Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 35,600,000, an increase of 15.5% compared to HKD 30,939,000 for the same period in 2018[5] - Gross profit for the six months ended June 30, 2019, was HKD 17,677,000, compared to HKD 5,522,000 for the same period in 2018, reflecting a significant improvement[5] - Operating loss for the six months ended June 30, 2019, was HKD 49,799,000, compared to a loss of HKD 44,010,000 for the same period in 2018, indicating increased operational challenges[5] - The company reported a net loss attributable to owners of the company of HKD 55,504,000 for the six months ended June 30, 2019, compared to HKD 47,375,000 for the same period in 2018[7] - The company reported a net loss of HKD 55,504,000 for the six months ended June 30, 2019, compared to a loss of HKD 47,375,000 in the same period of 2018, indicating an increase in losses of approximately 17.5%[13] - The company reported a loss before tax of HKD 50,686,000 for the six months ended June 30, 2019, compared to a loss of HKD 44,010,000 for the same period in 2018[39] - The operating loss for the six months ended June 30, 2019, was HKD 55,504,000, compared to HKD 47,375,000 for the same period in 2018, reflecting an increase in losses of approximately 17.5%[50] Assets and Liabilities - Total assets as of June 30, 2019, were HKD 264,789,000, up from HKD 258,787,000 as of December 31, 2018[11] - Total liabilities increased to HKD 126,683,000 as of June 30, 2019, compared to HKD 72,327,000 as of December 31, 2018, indicating a rise in financial obligations[11] - The total assets of the group as of June 30, 2019, were approximately HKD 264,800,000, compared to HKD 258,800,000 as of December 31, 2018[72] - The total borrowings amounted to approximately HKD 25,400,000, a decrease from HKD 53,000,000 as of December 31, 2018[74] - The asset-liability ratio as of June 30, 2019, was approximately 9.2%, significantly up from 0.03% as of December 31, 2018[79] Cash Flow - Cash and cash equivalents decreased to HKD 27,717,000 as of June 30, 2019, from HKD 43,604,000 as of December 31, 2018, reflecting liquidity challenges[9] - The net cash used in operating activities was HKD 30,149,000 for the six months ended June 30, 2019, an improvement from HKD 51,572,000 in the previous year[18] - Cash generated from investing activities was a net outflow of HKD 5,147,000, contrasting sharply with a net inflow of HKD 87,065,000 in the same period of 2018[19] - Financing activities generated a net cash inflow of HKD 24,487,000, compared to a net outflow of HKD 1,530,000 in the previous year[20] - The cash and cash equivalents at the end of the period decreased to HKD 27,717,000 from HKD 112,765,000 at the end of June 2018, reflecting a decline of approximately 75.5%[24] Revenue Breakdown - Revenue from beauty product sales for the six months ended June 30, 2019, was HKD 1,456,000, down from HKD 1,962,000 in 2018, indicating a decline of about 26%[44] - Revenue from service offerings for the six months ended June 30, 2019, was HKD 27,252,000, an increase from HKD 23,960,000 in 2018, reflecting a growth of approximately 13%[44] - Revenue from engineering products and related services for the six months ended June 30, 2019, was HKD 6,892,000, up from HKD 5,017,000 in 2018, marking an increase of about 37%[44] - Revenue from external customers in Hong Kong for the six months ended June 30, 2019, was HKD 28,708,000, up from HKD 25,922,000 in 2018, representing an increase of approximately 10.9%[43] - Revenue from external customers in mainland China for the six months ended June 30, 2019, was HKD 6,492,000, significantly up from HKD 3,720,000 in 2018, indicating a growth of approximately 74%[43] Cost and Expenses - The company reported a depreciation expense of HKD 5,255,000 for right-of-use assets during the six months ended June 30, 2019[33] - Administrative expenses increased by 31.6% to approximately HKD 60,400,000, mainly due to a rise in research and development costs[71] - Total comprehensive expenses for the period amounted to HKD 53,899,000, which includes the net loss and foreign exchange differences[13] Shareholder Information - The company’s major shareholder, Tai Dong New Energy Limited, holds 151,425,197 shares, representing a 29.91% stake in the company[90][91] - China Huarong Asset Management Co., Ltd. holds 116,684,729 shares, accounting for 23.05% of the company's total shares[95] - HKBridge Absolute Return Fund owns 64,148,063 shares, which is 12.67% of the total shares[93] - On Top Global holds equity in 36,697,946 shares, with Hong Kong Bridge High-Tech being a wholly-owned subsidiary[97] - Greater Harmony owns equity in 30,000,000 shares, fully owned by Mr. Gao Zhenshun[100] Corporate Governance - The audit committee consists of three independent non-executive directors, ensuring compliance with GEM listing rules[111] - The company has adhered to the corporate governance code as per GEM listing rules during the mid-year period[112] - The board of directors includes three executive directors and three independent non-executive directors as of August 14, 2019[113]

Financial Performance - Revenue for the first quarter of 2019 was HKD 15,670,000, a decrease of 3.02% from HKD 16,159,000 in the same period of 2018[6] - Gross profit for the first quarter of 2019 was HKD 6,559,000, down 7.63% from HKD 7,101,000 in 2018[7] - Operating loss for the first quarter of 2019 was HKD 23,527,000, compared to a loss of HKD 19,629,000 in the previous year, representing a 19.4% increase in losses[8] - Total comprehensive loss for the first quarter of 2019 was HKD 23,849,000, compared to HKD 15,026,000 in 2018, indicating a 58.8% increase in total losses[12] - The company reported a basic and diluted loss per share of HKD 4.99 for the first quarter of 2019, compared to HKD 4.50 in the same period of 2018[13] - Other income for the first quarter of 2019 was HKD 624,000, a significant decrease of 68.4% from HKD 1,981,000 in 2018[25] - Total revenue for the three months ended March 31, 2019, was approximately HKD 15,700,000, a decrease of about 3.1% from HKD 16,200,000 in 2018[39] Revenue Breakdown - Revenue from beauty product sales was HKD 700,000, down 10% from HKD 776,000 in 2018[24] - Revenue from treatment services increased to HKD 12,412,000, up 5.97% from HKD 11,712,000 in 2018[24] - Revenue from engineering products and related services decreased to HKD 2,558,000, down 30.3% from HKD 3,671,000 in 2018[24] - The engineering business revenue decreased by approximately 30.3%, contributing about HKD 2,600,000 to total revenue, down from HKD 3,700,000 in the previous year[37] Expenses - Selling and distribution costs increased by approximately 54.5% to HKD 3,400,000, primarily due to advertising and promotional expenses in the beauty and engineering businesses[39] - Administrative expenses rose by approximately 39.3% to HKD 27,300,000, mainly due to increased legal and professional fees and research and development costs[40] Shareholder Information - As of March 31, 2019, the company had a total of 506,219,666 shares issued, with major shareholders holding significant stakes[49] - Tai Dong New Energy Holding Limited owns 151,425,197 shares, representing approximately 29.91% of the company's total shares[52] - KE10MA Holdings Inc. holds 29,286,971 shares, accounting for about 5.78% of the company's total shares[54] - HKBridge Absolute Return Fund L.P. has a stake of 64,148,063 shares, which is approximately 12.67% of the total shares[52] - On Top Global Limited owns 36,697,946 shares, representing about 7.25% of the company's total shares[56] - China Huarong Asset Management Co., Ltd. has an indirect interest in 116,684,729 shares, which is approximately 23.05% of the total shares[57] - The total equity interests of the major shareholders indicate a concentrated ownership structure within the company[52] Corporate Governance - The board of directors did not recommend any dividend for the first quarter of 2019, consistent with the previous year[28] - The company has not disclosed any additional interests or short positions held by its directors or senior management as of March 31, 2019[51] - The company continues to monitor and report on the interests of its directors and senior management in compliance with relevant regulations[51] - The audit committee, consisting of two independent non-executive directors, reviewed the unaudited consolidated results for the first quarter ending March 31, 2019[67] - The company is actively seeking to fill vacancies for independent non-executive directors and committee members to comply with GEM listing rules[67] - The board of directors includes two executive directors and two independent non-executive directors as of the report date[69] Future Outlook - The company anticipates significant growth potential in the Chinese robotics market, with a focus on police, commercial, and civilian robot products[42] - The domestic security industry is expected to maintain a growth rate of over 10%, with the market size exceeding HKD 600 billion in 2018[42] - The company plans to continue developing and commercializing its robotics products through local platforms, aiming for large-scale applications in civil sectors[37] - The board expects no significant growth in the beauty business moving forward[43] Share Options - A new share option scheme was adopted to replace the previous one, with 7,480,000 options granted at an exercise price of HKD 8.9, exercisable in four tranches from 2018 to 2022[62] - As of March 31, 2019, a total of 5,732,000 options were granted to senior management and employees, with 4,524,000 options exercised during the period[63] - There were no purchases, sales, or redemptions of the company's listed securities during the review period[66]

Business Performance - The beauty business did not experience significant growth due to the impact of the ongoing low temperatures in Hong Kong, the slowdown of China's economic growth, and the depreciation of the RMB against the USD [9]. - The company is optimistic about the long-term prospects of the beauty and treatment market, driven by the continuous growth of the middle-class population in China and increasing health awareness [9]. - Revenue from beauty product sales decreased by 16.3% to HKD 3.5 million, while revenue from treatment services increased by 16.4% to HKD 49.3 million [15]. - The engineering business contributed HKD 10.9 million to total revenue, accounting for 17.1% of the group's total revenue, a significant decrease of 66.2% compared to the previous year [16]. - The group's gross profit was approximately HKD 19.7 million, with a gross profit margin of 30.9%, down from 38.5% in the previous fiscal year [19]. - The consolidated loss for the year ended December 31, 2018, was approximately HKD 127.7 million, compared to a loss of HKD 97.1 million in the previous fiscal year [23]. - The group had no significant contingent liabilities as of December 31, 2018 [37]. - The company anticipates no significant growth in its beauty business due to the contraction of the Hong Kong tourism industry [46]. Strategic Initiatives - The company has implemented a series of measures to address challenges in the beauty business, including reforming sales models, optimizing product services, and adjusting workspace [9]. - The group established strategic partnerships with Shanghai Gaoxian Automation Technology and Nichiren Technology to enhance product competitiveness and efficiency [11]. - The company plans to leverage national policies to develop core business in the semiconductor equipment sector, aiming for a stronger position in the semiconductor industry [45]. - The company is closely monitoring the prospects of in-flight Wi-Fi services, as the Civil Aviation Administration of China has delegated Wi-Fi service permissions to airlines [45]. - The company is considering acquiring technologies that align with its business strategy to enhance its competitive position [73]. Financial Overview - In 2018, the group's total revenue was approximately HKD 63.7 million, a decrease from HKD 78.8 million in the previous fiscal year [18]. - Other income increased to approximately HKD 1.9 million, driven by bank deposit interest and miscellaneous income [19]. - Administrative expenses for the year ended December 31, 2018, were approximately HKD 136 million, an increase from HKD 122.7 million in the previous fiscal year [22]. - Total assets as of December 31, 2018, were approximately HKD 258.8 million, down from HKD 383.3 million a year earlier [24]. - The total borrowings of the group as of December 31, 2018, were approximately HKD 53,000, significantly reduced from HKD 1.6 million in the previous year [28]. - The capital debt ratio improved to approximately 0.03% as of December 31, 2018, compared to 0.5% a year earlier, primarily due to debt repayment during the year [31]. - Employee costs for the year ended December 31, 2018, totaled approximately HKD 77.2 million, an increase from HKD 73.6 million in the previous fiscal year [38]. Corporate Governance - The company has adopted corporate governance practices in line with the GEM listing rules, with some deviations explained in the corporate governance report [150]. - The board consists of eight directors, including four executive directors and four independent non-executive directors, ensuring a balanced and diverse composition [155]. - The company has established a nomination committee to manage the appointment and re-election of directors [160]. - The company has established a remuneration committee to propose remuneration policies for directors and senior management, which held two meetings in the fiscal year ending December 31, 2018 [171][172]. - All independent non-executive directors confirmed their independence in accordance with GEM listing rules during the review period [170]. Market Insights - The global AI investment reached a cumulative total of $191.4 billion over 18 years, with the US accounting for $97.8 billion (50.10%) and China for $63.5 billion (33.18%) [44]. - The domestic security industry in China exceeded a production value of 600 billion yuan in 2018, with an expected growth rate of over 10% [44]. - The penetration rate of civil security in the US is 50%, while China's penetration rate is only 11%, indicating significant market potential for civil security robots [44]. - The sales of semiconductor equipment in mainland China reached $8.23 billion in 2017, representing a year-on-year growth of 27% [45]. Sustainability and Social Responsibility - The company is committed to achieving successful business operations without impacting the environment, focusing on sustainable development [62]. - The company emphasizes sustainable operations while balancing the interests of stakeholders, including employees, customers, suppliers, and the community [64]. - The company aims to provide high-quality and socially responsible products and services while minimizing environmental and social impacts [199]. - The report complies with the GEM Listing Rules Appendix 20 on Environmental, Social and Governance reporting guidelines [199]. Shareholder Information - The company did not recommend any final dividend for the fiscal year ended December 31, 2018, consistent with the previous fiscal year [81]. - As of December 31, 2018, the company had no distributable reserves for shareholders, unchanged from December 31, 2017 [86]. - The company reported a total of 506,219,666 shares issued as of December 31, 2018, with significant shareholdings by key executives [98]. - The company has adopted a share option scheme to provide incentives to directors and eligible participants [107]. Risk Management - The company has established an internal audit function, with a senior executive reporting directly to the audit committee [187]. - The board confirmed that the risk management and internal control systems are satisfactory and effective as of December 31, 2018 [184]. - The company may face significant impacts on its engineering business due to unexpected economic, political, or social events in China [70]. - The company faces increased competition and pricing pressure in its operating markets, necessitating adjustments to its business strategies [76][77].