（股份代號：8187） JIMU GROUP LIMITED （於開曼群島註冊成立的有限公司） 積木集團有限公司 第三季度報告 2021 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供的市場，此等公司相比起其他在聯交所上市的公司帶有較高 投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方 作出投資決定。 由於GEM 上市公司普遍為中小型公司，在GEM 買賣的證券可能會承受較於聯交所主板買賣的 證券為高的市場波動風險，同時亦無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，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報告全部或任何部分內容而產生或依賴該等內容而引致的任 何損失承擔任何責任。 本報告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）規定提供有關積木集團有限公司（「本 公司」）資料的詳情，本公司董事（「董事」）就本報告共同及個別地承擔全部責任。董事在作出 一切合理查詢後確認，就彼等所深知及確信，本報告所載的資料在各重大方面乃準確完整，並 無誤導或欺詐成份，且概無遺 ...

（股份代號：8187） JIMU GROUP LIMITED （於開曼群島註冊成立的有限公司） 積木集團有限公司 中期報告 2021 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供的市場，此等公司相比起其他在聯交所上市的公司帶有較高 投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方 作出投資決定。 由於GEM 上市公司普遍為中小型公司，在GEM 買賣的證券可能會承受較於主板買賣的證券為 高的市場波動風險，同時亦無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，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報告全部或任何部分內容而產生或依賴該等內容而引致的任 何損失承擔任何責任。 本報告載有根據聯交所GEM 證券上市規則（「GEM 上市規則」）規定須提供有關積木集團有限 公司（「本公司」）資料的詳情，本公司董事（「董事」）就本報告共同及個別地承擔全部責任。董 事在作出一切合理查詢後確認，就彼等所深知及確信，本報告所載的資料在各重大方面乃準確 完整，且無誤導或欺詐成份，且概無遺漏 ...

（股份代號：8187） JIMU GROUP LIMITED （於開曼群島註冊成立的有限公司） 積木集團有限公司 第一季度報告 2021 香港聯合交易所有限公司（「聯交所」）GEM的特色 01 積木集團有限公司 | 二零二一年第一季度報告 業績 積木集團有限公司（「本公司」）董事（「董事」）會（「董事會」）提呈本公司及其附屬公司（統稱「本 集團」）截至二零二一年三月三十一日止三個月的未經審核簡明綜合財務報表連同二零二零年 同期的未經審核比較數字。 簡明綜合損益及其他全面收益表 截至二零二一年三月三十一日止三個月 （未經審核） 截至三月三十一日止三個月 附註 二零二一年 二零二零年 千港元 千港元 來自貨品及服務的收益 5 2,278 7,707 其他收入 105 405 其他收益及虧損 – (36) 購買及更換存貨 – – 僱員福利開支 (6,248) (17,346) 其他經營開支 (2,598) (4,671) 融資成本 (45) (159) 除稅前虧損 (6,508) (14,100) 所得稅抵免 6 970 2,280 本期間虧損 7 (5,538) (11,820) 其他全面開支： 其後可能重新分類 ...

（股份代號：8187） JIMU GROUP LIMITED （於開曼群島註冊成立的有限公司） 積木集團有限公司 年報 2020 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM 的定位，乃為中小型公司提供的市場，此等公司相比起其他在聯交所上市的公司帶有較高投資風險。有意 投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM 上市公司普遍為中小型公司，在GEM 買賣的證券可能會承受較於聯交所主板買賣的證券為高的市場 波動風險，同時亦無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明 確表示概不就因本報告全部或任何部分內容而產生或依賴該等內容而引致的任何損失承擔任何責任。 本報告乃遵照聯交所GEM 證劵上市規則（「GEM 上市規則」）規定提供有關積木集團有限公司（「本公司」）資料 的詳情，本公司董事（「董事」）就本報告共同及個別地承擔全部責任。董事在作出一切合理查詢後確認，就彼等 所深知及確信，本報告所載的資料在各重大方面乃準確完整，並無誤導或欺詐成份，且概無遺漏任何其 ...

[Financial Performance](index=3&type=section&id=%E6%A5%AD%E7%B8%BE) The Group's revenue declined significantly, leading to a wider net loss for the period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Revenue fell 45.7% YoY to HK$53.98 million, widening the net loss to HK$9.72 million Key Financial Data for the First Three Quarters of 2020 | Metric | Nine months ended Sep 30 (2020) | Nine months ended Sep 30 (2019) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 53,977 HK$ thousands | 99,361 HK$ thousands | -45.7% | | Loss before tax | (11,181) HK$ thousands | (3,372) HK$ thousands | +231.6% | | Loss for the period | (9,724) HK$ thousands | (5,527) HK$ thousands | +75.9% | | Basic loss per share | (2.03) HK cents | (1.15) HK cents | +76.5% | [Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) Total equity shifted to a deficit of HK$2.44 million, driven by a period loss of HK$9.72 million Summary of Changes in Equity | Item | Amount (HK$ thousands) | | :--- | :--- | | As at Jan 1, 2020 (audited) | 2,849 | | Loss for the period | (9,724) | | Deemed contribution from a director | 4,360 | | As at Sep 30, 2020 (unaudited) | (2,443) | [Notes to the Financial Statements](index=5&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section details segment performance, revenue sources, and other key financial statement items [Segment Information](index=6&type=section&id=4.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The footwear segment turned profitable while the loan intermediary segment incurred a significant loss - The Group's operating segments include the footwear business and loan intermediary services[16](index=16&type=chunk) Segment Results Analysis (For the nine months ended September 30) | Segment | Revenue (2020) | Revenue (2019) | Segment results (2020) | Segment results (2019) | | :--- | :--- | :--- | :--- | :--- | | Footwear business | 34,096 HK$ thousands | 31,024 HK$ thousands | 9,174 HK$ thousands | (6,952) HK$ thousands | | Loan intermediary services | 19,881 HK$ thousands | 68,337 HK$ thousands | (13,784) HK$ thousands | 10,469 HK$ thousands | [Revenue Sources](index=8&type=section&id=5.%20%E4%BE%86%E8%87%AA%E8%B2%A8%E5%93%81%E5%8F%8A%E6%9C%8D%E5%8B%99%E7%9A%84%E6%94%B6%E7%9B%8A) Total revenue decreased by 45.7% to HK$53.98 million, driven by a sharp fall in loan intermediary services Revenue Composition (For the nine months ended September 30) | Business | 2020 (HK$ thousands) | 2019 (HK$ thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Footwear trading | 34,096 | 31,024 | +9.9% | | Provision of loan intermediary services | 19,881 | 68,337 | -70.9% | | **Total** | **53,977** | **99,361** | **-45.7%** | [Dividends](index=9&type=section&id=8.%20%E8%82%A1%E6%81%AF) No dividends were declared or paid during the nine months ended September 30, 2020 - The Board does not recommend the payment of a dividend for the nine months ended September 30, 2020[23](index=23&type=chunk) [Loss Per Share](index=10&type=section&id=9.%20%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) Basic loss per share widened to 2.03 HK cents from 1.15 HK cents in the prior year period Calculation of Basic Loss Per Share | Item | Nine months ended Sep 30 (2020) | Nine months ended Sep 30 (2019) | | :--- | :--- | :--- | | Loss for the period (HK$ thousands) | (9,724) | (5,527) | | Number of ordinary shares ('000) | 480,000 | 480,000 | | Basic loss per share (HK cents) | (2.03) | (1.15) | [Events After the Reporting Period](index=10&type=section&id=10.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E9%96%93%E5%BE%8C%E4%BA%8B%E9%A0%85) The company raised net proceeds of approximately HK$9.0 million from a share placement in October 2020 - The company completed a share placement on October 30, 2020, issuing **21,600,000 shares** and raising net proceeds of approximately **HK$9.0 million** to supplement working capital[27](index=27&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides a review of business operations, financial performance, and future outlook [Business Review and Outlook](index=11&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%B1%95%E6%9C%9B) The footwear business recovered while the loan intermediary business declined sharply due to the pandemic - Despite pressure in overseas markets from the pandemic and competition, the Group successfully expanded its client portfolio in China, completing its first orders for a well-known Chinese retailer[30](index=30&type=chunk) - Management believes the footwear business is recovering after several years of losses and will continue to seek development opportunities in both domestic and overseas markets[30](index=30&type=chunk) - The loan intermediary business saw a significant decline due to two main factors: 1) a sharp drop in loan demand caused by the COVID-19 pandemic and lockdown measures; and 2) a decreased willingness to lend from funding sources amid the economic situation[33](index=33&type=chunk) - In response, management has adopted a plan to reduce costs by closing several branches and laying off underperforming employees, while actively seeking alternative funding sources[33](index=33&type=chunk) [Financial Review](index=12&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) Revenue fell 45.7% and net loss widened to HK$9.7 million, driven by the loan intermediary segment's decline Segment Revenue Breakdown (For the nine months ended September 30) | Segment | 2020 (HK$ thousands) | % of Total | 2019 (HK$ thousands) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Footwear trading | 34,096 | 63.2% | 31,024 | 31.2% | | Provision of loan intermediary services | 19,881 | 36.8% | 68,337 | 68.8% | | **Total** | **53,977** | **100.0%** | **99,361** | **100.0%** | - Employee benefit expenses decreased from HK$63.3 million to **HK$35.9 million**, primarily due to the implementation of cost reduction and restructuring plans during the period[41](index=41&type=chunk) - Other operating expenses decreased from HK$20.0 million to **HK$11.6 million**, mainly due to reduced business activities and cost-cutting measures amid the pandemic[43](index=43&type=chunk) - Finance costs decreased by **66.1%** from HK$1.0 million to HK$0.3 million, as the Group had repaid all bank borrowings in 2019[44](index=44&type=chunk) - The footwear business segment achieved a profit before tax of approximately **HK$9.2 million** (2019: loss of HK$7.0 million), mainly benefiting from higher gross margins on domestic sales and cost reductions[46](index=46&type=chunk) - The loan intermediary services segment recorded a loss before tax of approximately **HK$13.8 million** (2019: profit of HK$10.5 million), primarily due to the decrease in revenue caused by the COVID-19 pandemic[46](index=46&type=chunk) [Corporate Governance and Shareholder Information](index=15&type=section&id=%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E8%88%87%E8%82%A1%E6%9D%B1%E4%BF%A1%E6%81%AF) This section outlines the company's governance structure and key shareholder interests [Interests of Directors and Substantial Shareholders](index=15&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%AC%8A%E7%9B%8A) Jimu Group Holdings Limited is the substantial shareholder, holding 73% of the company's issued share capital Substantial Shareholders' Holdings | Shareholder Name | Capacity | Number of shares held | Approximate percentage of shareholding | | :--- | :--- | :--- | :--- | | Jimu Group Holdings Limited | Beneficial owner | 350,400,000 | 73% | | Huawen Industry Group Limited | Interest of controlled corporation | 350,400,000 | 73% | | Jimu Holdings | Interest of controlled corporation | 350,400,000 | 73% | [Audit Committee](index=17&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee reviewed the unaudited financial statements for the period, ensuring compliance - The Audit Committee is composed of three independent non-executive directors and is responsible for overseeing financial reporting and internal control procedures[58](index=58&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for this quarter[58](index=58&type=chunk)

[Financial Performance](index=3&type=section&id=Financial%20Performance) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) In H1 2020, the company's performance shifted from profit to a net loss of HKD 4.886 million, with total revenue significantly decreasing by 51.7% to HKD 35.18 million, and operating cash flow turning negative, indicating substantial operational and financial pressure [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Key Financial Performance Indicators | Indicator | For the Six Months Ended June 30, 2020 (HKD '000) | For the Six Months Ended June 30, 2019 (HKD '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 35,181 | 72,798 | -51.7% | | Profit (Loss) Before Tax | (6,124) | 3,857 | Shifted from profit to loss | | Profit (Loss) for the Period | (4,886) | 1,038 | Shifted from profit to loss | | Basic Earnings (Loss) Per Share (HK cents) | (1.02) | 0.22 | Shifted from profit to loss | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Condensed Consolidated Statement of Financial Position | Assets/Liabilities/Equity | As at June 30, 2020 (HKD '000) | As at December 31, 2019 (HKD '000) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **42,534** | **58,466** | **-27.2%** | | Non-current Assets | 630 | 3,819 | -83.5% | | Current Assets | 41,904 | 54,647 | -23.3% | | **Total Liabilities** | **40,335** | **55,617** | **-27.5%** | | Current Liabilities | 35,859 | 43,646 | -17.8% | | Non-current Liabilities | 4,476 | 11,971 | -62.6% | | **Net Assets** | **2,199** | **2,849** | **-22.8%** | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) - For the six months ended June 30, 2020, the company's total equity decreased from **HKD 2.849 million** at the beginning of the period to **HKD 2.199 million**[8](index=8&type=chunk) - The primary reason for the equity reduction was a **loss of HKD 4.886 million** recorded during the period[8](index=8&type=chunk) - Notably, a director waived **HKD 4.36 million** owed to them, which was recognized as a deemed contribution to capital reserve, partially offsetting the impact of the loss on equity[8](index=8&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Condensed Consolidated Statement of Cash Flows | Cash Flow Activities | For the Six Months Ended June 30, 2020 (HKD '000) | For the Six Months Ended June 30, 2019 (HKD '000) | | :--- | :--- | :--- | | Net Cash from Operating Activities | (20,170) | 11,989 | | Net Cash from Investing Activities | 98 | 1,373 | | Net Cash Used in Financing Activities | (4,571) | (3,825) | | **Net Decrease in Cash and Cash Equivalents** | **(24,643)** | **9,537** | | Cash and Cash Equivalents at Beginning of Period | 33,584 | 42,166 | | **Cash and Cash Equivalents at End of Period** | **8,684** | **51,612** | [Notes to the Financial Statements](index=7&type=section&id=Notes%20to%20the%20Financial%20Statements) The notes detail accounting policies, COVID-19 impact, segment performance, revenue composition, and key balance sheet items, notably the functional currency change from USD to RMB effective January 1, 2020, and the footwear business's profitability contrasting with the loan intermediary business's pandemic-induced losses and asset impairments - Due to the COVID-19 pandemic, the Group temporarily closed its loan intermediary business branches from February to March 2020, leading to reduced revenue and impairment of related right-of-use assets[13](index=13&type=chunk) - Effective January 1, 2020, the company's functional currency changed from **USD to RMB** to better reflect its economic substance as an investment holding company primarily operating in China[12](index=12&type=chunk) [4. Segment Information](index=9&type=section&id=4.%20Segment%20Information) During the reporting period, the Group's two main business segments showed significant divergence: the footwear business turned profitable with **HKD 5.65 million** in segment results, while the loan intermediary services segment shifted from profit to a **HKD 7.485 million** loss Segment Performance | Operating Segment | Revenue for the Six Months Ended June 30, 2020 (HKD '000) | Segment Results for the Six Months Ended June 30, 2020 (HKD '000) | Segment Results for the Six Months Ended June 30, 2019 (HKD '000) | | :--- | :--- | :--- | :--- | | Footwear Business | 21,546 | 5,650 | (4,340) | | Loan Intermediary Services | 13,635 | (7,485) | 12,564 | [5. Revenue from Goods and Services](index=11&type=section&id=5.%20Revenue%20from%20Goods%20and%20Services) Total revenue for H1 2020 was **HKD 35.181 million**, a **51.7% year-on-year decrease**, with footwear revenue down **16.9%** to **HKD 21.546 million** and loan intermediary services revenue sharply down **70.9%** to **HKD 13.635 million**, with all revenue now solely from China Revenue by Business Segment | Business Segment | Revenue for the Six Months Ended June 30, 2020 (HKD '000) | Percentage of Total Revenue (%) | Revenue for the Six Months Ended June 30, 2019 (HKD '000) | Percentage of Total Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | Footwear Business | 21,546 | 61.2% | 25,927 | 35.6% | | Loan Intermediary Services | 13,635 | 38.8% | 46,871 | 64.4% | | **Total** | **35,181** | **100.0%** | **72,798** | **100.0%** | [Assets and Liabilities](index=16&type=section&id=Assets%20and%20Liabilities) Due to COVID-19-induced branch closures in the loan intermediary business, the Group recognized an impairment loss of approximately **HKD 0.22 million** on right-of-use assets, while a director's waiver of **HKD 4.36 million** owed to them was recognized as a deemed capital contribution, increasing capital reserves - Due to adverse factors such as property closures of loan intermediary business branches caused by the pandemic, the Group conducted impairment tests on right-of-use assets and recognized an impairment loss of approximately **HKD 0.22 million**[41](index=41&type=chunk) - A director, also a substantial shareholder, waived the full amount of **HKD 4.36 million** owed to them, which was recognized as a deemed contribution and credited to capital reserve[50](index=50&type=chunk) [24. Related Party Disclosures](index=22&type=section&id=24.%20Related%20Party%20Disclosures) Most of the Group's loan intermediary business involves services to end customers whose financing originates from investors registered on an online information intermediary platform operated by a company associate; additionally, a **RMB 40 million** interest-free loan from the ultimate holding company's subsidiary was repaid during the period - The vast majority of the Group's loan intermediary business comes from end customers whose financing is sourced from investors registered on an online information intermediary service platform operated by a company associate[57](index=57&type=chunk) - In April 2020, a subsidiary of the ultimate holding company provided an unsecured, interest-free loan of **RMB 40 million**, which was repaid early during the interim period[60](index=60&type=chunk) [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=23&type=section&id=Business%20Review%20and%20Outlook) During the period, the Group's two main businesses diverged: footwear capitalized on China's market recovery to turn profitable despite weak overseas markets, while loan intermediary services suffered severe declines due to COVID-19 impacting demand and funding, prompting management to implement cost controls including branch closures and layoffs [Footwear Business](index=23&type=section&id=Footwear%20Business) Despite global economic uncertainty and declining overseas margins, the footwear business successfully pivoted to the Chinese domestic market, securing initial orders from prominent retailers and achieving profitability during the reporting period, signaling a recovery after years of losses - Despite further deterioration in overseas retail markets due to the pandemic, the Chinese market recovered first, and the Group seized the opportunity to complete initial orders for prominent Chinese retailers[61](index=61&type=chunk) - Management believes the footwear business is recovering and has recorded a profit after several years of losses[61](index=61&type=chunk) [Loan Intermediary Business](index=23&type=section&id=Loan%20Intermediary%20Business) The loan intermediary business experienced a significant decline in H1 2020 due to sharply reduced demand for services and decreased lending willingness from funders, both exacerbated by the COVID-19 pandemic and lockdown measures; management has responded with cost-cutting measures, including branch closures and layoffs, while actively seeking new funding sources - The loan intermediary business was severely impacted by the COVID-19 pandemic, with lockdown measures leading to a sharp decline in service demand and a corresponding decrease in lending willingness from funding sources[65](index=65&type=chunk) - Management has adopted plans to reduce costs and improve efficiency by closing several branches and laying off underperforming employees, while actively seeking other funding sources[65](index=65&type=chunk) [Financial Review](index=25&type=section&id=Financial%20Review) Total revenue for H1 2020 decreased **51.7%** to **HKD 35.2 million**, primarily due to a **70.9%** drop in loan intermediary services revenue; despite a **16.9%** decline, the footwear business achieved a pre-tax profit of **HKD 5.7 million** and turned profitable due to higher domestic margins, while the Group overall shifted to a **HKD 4.9 million** loss, dragged by significant losses in the loan business [Financial Review - Revenue Analysis](index=25&type=section&id=Financial%20Review%20-%20Revenue%20Analysis) Total revenue decreased **51.7%** to **HKD 35.2 million** from **HKD 72.8 million** in the prior period, with footwear revenue down **16.9%** to **HKD 21.5 million** due to reduced overseas sales, and loan intermediary business revenue sharply down **70.9%** to **HKD 13.6 million** primarily due to COVID-19 impact Revenue Analysis by Business Segment | Business Segment | Revenue for the Six Months Ended June 30, 2020 (HKD '000) | Percentage of Total Revenue (%) | Revenue for the Six Months Ended June 30, 2019 (HKD '000) | Percentage of Total Revenue (%) | | :--- | :--- | :--- | :--- | :--- | | Footwear Trading | 21,546 | 61.2% | 25,927 | 35.6% | | Loan Intermediary Services | 13,635 | 38.8% | 46,871 | 64.4% | | **Total** | **35,181** | **100.0%** | **72,798** | **100.0%** | [Costs and Expenses](index=26&type=section&id=Costs%20and%20Expenses) All cost and expense categories saw significant reductions: cost of inventories purchased decreased **36.0%**, employee benefit expenses **33.2%** due to cost-cutting and restructuring, other operating expenses **43.1%** from reduced business activity and cost control, and finance costs **61.0%** due to bank loan repayments - Employee benefit expenses decreased from **HKD 38.8 million** to **HKD 25.9 million**, primarily due to cost-cutting and restructuring initiatives implemented during the period[73](index=73&type=chunk) - The purchase cost to sales ratio decreased from **85.0%** in the prior period to **68.9%**, mainly due to higher profit margins from domestic sales[70](index=70&type=chunk) [Profit/Loss for the Period](index=27&type=section&id=Profit%2FLoss%20for%20the%20Period) The Group shifted from a **HKD 1 million** profit in the prior period to a **HKD 4.9 million** loss, driven by divergent performance: the footwear segment achieved a pre-tax profit of **HKD 5.7 million** (vs. HKD 4.3 million loss last year) due to higher domestic margins and cost reductions, while the loan intermediary services segment recorded a pre-tax loss of **HKD 7.5 million** (vs. HKD 12.6 million profit last year) due to significant revenue decline from the pandemic - Due to divergent business performance, the Group recorded an overall loss of approximately **HKD 4.9 million**, compared to a profit of approximately **HKD 1 million** in the prior period[78](index=78&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2020, the Group's financial position showed tightening liquidity, with cash and cash equivalents significantly reduced to **HKD 8.7 million** (from HKD 33.6 million at year-end); however, the Group had no outstanding bank borrowings and a zero debt-to-equity ratio, with a current ratio slightly decreasing from **1.3x** to **1.2x**, indicating acceptable short-term solvency Liquidity and Capital Resources Summary | Indicator | As at June 30, 2020 | As at December 31, 2019 | | :--- | :--- | :--- | | Cash and Cash Equivalents | Approx. HKD 8.7 million | Approx. HKD 33.6 million | | Outstanding Borrowings | Zero | Zero | | Debt-to-Equity Ratio | Zero | Zero | | Current Ratio | Approx. 1.2x | Approx. 1.3x | | Net Current Assets | Approx. HKD 6 million | Approx. HKD 11 million | [Comparison of Business Plan with Actual Progress](index=29&type=section&id=Comparison%20of%20Business%20Plan%20with%20Actual%20Progress) Compared to the 2016 prospectus business plan, the Group's actual progress on several expansion and enhancement initiatives significantly deviated from plans, including the departure of 3D technicians, designers, and technicians hired to improve design capabilities, and the termination of brand licensing plans, reflecting difficulties and changes in post-listing long-term strategy execution - 3D technicians, footwear designers, footwear technicians, and quality control inspectors hired to enhance design, development, and production management capabilities all departed between **2018 and 2019**[99](index=99&type=chunk) - The Group signed a 'B.Duck' brand license agreement in **June 2017**, but it was terminated in **December** of the same year[99](index=99&type=chunk) [Use of Proceeds](index=32&type=section&id=Use%20of%20Proceeds) The **HKD 44.6 million** net proceeds from the company's listing were fully utilized by June 30, 2020; notably, between 2018 and 2019, the company repeatedly announced changes in the use of proceeds, reallocating over **HKD 32 million** originally designated for specific development projects like brand licensing, corporate image, IT systems, customer base expansion, and design capabilities, to 'general working capital and other general corporate purposes' - As of June 30, 2020, the net proceeds of **HKD 44.6 million** from the listing placement have been fully utilized[109](index=109&type=chunk) - The Group repeatedly changed the use of proceeds disclosed in the prospectus, reallocating funds originally intended for various projects such as expansion, design enhancement, brand licensing, and IT systems, to 'general working capital and other general corporate purposes'[105](index=105&type=chunk)[107](index=107&type=chunk)[109](index=109&type=chunk) [Corporate Governance and Other Information](index=34&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance](index=34&type=section&id=Corporate%20Governance) The company complied with the GEM Listing Rules' Corporate Governance Code during the reporting period, with one deviation: non-executive and independent non-executive directors were appointed without specific terms, contrary to Code Provision A.4.1, though the company believes sufficient measures for good governance are maintained through rotation and re-election at annual general meetings - The company complied with the Corporate Governance Code, except for a deviation from Code Provision A.4.1, where non-executive directors were appointed without specific terms[110](index=110&type=chunk) [Directors' and Substantial Shareholders' Interests](index=35&type=section&id=Directors'%20and%20Substantial%20Shareholders'%20Interests) The report discloses directors' and substantial shareholders' interests, showing that as of June 30, 2020, controlling shareholder Jimu Group Holdings Limited held **350,400,000 shares**, representing **73%** of the total share capital, with its ownership structure traced through Huawen Industry Group Limited to Jimu Holdings Directors' and Substantial Shareholders' Interests as at June 30, 2020 | Shareholder Name | Capacity | Number of Shares Held | Approximate Percentage of Total Share Capital | | :--- | :--- | :--- | :--- | | Jimu Group Holdings Limited | Beneficial Owner | 350,400,000 | 73% | | Huawen Industry Group Limited | Interest in Controlled Corporation | 350,400,000 | 73% | | Jimu Holdings | Interest in Controlled Corporation | 350,400,000 | 73% | [Other Disclosures](index=37&type=section&id=Other%20Disclosures) During the reporting period, neither the company nor its subsidiaries purchased, redeemed, or sold any listed securities; board changes included Mr. Yan Taotao's resignation as executive director and Mr. Wong Chak Hung's appointment on June 5, 2020, and no share options have been granted under the option scheme adopted since 2016 - For the six months ended June 30, 2020, neither the company nor any of its subsidiaries repurchased or sold any shares of the company[121](index=121&type=chunk) - Mr. Yan Taotao retired as an executive director on **June 5, 2020**, and Mr. Wong Chak Hung was appointed as an executive director on the same day[122](index=122&type=chunk) - Since the adoption of the share option scheme on **May 11, 2016**, no share options have been granted under the scheme as of the date of this report[113](index=113&type=chunk)

Report Overview [GEM Market Characteristics and Disclaimer](index=2&type=section&id=GEM%20Market%20Characteristics%20and%20Disclaimer) The report emphasizes the GEM Board's high investment risks for SMEs, with the Stock Exchange disclaiming responsibility and the Board assuming full accountability for content accuracy - The GEM Board is positioned for small and medium-sized companies, entailing higher investment risks, potential for significant market volatility, and uncertain liquidity[3](index=3&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange bear no responsibility for the report's content, make no representations, and accept no liability for any losses[3](index=3&type=chunk) - The Company's Directors jointly and individually assume full responsibility for this report, confirming the information is accurate, complete, and not misleading or fraudulent in all material aspects[3](index=3&type=chunk) Financial Results [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the three months ended March 31, 2020, the Group's revenue significantly decreased by 76.2% to HKD 7,707 thousand, leading to an expanded loss of HKD 11,820 thousand and a basic loss per share of HK 2.46 cents Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (For the three months ended March 31) | Metric | 2020 (HKD thousands) | 2019 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue from goods and services | 7,707 | 32,378 | -76.2% | | Other income | 405 | 3,037 | -86.7% | | Loss before tax | (14,100) | (4,552) | 209.7% (Loss widened) | | Income tax credit | 2,280 | 99 | 2203.0% | | Loss for the period | (11,820) | (4,453) | 165.4% (Loss widened) | | Total comprehensive expense for the period | (11,858) | (4,396) | 169.7% (Expense widened) | | Basic loss per share (HK cents) | (2.46) | (0.93) | 164.5% (Loss widened) | - The significant decline in revenue was primarily due to the underperformance of loan intermediation services and footwear business[6](index=6&type=chunk) - Despite a significant increase in income tax credit, it was insufficient to offset the expanded loss before tax[6](index=6&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of March 31, 2020, total equity attributable to owners of the Company turned negative, from HKD 2,849 thousand to HKD (9,009) thousand, driven by a HKD 11,820 thousand loss and a HKD 38 thousand decrease in exchange reserve Condensed Consolidated Statement of Changes in Equity Summary (For the three months ended March 31) | Metric | March 31, 2020 (HKD thousands) | January 1, 2020 (HKD thousands) | March 31, 2019 (HKD thousands) | January 1, 2019 (Restated) (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Share capital | 4,800 | 4,800 | 4,800 | 4,800 | | Share premium | 46,917 | 46,917 | 46,917 | 46,917 | | Exchange reserve | (215) | (177) | (10) | (67) | | Capital reserve | (67) | (67) | (67) | (67) | | Accumulated losses | (60,444) | (48,624) | (19,732) | (15,279) | | Total attributable to owners of the Company | (9,009) | 2,849 | 31,908 | 36,304 | - In Q1 2020, total equity attributable to owners of the Company shifted from positive to negative, reflecting deteriorating operating conditions[7](index=7&type=chunk) - On January 1, 2019, accumulated losses were adjusted due to the initial application of HKFRS 16, recognizing an impairment loss of **HKD 4,240 thousand**[7](index=7&type=chunk) Notes to the Financial Statements [General Information](index=5&type=section&id=General%20Information) Jimu Group Limited, a public company incorporated in the Cayman Islands and listed on the GEM Board, presents its financial statements in HKD, with Jimu Holdings Limited as its ultimate holding company - The Company is a public company incorporated in the Cayman Islands, with its shares listed on the GEM Board of the Hong Kong Stock Exchange[9](index=9&type=chunk) - The Company's ultimate holding company and ultimate controlling shareholder is Jimu Holdings Limited[9](index=9&type=chunk) - The unaudited condensed consolidated financial statements are presented in HKD, chosen due to its Hong Kong listing and primary investor base, despite a different functional currency[9](index=9&type=chunk) [Basis of Preparation and Principal Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) The unaudited condensed consolidated financial statements are prepared under Hong Kong Financial Reporting Standards and GEM Listing Rules disclosure requirements on a historical cost basis, with current period amendments having no significant impact on financial performance or position - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and Chapter 18 of the GEM Listing Rules, on a historical cost basis[10](index=10&type=chunk)[11](index=11&type=chunk) - Amendments to HKFRS 3, HKAS 1 and 8, and interest rate benchmark reform-related amendments were applied in the current period[13](index=13&type=chunk) - The application of these amendments had no significant impact on the Group's financial performance and position for the three months ended March 31, 2020 and 2019[13](index=13&type=chunk) [Segment Information](index=6&type=section&id=Segment%20Information) The Group's two segments, loan intermediation and footwear, reported HKD 7,707 thousand revenue and HKD 11,835 thousand loss for loan intermediation, and no revenue with HKD 284 thousand loss for footwear, reflecting significant declines from the prior year - The Group's operating segments include loan intermediation services (providing pre-loan and post-loan intermediation) and footwear business (design, development, sourcing, promotion, and sales)[14](index=14&type=chunk)[16](index=16&type=chunk) Segment Revenue and Results (For the three months ended March 31) | Segment | 2020 Revenue (HKD thousands) | 2020 Segment Results (HKD thousands) | 2019 Revenue (HKD thousands) | 2019 Segment Results (HKD thousands) | | :--- | :--- | :--- | :--- | :--- | | Loan intermediation services | 7,707 | (11,835) | 17,758 | 36 | | Footwear business | – | (284) | 14,620 | (3,333) | | Total | 7,707 | (12,119) | 32,378 | (3,297) | | Loss before tax | | (14,100) | | (4,552) | - In Q1 2020, loan intermediation services shifted from profit to loss, and the footwear business ceased accepting orders, resulting in zero revenue[15](index=15&type=chunk)[17](index=17&type=chunk) [Revenue Analysis](index=7&type=section&id=Revenue%20Analysis) For the three months ended March 31, 2020, the Group's total revenue from goods and services significantly decreased to HKD 7,707 thousand from HKD 32,378 thousand in the prior year, with loan intermediation revenue falling to HKD 7,707 thousand and footwear trade revenue dropping to zero Revenue from Goods and Services Analysis (For the three months ended March 31) | Service Type | 2020 (HKD thousands) | 2019 (HKD thousands) | YoY Change (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Provision of loan intermediation services | 7,707 | 17,758 | (10,051) | -56.6% | | Footwear trading | – | 14,620 | (14,620) | -100.0% | | **Total** | **7,707** | **32,378** | **(24,671)** | **-76.2%** | - The footwear trading business ceased generating revenue in Q1 2020, reflecting management's decision not to accept orders to avoid potential losses[18](index=18&type=chunk) - The significant decrease in loan intermediation service revenue is one of the primary reasons for the reduction in total revenue[18](index=18&type=chunk) [Income Tax Credit](index=7&type=section&id=Income%20Tax%20Credit) For the three months ended March 31, 2020, the Group recorded a significant increase in income tax credit to approximately HKD 2,280 thousand from HKD 99 thousand in the prior year, primarily due to the recognition of deferred tax credit, with no Hong Kong profits tax provision made due to the absence of taxable profits Income Tax Credit (For the three months ended March 31) | Tax Type | 2020 (HKD thousands) | 2019 (HKD thousands) | YoY Change (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | PRC enterprise income tax – current tax | – | – | – | – | | Deferred tax | 2,280 | 99 | 2,181 | 2203.0% | | **Total** | **2,280** | **99** | **2,181** | **2203.0%** | - The significant increase in income tax credit is primarily attributable to the recognition of deferred tax credit[18](index=18&type=chunk)[46](index=46&type=chunk) - The applicable tax rate for PRC subsidiaries is **25%**, but no Hong Kong profits tax provision was made as the Group had no taxable profits[19](index=19&type=chunk) [Components of Loss for the Period](index=8&type=section&id=Components%20of%20Loss%20for%20the%20Period) For the three months ended March 31, 2020, the loss for the period primarily comprised employee benefit expenses, depreciation of property, plant and equipment, depreciation of right-of-use assets, and short-term lease expenses, with total staff costs decreasing to HKD 17,346 thousand due to minimal footwear business operations Components of Loss for the Period (For the three months ended March 31) | Item | 2020 (HKD thousands) | 2019 (HKD thousands) | YoY Change (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Directors' emoluments | 453 | 891 | (438) | -49.2% | | Other staff costs | 16,893 | 18,430 | (1,537) | -8.3% | | **Total staff costs** | **17,346** | **19,321** | **(1,975)** | **-10.2%** | | Depreciation of property, plant and equipment | 77 | 438 | (361) | -82.4% | | Depreciation of right-of-use assets | 383 | 1,713 | (1,330) | -77.6% | | Expenses relating to short-term leases | 219 | 326 | (107) | -32.8% | | Interest income | (49) | (39) | (10) | 25.6% (Income increased) | - The decrease in total staff costs was primarily due to reduced wage expenses resulting from the extremely low operating level of the footwear business[21](index=21&type=chunk)[44](index=44&type=chunk) - Depreciation expenses, including property, plant and equipment and right-of-use assets, both significantly decreased[21](index=21&type=chunk) [Dividends](index=8&type=section&id=Dividends) For the three months ended March 31, 2020 and 2019, the Company neither paid, declared, nor proposed any dividends, and the Directors do not recommend an interim dividend for the period ended March 31, 2020 - The Company neither paid, declared, nor proposed any dividends during the reporting period or the corresponding period last year[21](index=21&type=chunk) - The Board of Directors does not recommend the payment of an interim dividend for the three months ended March 31, 2020[21](index=21&type=chunk) [Loss Per Share](index=9&type=section&id=Loss%20Per%20Share) For the three months ended March 31, 2020, basic loss per share attributable to owners of the Company significantly widened to HK 2.46 cents from HK 0.93 cents in the prior year, calculated using a weighted average of 480,000 thousand ordinary shares for both periods, with no diluted loss per share presented due to the absence of potential ordinary shares Loss Per Share (For the three months ended March 31) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Loss used in calculating basic loss per share (HKD thousands) | (11,820) | (4,453) | | Weighted average number of ordinary shares used in calculating basic loss per share (thousands) | 480,000 | 480,000 | | **Basic loss per share (HK cents)** | **(2.46)** | **(0.93)** | - The widening basic loss per share reflects the Company's deteriorating profitability[24](index=24&type=chunk) - Diluted loss per share is not presented as there were no potential ordinary shares outstanding during both periods[26](index=26&type=chunk) [Events After the Reporting Period](index=9&type=section&id=Events%20After%20the%20Reporting%20Period) In April 2020, a subsidiary of the ultimate holding company, Jimu Holdings Limited, agreed to provide the Group with a two-year, unsecured, interest-free loan facility of RMB 40,000,000 for financial support, repayable in full by April 2022 - A subsidiary of the ultimate holding company, Jimu Holdings Limited, provided a RMB **40,000,000** loan facility in April 2020[27](index=27&type=chunk) - The loan is for two years, unsecured, interest-free, intended to provide financial support to the Group, and repayable in April 2022[27](index=27&type=chunk) Management Discussion and Analysis [Business Review and Outlook](index=10&type=section&id=Business%20Review%20and%20Outlook) The Group's primary businesses, loan intermediation and footwear, were severely impacted by the COVID-19 pandemic in Q1 2020, leading to significant revenue decline, prompting management to implement cost-cutting measures and actively seek new funding sources - The Group's principal businesses are loan intermediation services and footwear business[29](index=29&type=chunk) - The **COVID-19 pandemic** severely impacted both businesses, leading to a sharp decline in demand and a worsening global retail market[33](index=33&type=chunk)[34](index=34&type=chunk) - Management has implemented cost-cutting plans, including closing branches, reducing staff, and ceasing Dongguan footwear operations, while actively seeking new funding sources[33](index=33&type=chunk)[34](index=34&type=chunk) [Loan Intermediation Business](index=10&type=section&id=Loan%20Intermediation%20Business) The Group's loan intermediation business, serving individual clients in China's third and fourth-tier cities, faced a sharp demand decline in Q1 2020 due to the pandemic, leading management to plan cost reductions and seek new funding - The Group has established over **50** branches in China, focusing on individual clients in third and fourth-tier cities, and has developed a credit rating system[30](index=30&type=chunk) - The loan intermediation business experienced a significant decline in Q1 2020 due to the **COVID-19 pandemic** and reduced willingness of funding sources to lend[31](index=31&type=chunk)[33](index=33&type=chunk) - Management has adopted plans to reduce costs and improve efficiency by closing certain branches and reducing underperforming staff, while actively seeking other funding sources[33](index=33&type=chunk) [Footwear Business](index=11&type=section&id=Footwear%20Business) The Group's footwear business, serving international wholesalers and retailers, experienced declining profit margins due to global economic uncertainty and the pandemic, prompting management to cease Dongguan operations and maintain minimal Hong Kong operations, declining new orders to avoid losses - The footwear business provides design, development, production management, and logistics services, primarily to international wholesalers and retailers[34](index=34&type=chunk) - Global economic uncertainty, intensified industry competition, and the **COVID-19 pandemic** led to declining profit margins and reduced revenue[34](index=34&type=chunk) - Management has ceased Dongguan business operations and maintains the Hong Kong footwear business at an extremely low operating level, deciding not to accept any new orders[34](index=34&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) This quarter saw a significant deterioration in financial performance, with total revenue decreasing by 76.2% to HKD 7,700 thousand, driven by a 56.6% drop in loan intermediation revenue and zero footwear revenue, leading to an expanded loss of HKD 11,800 thousand, primarily due to the pandemic's impact on loan intermediation Key Financial Indicators Changes (For the three months ended March 31) | Metric | 2020 (HKD thousands) | 2019 (HKD thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | 7,700 | 32,400 | -76.2% | | Loan intermediation service revenue | 7,700 | 17,800 | -56.6% | | Footwear business revenue | – | 14,600 | -100.0% | | Purchases and changes in inventories | – | 12,800 | -100.0% | | Other income | 400 | 3,000 | -86.7% | | Finance costs | 200 | 500 | -60.0% | | Employee benefit expenses | 17,300 | 19,300 | -10.4% | | Other operating expenses | 4,700 | 7,400 | -36.6% | | Income tax credit | 2,300 | 99 | 2223.2% | | Loss for the period | 11,800 | 4,500 | 162.2% (Loss widened) | - The loan intermediation services segment shifted from a profit before tax in the prior year to a **HKD 11,800 thousand loss** in the current period, which is the primary reason for the expanded loss for the period[47](index=47&type=chunk) - The footwear business segment's loss decreased, primarily due to reductions in employee benefit expenses and other operating expenses, rather than an improvement in business performance[47](index=47&type=chunk) Other Information [Directors' Interests in Securities](index=14&type=section&id=Directors'%20Interests%20in%20Securities) As of March 31, 2020, Mr. Ho Kin Wai held a **2%** interest in the Company, while Mr. Dong Jun and Mr. Wen Junming held significant interests in the associated corporation, Jimu Holdings Limited, through controlled corporations Directors' Long Positions in Shares or Related Shares of the Company (As at March 31, 2020) | Name of Director | Capacity | Number of Shares Held (Ordinary Shares) | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Ho Kin Wai | Interest in controlled corporation | 9,600,000 | 2% | Directors' Long Positions in Shares or Related Shares of Associated Corporations (As at March 31, 2020) | Name of Director | Name of Associated Corporation | Capacity/Nature | Number of Shares Held | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | :--- | | Mr. Dong Jun | Jimu Holdings Limited | Interest in controlled corporation | 21,524,698 shares (Ordinary Shares) | 29.90% | | Mr. Wen Junming | Jimu Holdings Limited | Interest in controlled corporation | 2,210,630 shares (Series C Preference Shares) | 5.17% | | Mr. Wen Junming | Jimu Holdings Limited | Interest in controlled corporation | 235,000 shares (Ordinary Shares) | 0.33% | - Save as disclosed above, no other Director or chief executive had any interests or short positions in the securities of the Company or its associated corporations required to be disclosed[52](index=52&type=chunk) [Interests Discloseable Under the SFO and Major Shareholders](index=15&type=section&id=Interests%20Discloseable%20Under%20the%20SFO%20and%20Major%20Shareholders) As of March 31, 2020, Jimu Group Holdings Limited was the Company's major shareholder, beneficially owning 350,400,000 shares, representing a 73% interest, with Huawen Industry Group Limited and Jimu Holdings Limited also deemed to hold the same number of shares due to controlled corporate interests Major Shareholders' Long Positions in Shares or Related Shares of the Company (As at March 31, 2020) | Name of Shareholder | Capacity | Number of Shares Held | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Jimu Group Holdings Limited | Beneficial owner | 350,400,000 | 73% | | Huawen Industry Group Limited | Interest in controlled corporation | 350,400,000 | 73% | | Jimu Holdings Limited | Interest in controlled corporation | 350,400,000 | 73% | - **Jimu Group Holdings Limited** is the registered owner of **73%** of the Company's equity, with **Huawen Industry Group Limited** and **Jimu Holdings Limited** deemed to hold the same interest due to their controlling relationship[53](index=53&type=chunk) - Save as disclosed above, the Directors are not aware of any other persons holding substantial interests or short positions required to be disclosed under the Securities and Futures Ordinance[54](index=54&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=16&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the period ended March 31, 2020, neither the Company nor its subsidiaries redeemed, purchased, or sold any of the Company's listed securities - The Company and its subsidiaries did not engage in any redemption, purchase, or sale activities of listed securities during the reporting period[55](index=55&type=chunk) [Code of Conduct Regarding Securities Transactions by Directors](index=16&type=section&id=Code%20of%20Conduct%20Regarding%20Securities%20Transactions%20by%20Directors) The Group has adopted the dealing standards set out in the GEM Listing Rules as the code of conduct for Directors' securities transactions, and all Directors confirmed full compliance during the review period - The Group has adopted the required dealing standards set out in Rules 5.48 to 5.67 of the GEM Listing Rules as the code of conduct for Directors' securities transactions[56](index=56&type=chunk) - All Directors confirmed full compliance with the code of conduct during the review period[56](index=56&type=chunk) [Interests in Competing Business](index=16&type=section&id=Interests%20in%20Competing%20Business) For the three months ended March 31, 2020, no Director or their close associates engaged in any business competing or potentially competing with the Group's business, nor were there any other conflicts of interest - No Director or their close associates engaged in any business directly or indirectly competing with the Group's business[57](index=57&type=chunk) - No other conflicts of interest between such persons and the Group were identified[57](index=57&type=chunk) [Audit Committee](index=16&type=section&id=Audit%20Committee) The Company's Audit Committee, established on May 11, 2016, comprises three independent non-executive directors and has reviewed the Group's unaudited condensed consolidated financial statements for the three months ended March 31, 2020, confirming compliance with applicable accounting standards and Listing Rules - The Audit Committee comprises three independent non-executive Directors: Mr. Hon Ping Cho, Andy (Chairman), Mr. Kwok Chung Yung, and Mr. Li Tixing[58](index=58&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the three months ended March 31, 2020[58](index=58&type=chunk) - The Committee confirmed that the disclosure of financial information complies with applicable accounting standards, the GEM Listing Rules, and other relevant legal requirements[58](index=58&type=chunk) [Events After the Review Period](index=17&type=section&id=Events%20After%20the%20Review%20Period) Except for the loan facility provided by the ultimate holding company as disclosed in Note 10 to the financial statements, no other significant post-reporting period events occurred for the Company or the Group as of the report date - Details of significant events occurring after the reporting date are set out in Note 10 to the unaudited condensed consolidated financial statements[60](index=60&type=chunk) - Save for the loan facility mentioned in Note 10, no other significant post-reporting period events were undertaken by the Company or the Group[60](index=60&type=chunk)

（股份代號：8187） JIMU GROUP LIMITED （於開曼群島註冊成立的有限公司） 積木集團有限公司 年報 2019 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM 的定位，乃為中小型公司提供的市場，此等公司相比起其他在聯交所上市的公司帶有較高投資風險。有意 投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會承受較於主板買賣的證券為高的市場波動風險， 同時亦無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明 確表示概不就因本報告全部或任何部分內容而產生或依賴該等內容而引致的任何損失承擔任何責任。 本報告乃遵照聯交所GEM 證劵上市規則（「GEM 上市規則」）規定提供有關積木集團有限公司（「本公司」）資料 的詳情，本公司董事（「董事」）就本報告共同及個別地承擔全部責任。董事在作出一切合理查詢後確認，就彼等 所深知及確信，本報告所載的資料在各重大方面乃準確完整，並無誤導或欺詐成份，且概無遺漏任何其他事宜 致 ...

（股份代號：8187） JIMU GROUP LIMITED （於開曼群島註冊成立的有限公司） 積木集團有限公司 第三季度報告 2019 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM 乃為較於聯交所上市的其他公司帶有更高投資風險的中小型公司提供上市的市場。有意 投資者應了解投資於該等公司的潛在風險，並應經過審慎周詳考慮後方作出投資決定。 由於GEM 上市公司普遍為中小型公司，在GEM 買賣的證券可能會較於主板買賣的證券承受較 高的市場波動風險，且概不保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，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報告全部或任何部分內容而產生或依賴該等內容而引致的任 何損失承擔任何責任。 本報告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）規定提供有關積木集團有限公司（「本 公司」）資料的詳情，本公司董事（「董事」）就本報告共同及個別地承擔全部責任。董事在作出 一切合理查詢後確認，就彼等所深知及確信，本報告所載的資料在各重大方面乃準確完整，並 無誤導或欺詐成份，且概無遺漏任何其他事宜致使本報告所載任何 ...

[Financial Statements](index=3&type=section&id=Financial%20Statements) [Auditor's Review Report](index=3&type=section&id=Auditor%27s%20Review%20Report) Deloitte Touche Tohmatsu reviewed the Group's condensed consolidated financial statements for the six months ended June 30, 2019, concluding no material non-compliance with HKAS 34 - Auditor Deloitte issued an unmodified review conclusion on the interim financial statements, confirming compliance with **HKAS 34**[5](index=5&type=chunk)[7](index=7&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) For the six months ended June 30, 2019, the Group achieved a turnaround to a profit of HKD 1.038 million from a loss of HKD 14.985 million in the prior period, with improved cash flow and the adoption of HKFRS 16 impacting the balance sheet 2019 H1 Key Financial Data Overview | Metric | For the six months ended June 30, 2019 (HKD thousands) | For the six months ended June 30, 2018 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | **Revenue** | 72,798 | 73,972 | -1.6% | | **Profit (Loss) before tax** | 3,857 | (14,984) | Turnaround to profit | | **Profit (Loss) for the period** | 1,038 | (14,985) | Turnaround to profit | | **Basic earnings per share (HK cents)** | 0.22 | (3.12) | Turnaround to profit | | **Net cash from operating activities** | 11,989 | (22,941) | Turned positive | Key Balance Sheet Items as of June 30, 2019 | Metric | June 30, 2019 (HKD thousands) | December 31, 2018 (HKD thousands) | | :--- | :--- | :--- | | **Total Assets** | 105,472 | 113,673 | | **Total Liabilities** | 68,202 | 73,129 | | **Net Assets** | 37,270 | 40,544 | | **Bank Balances and Cash** | 51,612 | 42,166 | | **Bank Borrowings** | 0 | 17,373 | [Notes to the Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail accounting policies, segment information, and financial item specifics, highlighting the adoption of HKFRS 16, the shift to loan intermediary services as the primary revenue and profit driver, and disclosures on related party transactions and debt repayment [Note 2.1 Application of HKFRS 16 Leases](index=9&type=section&id=Note%202.1%20Application%20of%20HKFRS%2016%20Leases) Effective January 1, 2019, the Group adopted HKFRS 16 Leases, recognizing right-of-use assets and lease liabilities for previously operating leases, with an initial recognition of HKD 14.1 million in lease liabilities and a HKD 4.24 million impairment loss on right-of-use assets impacting opening accumulated losses - Upon initial application of the new leasing standard on January 1, 2019, **HKD 9.981 million** in right-of-use assets and **HKD 14.097 million** in lease liabilities were recognized, with an impairment leading to a **HKD 4.24 million** reduction in opening reserves[40](index=40&type=chunk)[43](index=43&type=chunk)[45](index=45&type=chunk) [Note 4 Segment Information](index=15&type=section&id=Note%204%20Segment%20Information) The Group's business is divided into footwear and loan intermediary services, with the latter significantly surpassing the former in revenue and profitability during the period, becoming the core driver as footwear revenue declined and incurred losses Segment Results (For the six months ended June 30, 2019) | Segment | Revenue (HKD thousands) | Segment Results (HKD thousands) | | :--- | :--- | :--- | | **Footwear Business** | 25,927 | (4,340) | | **Loan Intermediary Services** | 46,871 | 12,564 | | **Total** | 72,798 | 8,224 | - Compared to the prior period, footwear business revenue decreased from **HKD 62.163 million** to **HKD 25.927 million**, while loan intermediary service revenue surged from **HKD 11.809 million** to **HKD 46.871 million**, indicating a successful shift in business focus[50](index=50&type=chunk) [Note 5 Revenue from goods and services](index=18&type=section&id=Note%205%20Revenue%20from%20goods%20and%20services) For the six months ended June 30, 2019, total Group revenue was HKD 72.8 million, with footwear contributing HKD 25.93 million and loan intermediary services HKD 46.87 million, primarily from China and overseas markets respectively, with most revenue recognized at a point in time Revenue by Business and Region (For the six months ended June 30, 2019) | Business Segment | Goods/Service Type | Revenue (HKD thousands) | Primary Markets | | :--- | :--- | :--- | :--- | | **Footwear Business** | Footwear Trading | 25,927 | Australia, UAE, UK | | **Loan Intermediary Services** | Pre/Post-Loan Services | 46,871 | China | | **Total** | | **72,798** | | [Note 13, 19, 18 Key Asset and Liability Items](index=23&type=section&id=Note%2013%2C%2019%2C%2018%20Key%20Asset%20and%20Liability%20Items) At the period-end, the Group's balance sheet saw significant changes, including a substantial reduction in trade receivables and contract assets reflecting footwear business contraction, full repayment of bank borrowings, and the addition of an unsecured, interest-free HKD 7 million amount due to a director - Trade receivables significantly decreased from **HKD 20.84 million** to **HKD 6.85 million**[67](index=67&type=chunk) - Contract assets, primarily related to loan intermediary services, decreased from **HKD 35.47 million** to **HKD 19.16 million**[71](index=71&type=chunk) - Bank borrowings of **HKD 17.37 million** have been fully repaid[78](index=78&type=chunk)[79](index=79&type=chunk) - A new amount of **HKD 7 million** is due to a director, which is unsecured, interest-free, and repayable on demand[76](index=76&type=chunk) [Note 25 Related Party Disclosures](index=29&type=section&id=Note%2025%20Related%20Party%20Disclosures) The Group's loan intermediary business is closely linked to related parties, with most business originating from clients obtaining financing through online information intermediary platforms operated by the Company's associates, and as of end-2018, bank borrowings were secured by Executive Director Mr. Ho Kin Wai's investment property - The vast majority of the Group's loan intermediary services rely on online information intermediary platforms operated by related parties to acquire customers and investors[87](index=87&type=chunk) [Management Discussion and Analysis](index=30&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=30&type=section&id=Business%20Review%20and%20Outlook) The Group is strategically transforming from traditional footwear to emerging loan intermediary services, with the footwear business facing challenges and under review, while the loan intermediary business, launched in 2018, shows strong growth in China's lower-tier cities and is a key driver for future investment [Footwear Business](index=30&type=section&id=Footwear%20Business) The footwear business faced negative impacts from macro factors like Brexit, EU economic slowdown, and US-China trade tensions, leading to reduced customer confidence, lower revenue, and profit pressure, resulting in a loss despite cost-cutting measures, prompting management to assess its long-term viability - Due to global economic uncertainties and intense industry competition, the footwear business faces declining revenue and profit pressure, with management assessing its long-term viability[92](index=92&type=chunk) [Loan Intermediary Business](index=30&type=section&id=Loan%20Intermediary%20Business) Since its launch in April 2018, the loan intermediary business has rapidly expanded with over 50 branches in China, focusing on serving SMEs, sole proprietors, and farmers in lower-tier cities, leveraging its credit rating system and offline teams for continuous growth, with management optimistic about future expansion - The loan intermediary business focuses on China's third and fourth-tier cities, with over **50** branches established to serve small and micro enterprises, individual businesses, and farmers[93](index=93&type=chunk) Loan Intermediary Business Key Operating Data (For the six months ended June 30) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | **Number of Customers** | 3,518 | 1,455 | | **Loans Facilitated (RMB thousands)** | 292,955 | 101,870 | | **Average Loan Facilitated Amount (RMB thousands)** | 83.3 | 70.0 | - Management is optimistic about the loan intermediary business outlook and plans to invest more resources, including increasing regional coverage, expanding the target customer base, and developing upstream and downstream opportunities[96](index=96&type=chunk) [Financial Review](index=32&type=section&id=Financial%20Review) In H1 2019, the Group's total revenue slightly decreased by 1.6% year-on-year, but internal structure shifted dramatically with footwear revenue halving while loan intermediary revenue tripled to account for 64.4% of total revenue, leading to adjusted cost structures, increased staff welfare expenses, and an overall turnaround to approximately HKD 1 million net profit due to strong loan business profitability [Revenue Analysis](index=32&type=section&id=Revenue%20Analysis) For the six months ended June 30, 2019, total revenue was HKD 72.8 million, with footwear business revenue significantly decreasing by 58.3% to HKD 25.9 million due to global economic uncertainties, while loan intermediary business revenue tripled to HKD 46.9 million due to full operation and stable customer growth Segment Revenue Details (For the six months ended June 30) | Segment | 2019 (HKD thousands) | 2018 (HKD thousands) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | **Footwear Trading** | 25,927 | 62,163 | -58.3% | | **Loan Intermediary Services** | 46,871 | 11,809 | +296.9% | | **Total** | **72,798** | **73,972** | **-1.6%** | [Cost and Expense Analysis](index=33&type=section&id=Cost%20and%20Expense%20Analysis) During the period, inventory purchase costs decreased by 57.4% in line with declining footwear sales, while staff welfare expenses significantly increased to HKD 38.8 million due to the expansion of the loan intermediary business, and finance costs rose primarily due to interest on lease liabilities recognized under the new leasing standard - Cost of purchases and changes in inventories decreased by **57.4%** year-on-year to **HKD 23.2 million**, consistent with the decline in footwear business revenue[103](index=103&type=chunk) - Staff welfare expenses increased by **73.9%** year-on-year to **HKD 38.8 million**, primarily due to an increase in staff for the loan intermediary business[106](index=106&type=chunk) [Profit for the Period Analysis](index=34&type=section&id=Profit%20for%20the%20Period%20Analysis) The Group achieved a significant turnaround to a profit of approximately HKD 1 million in H1 2019, compared to a loss of HKD 15 million in the prior period, primarily driven by the loan intermediary services segment's HKD 12.6 million pre-tax profit, which offset the footwear business segment's HKD 4.3 million pre-tax loss - The Group turned from a loss of **HKD 15 million** in the prior period to a profit of **HKD 1 million** in the current period[111](index=111&type=chunk) - The loan intermediary services segment contributed **HKD 12.6 million** in pre-tax profit, while the footwear business segment recorded a pre-tax loss of **HKD 4.3 million**[111](index=111&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2019, the Group's financial position was robust with no outstanding bank borrowings and a zero debt-to-equity ratio, cash and cash equivalents increased to approximately HKD 51.6 million, and a current ratio of about 1.9 times indicated ample working capital, with operations primarily funded by business revenue, cash, and director advances Liquidity Metrics | Metric | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | **Cash and Cash Equivalents** | Approx. HKD 51.6 million | Approx. HKD 42.2 million | | **Bank Borrowings** | 0 | Approx. HKD 17.4 million | | **Debt-to-Equity Ratio** | Zero | Zero | | **Current Ratio** | Approx. 1.9 times | Approx. 1.8 times | [Use of Proceeds from Prospectus](index=39&type=section&id=Use%20of%20Proceeds%20from%20Prospectus) The company's net proceeds from listing were approximately HKD 44.6 million, with HKD 28.8 million utilized and HKD 15.8 million remaining as of June 30, 2019, following multiple reallocations of over HKD 15 million from brand licensing, corporate image, and IT system enhancements to general working capital and other corporate purposes - As of June 30, 2019, of the **HKD 44.6 million** net proceeds from the listing, **HKD 28.8 million** has been utilized, with **HKD 15.8 million** remaining[137](index=137&type=chunk) - The company repeatedly changed the use of proceeds, reallocating funds originally designated for brand licensing, corporate image, and IT systems to general working capital[136](index=136&type=chunk)[140](index=140&type=chunk) [Corporate Governance and Other Information](index=41&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance](index=41&type=section&id=Corporate%20Governance) The company complied with the GEM Listing Rules' Corporate Governance Code during the period, with one deviation regarding the absence of specific terms for non-executive directors, which the company believes is mitigated by their rotation and re-election at annual general meetings, and all directors confirmed compliance with the adopted code of conduct for securities transactions - The company complied with the Corporate Governance Code, with the sole deviation being the absence of specific terms for non-executive directors, who are subject to retirement by rotation[141](index=141&type=chunk) [Directors' and Substantial Shareholders' Interests](index=42&type=section&id=Directors%27%20and%20Substantial%20Shareholders%27%20Interests) As of June 30, 2019, controlling shareholder Jimu Group Holdings Limited held 73% of the company's shares, while Executive Director Mr. Ho Kin Wai held 2% through his controlled corporation, and Mr. Dong Jun and Mr. Wen Junming held interests in the associated corporation Jimu Holdings - Controlling shareholder Jimu Group Holdings Limited holds **350,400,000** shares, representing **73%** of the total share capital[150](index=150&type=chunk) - Executive Director Mr. Ho Kin Wai holds **9,600,000** shares, representing **2%** of the total share capital, through his controlled corporation[146](index=146&type=chunk) [Changes in Directors' Information and Audit Committee](index=44&type=section&id=Changes%20in%20Directors%27%20Information%20and%20Audit%20Committee) During the period, the Board experienced several changes, including the retirement/resignation of a non-executive director and an independent non-executive director, along with new appointments, and the Audit Committee, comprising four independent non-executive directors, reviewed the unaudited interim results with assistance from external auditor Deloitte - In May 2019, the company's Board of Directors underwent several personnel changes, including the retirement of Mr. Cheung Chung Yee, the resignation of Mr. Liu Jiangtao, and the appointments of Mr. Lau Kai Pong and Mr. Li Tai Yan[154](index=154&type=chunk)[155](index=155&type=chunk) - The Audit Committee, comprising four independent non-executive directors, reviewed the interim financial statements with the assistance of auditor Deloitte[157](index=157&type=chunk)