GET HOLDINGS LIMITED 智 易 控 股 有 限 公 司* (Incorporated in the Cayman Islands and continued in Bermuda with limited liability) ( 於開曼群島註冊成立及於百慕達存續之有限公司 ) Stock code 股份代號: 8100 e 0 Annual Report 2020 年報 STANDING OF O ● 0 0 0 *For identification purposes only 僅供識別 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies list ...

Financial Performance - Revenue for the three months ended September 30, 2020, was HK$23,667,000, a decrease of 70.5% compared to HK$79,968,000 in the same period of 2019[12] - Gross profit for the three months ended September 30, 2020, was HK$14,851,000, down 16.4% from HK$17,759,000 in the same period of 2019[12] - Loss for the period was HK$26,640,000, compared to a loss of HK$3,205,000 in the same period of 2019, representing an increase in loss of 831.5%[12] - Loss per share for the three months ended September 30, 2020, was HK$6.20, compared to HK$0.96 in the same period of 2019[15] - For the nine months ended September 30, 2020, revenue was HK$200,853,000, an increase of 20.4% from HK$166,804,000 in the same period of 2019[12] - The total comprehensive loss attributable to owners of the company for the nine months ended September 30, 2020, was HK$36,884,000, compared to HK$7,983,000 in the same period of 2019[15] - For the nine months ended September 30, 2020, the total comprehensive loss was HK$32,638,000, significantly higher than the loss of HK$10,128,000 for the same period in 2019, indicating an increase of approximately 222%[18] - The accumulated losses for the nine months ended September 30, 2020, reached HK$36,884,000, compared to HK$7,983,000 for the same period in 2019, reflecting an increase of approximately 362%[20] Expenses and Losses - The net impairment loss on trade and other receivables for the three months ended September 30, 2020, was HK$24,038,000, significantly higher than HK$2,328,000 in the same period of 2019[12] - Selling and administrative expenses for the three months ended September 30, 2020, totaled HK$16,419,000, a decrease from HK$18,610,000 in the same period of 2019[12] - The company reported a loss before tax of HK$26,037,000 for the three months ended September 30, 2020, compared to a loss of HK$2,368,000 in the same period of 2019[12] - The company experienced an exchange reserve loss of HK$5,128,000 for the nine months ended September 30, 2020, compared to a loss of HK$510,000 in the same period of 2019, indicating an increase of approximately 906%[20] - The company recorded a loss on disposal of financial assets at fair value through profit or loss of HK$3,942,000 for the nine months ended September 30, 2020[37] - The Group reported a loss from operations of HK$29,558,000 and a loss for the period of HK$32,214,000[62] Revenue Breakdown - For the nine months ended 30 September 2020, total revenue was HK$200,853,000, with segment revenues from Software Business at HK$58,645,000, Corporate Management Solutions and I.T. Contract Services Business at HK$21,198,000, and B2C Online Sales Platform and B2B Product Trading Business at HK$121,012,000[62] - Revenue from sales of computer and mobile phone software for the three months ended September 30, 2020, was HK$16,681,000, a decrease of 4.7% from HK$17,497,000 in 2019[35] - E-commerce revenue for the nine months ended September 30, 2020, was HK$121,012,000, a significant increase of 53.1% compared to HK$78,874,000 in 2019[35] - Revenue from the Corporate Management Solutions and I.T. Contract Services segment was approximately HK$21,196,000, a decrease of approximately 40.8% compared to HK$35,829,000 in 2019[122] - Revenue from the B2C Online Sales Platform and B2B Product Trading Business was approximately HK$121,012,000, an increase of approximately 53.4% compared to HK$78,874,000 in 2019[129] Strategic Initiatives and Future Outlook - The company has not provided specific guidance for future performance or new product developments in the report[12] - The Group plans to launch an upgraded version of its flagship product, Advanced SystemCare, in the fourth quarter of 2020[113] - A new version of Advanced SystemCare Ultimate 14 is also expected to be released in the fourth quarter of 2020 to enhance computer optimization and combat cybersecurity threats[113] - The Group aims to improve the financial performance of the Corporate Management Solutions and I.T. Contract Services segment by expanding its customer base and enhancing efficiency[127] - The Group is committed to diversifying its business portfolio and increasing market penetration through the B2B Product Trading business[136] - The Group plans to continue exploring new technological applications and enhancing its software products while expanding distribution channels in emerging markets[119] Market and Operational Insights - The geographical breakdown of revenue shows that Hong Kong contributed HK$116,770,000, while the United States contributed HK$22,648,000 for the nine months ended September 30, 2020[86] - The Group's B2C online sales platform and B2B product trading business segment contributed approximately 41.9% of total revenue for the period, down from 44.0% in the same period of 2019[88] - The Group is closely monitoring the financial market of Hong Kong and the performance of the Securities Investment Business amid geopolitical tensions and the COVID-19 pandemic[146] - The Group has registered seller accounts on several foreign trade e-commerce platforms to enhance its B2C Online Sales Platform operations[137] - The Group's strategy includes leveraging both online and offline sales channels to improve customer lifestyles[141] Research and Development - The Group's R&D team focuses on network security and product innovation to enhance customer satisfaction and combat malware threats[111] - The Group's capital commitments for intangible asset development costs were approximately HK$9,030,000 as of September 30, 2020[105] Impairment and Financial Assets - Impairment loss recognized during the period was HK$11,300,000, increasing the total accumulated impairment losses to HK$712,984,000 as of 30 September 2020[91] - The Securities Investment Business segment recorded a loss of approximately HK$12,765,000, primarily due to a net fair value loss of approximately HK$8,729,000 on financial assets at FVTPL[143] - As of September 30, 2020, the fair value of FVTPL Financial Assets was approximately HK$12,660,000, down from approximately HK$32,536,000 as of December 31, 2019[145]

GET HOLDINGS LIMITED 控 有 限 公 * (Incorporated in the Cayman Islands and continued in Bermuda with limited liability) (於開曼群島註冊成立及於百慕達存續之有限公司) Stock code股份代號: 8100 Interim Report 中期報告 *For identification purposes only 値供識別 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective ...

Financial Performance - Revenue for the three months ended March 31, 2020, was HK$133,865,000, a significant increase of 332% compared to HK$30,948,000 in the same period of 2019[12] - Gross profit for the period was HK$20,783,000, representing a gross margin of approximately 15.5%[12] - Loss for the period amounted to HK$4,466,000, compared to a loss of HK$1,408,000 in the same period of 2019, indicating a deterioration in performance[12] - Basic and diluted loss per share was HK$1.46, compared to HK$0.63 in the previous year[12] - Total comprehensive income for the period was a loss of HK$4,296,000, compared to a loss of HK$5,024,000 in the previous year[15] - The company reported a net reversal of impairment loss on trade and other receivables of HK$5,217,000[12] - Selling and administrative expenses for the period were HK$18,783,000, up from HK$17,054,000 in the same period of 2019[12] - The company reported a net loss of HK$5,217,000 for the three months ended March 31, 2020, compared to a net gain of HK$458,000 in the same period of 2019[40] - For the three months ended 31 March 2020, the loss attributable to owners of the Company was HK$6,500,000 compared to a loss of HK$2,786,000 for the same period in 2019, representing an increase in loss of approximately 133%[51] - The basic loss per share for the three months ended 31 March 2020 was HK(1.46) compared to HK(0.63) for the same period in 2019, indicating a deterioration in performance[51] Revenue Breakdown - E-commerce revenue, which includes the operation of a business-to-customer online sales platform, accounted for HK$104,564,000, with no revenue reported in the previous year[38] - Sales of computer and mobile phone software and toolbar advertisement generated HK$22,221,000, up from HK$18,152,000, reflecting a growth of 11.4%[38] - The provision of corporate management solutions and IT contract services generated HK$7,080,000, down from HK$12,796,000, indicating a decline of 44.3%[38] - Total revenue for the three months ended 31 March 2020 was HK$133,865,000, with segment revenues from Software Business at HK$22,221,000, Corporate Management Solutions and I.T. Contract Services Business at HK$7,080,000, and B2C Online Sales Platform and B2B Product Trading Business at HK$104,564,000[63] - The Group's revenue from external customers for the Software Business was HK$22,221,000, while the B2C Online Sales Platform and B2B Product Trading Business generated HK$104,564,000[63] - Revenue from the Software Business reached approximately HK$22,221,000, up 22.4% from HK$18,152,000 in the corresponding period of 2019[93] - Revenue from the Corporate Management Solutions and I.T. Contract Services business segment was approximately HK$7,080,000, a decrease of approximately 44.7% compared to HK$12,796,000 in 2019[103] - Revenue from the B2C Online Sales Platform and B2B Product Trading business segment was approximately HK$104,564,000, with a segment profit of approximately HK$263,000[111] Operational Insights - The company is engaged in research, development, and distribution of software, online sales platforms, and IT contract services[27] - The Group managed its businesses through four reportable segments, increasing from three in 2019, indicating a strategic expansion in operations[55] - The Group aims to enhance customer living standards by offering quality products through online and offline sales channels, focusing on business diversification[121] - The Group aims to expand distribution channels in emerging markets, particularly in the Asia-Pacific region[99] - The Group plans to enhance its software products and explore new technological applications[100] - The Group is considering the possibility of scaling down or disposing of parts of the Corporate Management Solutions and I.T. Contract Services business segment due to challenging market conditions[108] - The Group is committed to controlling costs and increasing product variety in the B2B Product Trading business[115] - The Group's B2C Online Sales Platform and B2B Product Trading Business generated over 86% of revenue from electronic lifestyle products, primarily electronic devices[122] Financial Position - As of March 31, 2020, the Group had cash and cash equivalents and pledged bank deposits of approximately HK$78,223,000, a decrease from approximately HK$81,350,000 as of December 31, 2019[160] - The Group's total assets amounted to approximately HK$361,985,000 as of March 31, 2020, down from approximately HK$370,896,000 as of December 31, 2019[162] - The gearing ratio of the Group was approximately 16.5% as of March 31, 2020, compared to approximately 17.3% as of December 31, 2019[162] - The Group's trade and other receivables were approximately HK$84,523,000, primarily arising from B2C online sales and B2B product trading activities[178] Legal and Compliance - The Group is currently involved in three civil legal proceedings related to acquisitions and management disputes[183] - The Group conditionally agreed to acquire 51% of AP Group Holdings for HK$20,400,000, payable through the issuance of 40,800,000 new ordinary shares at HK$0.50 per share[189] - Legal proceedings were initiated against the Vendor and Guarantor for the Adjustment Amount, interests, costs, and further reliefs[194] - An amended writ of summons was filed on September 26, 2019, claiming damages of HK$20,400,000 against former directors for failing to prepare audited financial statements[197] - The Board considered that the Vendor and Guarantor potentially breached their contractual obligations by failing to repay the Adjustment Amount[196] Market Conditions - The ongoing US-China trade dispute and COVID-19 outbreak are expected to create instabilities in the Hong Kong financial market, prompting the Group to explore potential investment opportunities[128] - The business environment for the B2C Online Sales Platform and B2B Product Trading Business became more challenging due to the COVID-19 pandemic, affecting overall operations[119]

Financial Performance - The Group recorded a loss of approximately HK$61,680,000 for the year ended December 31, 2019, compared to a loss of approximately HK$244,267,000 in 2018[19]. - The consolidated loss attributable to the owners of the Company amounted to approximately HK$67,200,000 for the year, down from a loss of approximately HK$251,411,000 in 2018[19]. - The Group's performance reflects a significant improvement in losses compared to the previous year, indicating potential recovery[19]. - The Group recorded a net loss of approximately HK$61,680,000 for the Year, a significant improvement from a net loss of approximately HK$244,267,000 in 2018[143]. - The net loss attributable to owners of the Company was approximately HK$67,200,000, compared to HK$251,411,000 in 2018[145]. Revenue Generation - Revenue generated from the Software Business was approximately HK$73,994,000, representing about 20.0% of the Group's total turnover from continuing operations for the year[22]. - Revenue from the B2C Online Sales Platform and B2B Product Trading Business accounted for approximately 67.5% of the Group's total turnover from continuing operations for the year[28]. - Revenue from the Corporate Management Solutions and I.T. Contract Services Business segment was approximately HK$46,347,000, representing a 13.1% increase compared to approximately HK$40,967,000 in 2018[53]. - Revenue from the B2C Online Sales Platform and B2B Product Trading Business was approximately HK$249,498,000 for the year, with a segment profit of approximately HK$4,107,000[66]. Business Segments - The Group is engaged in multiple business segments, including Software Business, Corporate Management Solutions, I.T. Contract Services, B2C Online Sales, B2B Product Trading, and Securities Investment[21]. - The Software Business remains a key revenue stream and pillar business for the Group, with ongoing reviews and upgrades of software products[22]. - The Corporate Management Solutions and I.T. Contract Services Business recorded a loss of approximately HK$6,794,000, a decrease of 58.4% from a loss of approximately HK$16,348,000 in 2018[53]. - The Group has commenced operations of a B2B Product Trading business to diversify its portfolio and increase market penetration[68]. Investment Strategy - The Group aims to strategically invest its capital to generate long-term and stable revenue while achieving further business diversification[30]. - The Group's strategic move to make a pre-IPO investment in March 2019 is aimed at potentially reviving the Securities Investment Business[28]. - The Group plans to explore potential investment opportunities while monitoring the financial market and the performance of the Securities Investment Business due to expected instabilities from trade tariffs and global interest rate fluctuations[95]. - The Group's investment strategy is subject to the volatile economic situation, indicating a cautious approach to future investments[89]. Market Conditions - The Group's business operations were affected by the volatility of the global macro-economic environment in 2019, presenting both risks and opportunities[21]. - The overall market conditions in 2019 presented challenges that the Group navigated while seeking new business opportunities[21]. - The software business remained weak during the year due to slower-than-expected growth in emerging markets and fierce competition in the I.T. industry[45]. - The recent coronavirus pandemic may potentially boost the number of PC users and software product sales, impacting the financial performance of the Software Business[47]. Cash and Assets - As of December 31, 2019, the Group had cash and cash equivalents and pledged bank deposits of approximately HK$81,350,000 and net current assets of approximately HK$152,240,000[30]. - The Group's total assets amounted to approximately HK$370,896,000, a decrease from approximately HK$433,035,000 in 2018, while total liabilities increased to approximately HK$64,320,000 from HK$53,723,000[149]. - The gearing ratio as of December 31, 2019, was approximately 17.3%, up from 12.4% in 2018[149]. - Trade and other receivables increased to approximately HK$85,017,000 as of December 31, 2019, from approximately HK$36,725,000 as of December 31, 2018, primarily due to new business development in the B2C Online Sales Platform and B2B Product Trading Business[167]. Legal Proceedings - The Group is involved in three civil legal proceedings related to the AP Acquisition, which may impact its operations[170]. - Legal proceedings were initiated against the Vendor and Guarantor for the Adjustment Amount, including claims for interests and costs[181]. - An amended writ of summons was filed on 26 September 2019, claiming damages of HK$20,400,000 against former directors Chan and Lim for potential breaches of duty[183]. - Legal proceedings have been initiated against the defendants for the delivery of Full Business Records and accounting for assets controlled by the defendants[196]. Software Development - The Boom Max Group launched several upgraded software products in 2019, including IObit Software Updater 2, IObit Malware Fighter 7, IObit Uninstaller 9.0, Driver Booster 7.0, and Advanced SystemCare 13.0[44]. - The Group has focused on enhancing its software offerings to address evolving cyber threats and improve user experience[41]. - The Group plans to enhance its software products and expand distribution channels by cooperating closely with local dealers and affiliates[47]. Shareholder Returns - The Directors do not recommend the payment of a dividend for the year, consistent with 2018[20]. - The Group plans to maintain a balance between risk and return while pursuing stable business growth and sustainable returns for shareholders[33].

Revenue Performance - For the three months ended September 30, 2019, the revenue was HK$79,968,000, an increase from HK$31,748,000 in the same period of 2018, representing a growth of 151.1%[10] - For the nine months ended September 30, 2019, the revenue was HK$166,804,000, up from HK$101,136,000 in 2018, showing a growth of 64.7%[10] - Revenue from contracts with customers for the nine months ended 30 September 2019 was HK$166,804,000, a decrease of 18.5% compared to HK$204,940,000 for the same period in 2018[35] - Revenue from the sale of computer and mobile phone software and toolbar advertisement for the three months ended 30 September 2019 was HK$17,497,000, down 11.4% from HK$19,707,000 in 2018[35] - E-commerce revenue for the nine months ended 30 September 2019 was HK$78,874,000, compared to no revenue in the same period of 2018, indicating a significant market expansion[35] - Revenue from kindergarten education was HK$0 for the nine months ended September 30, 2019, a decrease from HK$3,305,000 in 2018[35] - Revenue from the Corporate Management Solutions and I.T. Contract Services Business was approximately HK$35,829,000, representing an increase of approximately 12.3% from HK$31,897,000 in the same period last year[146] - The revenue from Hong Kong for the nine months ended September 30, 2019 was HK$110,547,000, a substantial increase from HK$36,745,000 in 2018, reflecting a growth of 200.5%[22] - Revenue from the United States decreased to HK$16,083,000 for the nine months ended September 30, 2019, down from HK$23,330,000 in the same period of 2018, representing a decline of 30.8%[22] - Other regions, including Mainland China, contributed HK$22,358,000 in revenue for the nine months ended September 30, 2019, compared to HK$19,711,000 in 2018, showing an increase of 8.3%[22] Profit and Loss - The gross profit for the three months ended September 30, 2019, was HK$17,759,000, a slight decrease from HK$18,202,000 in 2018, reflecting a decline of 2.4%[10] - The loss for the period from continuing operations was HK$3,205,000, compared to a loss of HK$1,722,000 in the same period of 2018, indicating an increase in loss of 86.1%[10] - The loss before taxation for the three months ended September 30, 2019, was HK$2,368,000, compared to a loss of HK$664,000 in the same period of 2018, representing an increase in loss of 256.4%[10] - The loss for the nine months ended September 30, 2019, was HK$4,490,000, compared to a loss of HK$184,428,000 in the same period of 2018, indicating a significant reduction in loss of 97.6%[10] - The basic loss per share for the three months ended September 30, 2019, was HK$0.96, compared to HK$0.64 in 2018, reflecting an increase in loss per share of 50%[15] - The total comprehensive loss was HK$10,128,000, a significant decrease from HK$192,027,000 in the same period of 2018, indicating a reduction in losses by 94.7%[20] - The loss attributable to owners of the Company for the nine months ended September 30, 2019, was HK$7,983,000, compared to HK$189,507,000 in 2018[64] - The total loss for the period attributable to owners was HK$4,248,000 for the three months ended September 30, 2019, compared to HK$2,840,000 in 2018[64] Expenses and Costs - Total selling and administrative expenses for the three months ended September 30, 2019, were HK$18,610,000, down from HK$20,598,000 in 2018, a decrease of 9.6%[10] - Total staff costs for the nine months ended September 30, 2019, were HK$20,385,000, down from HK$25,731,000 in the same period of 2018, indicating a reduction of 20.9%[45] - The current tax expense for the nine months ended September 30, 2019, was HK$2,158,000, a decrease from HK$3,810,000 in the same period of 2018, reflecting a reduction of 43.2%[50] Impairment and Losses - The company reported an impairment loss on trade and other receivables of HK$107,000 for the three months ended September 30, 2019, compared to HK$124,000 in 2018, a decrease of 13.7%[10] - The company incurred a loss on deemed disposal of an associate amounting to HK$2,129,000 for the nine months ended September 30, 2019, with no such loss reported in the same period of 2018[38] - Impairment loss on goodwill for the nine months ended September 30, 2019, was HK$163,000,000, significantly impacting the overall financial performance[38] - The total impairment loss on amounts due from deconsolidated subsidiaries for the nine months ended September 30, 2019, was HK$570,000, with no such loss reported in the same period of 2018[38] Financial Position - The accumulated losses as of September 30, 2019, amounted to HK$189,507,000, a decrease from HK$908,697,000 at the beginning of the year, representing a reduction of 79.1%[22] - The total equity attributable to owners of the company decreased to HK$611,363,000 as of September 30, 2019, from HK$648,833,000 at the beginning of the year, reflecting a decline of 5.8%[22] - The Group's financial statements have been prepared under the historical cost convention, with certain financial instruments measured at fair values[28] Business Segments - The Group's principal activities include research, development, and distribution of software, e-commerce operations, securities investment, and IT contract services[26] - The Group's reportable segments included Software Business, Securities Investment Business, Corporate Management Solutions, and B2C Online Sales Platform and B2B Product Trading[73] - The segment revenue reported for the Corporate Management Solutions and I.T. Contract Services Business was HK$35,888,000[82] - The Software Business recorded revenue of approximately HK$52,101,000, a decrease of approximately 17.1% compared to HK$62,822,000 in the same period of 2018[133] - The B2C Online Sales Platform and B2B Product Trading Business generated revenue of approximately HK$78,874,000, with a segment profit of approximately HK$889,000, marking the first revenue for this segment[150] Strategic Developments - The Group aims to diversify its business portfolio and expand geographical footprint through the B2B Product Trading initiative, introducing high-quality products globally[152] - The Group continues to explore business opportunities in the Asia-Pacific regions while maintaining mature distribution channels in traditional markets like the U.S., Russia, Japan, and Europe[137] - The Group has launched enhanced software products, including IObit Software Updater 2 and IObit Malware Fighter 7, to strengthen its flagship offerings[135] Market Challenges - The competitive landscape in the I.T. market and declining popularity of PC devices have posed ongoing challenges to the Software Business, leading to weak sales performance during the period[138] - The Securities Investment Business segment recorded a loss of approximately HK$134,000, a decrease of approximately 93.4% compared to a loss of approximately HK$2,031,000 in 2018[156] Investments and Disposals - The Group disposed of 186,492,340 shares of Finsoft Financial Investment Holdings Limited, generating net proceeds of approximately HK$12.4 million at an average price of approximately HK$0.07 per share[158] - The Finsoft Disposal resulted in an accumulated fair value loss of approximately HK$13,340,000, which was transferred from the investment revaluation reserve to accumulated losses[158] - The Directors believe the Subscription represents a strategic move to potentially revive the Securities Investment Business, which had been suspended due to high risks[166]

2019 Stock code股份代號: 8100 中期業績報告 Interim Report *For identification purposes only 僅供識別 GET HOLDINGS LIMITED 智 易 控 股 有 限 公 司* (Incorporated in the Cayman Islands and continued in Bermuda with limited liability) ( 於開曼群島註冊成立及於百慕達存續之有限公司) CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchang ...