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].

Financial Performance - Total revenue decreased from approximately HKD 20.8 million to about HKD 18.1 million, representing a decline of approximately 13% due to COVID-19 impacts[9]. - The company recorded a loss of approximately HKD 2.0 million, significantly reduced from a loss of about HKD 6.6 million in the previous period[9]. - Revenue decreased by 13% to HKD 18.1 million, down from HKD 20.8 million in the previous period, primarily due to delays in IPO sponsorship projects caused by the pandemic[27]. - The company reported a loss before tax of HKD 1,974,000, compared to a loss of HKD 6,646,000 in the previous year, indicating an improvement in performance[87]. - Basic and diluted loss per share was HKD 0.49, an improvement from HKD 1.66 in the prior year[87]. - The company reported a loss attributable to owners of HKD 1,974,000 for the six months ended August 31, 2021, compared to a loss of HKD 6,646,000 for the same period in 2020, indicating a significant improvement in performance[133]. Revenue Breakdown - Revenue from corporate finance advisory services dropped approximately 41.9% from about HKD 13.6 million to approximately HKD 7.9 million[14]. - Revenue from IPO sponsorship services was approximately HKD 3.8 million, down from HKD 6.4 million in the previous period[16]. - Revenue from financial advisory and independent financial advisory services was approximately HKD 1.5 million, down from HKD 3.7 million in the previous period[17]. - Corporate finance advisory service income decreased to HKD 7,915,000 from HKD 13,566,000, representing a decline of 41.7%[111]. - Interest income from margin clients significantly increased to HKD 6,716,000, up from HKD 2,997,000, marking a growth of 123.5%[113]. Project Participation - The company participated in 42 corporate finance advisory projects during the period, down from 57 projects in the same period last year[14]. - The company participated in 16 IPO sponsorship projects during the period, with no projects completed[16]. - The company participated in 14 compliance advisory projects during the period, down from 20 projects in the previous period, generating advisory income of approximately HKD 2.7 million[20]. Employee Costs - The overall employee costs decreased by approximately 50% due to reduced salary expenses and discretionary bonuses[9]. - Employee costs decreased by approximately 50% to HKD 16.8 million, down from HKD 33.6 million in the previous period, due to overall reductions in salary and discretionary bonuses[30]. - As of August 31, 2021, the group employed 38 staff members, with employee benefits expenses amounting to approximately HKD 16.8 million, a decrease of about 50% compared to HKD 33.6 million for the six months ended August 31, 2020[43]. Assets and Liabilities - As of August 31, 2021, the company's current assets net value was HKD 223.4 million, with a current ratio of 2.95, up from 2.27 in the previous period[31]. - The company had no outstanding debts as of August 31, 2021, resulting in a zero debt-to-equity ratio[31]. - Current assets totaled HKD 337,886,000, down from HKD 399,755,000, a decrease of 15.5%[89]. - Total assets amounted to HKD 343,574,000, compared to HKD 408,032,000, representing a decline of 15.7%[89]. - Current liabilities decreased to HKD 114,446,000 from HKD 176,241,000, a reduction of 35.0%[89]. Cash Flow and Investments - Operating cash used for the six months ended August 31, 2021, was HKD (14,292) thousand, a significant improvement from HKD (52,337) thousand in 2020, representing a reduction of approximately 72.7%[95]. - Cash and cash equivalents decreased by HKD (15,475) thousand for the six months ended August 31, 2021, compared to a decrease of HKD (52,807) thousand in 2020, showing a reduction of approximately 70.7%[95]. - The company’s bank cash balance at the end of the period was HKD 47,665 thousand, up from HKD 42,510 thousand in 2020, reflecting an increase of approximately 12.7%[95]. - The group held equity investments with a total carrying value of approximately HKD 58.8 million as of August 31, 2021, including a 5.99% stake in Taizhou Water Group, valued at HKD 39.514 million, representing 11.50% of total assets[45]. Market Conditions and Outlook - The ongoing emergence of new COVID-19 variants and tensions between China, the US, and the EU have created an uncertain global economic outlook[59]. - The group anticipates a gradual market recovery, believing it can provide more comprehensive services to clients and achieve satisfactory results across its business segments[60]. - The group remains optimistic about the long-term development of the water supply industry and the future prospects of Taizhou Water Group[48]. Governance and Compliance - The company has complied with the corporate governance code as of August 31, 2021, and continues to adhere to the relevant regulations[62]. - The audit committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ended August 31, 2021[65]. - The controlling shareholder has confirmed compliance with the non-competition agreement throughout the reporting period[73]. Risk Management - The group has established a credit risk management framework to monitor and control credit risks associated with its receivables and loan commitments[191]. - The group’s risk management strategy focuses on balancing risk and return while minimizing adverse impacts on operational performance[187]. - The group continuously monitors credit risk and has identified key drivers of credit risk and credit loss for its financial instrument portfolios[195].

Financial Performance - The company's asset management revenue doubled from HKD 717,000 in 2020 to approximately HKD 1.5 million in the current year[11]. - Interest income from securities financing services increased by 85.8% from HKD 4.2 million to HKD 7.9 million[11]. - The company's net profit after tax rose from HKD 1.6 million in 2020 to HKD 2.4 million in the current year[11]. - Total profit and comprehensive income increased by approximately 48.1% from about HKD 1.6 million in the year ended February 29, 2020, to about HKD 2.4 million in the year ended February 28, 2021[18]. - Total revenue decreased by approximately 13.4% from about HKD 96.7 million in the year ended February 29, 2020, to about HKD 83.7 million in the year ended February 28, 2021[18]. - Revenue from the asset management services segment grew over 100% from about HKD 717,000 in 2020 to about HKD 1.5 million in 2021, driven by increased performance fee income[19]. - Revenue from corporate finance advisory services decreased by approximately 26.5% from about HKD 52.0 million in 2020 to about HKD 38.2 million in 2021[20]. - Revenue from IPO sponsorship services was approximately HKD 23.4 million in the current year, down from HKD 37.3 million in the previous year[24]. - The profit attributable to the company's owners for the year was approximately HKD 2.4 million, an increase from HKD 1.6 million in 2020, driven by higher other income including investment dividends and government subsidies related to COVID-19[37]. Market Trends and Business Strategy - The average daily trading volume in the Hong Kong stock market increased by 103% to HKD 161.3 billion in November 2020 compared to HKD 79.6 billion in the same period last year[9]. - The company plans to diversify its income sources by developing a lending business through Innovax Credit Limited[14]. - The company aims to maintain balanced development across its business segments while remaining vigilant to market trends[14]. - The geopolitical tensions between the US and China are expected to continue impacting the business environment in Hong Kong[14]. - The company anticipates more companies, particularly new economy enterprises from China, to consider Hong Kong for their listings due to enhanced market attractiveness[14]. - The company is focused on becoming a comprehensive platform for providing financing and securities services to clients[14]. Operational Efficiency and Cost Management - Administrative and operating expenses increased by approximately 14.1% to about HKD 21.1 million from HKD 18.5 million in the previous year, mainly due to the expansion of the placement and underwriting business[38]. - Employee costs rose by approximately 2.4% to about HKD 72.6 million from HKD 70.9 million in the previous year, attributed to overall salary increases and discretionary bonuses[39]. - The company aims to improve operational efficiency, targeting a 5% reduction in costs through process optimization[80]. Investments and Financial Position - The group had no debt as of February 28, 2021, resulting in an asset-to-liability ratio of approximately zero[40]. - The group held significant investments valued at approximately HKD 57.7 million as of February 28, 2021, with a notable investment in Taizhou Water Group, representing 6.06% ownership[56]. - The total outstanding margin loan balance was approximately HKD 98.1 million as of February 28, 2021, compared to HKD 68.8 million as of February 29, 2020[31]. - The managed assets of Innovax Alpha SPC — Innovax Balanced Fund SP were approximately USD 4.47 million (about HKD 34.53 million) as of February 28, 2021, compared to about USD 3.87 million (about HKD 30.05 million) in the previous year[32]. Corporate Governance and Compliance - The company has adopted the standard code of conduct for securities trading by directors, ensuring compliance throughout the year[187]. - The board consists of five directors, including two executive directors and three independent non-executive directors, ensuring compliance with listing rules[178]. - The audit committee, established on August 24, 2018, consists of three independent non-executive directors, ensuring compliance with listing rules and corporate governance standards[199]. - The company confirmed compliance with applicable laws and regulations without any significant violations during the year[113]. Future Outlook and Growth Initiatives - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 20%[80]. - New product launches are expected to contribute an additional $50 million in revenue over the next year[80]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of the next fiscal year[80]. - A strategic acquisition of a fintech startup was completed, valued at $30 million, aimed at enhancing technological capabilities[80]. - Research and development expenses increased by 18%, focusing on innovative financial solutions[80]. - The company plans to enhance its digital platform, with an investment of $10 million allocated for upgrades[80]. Employee Relations and Stakeholder Engagement - The group emphasizes sustainable operations and maintains strong relationships with stakeholders, including employees and clients, to achieve business objectives[109]. - There were no significant disputes with employees or clients during the fiscal year ending February 28, 2021, indicating stable operational relations[111]. - The group employed 41 staff members as of February 28, 2021, down from 47 in the previous year[127]. Shareholder Information and Equity Structure - The controlling shareholder, Mr. Zhong Zhiwen, holds 300,000,000 shares, representing 75% of the company's equity as of February 28, 2021[151]. - The total number of issued shares as of February 28, 2021, is 400,000,000[153]. - The company has a stock option plan allowing for the issuance of up to 40,000,000 shares, representing 10% of the shares issued at the time of listing[160]. - The company has confirmed that there are no competing businesses owned by directors or controlling shareholders as of February 28, 2021[144].

Financial Performance - The total revenue of the group decreased from approximately HKD 433 million for the six months ended August 31, 2019, to about HKD 208 million for the current period, representing a decline of approximately 52.0% due to delays in IPO sponsorship projects caused by the COVID-19 pandemic [8]. - The company's revenue decreased by 52.0% to approximately HKD 20.8 million for the period ending August 31, 2020, compared to HKD 43.3 million for the same period in 2019, primarily due to delays in IPO sponsorship projects caused by the pandemic [28]. - Total revenue for the six months ended August 31, 2020, was HKD 20,771,000, a decrease of 52% compared to HKD 43,320,000 for the same period in 2019 [99]. - The company reported a pre-tax loss of HKD 6,646,000, compared to a pre-tax loss of HKD 2,730,000 in the previous year, indicating a worsening financial performance [99]. - Basic loss per share increased to HKD 1.66 from HKD 0.58 year-on-year, reflecting a significant decline in profitability [99]. - The company reported a loss before tax of HKD 1,917,000 for the six months ended August 31, 2020, compared to a profit of HKD 1,000,000 in the previous year [147]. Economic Environment - The unemployment rate in Hong Kong rose to 6.2%, reaching a 15-year high, as small businesses struggled during the economic downturn [9]. - The GDP of Hong Kong significantly declined by 9.0% year-on-year in the second quarter of 2020, following a 9.1% drop in the previous quarter [9]. - The Federal Reserve implemented substantial monetary stimulus measures, including asset purchases and interest rate cuts, to combat the economic impact of the pandemic [12]. - The People's Bank of China reduced the one-year and five-year loan prime rates to 3.85% and 4.65%, respectively, in response to the economic crisis [12]. Corporate Activities - The group aims to establish a comprehensive platform to provide various financial and securities services, including corporate finance advisory and asset management [7]. - The group operates through four licensed subsidiaries, providing services in securities trading, futures contract trading, and asset management [7]. - The company participated in 57 corporate finance advisory projects during the period, including 27 IPO sponsorship projects, compared to 64 projects in the same period of 2019 [14]. - The company completed 6 placement and underwriting projects during the period, generating approximately HKD 3.0 million in income, compared to HKD 18.7 million for the same period in 2019 [21]. Revenue Breakdown - The income from corporate finance advisory services dropped approximately 29.9% from about HKD 19.4 million for the period ending August 31, 2019, to about HKD 13.6 million for the period ending August 31, 2020 [14]. - The income from IPO sponsorship services was approximately HKD 6.4 million for the period, down from about HKD 13.7 million for the same period in 2019 [18]. - The number of corporate fundraising transactions in Hong Kong decreased to approximately 108 during the period, a decline of about 27.5% from approximately 149 transactions in the same period of 2019 [15]. - Revenue from corporate finance advisory services decreased to HKD 13,566,000, down 30% from HKD 19,352,000 year-over-year [127]. Operational Metrics - The total outstanding margin loan balance was HKD 74.8 million as of August 31, 2020, an increase from HKD 68.8 million as of February 29, 2020 [25]. - Administrative and operating expenses decreased by approximately 42.4% to about HKD 5.3 million for the period, down from approximately HKD 9.2 million for the same period in 2019 [30]. - Employee costs decreased by approximately 12.3% from HKD 38.3 million to HKD 33.6 million due to overall reduction in salary increases and discretionary bonuses [33]. - The company’s total expenses decreased to HKD 39,170,000 from HKD 47,734,000, reflecting cost-cutting measures [99]. Assets and Liabilities - As of August 31, 2020, the group's current assets net value was HKD 214.9 million, with a current ratio of 3.05 times [34]. - The group had zero debt as of August 31, 2020, resulting in an asset-to-liability ratio of approximately zero [35]. - The company’s total assets as of August 31, 2020, amounted to HKD 327,541,000, with current assets totaling HKD 319,583,000 [103]. - The company’s cash and bank balances decreased to HKD 44,542,000 from HKD 145,667,000 year-on-year, indicating liquidity challenges [107]. Investments - The group held significant investments valued at approximately HKD 58.4 million as of August 31, 2020 [51]. - The investment in Taizhou Water Group accounted for 15.8% of the group's total assets, with an unrealized gain of HKD 5.628 million [51]. - Taizhou Water Group reported total revenue of approximately RMB 224.5 million for the six months ended June 30, 2020, with a net profit attributable to owners of RMB 43.6 million [52]. Future Outlook - The company expects a V-shaped economic recovery in the Chinese market, driven by the growth of new economy companies like Tencent and Alibaba [67]. - The group maintains a positive outlook on the long-term development of the water supply industry, reflecting optimism for Taizhou Water Group's future prospects [53]. - The company aims to diversify its revenue sources and risks while strengthening its corporate finance advisory services [68]. Compliance and Governance - The company has adopted the standard code of conduct for securities trading as per the listing rules, with all directors confirming compliance during the reporting period [76]. - The company has established a non-competition agreement with its major shareholders to prevent competition in related business areas [80][81]. - The board confirmed that there were no significant adverse changes in the financial and trading conditions of the group as of August 31, 2020 [64]. - The audit committee has reviewed the unaudited interim financial statements for the six months ended August 31, 2020 [74].

Business Growth and Market Expansion - The company reported a moderate growth in its other business segments despite the adverse impact of market volatility on its corporate finance advisory services[15]. - As of February 29, 2020, the company has maintained business growth amidst unprecedented market challenges due to the COVID-19 pandemic[15]. - The company plans to expand its operations into the Greater Bay Area and Yangtze River Delta, focusing on "new economy" sectors such as 5G, artificial intelligence, biotechnology, and healthcare[19]. - The company aims to recruit more experienced industry professionals to enhance its capabilities in emerging sectors and online consumption[19]. - The company is focused on maintaining operational continuity and synergy while exploring new market opportunities to create win-win outcomes for clients and itself[19]. - The company expects to maintain strong revenue growth and establish a solid customer base in the industry, particularly in the Greater Bay Area[88]. - The company plans to explore opportunities for building platforms for clients and investors in China, Macau, and Hong Kong over the next few years[88]. Financial Performance - Total revenue increased from approximately HKD 85.2 million for the year ended February 28, 2019, to approximately HKD 96.7 million for the year ended February 29, 2020, representing a growth of about 13.5%[28]. - The number of securities accounts increased by approximately 28%, expanding the company's customer base and increasing commission income from securities trading[28]. - The interest income from the securities financing division surged from HKD 299,000 to HKD 4.2 million, a growth of approximately 1,300%[28]. - The revenue from placement and underwriting services more than doubled compared to the same period last year, indicating strong performance in this segment[28]. - The company participated in 74 corporate finance advisory projects during the year, including 35 IPO sponsorship projects, reflecting active engagement in the market despite challenges[31]. - The revenue from IPO sponsorship services for the year was approximately HKD 37.3 million, a decrease from HKD 53.6 million in 2019, with participation in 35 IPO projects compared to 39 in the previous year[34]. - Revenue from financial advisory and independent financial advisory services was approximately HKD 5.8 million, slightly up from HKD 5.5 million in 2019, with participation in 5 financial advisory projects and 11 independent advisory projects[35]. - Compliance advisory services generated revenue of approximately HKD 8.9 million, an increase from HKD 7.7 million in 2019, with 23 compliance advisory projects completed[36]. - Revenue from placement and underwriting services was approximately HKD 34.5 million, significantly up from HKD 14 million in 2019, with 5 completed projects compared to 8 in the previous year[39]. - The total revenue for the year increased by 13.5% to approximately HKD 96.7 million, driven by growth in placement and underwriting, securities trading, and financing services[45]. - The net profit attributable to the company's owners for the year was approximately HKD 1.6 million, down from HKD 12.3 million in 2019, primarily due to increased employee costs and administrative expenses[46]. Operational Challenges and Market Conditions - The company anticipates that the quantitative easing and economic stimulus measures implemented by various countries will stimulate global capital markets post-pandemic, potentially leading to increased IPO and fundraising activities[18]. - The company recognizes the ongoing uncertainty regarding the pandemic's impact on the global economy, which may delay IPO timelines and fundraising activities[18]. - The macroeconomic outlook remains uncertain, with China's economy contracting by 6.8% in Q1 2020, and the Hong Kong stock market expected to remain volatile[86]. - The Hong Kong stock market's fundraising total decreased by 16.52% from HKD 5,441.3 million in 2018 to HKD 4,543.5 million in 2019, indicating a cautious investment atmosphere[33]. - The average daily trading volume in the Hong Kong stock market increased by 14% in the first two months of 2020 compared to the same period last year, reaching HKD 1,095 billion[25]. Cost Management and Financial Health - Administrative and operating expenses increased by approximately 25.9% to about HKD 18.5 million, attributed to the expansion of placement and underwriting services and rising legal and professional fees[47]. - Employee costs rose approximately 61.5% to about HKD 70.9 million, due to overall salary increases and discretionary bonuses[48]. - As of February 29, 2020, the group's current assets were valued at HKD 221.3 million, with a current ratio of 4.09, down from 5.63 in the previous year[49]. - The group had zero debt as of February 29, 2020, resulting in a debt-to-equity ratio of zero[50]. - The company has no stock options granted under the share option plan for the year[58]. - The group holds significant investments with a total book value of approximately HKD 43.56 million as of February 29, 2020[65]. - The group holds a 5.22% equity stake in Taizhou Water Group, with a fair value of HKD 37.08 million as of February 29, 2020[66]. Governance and Compliance - The company operates as a comprehensive financial services provider, regulated under the Securities and Futures Ordinance in Hong Kong, covering activities such as securities trading, futures contract trading, and asset management[116]. - The management team has extensive experience, with Mr. Su having over 30 years in the financial and securities industry, and Mr. Li having over 20 years in finance and asset management[106][108]. - The company has three licensed subsidiaries, including Chuangshang Financing Limited, Chuangzuo Securities Limited, and Chuangzuo Asset Management Limited, which are involved in various regulated activities[116]. - The board of directors is committed to presenting comprehensive financial reports, ensuring transparency and accountability to stakeholders[115]. - The company has a strong governance structure, with a dedicated company secretary responsible for managing corporate governance matters[112]. - The company has adhered to the corporate governance code and principles throughout the reporting period[190]. - The board consists of six directors, including two executive directors and four independent non-executive directors[191]. - The company has received written confirmations of independence from all independent non-executive directors as per listing rules[198]. Future Outlook and Strategic Plans - The company is poised to make prudent investments to capitalize on opportunities arising from recent market conditions[87]. - The company has maintained the initial allocation of HKD 9.75 million for establishing new funds to strengthen its asset management business[82]. - The board believes that the reallocation of net proceeds will allow for more effective financial resource management, benefiting the company and its shareholders[83]. - The company has established a lending business, "Creative Credit Limited," which is expected to provide new revenue streams upon obtaining the necessary licenses[87]. - The company has decided to slow down the recruitment of its corporate finance and asset management teams due to the economic downturn, reflecting a conservative approach to resource allocation[82].

Financial Performance - Total revenue increased from approximately HKD 30.0 million for the six months ended August 31, 2018, to approximately HKD 43.3 million for the six months ended August 31, 2019, representing an increase of about 44.3%[9]. - The company incurred a loss of HKD 2.3 million during the period, compared to a profit of HKD 872,000 in the same period of 2018, a decrease of approximately 366.5%[9]. - The company's revenue decreased by approximately 32.4% from about HKD 28.7 million for the six months ended August 31, 2018, to about HKD 19.4 million for the six months ended August 31, 2019[16]. - Total revenue for the six months ended August 31, 2019, was HKD 43,320,000, a decrease from HKD 29,983,000 in the same period last year, representing a year-over-year decline of approximately 44.5%[116]. - The company reported a loss before tax of HKD 2,730,000, compared to a profit of HKD 1,920,000 in the previous year, indicating a significant downturn in financial performance[116]. - Basic earnings per share for the period was HKD -0.58, a decrease from HKD 0.29 in the prior year, reflecting the company's challenging financial situation[116]. - The company reported a net loss of HKD 2,324,000 for the period ending August 31, 2019[121]. Revenue Breakdown - Revenue from initial public offering (IPO) sponsorship services was approximately HKD 13.7 million, down from HKD 20.7 million for the six months ended August 31, 2018[17]. - Revenue from financial advisory and independent financial advisory services was approximately HKD 1.3 million, down from HKD 4.0 million for the six months ended August 31, 2018[20]. - Revenue from compliance advisory services was approximately HKD 4.4 million, slightly up from HKD 4.0 million for the six months ended August 31, 2018[21]. - Revenue from placement and underwriting services was approximately HKD 18.7 million, compared to HKD 18,000 for the six months ended August 31, 2018[22]. - The company generated HKD 19,352,000 from corporate finance advisory services, down from HKD 28,676,000, representing a decline of about 32%[116]. - Securities trading and brokerage services revenue rose to HKD 3,353,000 from HKD 798,000, showing a significant increase of approximately 320%[116]. - Interest income from securities financing services increased to HKD 1,474,000 from HKD 153,000, reflecting a growth of over 865%[116]. Market Conditions - The average daily trading volume of securities increased by 50% to USD 300 million in the first eight months of 2019, compared to USD 200 million in the same period last year[15]. - The Hong Kong stock market's total market capitalization decreased by 6.8% from USD 32.2 trillion at the end of August 2018 to USD 30.0 trillion at the end of August 2019[15]. - The average daily turnover in August 2019 was USD 864 billion, an increase of 25.8% compared to July 2019, but a decrease of 8.4% compared to August 2018[15]. - The Hong Kong economy grew by 0.5% year-on-year in the second quarter of 2019, down from 0.6% in the previous quarter[15]. - The forecast for Hong Kong's economic growth in 2019 was revised down from 2-3% to 0-1% due to unfavorable global and domestic conditions[15]. - The overall economic situation and financial market in Hong Kong remain unclear due to unresolved trade tensions and social unrest, with a significant 40% decrease in tourist arrivals compared to the same period in 2018, marking the largest drop since the SARS outbreak in 2003[64]. IPO Activity - The number of initial public offerings (IPOs) on the Hong Kong Stock Exchange decreased from 100 in the same period of 2018 to 77 in 2019[15]. - The total amount raised from IPOs in Hong Kong from June to August 2019 was USD 5.15 billion, a decrease of 74% compared to USD 19.63 billion in the previous year[15]. - The company participated in 34 IPO sponsorship projects during the period, an increase from 29 projects in the same period last year[17]. Expenses and Costs - Administrative and operating expenses increased by approximately 84% to about HKD 9.2 million from about HKD 5.0 million for the six months ended August 31, 2018[33]. - Employee costs increased by approximately 137.9% to about HKD 38.3 million from about HKD 16.1 million for the six months ended August 31, 2018, due to overall salary increases and bonuses following the company's IPO[36]. - Employee welfare expenses during the period amounted to approximately HKD 38.3 million, an increase of HKD 22.2 million compared to HKD 16.1 million for the six months ended August 31, 2018[50]. Financial Position - As of August 31, 2019, the group's net current assets were HKD 220.8 million, with a current ratio of 4.4 times[37]. - The group had no outstanding debt as of August 31, 2019, resulting in an asset-to-equity ratio of approximately zero[38]. - The total current liabilities were HKD 64,821,000, with accounts payable amounting to HKD 53,721,000[120]. - The total equity as of August 31, 2019, was HKD 224,822,000, down from HKD 227,134,000 at the beginning of the period[121]. - The company raised a net amount of approximately HKD 158 million from its initial public offering, with HKD 136.4 million utilized by August 31, 2019[57]. Corporate Governance and Compliance - The company has adhered to the corporate governance code as outlined in the listing rules throughout the reporting period[73]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[74]. - The company did not grant any stock options under the stock option plan during the period[42]. Accounting Standards - The company has adopted new accounting standards effective from March 1, 2019, which may impact future financial reporting[129]. - The company has adopted Hong Kong Financial Reporting Standard 16 (HKFRS 16) for leases, replacing HKAS 17, which has resulted in significant changes in accounting policies[140]. - The company recognized a lease liability of HKD 2,783,000 related to previously classified operating leases[188]. - The total operating lease commitments disclosed as of February 28, 2019, were HKD 2,934,000, which was adjusted to HKD 2,783,000 after applying the new standard[172].

Company Overview - The company was listed on the Hong Kong Stock Exchange in September 2018, marking a significant milestone and providing a healthier capital base for capital-intensive businesses such as underwriting and securities financing[7]. - The company aims to leverage potential opportunities from external economic and political developments, as well as advancements in new technologies like artificial intelligence, to accelerate its business goals[13]. - The company recognizes the significant potential for cross-border investment and financing opportunities with the development of the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative[13]. - The company will continue to provide comprehensive, professional, advanced, and high-quality financial products and services to clients in Hong Kong and Greater China[13]. - The company emphasizes the importance of risk management, internal controls, and corporate governance to prepare for future challenges and opportunities[9]. - The company expresses gratitude to its management, employees, clients, and shareholders for their support during a period filled with opportunities and challenges[14]. Economic Environment - In 2018, the GDP growth rate in China was 6.6%, the lowest in nearly 30 years, influenced by international trade conflicts and other political issues[7]. - The Hong Kong economy is projected to grow by 2-3% in 2019, with improvements in global liquidity and a halt in the rising interest rate trend creating a more positive environment for economic development[12]. - The global economic outlook remains uncertain, with tensions between the US and China and ongoing Brexit negotiations[76]. Financial Performance - Total revenue increased from approximately HKD 84.4 million for the year ended February 28, 2018, to approximately HKD 85.2 million for the year ended February 28, 2019, representing an increase of about 0.9%[21]. - Revenue from corporate finance advisory services rose significantly by approximately 21.9%, from about HKD 54.8 million in the year ended February 28, 2018, to approximately HKD 66.8 million in the year ended February 28, 2019[25]. - Income from initial public offering (IPO) sponsorship services was approximately HKD 53.6 million for the year, compared to about HKD 48.9 million in the previous year[26]. - Revenue from compliance advisory services increased to approximately HKD 7.7 million, up from about HKD 4.4 million in the previous year[28]. - The group's revenue increased by 0.9% to approximately HKD 85.2 million for the year ended February 28, 2019, compared to HKD 84.4 million in 2018, primarily driven by growth in corporate financing services[38]. - The profit attributable to the owners of the company decreased by 51.6% to approximately HKD 12.3 million due to listing expenses of about HKD 9.6 million, compared to HKD 25.4 million in 2018[41]. Operational Metrics - The average daily turnover of southbound funds under the Stock Connect program was HKD 12.7 billion, representing a year-on-year growth of 29.3%[19]. - The number of companies listed on the main board and GEM increased by 4.5% to approximately 2,300 in 2018[19]. - The group participated in 78 corporate finance advisory projects during the year, including 39 IPO sponsorship projects[25]. - The group had 569 securities accounts at the end of February 28, 2019, compared to 437 accounts at the end of February 28, 2018[33]. - Revenue from placement and underwriting services was approximately HKD 14 million for the year, down from about HKD 25 million in the previous year due to a slight weakness in the Hong Kong stock market[32]. Assets and Liabilities - The group's current assets amounted to HKD 224.8 million as of February 28, 2019, significantly up from HKD 44.4 million in 2018, with a current ratio of 5.63 times[46]. - The bank balance reached approximately HKD 217 million as of February 28, 2019, compared to HKD 56.1 million in 2018, with no bank loans outstanding[46]. - The total outstanding margin loan balance as of February 28, 2019, was approximately HKD 1.8 million, down from HKD 3.9 million in 2018, with interest income from securities financing services amounting to approximately HKD 299,000, compared to HKD 69,000 in 2018[34]. Staffing and Expenses - The group employed 51 staff members as of February 28, 2019, an increase from 43 in 2018, with total employee costs amounting to HKD 43.9 million, down from HKD 44.6 million in 2018[57]. - The group's administrative and operating expenses increased by approximately HKD 6.3 million to about HKD 14.7 million for the year, driven by increased donations, advertising, and promotion expenses[39]. Shareholder Information - The company declared a final dividend of approximately HKD 5.0 million on May 17, 2018, fully paid from internal resources[64]. - For the year ended February 28, 2019, the board did not recommend any dividend payment[65]. - The net proceeds from the IPO raised approximately HKD 158 million, after deducting underwriting fees and other listing expenses[69]. - As of February 28, 2019, approximately 69.7% (HKD 110.2 million) of the raised funds had been utilized for intended purposes[70]. - The company has no major investment or capital asset plans as of February 28, 2019[75]. Corporate Governance - The company is committed to compliance with relevant laws and regulations, ensuring a robust governance framework[113]. - The company is committed to maintaining good corporate governance practices[200]. - The company has received annual confirmations from independent non-executive directors regarding their independence, and believes they are independent[151]. - The company has purchased liability insurance to provide appropriate protection for its directors[152]. Future Outlook - The company plans to expand its placement and underwriting business, with an allocated budget of HKD 80 million, fully utilized[70]. - The company aims to leverage its IPO reputation to attract more clients and expand its customer base in the Greater Bay Area[77]. - The company is investing in new technology development, allocating $F million towards R&D initiatives aimed at enhancing product offerings[88]. - Market expansion efforts are underway, with plans to enter G new markets by the end of the fiscal year, potentially increasing market share by H%[89]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $I million earmarked for potential M&A activities[90]. - A new marketing strategy has been implemented, expected to increase brand awareness and drive sales growth by J% over the next year[91].