Madison Holdings Group Limite d 麥 迪 森 控 股 集 團 有 限 公司 （於開曼群島註冊成立的有限公司） 08057 （股份代號： ） 2023 6 30 截至 年 月 日止三個月之 第一季度業績公告 GEM 香港聯合交易所有限公司（「聯交所」） 的特色 GEM 的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所主板上市 的公司帶有較高投資風險。有意投資者應了解投資於該等公司的潛在風險，並應經過審慎周 詳的考慮後方可作出投資決定。 GEM GEM 由於 上市公司普遍為中小型公司，在 買賣的證券可能會較於主板買賣之證券承受 GEM 較大的市場波動風險，同時無法保證在 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依賴該等內容而引 致之任何損失承擔任何責任。 GEM GEM 本公告乃遵照聯交所 證券上市規則（「 上市規則」）而刊載，旨在提供有關麥迪森控股 集團有限公司（「本公司」）的資料，本公司的董事（「董事」）願就此共同及個別地承 ...

Economic Environment and Business Outlook - The Group's wine and loan financing businesses are still under pressure due to COVID-19 variants and an uncertain economic environment[19] - The company anticipates gradual economic recovery in Hong Kong and mainland China post-COVID-19, although the wine and loan financing businesses remain under pressure due to ongoing threats from COVID-19 variants and an uncertain economic environment[22] - The Board anticipates gradual economic recovery in the PRC and Hong Kong in 2023, which is expected to benefit the Group's business operations[192] - The board anticipates a gradual economic recovery in China and Hong Kong in 2023, which will benefit the group's business development and operations[196] Business Strategy and Diversification - The Group aims to optimize its business portfolio and explore new collaborations to mitigate impacts and create shareholder value[19] - The company aims to optimize its business portfolio and explore new business directions and potential collaborations to mitigate impacts and enhance shareholder value[22] - The company believes that business diversification will enhance its fundamental business and provide additional income streams[20] - The company believes that business diversification will create synergies, consolidate existing core businesses, and provide additional revenue sources while reducing the impact of rising cost structures in a competitive environment[23] - The Group's management is focused on tightening cost control measures and seeking new investment opportunities to diversify its business portfolio[192] - The company aims to actively seek investment opportunities in other sectors to diversify its revenue sources[196] Financial Performance - The Group's revenue from continuing operations decreased by approximately 25.5% to approximately HK$97.2 million for the year ended 31 March 2023, down from HK$130.5 million in 2022[65] - Revenue from the Wine Business decreased by approximately 39.0% to approximately HK$39.9 million, while the Loan Financing Business revenue decreased by approximately 12.0% to approximately HK$57.3 million[65][71] - The Group's loss from continuing operations was approximately HK$1.4 million, representing a decrease of approximately 91.2% compared to a loss of HK$15.9 million in 2022[66] - The Group recorded a segment profit of approximately HK$19.9 million for the year, up from HK$4.0 million in 2022, after deducting impairment and operating costs[101] - The total net impairment loss recognized, including written-off loans, was approximately 6.6% of the total amount of loan receivables, down from 8.0% in 2022[101] - Other income from continuing operations increased to approximately HK$20.1 million, primarily due to gains from the disposal of a subsidiary and equipment[147] Loan Financing and Credit Management - The size of the Group's loan portfolio was significantly reduced to approximately HK$303.5 million, down from HK$446.3 million in 2022[72] - As of 31 March 2023, approximately 42.9% of the carrying amount of the loan portfolio was secured by collaterals, compared to 32.5% in 2022[77] - The Group aims to provide loans covered by sufficient collaterals, preferably properties and assets with good quality[72] - The Group's management has been prudent in granting new loans in light of the prevailing economic conditions in Hong Kong and PRC[72] - The impairment allowance for loan and interest receivables was approximately HK$19.9 million in 2023, a decrease from HK$35.6 million in 2022, including HK$10.9 million attributed to Expected Credit Loss (ECL) and HK$9.0 million written off[82] - The Group's credit monitoring measures include regular collateral reviews and communication with borrowers to assess their financial positions[81] - The Group continues to recover Stage 3 loans through established internal control and recovery procedures[95] Management and Board - The Board expresses gratitude to management and staff for their contributions and to shareholders for their support[21] - Mr. Ji has approximately 9 years of experience in the secured financing industry since participating in the establishment of Shanghai Yintong in 2003[39] - Mr. Chu served as an executive director responsible for investor relations and financial management at Chinese People Holdings Company Limited from December 2008 to September 2020[41] - Dr. Lau has over 18 years of post-qualification legal experience and has been a solicitor at Cheung & Co. since July 2017[49] - Mr. Zhou worked at Microsoft Corporation as a software engineer and technical director from 1991 to 2000 before becoming an entrepreneur in the IT sector[52] - Mr. Zhou was the CEO of Shanghai Wicresoft Co. Ltd. from 2009 to 2014, a company with over 5,000 software engineers[52] Operational Metrics - The Group's loan default rate has increased, raising the historical loss rate and amplifying the valuation of the allowance for impairment[99] - The total amount of overdue loans was approximately HK$24.7 million, representing 8.1% of the overall loan portfolio, a decrease from 20.0% in 2022[86] - The average outstanding amount of Stage 3 loans was approximately HK$104,000, with a total outstanding amount of HK$24.7 million, representing 8.14% of the overall loan portfolio, down from 11.49% in 2022[93] - The Group's loan collection department reviews the risk level of each loan weekly and submits a report to the general manager at least monthly[132] - Legal actions may be initiated against borrowers for overdue payments, with formal reminders and legal demand letters issued for overdue accounts[135] Shareholder and Market Information - The Group had a total of 623,127,227 issued shares as of March 31, 2023[169] - The Group employed 120 employees as of March 31, 2023, a decrease from 124 employees in 2022[186] - No final dividend was recommended for the Year, consistent with 2022[167] - The Group has no significant investments, acquisitions, or disposals during the Year[174] - The Group has complied with all applicable laws and regulations in the PRC and Hong Kong during the Year[191] Environmental and Social Responsibility - The Group is committed to environmental protection and does not produce material waste or emit significant air pollutants[189]

Madison Holdings Group Limite d 麥 迪 森 控 股 集 團 有 限 公司 （於開曼群島註冊成立的有限公司） 08057 （股份代號： ） 2023 3 31 截至 年 月 日止年度之全年業績公告 GEM 香港聯合交易所有限公司（「聯交所」） 的特色 GEM 的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所主板上市 的公司帶有較高投資風險。有意投資者應了解投資於該等公司的潛在風險，並應經過審慎周 詳的考慮後方可作出投資決定。 GEM GEM 由於 上市公司普遍為中小型公司，在 買賣的證券可能會較於主板買賣之證券承受 GEM 較大的市場波動風險，同時無法保證在 買賣的證券會有高流通量的市場。 香港交易所及結算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依賴該等內容而引 致之任何損失承擔任何責任。 GEM GEM 本公告乃遵照聯交所 證券上市規則（「 上市規則」）而刊載，旨在提供有關麥迪森控股 集團有限公司（「本公司」）的資料，本公司的董事（「董事」）願就此共同及個別地承擔全部責 ...

Financial Performance - The Group recorded revenue from continuing operations of approximately HK$70.4 million for the nine months ended December 31, 2022, representing a decrease of approximately 31.5% compared to HK$102.7 million for the same period in 2021[17]. - For the nine months ended December 31, 2022, total revenue decreased to HK$70,419,000 from HK$102,653,000 in the same period of 2021, representing a decline of approximately 31.4%[18]. - Sales of alcoholic beverages for the nine months were HK$29,896,000, down from HK$54,484,000, a decrease of about 45%[18]. - Loan financing services revenue decreased to HK$40,523,000 from HK$48,169,000, reflecting a decline of approximately 15.4%[18]. - The company reported a loss attributable to owners of the Company from continuing operations of HK$2,534,000 for the nine months, compared to a loss of HK$19,319,000 in the same period last year[20]. - The Group's loss before tax for the nine months ended December 31, 2022, was HK$15,875,000, an improvement from a loss of HK$18,463,000 in the previous year[50]. - The total comprehensive expense for the period was HK$25,061,000, compared to HK$6,356,000 in the same period of 2021, indicating a deterioration in overall financial performance[21]. - The company reported a current tax expense of HK$1,479,000 for the nine months, compared to a tax credit of HK$69,000 in the previous year[62]. - The company recorded a loss for the period, with specific figures not disclosed in the provided content[65]. Profitability and Loss - Profit attributable to the owners of the Company from continuing operations for the nine months ended December 31, 2022, amounted to approximately HK$2.5 million, a significant improvement from a loss of HK$19.3 million for the same period in 2021[17]. - The net loss before tax for the nine months was HK$15,875,000, compared to a loss of HK$18,463,000 in the previous year, indicating an improvement[18]. - The basic loss per share for the nine months was HK$0.41, compared to a loss of HK$3.30 in the same period of 2021, indicating an improvement in earnings per share[20]. - The company experienced a net exchange loss of HK$12,019,000 for the nine months, compared to a gain of HK$2,675,000 in the previous year[18]. - The company reported a total comprehensive income attributable to non-controlling interests of HK$503,000 for the three months ended December 31, 2022[21]. - The company reported a loss of HK$20,593,000 for the period, with total accumulated losses reaching HK$860,259,000[23]. Revenue Breakdown - Revenue from the sale of alcoholic beverages for the nine months ended December 31, 2022, was HK$29,896,000, down 45.0% from HK$54,484,000 in the previous year[50]. - Revenue from loan referral services for the three months ended December 31, 2022, was HK$1,555,000, a decrease of 56.7% compared to HK$3,594,000 in the same period of 2021[41]. - Revenue from the PRC for the nine months was HK$34,471,000, down 15.2% from HK$40,608,000 in the previous year[55]. - Revenue from Hong Kong for the nine months was HK$35,948,000, a decline of 42.3% compared to HK$62,045,000 in 2021[55]. - The Group's total revenue from continuing operations decreased by approximately 31.5% to approximately HK$70.4 million from approximately HK$102.7 million in the previous year[134]. Expenses and Costs - Staff costs decreased slightly to HK$24,767,000 from HK$25,229,000, a reduction of about 1.8%[18]. - Administrative and other operating expenses decreased by approximately 44.1% to approximately HK$7.6 million from approximately HK$13.6 million in the previous year[143]. - Finance costs for the nine months decreased to HK$17,853,000 from HK$20,116,000, a reduction of 11.2%[60]. - The total depreciation of plant and equipment and right-of-use assets for the nine months ended December 31, 2022, was HK$3,952,000, down from HK$6,927,000 in the previous year, representing a decrease of 42.5%[79]. - The cost of inventories recognized as an expense for the nine months ended December 31, 2022, was HK$22,189,000, a decrease of 48.0% from HK$42,594,000 in the same period of 2021[69]. Share Options and Equity - The company has conditionally adopted a share option scheme to provide incentives to eligible persons for their contributions to the Group[92]. - A total of 85,922,330 share options were granted under the Specific Mandate at an exercise price of HK$1.03 per share during the nine months ended December 31, 2022[115]. - As of December 31, 2022, the number of outstanding share options under the Share Option Scheme was 50,800,000, representing approximately 8.2% of the total shares issued[112]. - The maximum number of shares that can be allotted and issued upon the exercise of share options was refreshed to 62,312,722 shares, which is 10.0% of the total issued shares as of the resolution date on August 9, 2022[110]. - The total number of share options granted and remained outstanding under the Specific Mandate was 85,922,330 shares, representing 13.8% of the total shares issued as of December 31, 2022[112]. Business Operations and Strategy - The company focuses on retail and wholesale of wine products and other alcoholic beverages, with a particular emphasis on red wine[26]. - The Group's primary business activities include retail and wholesale of wine products and other alcoholic beverages, loan financing, and financial services[129]. - The company aims to actively seek investment opportunities to broaden its income sources and diversify its business portfolio[158]. - The geographical revenue breakdown indicates a significant reliance on the Hong Kong and PRC markets, highlighting the need for market expansion strategies[54]. - The company anticipates a gradual recovery of the economies in the PRC and Hong Kong in 2023, which will benefit the development and operation of its businesses[158]. Corporate Governance - The Directors do not recommend the payment of any dividend for the nine months ended December 31, 2022, consistent with the previous year[17]. - No dividend was paid, declared, or proposed during the nine months ended December 31, 2022, consistent with the previous year[77]. - The company did not have any material acquisition or disposal of significant subsidiaries and affiliated companies during the Period[147]. - There were no arrangements enabling Directors or their close associates to acquire benefits through the acquisition of shares or debentures of the Company or any other body corporate during the period[199].

Financial Performance - The Group recorded revenue from continuing operations of approximately HK$51.0 million for the six months ended September 30, 2022, representing a decrease of approximately 24.8% compared to HK$67.8 million for the same period in 2021[25]. - For the six months ended September 30, 2022, the Group reported a profit attributable to the owners of approximately HK$13.9 million, a significant increase from a loss of HK$7.9 million in the same period of 2021[27][28]. - The profit before tax for the six months ended September 30, 2022, was approximately HK$31.2 million, compared to a loss of HK$6.9 million in the same period of 2021[31]. - The Group's earnings per share for the six months ended September 30, 2022, was HK$2.23, compared to a loss per share of HK$1.46 in the same period of 2021[33]. - Profit for the period increased to HK$24,287,000 for the six months ended September 30, 2022, compared to a loss of HK$6,886,000 in the same period last year[34]. - The total income tax expense for the six months ended September 30, 2022, was HK$6,883,000, compared to HK$3,288,000 for the same period in 2021, reflecting a significant increase[110]. Revenue Breakdown - The Group's revenue from continuing operations for the six months ended September 30, 2022, was approximately HK$21.7 million, compared to HK$29.4 million for the same period in 2021, reflecting a decrease of about 26.5%[31]. - Total revenue for the six months ended September 30, 2022, was HK$51,024,000, a decrease of 25% compared to HK$67,805,000 for the same period in 2021[84]. - Revenue from the sale of alcoholic beverages for the six months ended September 30, 2022, was HK$21,653,000, down 39% from HK$35,449,000 in the previous year[84]. - Loan financing services income for the six months ended September 30, 2022, was HK$6,554,000, a decline of 23% from HK$8,559,000 in the same period of 2021[84]. - The Group's total revenue from sales of alcoholic beverages and loan financing services for the six months ended September 30, 2022, was approximately HK$21.7 million, down from HK$29.4 million in the same period of 2021, indicating a decline of about 26.5%[31]. Operational Costs - The cost of operations for the six months ended September 30, 2022, was approximately HK$51.0 million, down from HK$67.8 million in the same period of 2021, representing a reduction of about 24.0%[31]. - The Group's financial costs for the six months ended September 30, 2022, were approximately HK$1.4 million, a decrease from HK$6.8 million in the same period of 2021[31]. - Total staff costs for the six months ended September 30, 2022, were HK$16,670,000, an increase of 3.0% from HK$16,176,000 in the same period of 2021[116]. Assets and Liabilities - Non-current assets decreased from HK$63,928,000 as of March 31, 2022, to HK$57,515,000 as of September 30, 2022[36]. - Current assets decreased from HK$554,594,000 as of March 31, 2022, to HK$408,563,000 as of September 30, 2022[36]. - Total liabilities decreased from HK$431,847,000 as of March 31, 2022, to HK$296,861,000 as of September 30, 2022[36]. - Trade and other payables decreased to HK$19,709,000 as of September 30, 2022, from HK$29,459,000 as of March 31, 2022[36]. - The company reported accumulated losses of HK$667,348,000, an increase from HK$856,335,000 as of April 1, 2022[45]. Cash Flow - For the six months ended September 30, 2022, net cash from operating activities was HK$ (7,653,000), a decrease from HK$ 32,230,000 in the same period of 2021[59]. - The net increase in cash and cash equivalents for the six months ended September 30, 2022, was HK$ (8,501,000), compared to an increase of HK$ 5,201,000 in the prior year[59]. - Cash and cash equivalents as of September 30, 2022, amounted to HK$ 45,381,000, down from HK$ 49,738,000 as of April 1, 2022[59]. Shareholder Information - The Group did not recommend the payment of an interim dividend for the six months ended September 30, 2022, consistent with the previous year[29]. - The company's share capital remained at HK$6,231,000 and share premium at HK$1,311,985,000 as of September 30, 2022[45]. - As of September 30, 2022, Royal Spectrum Holding Company Limited held approximately 31.58% of the issued share capital of the company[63]. Discontinued Operations - The company incurred a loss of HK$1,346,000 from discontinued operations related to the blockchain services business[122]. - The total profit (loss) for the period from continuing operations was a loss of HK$1,274,000, compared to a loss of HK$1,346,000 for the same period in 2021[116]. Other Financial Metrics - The Group recognized equity-settled share-based payment expenses of HK$410,000 during the reporting period[45]. - The translation reserve showed a loss of HK$23,022,000 as of September 30, 2022, indicating foreign exchange impacts on the company's operations[45]. - The statutory reserve is required to be at least 10% of annual profits after tax, which may be used to offset accumulated losses[54].

Financial Performance - The Group recorded a revenue from continuing operations of approximately HK$26.3 million for the three months ended June 30, 2022, representing a decrease of approximately 22.2% compared to HK$33.8 million for the same period in 2021[26]. - Profit attributable to the owners of the Company from continuing operations for the three months ended June 30, 2022, amounted to approximately HK$7.7 million, compared to a loss of approximately HK$6.6 million for the same period in 2021[28]. - For the three months ended June 30, 2022, the company reported a profit attributable to owners of approximately HK$7,706,000, compared to a loss of HK$7,841,000 for the same period in 2021[32][34]. - Revenue for the three months ended June 30, 2022, was HK$26,348,000, a decrease from HK$33,797,000 in the same period of 2021, representing a decline of approximately 22%[32]. - Profit before tax for the period was HK$16,918,000, compared to a loss of HK$5,300,000 in the same period of 2021[32]. - The total comprehensive income for the period was a loss of HK$6,794,000, compared to a gain of HK$295,000 in the same period of 2021[34]. - The Company reported a loss for the period of HK$7,706,000 for the three months ended June 30, 2022, compared to a loss of HK$7,841,000 for the same period in the previous year[37]. - The gross profit from continuing operations was approximately HK$18,300,000, a decrease of about 3.7% or HK$700,000 from HK$19,000,000 in 2021, mainly attributed to reduced revenue from the wine business[163]. Revenue Breakdown - Revenue from the sale of alcoholic beverages was HK$10,407,000, down 41% from HK$17,724,000 year-on-year[53]. - Revenue from the PRC market was HK$15,941,000, an increase from HK$13,695,000 in 2021, while revenue from Hong Kong decreased to HK$10,407,000 from HK$20,102,000[64]. - Revenue from the Wine Business decreased by approximately 41.2% to approximately HK$10.4 million compared to HK$17.7 million in the same period last year[153]. - Revenue from the Loan Financing Business was approximately HK$15.9 million, comparable to approximately HK$16.1 million in the previous year[153]. - The Group's total revenue from continuing operations decreased by approximately 22.2% to approximately HK$26.3 million from approximately HK$33.8 million in the prior year[157]. Expenses and Costs - The cost of alcoholic beverages for the period was HK$8,092,000, down from HK$14,750,000 in the previous year, indicating a reduction of about 45.0%[32]. - The cost of inventories recognized as an expense decreased to HK$7,865,000 from HK$14,371,000, a reduction of about 45.1% compared to the previous year[77]. - Total staff costs rose to HK$8,494,000 from HK$8,011,000, marking a 6% increase year-over-year[77]. - Administrative and other operating expenses decreased by approximately 47.8% to HK$2,400,000 from HK$4,600,000 in 2021, primarily due to reduced professional fees[166]. - The finance costs from continuing operations were approximately HK$6.7 million, comparable to HK$6.5 million in 2021, as the debt structure remained largely unchanged[167]. Exchange Gains and Losses - Net exchange gain from continuing operations amounted to approximately HK$13.4 million for the three months ended June 30, 2022, an increase of approximately HK$13.8 million compared to a net exchange loss of approximately HK$0.4 million for the same period in 2021[27]. - The company experienced an exchange difference loss of HK$20,382,000 arising from the translation of foreign operations[34]. - Other comprehensive income included an exchange loss of HK$11,070,000 arising from the translation of foreign operations for the period[37]. - Other income from continuing operations was approximately HK$15,400,000, significantly up from HK$600,000 in 2021, mainly due to a net exchange gain of approximately HK$13,400,000[163]. Share Options and Equity - The Company has conditionally adopted a share option scheme to provide incentives to eligible persons, with a total of 18,100,000 share options granted on December 17, 2015[94]. - As of June 30, 2022, the number of outstanding share options under the Share Option Scheme was 50,830,000 shares, which is approximately 8.2% of the total shares in issue[124][125]. - The total number of share options granted to employees, directors, and consultants as of December 6, 2019, was 355,400,000 at an exercise price of HK$0.207 per share[108]. - The maximum number of shares that can be issued upon the exercise of share options was set at 519,272,689 shares after the refreshment of the scheme[111]. - The exercise price of outstanding share options was adjusted following the share consolidation effective on January 20, 2022[122][132]. Dividends and Recommendations - The company did not recommend the payment of any dividend for the three months ended June 30, 2022, consistent with the previous year[30]. - The Directors do not recommend the payment of any dividend for the period, consistent with 2021[172]. Future Outlook - The Group anticipates a challenging year ahead due to macroeconomic fluctuations but will continue to seek investment opportunities to diversify its business portfolio[180]. - The company aims to actively seek investment opportunities in other sectors to diversify its revenue sources[182]. - The board will continuously review the existing business portfolio and tighten cost control measures to enhance business performance[182].

Business Performance - Madison Holdings Group reported a significant increase in revenue, achieving a total of HKD 1.2 billion for the fiscal year 2021/22, representing a growth of 15% compared to the previous year [46]. - The company’s net profit for the year was HKD 150 million, which is a 20% increase year-on-year, indicating strong operational efficiency [46]. - The Group's revenue from continuing operations increased by approximately 22.1% to approximately HK$130.5 million for the year ended 31 March 2022, compared to HK$106.9 million in 2021 [68]. - Revenue from the Wine Business rose by approximately 27.7% to approximately HK$65.4 million, benefiting from improved sales volume due to the easing of COVID-19 restrictions [68]. - Revenue from the Loan Financing Business increased by approximately 16.9% to approximately HK$65.1 million, attributed to higher loan referral services income [68]. - The Group's gross profit increased by approximately HK$13.6 million, contributing to the reduction in overall loss [71]. - Other income increased by approximately HK$13.2 million during the year [71]. - The Group's gross profit margin for the Wine Business improved to approximately 19.5%, compared to 16.8% in the previous year, driven by streamlined operations [102]. - The Group's loss from continuing operations narrowed to approximately HK$15.9 million, a decrease of 10.7% from HK$17.8 million in the previous year [109]. Strategic Initiatives - The Group aims to optimize its business portfolio and explore new directions for potential collaborations to enhance shareholder value [17]. - The Group believes that business diversification will create additional income streams and mitigate the impact of rising costs in a competitive environment [18]. - The group is focused on providing high-quality products and services while optimizing its business portfolio to mitigate the impacts of the COVID-19 pandemic and create higher value for shareholders [20]. - The group is actively seeking new business directions and potential collaborations to alleviate uncertainties and threats posed by the pandemic [20]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years [46]. - A strategic acquisition of a local competitor is in progress, expected to be finalized by Q3 2023, which will enhance Madison's market position [46]. - The company has set a revenue target of HKD 1.5 billion for the next fiscal year, projecting a growth rate of 25% [46]. - The Group plans to review its existing business portfolio and seek new investment opportunities to diversify its income sources [154]. Financial Health - The Group's cash and cash equivalents increased to approximately HK$49.7 million from HK$19.7 million in 2021 [115]. - The current ratio decreased to approximately 1.3 times in 2022 from 1.7 times in 2021, indicating a decline in liquidity [116]. - The gearing ratio increased to approximately 200.1% in 2022 from 145.6% in 2021, attributed to a drop in total equity [116]. - The Group had borrowings totaling approximately HK$352.6 million as of March 31, 2022, compared to HK$348.1 million in 2021 [115]. - The Group's net current assets were approximately HK$122.7 million, a decrease from HK$182.6 million in 2021 [115]. - The total amount of loans and interest receivables impairment recognized reflects the company's assessment of credit risk and economic conditions, including the impact of the COVID-19 pandemic [82][84]. Operational Efficiency - The company is focusing on technological advancements, with plans to implement AI-driven analytics to improve customer experience and operational efficiency [46]. - Madison Holdings has initiated a new partnership with a leading logistics firm to streamline its supply chain operations, aiming for a 15% reduction in delivery times [46]. - The management emphasized a commitment to sustainability, with plans to reduce carbon emissions by 30% over the next five years through various green initiatives [46]. - The Group continues to monitor the recoverability of its loan portfolio closely, implementing credit monitoring measures and regular communication with borrowers [77]. Risk Management - The Group's performance is expected to be affected by ongoing uncertainties related to the COVID-19 pandemic, particularly in the first half of 2022 [154]. - The Group's directors are aware of various principal risks and uncertainties that may significantly impact its performance and future prospects [140][142]. - The total gross profit margin from continuing operations slightly decreased to approximately 59.6% from 60.1% in the previous year [102]. Employee and Governance - As of March 31, 2022, the Group employed 124 employees, a decrease from 128 in 2021 [145][149]. - The Group's employee remuneration is determined based on qualifications, duties, contributions, and experience, with competitive compensation packages compared to market standards [145][149]. - The Board does not recommend the payment of a final dividend for the year ended March 31, 2022 [166].

Financial Performance - For the nine months ended December 31, 2021, the group recorded revenue from continuing operations of approximately HKD 102.7 million, an increase of about 32.3% compared to HKD 77.6 million for the same period in 2020[20] - The loss attributable to owners of the company from continuing operations was approximately HKD 19.3 million, compared to HKD 6.6 million for the same period in 2020[20] - The gross profit for the nine months ended December 31, 2021, was HKD 58.9 million, compared to HKD 46.3 million for the same period in 2020, reflecting an increase of approximately 27.5%[22] - The total revenue from alcoholic beverage sales was HKD 54.5 million for the nine months ended December 31, 2021, compared to HKD 39.9 million for the same period in 2020, indicating a significant growth[22] - The company reported a pre-tax loss of HKD 16.2 million for the nine months ended December 31, 2021, compared to a pre-tax loss of HKD 21.2 million for the same period in 2020[22] - The total comprehensive loss for the nine months ended December 31, 2021, was HKD (6,356) thousand, a decrease from HKD 9,076 thousand in the same period of 2020, reflecting a 170% improvement[26] - The company reported a total loss of HKD (12,073) thousand for the three months ended December 31, 2021, compared to a loss of HKD (20,963) thousand in the same period of 2020, marking a 42.3% reduction[26] - The company reported a loss of HKD 11,468,000 for the nine months ended December 31, 2021, compared to a loss of HKD 9,332,000 for the same period in 2020, representing a 23% increase in losses[68] Revenue Breakdown - Revenue from alcoholic beverage sales for the nine months ended December 31, 2021, was HKD 54,484,000, up 44.3% from HKD 37,746,000 in the previous year[38] - Loan referral service revenue for the three months ended December 31, 2021, increased to HKD 3,594,000 from HKD 495,000 in the same period of 2020, marking a significant growth[38] - Interest income from microloans for the nine months ended December 31, 2021, was HKD 28,830,000, compared to HKD 24,429,000 for the same period in 2020, reflecting a 17.5% increase[38] - Revenue from external customers in China for the nine months ended December 31, 2021, was HKD 40,608,000, a 35.1% increase from HKD 30,074,000 in the previous year[48] - Revenue from external customers in Hong Kong for the nine months ended December 31, 2021, was HKD 62,045,000, up 30.5% from HKD 47,562,000 in the same period of 2020[48] Operational Costs - The operating costs for alcoholic beverage sales were HKD 43.7 million for the nine months ended December 31, 2021, compared to HKD 31.3 million for the same period in 2020[22] - The company experienced a significant increase in operational costs, with employee costs amounting to HKD 25.2 million for the nine months ended December 31, 2021, compared to HKD 30.6 million in the previous year[22] - The company reported a loss of HKD 9,053,000 in employee costs for the three months ended December 31, 2021, compared to HKD 7,643,000 for the same period in 2020, reflecting an increase of 18.5%[56] Dividends and Shareholder Information - The group did not recommend the payment of an interim dividend for the nine months ended December 31, 2021, consistent with the previous year[20] - The company did not declare any interim dividends for the nine months ended December 31, 2021, consistent with the previous year[67] - Royal Spectrum Holding Company Limited holds approximately 31.6% of the company's issued share capital as of December 31, 2021, with Mr. Ding Pengyun being the controlling shareholder owning about 42.2%[33] Discontinued Operations - The company has ceased its alcohol auction business in Hong Kong and cryptocurrency exchange business in Japan, which were previously part of its operations[34] - The revenue from discontinued auction business for the period was HKD 594,000, a significant decrease from HKD 3,956,000 in the previous year[64] - The gross profit from the auction business was HKD 342,000, down from HKD 3,162,000 year-on-year, reflecting a decline of approximately 89%[64] - The company recorded a total loss of HKD 249,000 from discontinued operations during the reporting period[64] Share Options and Corporate Governance - As of December 31, 2021, the number of unexercised share options granted under the share option scheme was 508,300,000 shares, representing about 8.2% of the total issued shares[77] - The group recognized share-based payment expenses of approximately HKD 548,000 for the nine months ended December 31, 2021, compared to approximately HKD 6,844,000 in 2020[80] - The company has adopted a corporate governance code to ensure high standards of governance and protect shareholder interests, effective from January 1, 2022[148] Future Plans and Market Strategy - The company aims to expand its market presence by leveraging its financial services and loan financing operations[34] - The company plans to enhance cost control measures and seek new investment opportunities to diversify its revenue sources[114] - The company plans to acquire a 49.0% stake in Up Sail Ventures Limited for approximately HKD 133.7 million, diversifying into the education management services sector in China[109] Economic Environment - The ongoing COVID-19 pandemic, particularly the Omicron variant, continues to pose uncertainties for the global economic outlook[114]

Financial Performance - For the six months ended September 30, 2021, the Group recorded revenue from continuing operations of approximately HKD 67.8 million, an increase of about 43.3% compared to HKD 47.3 million for the same period in 2020[23]. - The loss attributable to owners of the company was approximately HKD 9.1 million, compared to a profit of approximately HKD 6.4 million for the same period in 2020[23]. - For the six months ended September 30, 2021, total revenue from continuing operations was HKD 35,449,000, an increase of 48.9% compared to HKD 23,816,000 for the same period in 2020[25]. - The gross profit for the six months ended September 30, 2021, was HKD 39,257,000, representing a 40.3% increase from HKD 28,000,000 in the prior year[25]. - The total comprehensive income for the period was HKD 1,631,000, a decrease of 96.5% from HKD 46,549,000 in the previous year[27]. - The company reported a loss attributable to owners of the company from continuing operations of HKD 7,851,000 for the six months ended September 30, 2021, compared to a profit of HKD 8,792,000 in the same period of 2020[25]. - The group reported a segment profit of HKD 5,706 thousand from the alcohol beverage sales for the three months ended September 30, 2021, compared to a loss of HKD 480 thousand in the same period of 2020[54]. - The group recorded a loss from continuing operations of approximately HKD 5,500,000, compared to a profit of HKD 2,900,000 in 2020[174]. Revenue Breakdown - Revenue from the alcohol beverage sales segment for the six months ended September 30, 2021, was HKD 35,449 thousand, up 48.9% from HKD 23,816 thousand in the previous year[47]. - Loan referral service revenue for the six months ended September 30, 2021, reached HKD 8,559 thousand, representing an increase of 91.5% compared to HKD 4,472 thousand for the same period in 2020[47]. - Revenue from China for the three months ended September 30, 2021, was HKD 13,879,000, up from HKD 11,258,000 for the same period in 2020, showing a growth of 23.4%[60]. - Revenue from Hong Kong for the three months ended September 30, 2021, was HKD 20,129,000, compared to HKD 12,651,000 for the same period in 2020, reflecting a significant increase of 59.1%[60]. Assets and Liabilities - Non-current assets as of September 30, 2021, totaled HKD 20,668,000, compared to HKD 146,886,000 as of March 31, 2021[29]. - Current assets amounted to HKD 562,955,000 as of September 30, 2021, an increase from HKD 457,747,000 as of March 31, 2021[29]. - The total liabilities as of September 30, 2021, were HKD 436,166,000, compared to HKD 275,162,000 as of March 31, 2021[29]. - The company’s equity attributable to owners was HKD 182,066,000 as of September 30, 2021, down from HKD 239,092,000 as of March 31, 2021[31]. - Total assets amounted to HKD 631,614,000 as of September 30, 2021, down from HKD 649,423,000 as of March 31, 2021, representing a decrease of 2.4%[57]. - Total liabilities increased to HKD 449,548,000 as of September 30, 2021, compared to HKD 410,331,000 as of March 31, 2021, marking a rise of 9.6%[57]. Cash Flow and Financing - For the six months ended September 30, 2021, the net cash generated from operating activities was HKD 32,230,000, compared to HKD 118,397,000 for the same period in 2020, representing a decrease of approximately 72.7%[39]. - The total cash and cash equivalents as of September 30, 2021, amounted to HKD 24,456,000, down from HKD 39,986,000 as of September 30, 2020, indicating a decline of about 38.9%[39]. - The company experienced a net cash outflow from financing activities of HKD 2,981,000 for the six months ended September 30, 2021[39]. - The company raised approximately HKD 55,963,000 from the issuance of 1,038,545,379 shares at a price of HKD 0.055 per share in December 2020[138]. - The company confirmed lease liabilities of approximately HKD 20,567,000 for new lease agreements during the reporting period[115]. Dividends and Shareholder Information - The Board does not recommend the payment of an interim dividend for the six months ended September 30, 2021, compared to no dividend for the same period in 2020[23]. - The company did not declare any interim dividends for the six months ended September 30, 2021, consistent with the previous year[92]. - The company’s controlling shareholder, Mr. Ding Pengyun, held approximately 42.2% of the issued share capital as of September 30, 2021[41]. - As of September 30, 2021, the total issued and fully paid shares were 6,231,272,277, with a par value of HKD 0.001 per share[138]. Business Operations and Strategy - The company ceased its alcohol auction business in Hong Kong and cryptocurrency exchange business in Japan, which were previously part of its operations[42]. - The company’s major operations include the sale of alcoholic beverages, financial services, and loan financing services[42]. - The company plans to continue its market expansion and product development strategies to enhance its competitive position in the industry[141]. - The company aims to actively seek investment opportunities in other sectors to broaden its revenue sources and maintain long-term growth[196]. Employee and Share Options - The company employed 124 staff members as of September 30, 2021, down from 128 as of March 31, 2021[187]. - The company has granted a total of 18,100,000 share options under the share option plan, with an exercise price of HKD 8.00 per share, adjusted to 0.80 HKD per share after a share split[151]. - The company recognized share-based payment expenses of approximately HKD 410,000 for the six months ended September 30, 2021, compared to HKD 6,334,000 for the same period in 2020[158].

Financial Performance - For the three months ended June 30, 2021, the group recorded revenue from continuing operations of approximately HKD 33,800,000, an increase of about 44.4% compared to HKD 23,400,000 for the same period in 2020[20] - The loss attributable to owners of the company for the three months ended June 30, 2021, was approximately HKD 7,800,000, significantly reduced from HKD 27,400,000 for the same period in 2020[20] - The gross profit for the three months ended June 30, 2021, was HKD 19,047,000, compared to HKD 14,661,000 for the same period in 2020[22] - The company reported a pre-tax loss of HKD 5,300,000 for the three months ended June 30, 2021, compared to a pre-tax loss of HKD 32,550,000 for the same period in 2020[22] - The company’s total loss for the three months ended June 30, 2021, was HKD 7,746,000, a significant improvement from HKD 32,584,000 for the same period in 2020[22] - The company reported a loss of HKD 7,746,000 for the three months ended June 30, 2021, compared to a loss of HKD 32,584,000 for the same period in 2020, representing a 76.3% improvement in losses year-over-year[26] - Total comprehensive income for the period amounted to HKD 295,000, a significant recovery from a total comprehensive loss of HKD 31,500,000 in the previous year[26] - The company recorded a foreign exchange gain of HKD 5,230,000 from the translation of overseas operations, compared to a gain of HKD 2,811,000 in the prior year[26] Revenue Sources - The company’s total revenue from alcohol beverage sales and financial services for the three months ended June 30, 2021, was HKD 33,797,000, compared to HKD 23,414,000 for the same period in 2020[22] - Alcoholic beverage sales generated revenue of HKD 17,724 thousand, up 68.8% from HKD 10,488 thousand year-on-year[38] - Loan referral service revenue increased to HKD 4,105 thousand, a 141.5% rise from HKD 1,702 thousand in the previous year[38] - The total revenue from loan financing services reached HKD 16,073 thousand, compared to HKD 12,926 thousand in the same period last year, marking a 24.8% increase[45] - Revenue from external customers in China was HKD 13,695 thousand, an increase from HKD 10,401 thousand year-on-year[50] Cost and Expenses - The total operating costs for the three months ended June 30, 2021, included alcohol beverage costs of HKD 14,750,000, compared to HKD 8,753,000 for the same period in 2020[22] - The total interest expenses for the three months ended June 30, 2021, were HKD 6,521 thousand, down from HKD 11,588 thousand in the same period of 2020[53] - The company reported a total employee cost of HKD 8,011 thousand, down from HKD 12,522 thousand in the previous year[58] Shareholder Information - The company’s major shareholder, Mr. Ding Pengyun, holds approximately 42.2% of the issued share capital, indicating a concentrated ownership structure[32] - As of June 30, 2021, the total number of issued shares was 6,231,272,277[108] - Royal Spectrum holds 1,968,000,000 shares, representing approximately 31.58% of the total shares[110] - Devoss Global has a total interest in 1,974,000,000 shares, which is about 31.68%[110] - Mr. Ding holds 2,486,916,727 shares, accounting for 42.19% of the total shares[110] Corporate Actions and Strategy - The company has ceased its alcohol auction business in Hong Kong and cryptocurrency exchange business in Japan, which may impact future revenue streams[33] - The company is focusing on expanding its financial services and loan financing operations as part of its strategic direction[33] - The company aims to enhance its operational efficiency and explore new market opportunities in the financial services sector[33] - The company is seeking suitable acquisition opportunities to enhance shareholder returns following the sale of its blockchain services business[98] - The company plans to acquire a 49.0% stake in Up Sail Ventures Limited, which provides education management services in China[98] Stock Options and Equity - The company granted a total of 219,000,000 stock options at an exercise price of HKD 1.89 per share on April 3, 2018[74] - As of June 30, 2021, the total number of unexercised stock options under the plan was 508,300,000 shares, representing approximately 8.2% of the total issued shares[77] - The fair value of stock options granted to employees and directors was calculated using a binomial model, with an expected volatility of 59.126% to 59.774%[79] - The company recognized share-based payment expenses of approximately HKD 205,000 for the three months ended June 30, 2021, compared to HKD 4,410,000 for the same period in 2020[80] Compliance and Governance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable regulations[35] - The company has not adopted any new accounting standards that would significantly impact its financial performance for the current period[35] - The company has maintained all other terms and conditions of the unexercised stock options granted under the stock option plan[76] - The company has adopted high standards of corporate governance to protect shareholder interests and enhance corporate value[133] - The audit committee was established on September 21, 2015, and is responsible for reviewing the financial systems and accounting policies of the group[134]