50] - Cash and bank balances increased to 112,020 thousand HKD in 2024 from 87,390 thousand HKD in 2023[55] - Payables from securities trading and brokerage services decreased to 59,072 thousand HKD in 2024 from 91,712 thousand HKD in 2023[57] - Other payables and accrued expenses rose to 13,027 thousand HKD in 2024 from 5,173 thousand HKD in 2023[60] - Contract liabilities for advisory fees increased to 302 thousand HKD in 2024 from 93 thousand HKD in 2023[60] - Lease liabilities decreased to 330 thousand HKD in 2024 from 1,826 thousand HKD in 2023[62] - Future lease payments due within one year amount to HKD 332 thousand, with a present value of HKD 330 thousand[64] - The company's lease liabilities as of February 29, 2024, total HKD 330 thousand, all classified as current liabilities[64] - Net current assets increased to approximately HKD 209.0 million, with a liquidity ratio of 3.86 times, up from 3.04 times in the previous year[96] - The company has no debt, resulting in a debt-to-equity ratio of zero[96] Investments and Equity - Financial assets at fair value through profit or loss increased to HKD 69,518 thousand in 2024 from HKD 42,586 thousand in 2023, driven by investments in Hong Kong-listed and non-listed equities[66] - The company acquired a 9.09% stake in a Hong Kong-registered non-listed company for HKD 5,355 thousand, with plans to sell the stake at an opportune time[67] - The company achieved equity investment income (realized and unrealized) of approximately HKD 22.4 million for the year[92] - As of February 29, 2024, the company held equity investments at fair value through profit or loss with a total carrying amount of approximately HKD 69.5 million[114] - The company's investment in Taizhou Water Group Co., Ltd. (Taizhou Water) had a fair value of HKD 31.356 million, representing 11.1% of the company's total assets[114] - Taizhou Water reported revenue of approximately RMB 606.3 million for the year ended December 31, 2023, an increase of 11.7% compared to the previous year[115] - Taizhou Water recorded a loss attributable to owners of approximately RMB 84.0 million for the year ended December 31, 2023, compared to a profit of RMB 55.9 million in the previous year[116] - The company holds 11,700,000 H shares of Taizhou Water, with a closing price of HKD 2.68 per share as of February 29, 2024, and received dividends of approximately HKD 858,000 during the year[118] - The company issued a total of 400,000,000 shares as of February 29, 2024[98] - The company announced a $2 billion share buyback program to be executed over the next 12 months[142] Market and Industry Trends - The U.S. stock market showed strong performance in 2023, with the Dow Jones, S&P 500, and Nasdaq Composite indices growing by 19.4%, 29.0%, and 41.4% respectively[70] - Hong Kong's stock market saw a decline, with the Hang Seng Index dropping by 19.9% and average daily turnover decreasing by 20.3% to HKD 99.5 billion[71] - The company expects a challenging operating environment in the next fiscal year due to geopolitical uncertainties and market volatility, but remains confident in gradual market improvement[130] - The company believes that the development of the Greater Bay Area will provide continuous opportunities for its business growth, leveraging its overseas resources and cross-border business development[131] Operational and Strategic Initiatives - The company plans to strengthen risk management, credit control, and cost control strategies to mitigate potential market and operational risks[130] - The company aims to expand its product and service range, customer base, and explore new business opportunities to diversify its operations[130] - The company has fully utilized the net proceeds of HKD 158.0 million from its initial public offering, representing 100% of the funds raised[123] - The company has reallocated HKD 40 million from the original HKD 80 million planned for expanding the group's placement and underwriting business, reducing the utilized amount to HKD 40 million[125] - The company increased capital for expanding its securities financing business by HKD 59.03 million, bringing the total allocation to HKD 92.03 million[125] - The company reduced the allocation for strengthening its corporate finance advisory business from HKD 15 million to HKD 0.9 million[125] - The company allocated HKD 9.75 million for establishing new funds through seed capital, maintaining the original plan[125] - The company has fully utilized all net proceeds from the initial public offering in accordance with the disclosed purposes[126] - The company plans to invest $500 million in new technology R&D over the next fiscal year[142] - Market expansion into Southeast Asia is expected to contribute $300 million in additional revenue annually[142] - A new product line is set to launch in Q4, targeting a $200 million revenue impact in its first year[142] - The company completed two strategic acquisitions totaling $1.8 billion to enhance its market position[142] Employee and Compensation - Employee costs remained stable at 41,368 thousand HKD in 2024 compared to 41,390 thousand HKD in 2023, with a notable increase in bonuses to 9,900 thousand HKD from 4,771 thousand HKD[34] - The company employs 35 staff members, with compensation based on qualifications, responsibilities, contributions, and experience[110] - Employee costs remained stable at approximately HKD 41.4 million for the year ended February 28, 2023, consistent with the previous year[111] Other Financial Information - Interest income from bank balances increased significantly to 3,442 thousand HKD in 2024 from 755 thousand HKD in 2023[32] - Dividend income decreased to 869 thousand HKD in 2024 from 2,088 thousand HKD in 2023[32] - Realized gains from financial assets at fair value through profit or loss surged to 19,850 thousand HKD in 2024 from 50 thousand HKD in 2023[34] - Other operating expenses increased by 19.0% to approximately HKD 15.1 million, primarily due to increased marketing activities[93] - The company has no significant capital commitments, contingent liabilities, or loan commitments as of February 29, 2024[108][109] - The company did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year[112] - The company has maintained sufficient public shareholding as required by the listing rules[138] - User base expanded to 250 million active users, a 15% increase from the previous quarter[142]

Financial Performance - The total revenue for the group was approximately HKD 12.0 million, a decrease of about 33.5% compared to the same period last year[11]. - The group recorded a profit and total comprehensive income of approximately HKD 9.3 million, compared to a loss of approximately HKD 9.3 million in the same period last year[12]. - Total revenue for the period was approximately HKD 12.0 million, a decrease of about 33.5% compared to the same period last year, primarily due to declines in corporate finance, asset management, and securities financing revenues by approximately 75.5%, 7.2%, and 45.8% respectively[34]. - Total revenue for the six months ended August 31, 2023, was HKD 30,877,000, an increase from HKD 20,972,000 in the same period last year, representing a growth of approximately 47.5%[116]. - The company reported a profit before tax of HKD 9,347,000 for the six months ended August 31, 2023, compared to a loss of HKD 9,339,000 in the previous year[116]. - Basic and diluted earnings per share for the period were HKD 2.34, a significant improvement from a loss of HKD 2.33 per share in the same period last year[116]. - The company reported a profit attributable to owners of HKD 9,347,000 for the six months ended August 31, 2023, compared to a loss of HKD 9,339,000 in the same period last year[154]. Revenue Breakdown - Revenue from corporate finance advisory services decreased by approximately 75.5% to about HKD 1.9 million, down from approximately HKD 7.6 million in the same period last year[18]. - The group engaged in 10 initial public offering (IPO) sponsorship projects, generating revenue of approximately HKD 0.7 million, compared to about HKD 4.6 million in the same period last year[19]. - Revenue from securities trading and brokerage services increased by approximately 126.5% year-on-year, while placement and underwriting services saw a revenue increase of approximately 194.2%[34]. - The group completed 6 placement and underwriting projects during the period, generating revenue of approximately HKD 2.7 million, compared to HKD 0.9 million in the same period last year[23]. - Client contract revenue decreased to HKD 7,063,000, down 28.0% from HKD 9,795,000 in the previous year[135]. - Interest income from margin clients was HKD 4,424,000, a decline of 45.0% from HKD 8,164,000 in the prior year[135]. Cost Management - The group implemented cost control measures, reducing total costs and expenses from approximately HKD 30.3 million in the previous year to about HKD 21.5 million, a decrease of about 29.0%[12]. - Other operating expenses decreased by approximately 18.1% to about HKD 5.7 million, primarily due to reduced marketing and sponsor expenses[35]. - Employee costs decreased by approximately 31.9% to about HKD 15.0 million, mainly due to the impact of the share option plan adopted in 2018[38]. - Employee costs for the period were approximately HKD 15.0 million, a decrease of about 31.9% from approximately HKD 22.0 million in the same period last year[49]. Assets and Liabilities - As of August 31, 2023, the company's net current assets were approximately HKD 210.9 million, up from approximately HKD 200.7 million on February 28, 2023, with a current ratio of approximately 3.06 times[40]. - The company had no debt as of August 31, 2023, resulting in a debt-to-equity ratio of zero[40]. - The company’s total liabilities increased to HKD 102,396,000 as of August 31, 2023, compared to HKD 98,571,000 as of February 28, 2023[117]. - Total accounts receivable decreased to HKD 45,851,000 as of August 31, 2023, down from HKD 87,138,000 as of February 28, 2023[159]. - The company has HKD 18,236,000 in total loans receivable, an increase from HKD 15,511,000 as of February 28, 2023[165]. Investments - The company holds significant investments valued at approximately HKD 60.9 million as of August 31, 2023, with major investments including a 5.85% stake in Taizhou Water Group valued at HKD 33.3 million and a 9.28% stake in Dream East Group valued at HKD 26.5 million[53]. - The company received dividends of approximately HKD 858,000 from Taizhou Water Group during the period[58]. - Taizhou Water Group reported revenue of approximately RMB 280.3 million for the six months ended June 30, 2023, representing an increase of approximately 18.8% compared to the same period in 2022[55]. - Dream East Group recorded revenue of approximately HKD 25.1 million for the year ended December 31, 2022, a decrease of about 51.0% compared to the previous year[59]. Market Conditions - The global economic environment showed signs of recovery, but concerns over geopolitical issues and inflation pressures persisted during the period[13]. - The Hang Seng Index fell by approximately 10.9% during the period, closing at 18,382 points[17]. - The total amount raised by new listings on the Hong Kong Stock Exchange decreased by approximately 65.6% to about HKD 16.9 billion compared to the same period last year[17]. Risk Management - The group has established risk management strategies to balance risk and return, focusing on minimizing adverse impacts on operating performance[194]. - The company employs a prudent approach to credit risk management, regularly revising its credit policies to adapt to changes in the business, economic, regulatory, and market conditions[198]. - The company has established a formal loan policy with clear credit review assessments to determine interest rates and terms based on clients' performance and creditworthiness[199]. Shareholder Information - The total issued and paid-up share capital remained stable at HKD 4,000,000 as of both February 28, 2023, and August 31, 2023, with 400,000,000 shares issued[180]. - The major shareholder, Baiyang International Investment Limited, holds 300,000,000 shares (75%) and is linked to Mr. Chung Chi Man, who is the beneficial owner[91]. - The company has a non-competition agreement in place with its controlling shareholders, effective from September 14, 2018[84]. Corporate Governance - The audit committee was established on August 24, 2018, consisting of three members, with Ms. Chan Ka Lee as the chairperson, ensuring compliance with listing rules and corporate governance codes[79]. - All directors confirmed compliance with the standard code of conduct regarding securities trading during the reporting period[81]. - No conflicts of interest have been reported between the company and its directors or controlling shareholders during the reporting period[85].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 INNOVAX HOLDINGS LIMITED 創 陞 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號： 2680） 截至2023年8月31日止六個月之 中期業績公告 創陞控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其附屬公司 （「本集團」）截至2023年8月31日止六個月（「本期間」）之未經審核簡明綜合業績，連同截至 2022年8月31日止六個月（「去年同期」）之比較數字如下： 財務摘要 截至以下日期止六個月 2023年 2022年 8月31日 8月31日 （未經審核） （未經審核） 千港元 千港元 收益總額 12,005 18,044 期內溢利╱（虧損）及全面收益╱（開支）總額 9,347 (9,339) ...

Financial Performance - Total revenue increased by approximately 30.3% to about HKD 45.5 million from approximately HKD 35.0 million in the previous year[13] - The total loss and comprehensive expenses amounted to approximately HKD 6.6 million, significantly improved from approximately HKD 22.5 million in the previous year[13] - Total revenue increased from approximately HKD 35.0 million to approximately HKD 45.5 million, representing a growth of about 30.3%[21] - Revenue from corporate finance advisory services rose by approximately 17.8% to about HKD 17.4 million, compared to approximately HKD 14.8 million in the previous year[23] - The company reported a loss of approximately HKD 6.6 million, significantly improved from a loss of about HKD 22.5 million in the previous year[22] - The group reported a total loss of approximately HKD 6.6 million for the year, a significant improvement from a loss of HKD 22.5 million in 2022, driven by a 65.3% increase in total revenue[43] Revenue Sources - The company participated in 12 IPO sponsorship projects, generating revenue of approximately HKD 11.1 million, up from about HKD 6.4 million in the previous year[24] - The company completed 5 placement and underwriting projects, with revenue of approximately HKD 9.5 million, compared to about HKD 4.2 million in the previous year[29] - Commission income from securities trading and brokerage services was approximately HKD 3.1 million, an increase from about HKD 1.9 million in the previous year[30] - Interest income from securities financing services was approximately HKD 14.8 million, compared to about HKD 13.4 million in the previous year[31] - Revenue from asset management services for the year was approximately HKD 455,000, down from HKD 553,000 in 2022[32] - Interest income from lending services rose significantly to approximately HKD 163,000 in 2023 from HKD 21,000 in 2022, representing about 0.36% of total revenue[36] Economic Environment - The global economic environment remained unstable, with significant impacts from the COVID-19 pandemic and geopolitical tensions, affecting supply chains and increasing energy prices[8] - The U.S. Federal Reserve raised its benchmark interest rate by a cumulative 450 basis points over eight increases during the year[8] - The Hang Seng Index opened at 22,713 points and closed at 19,786 points, representing a decline of approximately 12.9%[10] - The average daily trading volume in the Hong Kong stock market decreased by about 16.6% to approximately HKD 124.6 billion compared to the previous year[10] - The number of new listings on the Hong Kong Stock Exchange increased by approximately 10.7% to 93 companies, but the total fundraising amount decreased by about 62.9% to approximately HKD 99.3 billion[10] Operational Strategy - The company aims to strengthen risk management and credit control to mitigate potential market and operational risks[21] - The company plans to expand its product range, service scope, and customer base while exploring new business opportunities[21] - The company believes that the development of the Greater Bay Area will provide continuous business opportunities[77] - The company will leverage its overseas resources and collaborate with professionals to develop cross-border business[77] - The company is focused on expanding its asset management business, which is overseen by its investment director[90] Employee and Management - The company granted 40,000,000 employee stock options on March 9, 2022, resulting in a non-cash employee cost increase of approximately HKD 6.7 million[13] - Employee costs for the year amounted to approximately HKD 41.4 million, representing a growth of about 10.7% compared to HKD 37.4 million in 2022, primarily due to stock option grants leading to a recognition of approximately HKD 6.7 million in share-based payments[55] - The company employed 35 staff members as of February 28, 2023, unchanged from the previous year[119] - The management team has extensive experience in the financial and securities industry, with key members having over 40 years and 29 years of experience respectively[88][90] Compliance and Governance - The company emphasizes compliance with relevant laws and regulations, which is critical for achieving business success[101] - The company has a dedicated compliance and operational management team to ensure regulatory adherence[94] - The company confirmed compliance with all relevant laws and regulations, with no significant violations reported during the year[108] - The company has adhered to the corporate governance code as outlined in the listing rules throughout the year[175][176] Shareholder Information - The controlling shareholder, Mr. Zhong Zhiwen, holds 300,000,000 shares, representing 75% of the company[145] - Major shareholders include Baoyang with 300,000,000 shares, representing 75% ownership[149] - The total number of issued shares as of February 28, 2023, is 400,000,000[151] - The company has a share option plan allowing for the issuance of up to 40,000,000 shares, which is 10% of the total issued shares at the time of listing[154] Future Outlook - The company maintains a cautiously optimistic outlook for the next fiscal year, despite ongoing challenges in the operating environment[76] - The group remains optimistic about the long-term development of the water supply industry and the future prospects of Taizhou Water Group[61] Miscellaneous - The company did not recommend any dividend payment for the year, consistent with the previous year where no dividend was declared[113] - The board has decided not to declare any final dividend for the year, consistent with the previous year[66] - There have been no significant adverse changes in the financial and trading conditions of the group since February 28, 2023[73] - The company has not made any charitable donations during the year, maintaining a record of zero donations[169]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 INNOVAX HOLDINGS LIMITED 創 陞 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號： 2680） 截至2023年2月28日止年度之年度業績公告 創陞控股有限公司（「本公司」）董事（「董事」）會（「董事會」）向其股東欣然提呈本公司及其附 屬公司（「本集團」）之綜合業績（摘錄自截至2023年2月28日止年度（「本年度」）之經審核綜合 財務報表），連同截至2022年2月28日止年度之比較數字如下： 財務摘要 截至以下日期止年度 2023年 2022年 2月28日 2月28日 千港元 千港元 收益總額 45,535 34,955 年內虧損及全面開支總額 (6,577) (22,517) 每股虧損 ...

Financial Performance - The group recorded revenue of approximately HKD 18.0 million for the six months ended August 31, 2022, a slight decrease of about 0.3% compared to HKD 18.1 million in the same period of 2021[9]. - The group incurred a loss of approximately HKD 9.4 million during the period, compared to a loss of about HKD 2.0 million in the same period of 2021, primarily due to a 30.6% increase in employee costs[9]. - The company reported a pre-tax loss of HKD 9,339,000, compared to a pre-tax loss of HKD 1,974,000 in the previous year, indicating a significant increase in losses[101]. - Basic and diluted loss per share was HKD 2.33, compared to HKD 0.49 in the same period last year, reflecting a worsening financial performance[101]. - The company experienced a total comprehensive loss of HKD 9,339,000 for the period, compared to a loss of HKD 1,974,000 in the previous year, reflecting a deterioration in financial performance[106]. Revenue Breakdown - Revenue from corporate finance, placement and underwriting, and asset management decreased by approximately 3.5%, 59.3%, and 17.7% respectively, while income from securities financing and brokerage services increased[9]. - Revenue from IPO sponsorship services was approximately HKD 4.6 million, an increase from HKD 3.8 million in the same period of 2021[15]. - The group’s asset management revenue decreased due to a reduction in the scale of managed assets[9]. - Revenue from compliance advisory services was approximately HKD 1.2 million, a decrease from HKD 2.7 million for the six months ended August 31, 2021[18]. - Revenue from placement and underwriting services was approximately HKD 0.9 million, compared to HKD 2.3 million for the six months ended August 31, 2021[19]. Market Conditions - The average daily trading volume in the Hong Kong stock market decreased by approximately HKD 824 billion, from HKD 1,748 billion in March 2022 to HKD 924 billion in August 2022[10]. - The total amount raised from IPOs in Hong Kong dropped significantly from approximately HKD 271.4 billion to about HKD 56.2 billion, a decline of approximately HKD 215.2 billion[10]. - The geopolitical tensions and inflationary pressures have created significant uncertainty in the macroeconomic environment, impacting the group's operations[13]. - The economic environment remains volatile due to the fifth wave of the pandemic and instability in international financial markets, with expectations of a global recession in 2023[59]. Employee and Operational Costs - Administrative and operating expenses increased by approximately 53.6% to about HKD 7.0 million, up from HKD 4.5 million for the six months ended August 31, 2021[29]. - As of August 31, 2022, the group employed 34 staff members, with employee benefits expenses amounting to approximately HKD 22.0 million, an increase of about 30.4% compared to HKD 16.8 million for the six months ended August 31, 2021[43]. - Employee costs for the six months ended August 31, 2022, totaled HKD 21,969,000, an increase of 30.5% from HKD 16,826,000 in the same period of 2021[10][12]. Investments and Assets - The group held significant investments valued at approximately HKD 43.8 million, with a notable investment in Taizhou Water Group Co., Ltd. representing 5.85% ownership and a fair value of HKD 36.39 million, accounting for 10.94% of total assets[45]. - The company’s total assets as of August 31, 2022, amounted to HKD 332,518,000, an increase from HKD 303,337,000 as of February 28, 2022[103]. - The company’s cash and bank balances increased to HKD 71,071,000 from HKD 58,826,000, enhancing its cash position[103]. Share Capital and Dividends - No interim dividend was declared for the six months ended August 31, 2022, consistent with the previous period[54]. - The total number of shares issued as of the report date is 400,000,000 shares[75]. - The company’s share capital remained constant at HKD 4,000,000 as of both March 1, 2022, and August 31, 2022[106]. Risk Management and Compliance - The group is focused on risk management processes, including risk identification, assessment, and control measures[51]. - The board confirmed compliance with the corporate governance code as of August 31, 2022[62]. - The controlling shareholder has confirmed adherence to the non-competition agreement throughout the period and up to the report date[70]. Cash Flow and Financing Activities - As of August 31, 2022, the company reported a net cash inflow from operating activities of HKD 13,532,000, a significant improvement from a cash outflow of HKD 14,292,000 in the same period of 2021[108]. - The company’s financing activities resulted in a net cash outflow of HKD 993,000, a decrease from HKD 1,179,000 in the previous year, indicating improved cash management in financing[108].

Financial Performance - The total loss and comprehensive expenses for the year amounted to approximately HKD 22.5 million, a decrease of about 1,046.09% compared to a profit of approximately HKD 2.4 million in 2021, primarily due to a revenue decrease of approximately 58.2%[27]. - Total revenue decreased from approximately HKD 83.7 million for the year ended February 28, 2021, to approximately HKD 35 million for the year ended February 28, 2022, reflecting a decline of approximately 58.2%[28]. - Revenue from corporate finance advisory services decreased by approximately 61.2% from about HKD 38.2 million in 2021 to approximately HKD 14.8 million in 2022[29]. - Revenue from initial public offering (IPO) sponsorship services was approximately HKD 6.4 million in the current year, down from HKD 23.4 million in 2021[32]. - Revenue from financial advisory and independent financial advisory services decreased to approximately HKD 3.5 million from HKD 8 million in the previous year[33]. - Revenue from compliance advisory services was approximately HKD 4.9 million, down from HKD 6.9 million in 2021[34]. - The company completed 8 placement and underwriting projects in the current year, generating approximately HKD 4.2 million in revenue, a significant decrease from HKD 33.6 million in 2021[37]. - The group's revenue decreased by 58.2% to approximately HKD 35 million for the year, down from HKD 83.7 million in 2021, primarily due to delays in IPO sponsorship projects caused by sporadic COVID-19 outbreaks in Hong Kong[45]. - The loss attributable to the company's owners for the year was approximately HKD 22.5 million, compared to a profit of HKD 2.4 million in 2021, resulting from the decrease in revenue[46]. Market Conditions - The total market capitalization decreased from HKD 529.416 billion in February 2021 to HKD 408.890 billion in February 2022[18]. - The Hang Seng Index dropped from a high of 31,085 points on February 17, 2021, to a low of 22,713 points on February 28, 2022[18]. - The business environment in Hong Kong remains challenging due to ongoing COVID-19 impacts and geopolitical tensions from the Ukraine war, leading to a cautious attitude among clients and investors[85]. - Inflation has surged, contributing to uncertainties in the securities market, with economic recovery in Hong Kong and globally expected to be slow in the short term[85]. Company Strategy and Outlook - The company aims to maintain healthy growth in existing businesses while developing new lending services[22]. - The company plans to regularly review business strategies and prudently control costs in response to market conditions[22]. - The company believes that the current macroeconomic downturn will eventually turn around, leading to long-term positive development for its existing businesses[22]. - The company is focused on creating wealth for clients through innovative thinking[22]. - The company has initiated a lending business this year, which has shown promising beginnings, and will continue to invest resources in this area while enhancing credit risk management[85]. - The company maintains an optimistic long-term outlook for the Hong Kong financial market and economy, viewing it as a crucial gateway to the Chinese stock market[85]. - The company plans to closely monitor market conditions and adjust business strategies prudently and timely in response to the unclear economic outlook[85]. Revenue Diversification - The company has diversified its revenue sources by maintaining equity investments and expanding lending operations[21]. - The lending service division generated revenue of HKD 21,000 for the year, compared to zero in 2021, with plans to enhance loan approvals and development in this area[42]. Operational Efficiency - Other operating expenses decreased by approximately 37.5% to about HKD 10.7 million from approximately HKD 17.1 million in the previous year, mainly due to reduced bad debt expenses[47]. - Employee costs decreased by approximately 48.5% to about HKD 37.4 million from approximately HKD 72.6 million in the previous year, attributed to a reduction in the number of employees and discretionary bonuses[48]. - As of February 28, 2022, the group's net current assets were HKD 205.8 million, down from HKD 223.5 million in 2021, with a current ratio of 3.17, compared to 2.27 in the previous year[49]. - The group had no debt as of February 28, 2022, resulting in an asset-to-liability ratio of approximately zero[49]. Corporate Governance - The company has a strong commitment to corporate governance, with several senior members being active in professional accounting and governance organizations[99][105]. - The company emphasizes the importance of risk management and compliance in its operations, ensuring adherence to regulatory standards[109]. - The company has confirmed that all independent non-executive directors are independent from the company[147]. - The board consists of five directors, including two executive directors and three independent non-executive directors[194]. - The company has established service contracts with all executive directors and appointment letters with independent non-executive directors[196]. - The company has adhered to the principles and code provisions of the corporate governance code throughout the year[193]. Investment and Shareholder Information - As of February 28, 2022, the controlling shareholder, Mr. Zhong, holds 300,000,000 shares, representing 75% of the company's equity[165]. - As of February 28, 2022, the total number of issued shares was 400,000,000[167]. - The company raised approximately HKD 158 million from its initial public offering, with about 98.8% (HKD 156.15 million) utilized by February 28, 2022[183]. - The stock option plan allows for the issuance of up to 40,000,000 shares, representing 10% of the total issued shares at the time of listing[174]. - The group did not declare any dividends for the fiscal year ending February 28, 2022, consistent with the previous year[132]. - The group has not issued any debt securities during the fiscal year and up to the date of the report[130].