Revenue and Profitability - Revenue for the three months ended June 30, 2021, was HKD 14,486,000, representing a 21% increase from HKD 11,975,000 for the same period in 2020[7] - Gross profit for the nine months ended June 30, 2021, was HKD 8,765,000, up 16% from HKD 7,566,000 in the same period last year[7] - Total revenue for the nine months ended June 30, 2021, reached HKD 45,896,000, compared to HKD 29,826,000 for the same period in 2020[25] - Revenue from natural gas sales and services for the three months ended June 30, 2021, was HKD 14,486,000, an increase from HKD 11,975,000 in the same period last year[25] - The group's unaudited revenue increased significantly from approximately HKD 29.83 million for the nine months ended June 30, 2020, to approximately HKD 45.90 million for the nine months ended June 30, 2021, primarily driven by the gas business segment generating approximately HKD 41.63 million[107] Losses and Financial Performance - The company reported a loss before tax of HKD 8,184,000 for the three months ended June 30, 2021, compared to a loss of HKD 4,958,000 for the same period in 2020, indicating a 65% increase in losses[7] - Total comprehensive loss for the nine months ended June 30, 2021, was HKD 12,189,000, a significant reduction from HKD 62,279,000 in the same period last year[9] - The company reported a net loss of HKD 25,476,000 for the nine months ended June 30, 2021[18] - The total loss attributable to owners of the company for the three months ended June 30, 2021, was HKD 7,845,000, compared to HKD 3,067,000 for the same period in 2020, indicating a 156% increase in losses[9] - The company experienced a loss from continuing operations amounting to 2,606 thousand HKD for the nine months ending June 30, 2021, compared to a loss of 2,398 thousand HKD for the same period in 2020[33] - The group reported a loss of approximately HKD 25.48 million for the nine months ended June 30, 2021, compared to a loss of approximately HKD 65.80 million for the same period in 2020, attributed to the absence of impairment on non-current assets[109] Costs and Expenses - Other income for the three months ended June 30, 2021, was HKD 529,000, down from HKD 939,000 in the same period last year, reflecting a 44% decrease[7] - Employee benefits expenses, including salaries, bonuses, and allowances, increased to HKD 4,135,000 for the three months ended June 30, 2021, up 108.3% from HKD 1,986,000 in the same period of 2020[61] - The cost of goods sold for the three months ended June 30, 2021, was HKD 10,222,000, an increase of 31.3% compared to HKD 7,785,000 for the same period in 2020[10] - Operating expenses slightly rose from approximately HKD 33.30 million for the nine months ended June 30, 2020, to approximately HKD 34.53 million for the nine months ended June 30, 2021, due to significant foreign exchange losses of approximately HKD 7.46 million[108] - Financial costs decreased to approximately HKD 3.79 million for the nine months ended June 30, 2021, from HKD 7.11 million for the same period in 2020, mainly due to reduced estimated interest expenses from non-controlling shareholder loans and convertible bonds[109] Shareholder and Capital Structure - The company plans to raise approximately HKD 55.32 million through a rights issue to redeem unpaid bonds and cover operational costs[21] - The company issued a total of 260,000,000 shares at a price of HKD 0.05 per share, resulting in a capital increase of HKD 6,500,000 and a share premium of HKD 5,680,000 after deducting costs of HKD 820,000[72] - The company proposed a capital restructuring to reduce the par value of shares from HKD 0.50 to HKD 0.01, which was approved by shareholders on April 21, 2021[104] - The capital reduction was confirmed by the Grand Court of the Cayman Islands on August 3, 2021, resulting in a decrease of the issued share capital from HKD 45,586,000 to HKD 911,720[126] Governance and Compliance - The company adhered to all provisions of the corporate governance code, except for the separation of the roles of Chairman and CEO, which has not been appointed since April 19, 2018[139] - The audit committee reviewed the unaudited condensed consolidated financial statements and quarterly reports for the nine months ending June 30, 2021[142] - The quarterly report for the nine months ending June 30, 2021, will be published on the Hong Kong Stock Exchange and the company's website[143] Future Outlook and Challenges - The company has not disclosed specific future outlook or guidance in the report[7] - The group has faced challenges due to the COVID-19 pandemic and escalating tensions between the US and China, leading to uncertainty and adverse impacts on overall business performance[122] - The company plans to be more cautious and conservative in seeking new potential mergers, business combinations, and expansions to maintain growth and profitability[124] Taxation and Liabilities - The company did not have any taxable profits for the nine months ending June 30, 2021, thus no corporate income tax provision was required[31] - The effective tax rate for the company's subsidiaries in China remains at 25% for the year 2021[30] - The company has no income tax liabilities in regions such as the Cayman Islands, Samoa, Seychelles, and the British Virgin Islands[29] - As of June 30, 2021, the company has fully provided for a liability of RMB 8,587,000 (approximately HKD 10,573,000) related to a legal dispute with a supplier[98] - As of June 30, 2021, the total provision for the debt claimed by Yichang Plaintiff amounts to RMB 8,587,000 (approximately HKD 10,573,000) which has been fully provided as the group's liability[119] Shareholder Information - The company’s board member, Mr. Ng Kwok Ming, holds 3,687,500 shares, representing 4.04% of the company's equity[130] - Hong Kong Haoyue International Trading Co., Ltd. held 11,005,500 shares, representing 12.07% of the issued share capital as of June 30, 2021[133] - The transfer of 11,005,500 shares from Hong Kong Haoyue International Trading Co., Ltd. to Zhonggang Financial Services Co., Ltd. occurred, making Zhonggang the major shareholder as of the report date[134] Employment and Workforce - As of June 30, 2021, the group employed 59 staff members, a decrease from 62 staff members as of June 30, 2020[129]

Financial Performance - For the six months ended March 31, 2021, the Group reported revenue of HKD 31,410,000, an increase of 20.5% compared to HKD 26,175,000 for the same period in 2020[7] - The gross profit for the six months ended March 31, 2021, was HKD 5,235,000, representing a 38.1% increase from HKD 3,792,000 in the previous year[7] - The Group recorded a loss before tax of HKD 17,771,000 for the six months ended March 31, 2021, a significant improvement from a loss of HKD 65,764,000 in the same period of 2020[7] - Other income for the six months ended March 31, 2021, was HKD 2,077,000, up from HKD 1,458,000 in the previous year, indicating a 42.5% increase[7] - The total comprehensive loss for the six months ended March 31, 2021, was HKD 6,862,000, compared to a loss of HKD 51,375,000 for the same period in 2020[9] - Basic loss per share from continuing and discontinued operations for the six months ended March 31, 2021, was HKD 16.31, improving from HKD 39.69 in the previous year[11] - The company reported a net loss of HKD 17,460,000 for the six months ended March 31, 2021, compared to a loss of HKD 10,201,000 in the previous period[25] - The total loss from continuing operations for the six months ended March 31, 2021, was HKD (17,771) thousand, a significant improvement from a loss of HKD (65,764) thousand for the same period in 2020, representing a reduction of approximately 73%[46] - The loss for the six months ended March 31, 2021, was approximately HKD 17,460,000, significantly improved from a loss of HKD 61,061,000 for the same period in 2020[160] Revenue Breakdown - Revenue from external customers for the gas business reached HKD 27.18 million, while the leasing business generated HKD 4.11 million, totaling HKD 31.41 million for the six months ended March 31, 2021[44] - Revenue from the sale of natural gas for the six months ended March 31, 2021, was HKD 26,560 thousand, up 65% from HKD 16,088 thousand in the same period of 2020[48] - The leasing business segment generated revenue of approximately HKD 3,324,000 for the six months ended March 31, 2021[158] Expenses and Costs - The Group's administrative expenses increased to HKD 19,452,000 for the six months ended March 31, 2021, compared to HKD 14,959,000 in the same period of 2020[7] - The company has implemented various cost control measures to tighten operational costs, indicating a focus on improving financial stability[30] - General and administrative expenses increased to HKD (15,326) thousand for the six months ended March 31, 2021, from HKD (11,872) thousand in the same period of 2020, reflecting a rise of about 29%[46] - Total operating expenses decreased from approximately HKD 25,811,000 to about HKD 23,709,000 for the six months ended March 31, 2021, primarily due to significant foreign exchange differences and reduced amortization and depreciation[159] Assets and Liabilities - As of March 31, 2021, non-current assets increased to HKD 191,495,000 from HKD 184,615,000, representing a growth of approximately 3.8%[13] - Current liabilities rose to HKD 131,091,000, up from HKD 118,415,000, indicating an increase of about 10.2%[13] - Total assets for the group as of March 31, 2021, amounted to HKD 206.23 million, with total liabilities of HKD 135.03 million[44] - The total borrowings of the group as of March 31, 2021, amounted to approximately HKD 123,363,000, a slight decrease from HKD 127,657,000 as of September 30, 2020[162] - The group's total asset-liability ratio was approximately 451% as of March 31, 2021, compared to 374% as of September 30, 2020[162] Cash Flow and Liquidity - The net cash used in operating activities for the six months ended March 31, 2021, was HKD (94,000), a significant improvement compared to HKD (13,154,000) for the same period in 2020[23] - Cash and cash equivalents at the end of the period were HKD 2,190,000, down from HKD 4,610,000, reflecting a decrease of approximately 52.5%[23] - The company has estimated its cash needs for the next 12 months and has implemented plans to alleviate liquidity pressure, including support from shareholders and directors for sufficient funding to meet all upcoming debts[26] Shareholder and Capital Structure - The company proposed a capital restructuring to reduce the par value of shares from HKD 0.50 to HKD 0.01 and to raise approximately HKD 58.35 million through a rights issue[154] - The company plans to issue 364,688,000 rights shares at a subscription price of HKD 0.16 per share following the capital restructuring[154] - The company issued a total of 260,000,000 shares at HKD 0.05 each on March 27, 2020, raising HKD 6,500,000 in capital[123] Strategic Initiatives - The Group aims to enhance its market presence and explore new strategies for growth in the upcoming periods[7] - The company expects continued growth in revenue driven by the expansion of its natural gas sales and leasing operations in the upcoming quarters[48] - The company has initiated new strategies to enhance operational efficiency and reduce costs, which are expected to positively impact future profitability[46] Governance and Compliance - The company has complied with all corporate governance codes except for the separation of the roles of Chairman and CEO, which has not been appointed since April 19, 2018[188] - The audit committee has reviewed the unaudited consolidated financial statements for the six months ending March 31, 2021[192] - The company is actively seeking suitable candidates to fill the vacancy of Chairman to comply with GEM listing rules[189] Market Conditions and Risks - The company anticipates ongoing challenges in its business environment due to the global COVID-19 pandemic and geopolitical tensions, leading to market volatility and uncertainty[173] - The board will adopt a more cautious and conservative approach in seeking new potential mergers, acquisitions, and business expansions to maintain growth and profitability[175] Employment and Human Resources - As of March 31, 2021, the company employed 62 staff, an increase from 58 staff as of March 31, 2020[180]

Financial Performance - For the three months ended December 31, 2020, the company reported revenue of HKD 15,739,000, an increase of 5.3% compared to HKD 14,945,000 in the same period of 2019[6] - The cost of sales for the same period was HKD 13,580,000, resulting in a gross profit of HKD 2,159,000, down 27.5% from HKD 2,976,000 year-on-year[6] - The company recorded a loss before tax of HKD 10,289,000, an improvement from a loss of HKD 11,451,000 in the previous year[6] - Total comprehensive loss for the period was HKD 2,548,000, compared to a loss of HKD 6,738,000 in the same quarter of 2019[6] - The basic and diluted loss per share for the period was HKD 11.52, compared to HKD 8.72 in the previous year[8] - The company reported a net loss of HKD 10,191,000 for the three months ended December 31, 2020[15] - The group reported a loss of approximately HKD 10,191,000 for the three months ended December 31, 2020, compared to a loss of approximately HKD 11,461,000 for the same period in 2019[59] - The company reported a loss from continuing and discontinued operations of HKD 8,883,000 for the three months ended December 31, 2020, compared to a loss of HKD 5,686,000 for the same period in 2019[34] Revenue and Sales - Revenue from the sale of natural gas was HKD 14,925,000, an increase from HKD 13,590,000 in the same period last year, representing a growth of 9.9%[21] - Total revenue from continuing operations was HKD 15,739,000, compared to HKD 14,945,000 in the previous year, reflecting an increase of 5.3%[21] - Natural gas sales volume increased by approximately 17% to about 5,001,000 cubic meters for the three months ended December 31, 2020, compared to 4,278,000 cubic meters for the same period in 2019[62] Cost Management - The company has implemented cost control measures to tighten operational costs, resulting in a financial cost of HKD 1,387,000, down from HKD 2,599,000 in the previous year[26] - Operating expenses decreased from approximately HKD 12,620,000 to approximately HKD 12,407,000 for the same periods, attributed to significant foreign exchange differences and reduced amortization and depreciation[58] - Financial costs decreased to approximately HKD 1,387,000 from HKD 2,599,000, mainly due to reduced estimated interest expenses from non-controlling shareholder loans and convertible bonds[59] Government Support and Funding - The company has received government subsidies of HKD 509,000 related to the COVID-19 employment support scheme[26] - The company plans to raise approximately HKD 55.32 million through a rights issue, with HKD 48 million allocated for redeeming outstanding bonds[18] - Shareholders and directors have agreed to provide adequate funding to ensure the company can meet its short-term debt obligations[16] Capital Structure and Shareholder Information - The company is undergoing a capital restructuring, which includes a share consolidation and a rights issue to raise approximately HKD 58.35 million[43] - The company had a total issued and paid-up share capital of HKD 45,586,000 as of December 31, 2020, compared to HKD 32,586,000 in 2019[40] - The company plans to issue 364,688,000 rights shares at a subscription price of HKD 0.16 per share following the capital restructuring[43] - The major shareholder, Hong Kong Haoyue International Trading Co., Ltd., holds 11,005,500 shares, representing approximately 12.07% of the issued share capital[74] Taxation and Legal Matters - The company reported a tax credit of HKD 98,000, down from HKD 475,000 in the previous year[6] - The tax rate for the company's subsidiaries in China remains at 25%, with no tax provisions required for the current period due to no taxable profits[24] - As of December 31, 2020, the company has fully provided for a debt of RMB 8,587,000 (approximately HKD 10,219,000) related to a legal dispute with a supplier[65] Employee and Operational Insights - The company reported employee benefit expenses of HKD 104,000 for the three months ended December 31, 2020, compared to HKD 95,000 in 2019[31] - The company employed 59 staff as of December 31, 2020, an increase from 57 staff a year earlier[71] Market Challenges and Future Outlook - The company is facing challenges due to the COVID-19 pandemic and escalating tensions between the US and China, which are expected to impact overall business performance[68] - The company aims to enhance its market presence and explore new strategies for growth in the upcoming quarters[6] - The company is being cautious in seeking new potential mergers, acquisitions, and expansions to maintain growth and profitability amid market uncertainties[68] Governance and Compliance - The company has adhered to all provisions of the GEM Listing Rules Corporate Governance Code, except for the separation of the roles of Chairman and CEO, which has not been appointed since April 19, 2018[78] - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the period from October 1, 2020, to December 31, 2020, and provided feedback to the Board[80] - The quarterly report for the period from October 1, 2020, to December 31, 2020, will be published on the Stock Exchange and the company's website[80]

環球戰略集團有限公司 GLOBAL STRATEGIC GROUP LIMITED 環 球 戰 略 集 團 有 限 公 司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) (Stock Code 股份代號 : 8007) CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of inve ...

GLOBAL STRATEGIC GROUP LIMITED 環球戰略集團有限公司 (Incorporated in the Cayman Islands with limited liability) 2019/2020 GLOBAL STRATEGIC GROUP LIMITED 環球戰略集團有限公司 環球戰略集團有限公司 （於開曼群島註冊成立之有限公司） ( 股份代號 : 8007) 環球戰略集團有限公司 ( Stock Code : 8007) 2019/2020 第三季季度報告 Third Quarterly Report 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所 上市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風 險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之 證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的 市場。 香港交易及結算所有限公司以及聯交所對本報告的內容概不負責，對其準確性或 完整性亦不 ...

Financial Performance - For the six months ended March 31, 2020, the company reported a revenue of HKD 134,105,000, a slight increase from HKD 132,245,000 in the same period of 2019, representing a growth of approximately 1.4%[5] - The gross profit for the six months ended March 31, 2020, was HKD 3,792,000, down from HKD 4,182,000 in the previous year, indicating a decrease of about 9.3%[5] - The company recorded a loss before tax of HKD 66,469,000 for the six months ended March 31, 2020, compared to a loss of HKD 17,768,000 in the same period of 2019, reflecting an increase in losses of approximately 274.5%[5] - The total comprehensive loss for the six months ended March 31, 2020, was HKD 51,375,000, significantly higher than HKD 13,374,000 in the previous year, marking an increase of about 284.5%[7] - The company reported a basic loss per share of HKD 1.984 for the six months ended March 31, 2020, compared to HKD 0.840 in the same period of 2019, indicating a deterioration in performance[8] - The company reported a net loss of HKD 61,061 million for the six months ended March 31, 2020[20] - The company’s total revenue for the six months ending March 31, 2020, was significantly impacted by the ongoing economic conditions[55] - The loss for the six months ended March 31, 2020, was approximately HKD 61,061,000, a significant increase from a loss of HKD 16,823,000 for the same period in 2019, primarily due to impairment losses related to Yichang Biaodian[157] Assets and Liabilities - As of March 31, 2020, the total non-current assets amounted to HKD 218,988,000, a decrease from HKD 242,422,000 as of September 30, 2019, representing a decline of approximately 9.6%[9] - Current assets were reported at HKD 389,300,000 as of March 31, 2020, down from HKD 436,512,000 as of September 30, 2019, indicating a decrease of about 10.8%[9] - The company’s equity attributable to owners decreased from HKD 66,984 million to HKD 59,329 million, representing a decline of approximately 11.5%[12] - The total equity of the company fell from HKD 277,783 million to HKD 238,758 million, indicating a decrease of around 14%[12] - The total amount of trade and other payables as of March 31, 2020, is HKD 49,081,000, a decrease from HKD 50,537,000 as of September 30, 2019[82] - The group has a total of HKD 36,007,000 in non-convertible bonds as of March 31, 2020, with HKD 33,507,000 classified as current liabilities[84] - The group has issued non-convertible bonds totaling HKD 5,000,000 at a fixed interest rate of 12%, with repayment due on November 28, 2020[88] Cash Flow and Financing - The net cash used in operating activities for the six months ended March 31, 2020, was HKD (13,154) million, compared to HKD (14,729) million for the same period in the previous year[19] - Cash and cash equivalents at the end of the period increased to HKD 4,610 million from HKD 1,152 million, showing a significant improvement[19] - The company issued 260,000,000 new shares at a price of HKD 0.029, raising approximately HKD 7,163 million[21] - The group faces cash flow interest rate risk due to potential changes in the benchmark interest rate set by the People's Bank of China[103] - The total borrowings of the group amounted to approximately HKD 123,299,000 as of March 31, 2020, compared to HKD 120,120,000 as of September 30, 2019, reflecting a slight increase[162] Impairment and Asset Management - The company has recognized an impairment loss of HKD 22,507,000 on property, plant, and equipment for the six months ended March 31, 2020, which was not present in the previous year[5] - The impairment loss recognized for non-current assets for the six months ended March 31, 2020, totaled HKD 40,591 thousand, which includes HKD 22,507 thousand for property, plant, and equipment and HKD 17,936 thousand for intangible assets[72] - The recoverable amount of Yichang Biaodian's assets was assessed at HKD 401,350,000 as of March 31, 2020, with impairment losses recognized for property, plant and equipment, intangible assets, and right-of-use assets totaling HKD 40,591,000[159] Market Strategy and Future Outlook - The company aims to explore new market opportunities and enhance its product offerings to drive future growth, although specific strategies were not detailed in the report[5] - The company plans to expand its market presence and explore new product development opportunities in the upcoming quarters[55] - The company is focusing on strategic acquisitions to enhance its operational capabilities and market reach[55] - The management expressed confidence in the future of the natural gas and leasing businesses, despite the negative impact of the COVID-19 pandemic on the global economy, particularly in Hubei, China[168] Compliance and Governance - The company has adhered to the corporate governance code as per GEM listing rules, with the exception of not having appointed a chairman since April 19, 2018[186] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended March 31, 2020 and provided feedback to the board[188] - The company confirmed compliance with the mandatory standards for securities trading by all directors during the six months ended March 31, 2020[187] Employee and Shareholder Information - The group employed 58 staff members as of March 31, 2020, an increase from 50 staff members as of March 31, 2019[173] - Major shareholder Hong Kong Haoyue International Trade Co., Ltd. holds 220,110,000 shares, representing approximately 14.08% of the issued share capital[181]

Financial Performance - The company reported revenue of HKD 14,945,000 for the three months ended December 31, 2019, a decrease of 80.1% compared to HKD 74,831,000 for the same period in 2018[5]. - Gross profit for the same period was HKD 2,976,000, representing a gross margin of approximately 19.9%[5]. - The company incurred a loss before tax of HKD 11,936,000, compared to a loss of HKD 39,606,000 in the prior year, indicating a 69.9% improvement[5]. - Total comprehensive loss for the period was HKD 6,738,000, significantly reduced from HKD 35,051,000 in the previous year, reflecting an 80.8% decrease[5]. - Basic loss per share was HKD 0.436, down from HKD 2.628 in the same quarter of the previous year[7]. - The company reported a non-controlling interest loss of HKD 5,686,000 for the period, compared to HKD 34,257,000 in the prior year[7]. - The company recorded a basic loss per share of HKD (5,686,000) for the three months ended December 31, 2019, compared to a loss of HKD (34,257,000) for the same period in 2018, indicating an improvement in loss[24]. - The loss for the three months ended December 31, 2019, was approximately HKD 6,738,000, significantly improved from a loss of HKD 35,051,000 in the prior year[37]. Revenue and Sales - The company reported revenue from customer contracts for the three months ended December 31, 2019, totaling HKD 14,945,000, compared to HKD 74,831,000 for the same period in 2018, representing a decrease of approximately 80%[19]. - The company's revenue from the sale of natural gas was HKD 13,590,000 for the three months ended December 31, 2019, slightly up from HKD 13,544,000 in the same period of 2018[19]. - The group's revenue for the three months ended December 31, 2019, was approximately HKD 14,945,000, a decrease from HKD 74,831,000 for the same period in 2018, primarily from gas sales and leasing[37]. Operational Efficiency and Cost Management - The company is focused on improving operational efficiency and reducing costs to enhance profitability in future quarters[5]. - Operating expenses decreased from approximately HKD 41,234,000 in the previous year to about HKD 15,704,000 for the three months ended December 31, 2019[37]. - The company's financial costs for the three months ended December 31, 2019, were approximately HKD 2,603,000, down from HKD 11,030,000 in the same period of the previous year[37]. - The management plans to optimize operational efficiency across all business segments and seek growth opportunities through mergers and acquisitions[45]. Governance and Compliance - The board of directors confirmed that the financial information presented is accurate and complete, with no misleading elements[3]. - The company has established an audit committee to review its annual reports, financial statements, and risk management systems[70]. - The company has complied with all provisions of the GEM Listing Rules Corporate Governance Code, except for the separation of the roles of Chairman and CEO[69]. - The company’s independent non-executive directors have confirmed that related party transactions are conducted on normal commercial terms and are in the best interest of shareholders[49]. - The company’s auditor issued an unqualified opinion regarding the related party transactions disclosed[49]. - The company plans to continue reviewing its governance structure and will appoint a suitable candidate as Chairman when identified[69]. Future Outlook - The company anticipates potential business slowdown for the remainder of 2020 due to the adverse effects of the COVID-19 pandemic, particularly in Hubei Province[43]. - The company continues to explore market expansion opportunities and potential strategic partnerships to drive growth[5]. Capital Expenditures and Investments - The company has capital expenditures related to the acquisition of property, plant, and equipment amounting to HKD 7,217,000 as of December 31, 2019, compared to HKD 7,102,000 in 2018[30]. - The company acquired 100% equity of Lida Insurance Brokerage Limited for HKD 2,373,000, completed on October 31, 2019[32]. - The company completed the sale of its entire stake in Digital Commerce Limited for HKD 2,500,000 on January 14, 2020[34]. Employee and Shareholder Information - The company employed 57 employees as of December 31, 2019, an increase from 50 employees as of December 31, 2018[51]. - The major shareholder, Hong Kong Haoyue International Trading Co., Ltd., holds 223,200,000 shares, representing approximately 17.12% of the issued share capital[62]. - As of December 31, 2019, the company had no purchases, sales, or redemptions of its listed securities during the three months ending[68]. Taxation and Accounting - The company has not recognized any tax provision for the three months ended December 31, 2019, as there was no taxable profit[23]. - The company’s deferred tax liabilities for the three months ended December 31, 2019, amounted to HKD (475,000), compared to HKD (442,000) for the same period in 2018[19]. - The company has not applied any new or revised accounting standards that have not yet come into effect, and the impact of potential future standards is still being evaluated[18]. - The company’s weighted average number of ordinary shares for basic loss per share calculation was 1,303,440,000 for the three months ended December 31, 2019[24].

Financial Performance - Revenue for the year ended September 30, 2019, was HK$330,995,000, a significant increase from HK$108,716,000 in 2018, representing a growth of 204%[14] - The company reported a loss of HK$63,662,000 for the year, an improvement compared to a loss of HK$88,431,000 in the previous year, indicating a reduction in losses by approximately 28%[14] - Basic loss per share improved to HK(2.42) cents from HK(5.89) cents in 2018, reflecting a 59% reduction in loss per share[14] - Gross profit for the same period was approximately HK$12,410,000, up from approximately HK$6,048,000 for the year ended 31 December 2018[51] - The net loss decreased by 28% to approximately HK$63,662,000 for the period from 1 January 2019 to 30 September 2019, compared to a loss of approximately HK$88,431,000 for the year ended 31 December 2018[57] - Total operating expenses decreased by 43% to approximately HK$50,814,000 for the period, compared to approximately HK$88,839,000 for the year ended 31 December 2018[57] - Finance costs were approximately HK$8,203,000 for the period, down from approximately HK$25,697,000 for the year ended 31 December 2018[57] Asset and Liability Management - Non-current assets decreased to HK$436,512,000 from HK$488,312,000, a decline of 11% year-over-year[14] - Current liabilities increased to HK$110,412,000 from HK$61,903,000, representing an increase of 78%[14] - Equity decreased to HK$277,783,000 from HK$357,415,000, a decline of 22%[14] - The current assets to current liabilities ratio dropped to 0.5 from 1.1, indicating a decrease in liquidity[14] - The assets to equity ratio increased to 1.8 from 1.5, suggesting a higher leverage position[14] - The Group's total borrowings amounted to approximately HK$120,120,000 as of 30 September 2019, an increase from HK$98,046,000 at the end of 2018[79] - The Group's total cash and bank balances were approximately HK$3,325,000 as of 30 September 2019, up from HK$2,297,000 at the end of 2018[79] - The Group's total gearing ratio was approximately 42% as of 30 September 2019, compared to 27% at the end of 2018[79] - The current ratio of the Group was approximately 0.5 as of 30 September 2019, down from 1.1 at the end of 2018[79] Business Segments and Revenue Sources - The Group recorded segment revenue of approximately HK$30,923,000 from the natural gas business, down 26.5% from HK$42,147,000 in 2018[25] - Revenue from the copper trading segment was approximately HK$68,691,000, an increase of 6.7% compared to HK$64,529,000 in 2018[25] - The petrochemical products business launched in 2019 generated segment revenue of approximately HK$226,379,000[25] - The leasing business of the steel support axial force servo system recorded segment revenue of approximately HK$5,002,000, up 145.5% from HK$2,040,000 in 2018[25] - Revenue from copper trading was approximately HK$68,691,000 for the period, compared to approximately HK$64,529,000 for the year ended 31 December 2018[53] - Revenue from petrochemicals trading, which commenced in 2019, generated approximately HK$226,379,000 for the period from 1 January 2019 to 30 September 2019[53] - Revenue from natural gas and pipeline installation services was approximately HK$30,923,000, down from approximately HK$42,147,000 for the year ended 31 December 2018[57] Strategic Initiatives and Future Outlook - The company is focusing on market expansion and new product development as part of its strategic initiatives[14] - Future outlook includes plans for further investment in technology and potential acquisitions to enhance market presence[14] - The Group plans to seek new growth opportunities through mergers and acquisitions, business integration, and expansion[36] - The Group's strategy includes diversifying petrochemical products and expanding its customer network in the petrochemical trading business[35] - The Group aims to optimize operational efficiency in its current business segments, particularly in the insurance broker and petrochemical commodity trading sectors[90] - The Group is actively seeking new growth opportunities through mergers and acquisitions to sustain growth and profitability[91] Legal and Compliance Matters - The Group's management performed impairment testing on assets belonging to Yichang Biaodian due to ongoing losses since acquisition[60] - The management will continue to assess the potential outcomes of the ongoing legal case with Yichang Biaodian[88] - As of September 30, 2019, the Group had only repaid RMB 200,000 of the overdue amount owed to Yichang Biaodian, leading to legal action for enforcement of settlement[88] - A contingent liability of approximately RMB8,787,000 (equivalent to approximately HK$10,006,000) was fully provided as liabilities of the Group at 31 December 2018[84] - A provision of RMB 8,787,000 (approximately HK$10,006,000) was fully recognized as a liability as of December 31, 2018, related to the dispute with Yichang Biaodian[87] Share Capital and Options - The company issued a convertible bond of HK$20,000,000 with an interest rate of 10% per annum, due in 2020, convertible at an initial price of HK$0.54 per share[182] - Upon full conversion of the outstanding convertible bonds, the company may issue an additional 37,037,037 shares, increasing the total issued shares to 1,340,477,037[182] - As of December 31, 2018, a total of 58,600,000 share options have been granted under the share option scheme[185] - During the reporting period, 16,400,000 share options were forfeited[188] - The maximum number of shares that can be issued upon exercise of all outstanding share options must not exceed 30% of the issued share capital of the company[187] - The exercise price of options under the scheme is determined based on the highest of the nominal value, the closing price on the date of grant, or the average closing price for the preceding five business days[187] - The total number of share options held by directors was 26,400,000 at the beginning of 2019[194] - The exercise price for the share options ranges from HK$0.466 to HK$0.785[194] - The closing price immediately before the date of grant for the share options was between HK$0.475 and HK$0.555[194] - The exercise period for the share options spans from December 21, 2017, to January 18, 2020[194] - No share options were granted to any single grantee exceeding 1% of the issued shares in any twelve-month period without prior shareholder approval[193] - The company has a policy to adjust the exercise price of share options based on the highest of three specified prices[193] Management and Employment - The Group employed 56 staff members as of September 30, 2019, an increase from 50 staff as of December 31, 2018[101] - The Group's management anticipates challenges in 2020 due to uncertainties from Sino-US trade tensions and a slowdown in the Chinese property market, impacting economic growth[90] Shareholder Information - The total interests of Mr. Cheung Tuen Ting in the company are 62,000,000 shares, representing 4.76% of the total[167] - Mr. Wu Guoming holds 138,200,000 shares, which accounts for 10.60% of the total interests in the company[167] - The interests of independent non-executive directors in the company are minimal, with each holding 600,000 shares, representing 0.05%[167] - The company has not disclosed any significant transactions involving directors or their connected entities during the reporting period[160] - The report indicates that no director or chief executive had any short positions in the shares or debentures of the company as of September 30, 2019[169] - As of September 30, 2019, Hong Kong Hao Yue International Trading Co., Limited holds 223,200,000 shares, representing approximately 17.12% of the issued share capital[176]