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].

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].