Financial Performance - The company's revenue for the three months ended September 30, 2021, was HKD 1,679,000, a significant decrease of 96.36% compared to HKD 46,054,000 for the same period in 2020[3] - Gross profit for the same period was HKD 362,000, down 97.15% from HKD 12,719,000 year-on-year[3] - The company reported a loss attributable to equity holders of HKD 9,395,000, compared to a loss of HKD 4,635,000 in the previous year, representing a 102.06% increase in losses[5] - The total comprehensive loss for the period was HKD 9,612,000, compared to HKD 3,535,000 in the prior year, indicating a 172.56% increase in comprehensive losses[5] - The company incurred administrative and operating expenses of HKD 13,772,000, which is an increase of 22.36% from HKD 11,250,000 in the same period last year[3] - The financing costs for the period were HKD 4,632,000, slightly down from HKD 4,664,000 in the previous year[3] - The company’s basic loss per share for the period was HKD 0.21, compared to HKD 0.11 for the same period in 2020, reflecting a 90.91% increase in loss per share[5] - The company recorded unaudited consolidated revenue of HKD 1,700,000 for the period, a decrease of 96% compared to HKD 46,100,000 in the previous year[19] - The gross profit margin fell from 28% in the previous year to approximately 22%[19] - The net loss attributable to equity holders increased by 102% to HKD 9,400,000, compared to HKD 4,600,000 in the previous year[19] - Sales and distribution expenses and administrative expenses were HKD 13,900,000, down 12% from HKD 15,800,000 in the previous year[19] - Financing costs decreased by 1% to HKD 4,600,000, compared to HKD 4,700,000 in the previous year[19] Business Segments and Operations - The company’s main business segments include lottery-related services, Internet+ services, manufacturing and distribution of personal protective equipment, and other services[9] - The company continues to provide lottery system maintenance services as part of its diversified business strategy[26] Anti-Counterfeiting Business - The company is actively expanding its anti-counterfeiting business and has established a licensing and service agreement for anti-counterfeiting solutions[20] - The company signed commercial contracts with users in three industries, including tea, natural foods, and beauty e-commerce platforms[22] - The average number of innovative anti-counterfeiting products contracted by the company was approximately 17 million per year, indicating good market progress[22] - The innovative anti-counterfeiting products have been successfully commercialized across seven industries, including tea, natural foods, and health supplements, with a cumulative annual average of over 20 million contracts signed as of the report date, up from approximately 17 million during the review period[25][29] - The innovative anti-counterfeiting products are designed to enhance corporate social responsibility by protecting consumer rights and contributing to social welfare and sports development, thereby supporting brand sustainability and industry growth[27] - The management is focused on expanding the anti-counterfeiting business and has established a broad customer base, with signed user coverage extending to five provinces: Gansu, Zhejiang, Qinghai, Shanghai, and Yunnan[29] - The company aims to deepen market penetration in existing industries and explore new opportunities, leveraging its experience with various industry clients to solidify its market position[25][29] - The management believes that the market potential for the innovative anti-counterfeiting products is substantial and expects significant contributions to the group's revenue in the short term[29] Shareholder and Stock Option Information - As of September 30, 2021, the major shareholders include Guoyao Pharmaceutical Overseas Holdings Limited with 650,000,000 shares (14.76%) and Frontend and its concert parties with 640,596,856 shares (14.55%) [37] - Integrated Asset Management (Asia) Limited holds 526,283,000 shares, representing 11.95% of the total shares [37] - The company granted 4,000,000 stock options to Ms. Zhang on January 7, 2020, under the stock option plan adopted on January 31, 2013 [37] - The convertible bonds issued to Integrated Asset have a total amount of HKD 89,625,000 with an 8% interest rate, convertible into a maximum of 249,651,810 shares at an adjusted conversion price of HKD 0.359 per share [40] - The conversion price of the convertible bonds was revised to HKD 0.221 per share, allowing for conversion into a maximum of 405,542,986 shares [43] - The new stock option plan adopted on June 9, 2021, aims to incentivize qualified individuals for their contributions to the company [47] - The old stock option plan was terminated on June 9, 2021, after being in effect for ten years [45] - The company has received written consent from Integrated Asset for multiple extensions of the convertible bonds' maturity dates [41] - The company’s stock option plans are designed to align the interests of qualified individuals with those of shareholders [47] - As of September 30, 2021, no other individuals were reported to have disclosed interests or short positions in the company's shares [44] - The total number of stock options granted under the old stock option plan as of September 30, 2021, is 179,750,000[49] - A total of 63,000,000 stock options were granted under the new stock option plan as of September 30, 2021[52] - The exercise price for the stock options granted is HKD 0.25[52] - The total number of stock options exercised under the old plan is 66,550,000[49] - The total number of stock options exercised under the new plan is 14,000,000[52] - The total number of stock options that have been canceled or lapsed is not specified in the documents[49][52] - The company continues to expand its stock option plans to incentivize employees and other eligible participants[50] Corporate Governance - The company has adopted and complied with the GEM Listing Rules Appendix 15 corporate governance code, with no significant deviations reported for the three months ended September 30, 2021[57] - The company has established an audit committee consisting of three independent non-executive directors, responsible for reviewing financial reports and providing recommendations to the board[61] - The audit committee reviewed the unaudited results for the three months ended September 30, 2021, and confirmed compliance with applicable accounting standards and regulations[61] Dividend Policy - The company has not recommended the payment of dividends for the three months ending September 30, 2021, consistent with the previous year[30]

Business Growth and Strategy - The company reported a positive signal for its growing business in the new anti-counterfeiting product market amid the recovering consumer demand in China[9]. - The company has signed commercial contracts with enterprise users in three industries, including tea, natural foods, and beauty e-commerce platforms, indicating a diversified brand strategy for the upcoming year[11]. - The innovative anti-counterfeiting products are expected to contribute to national welfare and sports lottery public funds with each sale, enhancing corporate social responsibility[11]. - The company aims to expand its anti-counterfeiting business across regions and strengthen its marketing capabilities to capture market share[25]. - The anti-counterfeiting products are applicable across various industries, including agricultural products, cosmetics, and pharmaceuticals, enhancing market penetration[17]. - The company has signed commercial agreements with multiple industry users for its innovative anti-counterfeiting products, indicating significant growth potential in the future[16]. Financial Performance - The company recorded revenue of HKD 77.8 million for the year ended June 30, 2021, a decrease of 53% compared to HKD 165.9 million in the same period of 2020[26]. - Gross profit for the same period was HKD 20.9 million, down 53% from HKD 44.7 million in 2020, primarily due to changes in the e-commerce ecosystem and the non-renewal of service contracts[26]. - The loss attributable to equity holders was HKD 106.3 million, a 34% decrease from HKD 161.1 million in 2020, mainly due to lower impairment losses on goodwill[26]. - Lottery-related services generated revenue of HKD 1.9 million, a 62% decrease from HKD 5 million in the previous fiscal year, with a gross profit margin of 8% compared to 24% in the prior year[28]. - The "Internet+" service business saw a total revenue decrease of 90%, with solution services recording zero revenue and supply chain services generating HKD 12.4 million[28]. - Personal protective equipment (PPE) revenue increased by 97% to HKD 63.4 million, with a gross profit margin of 21%, down from 49% in the previous year[29]. Management and Corporate Governance - The management team has made strategic adjustments, appointing experienced executives to enhance the anti-counterfeiting business model[20]. - The board of directors is committed to maintaining high levels of corporate governance and emphasizes the importance of a high-quality board composition and effective accountability systems[69]. - The company has adopted and complied with the GEM Listing Rules Appendix 15 corporate governance code, with certain deviations noted[70]. - The company has a diverse board composition, including executive, non-executive, and independent non-executive directors, with recent appointments and changes noted[75]. - The company has established a code of conduct for securities trading by directors, ensuring compliance with the GEM Listing Rules[73]. - The company emphasizes shareholder interests and aims to create returns for shareholders through effective management and strategic oversight[76]. Shareholder and Equity Information - The company issued a total of 55,652,174 additional shares at an issue price of HKD 0.23 per share and 58,606,927 loan capitalization shares at HKD 0.26 per share during the reporting period[37]. - The company has no significant future investment or capital asset plans at this time, but will continue to monitor industry conditions[52]. - The company has a total of 632,920,856 shares held by Frontend, with significant ownership by Ms. Zhang and Mr. Chen[193]. - The total shareholding percentage of major shareholders indicates a concentrated ownership structure, with the top three shareholders holding approximately 41.26% of the company[191]. - The company has a profit guarantee of at least HKD 23 million for each of the fiscal years ending December 31, 2019, 2020, and 2021, or a total of at least HKD 69 million for the three years combined[166]. Convertible Bonds and Financing - The company extended the maturity date of the convertible bonds multiple times, with the latest extension to January 17, 2022, and the interest rate increased to 10% per annum[43]. - The conversion price of the convertible bonds was revised from HKD 0.34 to HKD 0.221, allowing for the conversion into a maximum of 405,542,986 shares[43]. - The company has issued convertible bonds with a total value of HKD 89,625,000 at an 8% interest rate, which can be converted into shares at a price of HKD 0.359 per share[193]. - The total number of shares to be issued upon full conversion of the convertible bonds has been adjusted to a maximum of 263,602,941 shares at a conversion price of HKD 0.34 per share[194]. - The company has received written consent from bondholders for multiple extensions of the convertible bonds, indicating ongoing support from investors[41]. Employee and Management Compensation - The group employed 73 staff in Hong Kong and China, a decrease from 213 in 2020[53]. - Total employee costs for the review year were approximately HKD 22 million, down from HKD 23 million in 2020[53]. - Employee compensation is determined based on performance, qualifications, experience, position, and current trends[53]. - The remuneration committee consists of four members, with independent non-executive directors holding the majority[93]. - For the fiscal year ending June 30, 2021, the annual remuneration of senior management members was categorized as follows: 1 member in the range of HKD 3,000,001 to HKD 3,500,000, 3 members in the range of HKD 1,000,001 to HKD 1,500,000, and 1 member in the range of HKD 500,001 to HKD 1,000,000, totaling 5 members[94]. Risks and Challenges - The company faced significant risks including trends and regulations in the lottery industry, which could adversely affect operations and financial performance[119]. - The company’s major risks include potential increases in costs due to materials and labor, which could impact profit margins on personal protective equipment products[119]. - The company has developed its "Internet+" services to expand business opportunities, although performance is significantly influenced by industry trends[119]. Acquisition and Related Transactions - The company agreed to acquire 25% equity in a target company for HKD 200 million, with payment linked to the target company's financial performance over the next three years[46]. - The acquisition price will be settled through the issuance of shares, avoiding cash outflow for the company[47]. - The company has a conditional agreement to acquire 25% of the target company's issued share capital, which is contingent upon the completion of the restructuring of the Shenzhen company[152]. - The management service agreement with Guoyao Pharmaceutical requires an annual service fee of RMB 28 million, increasing by 5% each year during its three-year term[145]. - The company’s independent non-executive directors confirmed that the ongoing related party transactions are conducted on normal commercial terms and are fair and reasonable[147].

Sinopharm Tech Holdings Limited 國藥科技股份有限公司 (於開曼群島註冊成立之有限公司) (股份代號: 8156) 報 告 REPORT 第三季度業績 2020/2021 2020/2021 THIRD QUARTERLY Sinopharm Tech Holdings Limited 國藥科技股份有限公司 (Incorporated in the Cayman Islands with limited liability) (Stock Code: 8156) ANNUAL REPORT 2020 年報 香港聯合交易所有限公司（「聯交所」）GEM（「GEM」）之特色 GEM之定位，乃為相比起其他在聯交所上市之公司帶有較高投資風險之中小型公司提 供一個上市的市場。有意投資之人士應了解投資於該等公司之潛在風險，並應經過審 慎周詳之考慮後方作出投資決定。 由於GEM上市公司一般為中小型公司，在GEM買賣之證券可能會較於聯交所主板買賣 之證券承受較大之市場波動風險，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 ...

Financial Performance - For the six months ended December 31, 2020, the company's revenue was HKD 55,200,000, a decrease of 36.7% compared to HKD 87,380,000 for the same period in 2019[2] - The gross profit for the six months was HKD 19,552,000, down 13.5% from HKD 22,712,000 in the previous year[2] - The operating loss for the six months was HKD 4,612,000, an improvement from a loss of HKD 9,890,000 in the same period of 2019[2] - The net loss attributable to equity holders for the six months was HKD 14,140,000, compared to HKD 17,235,000 in the previous year, reflecting a 18.1% reduction[2] - The total comprehensive loss for the six months was HKD 14,383,000, down from HKD 18,226,000 in the same period of 2019[3] - The basic loss per share for the six months was HKD 0.33, compared to HKD 0.42 for the same period in 2019[3] - The company reported a net loss of HKD 14,140,000 for the six months ended December 31, 2020, compared to a net loss of HKD 17,235,000 for the same period in 2019, representing a 18.3% improvement in losses year-over-year[6] - The company reported a loss before tax of HKD 14,627,000 for the six months ended December 31, 2020, compared to a loss of HKD 17,121,000 for the same period in 2019[17] Assets and Liabilities - Non-current assets increased to HKD 126,831,000 as of December 31, 2020, compared to HKD 126,071,000 as of June 30, 2020[4] - Current assets rose to HKD 79,122,000 from HKD 62,102,000, indicating a 27.4% increase[4] - Current liabilities increased to HKD 281,977,000 from HKD 253,798,000, reflecting an increase of 11.1%[5] - The company's total liabilities net of current liabilities stood at HKD (76,024,000) as of December 31, 2020, compared to HKD (65,625,000) as of June 30, 2020[4] - The total assets as of December 31, 2020, amounted to HKD 205,953,000, an increase from HKD 188,173,000 as of June 30, 2020[12] - The total liabilities as of December 31, 2020, were HKD 289,575,000, compared to HKD 261,558,000 as of June 30, 2020[12] - The asset-liability ratio was 57% as of December 31, 2020, compared to 55% as of June 30, 2020[44] Cash Flow and Expenditures - Cash used in operating activities was HKD 5,692,000 for the six months ended December 31, 2020, a decrease from HKD 9,141,000 in the prior year, indicating a 37.5% reduction in cash outflow[7] - The company incurred capital expenditures of HKD 4,747,000 for property, plant, and equipment during the reporting period, compared to HKD 560,000 in the previous year, reflecting a significant increase in investment[7] - The net cash flow from financing activities was HKD 6,767,000 for the six months ended December 31, 2020, compared to HKD 9,722,000 in the prior year, showing a decrease of 30.5%[7] - As of December 31, 2020, cash and cash equivalents decreased to HKD 2,673,000 from HKD 6,709,000 at the end of the previous year, representing a decline of 60.2%[7] Shareholder Equity and Dividends - The company's total equity attributable to shareholders decreased to HKD 83,622,000 as of December 31, 2020, down from HKD 22,379,000 a year earlier, indicating a significant decline in shareholder equity[6] - The board of directors did not recommend a dividend for the six months ending December 31, 2020[43] Employee Compensation and Expenses - The company’s employee compensation for the six months ended December 31, 2020, was HKD 5,369,000, a decrease from HKD 17,625,000 in the same period of 2019[32] - The company reduced its selling and distribution expenses and administrative expenses to HKD 30,100,000, down 9% from HKD 33,100,000 in 2019[36] Convertible Bonds and Financing - The company’s convertible bonds had a liability portion of HKD 93,930,000 as of December 31, 2020, compared to HKD 89,170,000 as of June 30, 2020[25] - The company extended the maturity date of convertible bonds to January 17, 2022, with an adjusted conversion price of HKD 0.221 per share[34] - The principal amount of the convertible bonds is HKD 89,625,000, with an annual interest rate of 10% after the latest amendment[34] - The company agreed to amend the terms of the convertible bonds, including an increase in the interest rate to 10% per annum, with interest payable annually[51] - The company has received written consent from bondholders for the latest amendments to the convertible bonds, which were approved at a special general meeting[50] Trade Receivables and Payables - Trade receivables increased to HKD 108,295,000 as of December 31, 2020, up from HKD 93,027,000 as of June 30, 2020, indicating a 16.4% increase[23] - The aging analysis of trade receivables showed that HKD 89,402,000 (82.5%) was overdue for more than one year as of December 31, 2020[23] - Trade payables rose to HKD 35,560,000 as of December 31, 2020, compared to HKD 33,607,000 as of June 30, 2020, reflecting a 5.8% increase[24] - The company has a total of HKD 122,070,000 in trade payables and accrued expenses as of December 31, 2020, up from HKD 102,915,000 as of June 30, 2020, marking an increase of 18.6%[24] Government Grants and Revenue Segments - The company recognized government grants of HKD 1,450,000 during the six months ended December 31, 2020, compared to HKD 463,000 in the same period in 2019[15] - The revenue from personal protective equipment manufacturing and distribution was HKD 29,956,000 for the six months ended December 31, 2020, with no revenue reported for the same period in 2019[15] - Lottery-related services generated revenue of HKD 2,500,000, a 106% increase compared to the same period in 2019[37] - The manufacturing and distribution of personal protective equipment recorded revenue of HKD 30,000,000 with a gross profit of HKD 13,400,000, resulting in a gross profit margin of 45%[37] Corporate Governance and Compliance - The company has established an Audit Committee consisting of three independent non-executive directors, responsible for reviewing financial reports and providing recommendations to the board[79] - The Audit Committee has reviewed the unaudited results for the six months ended December 31, 2020, and confirmed compliance with applicable accounting standards and regulations[79] - The company has complied with the GEM Listing Rules Appendix 15, except for certain deviations regarding the term of non-executive directors, who are not subject to a fixed term but must retire and seek re-election at least every three years[77] Management Changes - Zhang Guilan has been appointed as the Honorary Chairman and transitioned from Executive Director to Non-Executive Director, effective January 7, 2021, with an annual director's fee of HKD 240,000[76] - Chen Ting has been appointed as the Chairman and the Chairman of the Nomination Committee, effective January 7, 2021, with an annual salary and allowances of HKD 3,000,000 and a director's fee of HKD 240,000[76]

Financial Performance - The company's revenue for the three months ended September 30, 2020, was HKD 46,054,000, a decrease of 9.8% compared to HKD 50,549,000 for the same period in 2019[3] - Gross profit for the same period was HKD 12,719,000, down from HKD 13,653,000, reflecting a decline in gross margin[3] - The operating profit for the quarter was HKD 169,000, compared to an operating loss of HKD 287,000 in the previous year[3] - The company reported a loss attributable to equity holders of HKD 4,635,000, slightly higher than the loss of HKD 4,130,000 in the prior year[3] - The total comprehensive loss for the period was HKD 3,535,000, an improvement from HKD 5,793,000 in the same quarter of 2019[4] - Revenue from the "Internet+" services (supply chain) was HKD 17,094,000, significantly down from HKD 40,086,000 in the previous year[8] - Revenue from the manufacturing and distribution of personal protective equipment was HKD 28,137,000, which was not reported in the previous year[8] - The company incurred financing costs of HKD 4,664,000, an increase from HKD 3,558,000 in the prior year[3] - The company reported unaudited consolidated revenue of HKD 46,100,000 for the three months ended September 30, 2020, a decrease of 9% compared to HKD 50,500,000 for the same period in 2019[16] - The gross profit margin increased from 27% in 2019 to approximately 28% in 2020[16] - The net loss attributable to equity holders was HKD 4,600,000, up 12% from HKD 4,100,000 in the previous year[16] - Sales and distribution expenses, along with administrative expenses, rose to HKD 15,800,000, an increase of 8% from HKD 14,600,000 in 2019[16] - Financing costs increased by 31% to HKD 4,700,000, compared to HKD 3,600,000 in 2019, due to the estimated financing costs related to convertible bonds[16] Business Operations - The personal protective equipment (PPE) manufacturing business has matured and contributed significantly to the company's revenue during the review period[17] - The company collaborated with Beijing Caiyan Technology Co., Ltd. to develop an anti-counterfeiting solution, which has received two patent certifications[17] - The company has established and trained a production management team, leading to significant improvements in management practices, production technology, quality control, and process optimization[18] - The overall production system has effectively balanced efficiency and quality while complying with ISO 13485 standards for medical device quality management[18] - The company has supplied over 14 million masks to the Hong Kong government under the local mask production subsidy program[10] - High-quality meltblown fabric used in mask production has a bacterial filtration efficiency (BFE) and particulate filtration efficiency (PFE) of up to 99%[10] - The company is actively exploring partnerships in the personal protective equipment (PPE) manufacturing sector to enhance its business structure[20] Strategic Initiatives - A strategic cooperation framework agreement was signed with Caiyan Technology to launch an anti-counterfeiting solution combining "Internet+" technology with traditional lottery elements[21] - The company has obtained authorization for two anti-counterfeiting patent technologies, enabling market promotion and application in customer products[22] - The anti-counterfeiting solution aims to meet the high demand for anti-counterfeiting in industries such as tobacco, pharmaceuticals, and alcohol[23] - The company expects to generate revenue from providing patent device applications and lottery sales commissions[24] - The company plans to accelerate the implementation of the anti-counterfeiting solution across various provinces in mainland China[25] - The company will continue to develop new products, including medical protective masks, to solidify its market share[25] Shareholder Information - The board of directors does not recommend the payment of dividends for the three months ending September 30, 2020[26] - As of September 30, 2020, the major shareholders include Guoyao Pharmaceutical Overseas Holdings Limited with 650,000,000 shares (15.15%) and Frontend and its concert parties with 640,596,856 shares (14.93%) [31] - Integrated Asset Management (Asia) Limited holds 461,733,000 shares, representing 10.76% of the total shares [31] - Mr. Xie Shaohai is a beneficial owner of 310,650,000 shares, accounting for 7.24% [31] - The company has granted stock options under its stock option plan adopted on January 31, 2013, with 4,000,000 and 3,600,000 options granted to Ms. Zhang and Mr. Chen respectively on January 7, 2020 [30] - The convertible bonds issued to Integrated Asset have a total value of HKD 89,625,000 with an 8% interest rate, convertible into a maximum of 249,651,810 shares at an adjusted conversion price of HKD 0.359 per share [32] - The maturity date of the convertible bonds has been extended multiple times, with the latest extension to January 17, 2021 [34] - The company has not engaged in any arrangements that would allow directors or key executives to benefit from purchasing shares or bonds of the company during the reporting period [29] - The stock option plan is valid for ten years from its adoption date, allowing the board to invite eligible persons to accept options to subscribe for shares [35] - As of September 30, 2020, there are no known interests or short positions in the company's shares or related shares held by any persons other than directors or key executives [34] - The company has a total of 632,920,856 shares held by Frontend, with Ms. Zhang and Mr. Chen owning 99.89% and 0.11% of those shares respectively [30] - The company did not purchase, sell, or redeem any shares during the three months ended September 30, 2020[38] - As of September 30, 2020, there were no direct or indirect interests held by directors, major shareholders, or their close associates in any business that competes or may compete with the company's business[39] - The total number of share options granted under the share option scheme amounted to 183,600,000, with 183,400,000 remaining as of September 30, 2020[36] - The total number of share options exercised was zero, with 66,600,000 options remaining after accounting for cancellations[36] - The company has a total of 90,800,000 options granted to other eligible participants, with no options exercised during the reporting period[36] Corporate Governance - The company has adopted the GEM Listing Rules as its code of conduct for securities transactions by directors, confirming compliance during the three months ended September 30, 2020[42] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited results for the three months ended September 30, 2020, and found them to comply with applicable accounting standards[43] - The company has no provisions in its articles of association or Cayman Islands law regarding pre-emptive rights for existing shareholders to subscribe for new shares[40] - The company has implemented corporate governance practices in accordance with the GEM Listing Rules, with certain deviations noted[41] - The board of directors consists of both executive and independent non-executive members, ensuring a balanced governance structure[44]

Business Operations and Growth - The company successfully captured the demand for personal protective equipment (PPE) during the COVID-19 pandemic, achieving high production capacity and entering mass production[7]. - Collaboration with Zhuhai Huafa Group significantly expanded the company's business network in the healthcare supply chain, enhancing production capabilities through equipment design and improvement[8]. - The company has been supplying masks to Hong Kong government agencies through the "Local Mask Production Subsidy Scheme," contributing to pandemic response efforts[8]. - The company has partnered with Hong Kong's Vocational Training Council to offer training courses related to PPE manufacturing, sharing its expertise with the community[8]. - The company reported a significant increase in production capacity, overcoming challenges in a rapidly evolving market environment[7]. - The company has actively expanded its medical business network and established a self-built production system for medical products[15]. - The company has established joint ventures in Shandong and Jilin provinces to support mask production and supply chain flexibility[15]. - The company aims to leverage its established business network to pursue large-scale production and increase market share in the PPE sector[22]. - The company has built eight clean production workshops and over twenty mask production lines in mainland China and Hong Kong, achieving economies of scale[17]. - The company established a production system for medical supplies, achieving large-scale production of masks within a few months, generating revenue of HKD 128.8 million from "Internet + supply chain" services[14]. Financial Performance - The company recorded revenue of HKD 165.9 million for the year ended June 30, 2020, an increase of 281% compared to HKD 43.5 million in the same period of 2019[26]. - Gross profit for the same period was HKD 44.7 million, up 88% from HKD 23.7 million in 2019[26]. - The company reported a loss attributable to equity holders of HKD 161.1 million, a 244% increase from a loss of HKD 46.8 million in 2019[26]. - The personal protective equipment (PPE) segment generated revenue of HKD 32.1 million with a gross profit of HKD 15.9 million and a gross margin of 49%[27]. - The "Internet+" service segment recorded revenue of HKD 128.8 million, an increase of over 8.6 times compared to the previous fiscal year[27]. - The group reported a net loss of approximately HKD 163,990,000 for the year ending June 30, 2020[177]. - The company reported a loss before tax of HKD 165,380,000, which is a substantial increase from a loss of HKD 47,938,000 in the prior year[195]. - Total comprehensive loss for the year was HKD 164,537,000, compared to HKD 43,496,000 in 2019, reflecting a worsening financial position[196]. - Basic loss per share for the year was HKD (3.91), compared to HKD (1.35) in the previous year, indicating increased losses per share[196]. - The company recognized an impairment loss of HKD 133,058,000 for the year, compared to HKD 67,930,000 in the previous year, indicating increased asset impairment concerns[195]. Strategic Initiatives - The company plans to launch an anti-counterfeiting solution that combines anti-counterfeiting technology with marketing strategies, targeting high-value products prone to counterfeiting[9]. - The business model will integrate PPE manufacturing with "Internet + Lottery" strategies, aiming to enhance overall industry quality and tap into the potential of the Chinese anti-counterfeiting market[10]. - The company anticipates that the PPE manufacturing sector will provide long-term cash flow growth opportunities, while the anti-counterfeiting solution is expected to disrupt traditional market approaches and drive explosive growth[10]. - The company has signed a strategic cooperation framework agreement with Beijing Caiyan Technology Co., Ltd. to enhance anti-counterfeiting solutions in the market[21]. - The company has received patent rights for its anti-counterfeiting packaging devices, indicating readiness for market application[24]. - The company is focused on developing a large-scale technology application R&D and marketing team to support its anti-counterfeiting business[24]. Corporate Governance - The company emphasizes high standards of corporate governance to protect shareholder interests and enhance business growth[61]. - The board of directors is committed to reviewing the company's financial performance and approving strategic plans, major investments, and risk management policies[67]. - The company has adopted the GEM Listing Rules and is committed to compliance with corporate governance codes, with regular reviews and updates[62]. - All independent non-executive directors have confirmed their independence according to GEM Listing Rules, ensuring unbiased oversight[68]. - The company provides regular updates to directors on business developments and encourages participation in professional development activities[71]. - The company has a structured approach to governance, with specific committees overseeing various aspects of operations[76]. - The company has adopted a board diversity policy, emphasizing the importance of diverse board member backgrounds, including gender, age, culture, education, and professional experience[82]. Environmental Impact - The company has implemented policies to minimize its environmental impact, ensuring compliance with environmental laws in Hong Kong and China[165]. - The company aims to reduce greenhouse gas emissions and waste generation through energy efficiency measures and responsible waste management policies[157]. - The company is committed to regular assessments of its environmental policies to mitigate pollution and resource consumption[160]. - As of June 30, 2020, nitrogen oxides emissions were 7,358.40 grams, an increase of 1.93% from 7,219.68 grams in 2019[156]. - Sulfur oxides emissions reached 161.97 grams, up from 157.07 grams in the previous year, reflecting a 3.66% increase[156]. - Total carbon dioxide emissions from vehicle fuel combustion were 26,003.61 kilograms, a rise of 3.11% from 25,217.05 kilograms in 2019[158]. - Indirect carbon dioxide emissions from electricity consumption amounted to approximately 351,530.31 kilograms, significantly higher than 31,404.84 kilograms in 2019[158]. - The company produced 3 tons of non-hazardous waste due to the disposal of substandard masks, with a waste density of 0.6 tons per production line[160]. Shareholder Relations and Capital Management - The company expressed gratitude to shareholders for their continued support during a challenging year[11]. - The total issued share capital as of June 30, 2020, was 4,289,724,633 shares[34]. - The company issued 180,869,565 shares at a price of HKD 0.23 per share on June 11, 2020[34]. - The company has extended the maturity date of its convertible bonds multiple times, with the latest extension to January 17, 2021[38]. - The company plans to issue up to 200,000,000 warrants at a price of HKD 0.04 each, potentially raising an additional HKD 70,000,000 if exercised[120]. - The net proceeds from the warrant issuance are expected to be approximately HKD 77,800,000, allocated for general working capital, debt repayment, and future investments[121]. - A subscription agreement was signed for the issuance of 800,000,000 new shares at HKD 0.20 each, with total proceeds estimated at HKD 160,000,000[124]. - The subscription shares represent approximately 15.72% of the enlarged issued share capital post-transaction completion[126]. Employee and Community Engagement - The group emphasizes employee development through on-the-job training and encourages participation in external training relevant to job responsibilities[169]. - The group has a zero-tolerance policy towards workplace sexual harassment, ensuring employee safety and compliance with labor laws[168]. - The group encourages community investment through donations, sponsorships, and charitable work to meet community needs[174].

Financial Performance - The company's revenue for the three months ended March 31, 2020, was HKD 11,172,000, an increase of 21.6% compared to HKD 9,183,000 for the same period in 2019[2] - For the nine months ended March 31, 2020, the revenue reached HKD 98,552,000, a significant increase of 357.5% from HKD 21,558,000 in the previous year[2] - The gross profit for the three months ended March 31, 2020, was HKD 340,000, a decrease of 95.8% from HKD 8,035,000 in the same period of 2019[2] - The operating loss for the nine months ended March 31, 2020, was HKD 22,654,000, a reduction of 11.7% compared to HKD 25,656,000 for the same period in 2019[2] - The net loss attributable to equity holders for the three months ended March 31, 2020, was HKD 15,134,000, compared to HKD 10,801,000 in the same period of 2019, representing a 39.5% increase in loss[3] - The total comprehensive loss for the nine months ended March 31, 2020, was HKD 35,247,000, compared to HKD 32,361,000 in the previous year, indicating a 5.8% increase in loss[3] - For the nine months ended March 31, 2020, the company reported a loss attributable to equity holders of HKD 32,369,000, compared to a loss of HKD 29,707,000 for the same period in 2019, representing an increase of 8.8% in losses[10] - The total comprehensive loss for the nine months ended March 31, 2020, was HKD 33,189,000, compared to a total comprehensive loss of HKD 29,719,000 for the same period in 2019, indicating a 11.7% increase in comprehensive losses[13] Revenue Sources - The company reported a significant increase in revenue from internet-related services, with HKD 15,375,000 for the nine months ended March 31, 2020, compared to HKD 1,582,000 in the previous year[6] - The cost of sales for the nine months ended March 31, 2020, was HKD 75,500,000, compared to HKD 5,604,000 in the same period of 2019, reflecting a substantial increase in operational costs[2] Taxation and Accounting - The company recognized a total income tax expense of HKD 542,000 for the three months ended March 31, 2020, compared to an income tax expense of HKD 88,000 for the same period in 2019[4] - The deferred tax credit for the nine months ended March 31, 2020, was HKD 1,232,000, down from HKD 1,751,000 for the same period in 2019, reflecting a decrease of 29.6%[4] - The company’s Hong Kong profits tax rate is set at 8.25% for the first HKD 2 million of profits and 16.5% for profits exceeding that threshold, which is a change from the previous year where the rate was zero[4] - The company has not adopted any new accounting standards that would significantly impact its financial reporting for the current period[5] Shareholder Information - As of March 31, 2020, the company’s major shareholders include Zhang Guilan and Chen Tongmei, each holding approximately 15.77% of the total shares[26] - As of March 31, 2020, major shareholders include Guoyao Pharmaceutical Overseas Holdings Limited with 650,000,000 shares (15.82%) and Frontend and its concert parties with 640,596,856 shares (15.59%)[31] - Integrated Asset Management (Asia) Limited holds 461,733,000 shares (11.24%) and Mr. Xie Shaohai holds 310,650,000 shares (7.56%)[31] Stock Options and Convertible Bonds - The company has issued convertible bonds to Integrated Asset with a total amount of HKD 89,625,000 at an 8% interest rate, convertible into a maximum of 249,651,810 shares at a conversion price of HKD 0.359 per share[31] - The stock option plan adopted on January 31, 2013, allows the board to invite eligible participants to subscribe for shares, valid for ten years[34] - As of March 31, 2020, a total of 22,400,000 stock options have been granted under the stock option plan, with an exercise price of HKD 0.33[35] - The total number of stock options granted as of March 31, 2020, is 183,600,000[36] - The stock options granted to various participants include 1,200,000 options for Ms. Zhang and 1,080,000 options for Mr. Chen, among others[35] Business Operations and Strategic Initiatives - The company continues to focus on its core business areas, including lottery-related services and internet solutions, to drive future growth[6] - The company assisted in procuring over 8 million disposable medical masks and 79,000 protective suits within a month during the initial outbreak of COVID-19[17] - A strategic partnership was established with Zhuhai Huafa Group for the procurement and supply of medical materials, enhancing operational efficiency[18] - The company invested in two joint ventures in different provinces in mainland China, successfully launching operations and improving production efficiency[19] - The first mask factory in New Territories has been established, with three fully automated production lines installed and operational[21] - The company plans to supply medical masks to government agencies, reducing reliance on overseas medical supplies and enhancing brand value[22] - The company has received government approval for local mask production funding, supporting its commitment to meet local demand[22] - The company is actively pursuing a strategic partnership with Zhuhai Huafa to develop a comprehensive health industry chain, focusing on areas such as medical mask production and technology support[23] - The second mask factory's first phase has been completed, and equipment is currently in trial production, while the third factory's cleanroom has been completed and is undergoing equipment debugging[23] - A three-year strategic cooperation has been established with Tencent Holdings to enhance the sales channels for medical supplies and improve the company's strategic business network[24] - The company aims to expand its production and sales of medical protective materials, leveraging its background to connect the mainland and Hong Kong markets efficiently[24] - The company has made significant progress in the preparation and construction of its second and third mask factories, indicating ambitious growth plans[23] Governance and Compliance - The board of directors does not recommend the payment of dividends for the nine months ending March 31, 2020, consistent with the previous year[25] - The company has not engaged in any arrangements that would allow directors or executives to benefit from purchasing its shares or bonds during the reporting period[29] - As of March 31, 2020, there are no direct or indirect business interests held by directors, major shareholders, or their close associates that compete or may compete with the company's business[38] - The company has adopted and complied with the applicable code provisions of the GEM Listing Rules, with certain deviations noted[40] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited results for the nine months ended March 31, 2020, and confirmed compliance with applicable accounting standards[43]

Financial Performance - For the six months ended December 31, 2019, the company reported revenue of HKD 87,380,000, a significant increase from HKD 12,375,000 in the same period of 2018, representing a growth of 605%[2] - The gross profit for the six months was HKD 22,712,000, compared to HKD 7,919,000 in the previous year, indicating a growth of 187%[2] - The operating loss for the six months was HKD 9,890,000, an improvement from a loss of HKD 15,329,000 in the same period of 2018, showing a reduction of 35%[2] - The net loss attributable to equity holders for the six months was HKD 17,235,000, compared to HKD 18,906,000 in the previous year, reflecting a decrease of 9%[2] - The total comprehensive loss for the six months was HKD 18,226,000, down from HKD 20,246,000 in the same period of 2018, a reduction of 10%[3] - The company reported a basic loss per share of HKD 0.42 for the six months ended December 31, 2019, compared to HKD 0.57 in the same period of 2018[3] - The company reported a pre-tax loss of HKD 21,000,000 for the six months ended December 31, 2019, compared to a loss of HKD 20,028,000 for the same period in 2018[16] - The net loss attributable to equity holders for the period was HKD 17,200,000, a 9% decrease from HKD 18,900,000 in the previous year[40] Assets and Liabilities - As of December 31, 2019, the company's total assets amounted to HKD 43,721,000, an increase from HKD 41,290,000 as of June 30, 2019[4] - The company's current liabilities were HKD 205,138,000, compared to HKD 189,376,000 in the previous period, indicating an increase of 8%[5] - The net assets attributable to equity holders decreased to HKD 23,900,000 from HKD 37,736,000, a decline of 37%[5] - The company’s total equity attributable to shareholders decreased to HKD 22,379,000 from HKD 37,239,000 at the beginning of the period[6] - Total assets as of December 31, 2019, amounted to HKD 227,892,000, with classified assets contributing HKD 213,362,000[13] - Total liabilities as of December 31, 2019, were HKD 205,513,000, with classified liabilities at HKD 62,363,000[13] - The company’s total liabilities increased, reflecting a rise in financing lease obligations and other debts[6] Cash Flow and Financing - The company’s cash and cash equivalents stood at HKD 6,709,000, slightly up from HKD 6,646,000 as of June 30, 2019[4] - The net cash used in operating activities was HKD 9,141,000, an improvement from HKD 11,952,000 in the previous year[7] - The company’s financing activities generated a net cash inflow of HKD 9,722,000, primarily due to an increase in other loans amounting to HKD 19,500,000[7] - The company incurred financing costs of HKD 7,231,000 for the six months ended December 31, 2019, compared to HKD 5,671,000 in the same period of 2018[14] - The company’s operating cash flow included interest paid of HKD 5,078,000, which increased from HKD 3,590,000 in the previous year[7] Shareholder and Capital Structure - The company plans to issue up to 200,000,000 warrants, potentially raising approximately HKD 77,800,000 for general working capital, debt repayment, and future investments[36] - The company aims to broaden and strengthen its shareholder and capital base through the issuance of warrants, which can be transferred to non-affiliated persons[66] - Major shareholders include Guoyao Pharmaceutical Overseas Holdings Limited with 650,000,000 shares (15.82%) and Frontend Investments Limited with 640,596,856 shares (15.59%)[72] - Integrated Asset Management (Asia) Limited holds 461,733,000 shares, representing 11.24% of the company[72] - The company plans to issue up to 263,602,941 shares to Integrated Asset after the full conversion of convertible bonds, increasing Integrated Asset's stake to approximately 17.65% of the existing issued share capital[74] Strategic Initiatives - The company is focusing on expanding its "Internet+" business, particularly in the areas of "Internet+ Lottery" and "Internet+ Health," to enhance its commercial network[41] - The company has established a strategic cooperation with Beijing Caiyan Technology Co., aiming to integrate anti-counterfeiting technology with lottery elements, leveraging blockchain for a verification platform[42] - The strategic partnership with Li & Fung Supermarket aims to enhance online and offline smart retail operations, utilizing the company's supply chain management and marketing technology[44] - The company is actively pursuing opportunities in the "Internet + service" sector, seeking to expand its supply chain management system with reputable suppliers[49] - The company has entered into a share transfer agreement to acquire 40% of Yongyan Holdings Limited, with a guaranteed profit of at least HKD 13 million for the fiscal years ending December 31, 2020, and December 31, 2021[46] Governance and Compliance - The company has complied with the GEM Listing Rules Appendix 15 Corporate Governance Code, with the exception of certain deviations regarding the term of non-executive directors[87] - The audit committee consists of three independent non-executive directors, with Mr. Liu Fei serving as the chairman, responsible for reviewing the company's annual and interim reports[89] - The audit committee reviewed the unaudited results for the six months ended December 31, 2019, and confirmed compliance with applicable accounting standards and regulations[89] - The company has adopted the GEM Listing Rules regarding the code of conduct for securities transactions by directors, confirming compliance throughout the review period[88] Employment and Compensation - Compensation for directors and key management personnel for the six-month period was HKD 17,625,000, an increase from HKD 8,201,000 in the previous year[33] - The group had 54 employees as of December 31, 2019, down from 59 employees as of June 30, 2019[63]

Financial Performance - The company reported revenue of HKD 50,549,000 for the three months ended September 30, 2019, a significant increase from HKD 5,441,000 in the same period of 2018, representing a growth of approximately 830%[3] - Gross profit for the same period was HKD 13,653,000, compared to HKD 4,680,000 in 2018, indicating a gross margin improvement[3] - The operating loss narrowed to HKD 287,000 from HKD 11,325,000 year-over-year, showing a substantial reduction in operational deficits[3] - The company recorded a loss before tax of HKD 3,845,000, down from HKD 14,140,000 in the previous year, reflecting improved financial performance[3] - The total comprehensive loss for the period was HKD 5,793,000, compared to HKD 13,767,000 in 2018, indicating a reduction of approximately 58%[5] - Basic loss per share for the company’s equity holders was HKD 0.10, down from HKD 0.38 in the same period last year[5] - The company’s administrative and operating expenses decreased to HKD 12,991,000 from HKD 16,049,000, contributing to the improved financial results[3] - The financing costs increased to HKD 3,558,000 from HKD 2,815,000, indicating higher borrowing costs[3] - The gross profit margin decreased from 86% in the previous year to approximately 27% due to investments in new internet-based services[18] - The net loss attributable to equity holders was HKD 4,100,000, a 68% decrease from HKD 12,800,000 in the previous year[18] - Sales and distribution expenses and administrative expenses were HKD 14,600,000, down 9% from HKD 16,000,000 in the previous year[18] - Financing costs increased by 26% to HKD 3,600,000 from HKD 2,800,000 in the previous year[18] Strategic Partnerships and Developments - The company entered a five-year strategic cooperation agreement with Guoyao Pharmaceutical and Zhongwei Huaxin to establish a comprehensive service platform for the tobacco industry[20] - The strategic partnership aims to create "smart convenience stores" that provide various services including healthcare, self-service lottery, and fintech solutions[20] - The company is developing operational solutions including self-developed lottery machines and logistics processes for lottery distribution[21] - The company plans to implement a pilot project for upgrading convenience stores in collaboration with tobacco and financial institutions[21] - The company aims to promote the O2O model of the comprehensive service platform across different business formats[21] - The company signed a five-year strategic cooperation framework agreement with Beijing Guorun Jiuhua Health Technology Co., Ltd. and Jianfutang TCM Group to develop a comprehensive TCM health solution and an online AI-assisted diagnosis system[22] - The company is actively integrating smart diagnostic equipment to enhance data collection and analysis, aiming for smoother operations when entering the store-in-store model[23] - The company aims to leverage the low coverage of anti-counterfeiting traceability in the domestic market to enter the anti-counterfeiting market, which presents new business opportunities[25] - The company plans to expand its offline smart supply chain management and upgrade retail stores to smart retail stores, enhancing market reach[26] Shareholder Information and Corporate Governance - The company does not recommend paying dividends for the three months ending September 30, 2019, consistent with the previous year[28] - The company holds a total of 640,596,856 shares, representing approximately 15.59% of the total shares, held by key executives[29] - As of September 30, 2019, the company had a total of 632,920,856 shares held by the front end, with Ms. Zhang and Mr. Chen owning 99.89% and 0.11% respectively[30] - Major shareholders include Guoyao Medicine Overseas Holdings Limited with 650,000,000 shares (15.82%), Front End and its concert parties with 640,596,856 shares (15.59%), and Integrated Asset Management (Asia) Limited with 461,733,000 shares (11.24%) as of September 30, 2019[32] - The company issued convertible bonds worth HKD 89,625,000 with an 8% interest rate, which can be converted into a maximum of 249,651,810 shares at a conversion price of HKD 0.359 per share[33] - The convertible bonds' maturity date has been extended multiple times, with the latest extension to January 17, 2020, allowing for the issuance of up to 263,602,941 shares upon full conversion[34] - The company has a stock option plan adopted on January 31, 2013, which allows eligible participants to subscribe for shares, valid for ten years[36] - As of September 30, 2019, a total of 90,800,000 stock options were granted under the stock option plan, with various exercise prices set at HKD 0.33[37] - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the three months ending September 30, 2019[38] - There were no direct or indirect interests held by directors, major shareholders, or their close associates in any competing business as of September 30, 2019[39] - The company has established an audit committee in compliance with GEM listing rules, consisting of three independent non-executive directors as of August 27, 2019[43] - The audit committee is responsible for reviewing the company's annual reports, interim reports, and quarterly reports, ensuring compliance with applicable accounting standards[43] - The company has adopted the trading code of conduct for directors as per GEM listing rules, confirming compliance during the three months ending September 30, 2019[42] - The company is actively seeking suitable candidates to fill the vacancy of the audit committee chairman following the passing of a member on August 28, 2019[43] - The company has not specified a fixed term for independent non-executive directors, allowing for re-election every three years at the annual general meeting[41] - The company is committed to reviewing and updating its corporate governance practices to comply with GEM listing rules as deemed appropriate[41] - The board of directors consists of both executive and non-executive members, ensuring a diverse governance structure[45] - The company has adhered to the GEM listing rules regarding the issuance of new shares to existing shareholders on a pro-rata basis[40] - The company has confirmed that all directors have complied with the required trading standards during the reporting period[42] - The company emphasizes the importance of long-term shareholder interests in its governance practices[41]

Financial Performance - The company reported a revenue of HKD 43.5 million for the fiscal year ending June 30, 2019, representing a year-on-year growth of 72%[7]. - The company recorded revenue of HKD 43,503,000 for the year ended June 30, 2019, an increase of 71.6% compared to HKD 25,347,000 for the previous year[190]. - Gross profit for the same period was HKD 23,701,000, up from HKD 15,705,000, reflecting a gross margin improvement[190]. - The company reported a loss before tax of HKD 47,938,000, a reduction in loss compared to HKD 73,399,000 in the prior year[190]. - Total comprehensive loss for the year was HKD 43,496,000, compared to HKD 71,672,000 in the previous year, indicating a significant decrease in losses[191]. - Basic loss per share for the year was HKD (1.35), an improvement from HKD (1.85) in the previous year[191]. - Other income and gains increased significantly to HKD 66,269,000 from HKD 13,951,000, indicating strong performance in this area[190]. - The company recognized an impairment loss of HKD 67,930,000, which was not present in the previous year, impacting overall profitability[190]. - Administrative and operating expenses decreased to HKD 57,815,000 from HKD 80,268,000, reflecting cost control measures[190]. - The company reported a tax credit of HKD 2,312,000, compared to HKD 1,814,000 in the previous year, contributing to the reduction in net loss[190]. - Non-controlling interests contributed HKD 1,170,000 to the profit, contrasting with a loss of HKD 10,551,000 in the previous year, indicating improved performance from subsidiaries[190]. Strategic Partnerships and Business Development - The strategic partnership with Guoyao Pharmaceutical Co., Ltd. has positioned the company to leverage unique market resources and enhance its business capabilities in the "Internet + health" sector[8]. - The company has undergone a strategic transformation towards "Internet +" business, which has begun to enter a growth phase and is expected to continue generating stable returns[7]. - The company aims to focus on innovative value creation and continuous market expansion as part of its new blue ocean development strategy[7]. - The company has established a strategic cooperation with Zhongwei Huaxin Fund Management Co., Ltd. to develop intelligent credit convenience service stores, expanding its business channels significantly[8]. - The company anticipates entering a harvest period due to past investments and team efforts in both the lottery and "Internet +" business segments[10]. - The company acquired 100% equity of Hero Global Holdings Limited through a strategic partnership with Guoyao Medicinal Materials Co., Ltd., enhancing its position in the "Internet + Health" sector[13]. - The strategic cooperation framework agreement with Zhongwei Huaxin Fund Management aims to upgrade offline terminals into "Smart Credit Convenience Service Stores," expanding service offerings including healthcare and smart logistics[14]. - The company established a joint venture, Guoyao Health Cross-Border E-Commerce Co., Ltd., with Guoyao Medicinal Materials, holding 30% and 70% equity respectively, to develop a national online and offline platform for "Internet + Health" services[18]. - The strategic partnership with Guoyao Medicinal Materials and Zhongwei Huaxin will facilitate the introduction of international health products into the Chinese market through the tobacco business service platform[14]. Corporate Governance - The company emphasizes maintaining high standards of corporate governance and effective accountability systems to protect shareholder interests and enhance business growth[68]. - The company has adopted and complied with the applicable code provisions of the GEM Listing Rules Appendix 15, with certain deviations noted[69]. - The board of directors consists of a chairperson, an executive director, and non-executive directors, ensuring a diverse governance structure[72]. - The independent non-executive directors do not have a fixed term but must retire and be re-elected at least once every three years at the annual general meeting[69]. - The company has implemented a code of conduct for securities trading by directors, confirming compliance for the year ending June 30, 2019[71]. - The company’s chief legal advisor has extensive experience in managing legal and regulatory matters across various sectors[65]. - The group’s financial director has over 17 years of experience in accounting and financial management, enhancing the company's financial oversight[64]. - The board is committed to regularly reviewing and updating corporate governance practices to align with GEM Listing Rules[70]. - The company has a strong emphasis on high-quality board composition to ensure effective governance and strategic decision-making[68]. - The board is responsible for reviewing the financial performance of the group and approving major investments and risk management policies[74]. Environmental and Social Responsibility - The company reported a decrease in nitrogen oxides emissions from 8,147.53 grams in 2018 to 7,219.68 grams in 2019, a reduction of approximately 11.4%[152]. - Sulfur oxides emissions decreased from 174.00 grams in 2018 to 157.07 grams in 2019, reflecting a decline of about 9.7%[152]. - The total carbon dioxide emissions from vehicle fuel combustion decreased from 27,934.14 kg in 2018 to 25,217.05 kg in 2019, a reduction of approximately 9.7%[154]. - Indirect carbon dioxide emissions from electricity consumption decreased significantly from 136,354.81 kg in 2018 to 31,404.84 kg in 2019, a reduction of about 77%[154]. - The group is committed to reducing energy and resource consumption in daily operations, implementing guidelines for employees to minimize electricity and office supplies usage[157]. - The group reported no significant industrial pollutants or hazardous waste generation, adhering to environmental protection laws without major violations[161]. - The group emphasizes the importance of human resources as a core competitive advantage, implementing fair recruitment policies and monitoring employee work hours[163]. - The group has a zero-tolerance policy for workplace harassment, ensuring a safe and healthy work environment for employees[164]. - The group encourages employee participation in external training courses relevant to their job responsibilities, supporting continuous development[165]. - The group maintains a commitment to high standards of product and service responsibility, ensuring confidentiality of employee-related information[168]. Financial Position and Liabilities - As of June 30, 2019, the group's bank balances and cash amounted to HKD 6,600,000, an increase from HKD 4,700,000 in 2018[39]. - Current assets reached HKD 41,300,000, up from HKD 26,700,000 in 2018, while current liabilities decreased to HKD 189,400,000 from HKD 231,600,000[39]. - The capital debt ratio as of June 30, 2019, was 39%, a significant decrease from 51% in 2018[39]. - The group had no contingent liabilities as of June 30, 2019, consistent with the previous year[42]. - The group reported a net current liability of approximately HKD 148,086,000 as of June 30, 2019, with a loss of about HKD 45,626,000 for the year[173]. - The company’s total liabilities included HKD 148,086,000 in net current liabilities as of June 30, 2019, raising concerns about the company's ability to continue as a going concern[200]. - The company recognized a goodwill impairment loss of HKD 65,130,000 for the six months ended June 30, 2019, with no such loss reported in the same period of 2018[55]. - The impairment assessment of trade receivables involved management's judgment on the recoverability based on customer circumstances and market conditions[175]. - The assessment of goodwill and intangible assets involved key assumptions such as revenue growth rate and discount rate[177]. Shareholder Relations - The company expresses gratitude to shareholders for their continued support and interest in its latest developments[10]. - The company has established multiple communication channels with shareholders and stakeholders, including annual general meetings and reports[101]. - The board is responsible for creating shareholder returns and overseeing the management's performance[74]. - The company has committed to a cash compensation arrangement if accumulated net profits do not meet guaranteed levels, affecting the lock-up of shares[51]. - The company has received written consent from bondholders to extend the maturity date of the convertible bonds by six months to January 17, 2020[121].