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].

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]