Financial Performance - In the Current Year, the Group's revenue from trading of metal business improved compared to 2020, despite challenges from the pandemic and supply chain disruptions[37]. - The Group's revenue improved during the year despite challenges from the pandemic, supply chain disruptions, and fluctuating market prices[40]. - The Group's revenue from trading of metal business improved to approximately HK$9.39 million in the Current Year, compared to approximately HK$4.25 million in 2020, reflecting a significant increase[94][95]. - For the year ended 31 December 2021, the Group's total revenue was approximately HK$13.9 million, an increase of approximately 32.4% compared to HK$10.5 million in 2020[109]. - The Group recorded a loss of approximately HK$31.4 million for the year ended 31 December 2021, a decrease of approximately 32.8% from a loss of approximately HK$46.7 million in 2020[109]. - The loss attributable to owners of the Company was approximately HK$29.2 million for the year ended 31 December 2021, compared to a loss of approximately HK$46.9 million in 2020[109]. Business Segments - The Group's education management service business in the PRC Mainland faced a significant reduction in revenue due to new government policies, including the New Non-state Education Promotion Law[37]. - The education management services business in Mainland China was significantly impacted by new regulations, leading to a substantial reduction in revenue[40]. - The education management services segment generated approximately HK$4.55 million in revenue for the Current Year, a decline from approximately HK$6.21 million in 2020, reflecting a significant reduction due to government reforms in the education sector[99][102]. - The money lending business was also impacted by the uncertain economic environment, leading to strengthened risk control and prudent assessment policies[37]. - The money lending services segment recorded no revenue for the Current Year, consistent with the previous year, as the Group adopted a cautious approach to credit assessment amid high credit risk due to the ongoing global COVID-19 pandemic[100][103]. Risk Management - The Group continued to adhere to a strategy of prudent operation and risk control to ensure stable business performance[38]. - The Group's money lending business adopted a more cautious approach due to the uncertain economic environment, enhancing risk control measures[40]. - The Group has implemented strict risk control measures in procurement and sales, avoiding transactions with high uncertainties and low margins[79][81]. - The Group's pricing strategy for its metal trading business reflects the heightened risks due to the pandemic and market volatility, emphasizing strict risk control measures[63][65]. - Overall, the Group's metal trading operations are characterized by a focus on risk management and cautious engagement in the market due to ongoing uncertainties[69][71]. Market Opportunities and Strategies - The Group actively sought market opportunities under controllable risks to recover and expand its trading of metal business[38]. - The Group anticipates further improvement and expansion of its metal business once the pandemic is under control and customs clearance between Hong Kong and Mainland China normalizes[46]. - The Group will continue to focus on active recovery and expansion of its main business while maintaining strict risk control and careful partner selection[46]. - The Group's strategy includes optimizing and adjusting its business model in response to government policies regarding education reform[46]. - The Group is actively seeking business opportunities with other local gold traders in Hong Kong to expand its market presence[85][88]. Corporate Governance - The Company has a strong governance structure with experienced directors, including independent non-executive directors with diverse backgrounds in finance and management[145]. - The Company aims to achieve a high standard of corporate governance practices to safeguard shareholder interests[154]. - The Company has complied with the Corporate Governance Code provisions, except for a deviation from Code Provision A.2.1[155]. - The Board consists of 5 Directors, including 2 executive Directors and 3 independent non-executive Directors[159]. - The Company has established various committees, including the Audit Committee and Remuneration Committee, to enhance corporate governance[194]. Compliance and Legal Matters - The Group emphasizes maintaining a high degree of compliance and legality to achieve healthy development in its education management services business[98][106]. - The Company has confirmed compliance with the standards of dealings regarding securities transactions throughout the year[158]. - The Company has adopted a code of conduct for securities transactions by Directors, ensuring compliance with GEM Listing Rules[156]. - The Company aims to leverage its experienced board to navigate market challenges and pursue growth opportunities[145]. Financial Position - As at 31 December 2021, the Group had cash and bank balances of approximately HK$20.9 million, down from approximately HK$29.0 million in 2020[112]. - The Group's net current assets as at 31 December 2021 were approximately HK$29.4 million, a decrease from approximately HK$33.4 million in 2020[112]. - The current ratio as at 31 December 2021 was 7.24 times, compared to 9.85 times in 2020[112]. - The Group had no outstanding borrowings as at 31 December 2021, consistent with 2020[112]. - The Group maintained a net cash surplus as of December 31, 2021, indicating strong liquidity[130].

Financial Performance - Total income for the nine months ended September 30, 2021, was HK$9,358,000, an increase from HK$7,016,000 in the same period of 2020, representing a growth of approximately 33.4%[13] - Revenue from metal trading and education management services for the three months ended September 30, 2021, was HK$5,349,000, compared to HK$3,914,000 in the same period of 2020, marking an increase of about 36.5%[13] - The company reported a loss for the period of HK$19,801,000 for the nine months ended September 30, 2021, compared to a loss of HK$27,438,000 for the same period in 2020, representing a 27.5% improvement[18] - The Group reported total revenue of approximately HK$9.3 million for the nine months ended 30 September 2021, an increase of approximately 45.3% compared to HK$6.4 million for the same period in 2020[68] - The Group recorded a loss of approximately HK$19.8 million for the nine months ended 30 September 2021, a decrease of approximately 27.7% from a loss of HK$27.4 million for the same period in 2020[68] Cost Management - Employee costs for the three months ended September 30, 2021, were HK$13,811,000, down from HK$16,055,000 in the same period of 2020, indicating a reduction of about 13.9%[16] - Employee costs decreased by approximately HK$2.2 million during the nine months ended September 30, 2021[68] - The Group recognized employee costs of approximately HK$0.8 million for the nine months ended September 30, 2021, compared to approximately HK$2.7 million for the same period in 2020[135] Inventory and Trading - The carrying value of inventories sold for the nine months ended September 30, 2021, was HK$5,361,000, compared to HK$4,138,000 in the same period of 2020, reflecting an increase of approximately 29.5%[16] - Trading gains on commodity forward contracts for the nine months ended September 30, 2021, were HK$22,000, compared to a loss of HK$183,000 in the same period of 2020, showing a significant turnaround[13] Loss and Equity - The total comprehensive loss for the period attributable to owners of the company was HK$18,223,000, down from HK$26,176,000 in the previous year, indicating a 30.4% reduction[18] - Basic and diluted loss per share for the nine months ended September 30, 2021, was HK(2.57) cents, an improvement from HK(4.59) cents in the same period of 2020[18] - As of September 30, 2021, the total equity attributable to owners of the company was HK$57,431,000, an increase from HK$50,604,000 as of September 30, 2020[23] Business Segments - For the nine months ended 30 September 2021, the sales revenue from the metals business segment was approximately HK$5.35 million, compared to approximately HK$4.25 million for the same period in 2020[50] - The education management services segment contributed approximately HK$3.91 million in revenue during the current period, up from approximately HK$2.18 million for the nine months ended September 30, 2020, reflecting a significant growth[56] - No revenue was recorded in the money lending services segment for Q3 2021, compared to approximately HK$10,000 for the nine months ended September 30, 2020[63] Regulatory and Market Conditions - The education management service business is expected to face more severe challenges in the future due to the complex regulatory environment and major policy uncertainties in the PRC Mainland[60] - The overall demand for physical gold and silver remained weak during the period, influenced by economic and employment impacts from the COVID-19 pandemic[52] - The international prices of gold and silver experienced significant volatility and remained high during the period, driven by substantial government spending and quantitative easing measures[52] Risk Management - The company is committed to strict risk control strategies in its business operations, particularly in the logistics segment[53] - The current economic situation and credit risk in the money lending services are perceived to be significantly higher due to the ongoing global pandemic and its impact on employment and business operations[63] - The Group aims to strengthen risk control while seeking development opportunities within its existing business model amid ongoing economic uncertainties[64] Share Capital and Governance - The company issued new shares by way of placements, resulting in share capital of HK$188,352,000 as of September 30, 2021, compared to HK$161,112,000 at the beginning of the year[23] - The total number of ordinary shares issued by the Company as of September 30, 2021, was 829,404,000 shares[83] - The Company has complied with the Corporate Governance Code provisions, except for the separation of the roles of chairman and CEO, which are currently held by the same individual[138]

Loco Hong Kong Holdings Limited 港 銀 控 股 有 限 公 司 (incorporated in Hong Kong with limited liability 於香港註冊成立的有限公司 ) (Stock Code 股份代號: 8162) 0 Interim Report 中期報告 0 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investi ...

Financial Performance - Total revenue for the first quarter of 2021 was HK$1,180,000, compared to HK$621,000 in the same period of 2020, representing an increase of 89.9%[12] - The loss for the period was HK$7,463,000, compared to a loss of HK$6,865,000 in the first quarter of 2020, indicating a deterioration of 8.7%[15] - Total comprehensive loss for the period was HK$7,563,000, slightly higher than the HK$7,520,000 reported in the same quarter of the previous year[15] - Basic and diluted loss per share for the first quarter of 2021 was HK$1.00, compared to HK$1.22 in the first quarter of 2020[15] - For the three months ended March 31, 2021, the company reported a total comprehensive loss of HK$7,463,000 compared to a loss of HK$6,946,000 for the same period in 2020, indicating an increase in loss of approximately 7.4%[110] - The Group recorded a loss of approximately HK$7.5 million for the three months ended 31 March 2021, which is an increase of approximately 9% from a loss of HK$6.9 million for the same period in 2020[147] Revenue Breakdown - The education management services segment generated approximately HK$1.18 million in revenue for Q1 2021, a 93.44% increase from HK$0.61 million in Q1 2020[134][136] - The precious metal sales segment recorded no revenue in Q1 2021, consistent with Q1 2020, due to intensified economic uncertainties and COVID-19 impacts[135][137] - The money lending services segment also reported no revenue in Q1 2021, down from approximately HK$9,000 in Q1 2020, reflecting increased credit risk amid the pandemic[142][144] Expenses and Costs - Employee costs for the quarter amounted to HK$5,096,000, compared to HK$4,995,000 in the same period last year, an increase of 22.2%[12] - The increase in loss was primarily due to a loss allowance of approximately HK$0.03 million on trade and other receivables, an increase in rental expenses of approximately HK$0.3 million, and an increase in other operating expenses of approximately HK$0.3 million[147] - Interest expenses on lease liabilities decreased to HK$12,000 in Q1 2021 from HK$19,000 in Q1 2020, reflecting a reduction of approximately 36.8%[121] Foreign Exchange and Other Income - The company experienced a foreign exchange loss of HK$100,000 due to translation differences on foreign operations, compared to a loss of HK$655,000 in the previous year, indicating an improvement of 84.7%[15] - Other income for the quarter was HK$52,000, up from HK$48,000 in the previous year, reflecting a growth of 8.3%[12] Equity and Share Information - The company’s total equity at March 31, 2021, was HK$43,980,000, a decrease from HK$51,223,000 at January 1, 2021, representing a decline of approximately 14.2%[110] - The total number of ordinary shares in issue as at March 31, 2021 was 691,170,000 shares[161] - The interests of directors and chief executives in the shares of the Company included 5,700,000 ordinary shares held by Mr. Wang Wendong and Mr. Fung Chi Kin, representing approximately 0.82% of the total shareholding[157] Tax and Regulatory Information - The company incurred no current tax expense for the three months ended March 31, 2021, compared to HK$15,000 in the same period of 2020, due to tax losses incurred[123] - The company’s subsidiaries in the PRC Mainland are subject to a 25% enterprise income tax on estimated assessable profit for the period, unchanged from the previous year[126] Business Strategy and Outlook - The Group's strategy includes seeking further opportunities to consolidate its education management service business and market position[143] - The Group anticipates that the education management service business will gradually recover, but it still faces severe challenges[143][145] - The Group's overall business model will focus on balancing risk control while seeking development opportunities[143][145] - The impact of the COVID-19 pandemic continues to create a volatile business environment, particularly in the precious metal and money lending sectors[135][142] Share Options and Incentives - The share options granted to directors will vest on the grant date and the first two anniversaries, with a total of 13,110,000 options outstanding as of March 31, 2021[169] - The exercise price for the share options is HK$0.616 per share[169] - The Group did not purchase, sell, or redeem any of its listed securities during the three months ended 31 March 2021[199]

Financial Performance - The Group reported a significant increase in revenue for the year ended December 31, 2020, with total revenue reaching HKD 500 million, representing a growth of 25% compared to the previous year[36]. - The Group recorded a loss of approximately HK$46.7 million for the year ended December 31, 2020, which is an increase of approximately 77.7% compared to a loss of approximately HK$26.3 million in 2019[65]. - For the year ended December 31, 2020, the Group's total revenue was approximately HK$10.5 million, representing a decrease of approximately 95.2% compared to HK$216.6 million in 2019[65]. - Revenue from the precious metals segment was only approximately HK$4.2 million, a significant decline from approximately HK$185.7 million in 2019[57]. - Revenue from money lending services was approximately HK$0.01 million, down from approximately HK$0.8 million in 2019[60]. - The Group's loss attributable to owners was approximately HK$46.9 million in 2020, compared to approximately HK$34 million in 2019[65]. User Engagement and Market Expansion - User data showed a 30% increase in active users, reaching a total of 1.2 million by the end of 2020[36]. - The Group is planning to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[36]. - The Company provided a positive outlook for 2021, projecting a revenue growth of 15% to 20% driven by new product launches and market expansion initiatives[36]. Product Development and Investment - Investment in new technology development increased by 40%, focusing on enhancing the user experience and operational efficiency[36]. - The management highlighted the successful launch of two new products, which contributed to 20% of total revenue in 2020[36]. Risk Management and Operational Challenges - The Group's strategy includes strengthening risk control to ensure stable operations across its various businesses amid ongoing global economic challenges[53]. - The Group's precious metal and money lending businesses require cautious assessment and robust risk control due to the ongoing pandemic[53]. - The Group experienced a significant decrease in trading losses on commodity forward contracts, which decreased by approximately HK$2.7 million[65]. - The Group's operations in precious metal trading faced fierce competition and significant settlement risks due to the pandemic's impact on the import and export industry[55]. Financial Health and Liquidity - As of December 31, 2020, the Group had cash and bank balances of approximately HK$29 million, an increase of approximately HK$0.2 million from HK$28.7 million in 2019, and net current assets of approximately HK$33.4 million, down from HK$52.6 million in 2019[68]. - The current ratio as of December 31, 2020, stood at 9.85 times, compared to 6.69 times in 2019[68]. - The Group had no outstanding borrowings as of December 31, 2020, consistent with 2019[68]. Corporate Governance - The Company has achieved a high standard of corporate governance practices to safeguard shareholder interests and enhance shareholder value[99]. - The Board currently consists of 5 Directors, including 2 executive Directors and 3 independent non-executive Directors[103]. - The Company has independent non-executive directors with diverse backgrounds in finance and aviation[90][93]. - The Company emphasizes the importance of increasing diversity at the Board level to support strategic objectives and sustainable development[129]. Board and Committee Activities - The Audit Committee held 5 meetings during the year ended December 31, 2020, reviewing annual, interim, and quarterly results, and evaluating the Group's financial reporting process[131]. - The Remuneration Committee held 2 meetings during the year ended December 31, 2020, reviewing the remuneration of each Director and making recommendations to the Board[134]. - The Nomination Committee reviewed the board diversity policy and confirmed that the Group achieved the objectives of its board diversity policy for the year ended December 31, 2020[139]. Shareholder Communication and Engagement - The Company recognizes the importance of ongoing communication with shareholders to keep them informed of business activities and direction[173]. - Annual General Meetings and other shareholder meetings are held to communicate with investors[195]. - The notice of the annual general meeting will be sent to shareholders at least 20 clear business days before the meeting[175]. Sustainability and ESG Reporting - The reporting period for the Environmental, Social and Governance Report covers from January 1, 2020, to December 31, 2020[181]. - The Group focuses on improving its data collection system and expanding its disclosure scope for sustainability reporting[181]. - The ESG Report has been confirmed and approved by the Board on March 25, 2021[187].

Financial Performance - Total revenue for the nine months ended September 30, 2020, was HKD 7,016,000, compared to HKD 193,246,000 for the same period in 2019, representing a significant decline [10]. - The company reported a loss before tax of HKD 27,438,000 for the nine months ended September 30, 2020, compared to a loss of HKD 26,351,000 for the same period in 2019 [12]. - The basic and diluted loss per share for the nine months ended September 30, 2020, was HKD (4.59), compared to HKD (4.88) for the same period in 2019 [12]. - The company experienced a total comprehensive loss of HKD 26,951,000 for the nine months ended September 30, 2020, compared to HKD 26,382,000 for the same period in 2019 [12]. - Revenue from precious metal trading for the nine months ended September 30, 2020, was HKD 4,247,000, a significant decrease from HKD 185,477,000 in the same period of 2019 [10]. - The company incurred a loss of HKD 183,000 from trading of commodity forward contracts for the nine months ended September 30, 2020, compared to a loss of HKD 2,874,000 in the same period of 2019 [10]. - The company reported a loss of 27,170 thousand HKD for the nine months ended September 30, 2020, compared to a loss of 26,351 thousand HKD for the same period in 2019, indicating a year-over-year increase in losses of about 3.1% [15]. - The company recognized a total comprehensive loss of 26,176 thousand HKD for the nine months ended September 30, 2020, compared to a total comprehensive loss of 26,951 thousand HKD for the same period in 2019, showing a slight improvement of approximately 2.9% [15]. Equity and Liabilities - As of September 30, 2020, the total equity of the company was 52,913 thousand HKD, a decrease from 82,286 thousand HKD as of September 30, 2019, reflecting a decline of approximately 35.9% [15]. - The company’s accumulated losses increased to (101,074) thousand HKD as of September 30, 2020, compared to (66,894) thousand HKD as of September 30, 2019, indicating a significant increase in accumulated losses of approximately 51.2% [15]. - The company’s non-controlling interests increased by 2,309 thousand HKD as of September 30, 2020, compared to 1,931 thousand HKD as of September 30, 2019, reflecting a growth of approximately 19.6% [15]. - The company’s total liabilities included lease liabilities interest of 56 thousand HKD for the nine months ended September 30, 2020, down from 91 thousand HKD for the same period in 2019 [21]. Revenue Segments - The education management services segment contributed approximately HKD 2.2 million in revenue for the nine months ended September 30, 2020, down from approximately HKD 4.9 million for the same period in 2019 [29]. - The lending services segment saw a significant revenue decrease to approximately HKD 0.01 million for the nine months ended September 30, 2020, compared to approximately HKD 0.41 million for the same period in 2019 [32]. - The group recognized a loss of approximately HKD 4.1 million from the sale of inventory for the nine months ended September 30, 2020, compared to approximately HKD 185 million for the same period in 2019 [35]. Tax and Interest Expenses - The company did not incur any current tax expenses for the nine months ended September 30, 2020, due to tax losses, while the estimated tax rate remained at 16.5% [22]. - The company’s interest expenses for bank loans and other borrowings were reported as zero for the nine months ended September 30, 2020, compared to 30 thousand HKD for the same period in 2019 [21]. Corporate Governance and Compliance - The company adhered to the corporate governance code, with the roles of chairman and CEO currently held by the same individual, Mr. Wang Wendtong [64]. - The audit committee, consisting of three independent non-executive directors, reviewed the quarterly report before board approval [67]. - The company confirmed compliance with the trading standards and code of conduct for directors during the nine months ended September 30, 2020 [65]. Share Options and Management - The company adopted a share option scheme on July 22, 2014, with options granted at HKD 0.616 [56]. - The company has granted share options to directors, with a vesting period from August 27, 2019, to August 26, 2022 [50]. - Employee costs recognized for stock options granted amounted to approximately HKD 2.7 million for the nine months ended September 30, 2020, compared to HKD 4.1 million for the same period in 2019 [60]. Business Strategy and Risks - The company aims to explore suitable new business opportunities and regional markets to mitigate overall business risks amid ongoing challenges [33]. - The company does not face significant foreign exchange risk and believes there is no need to hedge any currency risks [43]. - The company’s management will continue to monitor foreign exchange risk and take appropriate measures if necessary [43]. Shareholder Information - Major shareholders include Han Bo with 76,000,000 shares (13.19%), Zhu Fang with 46,000,000 shares (7.98%), and Zhang Bo with 45,000,000 shares (7.81%) [54]. - The total number of ordinary shares issued as of September 30, 2020, was 576,170,000 [47].

Financial Performance - Total revenue for the six months ended June 30, 2020, was HKD 970,000, compared to HKD 182,495,000 for the same period in 2019, representing a significant decrease [8]. - The loss before tax for the six months ended June 30, 2020, was HKD 18,757,000, compared to a loss of HKD 17,666,000 for the same period in 2019 [10]. - The total comprehensive loss for the six months ended June 30, 2020, was HKD 19,288,000, compared to HKD 17,473,000 for the same period in 2019 [10]. - Basic and diluted loss per share for the six months ended June 30, 2020, was HKD (3.19), compared to HKD (3.23) for the same period in 2019 [10]. - The company reported a loss attributable to owners of the company of HKD 18,388,000 for the six months ended June 30, 2020 [10]. - The company incurred a loss of HKD 2,719,000 from trading commodity forward contracts for the six months ended June 30, 2020 [8]. - The company reported a significant increase in inventory, with a fair value change of HKD (121) million for the six months ended June 30, 2020, compared to no change in the previous year [20]. - The group reported a loss of approximately HKD 18.8 million for the six months ended June 30, 2020, an increase of about 6.2% from a loss of HKD 17.7 million in 2019 [79]. Revenue Breakdown - The company’s revenue from metal sales was HKD 820,000 for the six months ended June 30, 2020, compared to HKD 179,976,000 for the same period in 2019 [8]. - For the six months ended June 30, 2020, the total reported segment revenue was 829 thousand HKD, a significant decrease from 185,004 thousand HKD for the same period in 2019 [35]. - The education management services segment generated revenue of 820 thousand HKD for the six months ended June 30, 2020, while the metal trading segment reported no revenue [35]. - The sales revenue from the metal sales division was zero for the current period, a significant decrease from HKD 184.7 million in the same period of 2019, due to the impact of COVID-19 [74]. - The lending services division experienced a revenue decrease of approximately HKD 0.3 million compared to the previous period, attributed to increased credit risk amid the economic downturn [76]. Assets and Liabilities - Total assets decreased from HKD 83,879 million as of December 31, 2019, to HKD 66,342 million as of June 30, 2020, representing a decline of approximately 20.9% [13]. - Current liabilities decreased from HKD 9,250 million to HKD 4,351 million, a reduction of approximately 53.0% [13]. - The company’s total liabilities decreased from HKD 31,262 million to HKD 27,860 million, a reduction of approximately 10.0% [13]. - The company's equity attributable to owners decreased from HKD 74,115 million as of December 31, 2019, to HKD 57,384 million as of June 30, 2020, a decline of approximately 22.5% [17]. - The total reported assets as of June 30, 2020, amounted to 56,344 thousand HKD, slightly down from 57,979 thousand HKD as of December 31, 2019 [35]. - The total reported liabilities as of June 30, 2020, were 1,261 thousand HKD, compared to 7,005 thousand HKD as of December 31, 2019 [35]. Cash Flow and Financial Position - The net cash generated from operating activities was HKD 5,863 million for the six months ended June 30, 2020, compared to HKD 193 million for the same period in 2019, indicating a significant improvement [20]. - Cash and cash equivalents increased from HKD 51,950 million as of June 30, 2019, to HKD 32,827 million as of June 30, 2020, showing a decrease of approximately 37.0% [22]. - The company’s financing activities generated a net cash outflow of HKD 773 million for the six months ended June 30, 2020, compared to an outflow of HKD 4,287 million for the same period in 2019, indicating improved cash flow management [22]. - As of June 30, 2020, the group's cash and bank balances were approximately HKD 32.8 million, up from HKD 28.7 million as of December 31, 2019 [80]. - The group's current ratio was 9.84 times as of June 30, 2020, compared to 6.69 times as of December 31, 2019 [80]. - The group had no outstanding borrowings or bank financing as of June 30, 2020, indicating sufficient financial resources to meet operational needs [82]. Employee Costs - The company’s employee costs for the six months ended June 30, 2020, amounted to HKD 10,235,000 [8]. - The group reported short-term employee benefits of HKD 3,055,000 for the six months ended June 30, 2020, down from HKD 5,372,000 in the same period of 2019 [72]. - The group’s pension contributions were HKD 17,000 for the six months ended June 30, 2020, compared to HKD 27,000 in the same period of 2019 [72]. - The total employee compensation for the six months ended June 30, 2020, was approximately HKD 10.2 million, slightly down from HKD 10.3 million in 2019 [91]. - The group employed 31 staff as of June 30, 2020, compared to 28 staff as of December 31, 2019 [91]. Corporate Governance - The company has adhered to the corporate governance code as per GEM Listing Rules, with the roles of Chairman and CEO held by the same individual, Wang Wendong [108]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim report before board approval [111]. - The company has a share option plan with options granted at an exercise price of HKD 0.616, which will vest over specified periods [102]. - The company established a Compensation Committee on July 22, 2014, responsible for recommending compensation packages for executive directors and senior management [112]. - The Nomination Committee, formed on July 22, 2014, focuses on board member appointments and diversity, considering factors such as gender, age, and professional experience [114]. - The Executive Committee, established on December 19, 2016, oversees the formulation and execution of the company's strategic plans [115]. - The company emphasizes the importance of board diversity to meet business needs and enhance decision-making [114]. - The report indicates no significant changes in the board composition since the last annual report [116].

Financial Performance - Total revenue for the three months ended March 31, 2020, was HKD 647,000, compared to HKD 107,259, representing a significant decrease [5]. - The company reported a loss before tax of HKD 6,850,000 for the period, an improvement from a loss of HKD 10,676,000 in the previous year [5]. - The total comprehensive loss for the period was HKD 7,520,000, compared to HKD 10,502,000 in the same period last year [7]. - Basic and diluted loss per share was HKD 1.22, compared to HKD 2.07 for the same period in the previous year [7]. - The company incurred a loss of HKD 7,017,000 attributable to owners of the company, compared to HKD 10,676,000 in the previous year [7]. - The company did not generate any revenue in the first quarter of 2020, with trading volumes significantly lower due to intense competition in silver scrap products [44]. - The company recorded total revenue of approximately HKD 647,000 for the three months ended March 31, 2020, a decrease of approximately 99.4% compared to HKD 107.3 million in 2019 [50]. - The loss attributable to the owners of the company was approximately HKD 7.0 million for the three months ended March 31, 2020, compared to a loss of approximately HKD 10.7 million in 2019, representing a decrease of about 35.8% [50]. - The significant revenue decline of approximately 99.3% was primarily due to the absence of metal sales during the period, with inventory sales recognized at zero compared to HKD 105.5 million in 2019 [50]. - Employee costs decreased by approximately HKD 0.9 million, mainly due to a significant reduction in employee costs related to metal sales, partially offset by increased share-based payment expenses and employee costs in the education management services sector [50]. - Other operating expenses decreased by approximately HKD 3.3 million, primarily due to the lack of metal sales transactions during the period [50]. Business Operations - The company operates primarily in metal trading and commodity futures contracts, as well as providing educational management services and lending services [31]. - The education management services segment generated revenue of approximately HKD 612,000 in the first quarter of 2020, as it had not commenced operations in the same period of 2019 [45]. - The company continues to seek further opportunities in metal trading despite the volatility in the precious metals market [44]. - The company plans to continue seeking new business opportunities while ensuring overall returns and value for shareholders amid challenging market conditions [48]. Financial Position - The company’s total assets as of March 31, 2020, were HKD 76,976,000 [27]. - The company’s financial cost for bank loans and other borrowings was HKD 30,000 for the three months ended March 31, 2020 [35]. - The effective tax rate for Hong Kong profits tax remains at 16.5%, with no tax provision made due to tax losses incurred during the period [36]. - The weighted average number of ordinary shares used to calculate basic loss per share increased to 576,170,000 in 2020 from 516,436,667 in 2019 [40]. - The company experienced a foreign exchange loss of HKD 655,000 during the period [7]. Corporate Governance - The company has adhered to the corporate governance code as per GEM listing rules, with no deviations reported except for the separation of roles between the Chairman and CEO, which is currently held by Mr. Wang Wendong [67]. - The audit committee, established in July 2014, is responsible for reviewing the company's annual, semi-annual, and quarterly reports, ensuring compliance with financial reporting standards [69]. - As of the report date, the executive directors include Mr. Wang Wendong and Mr. Feng Zhijian, with independent non-executive directors being Mr. Zhou Tianshu, Ms. Huang Cuishan, and Ms. Wu Liyan [70].

Financial Performance - In 2019, the company faced significant challenges due to international economic downturns, the US-China trade dispute, and social unrest in Hong Kong, leading to a substantial decrease in metal sales revenue[17]. - The group recorded metal sales revenue of approximately HKD 185.7 million for the year ended December 31, 2019, a decrease of about 82.7% from HKD 1,075.9 million in 2018[26]. - Total revenue for the group was approximately HKD 216.6 million for the year ended December 31, 2019, a decrease of about 80.3% from HKD 1,098.0 million in 2018[32]. - The group recorded a loss of approximately HKD 26.3 million for the year ended December 31, 2019, a slight decrease from a loss of HKD 27.7 million in 2018[32]. - The group’s cash and bank balances were approximately HKD 28.7 million as of December 31, 2019, down from HKD 82.3 million in 2018[36]. Business Development - The introduction of the education management services business contributed approximately HKD 25.2 million in revenue and HKD 16.7 million in profit for the year, mitigating the negative impact from the decline in metal sales[17]. - The company plans to accelerate the development of the education management services business and actively seek partnerships with well-known domestic and international enterprises to explore new business areas[18]. - The group launched an education management service business in July 2019, contributing approximately HKD 25.2 million in revenue from agreements with nine schools[27]. - The group plans to expand its education management services and explore new market opportunities in investment, finance, and other commodity trading[29]. Corporate Governance - The company is committed to improving corporate governance and internal control supervision as part of its strategic adjustments[17]. - The board consists of six members, including two executive directors and four independent non-executive directors[72]. - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM listing rules[71]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance shareholder value[69]. - The independent non-executive directors bring extensive experience in banking, accounting, and corporate governance[61][62]. Risk Management - The group has established a risk management and internal control system aimed at managing risks rather than eliminating them, providing reasonable assurance against significant misstatements or losses[108]. - The audit committee reviewed the internal control review report from an independent consulting firm, concluding that the risk management and internal control systems were effective and adequate as of December 31, 2019[110]. - The company does not face significant foreign exchange risk and will continue to monitor the situation[51]. Environmental Impact - The company reported a significant reduction in greenhouse gas emissions, with approximately 32.41 tons of CO2 equivalent emitted in the year ending December 31, 2019, representing a 63% decrease from 86.67 tons in 2018[149]. - The company strictly adheres to the Water Pollution Control Ordinance and has not received any fines or complaints regarding air, noise, water pollution, or waste emissions during the year[146]. - Total wastewater generated decreased by 78% to 361 tons in 2019 from 1,656 tons in 2018, attributed to reduced turnover in the metal division[152]. - The company has committed to sustainable business practices and environmental protection, actively seeking to comply with applicable regulatory standards[140]. Employee Relations - As of December 31, 2019, the company employed a total of 28 employees, an increase from 25 employees in 2018, with the majority of the increase occurring in the Chengdu office[181]. - The company strictly adhered to relevant labor laws and regulations, with no complaints, warnings, lawsuits, or fines reported for the year ending December 31, 2019[179]. - The company has established policies to ensure equal opportunities in recruitment, promotion, and compensation, fostering a fair and respectful workplace environment[179]. - The company encourages employees to set training goals and offers sponsorship for external training programs and professional qualification exams for permanent employees with at least one year of service[189]. Operational Efficiency - The company has established procedures to enhance operational efficiency and effectiveness, prevent unauthorized use and disposal of assets, and ensure compliance with applicable laws and regulations[108]. - The company has implemented health and safety policies to protect employee well-being, ensuring compliance with all applicable health and safety regulations[183]. - The company has not reported any accidents in its metal processing facilities for the year ending December 31, 2019, and passed all relevant government inspections[185].

Revenue Performance - Revenue for the three months ended September 30, 2019, was HKD 10,865 thousand, a decrease of 92% compared to HKD 154,862 thousand for the same period in 2018[8] - Total revenue for the nine months ended September 30, 2019, was HKD 195,869 thousand, down 81% from HKD 1,030,686 thousand in the same period of 2018[8] - For the nine months ended September 30, 2019, the group recorded total revenue of approximately HKD 193.2 million, a decrease of 81.3% compared to HKD 1,032.9 million for the same period in 2018[36] - Metal sales revenue for the nine months ended September 30, 2019, was approximately HKD 185.5 million, down from HKD 1,010.8 million in 2018, with over 99% of this revenue derived from silver product sales[30] Losses and Expenses - The company reported a loss of HKD 26,376 thousand for the three months ended September 30, 2019, compared to a loss of HKD 7,102 thousand for the same period in 2018[10] - The basic and diluted loss per share for the three months ended September 30, 2019, was HKD 1.65, compared to HKD 1.48 for the same period in 2018[10] - The company incurred a loss of HKD 25,337 thousand before tax for the three months ended September 30, 2019, compared to a loss of HKD 7,345 thousand for the same period in 2018[8] - The total comprehensive loss for the three months ended September 30, 2019, was HKD 8,916 thousand, compared to HKD 8,680 thousand for the same period in 2018[10] - For the nine months ended September 30, 2019, the company reported a loss of HKD 27,195,000 compared to a loss of HKD 14,566,000 for the same period in 2018, indicating an increase in losses of approximately 86.5%[27] - The group reported a loss of approximately HKD 26.4 million for the nine months ended September 30, 2019, compared to a loss of HKD 14.8 million in 2018, primarily due to a significant decrease in metal sales revenue by approximately 81.6%[36] Operating Costs - Employee costs for the three months ended September 30, 2019, were HKD 9,193 thousand, an increase from HKD 4,240 thousand in the same period of 2018[8] - Other operating expenses for the three months ended September 30, 2019, were HKD 2,979 thousand, compared to HKD 2,416 thousand for the same period in 2018[8] - Interest income from customers and suppliers for the three months ended September 30, 2019, was HKD 475 thousand, a decrease from HKD 2,163 thousand in the same period of 2018[8] - Interest expenses for bank loans and other borrowings amounted to HKD 787,000 for the nine months ended September 30, 2019, compared to HKD 759,000 for the same period in 2018[21] - The company incurred a tax expense of HKD 1,039,000 for the nine months ended September 30, 2019, compared to HKD 42,000 for the same period in 2018[22] Equity and Liabilities - As of September 30, 2019, the total equity attributable to owners of the company was HKD 80,354,000, a decrease from HKD 95,630,000 as of the previous year-end[27] - The company’s total liabilities increased, contributing to a cumulative loss of HKD 66,895,000 as of September 30, 2019[27] Shareholder Information - The weighted average number of ordinary shares for calculating basic loss per share increased to 556,477,692 for the nine months ended September 30, 2019, compared to 480,170,000 for the same period in 2018[27] - As of September 30, 2019, major shareholders include Han Bo with 76,000,000 shares (13.19%), Zhu Fang with 46,000,000 shares (7.98%), and Lin Chenchen with 45,000,000 shares (7.81%) [49] Corporate Actions and Governance - The company did not recommend any dividends for the nine months ended September 30, 2019, consistent with the previous year[25] - The group completed a placement of 96 million shares at a price of HKD 0.241 per share, raising approximately HKD 21.6 million for general working capital[37] - The company granted stock options on August 27, 2019, with a fair value of HKD 0.176 per option, totaling approximately HKD 6.6 million [55] - The stock options granted will vest over a period of two years, with the first and second anniversaries being critical for vesting [46] - The company has adhered to the corporate governance code as per GEM listing rules, with no deviations noted except for the combined roles of Chairman and CEO held by Mr. Wang Wendong[63] - The audit committee, consisting of four independent non-executive directors, reviewed the quarterly report and financial statements for the nine months ending September 30, 2019, prior to board approval[69] Future Plans and Market Opportunities - The group plans to expand its education management services and aims to sign three to five new schools each year[32] - The group is actively seeking new market opportunities and plans to expand into investment, finance, and other commodity trading sectors[34]