Financial Performance - For the year ended December 31, 2019, the Group recorded total revenue of approximately HK$40,073,000, a decrease of approximately HK$13,895,000 or 25.7% compared to HK$53,968,000 in 2018[16] - Interest income from the Money Lending Business increased significantly to approximately HK$17,040,000, up from approximately HK$13,473,000 in 2018[16] - Revenue from the Software Platform Business was approximately HK$20,107,000, compared to approximately HK$18,603,000 in 2018, indicating positive growth[16] - The decline in total revenue was partially offset by growth in the Money Lending and Software Platform segments[16] - The Group's performance in the Mobile Games and Applications Business saw a decrease in segment revenue, contributing to the overall revenue decline[16] - The loss attributable to owners of the Company increased by approximately 57.7% to approximately HK$61,470,000, compared to approximately HK$38,967,000 in 2018, mainly due to decreased revenue in the Mobile Games and Applications Business and an impairment loss of approximately HK$44,975,000 related to goodwill[25] - Revenue from the Mobile Games and Applications Business decreased by approximately HK$18,966,000 from approximately HK$21,892,000 in 2018 to approximately HK$2,926,000 in 2019[39] - The Money Lending Business generated an increment of approximately 26.5% in segment revenue, contributing approximately 42.5% to the Group's total revenue for the year ended December 31, 2019[41] Cost and Profitability - The cost of sales for the Group amounted to approximately HK$4,598,000, down from approximately HK$9,124,000 in 2018[17] - Gross profit decreased by approximately 20.9% to approximately HK$35,475,000, while maintaining a high gross profit margin of approximately 88.5%[18] - The Group's gross profit decreased by approximately 20.9% to approximately HK$35,475,000 for the year ended December 31, 2019, while maintaining a high gross profit margin of approximately 88.5%[21] - Administrative and other operating expenses amounted to approximately HK$58,275,000, a slight decrease from approximately HK$59,208,000 in 2018, primarily due to a minor reduction in research and development expenses[23] Assets and Liabilities - The Group's cash and cash equivalents as of December 31, 2019, were approximately HK$9,610,000, down from approximately HK$14,948,000 in 2018[52] - The total assets of the Group were approximately HK$260,698,000 as of December 31, 2019, compared to approximately HK$324,784,000 in 2018, indicating a decrease in total assets[53] - The Group's gearing ratio increased to approximately 22.2% as of December 31, 2019, up from approximately 16.7% in 2018[53] - The Group's outstanding loans receivable, net of provisions, decreased to approximately HK$106,045,000 as of December 31, 2019, from approximately HK$108,519,000 in 2018[50] - The Group's provision for loan losses increased to approximately HK$4,520,000 as of December 31, 2019, compared to approximately HK$80,000 in 2018[50] - The loss allowance related to loans receivable increased to approximately HK$4,520,000 as of December 31, 2019, compared to approximately HK$80,000 in 2018[46] Corporate Governance - The Company is committed to high standards of corporate governance, emphasizing integrity, transparency, and accountability to maximize shareholder returns[76][82] - The Company complied with most provisions of the Corporate Governance Code, with exceptions explained in the report[77][83] - The Board comprises seven directors, including three executive directors and three independent non-executive directors, ensuring a balanced composition for independent judgment[79][80] - The Company plans to appoint a new Chairman when deemed appropriate, following the resignation of the previous deputy chairman[95] - The roles of Chairman and CEO are currently separated, with the CEO responsible for day-to-day management[92][93] - The Company has established clear written terms of reference for each committee, available on its website and GEM website[107] - The Company emphasizes meritocracy in Board appointments while considering diversity benefits[138] Risk Management - The Group will continue to adopt a prudent credit policy and risk management approach to mitigate potential bad debts and losses in the Money Lending Business[47] - The Board is responsible for evaluating risks associated with achieving strategic objectives and ensuring effective risk management systems[161] - The internal control system was reviewed annually, covering financial, operational, and compliance controls, with no major issues identified for the year ended December 31, 2019[162] Future Strategies - The Company continues to focus on developing and marketing patented technologies and software solutions to enhance revenue streams[16] - Future strategies may include further expansion in the Money Lending and Software Platform sectors to drive growth[16] - The Group plans to utilize approximately HK$1,458,000 of unutilized proceeds from a previous placing for investments in environmental-related projects in the coming year[60] Employee and Board Composition - As of December 31, 2019, the Group had 58 employees, a decrease from 66 employees in 2018, with total staff costs approximately HK$18,570,000, down from HK$21,238,000 in 2018[72][74] - The biographies of executive directors highlight extensive experience in finance, accounting, and corporate governance[188][190][191] - The company has a strong focus on R&D in software system design, led by Mr. Zheng, who has over 18 years of experience in software engineering[195] - The board comprises members with diverse backgrounds in finance, accounting, and technology, enhancing strategic decision-making capabilities[194] Audit and Compliance - The Audit Committee is responsible for recommending the appointment and removal of external auditors and ensuring the accuracy of financial statements[142] - The Audit Committee reviewed quarterly, interim, and annual results, ensuring compliance with accounting standards and GEM Listing Rules[152] - External auditor remuneration for audit services was HK$868,000 and for non-audit services was HK$45,000 for the year ended December 31, 2019[160] - Related party transactions were periodically reviewed and approved by the Audit Committee during the year[176]

Revenue Performance - The Group's revenue for the three months ended September 30, 2019, was HK$8,302,000, a decrease of 52.5% compared to HK$17,457,000 for the same period in 2018[10]. - For the nine months ended September 30, 2019, the Group's revenue was HK$29,704,000, down 24.2% from HK$39,196,000 in the previous year[10]. - Revenue includes sales from software platform services, mobile game development, and interest income from money lending[42]. - For the three months ended September 30, 2019, the revenue from software platform provision was HK$3,792,000, a decrease of 40% compared to HK$6,313,000 in the same period of 2018[43]. - Mobile gaming and application revenue significantly dropped to HK$20,000 from HK$7,906,000 year-over-year for the three months ended September 30, 2019[43]. - Interest income from money lending business increased to HK$4,490,000 for the three months ended September 30, 2019, up 38.8% from HK$3,238,000 in the same period of 2018[43]. - Total revenue for the nine months ended September 30, 2019, was HK$29,704,000, a decrease of 24.2% compared to HK$39,196,000 in the same period of 2018[43]. - Interest income from the Money Lending Business increased significantly to approximately HK$14,737,000, up from approximately HK$9,047,000 in 2018, contributing approximately 49.6% to total revenue[76][99]. - Revenue from the Software Platform Business was approximately HK$13,534,000, an increase of approximately 10.0% compared to HK$12,301,000 in 2018, accounting for approximately 45.6% of total revenue[76][88]. Profit and Loss - The gross profit for the three months ended September 30, 2019, was HK$7,392,000, representing a decline of 54.5% from HK$16,285,000 in the same period of 2018[10]. - The loss from operations for the three months ended September 30, 2019, was HK$4,184,000, compared to a loss of HK$1,426,000 for the same period in 2018[11]. - The loss for the period attributable to owners of the Company for the three months ended September 30, 2019, was HK$2,849,000, compared to a loss of HK$3,646,000 in the previous year[11]. - The basic and diluted loss per share for the three months ended September 30, 2019, was HK$0.22, an improvement from HK$0.29 in the same period of 2018[11]. - The Group reported a loss before taxation of HK$4,711,000 for the three months ended September 30, 2019, compared to a loss of HK$1,657,000 in the previous year[11]. - The company reported a loss of HK$4,182,000 for the three months ended September 30, 2019, compared to a loss of HK$2,357,000 in the same period of 2018, representing an increase in loss of approximately 77.4%[13]. - For the nine months ended September 30, 2019, the total loss was HK$12,174,000, a decrease of 11.5% compared to a loss of HK$13,761,000 in the same period of 2018[13]. - The total comprehensive expense for the three months ended September 30, 2019, was HK$4,178,000, compared to HK$3,682,000 for the same period in 2018, indicating an increase of 13.5%[13]. - The company attributed a loss of HK$2,827,000 to owners of the Company for the three months ended September 30, 2019, down from HK$4,971,000 in the same period of 2018, a reduction of 43.2%[13]. - The company reported a total comprehensive expense of HK$12,229,000 for the nine months ended September 30, 2019, compared to HK$15,534,000 for the same period in 2018, reflecting a decrease of 21.5%[13]. Expenses - The Group's administrative expenses for the three months ended September 30, 2019, were HK$8,740,000, down from HK$11,354,000 in the previous year[10]. - Research and development expenses for the three months ended September 30, 2019, were HK$2,290,000, compared to HK$2,146,000 in the same period of 2018[10]. - Salaries, wages, and other benefits for the three months ended September 30, 2019, were HK$4,908,000, a slight decrease from HK$5,019,000 in the same period of 2018[58]. - Administrative and other operating expenses decreased to approximately HK$39,257,000 from approximately HK$43,225,000 in 2018, primarily due to reductions in administrative and research and development expenses[79][83]. - The total finance charges for the nine months ended September 30, 2019, were HK$1,864,000, an increase from HK$1,809,000 in the same period of 2018[54]. Taxation - The income tax credit for the three months ended September 30, 2019, was HK$529,000, compared to an expense of HK$700,000 in the same period of 2018[11]. - The deferred tax credit for the nine months ended September 30, 2019, was HK$1,588,000, compared to a deferred tax expense of HK$908,000 in the same period of 2018[63]. - The company did not make any provision for Hong Kong Profits Tax or PRC Enterprise Income Tax due to tax losses carried forward[63][64]. Equity and Shares - The company’s accumulated losses increased to HK$211,547,000 as of September 30, 2019, compared to HK$202,770,000 at the beginning of the year[15]. - The total equity attributable to owners of the Company as of September 30, 2019, was HK$239,569,000, a decrease from HK$248,383,000 at the beginning of the year[15]. - The company issued shares worth HK$32,337,000 during the period, contributing to changes in equity[15]. - The total number of ordinary shares in issue as of September 30, 2019, was 1,272,640,000, unchanged from the previous quarter[71][74]. - The total number of shares issued as of September 30, 2019, was 1,272,640,000[118]. - Mr. Chiu Ngai Hung holds a beneficial ownership of 687,177,955 shares, representing approximately 54.00% of the total shareholding[117]. Business Strategy and Outlook - The Group has adopted a more conservative sales strategy for the Mobile Gaming and Application Business to reduce investment costs amid fierce competition and regulatory challenges[95][96]. - The Money Lending Business has become a main source of income for the Group, achieving a revenue increase of approximately 62.9%[99]. - The company anticipates a continued downward trend in the lending market through the fourth quarter of 2019 due to market competition and the Sino-US trade war[101]. - The company expects Hong Kong's economy to slow down amid ongoing uncertainties, impacting business strategies and cost control measures[102]. - The company will remain cautious in resource allocation while seeking potential investment opportunities to create synergies with existing business segments[103]. Risk Management and Governance - The company has adopted a prudent credit policy to mitigate risks associated with impairment and bad debts in its personal loan portfolio[101]. - The management will continue to review and tighten credit policies to prevent potential losses from bad debts[105]. - The Audit Committee consists of three independent non-executive Directors: Mr. Leung Man Chun, Mr. Fok Kin Fung Eric, and Dr. Lee G. Lam[126]. - The Audit Committee is responsible for reviewing the financial reporting process, risk management, and internal control of the Group[126]. - The Company has not purchased, sold, or redeemed any of its listed securities during the Period[129]. - The Company has adopted a code of conduct regarding securities transactions by directors, with no reported non-compliance during the Period[128]. - The Board comprises two executive Directors, one non-executive Director, and three independent non-executive Directors as of the report date[130]. - The Company reviewed its accounting principles and practices, discussing internal controls and financial reporting matters with the Board[127]. - The Group is capable of conducting its business independently and at arm's length from the interests of the mentioned companies[123]. - No Directors have interests in any competing businesses as per the disclosures[124]. - The Company is listed on the GEM of the Stock Exchange[123]. - The report is dated November 8, 2019, indicating the financial performance for the third quarter of 2019[130].

Aurum Pacific (China) Group Limited 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 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公司帶有較高投資風險。有意投 資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證券承受較大的市場波動風險，同時無法 保證在GEM買賣的證券會有高流通量的市場。 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 ...

Aurum Pacific (China) Group Limited 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 2019 第一季度業績報告 FIRST QUARTERLY REPORT 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 po ...

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