Core Viewpoint - The company, Pinchuang Holdings (08066), has reported optimistic developments in its e-commerce business, particularly through its AI-driven services and private domain e-commerce platform [1] E-commerce Business Performance - The e-commerce segment has achieved approximately HKD 60.9 million in unaudited total revenue and about HKD 55.6 million in unaudited pre-tax profit for the six months ending June 30, 2025 [1] - The strong performance of the e-commerce business marks a milestone in the company's growth and establishes a foundation for capturing opportunities in the expanding e-commerce platform industry [1] Membership and User Engagement - The private domain e-commerce platform has not only generated rapid growth in performance but has also accumulated over 100,000 loyal members [1] AI Voice Technology Services - The subsidiary, Cyber Illusion (Hong Kong) Limited, is involved in AI voice technology data collection and annotation, contributing over 100,000 voice material contributors, which supports the company's transformation into an AI data service provider [1] Future Outlook - The company plans to continue seeking suitable investment opportunities to enhance growth potential and is committed to delivering valuable and sustainable returns to shareholders [1]

本公告是由品創控股有限公司（「本公司」，連同其附屬公司，統稱「本集團」）董事 （「董事」）會（「董事會」）自願刊發，以知會本公司股東（「股東」）有關本集團的最 新業務發展。 香港交易及結算所有限公司及香港聯合交易所有限公司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，並明確表示概不會就本公告全部或任何部份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。 PHOENITRON HOLDINGS LIMITED 品創控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：8066） 自願性公告 業務最新進展 執行董事 郭榕翔 香港，二零二五年八月六日 謹此提述本公司日期為二零二四年十一月二十一日及二零二五年一月十日之公 告，內容有關（其中包括）本集團發展電子商務業務（「電子商務業務」）及收購山 西動創數娛科技集團有限公司（「山西動創」，前稱海南動創數娛科技集團有限公 司）。 董事會欣然宣佈，電子商務業務（包括泛娛樂數字生態系統會員電子商務平台 － 動創電商APP服務平台的運營及通過人工智能平台提供語音技術相關服務）的發展 甚為樂觀。根據山西動創及賽博幻境（香港）有限公司（前稱智能生產 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年7月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 品創控股有限公司 | | | 呈交日期: | 2025年8月4日 | | | I. 法定/註冊股本變動 | | | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08066 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,500,000,000 | HKD | | 0.2 HKD | | 300,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 1,500,000,000 | HKD ...

Group 1 - The core viewpoint of the news highlights the significant stock performance of Phoenitron Holdings, which has seen a remarkable increase in its share price over the past month and year, despite a decline in revenue and profit [1][2]. - Phoenitron Holdings' stock price rose by 20.97% to HKD 0.75 per share, with a trading volume of 2.54 million shares and a turnover of HKD 1.77 million, indicating a volatility of 20.97% [1]. - Over the past month, Phoenitron Holdings has achieved a cumulative increase of 157.26%, and a year-to-date increase of 629.41%, outperforming the Hang Seng Index by 20.38% [1]. Group 2 - Financial data shows that for the year ending December 31, 2024, Phoenitron Holdings reported total revenue of HKD 55.177 million, a decrease of 24.68% year-on-year, and a net profit attributable to shareholders of HKD 419,500, down 89.55% year-on-year [1]. - The company's gross profit margin stands at 36.91%, with a debt-to-asset ratio of 47.62% [1]. - In terms of industry valuation, the average price-to-earnings (P/E) ratio for the information technology equipment sector is 55.17 times, while Phoenitron Holdings has a P/E ratio of 794.36 times, ranking 31st in the industry [1].

Summary of Key Points Core Viewpoint - As of July 8, a total of 109 stocks reached their 52-week highs, indicating a strong performance in the market, with notable leaders in the high-growth category [1]. Group 1: Stocks Reaching 52-Week Highs - Jin Yong Investment (01328) achieved a high rate of 237.08%, closing at 12.600 and peaking at 15.000 [1]. - Pin Chuang Holdings (08066) recorded a high rate of 37.37%, with a closing price of 0.620 and a peak of 0.680 [1]. - Baishida Holdings (01168) reached a high rate of 21.79%, closing at 8.730 and peaking at 9.000 [1]. - Other notable stocks include China Chunlai (01969) with an 18.10% increase, and Datang Xishi (00620) with a 16.67% increase [1]. Group 2: Additional Stocks with Significant Increases - China Anshu Energy (02399) and Charoen Pokphand International (03839) both saw increases of 16.67% and 14.96% respectively [1]. - OSL Group (00863) and New Fire Technology Holdings (01611) also showed strong performance with increases of 12.30% and 12.00% respectively [1]. - The list continues with various companies showing increases ranging from 10.36% to 3.28%, indicating a broad market rally [2][3]. Group 3: Stocks Reaching 52-Week Lows - On the downside, Dixintong (06188) experienced a significant drop of 23.22%, closing at 0.182 with a low of 0.162 [3]. - Other companies like Aidewei Construction Group (06189) and Dali Environmental (01790) also faced declines of 8.75% and 7.69% respectively [3]. - The trend of declining stocks includes several others with varying degrees of loss, highlighting the volatility in certain sectors [3][4].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a consolidated revenue of approximately HKD 59,584,000, a decrease of about 24.7% compared to HKD 79,105,000 in 2023[15]. - The profit attributable to the company's owners was approximately HKD 453,000, down from HKD 4,336,000 in the previous year, representing a decline of about 89.6%[15]. - Revenue for the year ended December 31, 2024, was HKD 59,583,826, a decrease of 24.7% compared to HKD 79,104,966 in 2023[183]. - Gross profit for 2024 was HKD 21,992,109, down 20.6% from HKD 27,733,778 in 2023[183]. - Net profit for the year was HKD 451,808, a significant decline of 89.6% from HKD 4,334,422 in 2023[183]. - The company recognized a net loss of HKD 1,547,036 from other income/losses in 2024, compared to a gain of HKD 1,408,548 in 2023[183]. Sales and Revenue Sources - During the reporting period, the company experienced a significant drop in sales of smart cards, with a decrease of approximately HKD 15,800,000 or 42.3% in the first half of 2024 compared to the same period last year[18]. - The company reported revenue from smart card sales of approximately HKD 57.4 million for the fiscal year ending December 31, 2024, a decrease of about HKD 21.7 million or 27.4% compared to HKD 79.1 million in the same period of 2023[29]. - The group's revenue primarily comes from the production and sales of smart card contracts[119]. - The largest customer accounted for 66% of total sales, while the top five customers combined represented 97% of sales[154]. Assets and Financial Position - The total assets as of December 31, 2024, were reported at HKD 72,755,127[9]. - Total assets as of December 31, 2024, increased to HKD 58,959,322 from HKD 44,362,935 in 2023, reflecting a growth of 33.2%[184]. - Cash and cash equivalents rose to HKD 13,822,703 in 2024, compared to HKD 7,224,481 in 2023, marking an increase of 91.1%[184]. - Total equity as of December 31, 2024, was HKD 40,924,626, slightly up from HKD 40,439,820 in 2023, an increase of 1.2%[186]. Cost and Efficiency Measures - The cost of sales for smart cards was approximately HKD 37.1 million, down about HKD 14.3 million or 27.8% from HKD 51.4 million in 2023, aligning with the revenue decline[31]. - The gross profit for smart card sales decreased to approximately HKD 22 million, a reduction of about HKD 5.7 million or 20.7% from HKD 27.7 million in the previous year[32]. - The management team has implemented cost-cutting measures to improve productivity and operational efficiency[18]. - The relocation of the Shenzhen factory is expected to improve overall production and operational efficiency by 15% to 20%[19]. Strategic Initiatives - The company plans to enhance its market share by strengthening relationships with existing customers and expanding its customer base[18]. - The company aims to explore new business opportunities in the advertising, media, and entertainment sectors as part of its diversification strategy[21]. - The company has completed the acquisition of 100% equity in Hainan Dongchuang Digital Entertainment Technology Group, aiming to enhance its digital platform business and e-commerce services[22]. - The digital platform business is currently in a trial operation phase and includes over 30,000 listed products[24]. Governance and Compliance - The board consists of seven members, including four executive directors and three independent non-executive directors[66]. - The audit committee confirmed that the financial statements comply with applicable accounting standards and regulations[76]. - The company has established a strategy for effective oversight of management and operational matters by the board[70]. - The board believes that the internal control system and risk management are effective and adequate as of December 31, 2024, although these systems can only provide reasonable assurance against significant misstatements or losses[98]. Shareholder and Stakeholder Relations - The company aims to enhance its shareholder communication policy, providing clear and detailed information through various channels, including interim and annual reports[106]. - The company is committed to maintaining effective communication and good relationships with key stakeholders, including employees, customers, and suppliers[153]. - The company has proposed amendments to its articles of association to comply with new regulatory requirements regarding electronic communication with shareholders[107]. Financial Instruments and Capital Structure - The company raised a total of HKD 16.5 million through the issuance of convertible bonds, with net proceeds of approximately HKD 16.39 million intended for general working capital and ongoing development of existing media and entertainment businesses[23]. - The company issued a three-year convertible bond with a principal amount of HKD 16,500,000 at an interest rate of 5%, convertible into 55,000,000 shares at an initial conversion price of HKD 0.30 per share[136]. - The net proceeds from the convertible bond issuance amounted to approximately HKD 16,400,000, with planned uses including HKD 8.9 million for developing existing media and e-commerce businesses and HKD 7.5 million for general working capital[137]. Employee and Management Information - Employee costs, including director remuneration, were approximately HKD 22,800,000 for the reporting period, down from HKD 25,800,000 in 2023[46]. - The group employed 136 employees as of December 31, 2024, up from 126 in 2023, with approximately 36% of employees being female[46]. - The company’s senior management team consists of executive directors and independent non-executive directors[147]. Risk Management - The company has maintained its foreign exchange risk management policy, monitoring foreign currency cash flows to mitigate risks[53]. - The company has a risk management director with over 7 years of compliance and risk management experience[112]. - The company has established procedures for handling and disclosing inside information, ensuring compliance with GEM listing rules[101].

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately HKD 59,584,000, a decrease of 24.7% compared to approximately HKD 79,105,000 for the same period in 2023[5] - The profit attributable to the company's owners for the fiscal year was approximately HKD 453,000, down from approximately HKD 4,336,000 in 2023[7] - Gross profit for 2024 was HKD 21,992,109, down 20.6% from HKD 27,733,778 in 2023[20] - The net profit for the year was HKD 451,808, a significant decline from HKD 4,334,422 in the previous year, representing a drop of 89.6%[20] - The operating profit before tax for 2024 was HKD 451,808, significantly down from HKD 4,329,715 in 2023[39] - The company reported a net loss in the media and entertainment segment of HKD 3,156,951 for 2024, compared to a loss of HKD 3,058,576 in 2023[38] - The total comprehensive income for the year was HKD 3,751,302, which includes the net profit and foreign exchange losses[26] Revenue Breakdown - The group recorded revenue of approximately HKD 57,400,000 from smart card contract production and sales, a decrease of approximately 27.4% from approximately HKD 79,100,000 in the previous year[10] - Revenue from the sale of smart cards was HKD 57,395,803 in 2024, down from HKD 79,098,836 in 2023, representing a decline of approximately 27.5%[38][39] - Revenue from external customers in China for 2024 was HKD 9,096,932, up from HKD 8,403,153 in 2023, reflecting an increase of approximately 8.2%[41] - Revenue from smart card sales for the fiscal year ending December 31, 2024, was approximately HKD 57,400,000, a decrease of about HKD 21,700,000 or 27.4% compared to HKD 79,100,000 in the same period of 2023[73] Dividends and Shareholder Returns - The board of directors did not recommend the payment of any final dividend for the fiscal year, consistent with the previous year[8] - The company did not recommend any dividend for the year ending December 31, 2024, consistent with the previous year[52] - The basic earnings per share remained unchanged at HKD 0.00 for both 2024 and 2023, with a weighted average number of ordinary shares of 525,347,500[53][54] Assets and Liabilities - Total assets less current liabilities rose to HKD 58,959,322 in 2024, compared to HKD 44,362,935 in 2023, reflecting a growth of 32.9%[23] - The total assets for the group in 2024 amounted to HKD 78,134,086, compared to HKD 69,061,929 in 2023, indicating an increase of approximately 13.5%[39] - The total liabilities for 2024 were HKD 37,209,460, up from HKD 28,622,109 in 2023, reflecting an increase of about 30%[39] - The company's cash and cash equivalents increased to HKD 13,822,703 in 2024, up from HKD 7,224,481 in 2023, indicating improved liquidity[23] Strategic Investments and Acquisitions - The company invested approximately HKD 26,900,000 in the production of the television drama "Snow Leopard 2," which is planned to be released by the end of 2025[13] - The acquisition of 100% equity in Hainan Dongchuang Digital Entertainment Technology Group was completed, aiming to operate a digital e-commerce platform[14] - The acquisition of Hainan Dongchuang is a strategic move to expand the company's digital economy services and market share, with over 30,000 listed products currently in the trial operation phase[17] - The acquisition of Hainan Dongchuang was completed for a cash consideration of RMB 240,000 (approximately HKD 258,065)[70] Operational Efficiency - The new Shenzhen factory layout is expected to improve overall production and operational efficiency by 15% to 20%[12] - The company has successfully upgraded its hardware and software to meet GSMA SAS certification standards by the end of 2024, aiming to attract new international clients in 2025[17] Financial Health and Ratios - The company's cash and cash equivalents for 2024 were HKD 13,822,703, compared to HKD 7,224,481 in 2023, indicating a significant increase of approximately 91.1%[38][39] - The current ratio improved to 1.6 as of December 31, 2024, compared to 1.1 in the previous year[85] - The debt-to-equity ratio was 26.3% as of December 31, 2024, up from 11.3% in 2023[91] Compliance and Governance - The company has not adopted any new or revised Hong Kong Financial Reporting Standards that would significantly impact its financial statements for the current or prior years[30] - The company’s financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and comply with applicable disclosure requirements[27] - The board believes that good corporate governance practices are essential for effective management and enhancing shareholder value, and it has adhered to the corporate governance code throughout the reporting period, except for the separation of the roles of Chairman and CEO[97][98] Future Outlook - The company anticipates facing greater challenges in the smart card business due to price and market pressures from Chinese competitors by 2025[17] - The company expects to receive a 30% share of net profits from the television program investment, projected to be released by the end of 2025[61]

Financial Performance - For the six months ended June 30, 2024, the unaudited revenue was approximately HKD 21,628,000, a decrease of 42.3% compared to approximately HKD 37,469,000 for the same period in 2023[2] - The group recorded an unaudited loss attributable to owners of the company of approximately HKD 3,049,000, compared to an unaudited profit of approximately HKD 1,259,000 for the same period in 2023[2] - The total comprehensive loss for the period amounted to HKD 3,125,339, compared to a total comprehensive income of HKD 1,798,853 for the same period in 2023[4] - The gross profit for the six months ended June 30, 2024, was HKD 6,566,824, down from HKD 11,644,338 in the same period of 2023[3] - The basic and diluted loss per share for the period was HKD (0.580), compared to earnings per share of HKD 0.240 for the same period in 2023[5] - The company reported a loss before tax of HKD 3,050,402 for the six months ended June 30, 2024, compared to a profit of HKD 1,257,580 for the same period in 2023[22] - The company reported a net loss of approximately HKD 3,050,000 for the period, compared to a profit of approximately HKD 1,260,000 in the same period of 2023[46] Cash Flow and Assets - The company's cash and cash equivalents decreased to HKD 6,554,583 as of June 30, 2024, from HKD 7,224,481 as of December 31, 2023[6] - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 631,624, compared to a net cash used of HKD 146,506 in the same period of 2023[12] - The net cash used in investing activities was HKD 5,122,468 for the six months ended June 30, 2024, compared to HKD 548,459 in the previous year[12] - The net cash generated from financing activities was HKD 4,013,397, a significant improvement from the net cash used of HKD 2,783,285 in the same period of 2023[12] - The total assets as of June 30, 2024, amounted to HKD 66,089,327, while total liabilities were HKD 28,530,944, resulting in a net asset position[18] - The company's non-current assets increased to HKD 46,791,892 as of June 30, 2024, compared to HKD 42,542,733 as of December 31, 2023[6] - The company's total liabilities increased to HKD 26,403,817 as of June 30, 2024, compared to HKD 24,698,994 as of December 31, 2023[6] Dividends and Shareholder Information - The company did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[2] - The company reported a total equity attributable to owners of HKD 40,439,820 as of January 1, 2024, compared to HKD 38,487,371 as of June 30, 2023[10] - Major shareholders include Golden Dice Co., Ltd. with 15.00% and Best Heaven Limited with 6.01% of the company's shares as of June 30, 2024[61] - The company has a total of 37,179,250 stock options outstanding as of June 30, 2024, with an exercise price of HKD 0.20[63] Operational Insights - The company operates in five business segments: sales of smart cards, sales of smart card application systems, financial and management consulting services, scrap metal sales and trading, and media and entertainment[14] - The company expects to continue focusing on expanding its market presence and enhancing its product offerings in the upcoming quarters[10] - The company’s financial performance is expected to improve as it continues to optimize its operational efficiency and explore new market opportunities[10] Accounting and Governance - The company has not adopted new accounting standards that have been issued but not yet effective, which may impact future financial reporting[13] - The audit committee, composed of three independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2024, confirming compliance with applicable accounting standards[64] - The company has adhered to all provisions of the corporate governance code during the six months ended June 30, 2024, except for the separation of the roles of Chairman and CEO[65] - The company has established a set of code of conduct for directors' securities transactions, which complies with GEM Listing Rules[67] Foreign Exchange and Risks - The company is exposed to foreign currency risk primarily from investments in television programs and overseas sales and purchases, mainly denominated in RMB and USD[57] - The company incurred a foreign exchange loss of HKD 595,541 for the six months ended June 30, 2024, compared to a loss of HKD 1,121,053 in the same period of 2023, indicating an improvement[21] Employee and Operational Metrics - The company employed 141 staff as of June 30, 2024, an increase from 126 staff as of December 31, 2023, with employee costs around HKD 11,000,000[48] - Current assets were approximately HKD 19,300,000, a decrease from approximately HKD 26,500,000 as of December 31, 2023, while current liabilities increased to approximately HKD 26,400,000 from approximately HKD 24,700,000[47] Investments and Acquisitions - The investment in television programs increased to HKD 31,935,484 as of June 30, 2024, from HKD 29,735,683 as of December 31, 2023[6] - The fair value gain from investments in television programs was approximately HKD 2,900,000 for the period, compared to HKD 1,620,000 in the same period of 2023[43] - The company entered into a subscription agreement on February 10, 2023, to raise additional capital of HKD 16,500,000 through the issuance of convertible bonds, which have not yet been issued as of June 30, 2024[56] - There were no significant acquisitions or disposals of subsidiaries or associates during the period[50]

Financial Performance - For the six months ended June 30, 2024, the unaudited revenue was approximately HKD 21,628,000, a decrease of 42.3% compared to approximately HKD 37,469,000 for the same period in 2023[2] - The group recorded an unaudited loss attributable to owners of the company of approximately HKD 3,049,000, compared to an unaudited profit of approximately HKD 1,259,000 in 2023[2] - Gross profit for the six months ended June 30, 2024, was HKD 6,566,824, down from HKD 11,644,338 in the same period of 2023[3] - Total comprehensive loss for the period attributable to owners of the company was HKD 3,124,239, compared to a total comprehensive income of HKD 1,799,878 in 2023[5] - The company reported a basic and diluted loss per share of HKD 0.580 for the six months ended June 30, 2024, compared to earnings per share of HKD 0.240 in 2023[5] - The company reported a loss before tax of HKD 3,050,402 for the six months ended June 30, 2024, compared to a profit before tax of HKD 1,257,580 for the same period in 2023[14] - Financial expenses for the six months ended June 30, 2024, were HKD 121,492, an increase from HKD 98,338 in the same period of 2023[20] - The company reported a gross inventory cost of HKD 15,061,348 for the six months ended June 30, 2024, down from HKD 25,824,628 in the same period of 2023[18] - Other income was HKD 82,650, including bank interest income of HKD 3,105 and miscellaneous income of HKD 79,545, compared to HKD 811,412 in the same period of 2023[37] Dividends and Shareholder Information - The board of directors did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[2] - The company did not declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[25] - Major shareholders include Golden Dice Co., Ltd. with 15.00% and Best Heaven Limited with 6.01% of the company's shares as of June 30, 2024[55] - The company has a total of 37,179,250 share options outstanding as of June 30, 2024, with an exercise price of HKD 0.20[56] - As of June 30, 2024, the company's directors and key executives hold a total of 4,500,000 share options, representing approximately 0.88% to 1.68% of the issued share capital[53] Assets and Liabilities - The company's net assets as of June 30, 2024, were HKD 37,314,481, down from HKD 40,439,820 as of December 31, 2023[8] - Current liabilities increased to HKD 26,403,817 from HKD 24,698,994, indicating a rise in financial obligations[7] - Total assets as of June 30, 2024, amounted to HKD 66,089,327, while total liabilities were HKD 28,774,846[15] - The company's total equity as of June 30, 2024, was HKD 38,487,371, an increase from HKD 36,688,518 at the beginning of the period[9] - The company's total liabilities included other borrowings amounting to HKD 243,902 as of June 30, 2024[15] - Current assets were approximately HKD 19,300,000, down from HKD 26,500,000 as of December 31, 2023, while current liabilities increased to approximately HKD 26,400,000 from HKD 24,700,000[42] - The current ratio decreased to 0.7 as of June 30, 2024, compared to 1.1 as of December 31, 2023[42] - The group's debt-to-equity ratio was 8.1% as of June 30, 2024, down from 11.3% as of December 31, 2023[48] Cash Flow - The company reported a net cash inflow from operating activities of HKD 631,624 for the six months ended June 30, 2024, compared to a net outflow of HKD 146,506 in the same period last year[10] - The net cash outflow from investing activities was HKD 5,122,468 for the six months ended June 30, 2024, significantly higher than HKD 548,459 in the previous year[10] - The net cash inflow from financing activities was HKD 4,013,397, contrasting with a net outflow of HKD 2,783,285 in the prior year[10] - The company experienced a decrease in cash and cash equivalents of HKD 477,447, compared to a decrease of HKD 3,478,250 in the same period last year[10] - The company’s cash and cash equivalents at the end of the period were HKD 6,554,583, up from HKD 2,765,798 at the end of the previous year[10] - As of June 30, 2024, the group had cash and bank balances of approximately HKD 6,600,000, down from HKD 7,200,000 as of December 31, 2023[42] Operational Highlights - The company did not disclose any new product developments or market expansion strategies during the reporting period[3] - The group had no taxable profits in China for the six months ended June 30, 2024, resulting in no provision for corporate income tax[23] - The group reported inventory of HKD 2,550,336 for finished goods as of June 30, 2024, compared to HKD 1,036,738 as of December 31, 2023[33] - The group is exposed to foreign currency risk primarily from investments in television programs and overseas sales and purchases, mainly denominated in RMB and USD[52] - The group recorded a net other loss of approximately HKD 590,000 during the reporting period, compared to HKD 1,120,000 for the same period in 2023[38] - Administrative expenses increased slightly by about HKD 390,000 or 3.7% to approximately HKD 10,890,000 from HKD 10,500,000 in the same period of 2023[40] Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2024, confirming compliance with applicable accounting standards and sufficient disclosure[57] - The company believes it has adhered to all provisions of the corporate governance code during the six months ended June 30, 2024, except for the separation of the roles of Chairman and CEO, which are held by the same individual due to the company's small scale[58] - No securities were purchased, sold, or redeemed by the company or its subsidiaries during the six months ended June 30, 2024[61]

Financial Performance - For the fiscal year ending December 31, 2023, the company recorded a consolidated revenue of approximately HKD 79,105,000, a 35.3% increase from HKD 58,482,000 in 2022[16] - The company achieved a profit attributable to owners of approximately HKD 4,336,000, compared to a loss of HKD 7,735,000 in the previous year[16] - The SIM card contract production and sales business significantly improved, with a profit of approximately HKD 14,250,000, up from HKD 1,460,000 in 2022[19] - For the fiscal year ending December 31, 2023, the company reported revenue from smart card sales of approximately HKD 79,100,000, an increase of about HKD 20,630,000 or 35.3% compared to approximately HKD 58,470,000 in the same period of 2022[30] - Gross profit from smart card sales increased by approximately HKD 12,760,000 or 85.2%, reaching about HKD 27,730,000, compared to approximately HKD 14,970,000 in the previous year[33] - The company recorded a net profit attributable to shareholders of approximately HKD 4,340,000 for the reporting period, a significant recovery from a loss of approximately HKD 7,740,000 in 2022[46] - The company reported a profit before tax of HKD 4,329,715, a turnaround from a loss of HKD 7,735,530 in the previous year[179] - Net profit for the year was HKD 4,334,422, compared to a loss of HKD 7,735,530 in the previous year, marking a substantial recovery[179] - Basic and diluted earnings per share for the year were HKD 0.825, compared to a loss per share of HKD 1.472 in the previous year[179] - The company experienced a total comprehensive income of HKD 3,751,302, recovering from a loss of HKD 8,790,133 in the previous year[179] Operational Efficiency - The relocation of the Shenzhen factory is expected to enhance overall production and operational efficiency by 15% to 20%[19] - The company has implemented cost-cutting measures to improve productivity and operational efficiency[20] - The company is exploring more business opportunities to enhance production efficiency and reduce costs, aiming to strengthen its competitive advantage in the market[27] Revenue Diversification - The company plans to diversify its revenue base by exploring higher value-added card services, such as machine-to-machine (M2M) smart card-related businesses[20] - The company aims to strengthen relationships with existing customers while expanding its customer base and overall market share[20] - The company generated 97% of its total revenue from its top five customers as of December 31, 2023, indicating a high dependency on a limited customer base[105] - The company aims to expand its customer base to mitigate risks associated with reliance on a few key clients[105] Investments and Future Plans - The investment in the television drama "Snow Leopard 2" amounts to approximately HKD 26,900,000, with a planned release in the second quarter of 2025[21] - The company plans to invest in new television productions, which is seen as a strategic step towards business development in the advertising, media, and entertainment sectors[22] - The company is optimistic about macroeconomic improvements and is preparing to obtain SAS certification for its new Shenzhen factory, expected to start in Q3 2024 and complete in Q4 2024[27] Financial Health - The company’s total assets as of December 31, 2023, were not specified in the provided content but are critical for assessing financial health[11] - As of December 31, 2023, the company had cash and bank balances of approximately HKD 7,200,000, an increase from approximately HKD 6,200,000 in 2022[47] - The company’s debt-to-equity ratio was 11.3%, an increase from 9.9% in 2022[53] - As of December 31, 2023, the company had no assets pledged as collateral, the same as in 2022[52] - The company’s total liabilities decreased to HKD 24,698,994 from HKD 27,390,762, a decline of approximately 9.3%[180] - The company’s equity attributable to owners increased to HKD 40,210,303 from HKD 36,457,923, reflecting a growth of about 10.5%[182] - The company’s net asset value reached HKD 40,439,820, up from HKD 36,688,518 in the previous year, reflecting a growth of approximately 7.6%[182] Governance and Compliance - The board of directors consists of six members, including three executive directors and three independent non-executive directors[67] - All directors attended 100% of the board meetings held during the year, with one annual general meeting attended by all except one director[70] - The company has adopted a set of guidelines for directors' securities trading, ensuring compliance with GEM listing rules[65] - The company has not engaged in any purchase, sale, or redemption of its own securities during the reporting period[57] - The audit committee held four meetings during the year ending December 31, 2023, with a 100% attendance rate from all members[81] - The company emphasizes the importance of continuous professional development, with all directors participating in relevant training courses to enhance their knowledge and skills[77] - The nomination committee reviewed and was satisfied with the current composition of the board, ensuring diversity in terms of gender, age, cultural background, and professional experience[84] - The independent non-executive directors have served on the board for over nine years and continue to demonstrate their independence and ability to provide constructive opinions[74] - The audit committee is responsible for reviewing the company's financial controls, internal controls, and risk management systems, ensuring compliance with applicable accounting standards[79] - All independent non-executive directors confirmed their independence through annual independence confirmation statements[74] - The nomination committee met once during the year, with full attendance from all members[85] - The company views board diversity as a key factor in achieving its strategic goals and sustainable development[83] - The board's independent non-executive directors play a crucial role in providing independent opinions and leading in potential conflict of interest situations[75] Shareholder Relations - The company is focused on maintaining strong relationships with its shareholders and investors through various communication channels[115] - The company has a clear policy for convening special shareholder meetings upon request from shareholders holding at least 10% of the paid-up capital[108] - The board is committed to providing high levels of disclosure and financial transparency through regular reporting and communication with shareholders[115] - The company has a structured approach to shareholder communication, including quarterly, interim, and annual reports[112] Dividend Policy - The company did not recommend any final dividend for the reporting period[17] - The company did not recommend a final dividend for the year ending December 31, 2023, consistent with no dividend in 2022[54] - The group reported no final dividend for the year ended December 31, 2023, consistent with the previous year[128] - The company has adopted a general dividend policy, considering factors such as financial performance and shareholder interests when declaring dividends[126] - As of December 31, 2023, the company had no distributable reserves[138] Assets and Liabilities - Total assets as of December 31, 2023, amounted to HKD 44,362,935, an increase from HKD 38,927,253 in 2022[180] - Cash and cash equivalents increased to HKD 7,224,481 from HKD 6,236,472, representing a rise of about 15.9%[186] - Trade and other receivables increased to HKD 18,257,977 from HKD 14,437,765, marking a growth of approximately 26.5%[180] - The company’s inventory decreased to HKD 1,036,738 from HKD 3,257,275, a reduction of about 68.2%[180] - Non-current assets totaled HKD 42,542,733, slightly up from HKD 42,386,503 in 2022[180] Business Operations - The major business of the group is the production and sale of smart card contracts[123] - The company operates primarily in the production and sale of smart cards, custom smart card application systems, financial and management consulting services, and trading of scrap metals[188] - The company has no management contracts related to significant parts of its business for the year ended December 31, 2023[134] Compliance and Reporting - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and comply with applicable disclosure requirements[190] - The company’s financial statements are presented in Hong Kong dollars (HKD) and are based on historical cost, except for investments in television programs which are measured at fair value[191] - The internal control system is designed to ensure compliance with laws and regulations and to provide reasonable assurance against material misstatements or losses[103] - The company has appointed an independent professional consultant to evaluate the effectiveness of its internal control system[102] - The board has reviewed and deemed the internal control and risk management systems to be effective and adequate[103]