奧栢中國集團有限公司 2022 Interim Report 中期報告 Aurum Pacific (China) Group Limited 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 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 co ...

Financial Performance - The Group's revenue for the three months ended March 31, 2022, was HK$6,163,000, an increase of 2.8% compared to HK$5,986,000 for the same period in 2021[10] - Gross profit for the period was HK$4,621,000, representing a gross margin of approximately 75% compared to HK$3,990,000 in the previous year[10] - The Group reported a profit from operations of HK$248,000, a significant improvement from a loss of HK$1,481,000 in the same period last year[10] - Profit before taxation was HK$207,000, compared to a loss of HK$1,875,000 in the prior year[10] - The profit for the period from continuing operations was HK$207,000, a recovery from a loss of HK$1,875,000 in the previous year[11] - The profit attributable to owners of the Company from discontinued operations was HK$27,000, compared to a loss of HK$19,609,000 in the same period last year[11] - Basic and diluted earnings per share from continuing operations was HK$0.02, a recovery from a loss of HK$0.12 per share in the previous year[11] - Total comprehensive income for the period was HK$235,000, compared to a total comprehensive loss of HK$21,500,000 in the same period last year[13] - The company reported a profit of HK$240,000 for the period, contrasting with a loss of HK$21,076,000 in the previous year[15] - Total comprehensive income for the period was HK$241,000, compared to a total comprehensive expense of HK$21,500,000 in the same period last year[15] Expenses and Cost Management - Research and development expenses increased to HK$2,468,000 from HK$934,000 in the previous year, reflecting the Company's commitment to innovation[10] - Administrative expenses decreased significantly to HK$1,329,000 from HK$4,242,000, indicating improved cost management[10] - Administrative and other operating expenses for the Period were approximately HK$4,373,000, down from approximately HK$5,727,000 in 2021, primarily due to reduced depreciation and staff costs[59] - Staff costs increased to HK$4,063,000 in Q1 2022 from HK$3,393,000 in Q1 2021, reflecting a rise of approximately 19.7%[31] - Interest on lease liabilities rose to HK$15,000 in Q1 2022 from HK$7,000 in Q1 2021, marking an increase of 114.3%[31] - The company recorded finance costs of HK$41,000 in Q1 2022, a decrease of 89.6% from HK$394,000 in Q1 2021[31] - The depreciation of property, plant, and equipment significantly decreased to HK$41,000 in Q1 2022 from HK$1,259,000 in Q1 2021, a reduction of approximately 96.7%[31] Revenue Sources - The company did not generate revenue from mobile games and applications in the first quarter of 2022, compared to HK$10,000 in the same period of 2021[26] - Revenue from the Software Platform Business increased by approximately HK$177,000 to approximately HK$6,163,000 for the Period, compared to approximately HK$5,986,000 for the same period in 2021[55] - The segment revenue from the Mobile Games and Applications Business was nil for the Period, down from approximately HK$10,000 in 2021 due to the obsolescence of current mobile games and a reassessment of the Group's strategy[56] Business Strategy and Future Outlook - The Group continues to focus on two principal businesses: Software Platform Business and Mobile Games and Applications Business[70] - The Group is shifting its mobile game business strategy to an IP-based approach to enhance competitiveness and operational flexibility[83] - The COVID-19 pandemic has caused delays in revenue recognition for ongoing projects by an estimated 3 to 4 months on average due to quarantine measures and work-from-home arrangements[71] - The Group expects to recognize more revenue from signed contracts and pipeline inquiries as the business environment improves following the recent COVID-19 situation[79] Shareholder Information - As of March 31, 2022, Mr. Chiu Ngai Hung holds 663,477,955 shares, representing approximately 52.13% of the total shareholding[93] - The total number of shares issued as of March 31, 2022, is 1,272,640,000[94] - The weighted average number of ordinary shares for the purposes of basic and diluted earnings/(loss) per share remained at 1,272,640,000 shares for both periods[50] Corporate Governance - The Audit Committee consists of three independent non-executive Directors, responsible for reviewing financial reporting and internal controls[99] - The Company has adopted a code of conduct for securities transactions by Directors, with no reported non-compliance during the period[101] - The Audit Committee has reviewed the accounting principles and practices adopted by the Company[100] - The Company did not purchase, sell, or redeem any of its listed securities during the reporting period[102] - There were no interests reported by Directors in any competing business during the period[95] - The Company has not been notified of any other interests or short positions in its shares by persons other than Directors and substantial shareholders as of March 31, 2022[96] Taxation and Regulatory Compliance - No provision for Hong Kong Profits Tax was made for both Q1 2022 and Q1 2021 due to tax losses exceeding assessable profits[34] - The total actual tax for the group was HK$0 for both Q1 2022 and Q1 2021, as there were no assessable profits[33] - The company has adopted all new and revised HKFRSs effective from January 1, 2022, with no significant impact on its financial statements[19] - The company is currently assessing the impact of new HKFRSs that have been issued but are not yet effective[20]

Financial Performance - For the year ended December 31, 2021, the Group recorded total revenue of approximately HK$20,258,000, representing a decrease of approximately HK$472,000 or 2.3% compared to HK$20,730,000 in 2020[15]. - Revenue from the Mobile Games and Applications Business decreased by approximately HK$282,000, with segment revenue of approximately HK$45,000 for the year ended December 31, 2021, down from approximately HK$327,000 in 2020[16]. - The Software Platform Business recorded a slight decrease in revenue of approximately HK$190,000, totaling approximately HK$20,213,000 for the year ended December 31, 2021, compared to approximately HK$20,403,000 in 2020[17]. - The Group's gross profit for the year ended December 31, 2021, decreased by approximately 7.3% to approximately HK$8,369,000 compared to approximately HK$9,031,000 in 2020[22][28]. - The consolidated net loss attributable to owners of the Company for the year ended December 31, 2021, was approximately HK$83,337,000, representing an increase of approximately 16.4% compared to approximately HK$71,611,000 in 2020[27][32]. - The loss from discontinued operations for the year ended December 31, 2021, was approximately HK$77,009,000, a significant increase of approximately HK$68,564,000 compared to approximately HK$8,445,000 in 2020, mainly due to decreased revenue and increased impairment losses[26][31]. Cost and Expenses - The Group's cost of sales for the year ended December 31, 2021, amounted to approximately HK$11,889,000, representing a slight increase of 1.6% from approximately HK$11,699,000 in 2020[18]. - Administrative and other operating expenses for the year ended December 31, 2021, amounted to approximately HK$28,315,000, a significant decrease from approximately HK$56,329,000 in 2020, primarily due to reduced impairment losses and staff costs[23][29]. - Finance costs for the year ended December 31, 2021, were approximately HK$1,456,000, down from approximately HK$1,828,000 in 2020[24][30]. Business Strategy and Outlook - The Group's financial performance reflects challenges in the gaming sector, necessitating strategic adjustments to enhance revenue streams[15]. - The decrease in revenue highlights the need for innovation and market expansion strategies to revitalize the Mobile Games and Applications Business[16]. - The Group's management is focused on developing new technologies and products to improve competitive positioning in the market[16]. - Future outlook includes ongoing development of new mobile games and potential enhancements in software platform services to drive growth[16]. - The existing mobile games are approaching the end of their life-cycles, resulting in low segment revenue for the year ended December 31, 2021[16]. - New mobile games are still under development, indicating potential future revenue growth once launched[16]. - The mobile game industry is expected to see a decline in daily active users and average online time, leading to a more conservative business strategy for mobile games owned and under development by the Group[37][41]. Corporate Governance - The company did not have a Chairman during the year ended December 31, 2021, which is a deviation from CG Code provision A.2.1[91]. - The company has implemented corporate governance measures focusing on shareholder integrity, quality of information disclosure, transparency, and accountability[94]. - The roles of Chairman and CEO are required to be separate under CG Code provision A.2.1, which the company did not comply with due to the absence of a Chairman[111]. - The company held its annual general meeting on May 27, 2021, with Mr. Chow Yik acting as the chairman in the absence of a designated Chairman[92]. - The Board comprises five Directors, including two executive Directors and three independent non-executive Directors, ensuring a balanced composition[99]. - The company aims to maintain high standards of corporate governance throughout its operations[96]. - The company currently has no Chairman and CEO following the resignations of Mr. Chan Wai Kit and Mr. Chan Kwun Chung on November 1, 2018, and April 1, 2020, respectively[116]. - The company received annual confirmations of independence from all INEDs, affirming their compliance with GEM Listing Rules[122]. Risk Management and Internal Control - The risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement[192]. - The Board is responsible for evaluating the risks the Company is willing to take to achieve its strategic objectives[191]. - The Company’s external auditor was Baker Tilly Hong Kong Limited, with no non-audit services provided during the year[183]. - The Board conducted an annual review of the internal control system, concluding that the Group had established a sound control environment[193]. - The Audit Committee reviewed financial reporting matters including quarterly, interim, and annual results, and evaluated the effectiveness of risk management and internal control systems[175]. Human Resources - As of December 31, 2021, the Group had 53 employees, with total staff costs amounting to approximately HK$16,791,000, an increase from approximately HK$14,724,000 in 2020[81][87]. - The Group's remuneration policy is periodically revised based on market conditions and individual performance[82]. Financial Position - As of December 31, 2021, the Group's total assets were approximately HK$35,678,000, a decrease from approximately HK$159,519,000 in 2020, while total liabilities were approximately HK$8,796,000, down from approximately HK$44,688,000 in 2020[64][68]. - The Group's gearing ratio improved to approximately 24.7% in 2021 from 28.0% in 2020, and the current ratio decreased to approximately 1.68 from 2.24 in the previous year[64][68]. - The Group's cash and cash equivalents as of December 31, 2021, were approximately HK$3,791,000, an increase from approximately HK$3,415,000 in 2020[59]. - The Group's funding strategy focuses on maintaining a healthy liquidity position through internally generated resources and equity or debt financing[77]. Lending Operations - The Group decided to cease the Money Lending Business segment upon the expiry of the money lending license on June 2, 2021, due to economic challenges and the impact of COVID-19[35][42]. - The Group plans to cease its lending operations after the expiration of its license on June 2, 2021, due to ongoing economic challenges[46]. - The Group has implemented strict credit assessment procedures to ensure comprehensive risk management in its lending operations[47]. - The Group is actively reviewing the recoverability of outstanding loans and formulating measures to minimize impairment losses, including legal actions if necessary[56]. - The methodology for measuring expected credit loss (ECL) is based on lifetime expected losses, reflecting the remaining lifetime of the financial asset[55]. Shareholder Matters - The Group did not recommend the payment of any final dividend for the year ended December 31, 2021[34][38]. - The Group's net proceeds from a previous share placement were approximately HK$32,337,000, with HK$30,879,000 utilized by December 31, 2021, leaving HK$1,458,000 unutilized[72][76].

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 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 generally small ...

Financial Performance - For the three months ended June 30, 2021, the Group's revenue was HK$3,803,000, a decrease of 49% compared to HK$7,485,000 for the same period in 2020[10]. - For the six months ended June 30, 2021, the Group's revenue was HK$10,572,000, down 39% from HK$17,467,000 in the corresponding period of 2020[10]. - The Group reported a gross profit of HK$982,000 for the three months ended June 30, 2021, a significant decline of 82% from HK$5,361,000 in the same period of 2020[10]. - The loss from operations for the six months ended June 30, 2021, was HK$25,807,000, compared to a loss of HK$14,150,000 for the same period in 2020, representing an increase in losses of 83%[10]. - The loss attributable to owners of the Company for the three months ended June 30, 2021, was HK$4,911,000, compared to HK$6,721,000 for the same period in 2020[12]. - The loss per share for the six months ended June 30, 2021, was HK$2.04, compared to HK$0.88 for the same period in 2020, indicating a worsening financial performance[12]. - The total loss for the period for the six months ended June 30, 2021, was HK$26,641,000, compared to HK$14,073,000 for the same period in 2020, highlighting a significant increase in overall losses[10]. - For the six months ended June 30, 2021, the loss was HK$26,641,000, compared to HK$14,073,000 in the prior year, indicating an increase in loss of 89.5%[14]. - The consolidated net loss attributable to owners of the Company for the Period was approximately HK$25,987,000, representing an increase of approximately 131.2% compared to HK$11,240,000 in 2020[107]. Revenue Breakdown - Revenue for the six months ended June 30, 2021, was HK$10,572,000, a decrease of 39.5% compared to HK$17,467,000 for the same period in 2020[32]. - Revenue from software platform services for the six months ended June 30, 2021, was HK$9,776,000, down 6.0% from HK$10,387,000 in 2020[32]. - Mobile games and applications revenue for the six months ended June 30, 2021, was HK$23,000, a decline of 42.5% from HK$40,000 in 2020[32]. - The decrease in revenue was primarily due to a reduction in interest income from the Money Lending Business, which recorded segment revenue of approximately HK$773,000, down from approximately HK$7,040,000 in 2020[98]. - The Software Platform Business accounted for approximately 92.5% of the Group's total revenue for the Period, despite a slight revenue decrease of approximately 5.9%[129]. - The Money Lending Business experienced a significant revenue decline of approximately 89.0%, contributing only approximately 7.3% to the Group's total revenue, with impairment losses on loans increasing to approximately HK$20,537,000[134]. Expenses and Costs - Research and development expenses for the six months ended June 30, 2021, were HK$1,872,000, down from HK$3,642,000 in the same period of 2020, reflecting a reduction in R&D investment[10]. - Administrative expenses for the six months ended June 30, 2021, increased to HK$28,799,000 from HK$24,662,000 in the same period of 2020, indicating rising operational costs[10]. - Staff costs for the six months ended June 30, 2021, were HK$6,451,000, a decrease of 30.5% from HK$9,322,000 in the same period of 2020[48]. - The cost of sales for the Period amounted to approximately HK$4,827,000, compared to approximately HK$3,611,000 in 2020[99]. - Administrative and other operating expenses increased to approximately HK$31,790,000 from approximately HK$29,418,000 in 2020, largely due to impairment losses on loans and interest receivables totaling approximately HK$20,537,000[105]. Assets and Liabilities - The company's net current assets decreased to HK$33,918,000 as of June 30, 2021, from HK$55,263,000 at the end of 2020, a decline of 38.5%[16]. - Non-current assets decreased to HK$54,256,000 as of June 30, 2021, from HK$59,568,000 at the end of 2020, a reduction of 9.1%[16]. - The company's total equity attributable to owners decreased to HK$88,693,000 as of June 30, 2021, from HK$114,690,000 at the end of 2020, a decline of 22.7%[18]. - The total loans receivable, including secured and unsecured loans, amounted to HK$94,524,000 as of June 30, 2021, compared to HK$104,797,000 as of December 31, 2020, reflecting a decrease of about 9.8%[77]. - The current (not past due) loans receivable decreased to HK$54,606,000 from HK$67,095,000, a decline of approximately 18.6%[81]. - The Group's total assets were approximately HK$135,067,000, while total liabilities were approximately HK$46,893,000, resulting in a gearing ratio of approximately 34.7%[115]. Cash Flow - For the six months ended June 30, 2021, the net cash generated from operating activities was HK$1,357,000, a decrease from HK$2,257,000 in the same period of 2020[22]. - The net cash generated from investing activities was HK$3,052,000, compared to a net cash used of HK$528,000 in the prior year[22]. - The net cash used in financing activities was HK$2,626,000, down from HK$3,462,000 in the previous year[22]. - Cash and cash equivalents at the end of the period were HK$5,188,000, a decrease from HK$7,829,000 at the end of June 2020[22]. - The Group had cash and cash equivalents of approximately HK$5,188,000 as of June 30, 2021, an increase from approximately HK$3,415,000 in 2020[108]. Governance and Management - The company has complied with the Corporate Governance Code throughout the period, except for provisions A.2.1, A.4.1, and A.6.7[163]. - All independent non-executive directors have entered into letters of appointment for an initial term of three years, ensuring governance practices are maintained[169]. - The company does not have a separate chairman and CEO; the role of CEO is currently shared among executive directors[165]. - The board believes that the balance of power and authority is maintained through its operations, which include experienced individuals discussing operational issues[165]. - The company will arrange for the appointment of a new chairman and CEO when deemed appropriate[165]. - The governance practices are designed to be no less exacting than those prescribed by the Corporate Governance Code[169]. Future Outlook - The Group expects a challenging recovery path, with performance inevitably affected by the ongoing pandemic and the effectiveness of new vaccines[139]. - The Group will strictly adhere to its cost control policy and swiftly adjust business strategies in response to external environmental changes[141]. - The Group's performance in the upcoming period will depend significantly on the development of the pandemic and the effectiveness of vaccination efforts[141].

Financial Performance - The Group's revenue for the three months ended March 31, 2021, was HK$6,769,000, a decrease of 32.2% compared to HK$9,982,000 for the same period in 2020[10]. - Gross profit for the period was HK$4,763,000, down 43.3% from HK$8,495,000 in the previous year[10]. - Loss from operations increased to HK$21,090,000, compared to a loss of HK$5,906,000 in the same period of 2020, reflecting a significant rise in operational challenges[12]. - Loss before taxation for the period was HK$21,484,000, compared to HK$6,410,000 in the prior year, indicating a worsening financial performance[12]. - The loss attributable to owners of the Company was HK$21,076,000, compared to HK$4,519,000 in the same period last year, highlighting increased financial strain[12]. - Basic and diluted loss per share for the period was HK$1.66, compared to HK$0.36 for the same period in 2020, reflecting a significant decline in shareholder value[12]. - Total comprehensive expense for the period was HK$21,500,000, compared to HK$5,945,000 in the same period last year, reflecting overall financial deterioration[14]. - The company reported a loss for the period of HK$21,076,000, compared to a loss of HK$4,519,000 in the same period last year[26]. - Total comprehensive expense for the period was HK$21,086,000, reflecting a significant increase from HK$4,552,000 in Q1 2020[26]. - As of March 31, 2021, accumulated losses reached HK$357,427,000, up from HK$336,351,000 at the beginning of the year[27]. Revenue Breakdown - Revenue from software platform services was HK$5,986,000, slightly up by 2.5% from HK$5,842,000 in the previous year[27]. - Interest income from money lending decreased significantly to HK$773,000, down 81.3% from HK$4,127,000 in Q1 2020[27]. - Revenue from the Money Lending Business decreased by approximately HK$3,354,000, recording segment revenue of approximately HK$773,000 for the Period compared to approximately HK$4,127,000 in 2020[50]. - Segment revenue from the Software Platform Business increased slightly by approximately HK$144,000 to approximately HK$5,986,000 for the Period compared to approximately HK$5,842,000 in 2020[50]. - The money lending business segment revenue decreased by approximately 81.3%, contributing only about 11.4% to the Group's total revenue for the period[69]. - The Software Platform Business achieved a slight revenue increase of approximately 2.5%, accounting for about 88.4% of the Group's total revenue for the period[62]. Expenses and Costs - Administrative expenses rose sharply to HK$24,924,000, up from HK$11,527,000 in the previous year, indicating increased operational costs[10]. - Research and development expenses decreased to HK$934,000 from HK$2,296,000, suggesting a potential shift in focus or resource allocation[10]. - The cost of sales for the Period amounted to approximately HK$2,006,000, an increase from approximately HK$1,487,000 in 2020[51]. - Impairment losses on loans and interest receivables amounted to HK$20,547,000 for the Period, compared to HK$2,383,000 in 2020[33]. - Administrative and other operating expenses increased significantly to approximately HK$24,924,000, primarily due to impairment losses on loans receivable and interest receivables amounting to approximately HK$20,547,000[57]. Corporate Governance - The company has not applied new HKFRSs that are issued but not yet effective, and is assessing their potential impact[21]. - The financial statements are prepared under the historical cost convention and comply with HKFRSs[18]. - The company has failed to meet the minimum number of independent non-executive directors required under GEM Listing Rules following recent resignations[89]. - The Audit Committee currently comprises two independent non-executive directors, with Mr. Leung Man Chun serving as the chairman[90]. - The company is working to identify suitable candidates to fulfill the independent non-executive director requirements within three months[89]. - The company emphasizes a more prudent approach to resource allocation moving forward[76]. - The company has adopted a code of conduct for securities transactions by directors, adhering to the standards set out in GEM Listing Rules[92]. - The company currently has five directors, with three being executive directors and two independent non-executive directors, which does not meet the minimum requirement under GEM Listing Rules[93]. - The audit committee is composed of two independent non-executive directors and is responsible for reviewing financial reporting and internal controls[94]. Future Outlook - The Group expects the Hong Kong economy to remain challenging in 2021, and will continue to adopt a prudent credit policy in the money lending business[69]. - The Group anticipates that its performance will be affected by the ongoing challenges posed by the COVID-19 pandemic and will adjust its business strategies accordingly[74]. - The company anticipates a challenging recovery path, heavily dependent on the development of the pandemic and the effectiveness of new vaccines[76]. - The group plans to adhere strictly to cost control policies and swiftly adjust business strategies in response to external environmental changes[76]. - The Group plans to seek potential investment opportunities that can create synergies with existing business segments while maintaining cautious resource allocation[75]. Shareholding Structure - As of March 31, 2021, Mr. Chiu Ngai Hung holds 663,477,955 shares, representing approximately 52.13% of the total shareholding[84]. - The total number of shares issued as of March 31, 2021, is 1,272,640,000[85]. - The Board does not recommend the payment of any dividend for the three months ended March 31, 2021 (2020: Nil)[42]. - No purchase, sale, or redemption of the company's listed securities occurred during the reporting period[96]. - The board of directors consists of three executive directors and two independent non-executive directors as of the report date[97].

Financial Performance - For the year ended December 31, 2020, the Group recorded total revenue of approximately HK$31,420,000, representing a decrease of approximately HK$8,653,000 or 21.6% compared to approximately HK$40,073,000 in 2019[17]. - The decrease in revenue was primarily due to a reduction in interest income from the Money Lending Business, which recorded segment revenue of approximately HK$10,690,000 for 2020, down from approximately HK$17,040,000 in 2019, a decline of approximately HK$6,350,000[18]. - Revenue from the Mobile Games and Applications Business decreased by approximately HK$2,599,000, recording segment revenue of approximately HK$327,000 for 2020 compared to approximately HK$2,926,000 in 2019[19]. - The Software Platform Business saw a slight increase in segment revenue of approximately HK$296,000, totaling approximately HK$20,403,000 for 2020, compared to approximately HK$20,107,000 in 2019[20]. - The Group's overall financial performance reflects the challenges faced in 2020, with a focus on adapting to market conditions and managing risks associated with the pandemic[18]. - The Group's gross profit decreased by approximately 44.4% to approximately HK$19,721,000, with the profit margin dropping from approximately 88.5% in 2019 to approximately 62.8% in 2020[24]. - The consolidated net loss attributable to owners of the Company for the year ended December 31, 2020, was approximately HK$71,611,000, an increase of approximately 16.5% compared to HK$61,470,000 in 2019[32]. - Administrative and other operating expenses rose to approximately HK$75,411,000, up from approximately HK$58,257,000 in 2019, largely due to impairment losses totaling approximately HK$27,616,000[25]. - The Money Lending Business segment revenue decreased by approximately 37.3%, contributing approximately 34.0% to the Group's total revenue for the year ended December 31, 2020[41]. - The Mobile Games and Applications Business segment revenue decreased by approximately 88.8%, contributing only approximately 1.0% to the Group's total revenue for the year ended December 31, 2020[42]. - Impairment losses on loans and interest receivables increased to approximately HK$17,159,000 for the year ended December 31, 2020, compared to approximately HK$4,850,000 in 2019[41]. - The additional impairment loss on goodwill and intangible assets for the mobile games and applications business reached approximately HK$38,558,000, compared to approximately HK$44,975,000 in 2019[44]. Economic Impact - The COVID-19 pandemic significantly impacted the Hong Kong economy, increasing risks and uncertainties in the lending market, leading to a prudent credit policy and fewer new loans being approved during the year[18]. - The financial review indicates a need for strategic adjustments in response to market volatility and changing consumer behaviors due to the pandemic[18]. Strategic Initiatives - Management is currently developing new mobile games, as existing titles are nearing the end of their life-cycles, contributing to lower revenue in the Mobile Games and Applications Business[19]. - The Group's management has expressed a commitment to exploring new strategies and technologies to enhance future growth and revenue streams[19]. - The Group aims to leverage its existing technology and software capabilities to improve service offerings and expand market reach in the coming years[20]. Corporate Governance - The Company has complied with most provisions of the Corporate Governance Code throughout the year ended December 31, 2020, with exceptions explained in the report[78]. - The Company had no Chairman during the year ended December 31, 2020, which affected compliance with certain corporate governance provisions[79]. - The Board comprises six Directors, including four executive Directors and two independent non-executive Directors, ensuring a balanced composition[88]. - The Company has measures in place to ensure corporate governance practices meet or exceed regulatory standards[104]. - The Company adopted a code of conduct for securities transactions by Directors, with no non-compliance reported for the year ended December 31, 2020[190]. Board and Committees - The Board of Directors held 7 meetings during the year ended December 31, 2020, to discuss overall strategy and financial performance[92]. - The Remuneration Committee held two meetings during the year ended December 31, 2020, with full attendance from the INEDs[124]. - The Audit Committee held four meetings during the year ended December 31, 2020, with full attendance from its members[158]. - The Nomination Committee held two meetings in the year ended December 31, 2020, with full attendance from its members[134]. Financial Position - As of December 31, 2020, the Group's cash and cash equivalents were approximately HK$3,415,000, a decrease from approximately HK$9,610,000 in 2019[48]. - The Group's total assets were approximately HK$159,519,000, down from approximately HK$260,698,000 in 2019, while total liabilities decreased to approximately HK$44,688,000 from approximately HK$57,979,000[49]. - The gearing ratio increased to approximately 28.0% as of December 31, 2020, compared to approximately 22.2% in 2019[49]. - The Company had three Independent Non-Executive Directors (INEDs) during the financial year ended December 31, 2020, with at least one possessing appropriate professional accounting or financial management expertise[110]. Risk Management - The Board is responsible for evaluating risks and ensuring effective risk management and internal control systems to safeguard shareholder interests[174]. - The risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement[175]. - Related party transactions were periodically reviewed and approved by the Audit Committee for the year ended December 31, 2020[192].

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") 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分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。 本報告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關奧栢中國集團有限公司（「本公司」）的資 料；本公司的董事（「董事」）願就本報告的資料共同及個別地承擔全部責任。各董事在作出一切合理查詢後，確認就其所知 及所信：(1)本報告所載資料在各重要方面均屬準確完備，沒有誤導或欺詐成分；(2)且並無遺漏任何事項，足以令致本報告或 其所載任何陳述產生誤導；及(3)本報告所表達之一切意見乃經審慎周詳考慮後達致，並以公平合理之基準及假設為依據。 RESULTS 業績 GEM has been positioned as a market designed to accommodate small and mid-sized compani ...

Financial Performance - The Group's revenue for the three months ended June 30, 2020, was HK$7,485,000, a decrease of 33.5% compared to HK$11,263,000 for the same period in 2019[11]. - For the six months ended June 30, 2020, the Group's revenue was HK$17,467,000, down 18.3% from HK$21,402,000 in the prior year[11]. - The gross profit for the three months ended June 30, 2020, was HK$5,361,000, representing a decline of 46.6% from HK$10,038,000 in the same period of 2019[11]. - The loss from operations for the three months ended June 30, 2020, was HK$8,244,000, compared to a loss of HK$2,454,000 for the same period in 2019, indicating a significant increase in operational losses[11]. - The loss before taxation for the six months ended June 30, 2020, was HK$15,130,000, which is a 66.8% increase from HK$9,051,000 in the previous year[11]. - The loss attributable to owners of the Company for the six months ended June 30, 2020, was HK$11,240,000, compared to HK$5,928,000 for the same period in 2019, indicating a worsening financial position[12]. - The basic and diluted loss per share for the six months ended June 30, 2020, was HK$0.88, compared to HK$0.47 in the previous year, representing an increase of 87.2%[12]. - The company reported a loss of HK$8,190,000 for the three months ended June 30, 2020, compared to a loss of HK$2,469,000 for the same period in 2019, representing an increase in loss of 231%[14]. - For the six months ended June 30, 2020, the loss was HK$14,073,000, up from HK$7,992,000 in 2019, indicating a 76% increase in loss year-over-year[14]. - Total comprehensive expense for the three months ended June 30, 2020, was HK$8,174,000, compared to HK$2,532,000 in 2019, reflecting a 222% increase[14]. Expenses and Costs - The total administrative expenses for the six months ended June 30, 2020, were HK$24,662,000, up from HK$23,371,000 in the same period of 2019[11]. - Research and development expenses for the six months ended June 30, 2020, amounted to HK$3,642,000, compared to HK$3,124,000 in the prior year, reflecting an increase of 16.6%[11]. - Total staff costs for the six months ended June 30, 2020, amounted to HK$9,322,000, slightly up from HK$9,278,000 in 2019, reflecting a marginal increase of 0.5%[51]. - Amortization of intangible assets for the six months ended June 30, 2020, was HK$6,418,000, unchanged from the same period in 2019[53]. - Depreciation of property, plant, and equipment for the six months ended June 30, 2020, was HK$3,052,000, down from HK$3,800,000 in 2019, representing a decrease of 19.7%[53]. - Impairment losses on loans and receivables for the six months ended June 30, 2020, were HK$6,005,000, compared to HK$13,000 in 2019, indicating a significant increase in impairment losses[53]. Assets and Liabilities - The company's net assets decreased to HK$188,600,000 as of June 30, 2020, down from HK$202,719,000 at the end of 2019, a decline of 7%[17]. - Current assets decreased to HK$131,709,000 as of June 30, 2020, from HK$139,766,000 at the end of 2019, a reduction of 6%[16]. - The company's cash and cash equivalents were HK$7,829,000 as of June 30, 2020, down from HK$9,610,000 at the end of 2019, a decrease of 18.5%[16]. - Trade and other receivables increased to HK$24,836,000 as of June 30, 2020, compared to HK$14,188,000 at the end of 2019, representing a 75% increase[16]. - The company’s total equity attributable to owners decreased to HK$174,969,000 as of June 30, 2020, from HK$186,544,000 at the end of 2019, a decline of 6.3%[17]. - Non-current assets decreased to HK$110,174,000 as of June 30, 2020, from HK$120,932,000 at the end of 2019, a decrease of 9%[16]. - The Group's total assets were approximately HK$241,883,000, down from HK$260,698,000 as of December 31, 2019, while total liabilities were approximately HK$53,283,000, compared to HK$57,979,000 in the previous year[150]. - The Group's debt ratio, calculated as total liabilities divided by total assets, was approximately 22% as of June 30, 2020, slightly down from 22.2% at the end of 2019[150]. Cash Flow and Financing - Net cash generated from operating activities was HK$2,257,000 for the six months ended June 30, 2020, compared to a net cash used of HK$10,422,000 in the same period of 2019[21]. - The company experienced a net decrease in cash and cash equivalents of HK$1,733,000 for the six months ended June 30, 2020, compared to a decrease of HK$3,065,000 in the same period of 2019[21]. - Cash and cash equivalents at the end of the period were HK$7,829,000, down from HK$11,879,000 at the end of June 30, 2019[21]. - The Group's secured loans amounted to HK$98,270,000 as of June 30, 2020, down from HK$110,565,000 as of December 31, 2019, a decrease of about 11.1%[85]. - The loss allowance for loans receivable increased to HK$5,342,000 from HK$4,520,000, indicating a rise of approximately 18.2%[85]. - The Group's current (not past due) loans receivable decreased to HK$73,099,000 from HK$81,625,000, a decline of about 10.4%[89]. Strategic Adjustments and Governance - The Company has acknowledged the need for strategic adjustments in response to the financial challenges faced during the reporting period[9]. - The Group plans to implement strict cost control policies and adjust business strategies in response to external environmental changes amid economic challenges[148]. - The Company is committed to maintaining high standards of corporate governance and has complied with the Corporate Governance Code provisions throughout the period, except for specific provisions A.2.1, A.4.1, and A.6.7[190]. - The roles of chairman and CEO are currently shared among executive directors following the resignations of previous officeholders, ensuring a balance of power and authority within the Board[192]. - The Board is independent of the boards of competing businesses, allowing the Company to operate its business independently[187]. Shareholder Information - As of June 30, 2020, Mr. Chiu Ngai Hung holds 663,477,955 shares, representing approximately 52.13% of the total shareholding[173]. - The total number of shares issued as of June 30, 2020, is 1,272,640,000[174]. - The Company has not granted any options under the Share Option Scheme during the reporting period, with a total of 127,264,000 options available for granting, representing 10% of the shares in issue[180]. - The Company has not been notified of any other interests or short positions in its shares by individuals other than directors and substantial shareholders as of June 30, 2020[175].

奧栢中國集團有限公司 ( incorporated in the Cayman Islands with limited liability) ( 於開曼群島註冊成立的有限公司 ) Stock Code 股份代號 : 8148 2020 First Quarterly Report 第一季度業績報告 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 investors should be aware of the potential risks of investing in such ...