Financial Performance - For the three months ended March 31, 2019, the company reported revenue of HKD 9,183,000, a 58.5% increase from HKD 5,781,000 in the same period of 2018[4] - For the nine months ended March 31, 2019, total revenue reached HKD 21,558,000, up 15.4% from HKD 18,646,000 in the prior year[4] - The gross profit for the three months ended March 31, 2019, was HKD 8,035,000, compared to HKD 3,629,000 for the same period in 2018, representing a 121.5% increase[4] - The operating loss for the nine months ended March 31, 2019, was HKD 25,656,000, an improvement from a loss of HKD 41,728,000 in the same period of 2018[4] - The company reported a net loss of HKD 12,231,000 for the three months ended March 31, 2019, compared to a net loss of HKD 18,271,000 in the same period of 2018[4] - The total comprehensive loss for the nine months ended March 31, 2019, was HKD 32,361,000, compared to HKD 47,887,000 in the same period of 2018[7] - Basic loss per share for the three months ended March 31, 2019, was HKD 0.32 cents, compared to HKD 0.54 cents in the same period of 2018[7] - For the nine months ended March 31, 2019, the company reported a loss attributable to equity holders of HKD 29,707,000, a decrease of 39.2% compared to HKD 48,860,000 for the same period in 2018[17] - The basic and diluted loss per share for the nine months ended March 31, 2019, was HKD 0.0089, compared to HKD 0.0148 for the same period in 2018[17] Revenue Sources - Lottery-related services generated revenue of HKD 9,164,000 for the three months ended March 31, 2019, a significant increase from HKD 4,358,000 in the same period of 2018[11] - Internet and solution services contributed HKD 1,582,000 to revenue for the nine months ended March 31, 2019, with no revenue reported in the same period of 2018[11] Costs and Expenses - The company incurred financing costs of HKD 1,992,000 for the three months ended March 31, 2019, down from HKD 3,356,000 in the same period of 2018[4] - Total service costs for the nine months ended March 31, 2019, were HKD 5,604,000, down 10.2% from HKD 6,244,000 in the previous year[14] - The company recorded a depreciation expense of HKD 1,471,000 for property, plant, and equipment for the nine months ended March 31, 2019, a decrease of 61.7% from HKD 3,848,000 in 2018[14] - Sales and distribution expenses, along with administrative expenses, totaled HKD 42,200,000, down 26.6% from HKD 57,500,000 in the previous year[29] Shareholder Information - As of March 31, 2019, the major shareholders include Front and its concert parties holding 683,241,856 shares, representing approximately 19.75% of the issued shares[49] - Integrated Asset Management (Asia) Limited holds 455,633,000 shares, accounting for 13.17% of the total shares[49] - Mr. Xie Shaohai owns 308,650,000 shares, which is about 8.92% of the issued shares[49] - The company issued 168,000,000 new shares at a price of HKD 0.238 per share on January 22, 2019[59] - Upon full conversion of the bonds, Integrated Asset's shareholding will increase to approximately 20.39% of the current issued share capital[53] Strategic Initiatives - The company entered into a share transfer agreement to acquire 100% of Hero Global Holdings Limited for HKD 139,100,000, which includes a 70% stake in Guoyao Health Cross-Border E-Commerce Co., Ltd[31] - The agreement includes a profit guarantee of no less than HKD 23,000,000 for each fiscal year ending December 31 from 2019 to 2021[33] - The company aims to build a one-stop intelligent health platform utilizing technologies such as big data, cloud computing, and artificial intelligence[33] - The strategic partnership with Guoyao Pharmaceutical is expected to enhance the company's "Internet + Health" initiatives and leverage synergies for further business opportunities[34] - The company aims to leverage its partnership with China National Pharmaceutical Group to enhance its "Internet+ health" platform and expand its business[40] Market Insights - The cross-border e-commerce market in China has grown from RMB 3.15 trillion in 2013 to RMB 9.1 trillion in 2018, and is projected to reach RMB 10.8 trillion in 2019[35] - The share of e-commerce imports in total transaction volume increased from 14.3% in 2013 to 22.9% in the first half of 2018[35] - The import share of e-commerce transactions is expected to continue rising, supported by new policies effective from January 1, 2019[35] Compliance and Governance - The company has complied with the GEM Listing Rules and has established an audit committee consisting of three independent non-executive directors[65] - The audit committee reviewed the unaudited performance of the group for the nine months ended March 31, 2019, and confirmed compliance with applicable accounting standards and regulations[69] - The board of directors consists of executive directors Zhang Guilan and Chen Ting, non-executive director Chen Tongmei, and independent non-executive directors Du Enming, Yang Qingcai, and Liu Dabe[69] - There are no known direct or indirect interests in any competing business held by the directors or major shareholders as of March 31, 2019[60] Future Plans - The company plans to accelerate the realization of value across its "Internet+" businesses and will hire relevant professionals to support this growth[40] - The company is exploring new opportunities in offline lottery business through innovative products and solutions[39] - The integration of online and offline services is expected to create a seamless delivery experience for users[39] Dividend Policy - The board of directors does not recommend the payment of dividends for the nine months ending March 31, 2019[41] Other Financial Information - The company reported unaudited consolidated revenue of HKD 21,600,000 for the period, an increase of 15.6% compared to HKD 18,600,000 in the previous year[29] - Gross profit margin improved to approximately 74%, up from 66.5% in the previous year[29] - The company reported a net foreign exchange loss of HKD 190,000 for the nine months ended March 31, 2019, compared to a gain of HKD 737,000 in the same period of 2018[14] - Deferred tax assets recognized for the nine months ended March 31, 2019, amounted to HKD 1,751,000, an increase of 123.5% from HKD 785,000 in 2018[15] - The weighted average number of ordinary shares for calculating basic and diluted loss per share was 3,333,161,000 for the nine months ended March 31, 2019, compared to 3,290,855,000 in the previous year[18] - The company did not recognize any provision for Hong Kong profits tax for the nine months ended March 31, 2019, as there were no taxable profits generated[15] - The total comprehensive loss for the nine months ended March 31, 2019, was HKD 32,361,000, compared to a loss of HKD 59,999,000 in the same period of 2018[21] - The company issued shares worth HKD 39,984,000 due to a placement of shares during the nine months ended March 31, 2019[21] - The company has a stock option plan that allows for the issuance of up to 20,000,000 options, all of which remain unexercised as of March 31, 2019[57] - The company has adopted a stock option plan effective for ten years from January 31, 2013, allowing the board to invite eligible participants to subscribe for shares[54] - The report is dated May 14, 2019, indicating the company's commitment to timely disclosures[70]

Revenue Performance - Revenue for the three months ended December 31, 2018, was HKD 6,934,000, an increase of 12.3% compared to HKD 6,174,000 for the same period in 2017[4] - Revenue for the six months ended December 31, 2018, was HKD 12,375,000, a decrease of 3.8% compared to HKD 12,865,000 for the same period in 2017[4] - Total revenue for the six months ended December 31, 2018, was HKD 12,375,000, a decrease of 3.8% from HKD 12,865,000 in the same period of 2017[24] - The group recorded unaudited consolidated revenue of HKD 12,400,000 in 2018, a slight decrease of 3.9% compared to HKD 12,900,000 in 2017, primarily due to a decline in lottery-related business sales[63] Profit and Loss - Gross profit for the three months ended December 31, 2018, was HKD 4,377,000, representing a gross margin of 63.1%[4] - Operating loss for the six months ended December 31, 2018, was HKD 15,329,000, a reduction of 42.5% compared to HKD 26,556,000 for the same period in 2017[4] - The total comprehensive loss for the six months ended December 31, 2018, was HKD 20,246,000, compared to HKD 31,043,000 for the same period in 2017[5] - The company reported a net loss attributable to equity holders of HKD 18,906,000 for the six months ended December 31, 2018[4] - Basic loss per share for the six months ended December 31, 2018, was HKD 0.57, compared to HKD 0.94 for the same period in 2017[5] - The company reported a net loss of HKD 20,028,000 for the six months ended December 31, 2018, compared to a net loss of HKD 32,825,000 in the same period of 2017[27] - The company recorded a loss attributable to equity holders of HKD 18,906,000 for the period, compared to a loss of HKD 30,908,000 in the prior year, showing a 38.8% improvement[10] - The company reported a loss before tax of HKD 21,000,000 for the six months ended December 31, 2018, compared to a loss of HKD 33,353,000 in the same period of 2017, representing a 37% improvement[27] Assets and Liabilities - Non-current assets as of December 31, 2018, totaled HKD 142,614,000, a decrease from HKD 148,811,000 as of June 30, 2018[7] - Current liabilities as of December 31, 2018, were HKD 248,135,000, an increase from HKD 231,649,000 as of June 30, 2018[7] - The total assets as of December 31, 2018, were HKD 171,714,000, a decrease from HKD 175,497,000 as of June 30, 2018[22] - The total liabilities as of December 31, 2018, were HKD 250,222,000, an increase from HKD 235,496,000 as of June 30, 2018[22] - The company’s total equity attributable to equity holders decreased to HKD (78,508,000) as of December 31, 2018, from HKD (22,201,000) at the end of 2017, indicating a significant decline in equity[10] Cash Flow and Financing - The company’s cash and cash equivalents as of December 31, 2018, were HKD 4,763,000, slightly up from HKD 4,719,000 as of June 30, 2018[7] - The net cash used in operating activities for the six months was HKD 11,952,000, a decrease from HKD 19,034,000 in the previous year, reflecting a 37.5% reduction in cash outflow[12] - The company had cash and cash equivalents of HKD 4,763,000 at the end of the period, down from HKD 9,770,000 at the end of the previous year, representing a 51.2% decrease[12] - The company’s financing activities generated a net cash inflow of HKD 12,088,000, slightly down from HKD 12,761,000 in the previous year, reflecting a 5.3% decrease[12] - The company’s interest paid increased to HKD 3,590,000 from HKD 12,000 in the previous year, indicating a significant rise in financing costs[12] Operational Highlights - The company did not incur any capital expenditures during the period, compared to HKD 749,000 in the previous year[12] - The company did not report any new product launches or significant market expansion strategies during this period[13] - The company’s revenue from lottery-related services was HKD 10,450,000, an increase of 1.5% from HKD 10,294,000 in the same period of 2017[24] - The company’s revenue from internet and solution services was HKD 1,567,000, an increase of 44% from HKD 1,089,000 in the same period of 2017[24] Management and Governance - The remuneration for directors and key management personnel for the six months ended December 31, 2018, was HKD 8,201 thousand, compared to HKD 8,236 thousand for the same period in 2017[51] - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, with deviations noted regarding the term limits for independent non-executive directors[124] - The company confirmed that all directors have complied with the trading code of conduct as per GEM Listing Rules from July 1, 2018, to December 31, 2018[125] - An audit committee has been established, consisting of three independent non-executive directors, responsible for reviewing financial reports and internal controls[130] Shareholder Information - The group’s major shareholders include Ms. Zhang with 20.76% and Mr. Chen with 20.76% of total shares[104] - As of December 31, 2018, the major shareholder, Frontend and its concert parties, held 683,241,856 shares, representing 20.76% of the issued shares[110] - Integrated Asset Management (Asia) Limited owned 455,633,000 shares, accounting for 13.85% of the total shares[110] - Global Investment (Hong Kong) Limited held 195,070,000 shares, which is 5.93% of the total shares[110] - The company did not purchase, sell, or redeem any shares during the six months ending December 31, 2018[120] - The company has a stock option plan that allows for the issuance of up to 20,000,000 options, with no options exercised or canceled during the reporting period[119]