香港交易及結算所有限公司以及香港聯合交易所有限公司對本公告之內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不會就因本公告全部或任何部分 內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於開曼群島註冊成立的有限公司） （股份代號：08178） 二零二三年第三季度業績公告 中國信息科技發展有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附屬公司 截至二零二三年九月三十日止九個月之未經審核業績。本公告列載本公司二零二三年第 三季度報告全文，乃符合香港聯合交易所有限公司GEM證券上市規則中有關季度業績初 步公告附載的資料之相關要求。本公司將於適當時候發送本公司二零二三年第三季度報 告的印刷版本予本公司股東。 承董事會命 中國信息科技發展有限公司 主席兼行政總裁 黃景兆 香港，二零二三年十一月九日 於本公告日期，董事會成員包括執行董事黃景兆先生（主席兼行政總裁）及張棋深先生； ...

香港交易及結算所有限公司以及香港聯合交易所有限公司對本公告之內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不會就因本公告全部或任何部分 內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於開曼群島註冊成立的有限公司） （股份代號：08178） 有關二零二二年年報 之補充公告 茲提述中國信息科技發展有限公司（「本公司」，連同其附屬公司統稱「本集團」）截至二零 二二年十二月三十一日止年度之年報（「二零二二年年報」）。 本公告旨在提供二零二二年年報之補充資料，內容有關本公司若干重要投資、本公司於 二零一二年八月二日採納之購股權計劃及本公司應收貸款。 重要投資 於二零一九年八月二十八日，本集團收購於中國註冊成立的廣州市德煌投資有限公司（「德 煌」）的19%股權及本金額為人民幣51,199,000元的應收貸款，代價為人民幣66,341,000元， 以向賣方發行承兌票據的方式結清。德煌主要業務為提供商業服務，其主要資產為德煌 所擁有位於廣州市南沙區市南公路南側的一幅土地及五座（二零二一年：四座）數據中心 主樓及配套工廠辦公樓（包括地面土地）。 於二零二二年十二月三十一日，其按公平值約32,1 ...

Financial Performance - For the six months ended June 30, 2023, the company's revenue was approximately HKD 40,365,000, an increase of 16.2% compared to HKD 34,735,000 for the same period last year[9]. - The loss attributable to owners of the company for the same period was approximately HKD 3,785,000, a significant reduction from HKD 21,028,000 in the previous year, primarily due to the sale of a subsidiary generating HKD 8,756,000 and a decrease in R&D expenses from approximately HKD 14,324,000 to HKD 5,256,000[9]. - The loss per share from continuing operations was approximately HKD 0.0672, compared to HKD 0.5007 (restated) for the same period last year[9]. - The company's gross profit for the first half of 2023 was approximately HKD 12,640,000, a decrease of 3.7% compared to HKD 13,131,000 in the prior year[60]. - The company reported a loss attributable to equity holders of approximately HKD 3,785,000 for the first half of 2023, compared to a loss of HKD 21,028,000 in the same period last year[64]. - The company recorded a pre-tax loss of HKD 17,148,000 for the six months ended June 30, 2023, compared to a loss of HKD 21,028,000 in the same period of 2022[95]. - The company reported a loss of HKD 1,576,000 for the three months ended June 30, 2023, compared to a loss of HKD 18,597,000 for the same period in 2022, representing a decrease of approximately 91.5%[71]. - For the six months ended June 30, 2023, the loss was HKD 4,654,000, down from HKD 22,460,000 in the previous year, indicating a reduction of about 79.3%[71]. Dividend and Shareholder Actions - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2023, consistent with the previous year[9]. - The company completed a rights issue on April 11, 2022, issuing a total of 171,570,664 shares, with net proceeds estimated at approximately HKD 24,710,000[14]. - The company completed a placement agreement on April 4, 2023, successfully placing 7,642,000 shares at a price of HKD 1.93 per share, representing approximately 12.93% of the company's issued share capital post-placement[26]. - The company has proposed a new share option scheme on April 21, 2023, to incentivize eligible participants for their contributions[31]. - The company issued 7,642,000 shares at a price of HKD 1.93 per share during a placement completed on April 4, 2023[113]. Research and Development - The company incurred research and development expenses of HKD 5,256,000 for the six months ended June 30, 2023, down from HKD 14,324,000 in the same period of 2022[92]. - The company plans to continue investing in its R&D team to promote its AI products and services, requiring funding and experienced experts[55]. - The company is currently in the optimization phase of its AI products and is conducting product concept validation, with remaining net proceeds expected to be fully utilized by Q3 2023[15]. Strategic Focus and Collaborations - The company continues to focus on developing innovative advanced technologies, particularly in AI and cloud technology, while prudently managing and allocating resources[8]. - The company is actively collaborating with industry talents to expand its customer network and enhance existing IT solution services[8]. - The company is leveraging synergies from collaborations and its own AI developments to improve service offerings[8]. - The company entered into a non-binding memorandum of understanding with Autostereoscopic 3D Limited to explore collaboration using proprietary AI technology and big data[23]. - The company is collaborating with various interested parties and has integrated its AI Booster into the Hong Kong government's innovation lab to provide effective predictive analytics solutions[47]. Financial Position and Assets - As of June 30, 2023, the company's cash and bank balances were approximately HKD 17,536,000, an increase from HKD 13,877,000 as of December 31, 2022[65]. - The total borrowings of the company as of June 30, 2023, were approximately HKD 60,673,000, down from HKD 136,960,000 as of December 31, 2022[65]. - The company's total assets decreased from HKD 332,650,000 as of December 31, 2022, to HKD 278,219,000 as of June 30, 2023, a decline of about 16.4%[73]. - Current assets increased from HKD 136,134,000 at the end of 2022 to HKD 175,783,000 by June 30, 2023, an increase of approximately 29.1%[73]. - The company reported a total of HKD 110,629,000 in prepayments and other receivables as of June 30, 2023, significantly higher than HKD 22,816,000 at the end of December 2022[102]. Market Outlook and Future Plans - The company anticipates a gradual recovery in the global market as COVID-19 restrictions ease and business activities resume[53]. - The company is preparing for future challenges while seizing sustainable growth opportunities[8]. - The company plans to explore potential collaborations and projects, particularly in artificial intelligence and related IT services, to create long-term benefits[57]. Corporate Governance and Compliance - The company has complied with the GEM Listing Rules regarding corporate governance, except for the deviation where the Chairman also serves as the CEO[178]. - The audit committee consists of three members, all of whom are independent non-executive directors[180]. - The board is responsible for ensuring a robust internal control and risk management system to protect shareholder investments and the group's assets[184]. - The board includes both executive and non-executive directors, ensuring a diverse governance structure[188]. Investment Properties and Fair Value - The company’s investment properties were valued at HKD 245,243,000 as of June 30, 2023, down from HKD 256,671,000 at the beginning of the year[99]. - The company’s investment properties experienced a foreign exchange adjustment loss of HKD 11,428,000 during the first half of 2023[120]. - The fair value of non-listed equity investments was HKD 10,852,000 as of June 30, 2023, compared to HKD 43,025,000 at the end of 2022[120]. Stock Options and Employee Incentives - The company aims to attract and retain top talent through the share option scheme, rewarding contributions to the group's growth[146]. - The number of unexercised stock options as of June 30, 2023, is 4,102,775, with a weighted average exercise price of HKD 1.88[131]. - The 2023 Share Option Scheme allows the company to grant a total of 6,176,523 share options, equivalent to 10% of the issued shares as of the report date[163].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而 產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立的有限公司） （股份代號：08178） 二零二三年中期業績公告 中國信息科技發展有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附屬公司 截至二零二三年六月三十日止六個月的未經審核業績。本公告列載本公司二零二三年中 期報告全文，乃符合香港聯合交易所有限公司GEM證券上市規則中有關中期業績初步公 告附載的資料之要求。本公司將於適當時候送交二零二三年中期報告的印刷版本予本公 司股東。 承董事會命 中國信息科技發展有限公司 主席兼行政總裁 黃景兆 香港，二零二三年八月九日 於本公告日期，董事會成員包括執行董事黃景兆先生（主席兼行政總裁）及張棋深先生； ...

Financial Performance - For the three months ended March 31, 2023, the group's revenue was approximately HKD 32,977,000, an increase of 57.9% compared to HKD 20,887,000 in the same period last year[10]. - The loss attributable to the owners of the company for the same period was approximately HKD 3,027,000, compared to a loss of HKD 3,880,000 in the previous year[10]. - The loss per share for the three months ended March 31, 2023, was approximately HKD 5.88, compared to HKD 11.31 in the previous year (restated)[10]. - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2023, consistent with the previous year[10]. - The group recorded revenue of approximately HKD 32,977,000 for the three months ended March 31, 2023, representing a 57.9% increase compared to approximately HKD 20,887,000 for the same period last year[48]. - The revenue from the IT solutions and maintenance segment increased from approximately HKD 16,856,000 to approximately HKD 29,665,000 during the same period[48]. - The total sales and service costs for the first quarter of 2023 were approximately HKD 24,227,000, a 74.0% increase from approximately HKD 13,922,000 in the previous year[48]. - The gross profit for the first quarter of 2023 was approximately HKD 8,750,000, up from approximately HKD 6,965,000 in the same period last year[48]. - Administrative expenses increased by 40.1% to approximately HKD 8,376,000 compared to approximately HKD 5,978,000 in the previous year[49]. - The group reported a loss attributable to owners of the company of approximately HKD 3,027,000 for the three months ended March 31, 2023, compared to a loss of approximately HKD 3,880,000 in the same period last year[49]. - The company reported a pre-tax loss of HKD 2,677,000, which is an improvement from a pre-tax loss of HKD 2,787,000 in the previous year[65]. - The company reported a total comprehensive loss of HKD 1,305,000 for the period, compared to a total comprehensive loss of HKD 3,486,000 for the same period in 2022, showing an improvement of approximately 63%[72]. Research and Development - Research and development expenses for the smart retail cloud platform and IoT cloud platform network security amounted to approximately HKD 2,180,000 during the period[10]. - The group plans to continue investing in research and development in areas such as IoT, AI, and cloud technologies to enhance service offerings and improve business efficiency[44]. - The company is focusing on developing advanced technologies, particularly in AI and cloud technology, while prudently controlling and allocating resources[9]. - The company is leveraging synergies from collaborations and self-developed AI integrations to enhance its service offerings[9]. - The company has initiated the launch of a tailored CRM system named "Retail Booster" for the retail industry, which utilizes machine learning algorithms to analyze member behavior data[38]. - The AI Booster solution includes a simplified AI logistics and CRM system aimed at small and medium-sized enterprises, providing end-to-end solutions for model development and monitoring[37]. - The company continues to invest resources in optimizing the CRM system to provide advanced and user-friendly technology for business management[38]. - The company is focusing on the development of AI and business intelligence technologies to accelerate adoption across various industries and regions[35]. Strategic Collaborations and Partnerships - The company is actively collaborating with industry talents to expand its customer network and enhance existing IT solutions[9]. - The company signed a non-binding memorandum of understanding with Autostereoscopic 3D Limited to explore collaboration combining proprietary AI technology and big data[24]. - The company has partnered with Jian Da (Hong Kong) Limited to offer comprehensive email security solutions, enhancing its service offerings in the IT market[32]. - The company is actively collaborating with various interested parties to promote the "Retail Booster" and AI products, which are expected to contribute to revenue in the future[38]. - The company entered into a share exchange agreement with Bonanza Goldfields Corp., exchanging 26,520,387 shares for 218,574,618 shares of Bonanza, valued at approximately HKD 3,580,252[18]. - The share exchange agreement aims to establish a strategic alliance with Bonanza, enhancing collaboration in AI, blockchain, and DOT technologies[19]. Financial Position and Equity - The company has experienced a significant improvement in its financial position during the reporting period[9]. - The total equity attributable to the owners of the company as of March 31, 2023, was HKD 274,823,000, a decrease from HKD 350,786,000 as of January 1, 2023, indicating a decline of approximately 22%[72]. - The company’s retained earnings as of March 31, 2023, were HKD 103,934,000, down from HKD 189,218,000 as of January 1, 2022, indicating a decrease of approximately 45%[72]. - The company has extended the maturity dates of loans totaling approximately HKD 58,012,000 to October 15, 2023, and September 2, 2023, respectively[30]. - The company completed a rights issue on April 11, 2022, issuing a total of 171,570,664 shares, with 115,027,076 shares allocated through provisional allotment and 56,543,588 shares through additional applications[15]. - The estimated net proceeds from the rights issue, after deducting related expenses, will be approximately HKD 24,710,000, with around HKD 23,000,000 allocated for the development of smart logistics and CRM systems[15]. - As of March 31, 2023, the company utilized approximately HKD 17,093,000 for R&D and related employee expenses for the smart logistics and CRM systems, and HKD 1,710,000 for general operating funds[16]. - The remaining net proceeds of approximately HKD 5,907,000 are expected to be fully utilized by the third quarter of 2023, delayed from the previously disclosed first quarter[16]. Share Capital and Options - The company’s share capital increased from HKD 3,431,000 on January 1, 2022, to HKD 5,147,000 on March 31, 2023, reflecting an increase of approximately 50%[72]. - The weighted average number of ordinary shares issued during the three months ended March 31, 2023, was 51,471,199, an increase from 34,314,132 shares in the same period of 2022, reflecting a growth of approximately 50%[67]. - A total of 4,125,149 stock options remain unexercised, representing 8.20% of the issued shares as of the report date[84]. - The maximum number of stock options granted to each participant under the 2012 stock option plan cannot exceed 1% of the issued shares as of the grant date[85]. - The exercise period for stock options granted on May 13, 2021, and June 16, 2022, lasts for 10 years, expiring on May 12, 2031, and June 15, 2032, respectively[86]. - The stock options granted have no vesting period or performance targets[93]. - The company has adopted a share option scheme to incentivize selected participants, with a total of 23,900,000 options granted in May 2021 and an additional 16,360,000 options granted in June 2022[80][81]. Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules Appendix 15, except for the deviation regarding the roles of the Chairman and CEO being held by the same individual[100]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the three months ended March 31, 2023, confirming compliance with applicable accounting standards and GEM Listing Rules[103]. - There were no changes in director information during the three months ended March 31, 2023[105]. - The board proposed a new share option scheme to be adopted at a special general meeting on May 15, 2023, following the expiration of the previous scheme[106].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立的有限公司） （股份代號：08178） 二零二三年第一季度業績公告 中國信息科技發展有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附屬公司 截至二零二三年三月三十一日止三個月期間之未經審計業績。本公告列載本公司二零 二三年第一季度報告全文，乃符合香港聯合交易所有限公司GEM證券上市規則中有關季 度業績初步公告附載的資料之要求。本公司將於適當時候發送二零二三年第一季度報告 的印刷版本予本公司股東。 承董事會命 中國信息科技發展有限公司 主席兼行政總裁 黃景兆 香港，二零二三年五月九日 於本公告日期，董事會成員包括執行董事黃景兆先生（主席兼行政總裁）及張棋深先生； ...

Economic Impact - The company's operations were significantly impacted by strict COVID-19 control measures in Hong Kong and China, reflecting the overall market conditions [10]. - The actual GDP of Hong Kong decreased by 4.5% in Q3 2022 compared to the same period in 2021, indicating economic contraction [9]. - The overall economic environment remains volatile, with inflation pressures in capital and consumer markets expected to persist in the short term [11]. AI Market and Technology Development - The global AI market was valued at approximately $59.67 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 39.4%, reaching $422.37 billion by 2028 [9]. - The company anticipates continued demand for AI technologies, with expectations of significant opportunities in the AI market in 2023 [11]. - The company is actively seeking potential projects or collaborations to leverage opportunities in the AI sector [11]. - The company is currently in the optimization phase of AI products and conducting product concept validation [25]. - The AI Booster solution includes a simplified AI logistics and CRM system aimed at SMEs, providing real-time information sharing and personalized recommendations [41]. - The company has invested significant resources in developing the AI Booster solution to automate machine learning and enhance analytics, transforming complex data into actionable insights [41]. - The company plans to focus on developing IoT, AI, cloud, and other technologies to improve service efficiency for clients [48]. Financial Performance - The group’s revenue for 2022 was approximately HKD 62,957,000, a decrease of 4.7% from HKD 66,092,000 in 2021, primarily due to a decline in computer hardware and software sales from HKD 29,036,000 to HKD 14,728,000 [50]. - Gross profit for 2022 was approximately HKD 21,034,000, down from HKD 23,706,000 in 2021, reflecting a decrease of about HKD 2,672,000 due to economic downturn and increased costs without raising prices [53]. - The group recorded a loss attributable to owners of approximately HKD 82,295,000 in 2022, compared to HKD 90,326,000 in 2021, primarily due to fair value losses on investment properties and R&D expenses [61]. - The company reported a loss of approximately HKD 85,612,000 for the fiscal year ending December 31, 2022 [199]. - As of December 31, 2022, the company's net current liabilities amounted to approximately HKD 20,986,000, indicating significant uncertainty regarding the company's ability to continue as a going concern [199]. Investment and Funding - The company has increased investment in research and development (R&D) to enhance its internal R&D team and develop various solution services for different industries [10]. - The company raised approximately HKD 24,710,000 from a rights issue, with around HKD 23,000,000 allocated for R&D of smart logistics and CRM systems [25]. - The remaining net proceeds of approximately HKD 8,087,000 are intended for R&D of smart logistics and CRM systems, with expected full utilization by Q3 2023 [25]. - The company entered into a share exchange agreement with Bonanza Goldfields Corp., exchanging 26,520,387 shares valued at approximately HKD 3,580,252 (USD 459,007) for 218,574,618 shares of Bonanza [31][32]. - A loan agreement was established for a loan amount of RMB 50,000,000, with the company providing a corporate guarantee for the subsidiary's payment obligations [16]. Corporate Governance - The board consists of six members, including two executive directors and three independent non-executive directors, responsible for corporate strategy and risk management [156]. - The company has adopted high standards of corporate governance to protect the interests of shareholders and stakeholders [151]. - The nomination and remuneration committee evaluates the independence and contributions of independent non-executive directors annually [2]. - The company has implemented a code of conduct for directors' securities transactions, adhering to GEM listing rules [6]. - The independent non-executive directors' appointment terms are not fixed, and they must stand for re-election at the annual general meeting [10]. Shareholder and Market Activities - The rights issue was oversubscribed by approximately 18.46%, with a total of 203,244,024 shares applied for against 171,570,664 shares available [22]. - The board proposed a share consolidation, merging every ten existing shares into one share with a par value of HKD 0.1, to comply with GEM listing rules [35]. - The proposed share consolidation and change in trading unit were approved at the special general meeting on December 1, 2022 [36]. - Major shareholder Zhang Rong holds 10,352,499 shares, representing 20.11% of the company's issued share capital [134]. Legal and Compliance Matters - The company is actively seeking legal advice regarding ongoing litigation and assessing its potential impact on operations [29]. - The court dismissed the claims from the buyer's guarantor against the seller and the target company, ordering the buyer's guarantor to pay legal costs [29]. - The company has complied with all relevant laws and regulations impacting its business operations, with no significant violations reported during the review year [140]. Employee and Social Responsibility - The company’s commitment to employee development and workplace safety is crucial for attracting and retaining top talent [154]. - The company encourages stakeholder participation in environmental and social activities to benefit the community [143]. - The company is committed to maintaining the highest environmental and social standards to ensure sustainable business development [138].

Financial Performance - For the six months ended June 30, 2022, the revenue was approximately HKD 34,735,000, an increase of 3.1% compared to HKD 33,691,000 for the same period last year[8]. - The loss attributable to owners of the company for the same period was approximately HKD 21,028,000, compared to HKD 8,792,000 in the previous year, primarily due to R&D expenses of approximately HKD 14,324,000 related to the Retail Booster and IoT cloud platform[8]. - The loss per share attributable to owners of the company was approximately HKD 0.0501, compared to HKD 0.0310 (restated) in the previous year[8]. - The group recorded a net loss attributable to the owners of the company of approximately HKD 21,028,000 for the six months ended June 30, 2022, compared to HKD 8,792,000 in the previous year[39]. - The company reported a net loss of HKD 9,285 thousand for the six months ended June 30, 2022, compared to a net loss of HKD 22,460 thousand for the same period in 2021, indicating an improvement of 58.7%[58]. - The group incurred a loss of approximately HKD 1,162,000 from trading investment securities, compared to a profit of HKD 3,829,000 in the previous year[38]. Dividends and Share Issuance - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the previous year[8]. - The company proposed a rights issue on January 5, 2022, offering 171,570,664 shares at a subscription price of HKD 0.15 per share, aiming to raise approximately HKD 25,740,000 before expenses[12]. - The rights issue was oversubscribed by approximately 118.46%, with total applications for 203,244,024 shares received[15]. - After the rights issue, the estimated net proceeds were approximately HKD 24,710,000, with around HKD 23,000,000 allocated for R&D of smart logistics and CRM systems[16]. - The company issued 171,570,664 rights shares at a price of HKD 0.15 per share, raising approximately HKD 25,740,000 before expenses[112]. Research and Development - The company is focusing on the development of innovative technologies, particularly in AI and cloud technology, and has begun promoting the AI CRM system "Retail Booster" with positive feedback received[9]. - The company is committed to continuous improvement and optimization of the "Retail Booster" and other AI models for various industries[11]. - Research and development expenses for the six months ended June 30, 2022, amounted to HKD 14,324,000, with no expenses reported for the same period in 2021[82]. - The company plans to invest more resources in R&D for IoT, AI, cloud, and other technologies to enhance service quality and business efficiency[33]. Economic Environment and Market Conditions - The global economic environment remains unstable due to factors such as the resurgence of COVID-19 cases and geopolitical tensions, impacting business sentiment[9]. - The company is actively monitoring the impact of COVID-19 and geopolitical tensions on its financial status and operations, planning to adjust business strategies accordingly[33]. Financial Position and Assets - As of June 30, 2022, the group's cash and bank balances were approximately HKD 20,330,000, compared to HKD 6,714,000 as of December 31, 2021[41]. - The total borrowings of the group as of June 30, 2022, were approximately HKD 134,244,000, up from HKD 87,439,000 as of December 31, 2021, resulting in a debt-to-equity ratio of 0.39[41]. - Non-current assets increased to HKD 442,385 thousand as of June 30, 2022, compared to HKD 394,673 thousand as of December 31, 2021, representing a growth of 12.0%[53]. - Current assets decreased to HKD 74,098 thousand as of June 30, 2022, down from HKD 93,189 thousand as of December 31, 2021, a decline of 20.5%[53]. - The company's total equity decreased to HKD 344,633 thousand as of June 30, 2022, down from HKD 354,262 thousand as of December 31, 2021, a decrease of 2.4%[55]. Operational Performance - The total sales and service costs for the first half of 2022 were approximately HKD 21,604,000, up 22.0% from HKD 27,682,000 in the previous year, primarily due to shipping delays and hardware supply shortages[37]. - The group's gross profit for the first half of 2022 was approximately HKD 13,131,000, a decrease of 118.5% compared to HKD 6,009,000 in the same period last year[37]. - The company reported revenues of approximately HKD 11,764,000 and HKD 13,633,000 from Wan Gao Xun Ke during the reporting period[31]. - Revenue from technical support and maintenance services increased significantly to HKD 19,143,000, up 2.3% from HKD 18,718,000 in the same period of 2021[78]. Legal and Compliance Matters - The company’s subsidiary received multiple legal documents related to a lawsuit claiming RMB 13,000,000 in deposits and associated legal costs[22]. - The company had no significant contingent liabilities as of June 30, 2022, consistent with the previous year[169]. Stock Options and Shareholder Information - The company has a stock option plan effective from August 3, 2012, aimed at rewarding eligible participants for their contributions to the group's business achievements[155]. - The maximum number of shares that can be issued upon the exercise of stock options granted under the plan shall not exceed 30% of the total issued shares at any time[159]. - The total number of stock options granted during the period was 16,360,000 at an exercise price of HKD 0.140[165]. - Major shareholders holding 5% or more of the company's issued share capital include Zhang Rong with 20.11% and Lin Shusong with 7.39%[195]. - The total number of shares issued by the company as of the report date is 514,711,933[196].

Financial Performance - For the three months ended March 31, 2022, the revenue was approximately HKD 20,887,000, a decrease of 15.15% compared to HKD 24,617,000 in the same period last year[16]. - The loss attributable to the owners of the company for the same period was approximately HKD 3,880,000, compared to a loss of HKD 4,104,000 in the previous year[16]. - The loss per share for the three months ended March 31, 2022, was approximately HKD 0.0113, compared to a loss of HKD 0.0171 in the previous year[16]. - The group recorded revenue of approximately HKD 20,887,000 for the first quarter of 2022, a decrease of 15.15% compared to approximately HKD 24,617,000 in the same period last year[41]. - The group incurred a loss attributable to owners of the company of approximately HKD 3,880,000 for the first quarter of 2022, an improvement from a loss of approximately HKD 4,104,000 in the previous year[42]. - The company reported a pre-tax loss of HKD 3,863,000 for Q1 2022, compared to a loss of HKD 4,285,000 in Q1 2021, indicating a slight improvement[55]. - The company reported a loss attributable to owners of HKD 3,880,000 for Q1 2022, slightly improved from a loss of HKD 4,104,000 in Q1 2021[65]. Dividend and Shareholder Information - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2022[16]. - The company did not recommend an interim dividend for the three months ended March 31, 2022, compared to no dividend in the previous year[70]. - As of March 31, 2022, the company had a total of 343,141,329 issued ordinary shares[77]. - The total issued ordinary shares of the company as of March 31, 2022, is 343,141,329, which is the basis for calculating the ownership percentages[98]. - As of the report date, the total number of shares issued by the company is 514,711,993 shares[114]. - Major shareholders include Mr. Zhang with 11.03% of shares (37,843,333 shares) and Mr. Lin with 7.39% (25,342,000 shares), highlighting significant ownership concentration[91]. Research and Development - The company is focusing on the development of advanced technologies, particularly in AI and cloud technology, while prudently controlling and allocating resources[18]. - The company is investing approximately HKD 4,320,000 in research and development for its smart retail cloud platform and IoT cloud platform network security[16]. - The group plans to invest more resources in the research and development of IoT, AI, cloud, and other technologies to enhance service quality and business efficiency[37]. - The company is developing the AI Booster solution, which includes a simplified AI solution for small and medium-sized enterprises, focusing on logistics and customer relationship management systems[34]. - The AI Booster solution aims to provide real-time information sharing and personalized recommendations for clients, enhancing their operational efficiency[34]. - The CRM system, part of the AI Booster solution, is expected to launch in the second half of 2022, optimizing customer management processes[34]. Market and Economic Environment - The geopolitical environment, including the impact of the Russia-Ukraine war, has contributed to a pessimistic macroeconomic sentiment affecting business activities[17]. - The board will continue to monitor market conditions and assess the impact of COVID-19 on the group's financial position and operations[37]. - The company is preparing to meet future challenges while seizing sustainable growth opportunities[18]. Operational Performance - Revenue from IT solutions and maintenance services in Q1 2022 was HKD 16,856,000, down from HKD 23,321,000 in Q1 2021, representing a decline of 27.8%[59]. - Rental income for Q1 2022 was HKD 3,114,000, compared to HKD 226,000 in Q1 2021, showing significant growth[58]. - The cost of sales and services for the first quarter of 2022 was approximately HKD 13,922,000, down 34.17% from approximately HKD 21,149,000 in the previous year, primarily due to a reduction in project numbers[41]. - Gross profit for the first quarter of 2022 was approximately HKD 6,965,000, compared to approximately HKD 3,468,000 in the same period last year, mainly due to rental income of approximately HKD 3,114,000 from properties leased to an independent third party[41]. - Employee benefits expenses totaled approximately HKD 4,263,000 for the three months ended March 31, 2022, compared to approximately HKD 4,047,000 in the previous year[39]. - Administrative expenses for the first quarter of 2022 were approximately HKD 5,978,000, a decrease of 22.1% from approximately HKD 7,674,000 in the previous year[41]. Corporate Governance and Compliance - The company has maintained compliance with the GEM listing rules and corporate governance code, except for the combined roles of the chairman and CEO, which the board believes is in the best interest of the company[104]. - The audit committee, consisting of independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the three months ending March 31, 2022, ensuring compliance with applicable accounting standards[108]. - The board is responsible for ensuring the group maintains a robust and effective internal control and risk management system to protect shareholder investments and group assets[111]. - The audit committee reviews the effectiveness of the internal control and risk management systems and reports to the board at least annually[111]. Legal and Regulatory Matters - The company is seeking legal advice regarding ongoing litigation involving its subsidiary, which is scheduled for a hearing in June 2022[28]. - The company has confirmed that the previously forfeited deposit of RMB 13,000,000 has been recognized as other income for the group[28]. Share Options and Incentives - The company granted a total of 23,900,000 share options on May 13, 2021, with an exercise price of HKD 0.245[81]. - The maximum number of shares that may be issued under the share option plan is capped at 10% of the total issued shares as of the adoption date[82]. - The board believes that granting share options to employees will incentivize them to strive for the company's goals[87]. - The exercise price of unexercised share options was adjusted from HKD 0.245 to HKD 0.219, and the number of shares to be issued upon exercise of unexercised options increased from 23,100,000 to 25,842,465 shares[113].

Market Trends and Growth Projections - The global IT spending reached $3.92 trillion in 2021, an increase of 20% compared to 2020[17]. - The AI software market size reached $34.9 billion in 2021, with an annual growth rate of 41%, expected to reach $126 billion by 2025[17]. - The compound annual growth rate (CAGR) for global AI spending is projected to be 24.5%, increasing from $85.3 billion in 2021 to over $204 billion by 2025[17]. - The global AI spending guide by IDC predicts substantial growth in AI technology investments, highlighting the increasing reliance on AI and IoT in business operations[17]. - The company recognizes the significant market potential in China and the Asia-Pacific region, anticipating continued strong growth[17]. Technological Innovations and Investments - The company emphasizes the importance of innovative technology to seize market opportunities and provide advanced, user-friendly services and systems[17]. - The logistics sector is leveraging IoT technology to automate manual tasks and decision-making processes, enhancing operational efficiency and reducing costs[17]. - The company invested more resources in R&D, focusing on AI systems and IoT solutions, targeting SMEs without AI expertise[19]. - The company continues to focus on innovative and advanced technologies, particularly in AI and cloud technology, while managing resources effectively[22]. - The company is committed to enhancing its technological capabilities to meet the evolving demands of the market[17]. Financial Performance and Capital Management - The group's revenue for 2021 was approximately HKD 66,092,000, an increase of 44.6% compared to HKD 45,694,000 in 2020[45]. - The sales and service costs for 2021 totaled approximately HKD 42,386,000, up 44.8% from HKD 29,270,000 in 2020[46]. - The gross profit for 2021 was approximately HKD 23,706,000, an increase of about HKD 7,282,000 from HKD 16,424,000 in 2020[47]. - The group incurred a loss attributable to owners of approximately HKD 90,326,000 in 2021, compared to HKD 9,758,000 in 2020, primarily due to fair value losses on investment properties[56]. - The total borrowings as of December 31, 2021, were approximately HKD 87,439,000, down from HKD 104,230,000 in 2020[57]. Shareholder and Capital Structure - The company plans a rights issue of one share for every two existing shares to maintain a robust financial position for sustainable growth[20]. - The company proposed a rights issue on January 5, 2022, offering one share for every two existing shares at a subscription price of HKD 0.15, aiming to raise up to approximately HKD 25,740,000 before expenses by issuing a maximum of 171,570,664 shares[70]. - The rights issue was oversubscribed by 31,673,360 shares, representing about 18.46% of the total shares offered[71]. - The company completed a share placement of 20.8 million shares at HKD 0.23 each, raising approximately HKD 4.8 million for general working capital[28]. - The total amount raised from the second share placement was HKD 14,000,000, with a net amount of approximately HKD 13,700,000, allocated for general operating funds[33]. Corporate Governance and Compliance - The company has maintained a high level of corporate governance, adhering to the GEM Listing Rules, except for the combined roles of Chairman and CEO held by Mr. Huang[149]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring effective governance and oversight[152]. - The independent non-executive directors confirmed their independence in accordance with GEM listing rules[164]. - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with GEM Listing Rules[157]. - The audit committee reviewed the audited consolidated financial statements and the draft annual report before submission to the board for approval[92]. Risk Management and Legal Matters - The group has established a risk management framework involving the board of directors, audit committee, and senior management to manage operational risks and ensure compliance with laws and regulations[190]. - The audit committee reviews the effectiveness of the risk management and internal control systems at least annually, covering financial, operational, and compliance monitoring[191]. - The company is actively seeking legal advice regarding the ongoing litigation and assessing its potential impact, with a hearing scheduled for June 20, 2022[34]. - The group faces liquidity risk due to potential difficulties in obtaining sufficient funds or liquidating assets to meet obligations as they come due[65]. - The company ensures that insider information is disclosed to the public in a fair and timely manner, adhering to applicable laws and regulations[195]. Employee and Stakeholder Engagement - The total employee benefits expenses increased from approximately HKD 21,095,000 in 2020 to HKD 24,218,000 in 2021[68]. - As of December 31, 2021, the group employed 59 staff members, down from 75 in 2020, with total employee benefits expenses amounting to approximately HKD 24,218,000, including HKD 2,462,000 related to equity-settled share-based payments[68]. - The company encourages stakeholder participation in environmental and social activities, benefiting the entire community[134]. - The company has complied with all relevant laws and regulations related to health, safety, workplace environment, and employment, ensuring sustainable business practices[134]. - All directors participated in continuous professional development training, ensuring they are well-informed about their responsibilities under GEM listing rules[160].