Financial Performance - For the three months ended March 31, 2022, the group's revenue was approximately HKD 29.5 million, a decrease of 26.4% compared to the same period last year[5]. - The group recorded a gross profit of approximately HKD 1.0 million, down from HKD 9.3 million for the same period last year[5]. - The loss attributable to owners of the company for the three months ended March 31, 2022, was approximately HKD 28.2 million, compared to a loss of HKD 3.2 million for the same period last year[5]. - The basic loss per share for the three months ended March 31, 2022, was HKD 1.13, compared to HKD 0.13 for the same period last year[5]. - The company reported an operating loss of HKD 26.7 million for the three months ended March 31, 2022, compared to an operating loss of HKD 0.7 million for the same period last year[6]. - The total comprehensive loss for the period was HKD 24.4 million, compared to HKD 5.3 million for the same period last year[9]. - The company reported a net loss of HKD 10,203,000 from other gains/losses, compared to a gain of HKD 9,140,000 in the previous year[24]. - For the three months ended March 31, 2022, the company reported a loss attributable to shareholders of approximately HKD 28.2 million, compared to a loss of HKD 3.2 million for the same period in 2021, representing a significant increase in losses[43]. Revenue Breakdown - The company's revenue from information appliances for the three months ended March 31, 2022, was HKD 26,545,000, a decrease of 11.4% compared to HKD 29,951,000 in the same period of 2021[23]. - Revenue from IDC property and facility rentals was HKD 3,000,000, down 70.5% from HKD 10,178,000 year-on-year[23]. - Total revenue for the IDC business was HKD 29,545,000, a decline of 26.2% from HKD 40,129,000 in the previous year[23]. - Revenue for the information appliances business was approximately HKD 26.5 million, a decrease of 11.4% compared to the same period last year, primarily due to the resurgence of COVID-19 impacting global supply chains[34]. - IDC business revenue decreased by 70.5% to approximately HKD 3.0 million, down from HKD 10.2 million in the previous year, due to the cessation of rental income from the sold Shanghai IDC[35]. - Total revenue for the group was approximately HKD 29.5 million, a decrease of 26.4% from HKD 40.1 million in the same period last year, mainly due to the decline in IDC revenue[38]. Equity and Dividends - As of March 31, 2022, the total equity attributable to owners of the company was approximately HKD 2,071.9 million, down from HKD 2,096.3 million as of December 31, 2021[5]. - The board of directors did not recommend the payment of a dividend for the three months ended March 31, 2022[5]. - The company did not recommend any dividend payment for the three months ended March 31, 2022, consistent with the previous year[28]. - The board did not declare any dividends during the reporting period[59]. Share Issuance and Capital - The company issued 414,616,000 new shares at a price of HKD 0.20 per share, raising approximately HKD 82,924,000[15]. - The total net proceeds from the issuance of shares amounted to approximately HKD 82.7 million, with the funds allocated for IDC business development, information appliances, and general working capital[48]. - As of March 31, 2022, the entire net proceeds of HKD 82.723 million were fully utilized, with HKD 66.179 million for IDC business and HKD 8.272 million each for information appliances and general working capital[50]. Current Assets and Liquidity - As of March 31, 2022, the group had a current ratio of 3.3, compared to 3.2 as of December 31, 2021, indicating stable liquidity[44]. - The group held approximately HKD 825.0 million in net current assets, including cash and bank balances of approximately HKD 402.8 million[44]. Risks and Compliance - The company continues to face significant market volatility risks due to its listing on the GEM, which is designed for small and medium-sized enterprises[2]. - The company faces risks including supply chain issues for microchips, potential cost pressures in the information appliances sector, and competition from rapid technological advancements[53]. - The company is actively monitoring and implementing measures to address identified risks and uncertainties in its operations[55]. - The company has complied with all applicable laws and regulations in China, Hong Kong, and the United States during the reporting period[57]. - The company has complied with the corporate governance code as per GEM Listing Rules during the period[70]. Environmental Commitment - The company has no significant waste generation or air pollutant emissions, emphasizing its commitment to environmental protection[56]. Shareholding Structure - As of March 31, 2022, key executives hold a total of 741,379,800 shares, representing 29.80% of the company's issued share capital[60]. - As of March 31, 2022, Unicorn Resources Inc. holds 741,379,800 shares, representing approximately 29.80% of the total issued share capital of the company[63]. - Hongqiao Group Limited owns 351,867,200 shares, accounting for approximately 14.14% of the total issued share capital[63]. - The total number of shares outstanding as of March 31, 2022, is 2,487,704,800 shares[67]. Governance and Management - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and risk management[71]. - The company did not purchase, sell, or redeem any of its listed securities during the period[73]. - All directors confirmed compliance with the trading standards for securities transactions during the period[74]. - The company has not entered into any management or administrative contracts for overall business or any significant business during the period[68].

COVID-19 Impact - The group faced significant impacts from the COVID-19 pandemic, affecting its performance in the information appliances, IDC, and investment sectors[7]. - The construction of the IDC in San Jose, USA, experienced delays and incurred additional costs, while the Shanghai IDC sale was completed but faced registration delays due to domestic COVID-19[8]. Financial Performance - The company's revenue for the fiscal year 2021 was HKD 171.7 million, a decrease of 44.1% from HKD 307.4 million in 2020[15]. - The operating loss for 2021 was HKD 165.4 million, compared to an operating profit of HKD 30.4 million in 2020, reflecting a significant decline in profitability[21]. - The net loss attributable to shareholders for 2021 was HKD 172.5 million, compared to a profit of HKD 21.9 million in 2020[21]. - The total assets as of December 31, 2021, were HKD 2,505.4 million, slightly up from HKD 2,494.2 million in 2020[22]. - The total liabilities increased to HKD 415.2 million in 2021 from HKD 321.9 million in 2020, indicating a rise in financial obligations[22]. - The total equity attributable to shareholders decreased to HKD 2,096.3 million in 2021 from HKD 2,173.7 million in 2020[22]. - The group recorded a net loss provision for expected credit losses of approximately HKD 59.1 million in FY2021, a significant increase from zero in FY2020, due to increased credit risk from loan defaults[44]. - The company recorded a loss attributable to owners of approximately HKD 172.5 million for the fiscal year 2021, compared to a profit of HKD 21.9 million in fiscal year 2020[46]. Revenue Decline - The company reported a 48.3% decrease in revenue from the information appliances segment, dropping from approximately HKD 271.4 million in 2020 to about HKD 140.3 million in 2021[28]. - IDC business revenue decreased by 12.6% from approximately HKD 36.0 million in FY2020 to approximately HKD 31.4 million in FY2021, with profit dropping 18.8% to approximately HKD 11.4 million[30]. - The group's total revenue for FY2021 was approximately HKD 171.7 million, a significant decrease of 44.1% from approximately HKD 307.4 million in FY2020, primarily due to a shortage of microchips affecting the information appliance business[37]. Investment Strategy - The group shifted its investment focus from the stock market to the digital asset market, selling most of its securities investments and reallocating profits into computing power investments and cryptocurrency mining[8]. - The group expanded its investment activities into digital assets and biotechnology, indicating a strategic shift towards sectors with growth potential[34]. - The group has implemented a close risk assessment for cryptocurrency mining activities due to policy risks[8]. Operational Challenges - The group reported a decline in shipments due to global chip supply instability, prompting strict inventory and cost management measures[7]. - The company aims to mitigate the impact of chip supply shortages by seeking new raw material suppliers and implementing strict inventory management[29]. - The company faced significant risks including supply chain issues for microchips and potential cost pressures from raw materials in the information appliance distribution business[78]. Future Outlook - The group anticipates the completion of the second phase of the San Jose IDC construction in Q3 2022, aiming to attract new clients for stable operational funding[8]. - The introduction of new products leveraging Web3.0 and Metaverse concepts is expected to enhance the group's resilience and growth potential[7]. - The group aims to capitalize on the growing demand for data centers driven by technologies such as 5G, IoT, and AI, which are expected to bolster the IDC business[10]. - The group is committed to sustainable development and business improvement plans to pave the way for long-term stability and profitability[10]. Shareholder Relations - The group expresses gratitude to shareholders, customers, and partners for their support during challenging times[11]. - The board of directors did not recommend the payment of a final dividend for the year ending December 31, 2021, consistent with the previous year[101]. - The board will consider financial performance, earnings, and operational needs when deciding on future dividend payments[102]. Corporate Governance - The company has adopted a prudent treasury policy to manage its cash flow and minimize credit risk[51]. - The company has established appropriate policies and controls to safeguard assets and ensure compliance with relevant laws and regulations[188]. - The board is responsible for maintaining a robust and effective risk management and internal control system, which was reviewed annually for its effectiveness[200]. - The company has complied with the corporate governance code as per GEM listing rules, except for one specific provision[158]. Management and Structure - The management team has extensive experience in business development and investment projects, enhancing the company's strategic direction[89]. - The board of directors consists of nine members, including six executive directors and three independent non-executive directors[165]. - The company has adopted a board diversity policy to ensure a balanced board with diverse skills, experiences, and opinions[183].

Financial Performance - For the nine months ended September 30, 2021, the group's total revenue was approximately HKD 123.5 million, a decrease of 49.9% compared to the same period last year[5]. - The group recorded a gross profit of approximately HKD 29.8 million for the nine months ended September 30, 2021, down from HKD 39.6 million in the same period last year[5]. - The loss attributable to owners of the company for the nine months ended September 30, 2021, was approximately HKD 19.0 million, compared to a loss of HKD 26.8 million for the same period last year[5]. - The basic loss per share for the nine months ended September 30, 2021, was HKD 0.01, consistent with the loss per share for the same period last year[5]. - The operating loss for the nine months ended September 30, 2021, was HKD 12.2 million, compared to an operating loss of HKD 23.0 million for the same period last year[6]. - The total comprehensive income for the nine months ended September 30, 2021, was HKD 38.6 million, compared to a total comprehensive loss of HKD 15.3 million for the same period last year[9]. - The company reported a financing cost of HKD 2.6 million for the nine months ended September 30, 2021, compared to HKD 2.3 million for the same period last year[6]. - Overall revenue decreased by 49.9% to approximately HKD 123.5 million, with gross profit down 24.7% to approximately HKD 29.8 million[43]. - The group recorded a net loss of approximately HKD 19.0 million attributable to shareholders, an improvement from a loss of approximately HKD 26.8 million in the same period last year[48]. - The group’s financing costs increased by 9.8% to approximately HKD 2.6 million due to higher borrowing costs compared to the previous fiscal year[47]. Equity and Dividends - As of September 30, 2021, the total equity attributable to owners of the company was approximately HKD 2,238.4 million, an increase from HKD 2,173.7 million as of December 31, 2020[5]. - The board of directors did not recommend the payment of any dividend for the nine months ended September 30, 2021[5]. - The company did not recommend any dividend for the nine months ended September 30, 2021, consistent with the same period in 2020[28]. - The board did not declare any dividends during the reporting period[68]. User Engagement and Market Presence - The company’s user data showed a total of 62,193 active users, which is an increase from 51,827 active users at the beginning of the year[10]. - The company anticipates a recovery in user engagement and revenue growth as market conditions improve in the next fiscal year[10]. - The company plans to expand its market presence and invest in new technologies to enhance its product offerings in the upcoming quarters[10]. Assets and Liabilities - The total liabilities of the company as of September 30, 2021, were HKD 1,570,956,000, reflecting a slight increase from the previous quarter[10]. - As of September 30, 2021, the group had a current ratio of 4.4 times and a debt-to-equity ratio of 15.4%, indicating a strong financial position[49]. - The group’s total assets pledged as collateral for loans amounted to approximately HKD 142.4 million as of September 30, 2021[50]. Investments and Acquisitions - The company completed the sale of its indirect wholly-owned subsidiary, Shanghai Yiding, for USD 68 million (approximately HKD 530.4 million) on September 3, 2021[57][58]. - The company recorded a foreign exchange gain of HKD 13,010,000 related to the sale of the subsidiary[32]. - The company has begun investing in cryptocurrency by acquiring computing power, recognizing the growth potential of digital assets[41]. - The company purchased computing power equipment for cryptocurrency mining, with a total contract value of RMB 290 million, but decided not to pay the third installment of RMB 140 million[59]. - The company agreed to purchase 10,500 cryptocurrency mining machines for HKD 84.18 million, with payment to be made in USD Coin[63]. - The company has not engaged in any Bitcoin mining activities as of the report date and will provide further announcements regarding such activities in accordance with listing rules[63]. Operational Capacity and Future Outlook - The company reported a significant increase in operational capacity, which is expected to drive future revenue growth[10]. - The group is actively pursuing the completion of its IDC facility in San Jose, USA, with operational commencement expected in the first half of 2022[39]. - The company’s investment in intangible assets was capitalized, with a depreciation period of three years, impacting future financial statements[19]. Shareholder Information - As of September 30, 2021, the total number of issued shares of the company is approximately 2,487,704,800[76]. - Mr. Li Qiang holds 4,604,000 shares, representing 0.19% of the company's issued share capital[70]. - Mr. Cong Yu holds 741,379,800 shares, representing 29.80% of the company's issued share capital[70]. - Mr. Gao Fei holds 2,190,000 shares, representing 0.09% of the company's issued share capital[70]. - Mr. Shi Guangrong holds 22,660,000 shares, representing 0.91% of the company's issued share capital[70]. - Mr. Zhu Jiang holds 7,926,756 shares, representing 0.32% of the company's issued share capital[70]. - Ms. Shen Yan holds 324,000 shares, representing 0.01% of the company's issued share capital[70]. - Unicorn Resources Inc. holds 741,379,800 shares, representing 29.80% of the company's issued share capital[73]. - Hongqiao Group Limited holds 351,867,200 shares, representing 14.14% of the company's issued share capital[73]. Compliance and Governance - The company’s financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance and transparency[18]. - The board has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and risk management[82]. - The audit committee reviewed the unaudited interim financial results, ensuring compliance with applicable accounting standards[82]. - All directors confirmed compliance with the trading standards regarding their securities transactions during the period[85]. - There were no purchases, sales, or redemptions of the company's listed securities during the period[83]. - The company has not entered into any management contracts for overall business or any significant business during the period[78]. Risk Management - The company is focused on improving risk management systems across various aspects of its operations, with potential risks including market competition and regulatory changes affecting financial performance[64].

Financial Performance - For the six months ended June 30, 2021, the group's total revenue was approximately HKD 74.7 million, a decrease of 37.1% compared to the same period last year[5]. - The group recorded a gross profit of approximately HKD 20.7 million for the six months ended June 30, 2021, compared to HKD 17.1 million for the same period in 2020[5]. - The loss attributable to owners of the company for the six months ended June 30, 2021, was approximately HKD 69.7 million, compared to HKD 52.6 million for the same period in 2020[5]. - The basic loss per share for the six months ended June 30, 2021, was HKD 0.03, consistent with the loss per share for the same period in 2020[5]. - The company reported a net loss of HKD 69.9 million for the six months ended June 30, 2021, compared to a net loss of HKD 52.8 million for the same period in 2020[6]. - The group reported a total loss before tax of HKD 67,081,000 for the six months ended June 30, 2021[41]. - The group’s net loss for the period was HKD 69,921,000[41]. - The group recorded a net loss of approximately HKD 69.7 million for the period, compared to a loss of HKD 52.6 million for the same period last year, primarily due to poor performance in the investment portfolio[113]. Assets and Liabilities - As of June 30, 2021, the total equity attributable to owners of the company was approximately HKD 2,195.5 million, compared to HKD 2,173.7 million as of December 31, 2020[5]. - Non-current assets decreased from HKD 1,699,793 thousand to HKD 1,162,994 thousand, a decline of approximately 31.5%[9]. - Current assets increased from HKD 794,449 thousand to HKD 1,379,224 thousand, representing a growth of approximately 73.5%[9]. - Total liabilities decreased from HKD 287,251 thousand to HKD 300,994 thousand, reflecting an increase of about 4.5%[11]. - The total liabilities as of June 30, 2021, were HKD 348,253,000, compared to HKD 321,878,000 as of December 31, 2020[45]. - The company has outstanding loans receivable totaling HKD 233,747,000 as of June 30, 2021, compared to HKD 251,026,000 as of December 31, 2020[65]. Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2021, was HKD 71,635,000, compared to a cash outflow of HKD 16,061,000 in the same period of 2020, representing a significant improvement[17]. - Net cash generated from operating activities was HKD 70,375,000, a recovery from a net cash outflow of HKD 16,622,000 in the previous year[17]. - The increase in cash and cash equivalents for the period was HKD 304,458,000, compared to a decrease of HKD 190,797,000 in the prior year[17]. - The company reported a net cash inflow from financing activities of HKD 127,309,000, compared to HKD 5,161,000 in the same period of 2020[17]. - The company made investments in property, plant, and equipment amounting to HKD 18,860,000, a significant reduction from HKD 246,745,000 in the previous year[17]. Revenue Segments - The total revenue for the information appliances segment was HKD 54,342,000, while the IDC segment generated HKD 20,392,000 in revenue[41]. - The revenue from the IDC facilities was recognized on a straight-line basis over the lease term[35]. - The revenue from the information appliances business was approximately HKD 54.3 million, a decrease of 47.0% compared to the same period last year[97]. - The IDC business generated revenue of approximately HKD 20.4 million, an increase of 25.5% from approximately HKD 16.2 million in the same period last year[98]. Investment Performance - The investment segment recorded a loss of HKD 52,270,000[41]. - The fair value change of investment properties resulted in a net loss of HKD 43,166,000[41]. - The fair value of listed equity securities in Hong Kong decreased from HKD 385,875,000 as of December 31, 2020, to HKD 77,039,000 as of June 30, 2021, representing a decline of approximately 80%[69]. - The fair value of private equity funds increased significantly from HKD 24,946,000 as of December 31, 2020, to HKD 58,367,000 as of June 30, 2021, marking an increase of about 133%[70]. - The cumulative unrealized holding loss from the acquisition date to June 30, 2021, was HKD 38,301,000, indicating a significant decline in asset value[71]. Corporate Governance and Compliance - The company is committed to high standards of corporate governance and has complied with applicable provisions of the GEM Listing Rules[157]. - The audit committee consists of three independent non-executive directors, ensuring compliance with corporate governance codes[57]. - The group has complied with all applicable laws and regulations in China, Hong Kong, and the United States during the reporting period[131]. Environmental and Social Responsibility - The group has not generated significant waste or emitted substantial air pollutants, demonstrating its commitment to environmental protection[130]. - The group is committed to minimizing its negative environmental impact through energy conservation and resource recycling initiatives[130]. Shareholder Information - As of June 30, 2021, the total number of issued shares was 2,487,704,800[153]. - Mr. Cong Yu holds 741,379,800 shares, representing 29.80% of the company's issued share capital[150]. - Mr. Hong Qiao Group holds 351,867,200 shares, accounting for 14.14% of the company's issued share capital[150].

Financial Performance - For the three months ended March 31, 2021, the group's total revenue was approximately HKD 40,100,000, an increase of 7.5% compared to the same period in 2020[5] - The group recorded a gross profit of approximately HKD 9,300,000 for the three months ended March 31, 2021, compared to HKD 9,400,000 for the same period in 2020[5] - The loss attributable to owners of the company for the three months ended March 31, 2021, was approximately HKD 3,200,000, significantly reduced from HKD 76,100,000 in the same period of 2020[5] - The basic loss per share for the three months ended March 31, 2021, was HKD 0.13, compared to HKD 3.67 for the same period in 2020[5] - The total comprehensive loss for the three months ended March 31, 2021, was HKD 5,275,000, compared to HKD 89,674,000 for the same period in 2020[8] - The company reported a net loss attributable to shareholders of HKD (3,173,000) for the three months ended March 31, 2021, compared to a net loss of HKD (76,071,000) in the same period of 2020[22] - Basic and diluted loss per share for the three months ended March 31, 2021, was HKD (0.13), an improvement from HKD (3.67) in the same period of 2020[22] - The company incurred tax expenses of HKD 1,257,000 for the three months ended March 31, 2021, compared to HKD 549,000 in the same period of 2020[19] Revenue Breakdown - For the three months ended March 31, 2021, the company's revenue from information appliances was HKD 29,951,000, a decrease of 2.2% from HKD 30,634,000 in the same period of 2020[17] - Revenue from IDC property and facility rental income increased to HKD 10,178,000, up 52.5% from HKD 6,682,000 year-on-year[17] - Total revenue for the three months ended March 31, 2021, was HKD 40,129,000, representing a 7.3% increase compared to HKD 37,316,000 in the same period of 2020[17] - The company generated approximately HKD 10,200,000 from its IDC business, up from HKD 6,700,000 in the same period last year[31] - Other income from rental income of investment properties was HKD 2,215,000, an increase from HKD 1,785,000 year-on-year[18] - Interest income from bank deposits decreased to HKD 107,000 from HKD 600,000 in the previous year[18] Equity and Dividends - As of March 31, 2021, the total equity attributable to owners of the company was approximately HKD 2,251,400,000, up from HKD 2,173,700,000 as of December 31, 2020[5] - The board of directors did not recommend the payment of an interim dividend for the three months ended March 31, 2021[5] Strategic Initiatives - The company plans to sell its indirect wholly-owned subsidiary, Shanghai Yiding Electronic Technology Co., Ltd., for USD 68,000,000 (approximately HKD 530,400,000) to Empress Investments Pte. Ltd.[24] - The company entered into a memorandum of understanding to acquire 3,000 A10 pro supercomputing servers for RMB 70,000,000[26] - The first phase of the IDC project in the United States is expected to be delivered in the first half of 2021, despite delays due to COVID-19[33] - The company is focusing on improving risk management systems across various aspects of its strategy, operations, and financing[43] - The IDC business segment is expected to contribute to revenue growth, with the first phase of a project in San Jose, USA, anticipated to be delivered in the first half of 2021[47] - The company aims to build high-performance, easily maintainable, and flexible IDC facilities in key cities and regions to enhance competitiveness[47] - The information appliance business is expected to grow, with a focus on maintaining strong market competitiveness through continuous technological investment and innovation[49] Compliance and Governance - The company emphasizes compliance with applicable laws and regulations in China, Hong Kong, and the USA, ensuring operational compliance[45] - The company is committed to high standards of corporate governance, adhering to the corporate governance code[60] - All directors confirmed compliance with the trading standards set forth in GEM Listing Rules during the period[65] - The audit committee has reviewed the unaudited condensed consolidated financial statements and believes they comply with applicable accounting standards[63] Shareholder Information - As of March 31, 2021, Unicorn Resources Inc. holds 741,379,800 shares, representing approximately 29.80% of the company's issued share capital[53] - Hongqiao Group Limited owns 351,867,200 shares, accounting for approximately 14.14% of the company's issued share capital[53] - The total number of shares outstanding as of March 31, 2021, is 2,487,704,800 shares[57] Market Conditions and Risks - The management acknowledges ongoing market uncertainties but remains committed to providing quality services and creating long-term value[49] - The company is actively monitoring risks such as intense competition, rapid product iteration, and fluctuations in the RMB exchange rate[43] - The company has not reported any significant investments or acquisitions during the reporting period, aside from those mentioned[41] - The company has not disclosed any new product developments or market expansions in the current report[54]

IDC Business Performance - The IDC business segment achieved steady revenue growth in 2020, with the completion of sale-and-leaseback arrangements contributing to increased IDC business revenue[7]. - The construction progress of the IDC project in San Jose, USA was delayed due to COVID-19, with the first phase expected to be delivered in the first half of 2021[7]. - The company aims to build high-performance, easily maintainable, and flexibly expandable intelligent IDC facilities in key cities and regions to enhance competitiveness[7]. - The digital economy is thriving, with increasing demand for online services and high data traffic presenting both challenges and opportunities for the IDC industry[7]. - The company’s strategic focus includes expanding its global IDC business and enhancing its capabilities in cloud computing[4]. - The company plans to conduct feasibility studies for a second data center in the USA, aiming to enhance its competitive edge in the IDC industry[52]. - The IDC business generated revenue of approximately HKD 36,000,000, representing 11.7% of total revenue, an increase from HKD 27,300,000 in the previous year[38]. - The group plans to continue allocating resources to the IDC business, which is still in the investment phase[38]. Information Appliance Business - The information appliance business is focused on becoming a leading provider of broadband multimedia terminal technology solutions, with a gradual recovery in customer procurement orders in the second half of 2020[8]. - The revenue from the information home appliance business was approximately HKD 271,400,000, a decrease of 16.6% compared to the previous year[23]. - The group's revenue from the information appliance business decreased by 16.6% to approximately HKD 271,400,000, accounting for 88.3% of total revenue[37]. - The information appliance business is focused on becoming a leading provider of broadband audio-visual multimedia terminal technology solutions, with a gradual recovery in customer procurement orders in the second half of 2020[53]. - The company emphasizes continuous investment in technology and R&D innovation to maintain strong market competitiveness and improve profitability in the information appliance sector[53]. Financial Performance - The company's revenue for the year 2020 was approximately HKD 307,378,000, a decrease of 5.5% compared to HKD 325,312,000 in 2019[19]. - The profit attributable to the company's owners for 2020 was HKD 21,914,000, down 47.3% from HKD 41,484,000 in 2019[19]. - The gross profit for the year increased by 44.4% to approximately HKD 51,300,000, despite a decline in overall revenue[23]. - The company recorded a net loss of approximately HKD 4,400,000 from the revaluation of investment properties in 2020[25]. - Financing costs decreased by 51.3% to approximately HKD 3,100,000 due to lower borrowing rates[29]. - The company's current ratio as of December 31, 2020, was 2.8 times, indicating a strong liquidity position[31]. - The total assets of the company as of December 31, 2020, were approximately HKD 2,494,242,000[20]. - The company’s total equity attributable to owners increased to HKD 2,173,679,000 from HKD 2,106,628,000 in 2019[20]. - The investment division recorded a profit of approximately HKD 25,600,000, down from HKD 70,800,000 the previous year, primarily due to a net gain of approximately HKD 32,000,000 from financial assets[38]. - The group confirmed a net revaluation loss of approximately HKD 3,800,000 in the leasing division, resulting in a loss of approximately HKD 500,000[39]. - The domestic market revenue increased by 35.1% to approximately HKD 118,300,000, while revenue from overseas markets decreased by 17.3% to approximately HKD 158,900,000[39]. - The group recorded a net foreign exchange loss of approximately HKD 1,900,000 during the year[41]. - The group has not made any significant investments or acquisitions during the year, except for a sale and leaseback agreement worth HKD 60,000,000[34]. Corporate Governance - The board of directors is responsible for overall strategy, monitoring operations, and financial performance[120]. - The company has established long-term cooperative relationships with major suppliers and customers[108]. - The board consists of nine members, including six executive directors and three independent non-executive directors, ensuring compliance with GEM listing rules[123]. - The board held a total of four meetings in the year, reviewing the group's financial performance and major investments[126]. - All independent non-executive directors confirmed their independence according to GEM listing rules, with their terms set for two years[125]. - The company has established a board diversity policy, focusing on skills, experience, and opinions to enhance board effectiveness[145]. - The roles of the chairman and CEO are held by different individuals, with Mr. Li Qiang as chairman and Mr. Gao Fei as CEO[146]. - The company has three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined responsibilities[147]. - The company provides ongoing training for directors to ensure they are updated on GEM listing rules and regulatory changes[144]. - The board has a clear appointment and re-election process for directors, ensuring transparency and adherence to governance codes[141]. - The company has received confirmation of independence from all independent non-executive directors, affirming their compliance with governance standards[125]. - The attendance record for directors at meetings was consistently high, with all executive directors attending all four board meetings[130-139]. - The audit committee held four meetings during the year to review quarterly, interim, and annual financial performance and compliance procedures[153]. - The remuneration committee conducted one meeting to review the remuneration of directors and senior management, ensuring transparency in the remuneration policy[154]. - The nomination committee held one meeting to review the retirement and re-election of directors at the annual general meeting[158]. Environmental and Social Responsibility - The company is committed to building environmentally friendly operations, minimizing adverse environmental impacts, and encouraging resource recycling among employees[48]. - The company has established a sustainable development culture that integrates into its operational strategies, focusing on environmental management and compliance with EU regulations[185]. - The company is committed to reducing environmental impacts and enhancing sustainability awareness within its operations[185]. - The total greenhouse gas emissions for the Beijing headquarters were 262.66 tons CO2 equivalent, with a density of 2.71 tons CO2 equivalent per person[200]. - The total greenhouse gas emissions for the Zhongshan factory were 9.69 tons CO2 equivalent, with a density of 0.88 tons CO2 equivalent per person[200]. - Direct greenhouse gas emissions (Scope 1) for the Beijing headquarters were 59.46 tons, while for the Zhongshan factory they were 1.24 tons[200]. - Indirect greenhouse gas emissions (Scope 2) for the Beijing headquarters were 167.79 tons, and for the Zhongshan factory they were 8.45 tons[200]. - The nitrogen oxides (NOx) emissions from the Beijing headquarters were 40.64 kg, while the Zhongshan factory emitted 0.384 kg[198]. - The sulfur oxides (SOx) emissions from the Beijing headquarters were 0.092 kg, while the Zhongshan factory emitted 0.008 kg[198]. - The particulate matter (PM) emissions from the Beijing headquarters were 3.89 kg, while the Zhongshan factory emitted 0.028 kg[198]. - The total direct and indirect greenhouse gas emissions for the Beijing headquarters decreased by approximately 23% compared to the previous reporting year[198]. - The emissions from the Zhongshan factory increased by approximately 16% compared to the previous reporting year[198]. - The company is committed to improving its environmental management system and reducing emissions through innovative technologies and new products[196].

Financial Performance - For the nine months ended September 30, 2020, the group's total revenue was approximately HKD 246.5 million, a decrease of 5.8% compared to the same period in 2019[5]. - The overall gross profit for the nine months ended September 30, 2020, was approximately HKD 39.6 million, compared to HKD 26.1 million for the same period in 2019[5]. - The company recorded a loss attributable to owners of approximately HKD 26.8 million for the nine months ended September 30, 2020, compared to a profit of HKD 41.5 million for the same period in 2019[5]. - Basic loss per share for the nine months ended September 30, 2020, was HKD 0.01, compared to a basic earnings per share of HKD 0.02 for the same period in 2019[5]. - The total comprehensive loss for the nine months ended September 30, 2020, was HKD 15.3 million, compared to a total comprehensive income of HKD 20.1 million for the same period in 2019[8]. - The group recorded a net loss of approximately HKD 26.8 million attributable to shareholders, compared to a profit of approximately HKD 41.5 million for the nine months ended September 30, 2019[35]. Revenue Breakdown - Total revenue from information appliances sales for the nine months ended September 30, 2020, was HKD 220,516,000, down from HKD 261,670,000 in 2019, a decrease of 15.7%[18]. - The IDC business generated revenue of approximately HKD 26.0 million, accounting for about 10.5% of the total revenue, compared to approximately HKD 20.6 million for the same period last year[32]. - Rental income from IDC properties for the nine months ended September 30, 2020, was approximately HKD 25,971,000, compared to HKD 20,583,000 for the same period in 2019, representing an increase of 26.5%[17]. - For the nine months ended September 30, 2020, the group's revenue from the information appliance business was approximately HKD 220.5 million, a decrease of 15.7% year-on-year, while for the three months, it was approximately HKD 117.9 million, an increase of 110.9% year-on-year[30]. Expenses and Costs - Distribution and selling expenses decreased by 9.0% year-on-year to approximately HKD 6.1 million, while general and administrative expenses decreased by 30.6% year-on-year to approximately HKD 43.9 million[31]. - Financing costs decreased by 55.9% year-on-year to approximately HKD 2.3 million due to reduced bank borrowings and interest rates[31]. - Other income for the nine months ended September 30, 2020, totaled HKD 24,197,000, a decrease of 45.8% from HKD 44,657,000 in the same period of 2019[19]. Equity and Dividends - As of September 30, 2020, the total equity attributable to owners of the company was approximately HKD 2,091.7 million, slightly down from HKD 2,106.6 million as of December 31, 2019[5]. - The board of directors did not recommend the payment of an interim dividend for the nine months ended September 30, 2020[5]. - The company did not declare an interim dividend for the nine months ended September 30, 2020, consistent with the previous year[28]. Shareholder Information - As of September 30, 2020, major shareholder Hongqiao Group Limited holds 450,357,200 shares, representing 21.72% of the company's issued share capital[49]. - The company’s directors and senior executives hold a total of 37,684,756 shares, representing approximately 1.84% of the company's issued share capital[46]. - Cloudrider Limited's equity in the company dropped from 21.72% to 0% after the execution of 450,357,200 shares[1]. - Bronze Pony Investments Limited agreed to purchase 400,000,000 ordinary shares from Hongqiao on June 19, 2020[2]. - Yip Po Investment holds 200,000,000 shares, representing 9.65% of the company's equity[3]. - Zhu Weisha holds equity in the company through Yulong, amounting to 121,533,800 shares[4]. Corporate Governance - The company has adhered to the corporate governance code as per GEM listing rules during the period[7]. - An audit committee has been established, consisting of three independent non-executive directors[8]. - The company did not purchase, sell, or redeem any of its listed securities during the period[9]. - All directors confirmed compliance with the trading standards set forth in the GEM listing rules during the period[10]. Business Development and Strategy - The group is currently constructing its first IDC project in the United States, with the first phase expected to be delivered by the end of 2020 and the second phase anticipated to be completed in 2021[34]. - The group aims to expand its overseas small and medium-sized operator market to increase revenue and improve the overall gross margin of its information appliance business[42]. - The group is actively developing international IDC and cloud computing technology businesses, aiming to provide secure and reliable data center facilities and services to well-known enterprises domestically and internationally[43]. - The group plans to actively seek cooperation through new construction or acquisitions in domestic, Hong Kong, and overseas markets to develop into a big data company[44]. - The group aims to establish international cloud computing data centers for large enterprises and provide integrated solutions for SMEs in the Greater China region[43]. - The group is focusing on the rapid advancement of IDC construction based on 5G technology, driven by the explosion of data volume from emerging technologies[43]. - Despite challenges posed by COVID-19, the management team is committed to providing high-quality information appliances and IDC services[45].

Financial Performance - For the six months ended June 30, 2020, the group's total revenue was approximately HKD 118.8 million, a decrease of 42.2% compared to the same period in 2019[5]. - The group recorded a gross profit of approximately HKD 17.1 million for the six months ended June 30, 2020, compared to HKD 16.5 million in the same period of 2019[5]. - The loss attributable to owners of the company for the six months ended June 30, 2020, was approximately HKD 52.6 million, compared to a profit of HKD 90.3 million in the same period of 2019[5]. - Basic loss per share for the six months ended June 30, 2020, was HKD 0.03, compared to earnings of HKD 0.05 per share in the same period of 2019[5]. - The comprehensive loss for the six months ended June 30, 2020, was HKD 67.0 million, compared to a comprehensive income of HKD 87.9 million in the same period of 2019[8]. - The group reported a net loss of HKD 52,753,000 for the six months ended June 30, 2020, compared to a profit of HKD 89,541,000 for the same period in 2019[42]. - The group’s total assets and liabilities have been allocated to the reportable segments, ensuring a clear view of financial performance across divisions[39]. - The group reported a significant decrease in net income from HKD 160,634,000 in the first half of 2019 to HKD (10,413,000) in the first half of 2020[71]. Equity and Dividends - As of June 30, 2020, total equity attributable to owners of the company was approximately HKD 2,039.8 million, down from HKD 2,106.6 million as of December 31, 2019[5]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2020, consistent with the previous year[5]. - The company reported a decrease in total equity from HKD 2,106,628 thousand to HKD 2,038,773 thousand, a drop of 3.2%[12]. - The company maintained a stable dividend payout of HKD 31 thousand, unchanged from the previous period[11]. Assets and Liabilities - Non-current assets totaled HKD 1,633,055 thousand as of June 30, 2020, compared to HKD 1,582,777 thousand as of December 31, 2019, representing an increase of 3.2%[9]. - Current assets decreased to HKD 710,988 thousand from HKD 937,295 thousand, a decline of 24.1%[9]. - Total liabilities decreased from HKD 384,754 thousand to HKD 275,039 thousand, a reduction of 28.5%[11]. - The net asset value stood at HKD 2,038,773 thousand, down from HKD 2,105,805 thousand, reflecting a decrease of 3.2%[11]. - The company reported trade receivables of HKD 84,734,000 as of June 30, 2020, up from HKD 79,474,000 as of December 31, 2019[64]. - The group’s total liabilities as of June 30, 2020, were HKD 140.418 million, a decrease from HKD 258.493 million as of December 31, 2019[75]. Cash Flow - For the six months ended June 30, 2020, the net cash used in operating activities was HKD (16,622,000), a significant decrease compared to HKD 50,521,000 for the same period in 2019[19]. - The net cash used in investing activities amounted to HKD (179,336,000), compared to a net cash generated of HKD 74,345,000 in the previous year[19]. - The total cash and cash equivalents decreased by HKD (190,797,000), contrasting with an increase of HKD 32,618,000 in the same period last year[19]. - As of June 30, 2020, the cash and cash equivalents stood at HKD 162,256,000, down from HKD 366,143,000 at the end of 2019[19]. Segment Performance - The revenue from the information appliances business for the six months ended June 30, 2020, was approximately HKD 102,567,000, while rental income from IDC properties and facilities was about HKD 16,245,000[34]. - For the six months ended June 30, 2020, the total segment revenue was HKD 75,751,000, with a segment loss before tax of HKD 52,174,000[41]. - The IDC business recorded revenue of approximately HKD 16.2 million, accounting for 13.7% of total revenue, with a profit of approximately HKD 8.8 million[101]. - The investment division recorded a loss of approximately HKD 51.8 million, primarily due to poor performance in the capital market[102]. Investment and Market Conditions - The fair value of investment properties was reported at HKD 419,462,000, with HKD 87,782,000 classified as Level 2 inputs and HKD 331,680,000 as Level 3 inputs[26]. - The fair value of financial assets measured at fair value through profit or loss was HKD 578,170,000, with HKD 507,677,000 classified as Level 1 inputs[26]. - The group’s investment portfolio experienced a net loss of approximately HKD 50,400,000 due to adverse capital market conditions, compared to a net gain of approximately HKD 94,300,000 in the same period last year[109]. - The group’s investment strategy focuses on receiving dividends and long-term asset appreciation[13]. Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules Appendix 15[143]. - The audit committee consists of three independent non-executive directors, including Ms. Shen Yan as the chairperson[144]. - The committee reviewed the unaudited interim results and confirmed compliance with applicable accounting standards[146]. - The company emphasizes the importance of sound corporate governance practices for sustainable growth and shareholder value enhancement[142].

Financial Performance - For the three months ended March 31, 2020, the group's total revenue and gross profit were approximately HKD 37,300,000 and HKD 9,400,000, respectively, compared to HKD 126,900,000 and HKD 8,900,000 for the same period in 2019[5] - The loss attributable to owners of the company for the three months ended March 31, 2020, was approximately HKD 76,100,000, compared to a profit of HKD 110,300,000 for the same period in 2019[5] - The basic loss per share for the three months ended March 31, 2020, was HKD 0.04, compared to a basic earnings per share of HKD 0.06 for the same period in 2019[5] - The total comprehensive loss for the three months ended March 31, 2020, was HKD 89,674,000, compared to HKD 124,721,000 for the same period in 2019[8] - The operating loss for the three months ended March 31, 2020, was HKD (74,694,000), compared to an operating profit of HKD 112,227,000 for the same period in 2019[6] - The pre-tax loss for the three months ended March 31, 2020, was HKD (75,649,000), compared to a pre-tax profit of HKD 110,328,000 for the same period in 2019[6] - The company reported a loss attributable to shareholders of HKD 76,071,000 for the three months ended March 31, 2020, compared to a profit of HKD 110,328,000 for the same period in 2019[25] - Other income for the three months ended March 31, 2020, was HKD 6,267,000, a decrease from HKD 13,573,000 in the same period of 2019, reflecting a decline of 53.8%[21] - The company experienced a net loss of HKD 72,434,000 from financial assets measured at fair value through profit or loss for the three months ended March 31, 2020, compared to a gain of HKD 110,841,000 in the same period of 2019[21] Revenue Breakdown - For the three months ended March 31, 2020, revenue from information home appliances was approximately HKD 30,634,000, a decrease of 76.1% compared to HKD 126,912,000 for the same period in 2019[20] - The total revenue for the three months ended March 31, 2020, was HKD 37,316,000, down from HKD 126,912,000 in the same period of the previous year, representing a decline of 70.7%[20] - The revenue from the information appliances business dropped to approximately HKD 30,600,000, a decline of 75.9% year-on-year[32] - The gross profit from the information appliances business decreased by 69.3% to approximately HKD 2,700,000 compared to the previous year[32] Equity and Dividends - As of March 31, 2020, the total equity attributable to owners of the company was approximately HKD 2,017,100,000, compared to HKD 2,106,600,000 as of December 31, 2019[5] - The board of directors did not recommend the payment of an interim dividend for the three months ended March 31, 2020, consistent with the same period in 2019[5] - The company did not declare an interim dividend for the period, consistent with the previous year[31] Business Operations - The company’s main operating businesses include information home appliances, internet data centers (IDC), and investment and leasing[18] - Rental income from IDC properties for the three months ended March 31, 2020, was approximately HKD 6,682,000, while there was no rental income reported for the same period in 2019[19] - The IDC business generated rental income of approximately HKD 6,700,000, down from HKD 7,000,000 in the same period last year[34] - The company plans to continue investing in its IDC business, with the first phase of its U.S. IDC project expected to be delivered in the second half of 2020[34] - The first phase of the IDC project is expected to be delivered in the second half of 2020, with the second phase projected to be completed in 2021, and feasibility studies for a second data center in the United States are underway[44] Corporate Governance and Compliance - The company has complied with all applicable laws and regulations in China, Hong Kong, and the United States during the reporting period[40] - The company is committed to high standards of corporate governance to ensure sustainable growth and protect shareholder interests[56] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial statements and ensured compliance with applicable accounting standards[60] - All directors confirmed compliance with the trading standards for securities transactions during the period[62] Risk Management and Future Outlook - The company is actively monitoring various risks, including competition in the information appliances market and uncertainties in the IDC business[38] - The company anticipates facing significant challenges in 2020 due to the complex international environment and the impact of COVID-19 on global economic activities[44] - The company is focused on continuous improvement and enhancement of its core products and performance, leveraging its years of technical accumulation and independent R&D capabilities[41] - The company aims to increase its operating income by expanding into the overseas small and medium-sized operator market, while also improving the overall gross margin of its information home appliance business[41] Shareholding Structure - As of March 31, 2020, Hongqiao Group Limited holds 450,357,200 shares, representing 21.72% of the company's issued share capital[48] - Thousand Best Group Limited owns 200,000,000 shares, accounting for 9.65% of the company's equity[48] - Yulong Limited holds 121,533,800 shares, which is 5.86% of the total issued share capital[48] - The company holds a total of 4,604,000 shares (0.22%) owned by a director, and 22,660,000 shares (1.09%) owned by another director as of March 31, 2020[45] Environmental Commitment - The company has a strong commitment to environmental protection, with no significant waste generation or air pollutants emitted during operations[39]

Financial Performance - The company's revenue for 2019 was HKD 325.3 million, a decrease of 18.8% from HKD 400.8 million in 2018[11]. - Operating profit for 2019 was HKD 61.1 million, compared to an operating loss of HKD 333.1 million in 2018, indicating a significant turnaround[11]. - Net profit attributable to shareholders for 2019 was HKD 41.5 million, recovering from a loss of HKD 397.9 million in the previous year[11]. - The total equity attributable to shareholders increased to HKD 2.1 billion in 2019 from HKD 2.0 billion in 2018, reflecting a growth of 5.7%[11]. - Basic earnings per share for 2019 was HKD 0.02, a recovery from a loss per share of HKD 0.22 in 2018[11]. - The overall gross profit increased by 28.3% to approximately HKD 35.5 million, with a gross margin improvement to 10.9% from 6.9% in 2018[23]. - Other income and net gains increased significantly to approximately HKD 132.9 million, primarily due to fair value gains on financial assets[24]. - The company's total assets as of December 31, 2019, were HKD 2,520.1 million, with total liabilities of HKD 414.3 million[17]. - The current ratio was 2.4 times, indicating a strong liquidity position, while the debt-to-equity ratio was 19.7%[31]. - The company reduced its distribution and selling expenses by 49.6% to approximately HKD 7.8 million[26]. - Financing costs decreased significantly to approximately HKD 6.4 million, down from HKD 71 million in 2018[29]. - The company did not recommend the payment of a final dividend for the year ended December 31, 2019, consistent with the previous year[74]. Business Segments - The IDC business segment maintained stable profitability, with a new IDC project in San Jose, USA, expected to be operational in the first half of 2020[7]. - The information appliance segment recorded a profit of approximately HKD 5,000,000, a significant improvement from a loss of approximately HKD 53,800,000 in the previous year[38]. - The IDC segment generated a profit of approximately HKD 22,200,000, down from approximately HKD 42,500,000 in the previous year, with rental income of about HKD 27,300,000[38]. - The investment segment reported revenue of approximately HKD 70,800,000, a turnaround from a loss of approximately HKD 311,600,000 in the previous year, primarily due to a net gain of approximately HKD 70,300,000 from fair value adjustments[39]. Market Performance - The overseas market revenue decreased by 12.8% to approximately HKD 192,100,000, with the Australian market revenue down by 20.5% to approximately HKD 138,900,000[40]. - The Hong Kong market revenue fell by 36.0% to approximately HKD 45,600,000 due to market saturation[47]. - The group incurred a foreign exchange loss of approximately HKD 2,100,000 due to the depreciation of the Renminbi against the Hong Kong dollar[43]. Strategic Initiatives - The company is actively developing new products and exploring new markets to enhance its information home appliance business[7]. - The company plans to enhance its IDC business resource allocation and pursue international expansion in key cities and regions[8]. - The company aims to become a leading provider of IDC infrastructure in the big data era[8]. - The management emphasizes the importance of 2020 for the company's strategic goals and operational execution[8]. - The group is actively expanding its IDC business, with a construction contract for its first IDC project in the U.S. valued at approximately USD 62,500,000 (approximately HKD 487,500,000)[47]. - The group aims to enhance its competitive advantage by continuously improving its main products and performance, actively developing new products, and exploring new markets[54]. - The group plans to establish its first IDC in the United States, which is expected to enhance its IDC portfolio and open new revenue sources[57]. Corporate Governance - The company’s main business is investment holding, with detailed performance analysis by business and region available in the consolidated financial statements[70]. - The company’s financial performance and asset summary for the past five fiscal years are detailed in the report[77]. - The board of directors has established a dividend policy that considers financial performance, earnings, and operational needs[75]. - The company’s operational president has relevant experience in the telecommunications, media, and technology sectors[66]. - The company’s independent non-executive directors bring significant financial and auditing experience to the board[64]. - The company has complied with the corporate governance code as per GEM listing rules, with one exception regarding attendance at the annual general meeting[117]. - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a diverse and experienced leadership team[124]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined responsibilities[137]. Environmental and Social Responsibility - The group emphasizes the importance of sustainable development and integrates it into its operational strategies, including compliance with EU regulations on lead-free and non-toxic processes[166]. - The group actively seeks to reduce emissions and waste through innovative technologies and new products, aligning with global trends in emission reduction[168]. - The group requires contractors to comply with ISO14001 environmental management standards and conducts regular assessments to ensure adherence to environmental policies[167]. - The group has implemented measures to control waste generation and promote recycling and resource recovery, fulfilling its corporate social responsibility[168]. - The company promotes green procurement by prioritizing local suppliers and environmentally friendly products when purchasing office supplies and equipment[200]. - The company aims for a "zero waste" goal in waste management, promoting the 3R principles (Reduce, Reuse, Recycle) among employees[185]. - The total greenhouse gas emissions from the Beijing headquarters decreased by 17.62% compared to 2018, while the Zhongshan plant saw a reduction of 98.15%[174]. - The total nitrogen oxides (NOx) emissions from the Beijing headquarters in 2019 were 49.22 kg, down from 59.94 kg in 2018, representing a decrease of approximately 17.6%[172]. - The total sulfur oxides (SOx) emissions from the Beijing headquarters in 2019 were 0.11 kg, a slight decrease from 0.14 kg in 2018[172]. - The total particulate matter (PM) emissions from the Beijing headquarters in 2019 were 4.72 kg, down from 5.74 kg in 2018[172].