Financial Performance - For the nine months ended December 31, 2021, the group recorded revenue of approximately RMB 647,400,000, a significant increase of 439% compared to RMB 120,100,000 for the same period in 2020[9]. - The profit attributable to owners of the company for the nine months ended December 31, 2021, was approximately RMB 58,400,000, compared to RMB 7,600,000 for the same period in 2020[9]. - Basic and diluted earnings per share for the nine months ended December 31, 2021, were RMB 1.40, up from RMB 0.20 in 2020[9]. - The gross profit for the nine months ended December 31, 2021, was RMB 141,791,000, compared to RMB 42,225,000 for the same period in 2020[11]. - The total comprehensive income for the period was RMB 31,102,000, compared to a loss of RMB 19,330,000 in the same period of 2020[13]. - The total revenue for the three months ended December 31, 2021, was RMB 246,168,000, compared to RMB 120,118,000 for the same period in 2020[11]. - The company reported a pre-tax profit of RMB 67,180,000 for the nine months ended December 31, 2021, compared to RMB 16,157,000 for the same period in 2020[11]. - The company’s total comprehensive income for the nine months ended December 31, 2021, was RMB 58,374 thousand, compared to a loss of RMB 38,441 thousand for the same period in 2020[20]. - The total revenue for the nine months ended December 31, 2021, was RMB 648,264 thousand, compared to RMB 121,581 thousand in the same period of 2020, representing a growth of 433.3%[39]. Expenses and Costs - The operating expenses for the nine months ended December 31, 2021, included RMB 68,290,000 in administrative expenses, up from RMB 44,853,000 in 2020[11]. - Total expenses from continuing operations for the three months ended December 31, 2021, were RMB 30,712 thousand, compared to RMB 31,169 thousand for the same period in 2020, representing a decrease of approximately 1.46%[17]. - For the nine months ended December 31, 2021, total expenses from continuing operations were RMB 48,903 thousand, compared to RMB 48,548 thousand for the same period in 2020, indicating a slight increase of approximately 0.73%[17]. - The company reported a significant increase in share premium to RMB 944,754 thousand as of December 31, 2021, compared to RMB 944,878 thousand as of December 31, 2020, indicating stability in capital structure[20]. - The company’s bank loan interest for the nine months ended December 31, 2021, was RMB 1,056 million, an increase of 274% compared to RMB 282 million for the same period in 2020[52]. - The total interest expenses for the nine months ended December 31, 2021, amounted to RMB 11,812 million, up 267% from RMB 3,214 million in the same period of the previous year[52]. - Employee benefits expenses (excluding directors' remuneration) for the nine months ended December 31, 2021, totaled RMB 287,411 million, compared to RMB 65,851 million for the same period in 2020, reflecting a growth of 336%[54]. - The company reported a total tax expense of RMB 11,366 million for the nine months ended December 31, 2021, compared to RMB 5,446 million for the same period in 2020, reflecting an increase of 108%[60]. Business Operations - The company’s main business operations include providing value-added telecommunications and related services, which encompass backend services, comprehensive marketing services, and data center services[27]. - KingNine Group achieved revenue of approximately RMB 571,400,000 for the nine months ended December 31, 2021, representing a 58.9% increase compared to the same period in 2020, accounting for 88.3% of the group's total revenue[71]. - The number of customers increased from 125 as of March 31, 2021, to 282, indicating significant growth in customer acquisition and business expansion[71]. - Service costs for providing value-added telecommunications and related services amounted to approximately RMB 505,600,000 for the nine months ended December 31, 2021, up from RMB 77,900,000 in 2020[79]. - The company has secured new orders from major Chinese telecommunications operators and is expanding its service centers in multiple cities, including Puyang, Xiangyang, and Xi'an[88]. - In the digital marketing sector, KingNine Group is developing tools related to digital life and marketing, resulting in a steady increase in client traffic and new customer acquisitions[89]. - The company has integrated its existing internet marketing capabilities with new digital marketing technologies, contributing to growth in B2B services and live commerce[89]. Corporate Governance - The company did not recommend the payment of a dividend for the nine months ended December 31, 2021, consistent with the previous year[9]. - The board of directors did not recommend any dividend payment for the nine months ending December 31, 2021[91]. - The Audit Committee has been established in accordance with GEM listing rules, consisting of three independent non-executive directors[111]. - The Audit Committee reviewed the third-quarter financial statements and confirmed compliance with applicable accounting standards and adequate disclosures[112]. Strategic Focus - KingNine Group plans to continue focusing on innovation in artificial intelligence and big data applications, having obtained 20 new software copyrights and 2 invention patents in the customer service technology field during the quarter[75]. - The group is expanding its operational capacity with the establishment of a new self-operated contact service center in Jinzhou and the expansion of five additional centers, increasing the total number of workstations to 11,749, up from 6,093 as of March 31, 2021[75]. - KingNine Group is actively exploring new business opportunities in the financial industry and internet live commerce sectors to enhance stable revenue and profitability[88]. - The company holds an indirect interest of 80% in Datang Wealth International Limited, which primarily provides private banking services, including asset allocation and investment advisory services[108]. - The company has an indirect interest of 45.1% in Hengtian International Capital Management Limited, focusing on asset management and fund distribution services[108]. - As of December 31, 2021, there are no direct or indirect interests held by directors or major shareholders in any competing businesses[108].

Financial Performance - The company recorded revenue of approximately RMB 401,900,000 for the first half of 2021, a significant increase from RMB 1,000,000 in the same period of 2020, primarily due to new business in value-added telecommunications services in China[9]. - The profit attributable to owners of the company for the first half of 2021 was approximately RMB 20,200,000, compared to a loss of RMB 11,600,000 in the same period of 2020[9]. - Basic and diluted earnings per share for the first half of 2021 were approximately RMB 0.48, compared to a loss of RMB 0.33 per share in the same period of 2020[9]. - Gross profit for the first half of 2021 was RMB 88,371,000, compared to RMB 45,782,000 in the same period of 2020[11]. - The company reported a pre-tax profit of RMB 25,739,000 for the first half of 2021, compared to a pre-tax loss of RMB 11,588,000 in the same period of 2020[11]. - Total comprehensive income for the first half of 2021 was RMB 13,901,000, compared to a total comprehensive loss of RMB 35,530,000 in the same period of 2020[14]. - The company reported a net profit of RMB 20,197 thousand for the period, compared to a loss of RMB 3,478 thousand in the previous period[26]. - The company reported a profit attributable to owners of RMB 10,456,000 for the three months ended September 30, 2021, compared to a loss of RMB 1,043,000 in the same period of 2020, marking a significant turnaround[76]. - For the six months ended September 30, 2021, the profit attributable to owners was RMB 20,197,000, compared to a loss of RMB 11,588,000 in the prior year, indicating a strong recovery[76]. Assets and Liabilities - As of September 30, 2021, total assets were approximately RMB 1,439,000,000, up from RMB 1,415,400,000 as of March 31, 2021[9]. - The net asset value as of September 30, 2021, was approximately RMB 1,024,700,000, compared to RMB 1,015,600,000 as of March 31, 2021[9]. - Total non-current assets increased to RMB 874,290 thousand from RMB 845,446 thousand, representing a growth of 3.9%[17]. - Current assets decreased to RMB 564,664 thousand from RMB 569,995 thousand, a decline of 0.6%[18]. - Total liabilities increased to RMB 249,359 thousand from RMB 168,385 thousand, marking a significant rise of 48.0%[19]. - Total assets less current liabilities stood at RMB 1,189,595 thousand, down from RMB 1,247,056 thousand, a decrease of 4.6%[23]. - The company’s total equity attributable to owners increased to RMB 1,017,283 thousand from RMB 999,904 thousand, reflecting a growth of 1.7%[23]. Cash Flow and Expenses - Cash and cash equivalents decreased to RMB 91,081 thousand from RMB 202,710 thousand, a drop of 55.2%[30]. - The company incurred cash outflows from operating activities amounting to RMB 39,274 thousand, compared to inflows of RMB 174,858 thousand in the previous period[32]. - The company incurred research and development expenses of RMB 13,113,000 for the first half of 2021, compared to RMB 7,098,000 in the same period of 2020[11]. - The company incurred marketing expenses of RMB (5,187) thousand and R&D expenses of RMB (13,113) thousand[60]. - Administrative expenses totaled RMB (45,319) thousand, with significant contributions from various segments[60]. - Financial costs for the six months were RMB (7,482) thousand, primarily from interest on borrowings[66]. Revenue Breakdown - Total revenue for the six months ended September 30, 2021, was RMB 401,877 thousand, compared to RMB 1,015 thousand for the same period in 2020, indicating a significant increase[47]. - Revenue from value-added telecommunications and related services for the six months ended September 30, 2021, was RMB 401,193 thousand, while financial services generated RMB 683 thousand[54]. - The company’s revenue from customer service solutions for the six months ended September 30, 2021, was RMB 306,465 thousand, compared to no revenue in the same period of 2020[47]. - Revenue from the Chinese market for the six months ended September 30, 2021, was RMB 401,193 thousand, while revenue from the United States was RMB 601 thousand[54]. Strategic Initiatives and Future Outlook - The company continues to focus on expanding its value-added services and enhancing its financial service offerings to drive future growth[54]. - The company plans to continue expanding its market presence and investing in new technologies and products[60]. - Future guidance indicates a focus on improving operational efficiency and enhancing service offerings to drive growth[60]. - KingNine Group plans to pursue continuous acquisitions around its upstream and downstream business, focusing on ToB service companies with synergy and good development prospects[159]. - The company will closely monitor macro policies affecting its clients and maintain close communication to explore new business opportunities in the financial and internet live e-commerce sectors[158]. - KingNine Group aims to expand its domestic business layout to bring more stable income and profitability, thereby enhancing shareholder value[158]. Corporate Governance and Compliance - The board of directors did not recommend the payment of an interim dividend for the first half of 2021, consistent with no dividend in the same period of 2020[9]. - The company has confirmed compliance with the GEM Listing Rules regarding directors' securities trading conduct throughout the 2020 interim period[175]. - The audit committee has reviewed the interim financial statements, affirming their compliance with applicable accounting standards and adequate disclosure[177]. - The company has adhered to the principles and all code provisions of the Corporate Governance Code as per GEM Listing Rules during the 2021 interim period[176]. - The proposed name change will not affect any rights of shareholders, and existing shares will remain valid for trading and settlement purposes[184]. Acquisitions and Investments - The group completed the acquisition of 51% stakes in Qingdao Jinliang Technology Co., Ltd. and Jiuzhi Technology (Hangzhou) Co., Ltd. for a cash consideration of RMB 1,020,000 each, aimed at expanding value-added telecommunications and related services[106]. - The total consideration paid for the acquisitions was RMB 2,040,000, which included cash and cash equivalents[122]. - The group announced the sale of its wholly-owned subsidiary Corporate Wise Limited for approximately HKD 17,240,000, with the transaction completed on October 22, 2021[129]. - The group completed the acquisition of a 20% stake in Guangzhou Kunyuan Cultural Media Service Co., Ltd. for RMB 6,000,000, enhancing service offerings and customer retention[138]. Market and Economic Context - In the first three quarters of 2021, China's GDP reached 82,313.1 billion yuan, with a year-on-year growth of 9.8% and a two-year average growth of 5.2%[158]. - The value added of the information transmission, software, and information technology service industry increased by 19.3% year-on-year in the first three quarters, with a two-year average growth of 17.6%[158].

Financial Performance - The company recorded revenue of approximately RMB 184.6 million in Q1 2021, a significant increase from RMB 0.5 million in Q1 2020, primarily due to new business income from value-added telecommunications services in China[9] - The profit attributable to the owners of the company for Q1 2021 was approximately RMB 9.7 million, compared to a loss of RMB 10.5 million in the same period of 2020[9] - Basic and diluted earnings per share for Q1 2021 were approximately RMB 0.23, compared to a loss of RMB 0.30 per share in Q1 2020[20] - Gross profit for the quarter was RMB 42.6 million, up from RMB 0.5 million in the previous year[15] - The total comprehensive income for the period was RMB 4.8 million, compared to a comprehensive loss of RMB 10.8 million in Q1 2020[18] - The company reported a pre-tax profit of RMB 13.3 million for Q1 2021, compared to a pre-tax loss of RMB 10.5 million in Q1 2020[15] - Total revenue for the three months ended June 30, 2021, was RMB 184,556 thousand, compared to RMB 501 thousand for the same period in 2020, representing a significant increase[35] - The pre-tax profit for the period was RMB 9,741 thousand, compared to a loss of RMB 10,545 thousand in the previous year[62] Revenue Sources - The company’s total income from value-added telecommunications and related services was RMB 184.2 million in Q1 2021[12] - Revenue from value-added telecommunications and related services was RMB 184,178 thousand, with contributions from backend services, comprehensive marketing services, and data center services[35] - Financial services revenue included RMB 83 thousand from corporate advisory services and RMB 295 thousand from loan interest income, showing a decline from the previous year's figures[35] - Gross profit for the value-added telecommunications and related services segment was RMB 42,211 thousand, indicating a healthy margin[44] - The company has shifted its reporting currency from Hong Kong dollars to Renminbi, impacting the presentation of financial results[27] Expenses - The company incurred administrative expenses of RMB 22.1 million in Q1 2021, compared to RMB 14.4 million in the same period of 2020[15] - The group incurred marketing and R&D expenses totaling approximately RMB 8,700,000 in the first fiscal quarter of 2021, compared to none in 2020[84] - Service costs for value-added telecommunications and related services amounted to approximately RMB 142,000,000 in the first fiscal quarter of 2021, with major components including employee costs and subcontracting fees[85] - The company’s financial costs increased to RMB 3.3 million in Q1 2021 from RMB 0.034 million in Q1 2020[15] Shareholder Information - Zhongzhi Xinzhuo Capital Company Limited holds 57.53% of the company's shares, totaling 2,409,823,718 shares[106] - Tian Xi Capital Company Limited and its affiliates control 68.41% of the company, with a total of 2,865,644,243 shares[106] - NINEGO Corporation, controlled by Mr. Hu, holds 6.55% of the company's shares, amounting to 274,190,219 shares[108] - The company’s major shareholders include Zhongzhi Xinzhuo and Kangbang (Hong Kong), both of which are wholly owned subsidiaries of Tian Xi Capital[107] Corporate Governance - The audit committee has reviewed the first quarter financial statements and confirmed compliance with applicable accounting standards[118] - The company has established an audit committee in accordance with GEM listing rules, consisting of three independent non-executive directors[117] - The company reported no competitive business interests among its directors as of June 30, 2021[113] - The company’s chairman is Mr. Niu Zhanbin, with executive directors including Mr. Jiang Yulin and Mr. Wu Hui[119] Business Strategy and Growth - The company is focused on expanding its presence in internet education, financial securities, e-commerce, community group buying, and internet manufacturing sectors[72] - The group plans to expand its business layout domestically, aiming for more stable income and profitability[96] - KingNine Group has started constructing three self-operated contact service centers in Shenyang, Liu'an, and Puyang to support new orders[98] - The group is actively exploring new business opportunities in the financial industry and internet live commerce sectors[98] - The group has signed contracts with financial influencers to enhance its service capabilities in selling financial products, thereby increasing revenue scale[100] Customer Metrics - The number of customers increased from 125 as of March 31, 2021, to 134, indicating growth in client acquisition[72] - The company maintained stable performance among its top ten customers during the quarter[72] Dividend Policy - The company did not recommend the payment of a dividend for Q1 2021, consistent with no dividends declared in Q1 2020[9] - The company did not recommend any dividends for Q1 2021, consistent with the previous year[64]

Acquisition and Corporate Structure - Zhongjin Technology Services Group Company Limited acquired KingNine Holdings Limited on October 15, 2020, which constituted a very substantial acquisition and connected transaction under GEM Listing Rules[14] - The total consideration for the acquisition of KingNine Holdings Limited is RMB850 million, with RMB180 million settled by share issuance, RMB250 million as a closing fund, and RMB420 million in cash[27] - As of March 31, 2021, the company issued 638,022,754 shares as consideration shares and paid RMB140 million as the first tranche of cash consideration[27] - The remaining cash consideration of RMB280 million will be paid in four installments of RMB70 million each, due on July 31 of 2021, 2022, 2023, and 2024[27] - The completion of the acquisition occurred on October 15, 2020, and KingNine has since been consolidated into the company's financial statements[33] - The company had no other material acquisitions or disposals of subsidiaries during the year[34] - KingNine completed the acquisition of Dalian Kingwisoft Technology Group on October 15, 2020, making it a wholly-owned subsidiary[36] - The Group's subsidiary ZZCI Corporate Finance Limited is licensed for type 1, type 4, type 6, and type 9 regulated activities, providing a diversified range of corporate advisory and asset management services[14] - The Group's subsidiary, Asian Capital (Qianhai) Investment Management Limited, was established in 2016 and approved as a Qualified Foreign Limited Partnership by Shenzhen Municipal Government Financial Services Office[14] - ZZCI Credit Limited, a wholly-owned subsidiary, holds a money lenders license, allowing the Group to provide financing against marketable securities[14] Financial Performance - KingNine Group reported revenue of approximately RMB506.1 million for the year, representing a year-on-year increase of 17.8%[75] - Revenue from back-office services amounted to approximately RMB255.6 million, accounting for 96.0% of the total revenue of the Group[75] - The net profit for the year was approximately RMB95.0 million, an increase of 45.6% compared to the previous financial year[77] - The accumulated actual audited consolidated net profit attributable to equity holders of KingNine for the guarantee period from April 1, 2020, to March 31, 2021, was approximately RMB93.6 million, exceeding the guaranteed profit of RMB90 million[61] - The guaranteed profit for the guarantee period from April 1, 2019, to March 31, 2020, was RMB60 million, with the actual profit being approximately RMB65.3 million[61] - KingNine Group achieved revenue of approximately RMB 506.1 million, a year-on-year increase of 17.8%, with back-office service revenue accounting for 96.0% of total revenue[78] - The net profit for the year was approximately RMB 95 million, representing a 45.6% increase compared to the previous fiscal year[79] - The Group recorded a significant revenue increase of 1,663%, reaching approximately RMB 266.2 million, primarily due to the acquisition of KingNine Group[90] Profit Guarantees and Compensation - The profit guarantee for KingNine's equity holders includes a minimum audited consolidated net profit of RMB 60 million for the fiscal year ending March 31, 2020, increasing to RMB 180 million for the fiscal year ending March 31, 2024[47] - If the actual net profit for any guarantee period is less than the guaranteed profit, the guarantors are expected to compensate the company for the shortfall in cash[51] - The total guaranteed profit over the specified periods amounts to RMB 600 million, with the compensation formula based on the shortfall calculation[50] Operational Highlights - The Group aims to enhance its financial services capabilities through various subsidiaries and strategic acquisitions[14] - The Group's services are primarily targeted at the People's Republic of China market[14] - The customer base increased from 90 as of March 31, 2020, to 125, with the top five customers contributing 69.8% of the Group's revenue[76] - The KingNine Group has maintained stable relationships with leading companies across various industries, including finance and e-commerce[76] - The company took effective measures during the COVID-19 pandemic to ensure smooth operations and compliance with government regulations[77] - The number of self-operated contact service centers increased from 12 to 13, and workstations rose to 6,693, an increase of 352 compared to March 31, 2020[87] - KingNine Group obtained one patent and 21 new software copyrights, bringing the total to 134 software copyrights granted[84] Financial Position and Ratios - Non-current assets increased to approximately RMB845.4 million from RMB24.3 million in 2020, mainly due to goodwill and intangible assets recognized from the Acquisition[109] - Net current assets decreased to approximately RMB401.6 million from RMB627.1 million in 2020, largely due to cash payments related to the Acquisition[110] - Non-current liabilities rose to approximately RMB231.4 million from RMB2.7 million in 2020, including payable cash consideration due in installments[111] - Total equity attributable to owners of the Company increased to approximately RMB999.9 million from RMB648.6 million in 2020, primarily due to the issuance of new shares for the Acquisition[120] - The Group's current ratio was 3.4 and gearing ratio was 2.9% as of March 31, 2021, indicating improved liquidity compared to 37.2 and Nil in 2020[117] Management and Governance - The company has independent non-executive directors with diverse backgrounds in finance, technology, and management, enhancing its governance structure[180] - The company is listed on the Hong Kong Stock Exchange, indicating its compliance with international financial standards[167] - The board includes members with significant experience in investment banking and corporate finance, which may benefit the company's strategic initiatives[186] - The company has a strong focus on risk management, as evidenced by the roles of its independent directors in various committees[180] - The company aims to leverage its directors' extensive networks and expertise to explore new market opportunities[188] - The company is committed to enhancing its operational efficiency through experienced leadership in financial management and technology[188] Future Plans and Market Strategy - The Group plans to explore acquisitions or investments in synergistic assets to expand service categories and enhance research and development capabilities[130] - The KingNine Group is focusing on premium corporate clients in the Internet and finance sectors to diversify services and strengthen customer loyalty, aiming to increase market share[130] - The Group is preparing for live streaming e-commerce and training, leveraging its Internet marketing capabilities to drive growth in B2B corporate services[142] - KingNine Group's investment in Jinliang Technology aims to diversify revenue streams through comprehensive media services for financial industry clients, including new media operations and information flow advertising[146] - The Group plans to focus on more optimistic business prospects and considers optimizing its asset structure by disposing of non-core businesses[150]

Financial Performance - For the nine months ended December 31, 2020, the group recorded revenue of approximately RMB 121,600,000, a significant increase of 972% compared to RMB 11,300,000 for the same period in 2019, primarily due to revenue generated from the KingNine Group in Q3 2020[7] - The profit attributable to owners of the company for the nine months ended December 31, 2020, was approximately RMB 7,600,000, compared to a loss of RMB 23,900,000 for the same period in 2019[7] - Basic earnings per share for Q3 2020 was RMB 0.47, compared to a loss per share of RMB 0.19 in Q3 2019, and for the nine months, it was RMB 0.20 compared to a loss of RMB 0.67 in the same period of 2019[7] - Gross profit for the nine months ended December 31, 2020, was RMB 43,688,000, compared to RMB 11,341,000 for the same period in 2019[9] - The company reported a pre-tax profit of RMB 13,565,000 for the nine months ended December 31, 2020, compared to a pre-tax loss of RMB 23,856,000 for the same period in 2019[9] - The company reported a net profit of RMB 19,707,000 for Q3 2020, compared to a loss of RMB 6,872,000 in Q3 2019[9] - The company reported a loss of RMB 23,857,000 for the period, highlighting challenges in profitability despite revenue generation[13] - The total comprehensive expenses for the period were RMB 30,322,000, indicating a significant outflow compared to income[13] Dividends and Shareholder Information - The board of directors did not recommend the payment of a dividend for the nine months ended December 31, 2020, consistent with the previous year[7] - The company did not recommend the payment of dividends for the nine months ended December 31, 2020, consistent with 2019[49] - As of December 31, 2020, Zhong Zhi Xin Zhuo Capital Company Limited holds 2,409,823,718 shares, representing 57.53% of the company's equity[85] - Tian Xi Capital Company Limited and its controlled entities collectively own 2,865,644,243 shares, accounting for 68.41% of the company's equity[85] - NINEGO Corporation, controlled by Mr. Hu and Ms. Liu, holds 274,190,219 shares, which is 6.55% of the company's equity[85] - The major shareholder, Mr. Xie, indirectly holds approximately 68.41% of the company's issued share capital through Zhong Zhi Xin Zhuo and Kang Bang (Hong Kong)[91] - No other individuals, apart from those disclosed, were known to hold 5% or more of the company's shares as of December 31, 2020[88] Expenses and Costs - The company incurred administrative expenses of RMB 48,908,000 for the nine months ended December 31, 2020, compared to RMB 33,021,000 for the same period in 2019[9] - The group incurred service costs of approximately RMB 77.9 million for the nine months ending December 31, 2020, primarily due to employee costs and other operational expenses[74] - The company incurred finance costs of RMB 3,151 thousand for the three months ended December 31, 2020, compared to RMB 43 thousand for the same period in 2019[37] - Employee benefit expenses, including directors' remuneration, totaled RMB 59,481 thousand for the three months ended December 31, 2020, compared to RMB 5,016 thousand for the same period in 2019[41] Acquisitions and Corporate Changes - The acquisition of KingNine Holdings Limited was completed on October 15, 2020, expanding the company's service offerings in China[16] - The acquisition of KingNine Holdings Limited was completed on October 15, 2020, with a total consideration of RMB 1,012,224 thousand[51] - Cash and cash equivalents paid for the acquisition amounted to RMB 390,000 thousand, resulting in a net cash outflow of RMB 344,229 thousand[58] - The identifiable net assets acquired from the acquisition were valued at RMB 426,347 thousand, with goodwill recognized at RMB 599,681 thousand[54][56] - The company issued 638,022,754 shares as part of the acquisition consideration, with a fair value of RMB 366,075 thousand[51] - The acquisition included a deferred payment of RMB 256,149 thousand, to be settled in future installments[51] Currency and Operational Changes - The company transitioned its functional currency from HKD to RMB effective October 1, 2020, reflecting a significant change in its operational environment[20] - The company changed its functional currency from Hong Kong dollars to Renminbi effective October 1, 2020, to better reflect its economic environment[68] Market and Revenue Insights - Revenue analysis by service indicates a focus on backend services, comprehensive marketing services, and data center services, although specific revenue figures were not detailed[24] - The company’s revenue from China was RMB 120,118 thousand, while revenue from other regions was RMB 448 thousand for the three months ended December 31, 2020[30] - KingNine Group is a leading outsourcing customer service provider primarily operating in China, focusing on backend services and data center services[64] - KingNine Group reported revenue of approximately RMB 141 million for Q3 2020, a 16% increase year-over-year, with backend services accounting for 96% of total revenue[70] - The number of clients increased from 90 as of March 31, 2020, to 118 by the end of Q3 2020, indicating a stable and expanding customer base[70] - The group anticipates growth opportunities in the internet sector as economic recovery continues, particularly in financial securities and internet industries[78] Compliance and Governance - The audit committee has reviewed the third-quarter financial statements and confirmed compliance with applicable accounting standards[94] - The company has established an audit committee in accordance with GEM listing rules, consisting of three independent non-executive directors[94] - The company has no directors with interests in any business that may compete directly or indirectly with its operations as of December 31, 2020[91] Other Information - The company has not provided independent financial data for its segments, focusing instead on overall performance metrics[24] - The company has not disclosed any new product developments or market expansion strategies in the provided documents[87] - The company plans to continue expanding its market presence and investing in new technologies and products to drive future growth[30]

Company and Report Overview [Financial and Business Summary](index=3&type=section&id=%E6%91%98%E8%A6%81) The company's mid-2020 loss narrowed due to investment and exchange gains, despite a sharp drop in advisory revenue and rising operating expenses from an acquisition 2020 Interim Key Financial Data Overview | Metric | Mid-2020 | Mid-2019 | | :--- | :--- | :--- | | Corporate Advisory Revenue | Approx. HK$0.3 million | HK$7.95 million | | Interest Income from Lending | HK$0.82 million | HK$0.75 million | | Net Investment Income | HK$2.84 million | (HK$1.33 million) | | Net Exchange Gain (Loss) | HK$8.12 million | (HK$11.79 million) | | Operating Expenses | HK$32.10 million | HK$21.59 million | | Loss for the Period | (HK$12.84 million) | (HK$19.09 million) | | Basic Loss Per Share | 0.36 HK cents | 0.54 HK cents | | Total Assets (at period end) | Approx. HK$713 million | - | | Net Assets (at period end) | Approx. HK$698 million | - | - Operating expenses increased by approximately **48.7%** year-over-year, primarily due to professional fees and staff costs arising from an acquisition project[7](index=7&type=chunk) - The Board of Directors does not recommend the payment of an interim dividend for mid-2020[7](index=7&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Revenue fell sharply due to lower advisory fees, but the period's loss narrowed significantly thanks to positive investment returns and foreign exchange gains Core Data from the Statement of Profit or Loss for the Six Months Ended September 30 | Item (HK$'000) | 2020 | 2019 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 1,124 | 8,693 | -87.1% | | Of which: Corporate Advisory Revenue | 300 | 7,945 | -96.2% | | Net Investment Income (Loss) | 2,835 | (1,325) | From loss to profit | | Other Income and Net Losses | 8,590 | (11,905) | From loss to profit | | Operating Expenses | (32,096) | (21,594) | +48.6% | | Loss Before Tax | (12,835) | (19,092) | Loss narrowed 32.8% | | Loss for the Period | (12,835) | (19,093) | Loss narrowed 32.8% | | Basic Loss Per Share (HK cents) | (0.36) | (0.54) | Loss narrowed | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) Total assets and net assets slightly decreased, with a significant shift in current assets from receivables to cash following a major collection Core Data from the Statement of Financial Position (as of September 30, 2020) | Item (HK$'000) | 30 Sep 2020 | 31 Mar 2020 | | :--- | :--- | :--- | | **Total Assets** | **713,008** | **731,851** | | Non-current Assets | 25,217 | 26,559 | | Current Assets | 687,791 | 705,292 | | **Total Liabilities** | **15,289** | **21,957** | | Current Liabilities | 14,251 | 18,950 | | Non-current Liabilities | 1,038 | 3,007 | | **Net Assets** | **697,719** | **709,894** | | **Total Equity** | **697,719** | **709,894** | - Bank balances and cash increased from HK$474 million to **HK$673 million**, while other assets and receivables decreased from HK$222 million to HK$8.29 million, mainly due to the collection of approximately **HK$217 million** in consideration for the transfer of convertible loans receivable[16](index=16&type=chunk)[86](index=86&type=chunk)[120](index=120&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=6&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 decreased from HK$710 million to HK$698 million, primarily driven by the period's loss, which was partially offset by translation reserve gains Summary of Changes in Equity (for the six months ended September 30, 2020) | Item (HK$'000) | Amount | | :--- | :--- | | As at 1 April 2020 | 709,894 | | Loss for the period | (12,835) | | Other comprehensive income for the period | 660 | | **As at 30 September 2020** | **697,719** | [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) Cash and cash equivalents increased by HK$198 million, driven by a strong net cash inflow from operations due to the collection of significant receivables Summary of Cash Flows (for the six months ended September 30) | Item (HK$'000) | 2020 | 2019 | | :--- | :--- | :--- | | Net cash from (used in) operating activities | 193,681 | (4,618) | | Net cash from investing activities | 6,770 | 9,650 | | Cash used in financing activities | (2,024) | – | | **Net increase in cash and cash equivalents** | **198,427** | **5,032** | Notes to the Unaudited Condensed Consolidated Financial Statements [Corporate Information and Principal Activities](index=8&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) The company is a Cayman-incorporated investment holding firm listed on GEM, with subsidiaries in advisory, asset management, investment, and lending - The Company is an investment holding company, and its subsidiaries are principally engaged in corporate advisory services, investment advisory and asset management services, proprietary investment and lending[36](index=36&type=chunk) [Revenue and Segment Information](index=11&type=section&id=4.%20%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The company operates as a single segment where corporate advisory revenue fell 96.2% while loan interest income grew 10.2% in mid-2020 Analysis of Revenue from Major Services (for the six months ended September 30) | Revenue Type (HK$'000) | 2020 | 2019 | | :--- | :--- | :--- | | Corporate advisory income | 300 | 7,945 | | Loan interest income | 824 | 748 | | **Total** | **1,124** | **8,693** | [Capital Commitments and Events After the Reporting Period](index=21&type=section&id=21.%20%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94%E5%8F%8A%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) Post-period, the company acquired KingNine Holdings for RMB 850 million to enter the internet services and data solutions market in mainland China - On October 15, 2020, the Company completed the acquisition of KingNine Holdings Limited, which became a wholly-owned subsidiary of the Company[110](index=110&type=chunk) - The total consideration for the acquisition was **RMB 850 million**, paid through the allotment and issuance of new Company shares (approximately RMB 180 million), cash payment (RMB 420 million), and settlement funds (RMB 250 million)[110](index=110&type=chunk) Management Discussion and Analysis [Business Review](index=22&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The COVID-19 pandemic negatively impacted business opportunities, but the company's strategic acquisition of KingNine Holdings aims to expand future revenue streams - The COVID-19 pandemic led some potential clients to postpone or suspend their financing plans, negatively impacting the Group's business[114](index=114&type=chunk) - The Company completed the acquisition of KingNine Holdings Limited on October 15, 2020, aiming to expand its business, increase revenue sources, and enhance shareholder value[115](index=115&type=chunk)[116](index=116&type=chunk) [Financial Review](index=23&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) The mid-2020 loss narrowed due to investment and exchange gains, while operating expenses rose from acquisition costs, and the company maintained a strong, debt-free financial position - The narrowed loss was mainly due to fair value changes in financial assets at FVTPL and exchange gains from the revaluation of RMB bank balances[118](index=118&type=chunk)[119](index=119&type=chunk) - Operating expenses increased year-over-year, primarily comprising staff costs of **HK$13.32 million** and professional fees of **HK$13.07 million**, with the increase mainly driven by the acquisition project[119](index=119&type=chunk) - The Company maintains prudent financial management, holding bank balances and cash of **HK$673 million** as of September 30, 2020, with **no borrowings** and a zero gearing ratio[123](index=123&type=chunk) [Outlook](index=26&type=section&id=%E5%B1%95%E6%9C%9B) Management plans a diversification strategy, leveraging China's economic strength and a new acquisition to generate stable income amid a pessimistic Hong Kong outlook - Management expects China to be the only major economy to achieve positive growth in 2020 and is not optimistic about a short-term rebound for the Hong Kong economy[133](index=133&type=chunk) - The Group will pursue a diversification strategy, leveraging the newly acquired target company to bring more stable income and development opportunities while continuing to grow its existing businesses[134](index=134&type=chunk) Other Information [Substantial Shareholders' Interests](index=28&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of September 30, 2020, Mr. Xie Zhikun was the controlling shareholder with a 73.66% stake, which was diluted to 68.41% post-acquisition - As at 30 September 2020, Mr. Xie Zhikun was deemed to be interested in 2,615,372,627 shares of the Company, representing **73.66%** of the issued share capital[143](index=143&type=chunk) - On 15 October 2020, after the allotment of new shares for the acquisition, the controlling shareholder's aggregate shareholding increased to 2,865,644,243 shares, representing approximately **68.41%** of the enlarged share capital[142](index=142&type=chunk) [Competing Business](index=29&type=section&id=%E7%AB%B6%E7%88%AD%E6%A5%AD%E5%8B%99) The controlling shareholder, Mr. Xie, has interests in other financial entities, including Zhongzhi Capital Management, whose operations potentially compete with the Group's business - The controlling shareholder, Mr. Xie, indirectly wholly owns Zhongzhi Capital Management Co., Ltd., whose business presents potential competition to the Group's business[146](index=146&type=chunk)

Financial Performance - In the first fiscal quarter of 2020, the company reported corporate advisory income of approximately HKD 150,000, a decrease of 94.3% from HKD 2,640,000 in 2019[8]. - Interest income from lending activities was HKD 410,000, an increase of 10.8% compared to HKD 370,000 in 2019[8]. - The net investment income from fair value changes of financial assets was approximately HKD 830,000, a significant recovery from an investment loss of HKD 1,270,000 in 2019[8]. - Total operating expenses increased to approximately HKD 16,040,000, up 73.5% from HKD 9,240,000 in 2019, primarily due to project costs and increased employee expenses[8]. - The company reported a loss of approximately HKD 11,680,000 for the first fiscal quarter, compared to a loss of HKD 11,270,000 in 2019[8]. - Basic loss per share for the first fiscal quarter was HKD 0.33, slightly higher than HKD 0.32 in 2019[8]. - The total comprehensive loss for the period attributable to owners of the company was HKD 11,680,000, compared to HKD 11,271,000 in 2019[8]. - The company reported a total revenue of 150,000 HKD from corporate advisory services and 405,000 HKD from loan interest income for the three months ended June 30, 2020, compared to 2,638,000 HKD and 366,000 HKD respectively for the same period in 2019[39][40]. - The net loss attributable to the company's owners for the three months ended June 30, 2020, was 11,680,000 HKD, slightly higher than the 11,271,000 HKD loss reported in the same period of 2019[57]. - The company reported a total interest income of 2,972,000 HKD for the three months ended June 30, 2020, down from 3,520,000 HKD in the same period of 2019[48]. Dividends and Shareholder Information - The company did not recommend the payment of dividends for the first fiscal quarter of 2020, consistent with 2019[8]. - Major shareholders include Zhong Zhi Xin Zhuo Capital Company Limited, holding approximately 60.82% of the company's shares[74]. Foreign Exchange and Tax - The company experienced a foreign exchange loss of approximately HKD 160,000, a significant improvement from a loss of HKD 7,290,000 in 2019[8]. - The company incurred a tax loss of approximately 550,012,000 HKD as of June 30, 2020, which can be carried forward indefinitely[53]. Business Strategy and Acquisitions - The company is actively pursuing a potential acquisition of a public company in China that provides internet backend services and smart data solutions, which is expected to diversify its business and revenue sources[61]. - The company aims to diversify its business strategy, focusing on corporate consultancy and financing, which is expected to provide stable income[66]. - Potential acquisitions are being pursued to diversify the company's revenue sources and enhance shareholder value[66]. Audit and Compliance - The audit committee has been established in accordance with GEM listing rules and consists of three independent non-executive directors[80]. - The audit committee reviewed the Q1 financial statements and confirmed compliance with applicable accounting standards and adequate disclosures[81]. Impact of COVID-19 - The company’s financial performance was impacted by the COVID-19 pandemic, leading to delays or cancellations of financing plans by some potential clients[61].

Company Overview - ZZ Capital International Limited is an investment and corporate advisory services firm established in 2010 and listed on GEM of The Stock Exchange of Hong Kong Limited[16]. - The Group's principal operating subsidiary, ZZCI Corporate Finance Limited, is licensed for various regulated activities including dealing in securities and advising on corporate finance[16]. - A subsidiary, Asian Capital (Qianhai) Investment Management Limited, was established in 2016 and approved as a Qualified Foreign Limited Partnership by Shenzhen Municipal Government[17]. - The Group's wholly-owned subsidiary, ZZCI Credit Limited, holds a money lenders license, enhancing its financial services capabilities[18]. - The principal activity of the Company is investment holding, with subsidiaries engaged in corporate advisory services, investment advisory, and asset management services[149]. Financial Performance - The Group's revenue increased to approximately HK$16.97 million for the Year, up from HK$3.94 million in 2019[48]. - Net investment income for the Year was approximately HK$54.28 million, a significant recovery from a net investment loss of HK$84.99 million in 2019[51]. - The Group gained 3 new institutional customers in the investment advisory business, with income rising from HK$1.63 million to HK$15.02 million[39]. - Interest income from structured deposits was approximately HK$8.83 million, compared to nil in 2019[51]. - The Group's financial advisory service income amounted to HK$0.37 million, with 2 new institutional customers acquired during the Year[40]. - The Group's interest income from bank deposits decreased to approximately HK$5.32 million, down from HK$9.01 million in 2019[51]. - The Group's corporate advisory fee income increased to approximately HK$15.39 million, up from HK$1.63 million in 2019[48]. - The Group reported a profit of approximately HK$1.59 million for the year, a turnaround from a loss of approximately HK$284.71 million in the previous financial year[56]. - Basic and diluted earnings per share for the year were both approximately HK$0.04, compared to losses per share of HK$8.02 in 2019[56]. - Operating expenses decreased to approximately HK$64.39 million from HK$186.90 million in 2019, mainly due to reductions in staff costs, rental expenses, and professional fees[55]. Assets and Liabilities - As of March 31, 2020, the Group's net current assets were approximately HK$686.34 million, with a current ratio of approximately 37.22[64]. - Total liabilities increased to approximately HK$21.96 million from HK$9.70 million in 2019, primarily due to the recognition of lease liabilities under HKFRS 16[59]. - The Group's net asset value increased to approximately HK$709.89 million as of March 31, 2020, compared to HK$705.18 million in 2019, with a net asset value per share of approximately HK$19.99[60]. - The Group maintained a nil gearing ratio as of March 31, 2020, indicating no borrowings, consistent with the previous year[65]. - As of March 31, 2020, the Group had no material contingent liabilities, consistent with the previous year[84]. Management and Governance - The Board of Directors collectively accepts full responsibility for the report's contents, ensuring compliance with the listing rules[9]. - The Group's leadership team includes directors with diverse backgrounds in finance, law, and management, contributing to a well-rounded governance structure[121]. - The Group's compliance and governance are overseen by experienced professionals, ensuring adherence to regulatory standards and best practices[122]. - The independent non-executive Directors play a crucial role in providing oversight and strategic guidance, enhancing the Group's accountability and transparency[128]. - The remuneration package for Mr. Niu Zhanbin increased from HK$1,800,000 to approximately HK$3,140,000 per annum effective from November 22, 2019[146]. - Mr. Niu Zhanbin ceased to act as Chief Executive Officer of the Company effective from March 26, 2020[146]. Strategic Initiatives - The Group aims to provide a diversified range of corporate advisory and asset management services[16]. - The Group is actively negotiating a potential acquisition of a public company in China, which aims to diversify its business and revenue sources[34]. - The Group plans to acquire a Target Company that provides internet back-office services, which may present new development opportunities despite the pandemic[104]. - The Group intends to improve operating conditions and efficiency through the acquisition of quality assets[108]. - The Group has implemented a new business strategy following an internal restructuring, leading to improved business results[159]. Operational Challenges - The COVID-19 pandemic has introduced uncertainties affecting the Group's business expansion and strategy[160]. - The Group is facing challenges related to talent retention and may not cover long-term capital expenditures and technology upgrades with future revenue[159]. - The Group has implemented a business continuity plan (BCP) to address operational challenges posed by the COVID-19 pandemic[152]. - The Group is actively managing risks and uncertainties related to operational sustainability[151]. Stakeholder Relations - The Group has maintained productive relationships with stakeholders, enhancing transparency and communication through its professional board and financial reports[180][185]. - The controlling shareholder has been supportive in growing the business while being mindful of all shareholders' interests[180]. Compliance and Environmental Policies - The Group has established adequate policies to ensure compliance with applicable laws and regulations, including a whistleblowing policy[174]. - The Group's environmental policies include green office practices and resource conservation initiatives[167].

Financial Performance - For the third quarter of 2019, ZZ Capital International Limited reported corporate advisory income of HKD 3,640,000, a significant increase from HKD 480,000 in 2018[8] - Interest income from loan operations for the third quarter of 2019 was HKD 420,000, up from HKD 250,000 in the same period of 2018[8] - Interest income from bank deposits rose to approximately HKD 3,790,000 in the third quarter of 2019, compared to HKD 2,430,000 in 2018[8] - The total comprehensive loss for the third quarter of 2019 was HKD 7,624,000, a decrease from HKD 38,405,000 in the same quarter of 2018[11] - Operating expenses for the third quarter of 2019 decreased to HKD 15,690,000 from HKD 34,890,000 in 2018, primarily due to reduced employee costs and professional fees[8] - The basic loss per share for the nine months ended December 31, 2019, was HKD 0.76, compared to HKD 5.11 in the same period of 2018[8] - The total revenue for the nine months ended December 31, 2019, was HKD 12,748,000, up from HKD 758,000 in 2018[11] - The total comprehensive loss for the nine months ended December 31, 2019, was HKD 26,601,000, a reduction from HKD 181,814,000 in 2018[11] - The company recorded a total comprehensive loss of HKD 26,600,000 for the nine months ended December 31, 2019, down from HKD 181,810,000 in the same period of 2018[67] - Operating expenses for the nine months ended December 31, 2019, decreased to HKD 37,280,000 from HKD 176,050,000 in 2018, primarily due to reduced employee costs and project expenses[67] Revenue Sources - Investment advisory revenue for the three months ended December 31, 2019, was HKD 3,567,000, a significant increase from HKD 475,000 in the same period of 2018, representing a growth of 651%[26] - Total revenue for the nine months ended December 31, 2019, reached HKD 12,748,000, compared to HKD 758,000 for the same period in 2018, marking a substantial increase of 1,578%[26] - Loan interest income for the three months ended December 31, 2019, was HKD 418,000, up from HKD 253,000 in the same period of 2018, reflecting a growth of 65%[26] - Interest income from loan activities increased to HKD 420,000 for the third fiscal quarter of 2019, up from HKD 250,000 in 2018, and totaled HKD 1,170,000 for the nine months ended December 31, 2019, compared to HKD 280,000 in 2018[66] - Interest income from bank deposits rose to approximately HKD 10,830,000 for the nine months ended December 31, 2019, compared to HKD 5,940,000 in 2018[66] Shareholder Information - Zhong Zhi Xin Zhuo Capital Company Limited holds 60.82% of the company's shares, totaling 2,159,552,102 shares[78] - Xizang Kangbang Shengbo Enterprise Management Limited controls 73.66% of the company's shares, amounting to 2,615,372,627 shares[81] - The major shareholder structure indicates significant control by related parties, with multiple entities holding substantial stakes[83] - The total shares held by major shareholders reflect a concentrated ownership structure, which may impact corporate governance[84] - No other individuals were reported to have significant interests in the company's shares as of December 31, 2019, apart from disclosed parties[85] Corporate Strategy and Future Outlook - The company is pursuing a potential acquisition of a public company in China that provides internet backend services and smart data solutions, which is expected to diversify its business and revenue sources[63] - The company anticipates that the global economy and trade growth may improve in 2020, with expected GDP growth in mainland China around 6%[68] - The company aims to continue its diversified development strategy, focusing on corporate advisory and financing services to generate stable income[68] - The company plans to enter two new international markets by the end of the fiscal year, targeting an additional $2 billion in revenue[93] Audit and Compliance - The audit committee reviewed the third-quarter financial statements and confirmed compliance with applicable accounting standards[91] - The company has established an audit committee in accordance with GEM listing rules to oversee financial reporting and risk management[89] Investment and Market Activities - The group had no plans for investments in alternative investments during the reporting period[23] - The company is engaged in private equity investment, private placements, overseas mergers and acquisitions, which may compete with its business[88] - The company did not purchase, sell, or redeem any of its listed securities during the nine months ending December 31, 2019[87] Product and Market Performance - The company reported a revenue of $18 billion for the quarter, reflecting a year-over-year increase of 10%[93] - User data showed an increase in active users to 150 million, representing a growth of 15% compared to the previous year[93] - The company provided guidance for the next quarter, expecting revenue to be between $19 billion and $20 billion, indicating a potential growth of 5% to 11%[93] - New product launches contributed to a 25% increase in sales, with the latest product line accounting for $4.5 billion in revenue[93] - The company invested $500 million in research and development for new technologies, aiming to enhance product features and user experience[93] - Market expansion efforts led to a 30% increase in sales in the Asia-Pacific region, contributing significantly to overall growth[93] - The company completed a strategic acquisition for $1 billion, expected to enhance its market position and product offerings[93] - A new marketing strategy was implemented, resulting in a 20% increase in customer engagement metrics[93] - The gross margin improved to 45%, up from 42% in the previous quarter, indicating better cost management[93]

Financial Performance - For the interim period of 2019, ZZ Capital International Limited reported investment advisory income of HKD 7,850,000, financial advisory income of HKD 100,000, and interest income from lending activities of HKD 750,000, compared to zero in 2018 for both advisory incomes [9]. - The company recorded a loss before tax of HKD 19,090,000 for the interim period, a substantial improvement from a loss of HKD 145,920,000 in the same period of 2018 [9]. - Total comprehensive loss for the second fiscal quarter of 2019 was HKD 8,050,000, down from HKD 38,730,000 in 2018, while the total comprehensive loss for the interim period was HKD 18,980,000, compared to HKD 143,410,000 in 2018 [9]. - The group reported a pre-tax loss of HKD 7,822,000 for the six months ended September 30, 2019, compared to a loss of HKD 143,256,000 for the same period in 2018 [102]. - The company reported a comprehensive loss of HKD 18,980,000 for the first half of 2019, compared to HKD 143,410,000 in the same period of 2018 [171]. Assets and Liabilities - As of September 30, 2019, total assets were approximately HKD 700,700,000, down from HKD 714,880,000 as of March 31, 2019 [9]. - The net asset value as of September 30, 2019, was approximately HKD 686,180,000, compared to HKD 705,180,000 as of March 31, 2019 [9]. - Total non-current liabilities amounted to 4,984 million HKD [18]. - Total current liabilities were 9,545 million HKD, a decrease from 9,702 million HKD [18]. - Net current assets stood at 663,010 million HKD, down from 685,988 million HKD [18]. Cash Flow - The company reported a net cash outflow from operating activities of 4,618 million HKD for the six months ended September 30, 2019 [23]. - Cash and cash equivalents decreased to 477,891 million HKD from 525,124 million HKD [24]. - The company generated a net cash inflow from investing activities of 9,650 million HKD [24]. - The group had cash and bank deposits of HKD 3,519,000 as of September 30, 2019, compared to HKD 2,930,000 as of March 31, 2019 [91]. - The company reported a bank balance and cash of HKD 296,637,000 as of September 30, 2019, compared to HKD 270,384,000 as of March 31, 2019, indicating an increase of approximately 9.8% [128]. Employee Expenses - The group reported employee benefit expenses of HKD 4,940,000 for the three months ended September 30, 2019, down from HKD 13,419,000 for the same period in 2018 [94]. - The total employee costs for the interim period were approximately HKD 9,950,000, significantly lower than HKD 64,470,000 in 2017 [180]. - The company’s short-term employee benefits amounted to HKD 1,888,000 for the three months ended September 30, 2019, down from HKD 4,366,000 in the same period of 2018 [139]. Dividends - The company did not recommend the payment of an interim dividend for the period, consistent with 2018 [9]. - The group did not recommend an interim dividend for the six months ended September 30, 2019, consistent with no dividend in 2018 [105]. - The board does not recommend the payment of an interim dividend for the 2019 interim period [192]. Accounting Policies - The company adopted new and revised Hong Kong Financial Reporting Standards effective from April 1, 2019, impacting accounting policies [29]. - The company has adopted the new and revised Hong Kong Financial Reporting Standards, specifically HKFRS 16, which has led to significant changes in accounting policies related to leases [39]. - The cumulative impact of the initial application of HKFRS 16 was recognized on the first application date, April 1, 2019, without restating comparative information [60]. - The company will present right-of-use assets as a separate item in the consolidated statement of financial position [45]. Business Operations - The company’s business primarily focuses on providing corporate advisory and loan financing services [81]. - The company is pursuing a potential acquisition of a public company in China, which provides internet backend services and smart data solutions, to diversify its business and revenue sources [162]. - The group plans to enhance its corporate advisory and financing services, having already signed several service contracts expected to generate stable income in the second half of the year [189]. - The group has no plans for significant investments or acquisitions of capital assets, but will seek investment and lending opportunities to enhance profitability [187]. Investment Income - The group’s net investment (loss) income was a loss of HKD 179,000 for the three months ended September 30, 2019, compared to a net income of HKD 6,826,000 for the same period in 2018 [91]. - The company experienced a net investment loss of approximately HKD 1,330,000 for the first half of 2019, compared to a net income of HKD 7,410,000 in the same period of 2018 [167]. - Total revenue from investment advisory services was HKD 5,207,000 for the six months ended September 30, 2019, compared to HKD 8,693,000 for the same period in 2018 [86].