Financial Performance - For the first quarter ended March 31, 2022, the company reported revenue of HKD 502,000, a decrease of 93.3% compared to HKD 7,414,000 in the same period last year[5]. - The cost of sales for the quarter was HKD 343,000, down from HKD 6,444,000, resulting in a gross profit of HKD 159,000[5]. - The operating loss for the quarter was HKD 8,765,000, an improvement from the operating loss of HKD 15,028,000 in the previous year[5]. - The loss before tax was HKD 11,420,000, compared to HKD 19,141,000 in the same quarter last year[5]. - The total comprehensive loss for the quarter was HKD 20,201,000, down from HKD 27,164,000 year-over-year[5]. - The loss attributable to owners of the company was HKD 11,479,000, compared to HKD 21,706,000 in the previous year[5]. - The basic and diluted loss per share for continuing operations was HKD 1.28, compared to HKD 2.42 in the same period last year[5]. - The company reported a foreign exchange loss of HKD 8,722,000 for the quarter, compared to a loss of HKD 5,458,000 in the previous year[5]. - The company reported a total comprehensive loss of HKD 27,164,000 for the three months ended March 31, 2022, compared to a loss of HKD 21,706,000 for the same period in 2021, representing an increase of approximately 25.5%[57]. - The loss attributable to owners of the company for the three months ended March 31, 2022, was HKD 56,945,000, compared to a loss of HKD 63,642,000 in the same period of 2021, indicating a decrease of about 10.5%[110]. Operational Changes - The company did not generate any revenue from its beauty business following the sale of that segment in 2021, reflecting a significant shift in operational focus[116]. - The company’s operating loss for the three months ended March 31, 2022, was primarily impacted by increased competition and challenges posed by the COVID-19 pandemic[116]. - The company has not made any significant investments during the three months ended March 31, 2022[124]. - The company has not conducted any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the three months ended March 31, 2022[125]. Equity and Shareholder Information - As of March 31, 2022, total equity attributable to owners was HKD 50,622,000, with accumulated losses of HKD 633,203,000[55]. - The company reported a total equity of HKD (145,692,000) as of March 31, 2022, compared to HKD (118,543,000) at the end of the previous period, reflecting a decline in equity[57]. - The company’s accumulated losses reached HKD (604,216,000) as of March 31, 2022, indicating ongoing financial challenges[57]. - The total number of issued shares as of March 31, 2022, is 506,219,666[142]. - Tai Dong holds 151,425,197 shares, representing 29.91% of the company's total shares[137]. - 港橋投资有限公司 owns 41,666,666 shares, accounting for 8.23% of the total shares[137]. - HKBridge Absolute Return Fund, L.P. has 64,148,063 shares, which is 12.67% of the total shares[137]. - On Top Global Limited possesses 24,397,946 shares, equating to 4.82% of the total shares[137]. - 康科控股 owns 130,212,675 shares, representing 25.72% of the total shares[137]. - KE10MA Holdings Inc. holds 29,286,971 shares, which is 5.79% of the total shares[137]. - Greater Harmony Limited has 30,000,000 shares, accounting for 5.93% of the total shares[137]. - The company has not repurchased any of its listed shares during the three months ending March 31, 2022[158]. - No significant competition interests were reported by directors or major shareholders as of March 31, 2022[157]. Corporate Governance - The audit committee consists of three independent non-executive directors, including Ms. Han Mai (Chair), Mr. Tan Bili, and Ms. Zhao Yang, and has reviewed the unaudited consolidated first-quarter results for the period ending March 31, 2022[159]. - The company has adhered to the corporate governance code as per GEM listing rules, ensuring high standards of corporate governance and compliance with legal and regulatory requirements[160]. - The roles of the chairman and CEO are clearly defined and separated, with Mr. Su Zhi Tuan serving as the chairman, while the search for a suitable CEO is ongoing[162]. Market Outlook - The Chinese robot market is expected to grow at an annual sales growth rate of approximately 15%-20%, with localization rates steadily increasing, projected to exceed 41% in 2022[127]. - The robot industry has received strategic attention at the national level in China, with an expected average annual growth rate of over 20% in operating income during the 14th Five-Year Plan period[127]. - The Chinese intelligent robotics market is projected to reach RMB 83.9 billion in 2021, with the industrial robotics market expected to reach RMB 44.57 billion[129]. - By 2023, the industrial robotics market in China is anticipated to exceed RMB 58.9 billion, representing over $10 billion[129]. - The global GDP is expected to gain an additional 14% growth from the artificial intelligence market, equivalent to $1.57 trillion[129]. - The demand for industrial robots in China remains strong due to the increasing need for intelligent transformation in manufacturing[129]. - The company acknowledges potential market risks due to macroeconomic influences and industry cycle changes affecting product pricing and supply-demand dynamics[131]. Innovation and Development - The company emphasizes the need for innovation-driven development, focusing on enhancing performance, quality, and safety levels of robotics products[129]. - The company is committed to advancing high-end and intelligent product development through the integration of mobile internet, cloud computing, big data, and IoT technologies[129]. - The robotics industry faces challenges from irrational investment activities leading to intensified competition and resource wastage[129]. - The company calls for all market participants to actively assume market responsibilities amid the rapid growth of the robotics market[129].

Financial Performance - For the three months ended September 30, 2021, the company reported revenue of HKD 3,293,000, a decrease from HKD 6,991,000 in the same period of 2020, representing a decline of approximately 52.8%[5] - The gross profit for the three months ended September 30, 2021, was HKD 1,185,000, down from HKD 2,788,000 in the same period of 2020, reflecting a decrease of about 57.5%[5] - The operating loss for the three months ended September 30, 2021, was HKD 13,038,000, compared to a loss of HKD 14,590,000 in the same period of 2020, indicating an improvement of approximately 10.7%[5] - The total comprehensive loss for the three months ended September 30, 2021, was HKD 24,154,000, compared to HKD 18,957,000 in the same period of 2020, representing an increase of about 27.3%[8] - For the nine months ended September 30, 2021, the company reported a total revenue of HKD 13,636,000, down from HKD 19,457,000 in the same period of 2020, a decline of approximately 30.0%[5] - The net loss attributable to the owners of the company for the nine months ended September 30, 2021, was HKD 56,945,000, compared to HKD 63,642,000 in the same period of 2020, showing a decrease of about 10.6%[8] - The total comprehensive loss for the nine months ended September 30, 2021, was HKD 79,708,000, compared to HKD 78,423,000 in the same period of 2020, reflecting a marginal increase of about 1.6%[8] - For the nine months ended September 30, 2021, the company reported a loss of HKD 56,945,000, compared to a loss of HKD 76,889,000 for the same period in 2020, representing a 25.9% improvement[13] Operational Changes - The company terminated its beauty business effective June 30, 2021, and the results of this segment have been classified as discontinued operations[16] - The company’s operational strategy includes focusing on engineering products and related services, following the cessation of its beauty business[16] Costs and Expenses - The company incurred financing costs of HKD 5,536,000 for the three months ended September 30, 2021, significantly higher than HKD 1,600,000 in the same period of 2020, an increase of approximately 245.0%[5] - Selling and distribution costs for the nine months ended September 30, 2021, were approximately HKD 5,100,000, a decrease of about 18.8% compared to HKD 6,300,000 in 2020[35] - Administrative expenses for the nine months ended September 30, 2021, were approximately HKD 40,300,000, down about 40.5% from HKD 67,700,000 in 2020[35] Shareholder Information - Major shareholders include Tai Dong New Energy Limited, holding 151,425,197 shares, representing 29.91% of the company[51] - Greater Harmony Limited holds a beneficial ownership of 30,000,000 shares, representing 5.93% of the total equity[56] - Tai Dong has an interest in 151,425,197 shares, fully owned by Mr. Su Zhi Tuan, indicating significant control over the company[57] - HKBridge Absolute, through its general partner, holds 64,148,063 shares, which is also indirectly owned by Rongke Holdings[58] - On Top Global owns 24,397,946 shares, as it is a wholly-owned subsidiary of Hong Kong Bridge High-Tech Investment Fund L.P.[59] - KE10MA Holdings has an interest in 29,286,971 shares, with ownership split between Dr. Andrew Avi Goldenberg and Ms. Aviva C Goldenberg[59] - As of September 30, 2021, the total issued shares of the company were 506,219,666[60] - The company has not repurchased any of its listed shares during the nine months ending September 30, 2021[69] Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated third-quarter results for the nine months ending September 30, 2021[70] - The company has adhered to the corporate governance code as per GEM listing rules Appendix 15 throughout the nine months ending September 30, 2021[72] - The role of the Chairman and CEO is clearly defined and not held by the same individual, with Mr. Su Zhitun serving as Chairman[72] - The company is currently seeking a suitable candidate for the CEO position to comply with corporate governance standards[72] - Non-executive directors are appointed for a term of three years and are subject to re-election, ensuring rigorous governance practices[73] - The board consists of two executive directors, one non-executive director, and three independent non-executive directors as of the report date[73] Market Insights - The budget allocated for the "Internet+" action plan related to artificial intelligence is estimated at RMB 560 million[43] - The domestic intelligent robot market size reached RMB 53.59 billion in 2018, increasing by 14.4% year-on-year, and RMB 58.87 billion in 2019, with a year-on-year growth of 9.8%[43] - The expected market size for domestic robots is projected to reach RMB 81.3 billion in 2021, with a compound annual growth rate (CAGR) of 15.8% from 2021 to 2025, potentially reaching RMB 146.3 billion by 2025[43] - The integration of artificial intelligence in manufacturing is expected to achieve a CAGR of 39.7% from 2019 to 2027, with a projected market size of USD 27 billion by 2027[45] - The company anticipates that the advancement and application of robots will accelerate the commercial implementation process, particularly in sectors like finance, retail, and education[44] - The company’s AI service robots are expected to have a vast market and continue to expand in scale[44] - The government has continuously supported artificial intelligence for three years, emphasizing the development and application of big data and AI to assist in manufacturing transformation[45] - The company plans to integrate new technologies to diversify its robot products, enhancing usability and expanding into broader consumer markets[47] Losses and Impairments - The company recorded a goodwill impairment loss of approximately HKD 18,300,000 related to the termination of the beauty business[35] - The company reported a foreign exchange loss of HKD 5,367,000 for the three months ended September 30, 2021, compared to a loss of HKD 1,535,000 in the same period of 2020, indicating a deterioration of approximately 249.0%[8] - The company reported a foreign exchange gain of HKD 2,446,000 during the period, contributing positively to the overall financial results[13] - The company’s accumulated losses increased to HKD 646,654,000 as of September 30, 2021, from HKD 589,709,000 at the beginning of the year[13] - The loss attributable to shareholders for the nine months ended September 30, 2021, was approximately HKD 73,500,000, slightly reduced from HKD 73,900,000 in 2020[35]

Financial Performance - The company's revenue for the six months ended June 30, 2021, was HKD 12,466,000, an increase of 20.0% compared to HKD 10,384,000 for the same period in 2020[5] - Gross profit for the six months ended June 30, 2021, was HKD 1,275,000, a decrease of 38.7% from HKD 2,082,000 in the previous year[5] - The operating loss for the six months ended June 30, 2021, was HKD 51,266,000, compared to a loss of HKD 6,410,000 for the same period in 2020, indicating a significant increase in losses[5] - The net loss attributable to the owners of the company for the six months ended June 30, 2021, was HKD 45,055,000, compared to HKD 51,179,000 in the same period of 2020[5] - The company reported a total comprehensive loss of HKD 55,612,000 for the six months ended June 30, 2021, compared to HKD 59,465,000 for the same period in 2020[5] - The basic and diluted loss per share for continuing operations was HKD 0.0841 for the six months ended June 30, 2021, compared to HKD 0.1036 for the same period in 2020[66] - The company reported a net cash outflow from operating activities of HKD (22,342) million for the six months ended June 30, 2021[82] - The company reported a total revenue of HKD 24,349,000 for the six months ended June 30, 2021, with a loss before tax of HKD 58,100,000[117] - The company incurred a loss of HKD 58,100,000 for the period, reflecting a significant decline compared to the previous period's loss of HKD 55,068,000[117][125] Assets and Liabilities - Total assets decreased from HKD 141,237 million in December 2020 to HKD 61,850 million in June 2021, representing a decline of approximately 56.3%[68] - Cash and cash equivalents dropped significantly from HKD 57,966 million in December 2020 to HKD 29,209 million in June 2021, a decrease of about 49.5%[68] - Total liabilities decreased from HKD 259,780 million in December 2020 to HKD 235,929 million in June 2021, a reduction of approximately 9.2%[70] - Trade payables increased from HKD 1,521 million in December 2020 to HKD 4,309 million in June 2021, an increase of about 184.5%[70] - The total equity attributable to owners decreased from HKD 118,543 million in December 2020 to HKD 174,079 million in June 2021, reflecting a decline of approximately 47.0%[72] - The company’s total assets decreased from HKD 141,237,000 as of June 30, 2020, to HKD 61,850,000 as of June 30, 2021[125] Operational Changes - The company experienced a significant increase in administrative expenses, totaling HKD 50,088,000 for the six months ended June 30, 2021, compared to HKD 26,933,000 in the previous year[5] - The company reported a significant impairment loss of HKD 18,266,000 related to goodwill during the period[123] - The company has terminated its beauty business operations, which has been reclassified as discontinued operations in the financial statements[112] - The engineering products segment generated revenue of HKD 10,343,000, while the beauty products segment, which has been discontinued, contributed HKD 768,000[117] - The company incurred a goodwill impairment loss of approximately HKD 18,600,000 related to the terminated beauty business[173] Revenue Breakdown - Revenue from continuing operations in mainland China and Canada decreased to HKD 10,343,000 for the six months ended June 30, 2021, down from HKD 12,466,000 in the same period of 2020, representing a decline of approximately 17.0%[128] - Revenue from discontinued operations in Hong Kong was HKD 14,005,000 for the six months ended June 30, 2021, compared to HKD 18,784,000 in the same period of 2020, indicating a decrease of about 25.0%[128] - Engineering business revenue decreased by approximately 17.0% to about HKD 10,300,000, contributing to the total revenue[168] Shareholder Information - As of June 30, 2021, the group had a total of 506,219,666 shares issued, with a significant shareholder holding 29.91% of the shares[193][195] - Tai Dong holds a beneficial interest of 151,425,197 shares, representing approximately 29.91% of the company's total shares[198] - 港橋投资有限公司 (HK Bridge) has a beneficial interest of 41,666,666 shares, accounting for about 8.23% of the total shares[198] - HK Bridge Absolute Return Fund, L.P. owns 64,148,063 shares, which is approximately 12.67% of the total shares[198] - On Top Global Limited possesses 24,397,946 shares, representing around 4.82% of the total shares[198] - 麗科控股集團有限公司 (啟科控股) controls 130,212,675 shares, equating to about 25.72% of the total shares[198] - KE10MA Holdings Inc. has a beneficial interest of 29,286,971 shares, which is approximately 5.79% of the total shares[198] - Greater Harmony Limited holds 30,000,000 shares, representing about 5.93% of the total shares[200] - 高振順 also has a controlled interest in 30,000,000 shares, accounting for approximately 5.93% of the total shares[200] Employee and Operational Costs - As of June 30, 2021, the group employed 88 staff members, with total employee costs amounting to approximately HKD 16,800,000, a decrease from HKD 25,200,000 for the same period in 2020[184] - Administrative expenses decreased by approximately 46.2% to about HKD 26,900,000, primarily due to reduced R&D and employee costs[172] Market Outlook - The Chinese robot market is projected to reach RMB 81.3 billion in 2021, with a compound annual growth rate (CAGR) of 15.8% expected from 2021 to 2025, potentially reaching RMB 146.3 billion by 2025[188] - The government has allocated an estimated budget of RMB 560 million to support the development of artificial intelligence as a strategic emerging industry[187] - The integration of artificial intelligence in manufacturing is expected to achieve a CAGR of 39.7% from 2019 to 2027, with a market size projected to reach USD 27 billion by 2027[190] - The group anticipates that advancements in robotics and their applications will accelerate the commercial rollout of AI service robots, which are expected to have a broad market[189] - The group plans to continue integrating new technologies to diversify its robot products, enhancing usability and expanding into broader consumer markets[191]

Financial Performance - Revenue for the first quarter ended March 31, 2021, was HKD 11,931,000, a decrease of 9.7% from HKD 13,207,000 in the same period of 2020[5] - Gross profit for the first quarter was HKD 949,000, down 82.5% from HKD 5,420,000 year-on-year[6] - Operating loss for the first quarter was HKD 17,285,000, an improvement from a loss of HKD 20,721,000 in the previous year[7] - Loss before tax for the first quarter was HKD 21,426,000, compared to HKD 23,017,000 in the same period last year[8] - Total comprehensive loss for the first quarter was HKD 27,164,000, compared to HKD 23,300,000 in the previous year[11] - The company reported a basic and diluted loss per share of HKD 2.93, an improvement from HKD 4.55 in the same period of 2020[12] Revenue Breakdown - Revenue from engineering products and related services increased to HKD 7,415,000, up 102.1% from HKD 3,664,000 in the previous year[17] - Revenue from beauty treatment services decreased significantly to HKD 4,160,000, down 54.8% from HKD 9,200,000 year-on-year[17] - Revenue from beauty product sales increased by 3.8% to approximately HKD 400,000, while revenue from treatment services decreased by 54.8% to approximately HKD 4,100,000[32] - Revenue from engineering business, primarily from robot product sales, increased by 102.4% to approximately HKD 7,400,000, contributing significantly to total revenue[33] Other Income and Expenses - Other income for the first quarter was HKD 1,129,000, an increase of 19.8% from HKD 942,000 in the same period of 2020[19] - Administrative expenses were approximately HKD 16,900,000, a decrease of about 28.4% from HKD 24,400,000 in the previous year, primarily due to reduced R&D and employee costs[36] - Other income was approximately HKD 1,100,000, mainly consisting of government subsidies received during the period[34] Corporate Actions and Governance - The company did not recommend any dividend for the first quarter, consistent with the previous year[21] - The company has no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[37] - The company has adopted a new share option scheme to replace the previous one established in 2002[74] - No purchases, sales, or redemptions of the company's listed securities occurred during the three months ending March 31, 2021[76] - The audit committee consists of three independent non-executive directors, including Mr. Zhu Jianhong (Chairman), Mr. Tan Bili, and Dr. Wang Dangxiao, who reviewed the unaudited consolidated first-quarter results for the period ending March 31, 2021[77] - The board emphasizes the importance of corporate governance for the company's success and has implemented measures to ensure compliance with laws and regulations, maintaining high standards of integrity and transparency[78] - As of the report date, the board includes two executive directors, Mr. Su Zhitun (Chairman) and Mr. Sun Ziqiang (Vice Chairman), one non-executive director, Mr. Fan Yu, and three independent non-executive directors[79] Market Outlook and Strategy - The domestic robot market is expected to reach RMB 81,300,000,000 in 2021, with a projected compound annual growth rate of 15.8% from 2021 to 2025[40] - The company anticipates that advancements in robotics and their applications will accelerate commercial implementation, with a broad market for AI service robots[41] - The company plans to continue optimizing its pandemic-related service robots to support users during the ongoing pandemic[41] - The compound annual growth rate (CAGR) for artificial intelligence technology in the manufacturing sector is projected to reach 39.7% from 2019 to 2027, with an expected market size of $27 billion by 2027[42] - The company plans to diversify its robot products and enhance their usability, aiming to penetrate a broader consumer market[43] - The strategic development vision of the company has become clearer, focusing on the deep integration of AI technology and manufacturing[42] - The rapid development of the robotics industry is being supported by a series of government policies promoting the production and application of next-generation robots[43] - The company anticipates ongoing challenges in its beauty business due to the impact of the public health crisis on economic activities in Hong Kong[43] Shareholding Structure - The net proceeds from the issuance of 21 million shares in August 2017 amounted to HKD 130 million, with the remaining balance expected to be utilized by December 31, 2022[46] - As of March 31, 2021, the company had no significant contingent liabilities[44] - Tai Dong holds 151,425,197 shares, representing 29.91% of the company's total shares[54] - 港橋投資有限公司 owns 41,666,666 shares, accounting for 8.23% of the total shares[54] - HKBridge Absolute Return Fund, L.P. has 64,148,063 shares, which is 12.67% of the total shares[54] - 融科控股集團有限公司 controls 130,212,675 shares, equating to 25.72% of the total shares[54] - KE10MA Holdings Inc. owns 29,286,971 shares, representing 5.79% of the total shares[54] - Greater Harmony Limited holds 30,000,000 shares, which is 5.93% of the total shares[54] - The total number of issued shares as of March 31, 2021, is 506,219,666[60] - No other individuals or corporations have recorded interests in the company's shares as of March 31, 2021[60]

Financial Performance - The company reported a significant decline in revenue from beauty products and treatment services, with sales dropping approximately 48.1% to around HKD 1,300,000 and treatment services decreasing by 38.1% to about HKD 31,000,000 for the year ending December 31, 2020[21]. - The engineering business revenue contributed approximately HKD 22,800,000, reflecting a decrease of 36.2% in total revenue during the fiscal year 2020[21]. - The group recorded a revenue of approximately HKD 55,000,000 for the year, a decrease from HKD 88,200,000 in the previous fiscal year, with contributions from beauty products at HKD 1,300,000, treatment services at HKD 30,900,000, and engineering business at HKD 22,800,000[22]. - The overall gross loss for the year was approximately HKD 3,700,000, with a gross loss margin of 6.6%, compared to a gross profit margin of 25.7% in the previous year[23]. - The group reported a net loss of approximately HKD 131,900,000 for the year, compared to a loss of HKD 164,300,000 in the previous fiscal year, with losses from beauty business at HKD 1,400,000 and engineering business at HKD 89,200,000[29]. Market Challenges - The company faced significant challenges in 2020 due to the COVID-19 pandemic, leading to a decline in sales of beauty products and services[11]. - The global economic downturn and uncertainties in pandemic control have prompted companies to adopt strategic measures and explore post-pandemic development paths[13]. - The beauty business is expected to face ongoing challenges due to the significant impact of the public health crisis on economic activities in Hong Kong, particularly in consumer-driven and tourism-related sectors[50]. Robotics and Engineering - The engineering segment focuses on the development, design, production, and sales of intelligent robots and systems, covering various fields including police, commercial, civil, industrial, and medical applications[12]. - The company has nearly 40 years of experience in the robotics industry and aims to promote the popularization of robot products based on independent intellectual property rights and core technologies in China[12]. - New product launches include self-branded robots, patrol robots, special robots, inspection robots, and delivery robots, aimed at various applications in smart communities and other fields[13]. - The company launched smart patrol robots in January 2020, collaborating with multiple enterprises to enhance safety and implement a new concept of "smart tourism" in Xi'an, Shaanxi Province[15]. - The company’s 5G smart epidemic prevention robots were deployed in various hospitals and public areas, effectively managing crowds and monitoring temperatures to reduce the risk of virus transmission[17]. Strategic Initiatives - The company is committed to exploring the deep value of artificial intelligence and integrating advanced technologies such as multi-sensor systems, navigation technology, and high-speed communication[13]. - The company emphasizes the importance of intelligent services and creating a smart future through its innovative solutions[13]. - The company is actively responding to government measures and adapting its marketing strategies to cope with the crisis[11]. - The company is actively monitoring global and Chinese macroeconomic factors and plans to diversify products and expand into different regions to respond to economic fluctuations[72]. Corporate Governance - The company has not declared any final dividend for the fiscal year ending December 31, 2020, consistent with the previous fiscal year[82]. - The company has established appropriate insurance arrangements to cover directors against legal actions arising from corporate activities[95]. - The company has adopted a code of conduct for securities trading that is stricter than the GEM listing rules[150]. - The company has established a nomination committee to oversee the appointment and re-election of directors, ensuring compliance with corporate governance standards[158]. - The company has not appointed a CEO as of December 31, 2020, and is actively seeking a suitable candidate to comply with corporate governance codes[164]. Shareholder Information - As of December 31, 2020, the company had a total of 506,219,666 shares issued, with Mr. Su Zhi Tuan holding 151,425,197 shares, representing 29.91% ownership[97]. - The total number of issued shares as of December 31, 2020, is 506,219,666[114]. - The company has not entered into any significant contracts that would involve the directors or their related entities during the review period[102]. - The company has not purchased, sold, or redeemed any of its listed securities during the review year[140]. Employee and Operational Insights - The total employee cost for the year ended December 31, 2020, was approximately HKD 65,100,000, a decrease from HKD 74,600,000 for the year ended December 31, 2019, with 134 employees as of December 31, 2020, down from 228 employees[40]. - The employee compensation policy is based on job responsibilities, performance, experience, and industry standards[103]. - The company has been adjusting its business strategies in response to increased competition and market changes[78]. Risk Management - The company emphasizes the importance of effective risk management and internal controls to mitigate risks faced by the group[183]. - The internal audit function has been established, with a senior executive reporting directly to the audit committee[184]. - The company is actively monitoring changes in applicable laws and regulations to ensure compliance, including hiring external consultants and conducting regular audits[75].

[Cover and Important Notice](index=1&type=section&id=Cover%20and%20Important%20Notice) This section provides basic report information for Superman Intelligent Holdings Limited, highlighting its GEM listing and associated investment risks [Basic Report Information](index=1&type=section&id=Basic%20Report%20Information) This report details Superman Intelligent Holdings Limited's third-quarter performance for the nine months ended September 30, 2020, emphasizing GEM market risks - The company is Superman Intelligent Holdings Limited, stock code **8176**[1](index=1&type=chunk) - The report covers the third quarter for the nine months ended September 30, 2020[1](index=1&type=chunk) - The report emphasizes that the GEM market, designed for SMEs, carries higher investment risks and market volatility[2](index=2&type=chunk) [Financial Performance](index=3&type=section&id=Financial%20Performance) This section presents the condensed consolidated financial statements, including profit or loss, equity changes, and detailed notes on turnover, operating costs, and dividends [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) For the nine months ended September 30, 2020, the company experienced a year-on-year decline in turnover, stable operating loss, but an expanded total loss [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Turnover for the nine months ended September 30, 2020, decreased by 17.2% to HK$47.413 million, with loss for the period expanding to HK$72.491 million Key Financial Indicators (For the nine months ended September 30) | Indicator (HK$ Thousand) | For the nine months ended September 30, 2020 | For the nine months ended September 30, 2019 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Turnover | 47,413 | 57,274 | -17.2% | | Gross Profit | 17,621 | 25,809 | -31.7% | | Operating Loss | (62,160) | (61,714) | +0.7% | | Loss Before Tax | (70,400) | (63,293) | +11.2% | | Loss for the Period | (72,491) | (65,217) | +11.2% | | Loss Attributable to Owners of the Company | (63,642) | (70,008) | -9.1% | | Total Comprehensive Expenses for the Period | (78,423) | (65,048) | +20.6% | - Basic and diluted loss per share increased to **14.3 HK cents** from **12.8 HK cents** in the prior year[6](index=6&type=chunk)[19](index=19&type=chunk) [Consolidated Statement of Changes in Equity](index=5&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) As of September 30, 2020, total equity decreased to approximately HK$122 million from HK$186 million, primarily due to the period's comprehensive expenses - As of September 30, 2020, the company's total equity was **HK$121,593 thousand**[8](index=8&type=chunk) - The primary reason for the decrease in equity was total comprehensive expenses of **HK$78,423 thousand** for the period[8](index=8&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) Notes reveal the company's core engineering and beauty businesses, with beauty significantly impacted by the pandemic, while engineering grew; no dividends were declared [Company Information and Business](index=6&type=section&id=Company%20Information%20and%20Business) Incorporated in Bermuda, the company is an investment holding entity with subsidiaries focused on engineering and beauty product/service businesses - The company's principal businesses are divided into two main segments: engineering and beauty[10](index=10&type=chunk) [Turnover Analysis](index=7&type=section&id=Turnover%20Analysis) Total turnover for the nine months ended September 30, 2020, was HK$47.413 million, with beauty segment revenue significantly declining while engineering revenue grew Turnover Composition (For the nine months ended September 30) | Business Segment (HK$ Thousand) | For the nine months ended September 30, 2020 | For the nine months ended September 30, 2019 | Year-on-year Change | | :--- | :--- | :--- | :--- | | Sales of Beauty Products | 847 | 2,003 | -57.7% | | Provision of Treatment Services | 27,109 | 40,628 | -33.3% | | **Total Beauty Business** | **27,956** | **42,631** | **-34.4%** | | Provision of Engineering Products and Related Services | 19,457 | 14,643 | +32.9% | | **Total** | **47,413** | **57,274** | **-17.2%** | [Operating Loss and Cost Analysis](index=7&type=section&id=Operating%20Loss%20and%20Cost%20Analysis) Operating loss for the nine months ended September 30, 2020, was HK$62,160 thousand, primarily driven by staff costs and depreciation of right-of-use assets Key Deductions for Operating Loss (For the nine months ended September 30) | Key Deduction Item (HK$ Thousand) | For the nine months ended September 30, 2020 | For the nine months ended September 30, 2019 | | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 4,249 | 5,787 | | Depreciation of Right-of-Use Assets | 8,907 | 6,885 | | Staff Costs (including Directors' Emoluments) | 34,627 | 30,091 | [Dividends and Loss Per Share](index=8&type=section&id=Dividends%20and%20Loss%20Per%20Share) The Board recommended no dividends for the period, with basic loss per share calculated based on the period's loss attributable to owners and weighted average shares - The Board does not recommend the payment of any dividend for the period[18](index=18&type=chunk) - Basic loss per share was **14.3 HK cents**, calculated based on a loss attributable to owners of **HK$63,642 thousand** and **506,219,996** weighted average issued shares[6](index=6&type=chunk)[19](index=19&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the business and financial performance, discusses the outlook for the robotics and beauty segments, and details the use of proceeds from a prior share issuance [Business and Financial Review](index=9&type=section&id=Business%20and%20Financial%20Review) COVID-19 significantly impacted beauty business revenue, causing a 17.2% group turnover decline, while engineering revenue grew 32.9%; overall gross margin fell, but expense control mitigated loss expansion - COVID-19 led to a significant decline in beauty business revenue: sales of beauty products decreased by **57.7%**, and revenue from providing treatment services decreased by **33.3%**[22](index=22&type=chunk) - Engineering business revenue grew against the trend by approximately **32.9%**, contributing about **HK$19.5 million** to total revenue[22](index=22&type=chunk) Overview of Financial Performance for the First Nine Months of 2020 | Financial Indicator | For the nine months ended September 30, 2020 | For the nine months ended September 30, 2019 | | :--- | :--- | :--- | | Turnover | Approx. HK$47.4 million | Approx. HK$57.3 million | | Gross Profit Margin | Approx. 37.2% | Approx. 45.1% | | Selling and Distribution Costs | Approx. HK$8.7 million | Approx. HK$12.5 million | | Administrative Expenses | Approx. HK$75.3 million | Approx. HK$79.3 million | | Loss for the Period | Approx. HK$72.5 million | Approx. HK$65.2 million | [Business Outlook](index=11&type=section&id=Business%20Outlook) The company is optimistic about the robotics industry's future, driven by 5G and smart manufacturing, but remains pessimistic about the beauty business due to pandemic and local social impacts - The company is optimistic about the robotics industry, especially service and security robots, believing that the integration of **5G**, **AI**, and **cloud computing** will be future growth drivers[29](index=29&type=chunk)[32](index=32&type=chunk) - The pandemic has accelerated the application of robots in healthcare and security, with the development of a contactless economy acting as a catalyst for the industry[32](index=32&type=chunk) - The Board anticipates a pessimistic outlook for the Group's beauty business, affected by ongoing social conflicts and economic downturn in Hong Kong[33](index=33&type=chunk) [Use of Proceeds from Share Issuance](index=13&type=section&id=Use%20of%20Proceeds%20from%20Share%20Issuance) The company detailed the use of HK$130 million from a 2017 share issuance, with HK$11.7 million for factory construction remaining unused and its utilization period extended due to COVID-19 Use of Proceeds from 2017 Share Issuance (As of September 30, 2020) | Intended Use | Net Proceeds (HK$ Million) | Total Amount Used (HK$ Million) | Balance (HK$ Million) | | :--- | :--- | :--- | :--- | | Construction of Production Facilities | 50.0 | 38.3 | 11.7 | | General Working Capital | 80.0 | 80.0 | — | | **Total** | **130.0** | **118.3** | **11.7** | - The utilization period for the remaining **HK$11.7 million** has been extended due to COVID-19 and economic fluctuations, with use anticipated within the next **24 months**[37](index=37&type=chunk) [Corporate Governance and Shareholder Information](index=14&type=section&id=Corporate%20Governance%20and%20Shareholder%20Information) This section outlines directors' and major shareholders' interests, details the share option scheme, and confirms compliance with corporate governance standards [Directors' and Major Shareholders' Interests in Shares and Debentures](index=14&type=section&id=Directors'%20and%20Major%20Shareholders'%20Interests%20in%20Shares%20and%20Debentures) This section details directors' and major shareholders' interests, with Executive Director Mr. Su Zhi Tuan holding 29.91% as the largest shareholder - Chairman and Executive Director Mr. Su Zhi Tuan is deemed to hold **151,425,197** shares, representing **29.91%** of the company's issued share capital[40](index=40&type=chunk)[41](index=41&type=chunk) - Other major shareholders include Rongke Holdings Group Limited (indirectly holding **25.72%**) and HKBridge Absolute Return Fund, L.P. (holding **12.67%**)[44](index=44&type=chunk) [Share Option Scheme](index=17&type=section&id=Share%20Option%20Scheme) As of September 30, 2020, **2,614,325** unexercised share options were held by senior management and employees, with no changes during the period - As of September 30, 2020, there were **2,614,325** unexercised share options outstanding[54](index=54&type=chunk) - These share options were granted on January 3, 2017, with an exercise price of **HK$8.9** and are exercisable in four tranches[56](index=56&type=chunk) [Other Compliance and Governance Information](index=18&type=section&id=Other%20Compliance%20and%20Governance%20Information) The company's audit committee, composed of independent non-executive directors, reviewed quarterly results, and the company complied with GEM Listing Rules' corporate governance code - The company has established an audit committee, comprising three independent non-executive directors, which has reviewed the quarterly results[59](index=59&type=chunk) - The company has complied with the code provisions of the Corporate Governance Code throughout the third quarter of 2020[61](index=61&type=chunk) - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[58](index=58&type=chunk)

Financial Performance - For the six months ended June 30, 2020, the revenue was HKD 31,250,000, a decrease of 11.5% compared to HKD 35,600,000 for the same period in 2019[5]. - The gross profit for the six months was HKD 10,024,000, down 43.5% from HKD 17,677,000 in the previous year[5]. - The operating loss for the six months was HKD 47,119,000, compared to a loss of HKD 49,799,000 in the same period of 2019, indicating a slight improvement[5]. - The net loss attributable to owners for the six months was HKD 55,068,000, compared to HKD 52,038,000 in the previous year, reflecting a 5.8% increase in losses[7]. - The company reported a total comprehensive loss of HKD 55,068,000 for the six months ended June 30, 2020, compared to a loss of HKD 51,179,000 in the previous period[13]. - The basic and diluted loss per share for the six months was HKD 10.88, compared to HKD 10.97 for the same period in 2019[7]. - The company recorded a loss attributable to owners of approximately HKD 51,200,000 for the six months ended June 30, 2020, compared to a loss of about HKD 55,500,000 in 2019[74]. Assets and Liabilities - Total assets decreased to HKD 184,457,000 as of June 30, 2020, down from HKD 206,256,000 at the end of 2019[10]. - Current liabilities increased to HKD 110,238,000 from HKD 100,145,000 at the end of 2019, indicating a rise in short-term financial obligations[11]. - The company’s total equity was negative at HKD 26,689,000 as of June 30, 2020, compared to positive equity of HKD 27,018,000 at the end of 2019[11]. - The total liabilities of the company as of June 30, 2020, were HKD 211,146,000, with allocated liabilities from operating segments amounting to HKD 171,202,000[37]. - The total borrowings of the group as of June 30, 2020, were approximately HKD 76.4 million, an increase from HKD 55.9 million as of December 31, 2019[78]. Cash Flow - The company reported cash and cash equivalents of HKD 26,827,000, down from HKD 32,708,000 at the end of 2019[10]. - The net cash used in operating activities was HKD 26,411,000 for the six months ended June 30, 2020, an improvement from HKD 30,149,000 in the same period last year[18]. - The company generated net cash from financing activities amounting to HKD 24,940,000, slightly up from HKD 24,487,000 in the previous year[20]. - The cash and cash equivalents at the end of the period were HKD 26,827,000, down from HKD 27,717,000 at the end of the previous year[27]. Revenue Breakdown - Revenue from the sale of beauty products was HKD 18,186,000, while revenue from providing treatment services was HKD 12,466,000 for the six months ended June 30, 2020[34]. - Revenue from beauty product sales decreased by approximately 58.9% to about HKD 600,000, while revenue from treatment services decreased by approximately 33.3% to about HKD 18,200,000[71]. - Revenue from engineering business increased by approximately 80.9% to contribute about HKD 12,500,000 to total revenue, compared to HKD 6,900,000 in the same period of 2019[71]. Market and Strategic Outlook - The company anticipates that the 5G commercial era will significantly boost the service robot market in China, which is expected to become the largest market for service robots[90]. - The domestic service robot market share is currently less than 30%, indicating significant market potential for growth[91]. - The company anticipates that the aging population and rising labor costs will continue to release market potential for service robots in the future[91]. - The board expects challenges for the beauty business due to the severe economic conditions and social conflicts in Hong Kong[93]. - The company is preparing for potential risks due to the global economic downturn and uncertainties caused by the pandemic[92]. - The global supply chain risks have increased due to pandemic-related production halts and delays, affecting consumption, investment, and trade[93]. Corporate Governance and Shareholding - The company has adhered to the corporate governance code as per GEM listing rules during the mid-year period[122]. - The company holds 151,425,197 shares, representing approximately 29.91% of total shares issued as of June 30, 2020[94][96]. - The company’s major shareholders include Tai Dong with 29.91% and HKBridge Absolute Return Fund with 12.67% of shares[99]. - Tai Dong holds equity in 151,425,197 shares of the company, fully owned by Mr. Su Zhi Tuan[102]. - The total number of issued shares as of June 30, 2020, is 506,219,666[106]. - The Audit Committee, consisting of three independent non-executive directors, reviewed the group's unaudited interim results for the six months ending June 30, 2020[121].

Financial Performance - Revenue for the first quarter of 2020 was HKD 13,207,000, a decrease of 15.7% compared to HKD 15,670,000 in the same period of 2019[5] - Gross profit for the first quarter was HKD 5,420,000, down 17.4% from HKD 6,559,000 year-on-year[5] - Operating loss for the quarter was HKD 23,017,000, compared to a loss of HKD 24,065,000 in the previous year, indicating a slight improvement[8] - The company reported a loss attributable to owners of the company of HKD 23,748,000, compared to HKD 25,250,000 in the same quarter of 2019[8] - For the three months ended March 31, 2020, the company reported a basic loss per share of approximately HKD 0.047 (loss of HKD 23,748,000) compared to a loss of HKD 0.050 (loss of HKD 25,250,000) for the same period in 2019[25][26] - The company recorded a consolidated loss attributable to owners of approximately HKD 23,700,000 for the three months ended March 31, 2020, compared to HKD 25,200,000 in 2019, primarily due to increased revenue from the engineering business[33] Revenue Breakdown - Revenue from beauty product sales was HKD 343,000, down from HKD 700,000 in the previous year, reflecting a decline of 51.0%[19] - Revenue from treatment services was HKD 9,200,000, a decrease of 26.5% from HKD 12,412,000 year-on-year[19] - Revenue from engineering products and related services increased to HKD 3,664,000, up 43.3% from HKD 2,558,000 in the previous year[19] - Revenue from beauty product sales decreased by approximately 51.0% to about HKD 300,000, while revenue from treatment services decreased by approximately 25.9% to about HKD 9,200,000 for the three months ended March 31, 2020[30] - Revenue from engineering business increased by approximately 43.2% to about HKD 3,700,000, contributing to the overall revenue growth[30] Expenses and Cost Management - The company incurred administrative expenses of HKD 23,582,000, down from HKD 27,290,000 in the same period last year, showing a reduction of 13.3%[5] - Administrative expenses for the three months ended March 31, 2020, were approximately HKD 24,400,000, a decrease of about 10.5% from HKD 27,300,000 in 2019, mainly due to reduced R&D and employee costs[33] Market Outlook and Business Strategy - The company anticipates that the 5G commercial era will significantly boost the service robot market in China, making it the largest market for service robots[36] - The domestic service robot market share is currently less than 30%, indicating significant market potential for growth[37] - The company anticipates that the aging population and rising labor costs will continue to drive demand for service robots in various sectors, including healthcare and security[37] - The engineering business continues to develop and improve its robot products, with expectations for large-scale civil applications[30] - The board expects the beauty business to face challenges due to ongoing social unrest and economic downturn in Hong Kong[39] COVID-19 Impact - The company has delayed the resumption of production in several factories due to COVID-19, impacting supply chain and production schedules[43] - The company is closely monitoring the impact of COVID-19 on its financial performance, although it has not yet quantified the effects[43] - The global economic uncertainty caused by the pandemic poses significant risks to the company's business operations and market demand[39] Corporate Governance and Shareholding - The company’s board of directors proposed changing its English name from "SuperRobotics Limited" to "SuperRobotics Holdings Limited" to better reflect its business scope[45] - As of March 31, 2020, the company had 151,425,197 shares held by a controlled corporation, representing approximately 29.91% of total shares issued[47][49] - Tai Dong New Energy Holding Limited holds 151,425,197 shares, representing 29.91% of the total shares[52] - HKBridge Absolute Return owns 64,148,063 shares, accounting for 12.67% of the total shares[52] - On Top Global Limited has 24,397,946 shares, which is 4.82% of the total shares[54] - The total number of issued shares as of March 31, 2020, is 506,219,666[59] - 港橋金融控股有限公司 controls 130,212,675 shares, representing 25.72% of the total shares[54] - 合年有限公司 has a secured interest in 41,666,666 shares, which is 8.23% of the total shares[54] - KE10MA Holdings Inc. owns 29,286,971 shares, accounting for 5.78% of the total shares[54] - Greater Harmony Limited holds 30,000,000 shares, representing 5.93% of the total shares[54] Audit and Review - The audit committee reviewed the unaudited consolidated results for the three months ended March 31, 2020[70] - The board of directors includes three executive directors: Mr. Su Zhitun (Chairman), Mr. Sun Ziqiang (Vice Chairman), and Mr. Fu Hengke[71] - The board consists of one non-executive director and three independent non-executive directors, indicating a diverse governance structure[71] Other Income - Other income for the three months ended March 31, 2020, was approximately HKD 900,000, compared to HKD 600,000 in the same period of 2019[31] - The company has not purchased, sold, or redeemed any of its listed securities during the review period[68]

Financial Performance - The group's total revenue for the fiscal year ended December 31, 2019, was approximately HKD 88.2 million, an increase from HKD 63.7 million in the previous fiscal year[26]. - Revenue from beauty product sales decreased by approximately 29.3% to about HKD 2.5 million, while revenue from treatment services increased by approximately 1.4% to about HKD 50 million[25]. - Engineering business revenue increased by approximately 227.8%, contributing about HKD 35.7 million to total revenue[25]. - The overall gross profit for the fiscal year was approximately HKD 22.7 million, with a gross profit margin of about 25.7%, down from 30.9% in the previous year[27]. - The consolidated loss for the year was approximately HKD 164.3 million, compared to a loss of HKD 127.7 million in the previous fiscal year[33]. - Other income for the fiscal year was approximately HKD 3.4 million, compared to about HKD 1.9 million in the previous fiscal year[27]. - The total employee costs for the year were approximately HKD 74.6 million, a decrease from HKD 77.2 million in the previous fiscal year[49]. - Administrative expenses for the year ended December 31, 2019, were approximately HKD 114 million, a decrease from HKD 136 million in the previous fiscal year[32]. - The total financing costs for the year were approximately HKD 4.3 million, significantly lower than HKD 15 million in the previous fiscal year[33]. - Total assets as of December 31, 2019, were approximately HKD 206.3 million, down from HKD 258.8 million a year earlier[37]. - The company's total borrowings amounted to approximately HKD 55.9 million, with HKD 34.3 million being secured loans[36]. - The capital debt ratio increased to approximately 274% as of December 31, 2019, compared to 0.03% the previous year, due to an increase in other borrowings[43]. Business Operations - The company operates primarily in the beauty products sales, treatment services, and engineering products and related services sectors, with no significant changes in business nature during the review year[81]. - The engineering business focuses on the research, design, production, sales, installation, support, and maintenance of intelligent robots and systems across various sectors, leveraging nearly 40 years of experience[19]. - The company is committed to driving intelligent services and innovations through robotics and AI applications to uncover deeper value for users[19]. - The introduction of self-branded robots and patrol robots aims to serve various sectors, including public services and smart communities[17]. - The group launched various robots, including service robots and patrol robots, enhancing operational efficiency in hospitals and airports[21]. - The company actively responded to the COVID-19 pandemic by deploying contactless service robots, which provided comprehensive services for epidemic prevention[22]. - The company is actively adjusting production and operational arrangements to mitigate the impact of COVID-19 on its financial performance[63]. - The company is preparing for potential risks due to the ongoing global pandemic, which may affect both domestic and international economic recovery[64]. Market Conditions - The company anticipates growth in the beauty business in both the short and long term, despite an overall pessimistic market environment[19]. - The global economic uncertainty has increased due to ongoing U.S.-China trade disputes and local social unrest, prompting businesses to adopt a more cautious approach[19]. - The company emphasizes the importance of precise marketing and intelligent experiences to enhance its showroom performance in the retail telecommunications sector[20]. - The company expects that the demand for collaborative robots will expand rapidly, becoming a key area for domestic enterprises[59]. - The domestic service robot market currently holds less than 30% market share, indicating substantial growth potential[63]. - The company anticipates that the 5G commercial era will significantly boost the service robot market in China, making it the largest market for service robots[59]. Corporate Governance - The company has adopted corporate governance practices in line with GEM Listing Rules, with a focus on maintaining a diverse board composition[190]. - The board consists of eight members, including three executive directors and five non-executive directors, ensuring a balance of perspectives[193]. - The company has committed to regular reviews of board diversity to support strategic goals and sustainable development[196]. - The company has only two independent non-executive directors, which deviates from GEM Listing Rule 5.05(1) after the resignation of Mr. Yu Jiezhichun[197]. - The company has appointed Dr. Wang Dangxiao as an independent non-executive director, bringing the board into compliance with GEM Listing Rules 5.05(1), 5.28, and 5.34[197]. - The appointments of Mr. Cheng Yu and Dr. Wang Dangxiao are for a term of three years, requiring re-election at the next annual general meeting[198]. - The company has taken sufficient measures to ensure that its corporate governance practices are rigorous and in line with the corporate governance code[198]. Shareholder Information - As of December 31, 2019, the company had a total of 506,219,666 shares issued, with a significant shareholder, Mr. Su Zhitun, holding 151,425,197 shares, representing 29.91% of the total[119][118]. - Tai Dong New Energy Holding Limited holds a beneficial interest in 151,425,197 shares, representing 29.91% of the company's total shares as of December 31, 2019[135]. - HKBridge Absolute Return Fund L.P. owns 64,148,063 shares, accounting for 12.67% of the total shares[135]. - The company reported no final dividend for the fiscal year ending December 31, 2019, consistent with the previous year[102]. - The company has no distributable reserves for shareholders as of December 31, 2019, the same as the previous year[106]. - The company has made no significant acquisitions or expansions reported in the current fiscal year[108]. Employee and Sustainability Initiatives - The company recognizes employees as key to sustainable growth, providing a safe work environment and equal opportunities in employment and career development[87]. - The management team emphasized the importance of sustainability initiatives, aiming to reduce carbon emissions by I% by 2025[75]. - The company emphasizes sustainable business practices and aims to minimize environmental impact, with detailed environmental policies outlined in the annual report[82]. Risks and Compliance - The engineering business faces risks from rapid technological changes, with the company's future success dependent on its adaptability and continuous improvement of employee expertise[94]. - The company is committed to compliance with Chinese regulations for expanding into robot production, which may require obtaining necessary qualifications[95]. - The company has not purchased product liability insurance but may consider it in the future to mitigate risks associated with product defects[96]. - The company continuously monitors competitors and market conditions, adjusting its business strategies accordingly to maintain competitiveness[98]. - The company is subject to various legal and regulatory requirements in Hong Kong, China, and Canada, ensuring compliance through internal monitoring and training[83].

Financial Performance - For the three months ended September 30, 2019, the revenue was HKD 21,674,000, representing an increase of 7.4% compared to HKD 20,188,000 for the same period in 2018[7]. - The gross profit for the nine months ended September 30, 2019, was HKD 25,809,000, compared to a gross loss of HKD 1,778,000 in the same period of 2018, indicating a significant improvement[7]. - The operating loss for the three months ended September 30, 2019, was HKD 11,915,000, a reduction from the operating loss of HKD 43,406,000 in the same period of 2018[7]. - The net loss attributable to owners for the nine months ended September 30, 2019, was HKD 65,217,000, compared to HKD 88,935,000 for the same period in 2018, showing a decrease of 26.8%[9]. - The total comprehensive loss for the three months ended September 30, 2019, was HKD 14,621,000, compared to HKD 46,534,000 for the same period in 2018, reflecting a significant reduction[9]. - The company reported other income of HKD 3,510,000 for the three months ended September 30, 2019, compared to HKD 339,000 in the same period of 2018, indicating a substantial increase[7]. - The financing costs for the nine months ended September 30, 2019, were HKD 1,579,000, compared to no financing costs in the same period of 2018[7]. - The basic and diluted loss per share for the three months ended September 30, 2019, was HKD 2.6 cents, compared to HKD 9.2 cents for the same period in 2018[9]. - For the nine months ended September 30, 2019, the company reported a loss of approximately HKD 70,008,000, compared to a loss of approximately HKD 92,323,000 for the same period in 2018[26]. - Total revenue for the nine months ended September 30, 2019, was HKD 57,274,000, an increase from HKD 51,127,000 in the same period of 2018, representing a growth of approximately 12.5%[19]. Revenue Sources - The sales of beauty products for the nine months ended September 30, 2019, were HKD 2,003,000, down from HKD 2,705,000 in 2018, reflecting a decrease of approximately 26%[19]. - The company generated HKD 13,376,000 from providing treatment services for the nine months ended September 30, 2019, compared to no revenue reported for the same period in 2018[19]. - Revenue from beauty product sales decreased by approximately 25.9% to HKD 2.0 million, while revenue from treatment services increased by approximately 11.2% to HKD 40.6 million[28]. - The engineering business contributed approximately HKD 14.6 million to total revenue, representing an increase of about 23.1% compared to HKD 11.9 million in the same period of 2018[29]. Equity and Shares - The total equity attributable to owners as of September 30, 2019, was HKD 186,460,000, compared to HKD 317,817,000 as of January 1, 2019, indicating a decrease in equity[11]. - The total number of issued shares as of September 30, 2019, is 506,219,666[52]. - The company has a total of 5,732,000 stock options granted, with 3,266,000 options remaining unexercised as of September 30, 2019[57]. - The stock options have an exercise price of HKD 8.9, with a vesting schedule over several years[59]. - Tai Dong New Energy Holding Limited holds 151,425,197 shares, representing 29.91% of the company's total shares[46]. - China Hongqiao Group Limited has a controlled interest in 142,512,675 shares, accounting for 28.15% of the total shares[46]. - China Huarong Asset Management Co., Ltd. indirectly owns 116,684,729 shares, which is 23.05% of the total shares[46]. - HKBridge Absolute Return Fund L.P. holds 64,148,063 shares, representing 12.67% of the total shares[46]. - On Top Global Limited has an interest in 36,697,946 shares, which is 7.25% of the total shares[46]. Corporate Governance - The company has adopted a new stock option plan to replace the previous one established in 2002[56]. - All directors confirmed compliance with the company's securities trading code as of September 30, 2019[55]. - The audit committee consists of three independent non-executive directors, ensuring compliance with GEM listing rules[62]. - The company has maintained high standards of corporate governance throughout the third quarter of 2019, adhering to the GEM listing rules[64]. - Following the appointment of Dr. Wang, the composition of the board and committees complies with GEM listing regulations[62]. - The company has no significant competition interests from directors or major shareholders as of September 30, 2019[60]. Future Outlook - The company plans to continue its market expansion and product development strategies to improve future performance[7]. - The group anticipates significant market expansion potential in the robotics industry, particularly in civil security applications, with a current penetration rate of only 11% in China[36]. - The group plans to focus on three major series of robot products: police, commercial, and civilian, while providing customized solutions for various industries[36]. - The board does not expect any significant growth in the beauty business in the near future[37].