Financial Performance - For the first quarter ended March 31, 2023, the company reported total revenue of HKD 9,293,000, an increase of 2.8% compared to HKD 9,042,000 in the same period of 2022[5]. - Other income for the first quarter was HKD 306,000, significantly up from HKD 13,000 in the previous year[5]. - The operating profit for the quarter was HKD 1,996,000, a turnaround from an operating loss of HKD 266,000 in Q1 2022[5]. - The profit attributable to owners of the company for the period was HKD 1,921,000, compared to a loss of HKD 300,000 in the same quarter last year[5]. - The total comprehensive income for the period was HKD 2,089,000, compared to a loss of HKD 165,000 in Q1 2022[5]. - Basic earnings per share for the quarter was HKD 0.18, compared to a loss per share of HKD 0.03 in the previous year[5]. - The company reported a net gain of HKD 428,000 from other gains and losses, compared to a loss of HKD 730,000 in the same period last year[5]. - The company achieved a profit before tax of approximately HKD 1.9 million for the three months ended March 31, 2023, compared to a loss of HKD 0.3 million in the same period last year, an increase of about HKD 2.2 million[34]. - The effective tax rate increased to approximately 2.7% for the three months ended March 31, 2023, compared to 0% in the same period last year, due to an increase in profit before tax[42]. Revenue Breakdown - Front office trading solution service revenue was HKD 4,436 thousand, a decrease of 6.5% from HKD 4,745 thousand in the previous year[15]. - Back office settlement solution service revenue increased to HKD 2,639 thousand, up 3.4% from HKD 2,552 thousand in the previous year[15]. - Installation and customization service revenue surged to HKD 1,048 thousand, a significant increase from HKD 478 thousand in the previous year[15]. - Revenue from installation and customization services surged by approximately 119.2%, rising from HKD 0.5 million to HKD 1.0 million[32]. - The geographical revenue breakdown showed that Hong Kong contributed HKD 8,134 thousand, a decrease from HKD 8,788 thousand in the previous year[19]. Cost Management - Employee costs decreased to HKD 5,533,000 from HKD 5,651,000 in Q1 2022, reflecting a reduction of 2.1%[5]. - Total operating expenses decreased to HKD 1,893 thousand from HKD 2,329 thousand in the previous year, reflecting a reduction of approximately 18.7%[18]. - Other operating expenses decreased by approximately 18.7%, from HKD 2.3 million to HKD 1.9 million, attributed to a reduction in legal and professional fees[40]. - Employee costs decreased by approximately 2.1%, from HKD 5.7 million to HKD 5.5 million, mainly due to a reduction in share-based payment expenses[38]. Future Outlook - The company plans to focus on expanding its wealth management solutions customer base and improving user trading applications despite ongoing macroeconomic challenges[30]. - The company aims to maintain a prudent approach to cost control and risk management while seizing market opportunities for sustainable business growth[30]. - The company provided a future outlook with a revenue growth guidance of 10-15% for the next quarter[65]. - New product launches are expected to contribute an additional HKD 30 million in revenue by Q2 2023[65]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of 2024[65]. - Research and development expenses increased by 12%, focusing on enhancing technology capabilities[65]. - The company is exploring potential acquisitions to strengthen its market position, with a budget of HKD 50 million allocated for this purpose[65]. - A new strategic partnership was announced, expected to enhance service offerings and increase customer retention by 15%[65]. - The company plans to implement a new customer loyalty program aimed at increasing repeat purchases by 20%[65]. - Overall, the company remains optimistic about achieving its long-term growth targets despite market challenges[65]. Shareholder Information - As of March 31, 2023, the trustee held 88,280,000 shares under the share incentive plan, representing 7.18% of the issued shares[50]. - The board approved the grant of a total of 9,280,000 incentive shares to 45 selected individuals on January 20, 2022, with vesting conditions for 980,000 shares on the grant date, 4,640,000 shares by December 31, 2022, and 3,660,000 shares by December 31, 2023[50]. - Quantsmile (BVI) Limited holds 411,902,870 shares, accounting for 33.49% of the issued shares[53]. - 如鷹企業顧問有限公司 and 好管家基金會 collectively hold 664,296,910 shares, representing 54.01% of the issued shares[53]. - Financial Data Technologies Limited and Mr. 聶凡淇 each hold 130,000,000 shares, which is 10.57% of the issued shares[53]. - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the three months ended March 31, 2023[61]. - The share incentive plan is effective for a period of 10 years from its adoption date, which was August 12, 2019[49]. Governance and Compliance - The company has established an audit committee to oversee financial reporting and internal controls, consisting of three independent non-executive directors[60]. - No competitive interests or conflicts of interest were reported among directors or major shareholders as of March 31, 2023[57]. - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, with no significant impact on the financial statements[12]. - The company continues to evaluate the potential impact of future accounting standards on its financial performance and position[12]. - The company has not disclosed any significant events after March 31, 2023, up to the report date[62].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 eBROKER GROUP LIMITED 電 子 交 易 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8036） 截至二零二三年三月三十一日止年度之 第一季度業績公告 電子交易集團有限公司（「本公司」）董事會謹此宣佈本公司及其附屬公司截至二零二三年三月三十一 日止三個月之未經審核第一季度業績。本公告列載本公司二零二三年第一季度報告全文，並符合香 港聯合交易所有限公司GEM證券上市規則中有關季度業績初步公告附載的資料之要求。本公司二 零二三年第一季度報告的印刷版本將於二零二三年五月中寄發予本公司股東，並可於其時在聯交所 GEM網站www.hkgem.com及本公司網站www.ebrokersystems.com閱覽。 承董事會命 電子交易集團有限公司 主席 陳立德 香港，二零二三年五月九日 截至本公告日期，執行董事為陳立德先生及盧志豪先生，及獨立非執行董事為陳智光先 ...

Financial Performance - The company recorded revenue of approximately HKD 38.6 million for the year ended December 31, 2022, a decrease of about 7.3% compared to HKD 41.6 million for the previous year[8]. - Profit attributable to owners increased by approximately 503.1% to HKD 2.0 million, up from HKD 0.3 million in the previous year[8]. - The decrease in revenue was primarily due to a significant reduction in installation and customization services, which fell by approximately 22.7% to HKD 4.2 million[13]. - Revenue from front office trading services decreased by approximately 6.1% to HKD 18.5 million, attributed to unfavorable business and economic conditions[13]. - The group's profit before tax for the year ended December 31, 2022, was approximately HKD 2.0 million, an increase of about 752.4% compared to approximately HKD 200,000 for the year ended December 31, 2021[17]. - The group's net profit attributable to owners for the year ended December 31, 2022, reached approximately HKD 2.0 million, an increase of about 503.1% from approximately HKD 0.3 million for the year ended December 31, 2021[23]. - Total revenue for the year ended December 31, 2022, was HKD 38,584,000, a decrease of 7.4% from HKD 41,631,000 in 2021[170]. - Operating profit increased significantly to HKD 2,084,000 from HKD 356,000, marking a growth of 485.1%[170]. - Profit attributable to owners of the company for the year was HKD 1,972,000, compared to HKD 327,000 in the previous year, representing a substantial increase of 503.1%[170]. - Basic earnings per share rose to HKD 0.18 from HKD 0.03, reflecting a growth of 500%[170]. Cost Management - Employee costs for the year ended December 31, 2022, were approximately HKD 23.7 million, a decrease of about 4.3% from approximately HKD 24.8 million for the year ended December 31, 2021[19]. - Other operating expenses for the year ended December 31, 2022, were approximately HKD 9.2 million, a decrease of about 33% from approximately HKD 13.7 million for the year ended December 31, 2021[21]. - The company will continue to adopt a prudent approach to cost control and risk management in response to external environmental changes[12]. Strategic Initiatives - The company plans to focus on expanding its wealth management solution customer base and improving user trading applications[12]. - The company aims to expand its management cloud services to local brokerage clients as part of its growth strategy[12]. - The company has secured a procurement contract for an IT system optimization project with a leading information and communication technology solutions provider in China[8]. - The company anticipates a more optimistic market sentiment with the easing of pandemic controls and the reopening of borders in mainland China[12]. Shareholder Information - The distributable reserves available to the company's owners as of December 31, 2022, were approximately HKD 55,585,000, a decrease from HKD 58,394,000 in the previous year[70]. - Sales to the top five customers accounted for approximately 25.2% of total sales for the year, up from 23.6% in the previous year, with the largest customer contributing about 7.1%[72]. - Purchases from the top five suppliers represented approximately 94.7% of total purchases, a slight decrease from 95.9% in the previous year, with the largest supplier accounting for about 39.1%[72]. - The company did not recommend a final dividend for the year ended December 31, 2022, consistent with the previous year[61]. Governance and Compliance - The company has established compliance procedures to ensure adherence to applicable laws and regulations, with regular reviews by the board[106]. - The company has appointed New Baili Finance Limited as its compliance advisor to provide guidance on compliance with applicable laws and GEM Listing Rules[104]. - The board of directors consists of five members, including two executive directors and three independent non-executive directors, ensuring a balanced governance structure[114]. - The company has adopted the corporate governance code as per GEM listing rules, ensuring compliance and transparency in its operations[113]. - The independent auditor, KPMG, was appointed to replace the previous auditor, ensuring continuity and compliance in financial reporting[110]. Risk Management - The company has established a risk management and internal control system that includes identifying, assessing, and mitigating risks to protect assets and shareholder interests[140]. - The risk management process involves identifying, assessing, responding to, monitoring, and reporting risks, with the board prioritizing identified risks[141]. - An independent professional has been appointed to review the effectiveness of the risk management and internal control systems for the year ended December 31, 2022[144]. Research and Development - The company has established an internal R&D team, hiring 20 employees by the end of 2022 to enhance its financial solutions[43]. - The company has completed the establishment of its R&D center in Shenzhen, China, which became operational by the end of 2020[45]. - The company believes that maintaining its technical capabilities is crucial for competitive advantage and requires more funding for R&D development[43]. - The company has made a human resource investment of HKD 1.09 million by hiring an experienced business analyst[41]. Financial Position - Total assets amounted to HKD 105,768,000, while total liabilities were HKD 44,740,000, resulting in a net asset value of HKD 61,028,000[173]. - Cash and cash equivalents increased to HKD 23,325,000 from HKD 19,713,000, showing a growth of 18.3%[173]. - The company reported a decrease in other operating expenses to HKD 9,197,000 from HKD 13,724,000, a reduction of 33.3%[170]. - The company’s total equity as of December 31, 2022, was HKD 61,028,000, an increase from HKD 59,550,000 at the end of the previous year, reflecting a growth of approximately 2.5%[174].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 eBROKER GROUP LIMITED 電 子 交 易 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8036） 截至二零二二年十二月三十一日止年度之 年度業績公告 電子交易集團有限公司（「本公司」）董事會謹此宣佈本公司及其附屬公司截至二零二二年十二月 三十一日止年度之經審核年度業績。本公告列載本公司二零二二年年度報告全文，並符合香港聯合 交易所有限公司GEM證券上市規則中有關年度業績初步公告附載的資料之要求。本公司二零二二年 年度報告的印刷版本將於二零二三年三月底之前寄發予本公司股東，並可於其時在聯交所GEM網站 www.hkgem.com及本公司網站www.ebrokersystems.com閱覽。 承董事會命 電子交易集團有限公司 主席 陳立德 香港，二零二三年三月二十三日 截至本公告日期，執行董事為陳立德先生及盧志豪先生，及獨立非執行董事為陳智光先生、廖健 ...

Financial Performance - For the three months ended September 30, 2022, the group reported revenue of HKD 8,820,000, a decrease of 21.9% compared to HKD 11,298,000 for the same period in 2021[8]. - For the nine months ended September 30, 2022, total revenue was HKD 27,193,000, down 13.3% from HKD 31,368,000 in the previous year[8]. - The group recorded a net loss attributable to owners of the company of HKD 320,000 for the three months ended September 30, 2022, compared to a profit of HKD 236,000 in the same period of 2021[8]. - The total comprehensive loss for the three months ended September 30, 2022, was HKD 2,417,000, compared to a comprehensive income of HKD 349,000 for the same period in 2021[8]. - The basic loss per share for the three months ended September 30, 2022, was HKD (0.03), compared to earnings of HKD 0.02 per share in the same period of 2021[8]. - For the nine months ended September 30, 2022, the group recorded revenue of approximately HKD 27.2 million, a decrease of about 13.3% compared to approximately HKD 31.4 million for the same period in 2021[102]. - The profit attributable to the company's owners for the nine months ended September 30, 2022, was approximately HKD 0.9 million, an increase of about 150.5% from approximately HKD 0.4 million for the same period in 2021[102]. - The group recorded a total comprehensive loss attributable to the company's owners of approximately HKD 2.1 million for the nine months ended September 30, 2022, compared to a total comprehensive income of approximately HKD 0.8 million for the same period in 2021[102]. Revenue Breakdown - Front-end trading solution service revenue for the three months ended September 30, 2022, was HKD 4,568,000, down 6% from HKD 4,865,000 in the same period of 2021[77]. - Back-end settlement solution service revenue increased to HKD 2,684,000 for the three months ended September 30, 2022, compared to HKD 2,601,000 in the same period of 2021, reflecting a growth of 3%[77]. - The revenue from installation and customization services significantly decreased to HKD 251,000 for the three months ended September 30, 2022, from HKD 2,088,000 in the same period of 2021, representing a decline of 88%[77]. - Management cloud service revenue for the nine months ended September 30, 2022, was HKD 2,388,000, slightly down from HKD 2,412,000 in the same period of 2021[80]. - Revenue from installation and customization services decreased significantly by approximately 64.9%, from about HKD 4.2 million to approximately HKD 1.5 million for the nine months ended September 30, 2022[105]. - Revenue from backend settlement services increased by approximately 2.2%, from about HKD 7.7 million to approximately HKD 7.8 million for the nine months ended September 30, 2022[105]. Operating Expenses - The group experienced a significant increase in operating expenses, totaling HKD 5,978,000 for the three months ended September 30, 2022, compared to HKD 3,221,000 in the same period of 2021[8]. - Total operating expenses for the nine months ended September 30, 2022, amounted to HKD 5,377,000, a decrease of 44% compared to HKD 9,552,000 for the same period in 2021[83]. - Employee costs decreased by approximately HKD 1.4 million, from HKD 18.6 million for the nine months ended September 30, 2021, to the current period[110]. - Other operating expenses decreased by approximately 43.7%, from HKD 9.6 million to approximately HKD 5.4 million, primarily due to a reduction in rent and rates of approximately HKD 1.0 million[112]. - Depreciation expenses increased by approximately HKD 0.4 million, representing a 30.0% increase compared to approximately HKD 1.4 million for the same period in 2021[111]. Strategic Plans - The group plans to focus on market expansion and new product development to enhance future performance[8]. - The company is exploring potential mergers and acquisitions to strengthen its market position[8]. - The group plans to focus on expanding its wealth management solutions customer base and improving user trading applications[103]. - The group aims to expand its managed cloud services to local brokerage clients as part of its long-term strategy[103]. - The company plans to establish an R&D center in China, with an investment of approximately HKD 10.7 million[125]. Market Conditions and Risks - The management remains cautious about market volatility and is committed to improving operational efficiency[8]. - The group anticipates continued challenges from the COVID-19 pandemic and geopolitical tensions affecting market volatility[103]. - The group will maintain a prudent approach to cost control and risk management in response to external environmental changes[103]. Corporate Governance - The company has adopted and complied with the corporate governance code as per GEM Listing Rules Appendix 15 for the nine months ended September 30, 2022[144]. - All directors confirmed compliance with the trading standards set forth in GEM Listing Rules from January 1, 2022, to September 30, 2022, with no reported violations[145]. - The audit committee, consisting of independent non-executive directors, reviewed the unaudited financial performance for the nine months ended September 30, 2022, ensuring adherence to applicable accounting standards and GEM Listing Rules[149]. Shareholder Information - As of September 30, 2022, Quantsmile (BVI) Limited holds 411,902,870 shares, representing approximately 33.49% of the issued shares[133]. - As of September 30, 2022, 如鷹企業顧問有限公司 holds 664,296,910 shares, representing approximately 54.01% of the issued shares[133]. - Financial Data Technologies Limited holds 130,000,000 shares, representing approximately 10.57% of the issued shares as of September 30, 2022[133]. - The trustee, 交通銀行信託有限公司, holds 101,500,000 shares, representing approximately 8.25% of the issued shares as of September 30, 2022[133]. - The company has not granted any stock options under the stock option plan as of September 30, 2022[138]. - The stock reward plan has granted a total of 9,280,000 reward shares to 45 selected individuals, with 4,640,000 shares vesting on December 31, 2022[141]. - The stock reward plan trustee did not purchase any shares on the stock exchange as of September 30, 2022[141]. - The company has a stock reward plan effective for 10 years from the adoption date, which is January 22, 2019[140]. - No directors or major shareholders have interests in any competing businesses as of September 30, 2022[142]. - The company has no other entities or individuals with interests in its shares that require disclosure under the Securities and Futures Ordinance as of September 30, 2022[137]. Dividend Information - The group did not recommend the payment of dividends for the nine months ended September 30, 2022, compared to zero HKD for the same period in 2021[98]. - The board did not recommend any dividend payment for the nine months ended September 30, 2022, consistent with the previous year[116].

Financial Performance - For the six months ended June 30, 2022, the company reported total revenue of HKD 18,373,000, a decrease of 8.4% compared to HKD 20,070,000 for the same period in 2021[11]. - The operating profit for the six months was HKD 1,305,000, compared to HKD 209,000 in the previous year, indicating a significant increase[11]. - The net profit attributable to owners for the six months was HKD 1,242,000, up from HKD 132,000 in the same period last year, reflecting a substantial improvement[11]. - The company’s total comprehensive income for the six months ended June 30, 2022, was HKD 1,240 thousand, compared to a loss of HKD 173 thousand in the same period of 2021[90]. - Basic earnings per share for the six months ended June 30, 2022, was HKD 1.10, compared to HKD 0.12 for the same period in 2021[102]. - The company reported a pre-tax profit of approximately HKD 1.2 million, an increase of about 590.6% from approximately HKD 180,000 in the same period last year[146]. Cash Flow and Assets - The company’s cash and cash equivalents increased to HKD 20,811,000 from HKD 19,713,000, indicating a positive cash flow situation[14]. - The net cash generated from operating activities for the six months ended June 30, 2022, was HKD 2,225 thousand, compared to a net cash used of HKD 663 thousand in the same period of 2021[84]. - The company recorded a net decrease in cash and cash equivalents of HKD 1,239 thousand for the six months ended June 30, 2022, compared to a decrease of HKD 2,555 thousand in the same period of 2021[84]. - The company’s total assets as of June 30, 2022, were HKD 62,268,000, a slight increase from HKD 61,290,000 at the end of 2021[14]. - The company reported cash and cash equivalents of HKD 4,212 million as of June 30, 2022, compared to HKD 2,833 million as of December 31, 2021[113]. Operational Efficiency - The company reported a decrease in employee costs to HKD 11,190,000 for the six months, down from HKD 12,303,000 in the previous year, indicating improved operational efficiency[11]. - Other operating expenses totaled HKD 3,891,000 for the six months ended June 30, 2022, down 38.6% from HKD 6,331,000 in the same period of 2021[93]. - The company experienced a significant reduction in installation and customization service revenue, which decreased by approximately 41.9% to about HKD 1.2 million from approximately HKD 2.1 million in the previous year[143]. Strategic Plans - The company plans to continue expanding its market presence and investing in new technologies to enhance its service offerings[11]. - The company is focusing on enhancing its product offerings and exploring potential mergers and acquisitions to drive future growth[11]. - The company plans to focus on expanding its wealth management solutions and enhancing user trading applications to improve competitiveness in the fintech market[140]. - The company aims to manage costs and risks prudently while seizing market opportunities for sustainable business growth[140]. Equity and Liabilities - The company’s total equity as of June 30, 2022, was HKD 60,478,000, up from HKD 59,550,000 at the end of 2021, showing growth in shareholder value[14]. - Total liabilities to total assets ratio improved to approximately 10.3% as of June 30, 2022, from 12.2% as of December 31, 2021[118]. - The company has no individual customer contributing more than 10% of total revenue during the period[95]. Investments and R&D - The company has invested HKD 3.45 million in establishing and developing its internal R&D team as of December 2022[186]. - The company has engaged experienced analysts and independent third-party R&D personnel, with investments of HKD 1.16 million and HKD 1.91 million respectively[186]. - The company established a research and development center in Shenzhen, contributing to a reduction in employee costs by approximately HKD 1.1 million[139]. Compliance and Risk Management - The company is evaluating the impact of new accounting standards that may affect future financial reporting, indicating a proactive approach to compliance and financial management[88]. - The company has no foreign currency hedging policy currently in place, but the board continuously monitors foreign exchange risks[163]. - The group anticipates no significant credit risk due to all bank balances being held in recognized banks in Hong Kong[166].

Financial Performance - For the three months ended March 31, 2022, the company reported total revenue of HKD 9,042,000, a decrease of 15.4% compared to HKD 10,682,000 for the same period in 2021[12]. - The company incurred an operating loss of HKD 266,000, compared to an operating profit of HKD 905,000 in the previous year, indicating a significant decline in operational performance[12]. - The net loss attributable to owners of the company for the period was HKD 300,000, contrasting with a profit of HKD 869,000 in the same quarter of 2021[12]. - The basic loss per share for the period was HKD (0.03), compared to earnings per share of HKD 0.08 in the prior year[12]. - Total comprehensive loss attributable to owners of the company was HKD 165,000, compared to total comprehensive income of HKD 860,000 in the previous year[12]. - The company reported other comprehensive income of HKD 135,000 for the period, compared to a loss of HKD 9,000 in the same quarter of 2021[12]. - The group reported a loss attributable to owners of the company of HKD (300) thousand for the three months ended March 31, 2022, compared to a profit of HKD 869 thousand in the same period last year[86]. - The group recorded a revenue of approximately HKD 9.0 million for the three months ended March 31, 2022, a decrease of about 15.9% compared to approximately HKD 10.7 million for the same period in 2021[90]. Revenue Breakdown - Revenue for the three months ended March 31, 2022, was HKD 9,042 thousand, a decrease of 15.4% compared to HKD 10,682 thousand for the same period in 2021[68]. - Front office trading solutions revenue was HKD 4,745 thousand, down 6.8% from HKD 5,092 thousand in the previous year[68]. - Back office settlement solutions revenue increased to HKD 2,552 thousand, up 3.0% from HKD 2,477 thousand year-on-year[68]. - Revenue from front office trading solutions decreased by approximately 6.8% to about HKD 4.7 million for the three months ended March 31, 2022, down from approximately HKD 5.1 million for the same period in 2021[93]. - Revenue from installation and customization services plummeted by approximately 67.5% to about HKD 0.5 million for the three months ended March 31, 2022, down from approximately HKD 1.5 million for the same period in 2021[93]. - The geographical revenue breakdown shows HKD 8,788 thousand from Hong Kong and HKD 254 thousand from Macau for the current period[76]. Cost and Expenses - The company’s financing costs for the period were HKD 33,000, a slight increase from HKD 2,000 in the same period last year[12]. - Employee costs for the three months ended March 31, 2022, were approximately HKD 5.7 million, a decrease of about 6.5% from approximately HKD 6.0 million for the same period in 2021[98]. - Other operating expenses decreased by approximately 26.6% to about HKD 2.3 million for the three months ended March 31, 2022, down from approximately HKD 3.2 million for the same period in 2021[100]. - The group’s tax expense for the three months ended March 31, 2022, was approximately HKD 1,000, a decrease of about 97.1% from approximately HKD 34,000 for the same period in 2021[102]. - Other income, including bank interest and government grants, totaled HKD 13 thousand, down from HKD 43 thousand in the previous year[73]. - Other income decreased from HKD 43,000 for the three months ended March 31, 2021, to approximately HKD 13,000 for the same period in 2022, primarily due to a reduction in government grants[97]. Strategic Focus - The company is focused on enhancing its operational strategies to improve financial performance in the upcoming quarters[12]. - The financial results reflect the challenges faced in the current market environment, prompting a reassessment of growth strategies[12]. - The company continues to explore opportunities for market expansion and potential new product developments[12]. - The group plans to focus on expanding its wealth management solutions and enhancing user trading applications to improve competitiveness in the fintech market[91]. - The company aims to continue executing its business strategies while maintaining a prudent approach to cost control and risk management in response to external market conditions[91]. Shareholder Information - The total number of shares held by directors and key executives as of March 31, 2022, includes 2,291,420 shares and 10,810,010 shares, representing approximately 0.19% and 0.9% of the issued shares, respectively[116]. - Quantsmile (BVI) Limited holds 33.49% of the company's shares, totaling 411,902,870 shares[123]. - 如鷹企業顧問有限公司 owns 54.01% of the company with 664,296,910 shares[123]. - Financial Data Technologies Limited and Mr. 聶凡淇 each hold 10.57% of the company's shares, amounting to 130,000,000 shares[123]. - 交通銀行信託有限公司 acts as a trustee holding 8.25% of the shares, which is 101,500,000 shares[123]. Corporate Governance - The company has established an audit committee to oversee financial reporting and internal controls[131]. - The compliance advisor has been appointed to ensure adherence to applicable laws and GEM listing rules[130]. - The major shareholders have entered into a non-competition agreement as of January 22, 2019[128]. - The company is registered in the Cayman Islands and was listed on the GEM on February 19, 2019[135]. Other Information - No dividends were recommended for the three months ended March 31, 2022, consistent with the previous year[85]. - The group has not identified any individual customer contributing more than 10% of total revenue during the period[77]. - The group is currently assessing the potential impact of new and revised Hong Kong Financial Reporting Standards that will come into effect in the future[66]. - The company has not purchased, sold, or redeemed any of its listed securities during the three months ending March 31, 2022[132]. - No significant events occurred after March 31, 2022, up to the report date[133]. - The company has reallocated the net proceeds from its fundraising to more effectively deploy financial resources, with specific amounts detailed for various initiatives[108]. - The company invested HKD 10.70 million in establishing a research and development center in China, with prior investments of HKD 9.45 million[114]. - The company allocated HKD 0.38 million for marketing expenses related to industry seminars and advertising by the end of December 2022[114]. - The company reported a human resource investment of HKD 1.28 million for network support engineers, with a previous investment of HKD 0.56 million[114]. - The company has incurred costs of HKD 0.27 million for various expenses by the end of December 2022[112]. - The company plans to expand its wealth management solutions business, with a total investment of HKD 2.60 million in 2022[108]. - The stock reward plan has resulted in the trustee holding 101,500,000 shares, with 9,280,000 shares granted to selected participants on January 20, 2022[121]. - The company has not granted any stock options under its stock option plan as of March 31, 2022[119].

Financial Performance - For the year ended December 31, 2021, the group recorded revenue of approximately HKD 41.6 million, an increase of about 3.0% compared to approximately HKD 40.4 million for the year ended December 31, 2020[13]. - The profit attributable to owners of the company decreased by approximately 78.3% to about HKD 0.3 million, down from approximately HKD 1.5 million for the previous year[13]. - The group's revenue for the year ended December 31, 2021, was approximately HKD 41.6 million, an increase of about 3.0% compared to the previous year[17]. - The group's pre-tax profit for the year ended December 31, 2021, was approximately HKD 231,000, a decrease of about 84.3% from approximately HKD 1.5 million in the previous year[21]. - The total comprehensive income for the year was HKD 1,090,000, compared to HKD 2,706,000 in the previous year, a decline of approximately 60%[191]. - The operating profit decreased significantly to HKD 356,000 in 2021 from HKD 1,665,000 in 2020, indicating a decline of approximately 79%[191]. - The net profit attributable to the owners of the company was HKD 327,000 in 2021, down from HKD 1,510,000 in 2020, reflecting a decrease of about 78%[191]. - The company's total assets as of December 31, 2021, were HKD 45,120,000, slightly down from HKD 45,873,000 in 2020[194]. - The company's cash and cash equivalents were HKD 19,713,000 in 2021, down from HKD 28,001,000 in 2020, indicating a decrease of about 30%[194]. - The company reported a basic earnings per share of HKD 0.03 for 2021, compared to HKD 0.14 in 2020, a decline of approximately 79%[191]. Revenue and Income Sources - The decline in profit was primarily due to a decrease of approximately HKD 1.3 million in other income and other gains and losses[15]. - Other income decreased from approximately HKD 2.2 million to about HKD 1.3 million, primarily due to a reduction in government employment support subsidies of about HKD 1.6 million[22]. - Employee costs for the year ended December 31, 2021, were approximately HKD 24.8 million, an increase of about 2.0% from approximately HKD 24.3 million in the previous year[23]. - Other operating expenses increased to approximately HKD 13.7 million, a rise of about 9.8% from approximately HKD 12.5 million in the previous year[25]. Strategic Focus and Investments - The company is focusing on expanding its wealth management solution customer base, improving user trading applications, and extending its management cloud services to local brokerage clients[16]. - The company is investing in new product features, including mobile futures and derivatives trading applications and real-time A-share prices on the Wealto wealth management application[13]. - The company aims to enhance its competitiveness in the fintech market and solidify its position as a major financial software solution provider[16]. - The company plans to expand its wealth management business with a budget of HKD 2.60 million, with an expected completion date by December 2022[46]. - Investment in improving user transaction applications totaled HKD 6.80 million, with an actual utilization of HKD 1.60 million as of September 29, 2021[46]. - The establishment of a research and development center in China has a budget of HKD 10.70 million, with actual utilization of HKD 9.45 million[46]. Risk Management and Challenges - The ongoing COVID-19 pandemic and geopolitical tensions are expected to continue impacting the company's operations and economic recovery[16]. - The group faces risks including potential delays in R&D and challenges in collecting receivables, which could adversely affect its business and financial condition[30]. - The company will continue to adopt a prudent approach to cost management and risk control in response to external environmental changes[16]. Shareholder and Corporate Governance - The group expresses gratitude for the support from all shareholders and stakeholders during the challenging year[14]. - The company has adopted a general dividend policy allowing for the declaration and distribution of dividends based on various financial factors[67]. - The board will regularly review the company's dividend policy based on the overall financial condition and market environment[67]. - The company has maintained the public float required by GEM listing rules as of the report date[111]. - The company has established compliance procedures to ensure adherence to relevant laws and regulations, confirming compliance with GEM listing rules and the Securities and Futures Ordinance[120]. Employee and Management Structure - The company had 52 full-time employees as of December 31, 2021, down from 57 in 2020[41]. - The company established an internal R&D team in 2021, hiring 20 employees by the end of the year to enhance its financial solutions[49]. - The company has recruited two additional marketing personnel to manage digital marketing activities and maintain its social media accounts by the end of 2021[51]. Share Capital and Transactions - The net amount from the share issuance was approximately HKD 23.3 million after deducting related expenses[44]. - The company has a share incentive plan that granted 9,100,010 shares and additional related shares to participants, with vesting dates in 2020 and 2022[92]. - The company has adopted a share option plan allowing for the issuance of up to 123,000,000 shares, representing 10% of the issued shares as of the report date[99]. Environmental, Social, and Governance (ESG) Initiatives - An independent report on environmental, social, and governance (ESG) will be published within three months after the annual report[119]. - The management team emphasized a commitment to sustainability and corporate responsibility initiatives, which are expected to enhance brand reputation and customer loyalty[64].

eBROKER GROUP LIMITED 電子交易集團有限公司 (於開曼群島註冊成立的有限公司) 股份代號：8036 第三季度幸 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM乃為相比其他在聯交所上市的公司帶有更高投資風 險的中小型公司提供上市的市場。有意投資人士應瞭解 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。 鑑於在GEM上市的公司一般為中小型公司，在GEM買賣 的證券可能會較在聯交所主板買賣的證券承受較大市場 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及聯交所對本報告之內容概 不負責，對其準確性或完整性亦不發表任何聲明，並明 確表示，概不會就因本報告全部或任何部分內容而產生 或因依賴該等內容而引致的任何損失承擔任何責任。 本報告乃根據GEM上市規則之規定而提供有關本公司之 資料，各董事願就本報告所載資料共同及個別承擔全部 責任。董事在作出一切合理查詢後，確認就彼等所知及 所信，本報告所載資料在各重大方面均屬準確完整，沒 有誤導或欺詐成分，且並無遺漏其他事項，致使本報告 或當中所載任何陳述產生誤導。 內容 | --- | ...

[Company Information](index=4&type=section&id=Company%20Information) This section provides essential corporate details, including board composition, professional advisors, and registration information [Board of Directors and Committees](index=4&type=section&id=Board%20of%20Directors%20and%20Committees) The company's board comprises executive and independent non-executive directors, supported by audit, remuneration, and nomination committees for robust governance - Board members include Mr. Chan Lap Tak (Chairman), Mr. Lo Chi Ho (Chief Executive Officer) as executive directors, and Mr. Chan Chi Kwong, Mr. Liu Kin Sing, Mr. Au Yeung Po Fung as independent non-executive directors[6](index=6&type=chunk) - The company has an Audit Committee (Chairman: Mr. Au Yeung Po Fung), a Remuneration Committee (Chairman: Mr. Liu Kin Sing), and a Nomination Committee (Chairman: Mr. Chan Lap Tak)[6](index=6&type=chunk) [Professional Advisors and Registration Information](index=4&type=section&id=Professional%20Advisors%20and%20Registration%20Information) The company engages Somerley Capital Limited as compliance advisor and Addo C.P.A. Limited as auditor, with key banking and registration details provided - The compliance advisor is Somerley Capital Limited, and the auditor is Addo C.P.A. Limited[6](index=6&type=chunk) - The principal bankers are DBS Bank (Hong Kong) Limited[6](index=6&type=chunk) - The Hong Kong share registrar is Tricor Investor Services Limited[9](index=9&type=chunk) - The company's stock code is **8036**, and its official website is www.ebrokersystems.com[9](index=9&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income%20(Unaudited)) This section presents the unaudited condensed consolidated financial performance, including revenue, profit/loss, and other comprehensive income [Overview of Financial Performance for the Period](index=6&type=section&id=Overview%20of%20Financial%20Performance%20for%20the%20Period) For the six months ended June 30, 2021, revenue increased by **1.4%** to **HK$20,070 thousand**, and profit attributable to owners surged by **206.9%** to **HK$132 thousand**, despite a loss in the three-month period Financial Performance for the Three Months Ended June 30, 2021 | Metric | 2021 (HK$'000) | 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 9,388 | 10,175 | -7.7% | | Operating (Loss)/Profit | (695) | 154 | -551.3% | | (Loss)/Profit for the Period Attributable to Owners of the Company | (736) | 20 | -3780.0% | | Basic (Loss)/Earnings Per Share (HK cents) | (0.06) | 0.002 | -3100.0% | Financial Performance for the Six Months Ended June 30, 2021 | Metric | 2021 (HK$'000) | 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 20,070 | 19,802 | 1.4% | | Operating (Loss)/Profit | 209 | 235 | -11.1% | | (Loss)/Profit for the Period Attributable to Owners of the Company | 132 | 43 | 206.9% | | Basic (Loss)/Earnings Per Share (HK cents) | 0.01 | 0.004 | 150.0% | [Condensed Consolidated Statement of Financial Position (Unaudited)](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position%20(Unaudited)) This section presents the unaudited condensed consolidated financial position, detailing assets, liabilities, and equity [Analysis of Asset and Liability Structure](index=7&type=section&id=Analysis%20of%20Asset%20and%20Liability%20Structure) As of June 30, 2021, the Group's non-current and current assets increased, alongside current liabilities, while net assets and total equity maintained steady growth Financial Position as of June 30, 2021 | Metric | June 30, 2021 (HK$'000) | December 31, 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 21,301 | 18,066 | 17.9% | | Current Assets | 46,548 | 45,873 | 1.5% | | Current Liabilities | 7,616 | 6,860 | 11.0% | | Net Current Assets | 38,932 | 39,013 | -0.2% | | Net Assets | 58,072 | 56,958 | 2.0% | | Total Equity | 58,072 | 56,958 | 2.0% | [Condensed Consolidated Statement of Changes in Equity (Unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity%20(Unaudited)) This section presents the unaudited condensed consolidated statement of changes in equity, detailing movements in various equity components [Changes in Equity](index=8&type=section&id=Changes%20in%20Equity) For the six months ended June 30, 2021, total equity increased from **HK$56,958 thousand** to **HK$58,072 thousand**, driven by share-based payment reserve and other comprehensive income Changes in Equity for the Six Months Ended June 30, 2021 | Metric | January 1, 2021 (HK$'000) | June 30, 2021 (HK$'000) | Change (HK$'000) | | :--- | :--- | :--- | :--- | | Share Capital | 1,230 | 1,230 | 0 | | Share Premium | 61,921 | 61,921 | 0 | | Capital Reserve | (54,333) | (54,333) | 0 | | Exchange Fluctuation Reserve | 1,244 | 1,516 | 272 | | Shares Held for Share Award Scheme | (21,805) | (21,805) | 0 | | Share-based Payment Reserve | – | 710 | 710 | | Retained Profits | 68,701 | 68,833 | 132 | | **Total Equity** | **56,958** | **58,072** | **1,114** | - Shares granted under the share award scheme led to an increase of **HK$710 thousand** in share-based payment reserve[19](index=19&type=chunk) - Other comprehensive income for the period was **HK$272 thousand**, primarily from exchange differences on translation of financial statements of overseas subsidiaries[19](index=19&type=chunk) [Condensed Consolidated Statement of Cash Flows (Unaudited)](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows%20(Unaudited)) This section presents the unaudited condensed consolidated statement of cash flows, detailing cash movements from operating, investing, and financing activities [Cash Flow Analysis](index=9&type=section&id=Cash%20Flow%20Analysis) For the six months ended June 30, 2021, net cash used in operating, investing, and financing activities significantly decreased, resulting in a narrower net decrease in cash and cash equivalents, with an ending balance of **HK$26,007 thousand** Cash Flows for the Six Months Ended June 30, 2021 | Metric | 2021 (HK$'000) | 2020 (HK$'000) | Change (HK$'000) | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (663) | (6,648) | 5,985 | | Net Cash Used in Investing Activities | (1,743) | (10,951) | 9,208 | | Net Cash Used in Financing Activities | (149) | (1,139) | 990 | | Net Decrease in Cash and Cash Equivalents | (2,555) | (18,738) | 16,183 | | Cash and Cash Equivalents at June 30 | 26,007 | 28,205 | -2,198 | - Exchange rate changes had a **positive impact of HK$561 thousand** on cash and cash equivalents, compared to a negative impact in the prior period[22](index=22&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated financial statements, offering context and explanations for reported figures [1. General Information](index=10&type=section&id=1.%20General%20Information) E-Broker Systems Limited was incorporated in the Cayman Islands on May 23, 2016, and listed on GEM of the Hong Kong Stock Exchange on February 19, 2019 - The company was incorporated in the Cayman Islands on **May 23, 2016**[24](index=24&type=chunk) - The company's shares were listed on GEM of The Stock Exchange of Hong Kong on **February 19, 2019**[24](index=24&type=chunk) [2. Basis of Preparation](index=10&type=section&id=2.%20Basis%20of%20Preparation) The unaudited condensed consolidated financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, consistent with 2020 audited financial statements - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and the GEM Listing Rules[25](index=25&type=chunk) - The principal accounting policies are consistent with those adopted in the 2020 audited consolidated financial statements, except for new and revised standards first applied in the current period[25](index=25&type=chunk) [3. Adoption of New and Revised Hong Kong Financial Reporting Standards](index=10&type=section&id=3.%20Adoption%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The adoption of new and revised HKFRSs effective January 1, 2021, is not expected to materially impact current or prior period results, with ongoing assessment for future standards - The adoption of new and revised Hong Kong Financial Reporting Standards effective **January 1, 2021**, is not expected to have a material impact on the results and financial position for the current and prior periods[26](index=26&type=chunk) - The Group is assessing the potential impact of new Hong Kong Financial Reporting Standards that are not yet effective or have not been early adopted[26](index=26&type=chunk) [4. Revenue](index=11&type=section&id=4.%20Revenue) The Group's revenue primarily stems from front-end trading, back-office settlement, installation, customization, and managed cloud services, with total revenue increasing by **1.4%** for the six months ended June 30, 2021, notably driven by a **78.9%** rise in installation and customization services Revenue Breakdown for the Six Months Ended June 30, 2021 | Service Line | 2021 (HK$'000) | 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Front-end Trading Solution Services Revenue | 9,924 | 11,012 | -9.9% | | Back-office Settlement Solution Services Revenue | 5,067 | 5,052 | 0.3% | | Installation and Customization Services Revenue | 2,090 | 1,168 | 78.9% | | Managed Cloud Services Revenue | 1,631 | 1,791 | -8.9% | | Others | 1,358 | 779 | 74.3% | | **Total** | **20,070** | **19,802** | **1.4%** | Revenue by Major Geographic Market for the Six Months Ended June 30, 2021 | Region | 2021 (HK$'000) | 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong | 19,545 | 19,137 | 2.1% | | Macau | 525 | 665 | -21.1% | | **Total** | **20,070** | **19,802** | **1.4%** | [5. Other Income, and Net Other Gains and Losses](index=12&type=section&id=5.%20Other%20Income,%20and%20Net%20Other%20Gains%20and%20Losses) For the six months ended June 30, 2021, other income significantly decreased by **87.4%** to **HK$82 thousand** due to lower bank interest and government subsidies, while fair value losses in net other gains and losses narrowed Other Income for the Six Months Ended June 30, 2021 | Item | 2021 (HK$'000) | 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Interest income from bank deposits | 14 | 326 | -95.7% | | Management fee from a joint venture | – | 64 | -100.0% | | Employment Support Scheme | – | 263 | -100.0% | | Government grants | 68 | – | N/A | | **Total** | **82** | **653** | **-87.4%** | Net Other Gains and Losses for the Six Months Ended June 30, 2021 | Item | 2021 (HK$'000) | 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Fair value loss on financial assets at fair value through profit or loss – listed equity investments | 104 | (240) | N/A (Turned to gain) | | Fair value loss on financial assets at fair value through profit or loss – derivatives | (337) | (817) | 58.8% (Loss reduced) | | **Total** | **(233)** | **(1,057)** | **78.0% (Loss reduced)** | [6. Segment Information](index=12&type=section&id=6.%20Segment%20Information) The Group operates in a single reportable segment, providing financial software solutions, with Hong Kong as its primary market and no individual customer contributing over **10%** of total revenue - The Group has only one reportable segment, which is the provision of services to customers[33](index=33&type=chunk) - During the period, no individual customer contributed more than **10%** of the Group's total revenue[33](index=33&type=chunk) [7. Income Tax Expense](index=13&type=section&id=7.%20Income%20Tax%20Expense) For the six months ended June 30, 2021, income tax expense decreased by **43.5%** to **HK$48 thousand** due to lower taxable profit, with no provision for PRC corporate income tax due to carried forward tax losses Income Tax Expense for the Six Months Ended June 30, 2021 | Metric | 2021 (HK$'000) | 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Current tax – Hong Kong Profits Tax Provision for the period | 48 | 85 | -43.5% | - Hong Kong Profits Tax is calculated at a two-tiered rate of **8.25%** on the first **HK$2 million** of assessable profits and **16.5%** on assessable profits above **HK$2 million**[35](index=35&type=chunk) - No provision for PRC corporate income tax has been made for the PRC subsidiaries due to carried forward tax losses available to offset against taxable profits[36](index=36&type=chunk) [8. (Loss)/Profit for the Period](index=13&type=section&id=8.%20(Loss)/Profit%20for%20the%20Period) The Group's (loss)/profit for the period is stated after deducting items such as auditor's remuneration, cost of inventories sold, depreciation of property, plant and equipment, and right-of-use assets, with finance costs primarily comprising interest on lease liabilities Key Deductions for the Six Months Ended June 30, 2021 | Item | 2021 (HK$'000) | 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Auditor's remuneration | 325 | 400 | -18.8% | | Cost of inventories sold | 256 | – | N/A | | Depreciation of property, plant and equipment | 504 | 264 | 90.9% | | Depreciation of right-of-use assets | 317 | 1,153 | -72.5% | Finance Costs for the Six Months Ended June 30, 2021 | Item | 2021 (HK$'000) | 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Other interest expenses | – | 13 | -100.0% | | Interest on lease liabilities | 29 | 94 | -69.1% | | **Total** | **29** | **107** | **-72.9%** | [9. (Loss)/Earnings Per Share](index=14&type=section&id=9.%20(Loss)/Earnings%20Per%20Share) For the six months ended June 30, 2021, basic earnings per share increased to **HK$0.01 cents**, with no diluted (loss)/earnings per share calculated due to the absence of potentially dilutive ordinary shares (Loss)/Earnings Per Share for the Six Months Ended June 30, 2021 | Metric | 2021 (HK$'000) | 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Profit attributable to owners of the Company | 132 | 43 | 206.9% | | Weighted average number of ordinary shares ('000) | 1,117,700 | 1,110,000 | 0.7% | | Basic (Loss)/Earnings Per Share (HK cents) | 0.01 | 0.004 | 150.0% | - Diluted (loss)/earnings per share were not calculated as there were no potentially dilutive ordinary shares[40](index=40&type=chunk) [10. Dividends](index=14&type=section&id=10.%20Dividends) The directors do not recommend the payment of any dividend for the six months ended June 30, 2021 - The directors do not recommend the payment of any dividend for the six months ended **June 30, 2021** (2020: nil HKD)[41](index=41&type=chunk) [11. Contract Assets and Contract Liabilities](index=15&type=section&id=11.%20Contract%20Assets%20and%20Contract%20Liabilities) As of June 30, 2021, the Group's contract assets decreased due to fewer completed but unbilled works, while contract liabilities increased, primarily from higher customer prepayments for installation projects Changes in Contract Assets | Metric | June 30, 2021 (HK$'000) | December 31, 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Contract assets related to provision of services | 184 | 508 | -63.8% | Changes in Contract Liabilities | Metric | June 30, 2021 (HK$'000) | December 31, 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Contract liabilities related to provision of services | 4,030 | 2,873 | 40.3% | - As of **June 30, 2021**, revenue recognized from contract liabilities balances at the beginning of the period amounted to **HK$1,619 thousand**[46](index=46&type=chunk) [12. Trade and Other Receivables](index=17&type=section&id=12.%20Trade%20and%20Other%20Receivables) As of June 30, 2021, the Group's total trade and other receivables increased to **HK$14,456 thousand**, with higher impairment losses on trade receivables and a significant increase in amounts due from an associated company Trade Receivables and Impairment Losses | Metric | June 30, 2021 (HK$'000) | December 31, 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade receivables | 5,394 | 5,166 | 4.4% | | Impairment losses on trade receivables | (143) | (96) | 49.0% | - As of **June 30, 2021**, approximately **HK$2,658 thousand** of trade receivables from brokers were due from an associated company beneficially owned by Mr. Chan Lap Tak (December 31, 2020: HK$91 thousand)[48](index=48&type=chunk) Ageing Analysis of Trade Receivables (Net of Provision) | Ageing | June 30, 2021 (HK$'000) | December 31, 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | 0 to 30 days | 3,174 | 2,628 | 20.8% | | 31 to 60 days | 255 | 1,309 | -80.5% | | 61 to 90 days | 435 | 111 | 291.9% | | 91 to 120 days | 9 | 375 | -97.6% | | Over 120 days | 1,378 | 647 | 112.9% | | **Total** | **5,251** | **5,070** | **3.6%** | [13. Trade and Other Payables](index=18&type=section&id=13.%20Trade%20and%20Other%20Payables) As of June 30, 2021, the Group's total trade and other payables decreased to **HK$2,313 thousand** from **HK$3,759 thousand** at the end of 2020, with a healthy ageing structure for trade payables, mostly within 60 days Changes in Trade and Other Payables | Metric | June 30, 2021 (HK$'000) | December 31, 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade payables | 350 | 359 | -2.5% | | Accruals and other payables | 1,963 | 3,400 | -42.3% | | **Total** | **2,313** | **3,759** | **-38.5%** | Ageing Analysis of Trade Payables | Ageing | June 30, 2021 (HK$'000) | December 31, 2020 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | 0 to 30 days | 235 | 92 | 155.4% | | 31 to 60 days | 104 | 157 | -33.8% | | 61 to 90 days | 9 | 86 | -89.5% | | Over 90 days | 2 | 24 | -91.7% | | **Total** | **350** | **359** | **-2.5%** | [14. Share Capital](index=19&type=section&id=14.%20Share%20Capital) The Group aims to ensure continuous operation and maximize shareholder returns through capital management, with a total liabilities to total assets ratio of **14.4%** and unchanged issued share capital as of June 30, 2021 - The Group's capital management objective is to ensure its ability to continue as a going concern and to maximise returns to shareholders through optimising the debt and equity balance[56](index=56&type=chunk) - As of **June 30, 2021**, the Group's total liabilities to total assets ratio was approximately **14.4%** (December 31, 2020: approximately 10.9%)[56](index=56&type=chunk) Share Capital Structure | Metric | Par Value Per Share (HKD) | Number of Shares ('000) | Amount (HK$'000) | | :--- | :--- | :--- | :--- | | Authorised ordinary shares | 0.001 | 5,000,000 | 5,000 | | Issued and fully paid ordinary shares | 0.001 | 1,230,000 | 1,230 | - As of **June 30, 2021**, the total number of shares included **112,300,000 shares** held by the trustee and **7,700,000 shares** held by the trustee on behalf of selected grantees under the share award scheme[58](index=58&type=chunk) [15. Right-of-Use Assets](index=21&type=section&id=15.%20Right-of-Use%20Assets) For the six months ended June 30, 2021, the Group added approximately **HK$3,150 thousand** in right-of-use assets and recognized approximately **HK$317 thousand** in depreciation expense - The Group added approximately **HK$3,150 thousand** in right-of-use assets[60](index=60&type=chunk) - Approximately **HK$317 thousand** in depreciation expense for right-of-use assets was recognized[60](index=60&type=chunk) [16. Property, Plant and Equipment](index=21&type=section&id=16.%20Property,%20Plant%20and%20Equipment) For the six months ended June 30, 2021, the Group acquired approximately **HK$522 thousand** in property, plant and equipment - The Group acquired approximately **HK$522 thousand** in property, plant and equipment[61](index=61&type=chunk) [17. Reserves](index=21&type=section&id=17.%20Reserves) The Group's reserve amounts and corresponding changes for the current and prior periods are presented in the condensed consolidated statement of changes in equity - Reserve amounts and changes are presented in the condensed consolidated statement of changes in equity[62](index=62&type=chunk) [18. Related Party Transactions](index=21&type=section&id=18.%20Related%20Party%20Transactions) For the six months ended June 30, 2021, the Group had no related party transactions, unlike the prior period which included management fees from a joint venture and rental expenses to a related party - For the six months ended **June 30, 2021**, the Group had no related party transactions[63](index=63&type=chunk) Related Party Transactions for the Six Months Ended June 30, 2020 | Type of Transaction | 2020 (HK$'000) | | :--- | :--- | | Management fee received from a joint venture | 64 | | Rental expenses paid to a related party | 1,080 | [19. Contingent Liabilities](index=22&type=section&id=19.%20Contingent%20Liabilities) As of June 30, 2021, the Group had no significant contingent liabilities - As of **June 30, 2021**, the Group had no significant contingent liabilities[66](index=66&type=chunk) [20. Events After the Reporting Period](index=22&type=section&id=20.%20Events%20After%20the%20Reporting%20Period) No significant events occurred between June 30, 2021, and the date of this report - No significant events occurred between **June 30, 2021**, and the date of this report[67](index=67&type=chunk) [21. Approval of Financial Statements](index=22&type=section&id=21.%20Approval%20of%20Financial%20Statements) The condensed consolidated financial statements for the six months ended June 30, 2021, were approved and authorized by the Board of Directors on August 9, 2021 - The condensed consolidated financial statements were approved and authorized by the Board of Directors on **August 9, 2021**[68](index=68&type=chunk) [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's operational and financial performance, outlook, and key risks [Business Review](index=23&type=section&id=Business%20Review) The Group, a financial software solutions provider in Hong Kong, saw its turnover increase by **1.4%** to **HK$20.1 million** and profit attributable to owners surge by **207%** to **HK$132 thousand** for the six months ended June 30, 2021, primarily due to higher installation and customization service revenue - The Group is principally engaged in providing financial software solution services to financial institutions in Hong Kong[70](index=70&type=chunk) - For the six months ended **June 30, 2021**, turnover was approximately **HK$20.1 million**, representing an increase of approximately **1.4%** compared to the same period last year[70](index=70&type=chunk) - Profit attributable to owners of the Company reached approximately **HK$132 thousand**, an increase of approximately **207%** compared to the same period last year, mainly attributable to an increase of approximately **HK$0.9 million** in installation and customization service revenue[70](index=70&type=chunk) [Outlook](index=23&type=section&id=Outlook) The Group plans to enhance competitiveness by expanding wealth management solutions, improving user trading applications, and extending managed cloud services, while prudently managing costs and risks amid ongoing pandemic, geopolitical, and economic recovery challenges - The Group intends to focus on (i) expanding its customer base for wealth management solutions; (ii) improving user trading applications; and (iii) extending its managed cloud services to local brokerage clients[71](index=71&type=chunk) - This year is expected to continue to be affected by factors such as the novel coronavirus pandemic, ongoing geopolitical tensions, and a difficult economic recovery[71](index=71&type=chunk) - The Group will continue to focus on executing and implementing its business strategies while maintaining a prudent approach to cost control and risk management[71](index=71&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) This section reviews the Group's financial performance, covering revenue, inventory, profit before tax, other income, staff costs, depreciation, other operating expenses, and income tax, highlighting key drivers of profit attributable to owners - For the six months ended **June 30, 2021**, the Group's revenue was approximately **HK$20.1 million**, an increase of approximately **1.4%** compared to last year, mainly attributable to significant increases in installation and customization services and back-office settlement solution services[74](index=74&type=chunk) - Installation and customization service revenue grew by **78.9%** to approximately **HK$2.1 million**, while front-end settlement solution service revenue decreased by **9.9%** to approximately **HK$9.9 million**[74](index=74&type=chunk) - Profit before tax increased by **40.6%** to approximately **HK$180 thousand**, mainly due to increased installation and customization service revenue[77](index=77&type=chunk) - Other income decreased to approximately **HK$82 thousand**, mainly due to reduced interest income and government employment support scheme subsidies[78](index=78&type=chunk) - Depreciation decreased by **42.1%** to approximately **HK$0.8 million**, mainly due to reduced depreciation expense for right-of-use assets[80](index=80&type=chunk) - Profit attributable to owners of the Company for the period significantly increased by **207%** to approximately **HK$132 thousand**, mainly attributable to increased installation and customization service revenue[85](index=85&type=chunk) [Liquidity and Financial Resources](index=26&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's operations are primarily funded by cash generated from operations, reporting net current assets of **HK$38.9 million** as of June 30, 2021, with no interest-bearing borrowings and **HK$5.0 million** in unutilized bank facilities - The Group's operations are primarily funded by cash generated from operating activities[86](index=86&type=chunk) - As of **June 30, 2021**, the Group recorded net current assets of approximately **HK$38.9 million** (December 31, 2020: approximately HK$39.0 million)[86](index=86&type=chunk) - The Group had no interest-bearing and non-interest-bearing borrowings, and had **HK$5.0 million** in unutilized bank facilities, secured by **HK$5.0 million** in bank deposits[86](index=86&type=chunk) [Key Risks and Uncertainties](index=26&type=section&id=Key%20Risks%20and%20Uncertainties) The Group faces key risks including the inability of R&D to keep pace with technological advancements, trade receivables recovery, and various financial risks such as credit, liquidity, and interest rate fluctuations - The Group's research and development may not keep pace with technological advancements essential for maintaining its competitiveness[87](index=87&type=chunk) - The Group may not be able to collect its trade receivables in a timely manner and may have to record impairment losses[87](index=87&type=chunk) - The Group's business faces various financial risks, including credit risk, liquidity risk, and interest rate risk[87](index=87&type=chunk) [Capital Structure](index=27&type=section&id=Capital%20Structure) The company's capital structure, primarily comprising issued share capital and reserves, has remained unchanged since its GEM listing on February 19, 2019 - The company's capital structure has remained unchanged since its listing on GEM of the Stock Exchange on **February 19, 2019**[89](index=89&type=chunk) - The company's capital structure primarily comprises issued share capital and reserves[89](index=89&type=chunk) [Purchase, Sale or Redemption of Securities by the Company and its Subsidiaries](index=27&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Securities%20by%20the%20Company%20and%20its%20Subsidiaries) For the six months ended June 30, 2021, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's securities - For the six months ended **June 30, 2021**, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's securities[90](index=90&type=chunk) [Pledged Assets](index=27&type=section&id=Pledged%20Assets) As of June 30, 2021, the Group pledged **HK$5 million** in bank deposits to secure **HK$5 million** in overdraft facilities - As of **June 30, 2021**, the Group pledged **HK$5 million** in bank deposits to secure **HK$5 million** in overdraft facilities granted to the Group[91](index=91&type=chunk) [Material Acquisitions and Disposals](index=27&type=section&id=Material%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2021, the Group made no material investments, acquisitions, or disposals of subsidiaries - For the six months ended **June 30, 2021**, the Group made no material investments in, or material acquisitions and disposals of, subsidiaries[92](index=92&type=chunk) [Capital Commitments and Contingent Liabilities](index=27&type=section&id=Capital%20Commitments%20and%20Contingent%20Liabilities) As of June 30, 2021, the Group had no significant capital commitments or contingent liabilities - As of **June 30, 2021**, the Group had no significant capital commitments or contingent liabilities[93](index=93&type=chunk) [Exchange Rate Fluctuation Risk](index=27&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) The Group's revenue and costs are primarily denominated in HKD, with some costs in RMB; while currently without a foreign currency hedging policy, the directors continuously monitor exchange rate risks and consider hedging when necessary - The Group's revenue and costs are primarily denominated in Hong Kong Dollars, with some costs denominated in Renminbi[94](index=94&type=chunk) - The Group currently has no foreign currency hedging policy, but the directors continuously monitor relevant foreign exchange risks and will consider hedging when necessary[94](index=94&type=chunk) [Credit Risk](index=28&type=section&id=Credit%20Risk) The Group's credit risk primarily arises from cash and cash equivalents and receivables from customer contracts; management anticipates no significant credit risk due to bank balances held with recognized banks and comprehensive credit policies - The Group's credit risk primarily arises from cash and cash equivalents, and receivables and contract assets from contracts with customers[97](index=97&type=chunk) - Management expects no significant credit risk, as all bank balances are held with recognized banks in Hong Kong and are complemented by the Group's comprehensive credit policies[97](index=97&type=chunk) [Liquidity Risk](index=28&type=section&id=Liquidity%20Risk) The Group continuously monitors funding and anticipated liquidity needs to ensure sufficient cash reserves for both short-term and long-term requirements - The Group's policy is to continuously monitor funding and anticipated liquidity requirements to ensure sufficient cash reserves to meet its short-term and long-term liquidity needs[98](index=98&type=chunk) [Interest Rate Risk](index=28&type=section&id=Interest%20Rate%20Risk) The Group's interest rate risk stems from bank deposits bearing floating interest rates, but it faces no significant interest rate risk, as its income and operating cash flows are largely unaffected by floating rate changes - The Group's interest rate risk arises from its bank deposits, which bear interest at floating rates[99](index=99&type=chunk) - The Group has no significant interest rate risk, and its income and operating cash flows are largely unaffected by changes in floating interest rates[99](index=99&type=chunk) [Human Resources and Remuneration Policy](index=28&type=section&id=Human%20Resources%20and%20Remuneration%20Policy) As of June 30, 2021, the Group had **55** full-time employees, with remuneration based on qualifications, function, experience, performance, and market conditions, supported by share option and share award schemes for incentives - As of **June 30, 2021**, the Group had **55** full-time employees (2020: 56 employees)[100](index=100&type=chunk) - Employee remuneration is determined based on qualifications, function, experience, performance, and local market conditions[100](index=100&type=chunk) - For the six months ended **June 30, 2021**, the Group's total employee benefit expenses were approximately **HK$12.3 million** (2020: approximately HK$11.5 million)[100](index=100&type=chunk) - The company adopted a share option scheme on **January 22, 2019**, and a share award scheme on **August 12, 2019**[100](index=100&type=chunk) [Use of Proceeds](index=29&type=section&id=Use%20of%20Proceeds) The net proceeds from the share offer were **HK$23.3 million**; as of June 30, 2021, **HK$13.96 million** has been utilized, with the remaining **HK$9.34 million** allocated for expanding wealth management solutions, improving user trading applications, extending managed cloud services, and establishing a China R&D center - The net proceeds from the share offer were approximately **HK$23.3 million**[105](index=105&type=chunk) Use of Listing Proceeds (as of June 30, 2021) | Description of intended use of proceeds | Net proceeds (HK$ million) | Approximate percentage of net proceeds | Actual use (HK$ million) | Unutilized amount (HK$ million) | Expected timeline for full utilization of remaining net proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Expand wealth management solution business | 2.6 | 11% | 1.08 | 1.52 | Before December 31, 2022 | | Improve user trading applications | 6.8 | 29% | 1.60 | 5.20 | Before December 31, 2022 | | Expand managed cloud services for local brokerage clients | 2.6 | 11% | 1.23 | 1.37 | Before December 31, 2022 | | Establish a research and development center in China | 10.7 | 46% | 9.45 | 1.25 | Before December 31, 2022 | | General working capital | 0.6 | 3% | 0.6 | – | Before December 31, 2022 | | **Total** | **23.3** | **100%** | **13.96** | **9.34** | | [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures](index=30&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As of June 30, 2021, Mr. Chan Lap Tak and Mr. Lo Chi Ho held long positions in the company's shares, with no other directors or chief executives having disclosable interests or short positions Directors' and Chief Executive's Long Positions (as of June 30, 2021) | Name of Director | Capacity and Nature of Interest | Number of Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Chan Lap Tak | Interest of spouse | 2,291,420 | 0.19% | | Mr. Lo Chi Ho | Beneficial interest | 9,830,010 | 0.8% | - Mr. Lo Chi Ho's interest includes **9,100,010 shares** vested under the share award scheme and **730,000 underlying shares**[107](index=107&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=31&type=section&id=Substantial%20Shareholders'%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures) As of June 30, 2021, Quantsmile (BVI) Limited, Eagle Enterprise Consultants Limited, Good Steward Foundation, Financial Data Technologies Limited, Mr. Nip Fan Ki, and Bank of Communications Trustee Limited were substantial shareholders holding long positions in varying proportions Substantial Shareholders' Long Positions (as of June 30, 2021) | Name/Company Name | Capacity and Nature of Interest | Number of Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Quantsmile (BVI) Limited | Beneficial interest | 411,902,870 | 33.49% | | Eagle Enterprise Consultants Limited | Beneficial interest/Interest of controlled corporation | 664,296,910 | 54.01% | | Good Steward Foundation | Interest of controlled corporation | 664,296,910 | 54.01% | | Financial Data Technologies Limited | Beneficial interest | 130,000,000 | 10.57% | | Mr. Nip Fan Ki | Interest of controlled corporation | 130,000,000 | 10.57% | | Bank of Communications Trustee Limited | Trustee | 112,300,000 | 9.13% | - Eagle Enterprise Consultants Limited is deemed to be interested in the shares of the company held by Quantsmile (BVI) Limited[111](index=111&type=chunk) - Bank of Communications Trustee Limited is the trustee appointed by the company for the share award scheme[114](index=114&type=chunk) [Share Option Scheme](index=32&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme on January 22, 2019, but no share options were granted for the six months ended June 30, 2021 - The company adopted a share option scheme on **January 22, 2019**[115](index=115&type=chunk) - No share options were granted for the six months ended **June 30, 2021**[115](index=115&type=chunk) [Share Award Scheme](index=32&type=section&id=Share%20Award%20Scheme) The company adopted a share award scheme on August 12, 2019; as of June 30, 2021, the trustee held **112,300,000 shares**, and the Board resolved to grant **21,400,000** award shares to **50** selected grantees, vesting in two tranches - The company adopted a share award scheme on **August 12, 2019**[116](index=116&type=chunk) - As of **June 30, 2021**, the trustee held **112,300,000 shares**[116](index=116&type=chunk) - The Board resolved to grant a total of **21,400,000 award shares** to **50** selected grantees under the share award scheme[116](index=116&type=chunk) - The award shares will vest in two tranches: **50%** on **December 31, 2021**, and the remaining **50%** on **December 31, 2022**[116](index=116&type=chunk) [Competing Interests and Non-Competition Undertaking](index=33&type=section&id=Competing%20Interests%20and%20Non-Competition%20Undertaking) Each controlling shareholder entered into a non-competition undertaking with the company on January 22, 2019, and for the six months ended June 30, 2021, no director or controlling shareholder had interests in any business competing with the Group - Each controlling shareholder entered into a non-competition undertaking with the company as beneficiary on **January 22, 2019**[118](index=118&type=chunk) - For the six months ended **June 30, 2021**, no director or controlling shareholder had any interest in any business directly or indirectly competing with the Group's business[118](index=118&type=chunk) [Corporate Governance Practices](index=33&type=section&id=Corporate%20Governance%20Practices) The company is committed to achieving high standards of corporate governance and has adopted and complied with the principles and code provisions of the Corporate Governance Code in Appendix 15 of the GEM Listing Rules - The company is committed to achieving high standards of corporate governance[119](index=119&type=chunk) - The company has adopted and complied with the principles and code provisions of the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules[119](index=119&type=chunk) [Directors' Securities Transactions](index=33&type=section&id=Directors'%20Securities%20Transactions) Following specific inquiries, all directors confirmed compliance with the required standard of dealings for the six months ended June 30, 2021 - All directors confirmed their compliance with the required standard of dealings for the six months ended **June 30, 2021**[120](index=120&type=chunk) [Interests of Compliance Advisor](index=34&type=section&id=Interests%20of%20Compliance%20Advisor) The Group appointed Somerley Capital Limited as its compliance advisor, and apart from the compliance advisor agreement, neither the advisor nor its associates hold any disclosable interests related to the company - The Group appointed Somerley Capital Limited as its compliance advisor[123](index=123&type=chunk) - Save for the compliance advisor agreement, neither the compliance advisor, its directors, employees, nor close associates have any interests in relation to the company that are required to be notified to the Group under Rule 6A.32 of the GEM Listing Rules[123](index=123&type=chunk) [Events After Reporting Period](index=34&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred from June 30, 2021, up to the date of this report for the company or the Group - No significant events occurred from **June 30, 2021**, up to the date of this report for the company or the Group[124](index=124&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The company's Audit Committee reviewed the report and the Group's unaudited condensed consolidated financial results for the six months ended June 30, 2021, confirming compliance with applicable accounting standards and GEM Listing Rules - The company's Audit Committee reviewed this report and the Group's unaudited condensed consolidated financial results for the six months ended **June 30, 2021**[125](index=125&type=chunk) - The Audit Committee believes these results were prepared in compliance with applicable accounting standards, the GEM Listing Rules, and other applicable legal requirements, and that adequate disclosures have been made[125](index=125&type=chunk) [Dividends](index=34&type=section&id=Dividends) The directors do not recommend the payment of any dividend for the six months ended June 30, 2021 - The directors do not recommend the payment of any dividend for the six months ended **June 30, 2021** (2020: nil HKD)[126](index=126&type=chunk) [Definitions](index=35&type=section&id=Definitions) This section provides definitions for key terms used throughout the report to ensure consistent understanding for readers [Definitions of Key Terms](index=35&type=section&id=Definitions%20of%20Key%20Terms) This section defines key terms such as "Board," "China," "Company," "Controlling Shareholder," "Directors," "GEM Listing Rules," "Group," "HKD," "Hong Kong," "Listing," "Listing Date," "Prospectus," "SFO," "Shares," "Shareholder," "%," "Share Award Scheme," "Share Option Scheme," and "Stock Exchange" - This section defines key terms such as "Board", "China", "Company", "Controlling Shareholder", "Directors", "GEM Listing Rules", "Group", "HKD", "Hong Kong", "Listing", "Listing Date", "Prospectus", "SFO", "Shares", "Shareholder", "%", "Share Award Scheme", "Share Option Scheme", and "Stock Exchange"[128](index=128&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk)