Quantum Thinking Limited 量 子 思 維 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：8050） 截 至 二 零 二 三 年 六 月 三 十 日 止 三 個 月 之 第 一 季 度 業 績 公 告 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 主板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及聯交所對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內 容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 本公告之資料乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨 在提供有關量子思維有限公司（「本公司」）資料。本公司的董事（「董事」）願就本 公告的資料共同及個別承擔全部責任。各董 ...

Business Environment and Strategy - The information system solution industry in China faced a harsh business environment during the financial year ended March 31, 2023, due to a slowing economy and geopolitical tensions[13]. - The Group adopted a prudent approach to investment in research and development, shifting focus from system development to operation[14]. - The overall market volatility and regulatory changes present ongoing challenges for the Group's operations[13]. - The Group's approach to business development is characterized by prudence in response to a volatile and complicated business environment[27]. - The Group aims to control operating costs by developing less labor-intensive businesses while broadening its income streams[71]. - The Group's strategy includes maintaining a prudent approach to business development amid a volatile economic environment[70]. Diversification and New Business Initiatives - The Group is diversifying into selling wearable devices, such as smartwatches for children, bundled with telecommunications services[14]. - The Group's diversification strategy is aimed at building brand awareness in the end-user market[14]. - The Group is preparing to launch a front-end business selling smartwatches for children, which will be bundled with telecommunication services from a major telecom carrier in China[25]. - The Group plans to expand its value-added services, particularly short-messaging services, and diversify into selling wearable devices like smartwatches for children in 2023[71]. - The smartwatches will be equipped with the Group's IT software and will allow parents to track their children via GPS, enhancing brand awareness in the end-user market[73]. Financial Performance - The Group recorded a revenue of approximately HK$18,290,000 for the year ended 31 March 2023, representing a decrease of approximately 44% compared to HK$32,800,000 for the previous period[91]. - Loss attributable to owners of the Company for the Reporting Period was approximately HK$10,108,000, compared to a profit of approximately HK$18,189,000 for the previous period[92]. - Revenue from hardware sales decreased by approximately 13%, while revenue from services decreased by approximately 81% during the Reporting Period[93]. - Current assets as of 31 March 2023 were approximately HK$32,656,000, including cash and cash equivalents of approximately HK$3,493,000[95]. - The liquidity ratio of the Group was 1.49:1 as of 31 March 2023, compared to 1.01:1 as of 31 March 2022[95]. - The total remuneration paid to employees for the Reporting Period was approximately HK$7,175,000, down from HK$9,458,000 in the previous period[105]. Regulatory and Compliance Issues - The Chinese government's tighter regulation of digital payment services impacted project timelines and scales[13]. - The company has adopted the corporate governance code as per GEM Listing Rules, ensuring compliance throughout the reporting period[128]. - The Group complied with the Corporate Governance Code throughout the reporting period, with some deviations noted regarding insurance coverage for directors and the separation of roles between chairman and CEO[123][126]. Risk Management and Governance - The company has established a risk management policy and reporting mechanism during the reporting period[142]. - The company has identified certain risk areas and implemented systematic risk identification and assessment processes[142]. - The Board is responsible for formulating the Group's overall strategy and approving financial statements and significant transactions[138]. - The Board composition includes both Executive and Independent Non-executive Directors, ensuring a balanced governance structure[132]. Investments and Financial Strategy - The Group's investment strategy focuses on maintaining liquidity and minimizing operational impact while achieving reasonable returns on idle funds[113]. - Significant investments classified as financial assets at fair value through other comprehensive income included a total fair value of approximately HK$8,210,000 as of March 31, 2023, with dividend income of approximately HK$426,000 during the year[115]. - The Group raised approximately HK$100 million through a subscription by issuing 450 million ordinary shares, with Happy On Holdings Limited holding 72.83% of the total issued share capital post-subscription[81]. Employee and Board Composition - As of March 31, 2023, the Group employed 29 employees, a decrease from 34 employees as of March 31, 2022, with total employee compensation amounting to approximately HK$7,175,000, down from HK$9,458,000 in the previous period[111]. - The company requires at least one-third of Directors to retire at each annual general meeting, ensuring rotation every three years[155]. - The company emphasizes the importance of board diversity to enhance performance quality and achieve strategic objectives[192].

Quantum Thinking Limited 量 子 思 維 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：8050） 截 至 二 零 二 三 年 三 月 三 十 一 日 止 年 度 的 末 期 業 績 公 告 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 主板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及聯交所對本公告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內 容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 本公告之資料乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨 在提供有關量子思維有限公司（「本公司」）資料。本公司各董事（「董事」）願就本 公告的資料共同及個別地承擔全部責任。董事在作出 ...

Financial Performance - Revenue for the three months ended December 31, 2022, was HK$4,399,000, a decrease of 48.3% compared to HK$8,513,000 in the same period of 2021[7]. - Gross profit for the nine months ended December 31, 2022, was HK$1,843,000, down 32.8% from HK$2,745,000 in the previous year[7]. - Loss before income tax for the three months ended December 31, 2022, was HK$4,741,000, compared to a loss of HK$5,952,000 in the same period of 2021, representing a 20.3% improvement[7]. - Total comprehensive expense for the nine months ended December 31, 2022, was HK$11,685,000, a reduction of 35.5% from HK$18,040,000 in the previous year[9]. - Basic loss per share for the three months ended December 31, 2022, was HK$0.32, compared to HK$0.39 in the same period of 2021[10]. - The company reported a loss for the period attributable to owners of the Company of HK$4,365,000 for the three months ended December 31, 2022, down from HK$5,234,000 in the previous year[9]. - Administrative expenses for the nine months ended December 31, 2022, were HK$14,288,000, a decrease of 33.4% from HK$21,647,000 in the same period of 2021[7]. - Other income for the three months ended December 31, 2022, was HK$181,000, an increase of 14.6% compared to HK$158,000 in the same period of 2021[9]. - For the nine months ended 31 December 2022, the Group reported a loss attributable to owners of the Company of approximately HK$10,682,000[26]. - The Group had net liabilities of approximately HK$8,443,000 as of 31 December 2022[26]. - The accumulated losses increased to HK$230,388,000 as of 31 December 2022[26]. Assets and Liabilities - As of 31 December 2022, the Group's current liabilities exceeded its current assets by approximately HK$9,229,000[26]. - The total comprehensive expense for the period was HK$11,003,000, which includes a loss of HK$10,682,000 and an exchange difference of HK$321,000[26]. - As at 31 December 2022, total equity attributable to owners of the Company was HK$296,000, reflecting a decrease from previous periods[26]. - The Group's share capital remained unchanged at HK$135,625,000 as of 31 December 2022[26]. - The translation reserve showed a slight improvement, with a balance of HK$5,468,000 as of 31 December 2022[26]. Business Developments - The Group plans to dispose of Guangzhou YBDS IT Co., Ltd., which had net liabilities of approximately HK$24,561,000 as of 31 December 2022[28]. - The Group signed a contract in October 2022 to provide multimedia short messaging services for a major telecommunications carrier in Guangdong Province, which is expected to be profitable[28]. - The Group is focusing on business transformation and diversification to capitalize on the growing digital economy in China, particularly in IT software and system development[70]. - The Group is shifting its business focus towards the operation of IT systems and developing value-added services such as SMS for businesses and selling wearable devices[73]. - The Group's initiatives aim to expand income sources and provide long-term business development momentum amid a challenging operating environment[109]. Market Trends - The electronic signature market in China is projected to grow from RMB15.28 billion in 2021 to RMB21.71 billion in 2022, and further to RMB40.42 billion in 2024[66]. - The market for electronic signature software in China is expected to reach US$91.0 million in 2022, growing at a compound annual growth rate of 26.4% from 2022 to 2026[66]. - The AI software and services market in China grew by 23.5% to RMB 106.44 billion in 2021 and is expected to exceed RMB 200 billion by 2024[69]. - The market for AI software and applications in China is anticipated to increase from USD 5.28 billion in 2021 to USD 6.6 billion in 2022[71]. Regulatory and Compliance - The Group's financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards[18]. - The unaudited condensed consolidated financial statements have been reviewed by the audit committee of the Company[25]. - The Audit Committee, established in May 2000, reviews the Group's audit findings and compliance with GEM Listing Rules[143]. - The unaudited consolidated results for the Reporting Period have been reviewed by the Audit Committee[144]. Shareholder Information - Mr. Ho Yeung held 18,083,500 ordinary shares, representing approximately 1.333% of the total issued ordinary shares of the Company as of December 31, 2022[121][123]. - Happy On was the beneficial owner of 987,888,771 ordinary shares, accounting for approximately 72.83% of the issued share capital as of December 31, 2022[127]. - The Company has 1,356,250,000 ordinary shares issued as of December 31, 2022[135]. - Mr. Chan is deemed to be interested in 987,888,771 shares held by Happy On, representing approximately 72.8% of the total shares[135].

Financial Performance - For the six months ended September 30, 2022, the revenue was HK$4,858,000, a decrease of 53.8% compared to HK$10,503,000 for the same period in 2021[7]. - The gross profit for the six months ended September 30, 2022, was HK$790,000, down 6.4% from HK$844,000 in the corresponding period of 2021[7]. - The loss before income tax for the six months ended September 30, 2022, was HK$7,258,000, representing a 41.1% improvement compared to a loss of HK$12,378,000 in the same period of 2021[7]. - Total comprehensive expense for the period attributable to owners of the Company was HK$6,596,000 for the six months ended September 30, 2022, compared to HK$10,220,000 for the same period in 2021, indicating a 35.7% reduction[15]. - Basic loss per share for the six months ended September 30, 2022, was HK$0.47, an improvement from HK$0.78 in the corresponding period of 2021[15]. - The company reported a loss for the period of HK$3,644,000 for the three months ended September 30, 2022, compared to a loss of HK$6,382,000 in the same period of 2021, marking a 42.9% improvement[7]. - The total comprehensive expense for the period, net of tax, was HK$6,692,000 for the six months ended September 30, 2022, down from HK$12,137,000 in the same period of 2021, indicating a 44.0% decrease[11]. - The company reported a loss for the period of HK$ (6,317,000) for the six months ended September 30, 2022, compared to a loss of HK$ (10,535,000) in the same period of 2021[22]. - Loss attributable to owners for the six months ended September 30, 2022, was HK$6,317,000, an improvement from HK$10,535,000 in the same period of 2021, reflecting a reduction in loss of 40.5%[92]. - Basic loss per share for the six months ended September 30, 2022, was calculated at HK$0.00465, compared to HK$0.00777 for the same period in 2021, indicating a 40.5% improvement[92]. Revenue Breakdown - Total revenue for the six months ended September 30, 2022, was HK$10,023,000, a decrease from HK$20,286,000 in the same period of 2021, representing a decline of 50.5%[56]. - Hardware revenue for the six months ended September 30, 2022, was HK$1,274,000, down from HK$9,660,000 in the same period of 2021, indicating a decrease of 86.8%[56]. - Service revenue for the six months ended September 30, 2022, was HK$8,749,000, compared to HK$10,626,000 in the same period of 2021, reflecting a decline of 17.6%[56]. - The company reported a total revenue from contracts with customers of HK$4,858,000 for the three months ended September 30, 2022, compared to HK$10,503,000 in the same period of 2021, a decline of 53.8%[56]. - Revenue recognized at a point in time for the three months ended September 30, 2022, was HK$235,000, down from HK$4,857,000 in the same period of 2021, a decrease of 95.2%[56]. - Revenue recognized over time for the three months ended September 30, 2022, was HK$4,623,000, compared to HK$5,646,000 in the same period of 2021, reflecting a decline of 18.1%[56]. Expenses and Costs - Administrative expenses decreased to HK$9,317,000 for the six months ended September 30, 2022, down from HK$14,797,000 in the corresponding period of 2021, reflecting a 37.1% reduction[7]. - Research and development costs for the six months ended September 30, 2022, were HK$822,000, down from HK$1,211,000 in 2021, a decrease of 32.1%[88]. - Employee benefit expenses for the six months ended September 30, 2022, totaled HK$3,710,000, compared to HK$5,127,000 in 2021, reflecting a reduction of 27.6%[88]. - The Group is actively taking measures to control administrative costs, including human resources optimization and management remuneration adjustments[39]. Cash Flow and Assets - For the six months ended September 30, 2022, the company reported a net cash used in operating activities of HK$ (7,034,000), an improvement from HK$ (9,521,000) in the same period of 2021[26]. - The company generated net cash from investing activities of HK$ 7,557,000 for the six months ended September 30, 2022, compared to HK$ 1,785,000 in the prior year[26]. - Cash and cash equivalents at the end of the period were HK$ 7,254,000, down from HK$ 9,971,000 at the end of the previous year[29]. - The company had trade and other receivables of HK$ 14,041,000 as of March 31, 2022, which decreased to HK$ 11,000 as of September 30, 2022[21]. - The Group's cash and cash equivalents as of September 30, 2022, were reported at HK$ 2,080,000[126]. Liabilities and Equity - As of September 30, 2022, total assets amounted to HK$ 35,838,000, while total liabilities were HK$ 39,932,000, resulting in net liabilities of HK$ 4,094,000[21]. - The total liabilities per condensed consolidated statement of financial position as of September 30, 2022, were HK$39,932,000, down from HK$54,956,000 as of March 31, 2022, a decrease of 27.2%[67]. - The total equity attributable to owners of the company as of September 30, 2022, was HK$ 4,111,000, a decrease from HK$ 10,707,000 as of April 1, 2022[22]. - As of 30 September 2022, the Group's current liabilities exceeded its current assets by approximately HK$4,094,000, resulting in net liabilities of approximately HK$3,441,000[39]. - The Group's trade payables as of September 30, 2022, totaled HK$ 8,360,000, compared to HK$ 31,006,000 as of March 31, 2022, indicating a significant reduction[110]. Business Developments and Contracts - The Group signed a contract in October 2022 to provide multimedia short messaging services for a major PRC telecommunications carrier, which is expected to be profitable[44]. - The Group is diversifying into value-added services such as short messaging services for businesses, including banks[171]. - CITIC Cyber Security signed a contract to build an infrastructure for real-name system management based on eCitizen digital identity verification technology[173]. - The Group is fulfilling a contract to build a unified digital authentication system for a transportation infrastructure design and construction firm[174]. - In September 2022, the Group signed a contract to sell data encryption devices and develop software for an information technology firm[174]. Market Trends and Future Outlook - The electronic signature market in China is projected to grow from RMB15.28 billion in 2021 to RMB21.71 billion in 2022 and RMB40.42 billion in 2024[170]. - The Chinese AI software and services market grew by 23.5% to RMB 106.44 billion in 2021 and is projected to exceed RMB 200 billion by 2024[171]. - The United States government imposed restrictions on the export of advanced chips (less than 14 nanometers) and related technology to China in October 2022, which may impact China's information system solution industry in the next two to three years[197]. - The Group is shifting its business focus towards the operation of information technology systems, diversifying into value-added services such as multimedia short messaging services for businesses[198].

Financial Performance - Revenue for the three months ended June 30, 2022, was HK$5,165,000, compared to HK$4,387,000 for the same period in 2021, representing an increase of approximately 17.7%[8] - Gross profit for the reporting period was HK$778,000, with a gross margin of approximately 15.1%[8] - Loss for the period attributable to owners of the Company was HK$3,168,000, a decrease from HK$5,105,000 in the corresponding period of 2021, indicating an improvement of approximately 37.9%[11] - Basic loss per share attributable to the owners of the Company was HK$0.23, compared to HK$0.38 for the same period in 2021[11] - Total comprehensive expense for the period was HK$3,453,000, down from HK$5,925,000 in the previous year, reflecting a reduction of approximately 41.8%[11] - Other income for the reporting period was HK$298,000, compared to HK$4,000 in the corresponding period, showing significant growth[8] - Administrative expenses for the period were HK$4,438,000, compared to HK$3,614,000 in the previous year, indicating an increase of approximately 22.8%[8] - The Group recorded a revenue of approximately HK$5,165,000 for the three months ended June 30, 2022, representing a decrease of approximately 47% compared to HK$9,783,000 for the corresponding period last year[51] - Loss before income tax for the Reporting Period was approximately HK$3,614,000, a decrease of approximately 40% from HK$5,995,000 for the corresponding period[51] - Loss attributable to owners of the Company was approximately HK$3,168,000, representing a decrease of approximately 38% compared to HK$5,105,000 for the corresponding period[51] Equity and Capital Structure - As of 30 June 2022, the company's total equity was HK$7,313,000, a decrease from HK$10,707,000 as of 31 March 2022[14] - The share capital remained unchanged at HK$135,625,000, while the share premium increased to HK$99,935,000[14] - The company’s accumulated losses increased to HK$222,874,000 as of 30 June 2022, up from HK$219,706,000 as of 31 March 2022[14] - The company’s non-controlling interests decreased to HK$7,515,000 as of 30 June 2022, compared to HK$4,676,000 as of 31 March 2022[14] - The Company raised net proceeds of approximately HK$100 million by issuing 450,000,000 ordinary shares at a subscription price of HK$0.225 per share[88] - Happy On Holdings Limited acquired approximately 72.83% of the total issued share capital of the Company following the subscription[88] - The total issued share capital of the Company as of June 30, 2022, is 1,356,250,000 shares[101] - As of June 30, 2022, Happy On holds 987,888,771 shares, representing approximately 72.83% of the issued share capital of Quantum Thinking Limited[95] Strategic Focus and Business Development - The Company continues to focus on improving operational efficiency and reducing losses in future periods[7] - The company is currently assessing the impact of adopting new and revised financial reporting standards, which may affect future financial statements[25] - The company’s principal business activities include system development and trading of hardware products, which may require further market expansion strategies[18] - The Group is diversifying into AI services and solutions, as well as robotic process automation, to adapt to the changing market conditions[57] - The Group is focusing on business transformation and diversification, particularly in internet electronic identity authentication, electronic signature, and AI services to leverage China's digital economy[85] Contracts and Partnerships - CITIC Cyber Security, a 70%-held subsidiary, signed a contract to build an infrastructure for real-name system management based on eCitizen digital identity verification technology[60] - CITIC Cyber Security signed contracts to provide cyber security services and to design AI-based recognition systems for automated fare collection systems in China[63] - The Group acquired a 70% equity interest in Zhongzhisuxun Technology Development for a consideration of RMB7,000[41] - A contract was signed to develop a platform for electronic signing, management, and auditing of contracts for a PRC-based bank, nearing completion during the reporting period[80] Market Trends and Challenges - The ongoing pandemic and U.S. sanctions are impacting the company's future outlook and market strategies[84] - The pandemic has accelerated the trend towards digitalization, benefiting certain sectors of China's information system solution industry[56] - The electronic signature market in China is projected to grow from RMB 15.28 billion in 2021 to RMB 21.71 billion in 2022, and further to RMB 40.42 billion in 2024[57] Governance and Compliance - The Audit Committee, established in May 2000, is responsible for reviewing the Group's audit findings and compliance with GEM Listing Rules[106] - All Directors have complied with the required standard of dealings and the code of conduct regarding securities transactions throughout the reporting period[104] - The Company has adopted a code of conduct regarding securities transactions by Directors that meets or exceeds the standards set out in the GEM Listing Rules[104] - The Audit Committee comprises independent non-executive Directors, ensuring oversight of the Group's financial practices[106] - The reporting period's unaudited consolidated results have been reviewed by the Audit Committee[105]

Business Environment and Challenges - The business environment remained challenging during the financial year ended 31 March 2022 due to the resurgence of COVID-19 and ongoing sanctions against certain Chinese technology companies[14]. - The operating environment remains challenging due to the COVID-19 pandemic resurgence in China and ongoing U.S. sanctions on Chinese tech companies, leading to project delays and scaled-down operations[18]. - Management expressed caution regarding future business outlook due to economic impacts from the pandemic and ongoing sanctions against Chinese technology firms[65]. Digital Transformation and Opportunities - The pandemic accelerated the digital transformation of companies, contributing to the growth of China's digital economy[15]. - The acceleration of digital transformation due to the pandemic has created opportunities in areas like electronic signatures and internet-based identity verification[18]. - Labor shortages and rising wages are driving companies to explore AI solutions, presenting growth opportunities for the AI services and solutions sector[18]. - The company aims to consolidate its business foundation and fully leverage the upgrading and transformation of China's industries through its strategic initiatives[29]. Business Diversification and Strategy - Quantum Thinking Limited diversified its business to include digital solutions for cybersecurity and AI services during the reporting period[16]. - The company is expanding its business into digital solutions for cybersecurity, digital transformation assistance, and AI services, aiming to capitalize on the growth of China's digital economy[19]. - The company is diversifying into providing digital solutions for cyber security and AI services to capitalize on China's booming digital economy[37]. - The Group is diversifying into internet electronic identity authentication, electronic signature, and AI services to broaden income streams and support long-term business development[74]. - The Group's strategy includes fostering both backend and frontend information technology software and system development to capitalize on China's industrial upgrading and transformation[73]. Contracts and Collaborations - In Q4 of the reporting period, the company's 70%-held subsidiary, CITIC Cyber Security, signed a contract for real-name system management infrastructure based on eCitizen digital identity verification technology[17]. - During the reporting period, CITIC Cyber Security signed contracts for AI-based recognition systems for a metro company's automated fare collection and cybersecurity services for various companies[22][23]. - A framework agreement was signed to provide training and consultancy on robotic process automation (RPA) for a leading telecommunications company, enabling AI-based customer services without human intervention[24][26]. - CITIC Cyber Security signed a contract to build an infrastructure for real-name system management based on eCitizen digital identity verification technology during the fourth quarter of the reporting period[38]. - CITIC Cyber Security entered into a joint venture agreement with China's three major telecommunications carriers to provide digital solutions for cyber security, although the joint venture had not been established as of March 31, 2022[44]. Financial Performance - The Group recorded revenue of approximately HK$32,800,000, representing a decrease of approximately 20% compared to the previous period's revenue of approximately HK$41,242,000[81]. - Loss attributable to owners of the Company for the reporting period was approximately HK$18,189,000, compared to a profit of approximately HK$16,703,000 in the previous period[81]. - Revenue from hardware sales decreased by approximately 25%, while revenue from services decreased by approximately 16% compared to the previous period[84]. Corporate Governance and Board Structure - The company has adopted the corporate governance code as per GEM Listing Rules, ensuring compliance throughout the reporting period[93]. - The Board held a total of four meetings during the reporting period to review financial and operational performance[100]. - The Board is responsible for formulating the Group's overall strategy and approving financial statements and significant transactions[102]. - The company has not appointed a new Chairman or CEO until suitable candidates are identified for enhancing revenue and growth potential[93]. - The Board comprises experienced members, including four Executive Directors and three Independent Non-Executive Directors[95]. Risk Management - A risk management policy and reporting mechanism were established during the reporting period, covering systematic risk identification and assessment[104]. - The Board has delegated risk management responsibilities to executive Directors and management, who report findings back to the Board[108]. - The Group's internal control and risk management mechanisms were deemed effective during the Reporting Period[126]. - The Board reviews the effectiveness of risk management systems at least annually to ensure adequate resources and training[191]. Workforce and Employee Matters - The total remuneration paid to employees, including Directors, for the reporting period was approximately HK$9,458,000, a decrease from HK$10,120,000 in the previous period[87]. - The Group had 34 employees as of March 31, 2022, compared to 27 employees as of March 31, 2021[87]. - As of March 31, 2022, the gender ratio of the workforce was 62:38 male to female, indicating a commitment to diversity[191].

Financial Performance - Revenue for the three months ended December 31, 2021, was HK$8,513,000, a decrease of 15.7% compared to HK$10,102,000 for the same period in 2020[7]. - Gross profit for the three months ended December 31, 2021, was HK$1,016,000, compared to HK$904,000 in the same period of 2020, reflecting an increase of 12.4%[7]. - The loss for the period attributable to owners of the Company was HK$5,234,000, compared to a loss of HK$5,342,000 in the same period of 2020, indicating a slight improvement[9]. - Total comprehensive expense for the three months ended December 31, 2021, was HK$5,903,000, compared to an expense of HK$4,509,000 in the same period of 2020[9]. - For the nine months ended December 31, 2021, total revenue was HK$28,799,000, a decrease of 1.4% from HK$29,197,000 in the same period of 2020[7]. - The loss for the nine months attributable to owners of the Company was HK$15,769,000, compared to a profit of HK$20,230,000 in the same period of 2020[9]. - Basic loss per share for the three months ended December 31, 2021, was HK$0.39, unchanged from the same period in 2020[9]. - The Company reported other income of HK$158,000 for the three months ended December 31, 2021, compared to HK$804,000 in the same period of 2020[7]. - The administrative expenses for the three months ended December 31, 2021, were HK$6,850,000, a decrease from HK$7,604,000 in the same period of 2020[7]. - Revenue for the nine months ended December 31, 2021, was HK$28,799,000, a decrease of 5.7% compared to HK$30,525,000 for the same period in 2020[34]. - Total comprehensive income for the nine months ended December 31, 2021, was a loss of HK$15,187,000 compared to a loss of HK$2,853,000 for the same period in 2020[34]. - The accumulated losses as of December 31, 2021, were HK$217,286,000, an increase from HK$197,990,000 as of December 31, 2020[34]. - Loss before income tax for the Reporting Period was approximately HK$18,330,000, compared to a profit before income tax of approximately HK$18,447,000 for the corresponding period[80]. - Investment income for the three months ended December 31, 2021 was HK$147,000, while for the nine months it was HK$618,000[39]. - Government grants recognized as other income for the nine months ended December 31, 2021 amounted to HK$724,000, down from HK$1,315,000 in the corresponding period[39]. - The Board does not recommend the payment of any dividend for the nine months ended December 31, 2021, same as the corresponding period[58]. Business Developments - The company recognized a total transaction with owners of HK$1,366,000 from the disposal of subsidiaries during the reporting period[34]. - The company has not applied any new and revised standards that have been issued but are not yet effective, currently assessing their potential impact[29]. - The unaudited condensed consolidated financial statements have been reviewed by the audit committee of the company[29]. - On 18 June 2021, the Company’s subsidiary acquired 70% of Zhongzhisuxun Technology Development for RMB7,000[67]. - Non-controlling interests in Zhongzhisuxun Technology Development recognized at the acquisition date amounted to approximately HK$216,000[71]. - The Group incurred no provision for Hong Kong profits tax and PRC enterprise income tax for the three and nine months ended 31 December 2021 due to tax losses[46]. - The company has deregistered Beijing YBDS as it was no longer needed after acquiring China Mobile Payment Technology Group Company Limited[137]. Market Trends and Opportunities - China's electronic signature market grew by 41.2% to RMB 15.28 billion in 2021 from RMB 10.82 billion in 2020, with projections to reach RMB 40.42 billion by 2024[86]. - The value of payments processed by non-bank payment institutions in China increased by 14.88% year on year to RMB 90.71 trillion, while the number of such payments grew by 14.37% year on year to about 268.19 billion[86]. - The Group aims to enhance its digital solutions for cyber security and artificial intelligence services to capitalize on China's booming digital economy[90]. - The company is actively pursuing opportunities in China's digital economy to enhance long-term business development[128]. - The company is focused on leveraging opportunities arising from the transformation of industries in China[134]. Strategic Initiatives - CITIC Cyber Security signed contracts for AI-based recognition and facial recognition systems for a metro company's automated fare collection system[90]. - CITIC Cyber Security completed the acquisition of Zhongzhisuxun Technology Development, enhancing its capabilities in digital culture and information security software[97]. - The joint venture with major telecommunications carriers aims to provide digital solutions for cyber security to financial institutions and government departments[101]. - The Group is focusing on diversifying its business into digital solutions for cyber security and facilitating companies' digital transformation[90]. - CITIC Cyber Security established a joint venture with three major Chinese telecom operators to provide digital solutions in cybersecurity, leveraging their service capabilities and customer base[104]. - The company applied its proprietary product, eCitizen, for electronic identity authentication in several banks' financial services and electronic signatures, enhancing personal data protection in online transactions[105]. - During the reporting period, CITIC Cyber Security conducted information verification for a securities brokerage and a certificate authority, utilizing APIs and terminals[106]. - The total number of tenants in CITIC Cyber Security's co-working spaces in Shenzhen reached 37, primarily consisting of fintech startups[109]. - The company is diversifying into internet electronic identity authentication, electronic signature, and AI services to broaden income streams amid a challenging business environment[128]. - CITIC Cyber Security signed contracts to develop a unified digital authentication system and maintain intelligent bookcases for clients in the transportation and property sectors[127][129]. - CITIC Cyber Security's initiatives aim to provide more convenient and secure login and transaction authorization services in various sectors, including transportation and banking[104]. - The company signed a framework agreement to provide training and consultancy on robotic process automation (RPA) for a leading telecommunications company, enabling AI-based customer services without human intervention[134]. - The company formed a digital technology joint venture to provide cybersecurity solutions to financial institutions, government departments, and enterprises, and acquired a 70% equity stake in a software developer for digital transformation[134]. Shareholder Information - The company raised approximately HK$100 million through a subscription by issuing 450,000,000 ordinary shares at a price of HK$0.225 per share, resulting in Happy On Holdings Limited holding approximately 72.83% of the total issued share capital[137]. - Approximately HK$19.785 million of the raised funds were applied to pay outstanding registered capital for Guangzhou YBDS, while HK$45.5 million was redirected for new potential projects and general working capital[137]. - As of December 31, 2021, Mr. Ho Yeung held 18,083,500 ordinary shares, representing approximately 1.333% of the total issued ordinary shares of the company[140]. - The total number of ordinary shares issued by the company as of December 31, 2021, is 1,356,250,000[152]. - No share options were granted under the share option scheme since its adoption, and no options were outstanding, lapsed, cancelled, or exercised during the nine months ended December 31, 2021[158]. - The share option scheme was adopted on August 1, 2011, and was valid for 10 years, expiring on July 31, 2021[158]. - During the reporting period, neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities[158]. - As of the report date, none of the directors or substantial shareholders had any interest in a competing business or any conflicts of interest with the group[166]. - The Audit Committee, established in May 2000, is responsible for reviewing the group's audit findings and compliance with GEM Listing Rules[166]. - All directors complied with the required standard of dealings and the code of conduct regarding securities transactions throughout the reporting period[165]. - The company has not granted any rights to acquire shares or debentures to any director or their family members during the reporting period[156]. - There were no other persons with interests or short positions in the shares or underlying shares of the company recorded in the required register[153].

Quantum Thinking Limited 量子思維有限公司 (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 : 8050 20217 Interim Report 中期報告 何聲明，並明確表示概不就因本報告全部或任何部分內容而產生或因倚賴該等內容而引致之任何 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 ...

Quantum Thinking Limited 量子思維有限公司 (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 : 8050 20217 First Quarterly Report 第- 季度業績報告 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 risk ...