Financial Performance - The company recorded a net loss of approximately HKD 10.1 million for the fiscal year ending December 31, 2020, compared to a net loss of approximately HKD 2.0 million in the same period of 2019, representing an increase in net loss of about 405%[10]. - Revenue from licensed games and self/co-developed games decreased by approximately 36.0% compared to the same period in 2019, contributing to the increase in net loss[10]. - The company's revenue decreased by approximately 36.0% from about HKD 80.2 million in 2019 to approximately HKD 51.3 million for the year ended December 31, 2020, primarily due to reduced operational income from licensed and self/co-developed games and delays in new game launches[24]. - Revenue from self/co-developed games was HKD 14.2 million (27.6% of total revenue) in 2020, down from HKD 19.2 million (23.9%) in 2019[25]. - Revenue from licensed games was HKD 35.7 million (69.7% of total revenue) in 2020, down from HKD 59.2 million (73.9%) in 2019[25]. - Mobile games generated HKD 43.9 million (85.5% of total revenue) in 2020, compared to HKD 72.3 million (90.1%) in 2019[27]. - The company's gross profit decreased by approximately 53.7% from about HKD 23.1 million in 2019 to approximately HKD 10.7 million in 2020, with a gross margin of about 20.9%, down 7.9 percentage points from 28.8% in 2019[29]. - The total comprehensive loss for the year was HKD 11,086,000, compared to a loss of HKD 2,219,000 in 2019, indicating a worsening financial position[196]. Market Position and Strategy - The company faces intense competition in the gaming industry in Hong Kong and Taiwan, with competitors having stronger financial, technical, and market resources[11]. - The company has secured rights to adapt various popular literature, comics, and animations into games, which is expected to maximize market recognition and acceptance with lower marketing costs[12]. - The company operates and distributes games through its own platform and third-party distribution platforms, including Apple Store and Google Play, enhancing its market position[16]. - The company aims to leverage over a decade of experience in game development, operation, and distribution in the Hong Kong market to stand out among competitors[11]. - The company is focused on integrating upstream and downstream services in the gaming industry value chain to improve its market position[16]. - The company plans to expand its market share in the mobile gaming industry through organic growth and strategic partnerships with game developers and distributors[17]. - The company continues to explore new strategies and opportunities for market expansion in the gaming sector[11]. Corporate Governance - The company is committed to maintaining high levels of corporate governance, which is crucial for gaining and maintaining the trust of shareholders and stakeholders[84]. - The board of directors has adopted the corporate governance code and has complied with all applicable provisions as of December 31, 2020[85]. - The board is responsible for overseeing the management of the company and ensuring operations align with the interests of shareholders and stakeholders[87]. - The board has reviewed the corporate governance policies and is satisfied with their effectiveness[90]. - The company has appointed three independent non-executive directors, constituting over one-third of the board, ensuring a balance of skills and experience[91]. - The board of directors has established three committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, to oversee specific areas of the company's affairs[97]. - The Remuneration Committee reviewed the remuneration of directors and senior management, concluding that it is fair and reasonable as of the year ending December 31, 2020[98]. - The Audit Committee held four meetings during the year to review the company's financial performance and internal control systems[102]. - The company provided training to all directors, ensuring they attended at least one training course related to good corporate governance practices during the year ending December 31, 2020[95]. - The company has established clear written terms of reference for all committees, which are available on the stock exchange and the company's website[97]. Risk Management - The board is responsible for monitoring the effectiveness of the group's risk management and internal control systems, which are designed to manage risks rather than eliminate them[131]. - The group established its enterprise risk management framework in 2016, following the COSO framework to effectively manage risks[135]. - The risk register is updated at least annually to track identified major risks and actions taken to mitigate them[136]. - The audit committee reviews the effectiveness of the risk management and internal control systems annually[132]. - The board believes that the internal control and risk management systems are effective and adequate based on independent assessments[132]. Financial Position - The company had cash and cash equivalents of approximately HKD 38.2 million as of December 31, 2020, down from HKD 45.0 million in 2019, with no bank borrowings[36]. - As of December 31, 2020, the company's debt-to-asset ratio was approximately 36.7%, an increase from 27.7% as of December 31, 2019[43]. - Total assets as of December 31, 2020, were HKD 53,762,000, down from HKD 62,461,000 in 2019, reflecting a decline of 14.3%[196]. - Total liabilities increased to HKD 19,711,000 in 2020 from HKD 17,324,000 in 2019, representing an increase of 13.8%[196]. - The net current asset value decreased to HKD 29,516,000 in 2020 from HKD 38,332,000 in 2019, a decline of 23.1%[196]. - The company reported that the total reserves available for distribution to shareholders amounted to approximately HKD 32,748,000, down from HKD 34,050,000 in 2019[161]. Employee and Management - The total employee cost for the year ended December 31, 2020, was approximately HKD 17.5 million, down from HKD 20.0 million for the year ended December 31, 2019[49]. - The company employed 53 employees as of December 31, 2020, a decrease from 60 employees as of December 31, 2019[49]. - The management team is composed of individuals with diverse backgrounds and expertise, enhancing the company's strategic capabilities[69]. Shareholder Relations - The company has established a policy for shareholder communication to ensure timely and unbiased access to information for shareholders and potential investors[140]. - The company will hold its annual general meeting on May 10, 2021, where the re-election of directors will be proposed[104]. - The company does not recommend the distribution of a final dividend for the year ended December 31, 2020, maintaining the same stance as in 2019[151]. - The company will continuously review its dividend policy and retains the discretion to update or modify it at any time[125].

Financial Performance - For the three months ended September 30, 2020, the group's revenue was HKD 12,453,000, a decrease of 38.9% compared to HKD 20,380,000 for the same period in 2019[3] - The gross profit for the nine months ended September 30, 2020, was HKD 6,548,000, down 67.8% from HKD 20,352,000 in the previous year[3] - The group reported a net loss of HKD 5,549,000 for the nine months ended September 30, 2020, compared to a loss of HKD 541,000 for the same period in 2019[3] - The total comprehensive loss for the nine months ended September 30, 2020, was HKD 6,027,000, compared to a loss of HKD 314,000 in the same period of 2019[3] - The basic and diluted loss per share for the nine months ended September 30, 2020, was HKD 0.03, compared to a loss of HKD 0.01 for the same period in 2019[3] - The company recorded a net loss of approximately HKD 5.5 million for the nine months ended September 30, 2020, compared to a net loss of approximately HKD 0.5 million for the same period in 2019, indicating a significant decline in performance[26] - Revenue decreased by approximately 43.4% from about HKD 64.7 million for the nine months ended September 30, 2019, to about HKD 36.6 million for the same period in 2020, primarily due to a reduction in game operation income from licensed and self-developed games[27] Revenue and Income Sources - The total revenue for the nine months ended September 30, 2020, was HKD 36,611,000, a decrease of 43.5% from HKD 64,737,000 in 2019[3] - Game operation income for the three months ended September 30, 2020, was HKD 12.1 million, down from HKD 19.7 million in the same period of 2019, reflecting a decline of approximately 38.5%[18] - Total revenue from customer contracts and other income for the nine months ended September 30, 2020, was HKD 38.8 million, compared to HKD 65.1 million for the same period in 2019[18] - The company’s revenue from game publishing for the nine months ended September 30, 2020, was HKD 530,000, a decrease from HKD 614,000 in the same period of 2019[18] - Other income increased significantly to HKD 2,209,000 for the nine months ended September 30, 2020, compared to HKD 325,000 in 2019, marking a growth of 577.5%[3] Expenses and Cost Management - The company's administrative expenses for the nine months ended September 30, 2020, were HKD 8,371,000, down from HKD 10,143,000 in the previous year, reflecting a reduction of 17.5%[3] - Selling expenses decreased by approximately 45.9% from HKD 10.9 million to HKD 5.9 million, mainly due to reduced promotional and advertising expenses[31] - Administrative expenses decreased by approximately 16.8% from HKD 10.1 million to approximately HKD 8.4 million, attributed to lower employee costs and legal/professional fees[32] - The cost of services provided by the group decreased by approximately 32.2% from HKD 44.4 million for the nine months ended September 30, 2019, to approximately HKD 30.1 million for the same period in 2020[28] Equity and Financial Position - The company's total equity as of September 30, 2020, was HKD 39,110,000, down from HKD 47,356,000 at the beginning of the year[4] - The company experienced a foreign exchange loss of HKD 478,000 for the nine months ended September 30, 2020, compared to a gain of HKD 227,000 in the previous year[4] Dividends and Taxation - The company did not declare or pay any dividends during the nine months ended September 30, 2020, consistent with the same period in 2019[23] - The company did not incur any taxable profits in Hong Kong, Taiwan, or China during the period, resulting in no income tax provisions being made[20][21][22] Strategic Plans and Market Position - The company plans to enhance its competitiveness in the mobile gaming market in Hong Kong and Taiwan by introducing more quality licensed games and focusing on mobile gaming and marketing efforts[26] - The company operates primarily in Hong Kong, which is considered its main geographical segment for reporting purposes[14] Corporate Governance and Compliance - The company confirmed compliance with the GEM Listing Rules regarding securities transactions by directors during the review period[46] - The company confirmed compliance with the GEM listing rules regarding corporate governance during the nine months ending September 30, 2020[48] - The company maintains a minimum public float of 25% as required by regulations[49] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated results for the nine months ending September 30, 2020, ensuring compliance with applicable accounting standards and GEM listing rules[54] Shareholder Information - Major shareholders include Ms. Huang Pei-Yin with a 41.74% stake and Mr. Shi Ren-Yi with an 18.13% stake in the company[36] Events and Changes - No significant acquisitions or disposals occurred during the nine months ended September 30, 2020[44] - There were no significant events affecting the group after the reporting period up to the date of this report[55] - No stock options were granted, exercised, expired, or lapsed during the nine months ending September 30, 2020, and there are no unexercised stock options under the plan[52]

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 24,158,000, a decrease of 45.4% compared to HKD 44,357,000 for the same period in 2019[7] - Gross profit for the six months ended June 30, 2020, was HKD 4,277,000, down 69.5% from HKD 14,011,000 in 2019[7] - The company reported a loss before tax of HKD 5,815,000 for the six months ended June 30, 2020, compared to a loss of HKD 1,325,000 in the same period of 2019[7] - The company incurred a comprehensive loss of HKD 6,003,000 for the six months ended June 30, 2020, compared to a loss of HKD 1,036,000 in the same period of 2019[7] - The basic and diluted loss per share for the six months ended June 30, 2020, was HKD 0.04, compared to a profit of HKD 0.01 in 2019[7] - Total comprehensive loss for the period ended June 30, 2020, was HKD 6,003,000, compared to a loss of HKD 1,036,000 for the same period in 2019, indicating a significant increase in losses[10] - For the six months ended June 30, 2020, the company reported a net loss of approximately HKD 5.8 million, compared to a net loss of approximately HKD 1.3 million for the same period in 2019[44] Assets and Liabilities - Total assets as of June 30, 2020, were HKD 50,342,000, a decrease from HKD 55,656,000 as of December 31, 2019[8] - Cash and cash equivalents decreased to HKD 38,110,000 as of June 30, 2020, from HKD 44,981,000 at the end of 2019[8] - The company's equity attributable to owners decreased to HKD 39,134,000 as of June 30, 2020, from HKD 45,137,000 at the end of 2019[8] - The company reported a decrease in contract liabilities to HKD 11,125,000 as of June 30, 2020, from HKD 8,535,000 at the end of 2019[8] - Accounts receivable as of June 30, 2020, was HKD 3,955 thousand, an increase from HKD 3,127 thousand in 2019[35] Cash Flow - Net cash used in operating activities for the six months ended June 30, 2020, was HKD 4,446,000, compared to HKD 300,000 in the same period of 2019, reflecting a deterioration in cash flow[13] - The company reported a net cash outflow of HKD 6,683,000 for the six months ended June 30, 2020, compared to HKD 1,624,000 in the previous year[13] - Total cash and cash equivalents decreased to HKD 38,110,000 as of June 30, 2020, down from HKD 44,353,000 at the end of the same period in 2019[13] Revenue Breakdown - Revenue from Hong Kong for the six months ended June 30, 2020, was HKD 21,033,000, down 46.3% from HKD 39,144,000 in 2019[23] - Revenue from Taiwan for the same period was HKD 2,867,000, a decrease of 42.9% from HKD 5,029,000 in 2019[23] - The group's revenue decreased by approximately 45.5% from about HKD 44.4 million for the six months ended June 30, 2019, to about HKD 24.2 million for the six months ended June 30, 2020, primarily due to a decline in gaming operation income from licensed and self-developed games[45] Expenses - The cost of services provided decreased by approximately 34.3% from about HKD 30.3 million for the six months ended June 30, 2019, to about HKD 19.9 million for the same period in 2020, mainly due to reduced channel costs and patent fees[46] - Gross profit fell by approximately 69.3% from about HKD 14.0 million for the six months ended June 30, 2019, to about HKD 4.3 million for the same period in 2020, with a gross margin decline of 13.7 percentage points to 17.8%[47] - The group's selling expenses decreased by approximately 49.4% from about HKD 8.5 million for the six months ended June 30, 2019, to about HKD 4.3 million for the same period in 2020, primarily due to reduced promotional and advertising expenses[49] - Administrative expenses decreased by approximately 14.3% from about HKD 7.0 million for the six months ended June 30, 2019, to about HKD 6.0 million for the same period in 2020, mainly due to a reduction in legal and professional fees[50] Future Plans - The company plans to focus on market expansion and new product development to improve future performance[6] - The company plans to enhance its competitiveness in the mobile gaming market in Hong Kong and Taiwan by introducing more quality licensed games and focusing on mobile gaming[44] Corporate Governance - The financial statements have been prepared in accordance with the new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial position or performance of the company[21] - The company confirmed compliance with the minimum public float requirement of 25%[81] - The company has adopted the GEM Listing Rules for securities trading standards for directors[79] - The company has adhered to all applicable corporate governance codes during the reporting period[80] - The audit committee was established on December 23, 2015, in compliance with GEM listing rules, consisting of three independent non-executive directors[86] - The unaudited consolidated results for the six months ended June 30, 2020, were reviewed by the audit committee and management, confirming compliance with applicable accounting standards and GEM listing rules[86] Shareholder Information - Major shareholder Huang Tiansheng holds 66,787,235 shares, representing 41.74% of the company's equity[70] - Right One Global Limited, co-owned by Shi Renyi and Chen Lizhu, holds 29,004,337 shares, accounting for 18.13% of the company's equity[70] - Nineyou International Limited holds 18,367,182 shares, which is 11.48% of the company's equity[70] Dividends and Acquisitions - The company did not declare or pay any dividends for the six months ended June 30, 2020, consistent with the same period in 2019[31] - The company had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2020[55] - No significant acquisitions or disposals occurred during the six months ending June 30, 2020[77] - The company did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2020[76] - There were no outstanding stock options granted, exercised, expired, or lapsed during the six months ending June 30, 2020[84] Events After Reporting Period - There were no significant events affecting the group after the reporting period up to the report date[87] - The interim results announcement and report for the six months ended June 30, 2020, will be sent to shareholders and published on the company’s website[88]

Financial Performance - Revenue for the three months ended March 31, 2020, was HKD 12,814,000, a decrease of 43.8% compared to HKD 22,786,000 for the same period in 2019[3] - Gross profit for the same period was HKD 2,273,000, down 68.4% from HKD 7,177,000 year-on-year[3] - The company reported a loss before tax of HKD 3,870,000, compared to a loss of HKD 1,469,000 in the previous year, representing a 163.5% increase in losses[3] - Total comprehensive loss for the period was HKD 3,629,000, compared to a loss of HKD 1,312,000 in the same period last year[3] - Basic and diluted loss per share was HKD 0.02 for the three months ended March 31, 2020, compared to HKD 0.01 for the same period in 2019[3] - The net loss for the three months ended March 31, 2020, was approximately HKD 3.9 million, compared to a net loss of about HKD 1.5 million for the same period in 2019[22] - The company's revenue decreased by approximately 43.9% from about HKD 22.8 million for the three months ended March 31, 2019, to about HKD 12.8 million for the same period in 2020, primarily due to a decline in game operation income from licensed mobile games and self-developed games[28] - Game operation revenue for the three months ended March 31, 2020, was HKD 12.5 million, down from HKD 22.5 million in 2019, representing a decline of approximately 44.4%[15] Equity and Cash Position - The company’s total equity as of March 31, 2020, was HKD 41,508,000, down from HKD 46,044,000 at the same time last year[4] - The company’s cash and cash equivalents were not disclosed in the provided documents, indicating a need for further financial analysis[6] Expenses - The cost of services provided for the three months ended March 31, 2020, was approximately HKD 10.5 million, a decrease of about 32.7% compared to approximately HKD 15.6 million for the same period in 2019[29] - Selling expenses for the three months ended March 31, 2020, were approximately HKD 2.7 million, a decrease of about 43.8% from approximately HKD 4.8 million in the same period of 2019[31] - Administrative expenses were approximately HKD 3.5 million for the three months ended March 31, 2020, down about 12.5% from approximately HKD 4.0 million in the same period of 2019[32] Dividends and Shareholder Actions - The company did not declare or pay any dividends during the three months ended March 31, 2020, consistent with the previous year[17] - The board did not recommend the payment of dividends for the three months ended March 31, 2020[34] New Developments and Projects - The company plans to launch a new MMORPG titled "Gangster M: In the Underworld" in the third quarter of 2020, developed in collaboration with Peace Publishing Co., Ltd.[23] - The company has obtained authorization to develop a new mobile game "Fire Phoenix: Heroes of the Chaos Era," with the first test scheduled for the second quarter of 2020 in China[25] - The company has secured rights to operate the mobile game "Snack Battle" in Hong Kong, Macau, and Taiwan, with a launch expected in the second quarter of 2020[26] Compliance and Governance - The company has not adopted any new accounting standards that would have a significant impact on its financial performance for the period[9] - The company continues to evaluate the impact of new accounting standards on its operations and financial condition[9] - The company has adopted the GEM Listing Rules regarding the standards of securities transactions by directors, confirming compliance throughout the review period[46] - The company has adhered to the corporate governance code and principles as outlined in the GEM Listing Rules during the three-month period ending March 31, 2020[47] - The audit committee, consisting of three independent non-executive directors, has reviewed and approved the group's financial reporting procedures and internal control systems[50] - The unaudited consolidated results for the three months ending March 31, 2020, have been reviewed by the audit committee and management, confirming compliance with applicable accounting standards and GEM Listing Rules[52] Other Information - There were no significant events affecting the group after the reporting period[20] - There were no significant acquisitions or disposals during the three months ended March 31, 2020[42] - The company and its subsidiaries did not purchase, sell, or redeem any of the company's listed securities during the three months ended March 31, 2020[43] - There were no business activities that could potentially compete with the company's operations during the three months ended March 31, 2020[44] - No share options were granted, exercised, expired, or lapsed during the three-month period ending March 31, 2020, and there are no unexercised share options under the plan[49] - No significant events affecting the group occurred after the reporting period up to the date of this report[53]

Financial Performance - For the fiscal year ended December 31, 2019, the company recorded a net loss of approximately HKD 2.0 million, a significant decrease from a net loss of approximately HKD 24.6 million in the same period of 2018, primarily due to tighter control over service costs, selling expenses, and administrative expenses [10][15]. - The group's revenue decreased by approximately 23.9% from about HKD 105.4 million in 2018 to approximately HKD 80.2 million for the year ended December 31, 2019, primarily due to a reduction in game operation revenue by about HKD 25.2 million [20]. - Revenue from licensed games accounted for 73.9% of total revenue in 2019, down from 88.3% in 2018, while revenue from self-developed or co-developed games increased to 23.9% from 9.2% [21]. - Gross profit increased by approximately 6.9% to about HKD 23.1 million in 2019, with the gross profit margin rising by approximately 8.3 percentage points to 28.8% [25]. - The group recorded a loss of approximately HKD 2.0 million for the year ended December 31, 2019, a significant improvement from a loss of approximately HKD 24.6 million in 2018 [30]. - The company reported a loss before tax of HKD 1,963,000 for 2019, improving from a loss of HKD 24,634,000 in 2018 [188]. - Total revenue for the year ended December 31, 2019, was HKD 80,180,000, a decrease of 23.9% compared to HKD 105,447,000 in 2018 [188]. - Total assets as of December 31, 2019, were HKD 62,461,000, down from HKD 68,488,000 in 2018, representing a decrease of 8.3% [188]. - Total liabilities decreased to HKD 17,324,000 in 2019 from HKD 21,132,000 in 2018, a reduction of 18.5% [188]. - The net asset value as of December 31, 2019, was HKD 45,137,000, down from HKD 47,356,000 in 2018 [188]. Cost Management - The cost of services provided decreased by approximately 31.9% to about HKD 57.1 million for the year ended December 31, 2019, from about HKD 83.9 million in 2018 [24]. - Administrative expenses decreased by approximately 26.2% to about HKD 12.7 million for the year ended December 31, 2019, primarily due to reductions in employee costs and legal and professional fees [28]. - The total employee cost for the year ended December 31, 2019, was approximately HKD 20.0 million, a decrease from approximately HKD 22.0 million in 2018 [45]. Market Strategy - The company aims to expand its market share in the mobile gaming industry through organic growth and strategic partnerships, focusing on investing selectively in game developers, development teams, and other gaming operators and distributors [11][16]. - The company plans to enhance its brand awareness by associating its brand with high-quality games and attractive gaming experiences, investing in talent, expanding its game development team, and upgrading software and hardware to meet increasing technical demands [11]. - The company intends to introduce more quality licensed games and focus on mobile gaming to strengthen its market positioning and enhance marketing efforts [16]. - The company operates primarily in the Hong Kong and Taiwan markets, utilizing its game distribution platform and third-party distribution platforms to operate and publish self-developed and co-developed games [15]. Corporate Governance - The company has a strong emphasis on compliance and corporate governance, overseen by non-executive directors [63]. - The company is committed to maintaining high standards of corporate governance and compliance [63]. - The board has adopted the corporate governance code and has complied with all applicable provisions during the year ended December 31, 2019 [81]. - The board is responsible for overseeing the management of the company and ensuring alignment with shareholder interests [83]. - The company has appointed three independent non-executive directors, constituting over one-third of the board [87]. - The independent non-executive directors have confirmed their independence according to the criteria set out in the GEM Listing Rules [87]. - The board has reviewed the corporate governance policies and is satisfied with their effectiveness [83]. - The company has established a code of conduct for securities trading by directors, with no violations reported during the review period [82]. - The company is focused on creating long-term value for shareholders through effective governance practices [80]. - The company has established three board committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee, to oversee specific areas of the company's affairs [93]. Risk Management - The board is responsible for monitoring the risk management and internal control systems, which are designed to manage risks rather than eliminate them [127]. - The company appointed Zhiwei Management Consultants Limited to independently review and assess the effectiveness of its risk management and internal control systems, with recommendations adopted by the board [128]. - The company has established a corporate governance framework for risk management, following the COSO framework, to effectively manage various risks [131]. - The risk register is maintained to track identified major risks and is updated at least annually to ensure proactive risk management [132]. - The company has no internal audit department currently but will continue to review the need for one at least annually [135]. Shareholder Communication - The company has adopted a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors [136]. - Multiple channels have been established for communication with shareholders, enhancing engagement with existing shareholders and potential investors [137]. - The company will hold its annual general meeting on May 8, 2020, to discuss key matters with shareholders [100]. Environmental Compliance - The company has maintained compliance with all relevant environmental laws and regulations throughout the year ending December 31, 2019 [140]. - The company has adopted green initiatives and measures in its daily operations, including resource recycling and energy-saving practices [140]. Dividend Policy - The company has a dividend policy that considers financial performance, shareholder equity, and future capital requirements before proposing any dividends [119]. - The company did not recommend the distribution of a final dividend for the year ended December 31, 2019, consistent with the previous year [146]. - The company will continue to review its dividend policy and retains the discretion to update or modify it at any time, with no legal obligation to declare dividends [121].

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。GEM的較高風險及其他特色表明GEM較適 合專業及其他經驗豐富的投資者。 由於GEM上市公司一般為中小型公司，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，概不對因本報告全部或任何部分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。 本報告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）的規定而提供有關智傲控股有限公司（「本公司」）及 其附屬公司（統稱「本集團」）的資料，本公司董事（「董事」）願就本報告共同及個別承擔全部責任。董事經作出一 切合理查詢後確認，就彼等深知及確信，本報告所載的資料在各重大方面均屬準確及完整，且無誤導或欺詐成 分，及本報告並無遺漏其他事宜致使本報告所載任何內容或本報告有誤導成分。 董 ...

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上市公司一般為中小型公司，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 對因本報告全部或任何部分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。 本報告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）的規定而提供有關智傲控股有限公司（「本公司」）及其附屬公司 （統稱「本集團」）的資料，本公司董事（「董事」）願就本報告共同及個別承擔全部責任。董事經作出一切合理查詢後確認，就 彼等深知及確信，本報告所載的資料在各重大方面均屬準確及完整，且無誤導或欺詐成分，及本報告並無遺漏其他事宜致 使本報告所載任何內容或本報告有誤導成分。 | 公司資料 | 2 | | --- | --- | | 簡明綜合中期財務報表審 ...

Financial Performance - The group reported revenue of HKD 36,189,000 for the three months ended March 31, 2019, compared to HKD 22,786,000 in the same period of 2018, representing an increase of 58.8%[2] - Gross profit for the period was HKD 12,136,000, up from HKD 7,177,000 in the previous year, indicating a growth of 69.5%[2] - The group achieved a profit before tax of HKD 2,363,000, compared to a loss of HKD 1,469,000 in the same period of 2018, marking a turnaround in performance[2] - Total comprehensive income for the period was HKD 2,260,000, compared to a loss of HKD 1,312,000 in the previous year, reflecting a significant improvement[2] - The company's revenue decreased by approximately 37.0% from about HKD 36.2 million in the three months ended March 31, 2018, to about HKD 22.8 million in the same period of 2019[18] - The net loss for the three months ended March 31, 2019, was approximately HKD 1.5 million, compared to a net profit of about HKD 2.4 million in the same period of 2018[17] - The gross profit decreased by approximately 40.5% from about HKD 12.1 million in the three months ended March 31, 2018, to about HKD 7.2 million in the same period of 2019[20] - The gross profit margin decreased by approximately 1.8 percentage points from about 33.4% in the three months ended March 31, 2018, to about 31.6% in the same period of 2019[20] Revenue Breakdown - Revenue from Hong Kong decreased to HKD 19,916,000 from HKD 34,960,000 year-on-year, a decline of 43%[9] - Revenue from Taiwan was HKD 1,201,000, while other regions contributed HKD 2,773,000, up from HKD 28,000 in the previous year[9] - The company did not have any single customer contributing 10% or more to its revenue during the reporting period, indicating a diversified customer base[10] Expenses and Costs - The cost of services provided decreased by approximately 35.3% from about HKD 24.1 million in the three months ended March 31, 2018, to about HKD 15.6 million in the same period of 2019[19] - Sales expenses increased by approximately 20.0% from about HKD 4.0 million in the three months ended March 31, 2018, to about HKD 4.8 million in the same period of 2019, mainly due to increased promotion and advertising expenses for new games[21] - Administrative expenses decreased by approximately 31.0% from about HKD 5.8 million in the three months ended March 31, 2018, to about HKD 4.0 million in the same period of 2019[23] Shareholder Information - As of March 31, 2019, major shareholders include Mr. Huang with a controlled entity holding 66,787,235 shares, representing approximately 41.74% of the company's equity[28] - Ms. Shi holds 29,004,337 shares, accounting for approximately 18.13% of the company's equity[28] - Nineyou International Limited and its controlled entities collectively hold 18,367,182 shares, which is about 11.48% of the company's equity[28] Corporate Governance - The audit committee reviewed the unaudited consolidated results for the three months ending March 31, 2019, and found them compliant with applicable accounting standards[39] - The group has not applied any new accounting standards that have been issued but not yet effective, and is currently assessing their potential impact[7] - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and reflect the group's ongoing operations in online and mobile game development and distribution[6] Future Plans and Events - The company plans to introduce more quality licensed games and focus on mobile games to strengthen market positioning and enhance marketing efforts[17] - There were no significant events affecting the company after the reporting period[15] - No dividends were declared or paid by the company or any of its subsidiaries for the three months ended March 31, 2019[13] - No significant acquisitions or disposals occurred during the three months ending March 31, 2019[31] - The company did not purchase, sell, or redeem any of its listed securities during the three months ending March 31, 2019[32] - There were no stock options granted, exercised, expired, or lapsed during the three months ending March 31, 2019[38] - No events occurred after the reporting period that would have a significant impact on the group[40]

Financial Performance - The company reported a net loss of approximately HKD 24.6 million for the fiscal year 2018, compared to a net loss of approximately HKD 17.7 million in 2017, indicating an increase in losses[9]. - The increase in net loss was primarily due to impairment losses on intangible assets related to certain games launched in Q3 and Q4, which did not meet performance expectations[9]. - The company's revenue increased by approximately 32.4% from about HKD 79.6 million in 2017 to approximately HKD 105.4 million for the year ended December 31, 2018, primarily due to increased game operation income from licensed mobile games[22]. - Revenue from licensed games accounted for 88.3% of total revenue in 2018, rising from 70.5% in 2017, while revenue from self-developed games decreased to 9.2% from 22.4%[24]. - Gross profit decreased by approximately 17.9% to about HKD 21.6 million, with the gross margin dropping by approximately 12.5 percentage points to about 20.5% due to rising royalty and channel costs[28]. - The company recorded a loss of approximately HKD 24.6 million for the year ended December 31, 2018, compared to a loss of about HKD 17.7 million in 2017, primarily due to decreased gross profit[33]. - The company reported a loss before tax of HKD 24,634,000 for the year, compared to a loss of HKD 17,947,000 in 2017, indicating a deterioration in performance[183]. - Total assets decreased to HKD 68,488,000 from HKD 96,730,000 in 2017, reflecting a decline of 29.1%[183]. - Total liabilities decreased to HKD 21,132,000 from HKD 25,153,000 in 2017, a reduction of 16.0%[183]. - The net current assets were HKD 37,537,000, down from HKD 48,086,000 in 2017, showing a decrease of 22.5%[183]. Strategic Initiatives - The company plans to enhance its brand recognition by investing in talent, expanding the game development team, and upgrading software and hardware to meet increasing technical demands[10]. - To increase market share in the mobile gaming industry, the company intends to pursue organic growth and strategic partnerships with game developers and distributors[10]. - The company aims to integrate upstream and downstream services in the gaming industry value chain to improve its market position[14]. - The company will continue to implement key business strategies to expand its game portfolio, particularly in mobile gaming[15]. - The company plans to launch three new products in the upcoming quarter, aiming to capture a larger market share[66]. - Future guidance indicates an expected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion[66]. - The company is investing $10 million in research and development to enhance its technology capabilities[66]. - Market expansion efforts include entering two new international markets by the end of the year[66]. - The company has completed a strategic acquisition of a smaller competitor, which is expected to increase market presence and operational efficiency[66]. - The management team emphasized a focus on improving operational efficiency, targeting a 10% reduction in costs over the next year[66]. - The company has established a new partnership with a leading technology firm to enhance product offerings and innovation[66]. Corporate Governance - The board of directors is responsible for preparing the consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and has confirmed no significant uncertainties affecting the group's ability to continue as a going concern as of December 31, 2018[76]. - The company has appointed three independent non-executive directors, constituting over one-third of the board, ensuring compliance with GEM Listing Rules[77]. - The remuneration committee reviewed the compensation of directors and senior management, deeming it fair and reasonable as of December 31, 2018[87]. - The nomination committee evaluates the composition and independence of the board, considering diversity factors such as gender, age, and industry experience[90]. - All directors attended at least one training course related to good corporate governance practices during the year[85]. - The company has established three board committees: the remuneration committee, nomination committee, and audit committee, each with clear written terms of reference[86]. - The chairman and CEO roles are separated to prevent power concentration in one individual, with Mr. Shi serving as chairman and Mr. Lin as CEO during the year[82]. - The board believes that the diverse experiences of its members provide a balanced approach to the group's operational skills and expertise[80]. - The independent non-executive directors have confirmed their independence annually, aligning with the criteria set out in GEM Listing Rules[77]. - The company will provide timely and regular training for directors to ensure compliance with current GEM Listing Rules[85]. - The audit committee held 4 meetings during the year to review and comment on the company's annual performance for 2017, interim performance for 2018, and quarterly results[91]. - The board of directors held regular meetings to review the company's financial and operational performance, with a total of 5 meetings attended by executive directors[93]. - The company adopted a board diversity policy on December 28, 2018, recognizing the benefits of diverse board membership for achieving strategic goals[101]. - The company secretary has completed no less than 15 hours of relevant professional training to update skills and knowledge as of December 31, 2018[99]. - The audit committee confirmed that the consolidated financial statements for the year ended December 31, 2018, comply with applicable accounting standards and GEM listing rules[91]. - The board is responsible for maintaining proper accounting records to monitor the overall financial position of the company[96]. - The company will report on the progress of measurable targets related to board diversity in its annual corporate governance report[104]. - The nomination committee will evaluate and recommend candidates for the board, considering various standards including skills and experience[109]. - The company has established a nomination policy to ensure a balanced composition of skills, experience, knowledge, and diverse perspectives on the board[106]. - The company has committed to ensuring that all directors act in the best interests of the company and its shareholders[96]. - The nomination committee will implement a formal procedure to regularly review its policy to ensure transparency and fairness, reflecting current regulatory requirements and good corporate governance practices[110]. - The summary of the nomination policy, including the procedures and standards adopted by the nomination committee for selecting and recommending director candidates, will be disclosed in the annual corporate governance report[111]. - The board adopted a dividend policy on December 31, 2018, which considers various factors such as the group's actual and expected financial performance, shareholder equity, and future capital requirements[113]. Risk Management - The board is responsible for monitoring the group's risk management and internal control systems, which are designed to manage significant risks rather than eliminate them[119]. - The group appointed Tianzhi Hong Kong Internal Control and Risk Management Limited to independently review and assess the effectiveness of its risk management and internal control systems[120]. - The group established its enterprise risk management framework in 2016, with the board ensuring effective internal controls while management is responsible for designing and implementing the internal control system[121]. - The risk management framework follows the COSO Enterprise Risk Management - Integrated Framework, allowing the board and management to effectively manage the group's risks[124]. - The company has established a risk register to track all identified major risks, which is updated at least annually following a risk assessment[125]. Shareholder and Investor Relations - Shareholder returns are expected to increase, with a proposed dividend of $0.50 per share, reflecting a commitment to returning value to investors[66]. - The company has adopted a shareholder communication policy to ensure timely and unbiased information is available to shareholders and potential investors[127]. - The company welcomes feedback from investors, stakeholders, and the public to enhance communication and relationships[129]. - The total reserves available for distribution to shareholders as of December 31, 2018, amounted to approximately HKD 35,102,000[147]. - The company does not recommend the distribution of a final dividend for the year ended December 31, 2018[137]. Compliance and Legal Matters - The company recognizes the importance of compliance with relevant laws and regulations and has not identified any significant non-compliance issues for the year ended December 31, 2018[132]. - The company maintained compliance with GEM listing rules regarding public float as of the report date[176]. - The independent auditor's report confirmed that the financial statements fairly reflect the group's financial position as of December 31, 2018[186]. - The company has confirmed compliance with non-competition agreements by key shareholders since the listing date[174]. - There were no equity-related agreements established during the year ended December 31, 2018, aside from those disclosed in the financial statements[177]. Employee and Operational Matters - The total employee cost for the year ended December 31, 2018, was approximately HKD 22.0 million, compared to approximately HKD 21.1 million for the year ended December 31, 2017[49]. - The group employed 69 employees as of December 31, 2018, down from 82 employees as of December 31, 2017[49]. - Sales expenses decreased by approximately 9.6% to about HKD 18.9 million for the year ended December 31, 2018, mainly due to reduced advertising and promotional expenses[29]. - Administrative expenses decreased by approximately 5.5% to about HKD 17.2 million for the year ended December 31, 2018, primarily due to a reduction in legal and professional fees[30]. - Other expenses increased by approximately 94.6% to about HKD 10.9 million, mainly due to impairment losses on certain game intangible assets[31]. - The company has no outstanding stock options granted, exercised, expired, or lapsed under the stock option plan as of December 31, 2018[51]. - The company does not have an internal audit department and will continue to review the need for one at least annually[126]. - The company has implemented green initiatives and measures in its daily operations, including resource recycling and energy-saving practices[131]. Market and Customer Insights - Revenue from the top five customers accounted for less than 30% of the total annual revenue[150]. - Purchases from the top five suppliers represented approximately 60.1% of total annual purchases, with the largest supplier accounting for about 22.1%[150].