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） 截至二零二二年六月三十日止六個月之 中期報告 香港聯合交易所有限公司（「聯交所」）GEM之特點。 GEM乃供投資風險較聯交所其他上市公司為高之中小型公司上市之市場。有意投資者 應了解投資於該等公司之潛在風險，亦應經過審慎周詳考慮後方可作出投資決定。 由於GEM上市之公司普遍為中小型公司，在GEM買賣之證券可能會較於主板買賣之 證券承受更大之市場波動風險，同時無法保證在GEM買賣之證券會有高流通量之市 場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示概不就因本報告全部或任何部份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。 本報告所載資料包括遵照聯交所GEM證券上市規則（「GEM上市規則」）規定提供有關 品創控股有限公司（「本公司」）之資料。本公司各董事（「董事」）對本報告所載資料共同 及個別承擔全部責任。各董事在作出一切合理查詢後確認，就彼等所深知及確信，本 報告所載資料在各重大方面均準確及完整，且並無誤導 ...

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） 截至二零二二年三月三十一日止三個月 第一季度報告 香港聯合交易所有限公司（「聯交所」）GEM之特點 GEM乃供投資風險較聯交所其他上市公司為高之中小型公司上市之市場。有意投資者 應了解投資於該等公司之潛在風險，亦應經過審慎周詳考慮後方可作出投資決定。 由於GEM上市之公司普遍為中小型公司，在GEM買賣之證券可能會較於主板買賣之 證券承受更大之市場波動風險，同時無法保證在GEM買賣之證券會有高流通量之市 場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示概不就因本報告全部或任何部份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。 本報告所載資料包括遵照聯交所GEM證券上市規則（「GEM上市規則」）規定提供有關 品創控股有限公司（「本公司」）之資料。本公司各董事（「董事」）對本報告所載資料共同 及個別承擔全部責任。各董事在作出一切合理查詢後確認，就彼等所深知及確信，本 報告所載資料在各重大方面均準確及完整，且並無誤 ...

Financial Performance - For the fiscal year ending December 31, 2021, the company reported a consolidated revenue of approximately HKD 72,755,000, a decrease of 4.4% from HKD 76,099,000 in 2020[19]. - The company recorded a loss attributable to owners of approximately HKD 5,763,000 for the year, compared to a profit of HKD 3,956,000 in the previous year[19]. - The sales of smart card business generated a profit of approximately HKD 1,400,000, down from HKD 7,900,000 in 2020, indicating a significant decline in profitability[24]. - The company reported revenue from SIM card production of approximately HKD 72,740,000 for the fiscal year ending December 31, 2021, a decrease of about HKD 3,360,000 or 4.4% compared to approximately HKD 76,100,000 in the same period of 2020[33]. - Gross profit decreased to approximately HKD 18,830,000, down about HKD 5,330,000 or 22.1% from approximately HKD 24,160,000 in the previous year[34]. - The company reported a net loss attributable to owners of approximately HKD 5,760,000 for the year, compared to a profit of approximately HKD 3,960,000 in 2020[45]. - Total revenue for the year ended December 31, 2021, was HKD 72,755,127, a decrease of 4.4% from HKD 76,098,619 in 2020[175]. - Gross profit for 2021 was HKD 18,828,076, down 22.1% from HKD 24,163,993 in the previous year[175]. - The company reported a total comprehensive income of HKD 4,684,065 for the year ended December 31, 2021, compared to a total comprehensive loss of HKD 4,916,203 in 2020, indicating a significant recovery[179]. Operational Challenges - The company faced challenges due to the COVID-19 pandemic, including supply chain disruptions and semiconductor shortages, which adversely affected the smart card contract production business[21]. - High-value auxiliary card service orders significantly decreased due to increased transportation costs, impacting the business's profitability[23]. - The overall economic recovery was hindered by various factors, including rising energy prices and inflationary pressures, affecting the company's performance[21]. - The company experienced a loss of HKD 5,762,933 for the year, compared to a profit of HKD 3,955,709 in 2020, reflecting a challenging operational environment[179]. Strategic Initiatives - The company focused on strengthening relationships with existing customers and expanding its customer base to enhance overall market share during the reporting period[23]. - The company plans to explore opportunities to offer higher value card services, such as machine-to-machine (M2M) smart card-related businesses in the coming year[23]. - The company plans to continue integrating its existing SIM card business to achieve higher production efficiency and cost savings[28]. - The company is focused on expanding its customer base to mitigate risks associated with reliance on a limited number of clients[96]. Corporate Governance - The board of directors consists of six members, including three executive directors and three independent non-executive directors[68]. - The company maintained compliance with the corporate governance code, except for the separation of the roles of chairman and CEO[64]. - The audit committee held four meetings to review the quarterly, interim, and annual performance for the year ending December 31, 2021, with attendance rates of 75% for Mr. Liang and 100% for Ms. Huang and Mr. Chan[78]. - All independent non-executive directors confirmed their independence through annual declarations as per GEM Listing Rules[74]. - The nomination committee reviewed the board's composition and confirmed satisfaction with the current structure, emphasizing diversity as a key factor for sustainable development[82][83]. - Continuous professional development is mandatory for all directors to enhance their knowledge and skills, with all directors participating in relevant training courses[76][77]. - The company emphasizes the importance of independent judgment from its independent non-executive directors, who have served for over nine years[74]. - The company secretary and compliance officer have been appointed to ensure adherence to governance standards and regulations[88][89]. Financial Position - As of December 31, 2021, the company had cash and bank balances of approximately HKD 3,700,000, down from approximately HKD 8,800,000 in 2020[48]. - Current assets were approximately HKD 36,300,000 and current liabilities were approximately HKD 34,600,000, resulting in a current ratio of 1.0, down from 1.2 in 2020[48]. - The company's total equity decreased to HKD 45,478,651 in 2021 from HKD 50,394,979 in 2020, a decline of 9.8%[178]. - The total liabilities increased to HKD 452,084,957 as of December 31, 2021, compared to HKD 446,322,024 at the end of 2020[179]. - Cash and cash equivalents dropped significantly to HKD 3,682,844 in 2021 from HKD 8,819,535 in 2020, a decrease of 58.3%[176]. - The basic and diluted loss per share for 2021 was HKD 1.097, compared to earnings of HKD 0.753 per share in 2020[175]. Investments and Future Plans - The production of the targeted TV drama "Snow Leopard 2" is expected to be completed in 2022, with a planned release in the second quarter of 2023[26]. - The company aims to diversify its business in the advertising, media, and entertainment sectors, seeking additional similar investments beyond "Snow Leopard 2"[27]. - There were no major investments or capital asset plans disclosed for the future as of December 31, 2021[53]. - The company has made appropriate insurance arrangements for potential legal claims against its directors and senior management[149]. Audit and Compliance - The independent auditor for the financial statements for the years ended December 31, 2020, and December 31, 2021, was appointed as Deloitte Touche Tohmatsu[152]. - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards and fairly reflect the group's financial position as of December 31, 2021[157]. - The auditor's report highlighted key audit matters, including the evaluation of the external valuers' objectivity and the methods used for fair value estimation[165]. - The company’s audit committee assists the board in overseeing the financial reporting process[168]. - The board has reviewed the effectiveness of the internal control and risk management systems, covering financial, operational, compliance, and risk management functions[93].

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） 截至二零二一年九月三十日止九個月 第三季度報告 香港聯合交易所有限公司（「聯交所」）GEM之特點 GEM乃供投資風險較聯交所其他上市公司為高之中小型公司上市之市場。有意投資者 應了解投資於該等公司之潛在風險，亦應經過審慎周詳考慮後方可作出投資決定。 未經審核綜合損益及其他全面收益表 截至二零二一年九月三十日止三個月及九個月 | | | 未經審核 | | 未經審核 | | | --- | --- | --- | --- | --- | --- | | | | 截至九月三十日止三個月 | | 截至九月三十日止九個月 | | | | | 二零二一年 | 二零二零年 | 二零二一年 | 二零二零年 | | | 附註 | 港元 | 港元 | 港元 | 港元 | | 收入 | 2 | 17,497,896 | 18,672,540 | 54,690,900 | 56,263,862 | | 銷售成本 | | (13,566,482) | (13,391,886) | (40,832,809) ...

Financial Performance - For the six months ended June 30, 2021, the group recorded unaudited revenue of approximately HKD 37,193,000, a decrease of 1.1% compared to the same period in 2020[5] - The unaudited profit attributable to owners of the company for the six months ended June 30, 2021, was approximately HKD 688,000[5] - Gross profit for the six months ended June 30, 2021, was HKD 9,926,677, down from HKD 13,050,106 in the same period of 2020, representing a decrease of approximately 23.1%[6] - The total comprehensive income for the six months ended June 30, 2021, was HKD 1,397,234, compared to HKD 2,164,919 for the same period in 2020, reflecting a decline of approximately 35.4%[7] - The company reported a basic and diluted earnings per share of HKD 0.131 for the six months ended June 30, 2021, down from HKD 0.390 in the same period of 2020[7] - The company achieved total revenue of HKD 37,193,004 for the six months ended June 30, 2021, with a profit before tax of HKD 688,109[20] - The net loss for the six months ended June 30, 2021, was HKD 687,280, compared to a net loss of HKD 137,622 for the same period in 2020[28] Dividends and Equity - The board of directors did not recommend the payment of any interim dividend for the six months ended June 30, 2021[5] - The company's equity attributable to owners was HKD 51,561,493 as of June 30, 2021, compared to HKD 50,164,134 as of December 31, 2020, indicating an increase of approximately 2.8%[10] - The company’s total equity increased to HKD 51,792,213 as of June 30, 2021, from HKD 47,876,011 at the beginning of the period[12] - The company did not declare any interim dividend for the six months ended June 30, 2021, consistent with the previous year[35] Assets and Liabilities - Non-current assets as of June 30, 2021, amounted to HKD 52,360,136, an increase from HKD 49,560,219 as of December 31, 2020[9] - Current assets decreased to HKD 41,033,641 as of June 30, 2021, from HKD 44,401,769 as of December 31, 2020[9] - The total assets as of June 30, 2021, amounted to HKD 93,393,777, compared to HKD 93,961,988 as of December 31, 2020[24] - The total liabilities as of June 30, 2021, were HKD 41,601,564, compared to HKD 43,567,009 as of December 31, 2020, indicating a reduction in liabilities[24] - The net current asset value as of June 30, 2021, was HKD 5,961,354, down from HKD 8,358,255 as of December 31, 2020[10] Cash Flow - The company reported a net cash inflow from operating activities of HKD 744,653 for the six months ended June 30, 2021, compared to a net outflow of HKD 2,794,234 in the same period of 2020[14] - The company’s cash and cash equivalents at the end of the period were HKD 8,299,522, a decrease of HKD 615,480 from the beginning balance of HKD 8,819,535[14] - The financing activities resulted in a net cash outflow of HKD 2,099,194 for the period[14] - Cash and bank balances as of June 30, 2021, were approximately HKD 8,300,000, down from HKD 8,800,000 at the end of 2020[66] Operational Highlights - The sales of smart cards generated revenue of HKD 37,178,444, contributing significantly to the overall revenue[20] - The sales of smart cards for the six months ended June 30, 2021, were HKD 37,178,444, compared to HKD 37,590,722 in 2020, reflecting a decrease of 1.1%[25] - The company reported a loss of HKD 1,547,580 from the sales and trading of scrap metals[20] - Revenue from SIM card production for the reporting period was approximately HKD 37,200,000, a slight decline of about HKD 400,000 or 1.1% compared to approximately HKD 37,600,000 in the same period of 2020[53] Expenses - The company’s financial expenses amounted to HKD 198,996, while net exchange losses were HKD 687,280[20] - Financial expenses for the six months ended June 30, 2021, were HKD 198,996, a decrease from HKD 206,565 in 2020[29] - Administrative expenses rose to approximately HKD 10,900,000, an increase of HKD 1,200,000 or 12.4% compared to the previous year[59] - Employee costs, including director remuneration, were approximately HKD 12,400,000, compared to HKD 11,000,000 for the same period last year[67] Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial results for the three and six months ended June 30, 2021[83] - The company has complied with the GEM Listing Rules regarding corporate governance, except for the separation of the roles of Chairman and CEO[84] - The company has adopted a code of conduct for directors' securities transactions, which complies with GEM Listing Rules[86] - As of June 30, 2021, there were no interests held by directors or management shareholders in any business that competes directly or indirectly with the company[87] Shareholder Information - As of June 30, 2021, major shareholders include Golden Dice Co., Ltd. with 12.02% (63,142,512 shares) and Best Heaven Limited with 6.01% (31,586,500 shares)[80] - The total unexercised stock options as of June 30, 2021, amounted to 37,629,250 shares, with an exercise price of HKD 0.20, and an average remaining term of approximately 6.51 years[82]

Financial Performance - For the three months ended March 31, 2021, the unaudited revenue was approximately HKD 17,453,000, an increase of 109.4% compared to approximately HKD 8,335,000 for the same period in 2020[4] - The group recorded an unaudited loss attributable to owners of the company of approximately HKD 2,627,000 for the three months ended March 31, 2021[5] - The gross profit for the three months ended March 31, 2021, was HKD 4,583,578, compared to HKD 1,556,455 for the same period in 2020[6] - The total comprehensive loss for the period was HKD 1,996,917, compared to HKD 3,997,693 for the same period in 2020[7] - Basic and diluted loss per share for the period was HKD 0.500, compared to HKD 0.777 for the same period in 2020[7] - Revenue from SIM card production increased to approximately HKD 17,400,000, more than doubling from approximately HKD 8,300,000 in the same period last year, primarily due to temporary factory closures caused by COVID-19[19] - Gross profit rose to approximately HKD 4,580,000, an increase of about HKD 3,020,000 or 193.6% from approximately HKD 1,560,000 in the same period last year[20] - The company reported a loss attributable to shareholders of approximately HKD 2,630,000, compared to a loss of approximately HKD 4,080,000 in the same period last year[26] Administrative Expenses - The group incurred administrative expenses of HKD 5,607,256 for the three months ended March 31, 2021, compared to HKD 4,871,768 for the same period in 2020[6] - Administrative expenses increased by approximately HKD 740,000 or 15.2% to about HKD 5,610,000, mainly due to increases in hospitality, employee costs, and miscellaneous expenses[24] Dividends and Tax - The board of directors did not recommend the payment of any interim dividend for the three months ended March 31, 2021[5] - The company did not declare any interim dividends for the three months ended March 31, 2021, consistent with the previous year[16] - The company did not incur any income tax expenses during the reporting period, similar to the same period last year[26] Equity and Financial Position - The total equity attributable to owners of the company as of March 31, 2021, was HKD 48,398,062[9] - As of March 31, 2021, the company had cash and bank balances of approximately HKD 3,900,000, down from approximately HKD 8,800,000 as of December 31, 2020[27] - The current ratio remained stable at 1.2 as of March 31, 2021, consistent with the ratio as of December 31, 2020[27] - The debt-to-capital ratio was 11.1% as of March 31, 2021, slightly down from 11.5% as of December 31, 2020[28] Share Options and Ownership - As of March 31, 2021, the company’s directors and key executives held a total of 14,850,000 share options, representing approximately 0.20 HKD per share[35] - Major shareholders include Golden Dice Co., Ltd. with 63,142,512 shares (12.02%) and Best Heaven Limited with 31,586,500 shares (6.01%)[33] - The company’s key executive, Wu Yujun, holds 100,000 shares and has a total beneficial interest of 4,500,000 shares, representing 0.88% of the issued share capital[29] - The company’s independent non-executive directors each hold 450,000 share options, representing 0.09% of the issued share capital[31] - The total number of share options available for exercise as of March 31, 2021, is 37,629,250[35] - The major shareholder, Cai Qiyuan, is deemed to have a beneficial interest in 94,729,012 shares, representing 18.03% of the company[33] - The company’s share options plan was approved on January 8, 2008, and all options granted are fully vested[35] - As of March 31, 2021, the company has no other known individuals or entities holding significant interests in its shares[34] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial controls and risk management[36] - The audit committee has reviewed and approved the unaudited financial results for the three months ending March 31, 2021[36] - The company has adhered to the GEM Listing Rules Appendix 15 corporate governance code, except for the separation of the roles of Chairman and CEO as stipulated in code A2.1[37] - The current structure allows the roles of Chairman and CEO to be held by the same individual, as the company believes it does not compromise the balance of power between the board and management[37] - The company has established an internal control system to ensure oversight and checks and balances[37] - The company has adopted a code of conduct for directors' securities transactions, which complies with the GEM Listing Rules[38] Other Information - The foreign exchange difference arising from the translation of financial statements of overseas operations was HKD 629,759 for the period[7] - No securities were purchased, sold, or redeemed by the company or its subsidiaries during the three months ended March 31, 2021[40] - As of March 31, 2021, no directors or management shareholders had any interests in businesses that directly or indirectly compete with the company[39]

(於開曼群島註冊成立之有限公司) (股份代號: 8066 ) 年度報告 2020 更有遠見 奮力向前 香港聯合交易所有限公司 （「聯交所」）GEM之特點 GEM乃供投資風險較聯交所其他上市公司為高之中小型公司上市之市場。有意投資者應了解投資於該等公司 之潛在風險，亦應經過審慎周詳考慮後方可作出投資決定。 由於GEM上市之公司普遍為中小型公司，在GEM買賣之證券可能會較於主板買賣之證券承受更大之市場波動 風險，同時無法保證在GEM買賣之證券會有高流通量之市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整性亦不發表任何聲明，並 明確表示概不就因本報告全部或任何部份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。 本報告所載資料包括遵照聯交所GEM證券上市規則（「GEM上市規則」）規定提供有關品創控股有限公司（「本公 司」）之資料。本公司各董事（「董事」）對本報告所載資料共同及個別承擔全部責任。各董事在作出一切合理查 詢後確認，就彼等所深知及確信，本報告所載資料在各重大方面均準確及完整，且並無誤導或欺詐成份；及 本報告亦無遺漏其他事項致使其中或本報告所載任何陳述有所誤導。 目錄 ...

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） 截至二零二零年九月三十日止九個月之 第三季度報告 香港聯合交易所有限公司（「聯交所」）GEM之特點 GEM乃供投資風險較聯交所其他上市公司為高之中小型公司上市之市場。有意投資者 應了解投資於該等公司之潛在風險，亦應經過審慎周詳考慮後方可作出投資決定。 由於GEM上市之公司普遍為中小型公司，在GEM買賣之證券可能會較於主板買賣之 證券承受更大之市場波動風險，同時無法保證在GEM買賣之證券會有高流通量之市 場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示概不就因本報告全部或任何部份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。 本報告所載資料包括遵照聯交所GEM證券上市規則（「GEM上市規則」）規定提供有關 品創控股有限公司（「本公司」）之資料。本公司各董事（「董事」）對本報告所載資料共同 及個別承擔全部責任。各董事在作出一切合理查詢後確認，就彼等所深知及確信，本 報告所載資料在各重大方面均準確及完整，且並無誤 ...

Financial Performance - For the six months ended June 30, 2020, the group recorded unaudited revenue of approximately HKD 37,591,000, an increase of 42.8% compared to the same period in 2019[4] - The unaudited profit attributable to owners of the company for the six months ended June 30, 2020, was approximately HKD 2,051,000[4] - The gross profit for the six months ended June 30, 2020, was HKD 13,050,106, compared to HKD 7,440,711 for the same period in 2019, reflecting a significant increase[6] - The total comprehensive income for the six months ended June 30, 2020, was HKD 2,164,919, compared to a loss of HKD 3,918,889 for the same period in 2019[7] - The basic earnings per share for the six months ended June 30, 2020, was HKD 0.390, compared to a loss per share of HKD 0.164 for the same period in 2019[7] - The reported revenue for the six months ended June 30, 2020, was HKD 37,591,322, an increase from HKD 26,315,898 for the same period in 2019, representing a growth of approximately 42.9%[20] - The profit before tax for the ongoing business was HKD 2,030,754 for the six months ended June 30, 2020, compared to a loss of HKD 221,881 for the same period in 2019[20] - The company reported a total comprehensive income of HKD 2,165,044 for the six months ended June 30, 2020, compared to a total comprehensive loss of HKD 3,918,889 for the same period in 2019[12] - The profit before tax from continuing operations for the six months ended June 30, 2020, was HKD 2,050,879, compared to a loss of HKD 626,121 for the same period in 2019, representing a significant turnaround[39] Assets and Liabilities - Non-current assets as of June 30, 2020, amounted to HKD 14,953,320, slightly down from HKD 14,978,949 as of December 31, 2019[8] - Current assets increased to HKD 80,474,696 as of June 30, 2020, from HKD 71,307,267 as of December 31, 2019[8] - Current liabilities increased to HKD 41,781,304 as of June 30, 2020, compared to HKD 33,651,104 as of December 31, 2019[8] - The total assets as of June 30, 2020, amounted to HKD 95,428,016, up from HKD 86,286,216 as of December 31, 2019, indicating an increase of approximately 10.4%[23][24] - The total liabilities as of June 30, 2020, were HKD 47,552,005, compared to HKD 40,575,124 as of December 31, 2019, reflecting an increase of about 17.4%[23][24] - As of June 30, 2020, the company's net assets increased to HKD 47,876,011 from HKD 45,711,092 as of December 31, 2019, representing a growth of approximately 4.75%[9] - The total equity attributable to the owners of the company rose to HKD 47,645,113, up from HKD 45,480,069, indicating an increase of about 4.77%[12] Cash Flow - The net cash used in operating activities for the six months ended June 30, 2020, was HKD (2,794,234), an improvement compared to HKD (7,427,510) for the same period in 2019[14] - The net cash used in investing activities was HKD (2,252,063) for the first half of 2020, contrasting with a net cash inflow of HKD 23,242,940 in the same period of 2019[14] - The company's cash and cash equivalents decreased to HKD 2,678,387 at the end of the period from HKD 9,944,422 at the beginning of the period, reflecting a decline of approximately 73.16%[14] - The cash and bank balances as of June 30, 2020, were approximately HKD 2,700,000, down from HKD 10,300,000 as of December 31, 2019[63] - The company reported a net cash outflow from operating activities of HKD 7,213 for the six months ended June 30, 2019, indicating challenges in cash generation during that period[37] Business Operations - The company has expanded its business segments to include media and entertainment, following new investments in television programming[18] - The company has terminated its operations in the petrochemical products sector, focusing on five main business segments[18] - Revenue from SIM card production increased to approximately HKD 37,600,000, up 43.0% from HKD 26,300,000 in the same period last year[50] - Cost of sales for SIM card production rose to approximately HKD 24,500,000, an increase of 30.3% from HKD 18,800,000 in the previous year[51] - Gross profit increased to approximately HKD 13,100,000, up 77.0% from HKD 7,400,000 in the same period last year[51] - The company reported a net miscellaneous income of HKD 590,545 for the six months ended June 30, 2020, compared to HKD 17,475 for the same period in 2019, indicating a substantial increase[26] Shareholder Information - As of June 30, 2020, major shareholders included Golden Dice Co., Ltd. with 62,332,512 shares (11.87%) and Best Heaven Limited with 31,586,500 shares (6.01%) [77] - The total number of share options granted under the new share option plan was 37,629,250, with an exercise price of HKD 0.20[78] Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited financial results for the three and six months ended June 30, 2020[79] - The company has adhered to the GEM Listing Rules Appendix 15 corporate governance code, except for the separation of the roles of Chairman and CEO as stipulated in code A2.1[80] - The current structure of having the same individual serve as both Chairman and CEO is deemed not to undermine the balance of power and authority between the board and management[81] - The company has adopted a set of guidelines for directors' securities transactions, which comply with GEM Listing Rules 5.48 to 5.67[82] - As of June 30, 2020, no directors or management shareholders have any interests in businesses that directly or indirectly compete with the company[83] - During the six months ended June 30, 2020, the company or any of its subsidiaries did not purchase, sell, or redeem any of the company's securities[84] Risks and Future Outlook - The company anticipates that the adoption of new and revised Hong Kong Financial Reporting Standards will not have a significant impact on its financial results[16] - The company is exposed to currency risk primarily from overseas sales and purchases, with significant exposure to RMB, EUR, and USD[72] - There were no major events after the reporting period[71] - The estimated applicable income tax rate for the group's operations in China remained at 25% for both the six months ended June 30, 2020, and 2019[32] Employment and Workforce - The company employed 175 employees as of June 30, 2020, an increase from 153 employees as of December 31, 2019[64] - The company did not recommend the payment of any interim dividend for the six months ended June 30, 2020[4] - The company did not declare any interim dividend for the six months ended June 30, 2020, consistent with the same period in 2019[38] Miscellaneous - The company's lease liabilities decreased to HKD 5,765,994 from HKD 6,919,313, a reduction of approximately 16.63%[9] - Trade receivables, net, increased to HKD 30,543,056 as of June 30, 2020, from HKD 13,812,809 as of December 31, 2019, showing a growth of 121%[44] - The inventory balance as of June 30, 2020, was HKD 2,729,741, compared to HKD 2,243,733 as of December 31, 2019, indicating a 22% increase[43] - Financial expenses for the six months ended June 30, 2020, totaled HKD 206,565, a decrease from HKD 344,422 for the same period in 2019, representing a reduction of about 40%[28] - The net exchange loss for the six months ended June 30, 2020, was HKD 137,622, compared to a gain of HKD 687,274 for the same period in 2019[27] - The loss from discontinued operations for the six months ended June 30, 2019, was HKD 313,149, with a loss per share of HKD 0.045[41]

Financial Performance - For the three months ended March 31, 2020, the unaudited revenue from continuing operations was approximately HKD 8,335,000, a decrease of 19.2% compared to approximately HKD 10,312,000 for the same period in 2019[5] - The Group recorded an unaudited loss attributable to owners of the company of approximately HKD 4,083,000 for the three months ended March 31, 2020[5] - The gross profit for the three months ended March 31, 2020, was HKD 1,556,455, down from HKD 3,089,969 in the same period of 2019, indicating a significant decline in profitability[6] - The total comprehensive loss for the period was HKD 3,997,693, compared to a loss of HKD 1,593,221 for the same period in 2019[8] - The basic loss per share for continuing operations was HKD 0.777, compared to HKD 0.632 for the same period in 2019[8] - Total revenue for the three months ended March 31, 2020, was HKD 8,335,201, compared to HKD 10,311,945 in 2019[13] - The group reported a loss attributable to owners of approximately HKD 4,080,000 for the period, compared to a loss of about HKD 3,320,000 in the same period of 2019[38] Revenue Breakdown - The group's revenue from the sale of smart cards for the three months ended March 31, 2020, was HKD 8,334,601, a decrease of approximately 19.4% from HKD 10,270,845 in the same period of 2019[13] - Revenue from the sale of smart card application systems was HKD 600, down from HKD 41,100 in the previous year[13] - Revenue from SIM card production was approximately HKD 8,300,000, a decrease of about HKD 2,000,000 or 19.4% compared to approximately HKD 10,300,000 in the same period of 2019[29] Expenses and Cost Management - The administrative expenses decreased to HKD 4,871,768 from HKD 5,630,534, reflecting cost control measures[6] - The financial expenses decreased to HKD 107,309 from HKD 218,337, indicating improved financial management[6] - Sales cost for SIM card production was approximately HKD 6,800,000, a decrease of about HKD 400,000 or 5.6% compared to the same period in 2019[30] - Gross profit decreased by approximately HKD 1,500,000 or 48.4% to about HKD 1,600,000 from approximately HKD 3,100,000 in the same period of 2019[30] - Financial expenses were approximately HKD 110,000, a decrease from about HKD 220,000 in the same period of 2019, mainly due to no interest incurred during the quarter[35] Other Income and Gains - Other income increased to HKD 20,018 from HKD 12,819 in the previous year, showing a positive trend in this area[6] - Bank interest income increased to HKD 1,763 from HKD 391 year-on-year[15] - Other income was approximately HKD 20,000, compared to about HKD 10,000 in the same period of 2019[31] - The exchange gain from the translation of foreign operations was HKD 85,800, down from HKD 305,365 in the previous year, reflecting currency fluctuations[9] - The group reported a net foreign exchange loss of HKD (134,700) compared to a gain of HKD 406,252 in the previous year[16] Dividends and Shareholder Information - The Group did not recommend any interim dividend for the three months ended March 31, 2020[5] - The group does not recommend any interim dividend for the three months ended March 31, 2020, consistent with the previous year[24] Financial Position - As of March 31, 2020, the group had cash and bank balances of approximately HKD 7,200,000, down from about HKD 10,300,000 as of December 31, 2019[39] - Current assets were approximately HKD 62,800,000 and current liabilities were about HKD 28,800,000, resulting in a current ratio of 2.2[39] - The debt-to-capital ratio was 11.7% as of March 31, 2020, compared to 13.4% as of December 31, 2019[40] Corporate Governance - The audit committee, consisting of three independent non-executive directors, oversees the financial reporting and internal control systems of the group[48] - The company has complied with the GEM listing rules regarding corporate governance, except for the separation of the roles of Chairman and CEO[50] - The company has established internal control systems to ensure oversight and balance of power within the management[51] - The company confirmed that all directors adhered to the established code of conduct regarding securities trading during the reporting period[52] - There are no interests held by directors or management shareholders that could directly or indirectly compete with the company's business as of March 31, 2020[53] - The company’s performance for the three months ending March 31, 2020, was reviewed by the audit committee[49] Management and Leadership - The Chairman of the board is Wu Yujun, who has also served as CEO since March 23, 2009[55] - The company approved a new share option plan on January 8, 2008, with all options granted being fully vested as of the grant date[46] - As of March 31, 2020, the remaining term for the share options is approximately 7.76 years[47] Operational Updates - The Shenzhen factory was temporarily closed due to the COVID-19 outbreak but has fully resumed production in April 2020[29] - No securities were purchased, sold, or redeemed by the company or its subsidiaries during the three months ending March 31, 2020[54] - Other losses amounted to approximately HKD 130,000, primarily due to foreign exchange losses[32] - The total income tax expense for the three months ended March 31, 2020, was HKD (20,000), compared to HKD 272,000 in the same period of 2019[17]