Financial Performance - For the three months ended June 30, 2023, the group's revenue was approximately HKD 3,292,000, a decrease of about 18% compared to HKD 4,019,000 for the same period in 2022[8] - The profit attributable to the owners of the company for the same period was approximately HKD 506,000, down from HKD 622,000 in the previous year[8] - The gross profit for the quarter was HKD 2,055,000, slightly up from HKD 2,047,000 in the previous year[14] - The total comprehensive income for the quarter was HKD 506,000, compared to HKD 508,000 in the previous year[16] - The basic and diluted earnings per share for the quarter were HKD 0.05, down from HKD 0.07 in the same period last year[14] - Service revenue was HKD 955,000, down 13.4% from HKD 1,103,000 in the previous year[20] - Maintenance service revenue decreased to HKD 2,333,000, a decline of 15.8% from HKD 2,769,000 in 2022[20] - Basic earnings per share for the three months ended June 30, 2023, was HKD 0.01, down from HKD 0.01 in the same period last year, with a profit attributable to owners of approximately HKD 506,000[25] Administrative and Financial Management - Administrative expenses decreased to HKD 1,826,000 from HKD 2,094,000 year-on-year, reflecting cost control measures[14] - The company did not recommend the payment of an interim dividend for the quarter ended June 30, 2023, consistent with the previous year[8] - The board of directors did not recommend the payment of an interim dividend for the three months ended June 30, 2023, consistent with no dividend declared for the same period in 2022[24] - The company has no tax provision for Hong Kong profits tax for the current period, as there were no taxable profits or sufficient past tax losses to offset estimated taxable profits[23] - There were no share buybacks during the period, maintaining a consistent approach with zero shares repurchased in the same period last year[34] Corporate Governance - The company remains committed to maintaining statutory and regulatory standards, emphasizing transparency and accountability in corporate governance[38] - The average number of ordinary shares in issue during the period was 925,508,000, unchanged from the previous year[26] - The company has no new share option schemes implemented since the expiration of the previous scheme on August 7, 2021[33] - The company has adopted a code of conduct for securities trading by directors, which complies with GEM Listing Rules from June 30, 2023[41] - The board believes there is currently no urgent need to separate the roles of Chairman and CEO, as the current structure is deemed effective[39] - The company has not made any insurance arrangements for potential legal risks faced by directors, considering the likelihood of such risks to be very low[39] - The board will regularly review the effectiveness of the corporate governance structure and the necessity of insurance arrangements for directors[39] - All directors have complied with the established code of conduct and required standards for the period ending June 30, 2023[41] - The board consists of three executive directors and three independent non-executive directors as of August 4, 2023[42] Strategic Focus and Initiatives - The company maintains a cautious outlook due to the economic conditions in Hong Kong and plans to continue implementing stringent financial measures[12] - The company is focused on developing innovative technology products and solutions, particularly in smart city applications[10] - The company has welcomed three interns and one assistant engineer trainee as part of its community investment and talent development initiatives[12] - The company will continue to monitor and assess internal control systems to mitigate potential legal risks[39]

ANNUAL REPORT 年報 2022/23 Characteristics of GEM of The Stock Exchange of Hong Kong Limited (the "Exchange") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a high investment risk may be attached than other companies listed on the Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given that the companies listed on GEM are gener ...

Financial Performance - For the nine months ended December 31, 2022, the group's revenue was approximately HKD 11,818,000, a decrease of about 56% compared to HKD 26,898,000 for the same period in 2021[7] - The profit attributable to the owners of the company for the nine months ended December 31, 2022, was approximately HKD 3,386,000, down from HKD 5,611,000 in the same period of 2021[7] - Revenue for the nine months ended December 31, 2022, was HKD 11,818,000, a decrease of 56% compared to HKD 26,898,000 for the same period in 2021[21] - Gross profit for the nine months ended December 31, 2022, was HKD 6,380,000, down 42% from HKD 10,965,000 in the previous year[21] - Profit attributable to owners of the company for the nine months ended December 31, 2022, was HKD 3,386,000, a decline of 40% from HKD 5,611,000 in 2021[25] - Basic earnings per share for the nine months ended December 31, 2022, was HKD 0.37, compared to HKD 0.61 for the same period in 2021[25] - The company reported a total comprehensive income of HKD 3,283,000 for the nine months ended December 31, 2022, down from HKD 5,617,000 in 2021[17] - Administrative expenses for the nine months ended December 31, 2022, were HKD 6,467,000, a decrease of 9% from HKD 7,140,000 in the previous year[21] - Other income and net gains for the nine months ended December 31, 2022, increased to HKD 3,540,000 from HKD 1,886,000 in 2021[21] - The cost of services provided for the nine months ended December 31, 2022, was HKD 5,370,000, down from HKD 15,885,000 in the previous year[21] Dividend Policy - The company did not recommend the payment of an interim dividend for the nine months ended December 31, 2022, consistent with the previous year[7] - The company did not recommend any interim dividend for the nine months ended December 31, 2022, consistent with the previous year[24] Corporate Governance - The board of directors confirmed the accuracy and completeness of the report, ensuring no misleading or fraudulent elements were present[7] - The audit committee consists of two independent non-executive directors, with a minimum of four meetings held annually[36] - The company has complied with all provisions of the corporate governance code during the period ending December 31, 2022[38] - The board of directors is responsible for reviewing and monitoring compliance with legal and regulatory requirements[38] - The company has not established any insurance arrangements for potential legal risks faced by directors[39] - The company has adopted a code for securities trading by directors, in compliance with GEM Listing Rules[41] - The chairman and CEO roles are currently held by Mr. Liu Han Guang, with no immediate plans to separate these roles[39] - The company will continue to review its corporate governance practices to ensure compliance with the new code effective from January 1, 2022[38] Innovation and Development - The company’s subsidiary, RF Tech Limited, completed a project under the Innovation and Technology Support Programme, successfully developing the EMV100 Contactless Reader, which received certifications from EMVCo, Visa, Mastercard, and UnionPay[11] - ITE Engineering Limited's project on developing a mobile charging system for electric vehicles using proton exchange membrane fuel cell technology has reached completion, overcoming challenges posed by the COVID-19 pandemic[12] - The company has been actively supporting research activities at The Chinese University of Hong Kong, with a recent publication in the prestigious journal "Science" by Professor Chan's team[12] - The company aims to become a leading provider of innovative technology products and solutions, focusing on smart city applications and sustainable development[9] - The group has established a leadership position in the smart card and RFID systems market in Hong Kong, Macau, and mainland China[9] - The company is committed to developing innovative solutions to meet the demands of smart cities, contributing to public health and sustainability[9] Shareholding Structure - Rax-Comm holds 241,102,348 shares, representing 26.05% of the issued shares[30] - Mr. Wen Wei Hung owns 48,142,254 shares, accounting for 5.20% of the issued shares[30] - The company did not repurchase any shares during the nine months ending December 31, 2022[34]