Financial Performance - Total revenue for the first quarter was approximately HKD 257.2 million, a decrease of about 12.0% compared to HKD 292.3 million in the same period last year[4] - The pre-tax loss for the period was approximately HKD 12.7 million, a reduction of about 36.8% from a pre-tax loss of HKD 20.1 million in the previous year[4] - Loss attributable to equity holders of the company was approximately HKD 14.4 million, down 29.1% from HKD 20.3 million in the same period last year[4] - Basic and diluted loss per share was approximately HKD 1.12, compared to HKD 1.58 in the same period last year[5] - Gross profit for the period was HKD 2.9 million, compared to a gross loss of HKD 5.3 million in the previous year[7] - Other income for the period was HKD 218,000, significantly lower than HKD 4.2 million in the same period last year[7] - Administrative expenses and finance costs totaled HKD 15.8 million, compared to HKD 19.0 million in the previous year[7] - The total comprehensive loss for the period was HKD 10.4 million, compared to HKD 18.1 million in the same period last year[9] - The company reported a foreign exchange gain of HKD 2.3 million for the period, compared to a gain of HKD 1.9 million in the previous year[9] Revenue Breakdown - Trade business revenue was HKD 250,317,000, down from HKD 290,254,000 in the previous year, primarily due to the cessation of new product trade activities[41] - Revenue from the petrochemical product storage business increased by approximately 305.9% to about HKD 6,904,000 from HKD 1,749,000 in 2020[42] - The cost of sales decreased by approximately 14.5% to about HKD 254,400,000 from HKD 297,600,000 in the previous year[43] Cost Management - The company continues to focus on cost management and operational efficiency to improve financial performance in the upcoming quarters[4] - Financing costs for the period included interest on bank loans and other borrowings amounting to HKD 92,000, down from HKD 5,589,000 in the previous year[29] - Financing costs for the period were approximately HKD 7,400,000, a decrease from approximately HKD 12,900,000 in 2020[47] Equity and Investments - As of March 31, 2021, the total equity attributable to the company's shareholders was approximately HKD 417,300,000, up from approximately HKD 405,500,000 as of December 31, 2020[48] - The group had approximately HKD 137,700,000 in pledged bank deposits as collateral for bank financing as of March 31, 2021, down from approximately HKD 218,600,000 as of December 31, 2020[49] - The company issued USD 55,000,000 guaranteed bonds with an annual interest rate of 2.4% for a term of three years, netting approximately USD 52,700,000 after expenses[50] - The group does not anticipate any major investments, acquisitions, or disposals of subsidiaries and associates during the period, aside from holding a 40% stake in Jiangsu Hairong[52] - The company plans to invest resources to enhance its trading business quality and seize integration opportunities with Jiangsu Yancheng Port Group[56] Market Outlook - The group expects improved US-China relations under the new US administration, although uncertainties remain, and is optimistic about global economic recovery due to COVID-19 vaccine rollout and economic stimulus policies[53] Corporate Governance - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM listing rules[76] - The company is committed to maintaining high standards of corporate governance and has complied with all relevant codes during the reporting period[77] - The company has established an audit committee to oversee financial reporting and internal control systems[78] - The audit committee reviewed the first quarter financial statements, which comply with applicable accounting standards and GEM listing rules[78] Employee and Stakeholder Relations - The management expresses gratitude to all employees, business partners, customers, and shareholders for their continued support[82]

Economic Challenges - The Group faced significant challenges due to the COVID-19 pandemic, which severely impacted international trade and the import/export business of electronic and petrochemical products[16]. - The China-USA trade war intensified during the year, leading to increased tariffs on goods imported from China, negatively affecting the Group's trading and import/export operations[17]. - The macroeconomic environment presented various impacts on the Group's business development, necessitating strategic adjustments[15]. - The Group's performance was influenced by the complex macro situation, including economic downturns and trade frictions[15]. - The overall economic performance deteriorated, leading to a serious negative impact on the Group's core business areas[16]. Business Expansion and Adaptation - The Group expanded its trade business to include medical and food disinfection products, turning challenges into opportunities during the pandemic[16]. - The Group's proactive measures during the pandemic included diversifying into new markets and products[16]. - International crude oil prices experienced volatility, but the Group capitalized on the opportunity to expand its petrochemical storage business in response to China's increased oil reserves[18]. - The Group's strategic response to external challenges included leveraging market opportunities in the petrochemical sector[18]. Financial Performance - The Group's trading business revenue increased by approximately 34.4% to HK$2,018.8 million in 2020, up from HK$1,502.1 million in 2019, primarily due to new product trading related to medical treatment and food disinfection amid COVID-19[27]. - The integrated logistics handling business recorded a revenue decrease of approximately 2.8% to HK$6.9 million in 2020, down from HK$7.1 million in 2019, due to the disposal of 60% equity interests in Jiangsu Hairong[28]. - The petrochemical products storage business saw a revenue increase of 206.3% to approximately HK$24.2 million in 2020, compared to HK$7.9 million in 2019, driven by increased oil product storage quantities as a result of falling international crude oil prices[34]. - The Group's total revenue from continuing operations increased by approximately 35.3% to approximately HK$2,043.0 million in 2020, compared to HK$1,510.0 million in 2019[42]. - The cost of revenue increased by approximately 35.5% to approximately HK$2,010.7 million in 2020, up from HK$1,484.0 million in 2019, mainly due to the increase in trading and storage business[43]. - The Group recorded a gross profit margin of approximately 1.6% for the year, slightly down from 1.7% in 2019, attributed to intense competition in the trade business[44]. - The Group reported a profit of approximately HK$567.9 million for the year, a significant turnaround from a loss of approximately HK$945.0 million in 2019, largely due to a gain from the disposal of 60% equity interests in Jiangsu Hairong[46]. - The profit attributable to equity holders was approximately HK$563.6 million, compared to a loss of approximately HK$946.6 million in 2019, with basic earnings per share of HK cents 43.76[46]. Current Financial Position - As of December 31, 2020, the Group had net current liabilities of approximately HK$320.0 million, a decrease from approximately HK$788.5 million in 2019[47]. - The current ratio as of December 31, 2020, was approximately 0.60, compared to 0.57 in 2019, indicating a slight improvement in liquidity[51]. - The gearing ratio as of December 31, 2020, was approximately negative 120.3%, compared to negative 60.6% in 2019, reflecting a significant increase in debt relative to equity[51]. - The Group's net current liabilities decreased to approximately HK$320,000,000 as of December 31, 2020, down from HK$788,500,000 in 2019[50]. - The Group expects to generate adequate cash flows to maintain its operations moving forward[51]. Investments and Financial Support - The Group plans to invest resources to enhance its trade business and optimize resources in light of the integrated development opportunities with Jiangsu Yancheng[35]. - The Group plans to issue US$55 million in credit enhanced guaranteed bonds intended for professional investors, primarily for refinancing and replenishing working capital[54]. - The Group has obtained financial support of up to RMB1 billion (equivalent to HK$1,188,500,000) from Jiangsu Dafeng, a connected company[51]. Employee and Operational Changes - The Group employed a total of 123 employees as of December 31, 2020, with total staff costs from continuing operations amounting to approximately HK$17.0 million, down from approximately HK$19.5 million in 2019[85]. - The total employee cost from continuing operations for the year was approximately HKD 17,000,000, down from HKD 19,500,000 in 2019, with 123 employees as of December 31, 2020[89]. - The total number of employees decreased from 134 in 2019 to 123 in 2020, reflecting a strategic adjustment in workforce management[89]. Corporate Governance and Compliance - The Company has engaged a professional third-party institution to evaluate ESG risks and opportunities, establishing risk management and internal control policies[94]. - The Company actively communicates with stakeholders to understand their expectations and interests regarding ESG information[95]. - The Company has established an ESG working group that reports to the Board to implement ESG management[94]. - A detailed ESG report is provided in pages 51 to 96 of the annual report[98]. - The Company has maintained compliance with all provisions of the Corporate Governance Code as per GEM Listing Rules during the year[198]. - The Company is committed to continuously reviewing its corporate governance practices to enhance standards and meet regulatory requirements[199]. Shareholder Information - The Board did not recommend the payment of any dividend for the year, consistent with the previous year[72]. - As of December 31, 2020, the Company's reserves available for distribution to shareholders included a share premium account of HK$201.4 million and accumulated losses of approximately HK$591.2 million[138]. - Dafeng Port Overseas holds 740,040,000 shares, representing approximately 57.46% of the total issued shares as of December 31, 2020[87]. - The five highest paid employees' emoluments are detailed in the consolidated financial statements[158]. - The Company operates a share option scheme which has not granted, exercised, or cancelled any share options since its inception[160]. Directors and Management - Mr. Ji owns 55% equity interest in Success Pacific and Jiangsu Huahai, which hold 18% and 10% equity interests in Dafeng Port Overseas respectively[108]. - Mr. Yang has extensive experience in corporate management and is currently a director at Shenzhen Rongcheng Investment Company Limited[109]. - Mr. Miao has been the general manager at Shanghai Xinzhi Energy Co., Limited since 2004 and is also the chairman of Jiangsu Dafeng Port Hairong Shipping Co., Limited[110]. - Dr. Bian has a Ph.D. in Integrated Chinese and Western Medicine and serves as an associate vice-president at Hong Kong Baptist University[113]. - Mr. Lau has served as an independent non-executive director for multiple listed companies and holds degrees in commerce and professional accounting[114]. - Mr. Yu has extensive experience as an independent director for various companies and holds multiple law degrees from prestigious universities[118]. - Mr. Zhang has over 15 years of experience in import and export businesses and previously managed the business department at a state-owned enterprise[120]. Related Party Transactions - The Company is subject to notification and approval requirements under the GEM Listing Rules for connected transactions[174]. - The financial assistance received by the Company is provided on normal commercial terms and is exempt from reporting and independent shareholders' approval requirements under GEM Listing Rules[179]. - Jiangsu Dafeng's subsidiaries engage in trading various goods, which may compete with the Company's core activities, but the Board believes there is no material competitive threat due to different product focuses[182][183].

Financial Performance - Total revenue from continuing operations for the nine months ended September 30, 2020, was approximately HKD 1,694,500,000, an increase of about 58.8% compared to HKD 1,067,300,000 for the same period in 2019[4] - The profit before tax from continuing operations for the nine months was approximately HKD 641,000,000, a significant turnaround from a loss of HKD 44,100,000 in the same period of 2019[4] - Profit attributable to equity holders of the company for the nine months was approximately HKD 638,000,000, compared to a loss of HKD 48,800,000 in the same period of 2019[4] - Earnings per share from continuing operations for the nine months was approximately HKD 49.54, compared to a loss of HKD 3.79 in the same period of 2019[10] - Total comprehensive income for the nine months was approximately HKD 616,619,000, compared to a loss of HKD 72,691,000 in the same period of 2019[10] - The company reported a profit attributable to equity holders of approximately HKD 664,460,000 for the three months ended September 30, 2020, compared to a loss of HKD 13,169,000 in the same period of 2019[38] - The company recorded a profit from continuing operations of approximately HKD 640,700,000, compared to a loss of HKD 44,300,000 in 2019[50] Revenue and Business Segments - Revenue from trade business and petrochemical product storage for Q3 2020 was HKD 432,490,000, up from HKD 300,158,000 in Q3 2019, representing a 44% increase[26] - For the nine months ended September 30, 2020, total revenue reached HKD 1,694,533,000, compared to HKD 1,067,274,000 for the same period in 2019, marking a 59% growth[26] - Revenue from trading activities increased to approximately HKD 1,683,700,000, up 58.8% from HKD 1,062,000,000 in 2019, primarily due to increased trade in medical and food disinfection products related to COVID-19[45] - Revenue from petrochemical storage business rose by approximately 105.7% to about HKD 10,900,000, compared to HKD 5,300,000 in 2019, driven by increased storage demand due to falling international oil prices[46] Costs and Expenses - The group reported a gross profit of approximately HKD 11,609,000 for the nine months, down from HKD 17,387,000 in the same period of 2019[7] - Administrative expenses decreased to approximately HKD 26,711,000 for the nine months, compared to HKD 37,381,000 in the same period of 2019[7] - The group’s financing costs decreased to approximately HKD 33,176,000 for the nine months, down from HKD 41,574,000 in the same period of 2019[7] - The gross profit margin from continuing operations decreased to approximately 0.7%, down from 1.6% in 2019, as revenue growth was lower than the increase in cost of revenue[49] - Financing costs decreased by approximately 20.2% to about HKD 33,200,000, down from HKD 41,600,000 in 2019, mainly due to partial repayment of loans from Jiangsu Dafeng[49] Dividends and Equity - The board of directors did not recommend any interim dividend for the period, consistent with the previous year[36] - The total equity as of September 30, 2020, was HKD 614,280,000, reflecting a decrease from HKD 616,619,000 in the previous year[18] - The total equity attributable to equity holders decreased to approximately HKD 353,200,000 as of September 30, 2020, down from HKD 967,500,000 as of December 31, 2019[54] - The board did not recommend any interim dividend for the period, consistent with 2019[55] Market and Operational Challenges - The company anticipates continued challenges due to ongoing US-China conflicts and the impact of COVID-19 on global economic activities, which may hinder productivity and logistics services[66] - The company will prudently monitor its business segments and optimize resources to maintain shareholder interests amid adverse external conditions[66] Corporate Governance and Compliance - The company has adopted a code of conduct for securities trading, adhering to GEM listing rules, with no known violations during the reporting period[88] - The company is committed to maintaining high corporate governance standards, having complied with all provisions of the GEM Corporate Governance Code during the reporting period[89] - The audit committee, established in August 2013, reviews financial statements and oversees internal control procedures, ensuring compliance with applicable accounting standards[90] Financing and Investments - The company utilized bank financing and other borrowings for business expansion, with collateralized borrowings amounting to approximately HKD 288,700,000 as of September 30, 2020[56] - The company has not issued or granted any convertible securities, warrants, or similar rights as of September 30, 2020[71] - There were no major investments, acquisitions, or disposals of subsidiaries or associates during the reporting period[62] - The company did not purchase, sell, or redeem any of its listed securities during the period[80] Shareholding Structure - The shareholding structure indicates that Dafeng Port Overseas and Jiangsu Dafeng each hold 740,040,000 shares, representing 57.46% of the issued share capital[75] - Jiangsu Dafeng now holds a significant influence over Dafeng Port Overseas, owning 57.46% of the shares[61] - The board of directors operates independently from Jiangsu Dafeng, ensuring no conflicts of interest in decision-making processes[85]

Dafeng Port Heshun Technology Company Limited 大豐港和順科技股份有限公司 (於開曼群島註冊成立的有限公司) 胎份代號 : 8310 中期報告 2020 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市 的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經 過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證券 承受較大的市場波動風險，同時無法保證在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之內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不就因本報告全部或任何部分內容而產生或因依賴該等 內容而引致之任何損失承擔任何責任。 本報告之資料乃遵照聯交所GEM證券上市規則（「GEM上市規則」）之規定而刊載，旨在提 供有關大豐港和順科技股份有限公司（「本公司」）之資料，本公司各董事（「董事」）願就本 報告共同及個別地承擔全部責任。各董事在作出一切合理查詢後確認， ...

Financial Performance - Total revenue for the first quarter of 2020 was approximately HKD 292.3 million, a decrease of about 38.4% compared to HKD 474.4 million in the same period of 2019[4] - The pre-tax loss for the period was approximately HKD 20.1 million, a reduction of about 22.1% from a pre-tax loss of HKD 25.8 million in the same period of 2019[4] - Loss attributable to equity holders of the company was approximately HKD 20.3 million, down about 31.2% from HKD 29.5 million in the same period of 2019[4] - Basic and diluted loss per share for the period was approximately HKD 1.58, compared to HKD 2.29 in the same period of 2019[5] - The gross loss for the period was approximately HKD 5.3 million, compared to a gross profit of HKD 2.1 million in the same period of 2019[8] - The total comprehensive loss for the period was approximately HKD 18.1 million, compared to a total comprehensive loss of HKD 4.0 million in the same period of 2019[8] - Trade business revenue was approximately HKD 290,300,000, down from HKD 469,900,000 in 2019, primarily due to the impact of COVID-19 and the US-China trade war[46] - Integrated logistics services revenue was HKD 292,000, a significant decline from HKD 2,421,000 in 2019, attributed to adverse effects from COVID-19 and ongoing trade tensions[47] Expenses and Income - Administrative expenses decreased to approximately HKD 6.1 million from HKD 14.1 million in the same period of 2019[8] - Other income for the period was approximately HKD 4.2 million, compared to HKD 0.4 million in the same period of 2019[8] - The cost of sales decreased by approximately 37.0% to about HKD 297,600,000 (2019: HKD 472,300,000), primarily influenced by the decline in trade business revenue[52] Dividends and Shareholder Information - The company did not recommend any interim dividend for the period, consistent with the previous year[38] - The group did not recommend any interim dividend for the period (2019: none)[57] - As of March 31, 2020, the major shareholder, Da Feng Port Overseas, holds 740,040,000 shares, representing approximately 57.46% of the company's issued share capital[75] - Jiang Wen and Li Qiuhua each hold 73,350,000 shares, accounting for 5.69% of the company's issued share capital[75] Market Conditions and Future Outlook - The group faced significant macroeconomic challenges due to the COVID-19 pandemic, which adversely affected business development[44] - The company continues to explore new strategies for market expansion and product development to improve future performance[4] - The group anticipates significant challenges ahead due to ongoing U.S.-China conflicts and the COVID-19 pandemic, which may hinder global economic activities[65] Corporate Governance - The audit committee reviewed the first-quarter financial statements, which were not audited by the company's auditor but were deemed compliant with applicable accounting standards and regulations[91] - The board expresses gratitude to management, employees, business partners, customers, and shareholders for their contributions and support[95] - The board consists of a mix of executive, non-executive, and independent non-executive directors, including Chairman Tao Ying and several other key members[95] Other Information - The company has not adopted any new or revised Hong Kong Financial Reporting Standards that would have a significant impact on its financial performance[27] - There were no significant investments or acquisitions during the period[64] - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[83] - The company believes that the business of Jiangsu Dafeng Group does not pose a significant competitive threat due to differing product types and target customers[84] - The report is dated May 13, 2020, indicating the company's commitment to transparency and timely communication[95]

Macroeconomic Challenges - The Group faced severe macroeconomic challenges during the year ended December 31, 2019, significantly impacting business development [17]. - The China-USA trade war intensified, leading to tariffs on goods imported from China, negatively affecting the Group's trading and import/export operations [18]. - The Group's overall business environment was severely affected by the macroeconomic conditions and the ongoing China-USA trade tensions [22]. Regulatory Changes - The VAT rate in the PRC was reduced from April 1, 2019, with the original 16% tax rate adjusted to 13% and the 10% tax rate adjusted to 9%, impacting pricing advantages in the import/export market [19]. - The adjustment of the value-added tax rates in China, effective April 1, 2019, has led to a decrease in export rebates, impacting the trading business [23]. - The Jiangsu Province Government's regulatory changes aim to reduce the number of chemical plants to 1,000 by the end of 2022, which has significantly impacted the Group's terminal handling and petrochemical storage business [26]. Business Performance - The Group's trading business recorded revenue of approximately HK$1,502.1 million for the year, a decrease from HK$4,160.0 million in the previous year, primarily due to high operational risks and the impact of the China-USA trade war [33]. - Revenue from the integrated logistics handling and relevant supporting services business was approximately HK$7.1 million, down from HK$201.1 million in the previous year, attributed to the acquisition of Jiangsu Hairong and the explosion incident in the chemical industry park [37]. - The Group's revenue decreased by approximately 63.6% to approximately HK$1,517.1 million for the Year, down from approximately HK$4,169.5 million in 2018 [48]. Financial Results - The Group's cost of revenue decreased by approximately 64.0% to approximately HK$1,516.2 million for the Year, compared to approximately HK$4,205.9 million in 2018 [49]. - The Group recorded a gross profit margin of approximately 0.1% for the Year, an improvement from a gross loss margin of approximately 0.9% in 2018 [50]. - The Group recorded a net impairment loss on goodwill and other assets of approximately HK$848.6 million for the Year, significantly higher than approximately HK$45.6 million in 2018 [56]. - The Group's loss for the Year was approximately HK$945.0 million, compared to a loss of approximately HK$174.0 million in 2018 [57]. Current Financial Position - As of 31 December 2019, the Group had net current liabilities of approximately HK$788.5 million, an increase from approximately HK$591.2 million in 2018 [58]. - The Group's current ratio as of 31 December 2019 was approximately 0.57, down from approximately 0.72 in 2018 [59]. - The total deficit attributable to equity holders of the Company was approximately HK$967.5 million as of December 31, 2019, compared to approximately HK$6.4 million in 2018 [64]. Operational Changes - A major explosion at a chemical plant in Jiangsu Province led to emergency responses and the closure of the industrial park, prompting safety inspections and potential shutdowns of chemical plants nationwide [20]. - The explosion incident on March 21, 2019, led to numerous chemical companies being shut down or rectified, further declining business volume for Jiangsu Hairong [40]. - The decrease in trading revenue was also influenced by many customers adopting a wait-and-see attitude due to changes in the value-added tax affecting export rebates [36]. Management and Governance - The company has a strong leadership team with diverse backgrounds in finance, management, and industry-specific expertise, contributing to strategic decision-making [102]. - The Group is focused on expanding its market presence and enhancing operational efficiency through strategic appointments and management practices [100]. - The company is committed to maintaining high corporate governance standards and has complied with all provisions of the Corporate Governance Code during the year [200]. Employee and Staffing - As of December 31, 2019, the Group employed a total of 195 employees, an increase from 128 employees in 2018 [88]. - Total staff costs for the year amounted to approximately HK$25.8 million, down from approximately HK$29.1 million in 2018, reflecting a decrease of about 11.3% [88]. Shareholder Information - The Group's largest customer accounted for approximately 16.0% of total revenue, while the five largest customers accounted for 46.5% [126]. - The Group's largest supplier accounted for approximately 24.7% of total purchases, while the five largest suppliers accounted for 65.2% [126]. - No final dividend was recommended for the Year, consistent with the previous year [125].

Financial Performance - Total revenue for the nine months ended September 30, 2019, was approximately HKD 1,072,000,000, a decrease of about 65.3% compared to HKD 3,090,500,000 for the same period in 2018[5] - The pre-tax loss for the period was approximately HKD 67,200,000, a reduction of about 14.8% from the pre-tax loss of HKD 78,900,000 in the same period of 2018[5] - Loss attributable to equity holders for the period was approximately HKD 71,900,000, an increase of about 2.6% compared to HKD 70,100,000 in the same period of 2018[5] - Basic loss per share for the period was approximately HKD 5.58, compared to HKD 5.44 for the same period in 2018[5] - The gross loss for the nine months was approximately HKD 4,446,000, compared to a gross loss of HKD 1,891,000 in the same period of 2018[10] - Total comprehensive loss for the nine months was approximately HKD 72,691,000, compared to HKD 115,028,000 in the same period of 2018[16] - The company reported a loss from continuing operations of approximately HKD 67,350,000 for the nine months ended September 30, 2019[12] - The company experienced a significant decrease in revenue, indicating challenges in its operational performance and market conditions[5] - Revenue from trade business for the three months ended September 30, 2019, was approximately HKD 1,061,952,000, a decrease of 65.5% compared to HKD 3,084,337,000 in the same period of 2018[47] - Revenue from integrated logistics services for the three months ended September 30, 2019, was approximately HKD 4,682,000, a decrease of 96.1% compared to HKD 120,400,000 in the same period of 2018[66] - The company reported a loss attributable to equity holders of approximately HKD 21,811,000 for the three months ended September 30, 2019, compared to a loss of HKD 21,164,000 in the same period of 2018[58] - The basic loss per share for the three months ended September 30, 2019, was HKD (1.69), compared to HKD (1.64) in the same period of 2018[58] Strategic Adjustments and Future Outlook - The financial results reflect ongoing strategic adjustments and potential market expansion efforts[5] - Future outlook and guidance were not explicitly detailed in the provided content, indicating a need for further clarification in subsequent communications[5] - The company is focusing on expanding its market presence and enhancing its product offerings in response to the competitive landscape[29] - The company has indicated plans for future product development and technological advancements to drive growth[29] - The management provided guidance for the upcoming quarter, anticipating continued challenges in revenue generation but optimistic about long-term recovery strategies[29] Accounting and Financial Structure - The company has adopted new accounting standards effective from January 1, 2019, which include HKFRS 16, impacting the recognition of lease liabilities and right-of-use assets[30] - The company reported a significant increase in lease liabilities, amounting to HKD 4,758 million as of January 1, 2019, under the new accounting standards[39] - The company’s capital structure remains stable with a total equity of HKD 12,880 million as of September 30, 2019[25] - The company incurred finance costs of HKD 41,897,000 for the nine months ended September 30, 2019, compared to HKD 21,075,000 in the same period of 2018[48] - The company’s tax expense for the nine months ended September 30, 2019, was HKD 138,000, compared to HKD 268,000 in the same period of 2018[54] - The group recorded a loss of approximately HKD 67,400,000 compared to a loss of HKD 79,000,000 in 2018, with a loss per share of approximately HKD 0.0558[73] - As of September 30, 2019, the total equity attributable to the company's equity holders was approximately HKD -85,200,000, compared to HKD -6,400,000 at the end of 2018[74] Corporate Governance - The company is committed to maintaining high standards of corporate governance and has adhered to all provisions of the corporate governance code during the reporting period[114] - The board of directors has expressed gratitude to management, employees, business partners, customers, and shareholders for their ongoing support[120] - The company will continue to review its corporate governance practices to enhance standards and meet regulatory requirements[114] - The audit committee was established on August 3, 2013, and consists of independent non-executive directors, ensuring compliance with GEM listing rules[115] - The third quarter financial statements were reviewed by the audit committee and deemed compliant with applicable accounting standards and legal requirements[115] Market and Operational Challenges - The company is currently undergoing resource restructuring after the acquisition of Jiangsu Hairong, which was completed in December 2018, impacting the logistics service revenue[66] - The user data indicated a significant loss in the gaming segment, with a reported loss of HKD 74,063 million for the nine months ending September 30, 2019[21] - The company experienced a net loss of HKD 112,733 million in the healthcare segment for the nine months ending September 30, 2019, compared to a loss of HKD 9,151 million in the previous year[21] - The total assets of the company as of September 30, 2019, were reported at HKD 55,585 million, a decrease from HKD 84,300 million in the previous year[21] - The group's revenue decreased by approximately 65.3% to about HKD 1,072,000,000 compared to HKD 3,090,500,000 in 2018[72] - The group's sales cost decreased by approximately 65.5% to about HKD 1,073,800,000 from HKD 3,114,200,000 in 2018[72] - The gross loss margin fell to approximately 0.2% from 0.8% in 2018, primarily due to high fixed costs in logistics and petrochemical storage[72] - Financing costs increased by approximately 98.6% to about HKD 41,900,000 from HKD 21,100,000 in 2018[73] - The group did not recommend any interim dividend for the period, consistent with 2018[75] - The group completed the sale of 51% of Gamma Logistics for HKD 4,150,000 on January 10, 2019[85] - The group plans to leverage its geographical advantages to develop Jiangsu Hairong into a diversified entity providing integrated logistics, petrochemical storage, and trading services[86] - As of September 30, 2019, the group had no significant contingent liabilities[87] Shareholder Information - Major shareholders include Dafeng Port Overseas, Jiangsu Dafeng, and Dafeng District People's Government, each holding 740,040,000 shares, representing approximately 57.46% of the issued share capital[98] - Jiang Wen holds a beneficial interest in 75,550,000 shares, accounting for 5.87% of the issued share capital[98] - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[107] - The board believes that the business of Jiangsu Dafeng Group does not pose a significant competitive threat to the company due to different target customers and product types[111] - The company has a stock option plan that has not granted, exercised, or canceled any options since its adoption in August 2013, with no unexercised options as of September 30, 2019[92]

Dafeng Port Heshun Technology Company Limited 㣐鞮度ㄤ갫猰䪮肆⟨剤ꣳⰗ 倴剋纈䃋鏽ⱁ䧭用涸剤ꣳⰗ 肆⟨➿贫 : 8310 中期報 香港聯合交易所有限公司GEM之特色 GEM之定位，乃為相比起其他在香港聯合交易所有限公司（「聯交所」）上市之公司帶有較高 投資風險之公司提供上市之市場。有意投資之人士應了解投資於該等公司之潛在風險，並應 經過審慎周詳之考慮後方作出投資決定。GEM之較高風險及其他特色表示GEM較適合專業 及其他經驗豐富投資者。 由於GEM上市公司新興之性質所然，在GEM買賣之證券可能會較於主板買賣之證券承受較 大之市場波動風險，同時無法保證在GEM買賣之證券會有高流通量之市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示概不就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 致之任何損失承擔任何責任。 本報告之資料乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關大 豐港和順科技股份有限公司（「本公司」）之資料，本公司各董事（「董事」）願就本報告之資料共 同及個別地承 ...

[GEM Market Features](index=2&type=section&id=GEM%20Market%20Features) [GEM Market Positioning and Risk Disclosure](index=2&type=section&id=GEM%20Market%20Positioning%20and%20Risk%20Disclosure) The GEM market is positioned for high-risk companies, suitable for professional investors, with securities subject to significant market volatility and uncertain liquidity - GEM market is positioned as a listing platform for high-investment-risk companies, suitable for professional and experienced investors[2](index=2&type=chunk) - GEM securities may be subject to significant market volatility, and high liquidity cannot be guaranteed[2](index=2&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange are not responsible for this report's content, make no statement as to its accuracy or completeness, and accept no liability for any loss[2](index=2&type=chunk) [Financial Highlights](index=3&type=section&id=Financial%20Highlights) [Q1 2019 Financial Performance Overview](index=3&type=section&id=Q1%202019%20Financial%20Performance%20Overview) The Group's Q1 2019 financial performance showed a significant revenue decline and increased losses across key metrics Q1 2019 Financial Summary (For the three months ended March 31) | Indicator | 2019 (HK$ Thousand) | 2018 (HK$ Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 474,400 | 797,700 | -40.5% | | Loss Before Tax | (25,800) | (22,000) | +17.3% | | Loss Attributable to Equity Holders of the Company | (29,500) | (19,400) | +52.1% | | Loss Per Share (HK cents) | (2.29) | (1.51) | +51.7% | [Condensed Consolidated Statement of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) [Q1 2019 Consolidated Comprehensive Income](index=4&type=section&id=Q1%202019%20Consolidated%20Comprehensive%20Income) The Group's Q1 2019 comprehensive income statement shows HK$474.4 million revenue, a small gross profit, and an overall comprehensive loss Condensed Consolidated Statement of Comprehensive Income (For the three months ended March 31) | Indicator | 2019 (HK$ Thousand) | 2018 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 474,408 | 797,654 | | Cost of Sales | (472,294) | (789,921) | | Gross Profit | 2,114 | 7,733 | | Loss Before Tax | (25,790) | (22,039) | | Loss for the Period | (25,790) | (22,039) | | Exchange Differences Arising from Translation of Overseas Operations | 21,785 | 4,119 | | Total Comprehensive Loss for the Period | (4,005) | (17,920) | | Loss Attributable to Equity Holders of the Company | (29,537) | (19,442) | | Basic and Diluted Loss Per Share (HK cents) | (2.29) | (1.51) | [Consolidated Statement of Changes in Equity](index=6&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) [Q1 2019 Consolidated Changes in Equity](index=6&type=section&id=Q1%202019%20Consolidated%20Changes%20in%20Equity) The Group's Q1 2019 equity changes reflect a total comprehensive loss for equity holders and non-controlling interests, resulting in HK$8.8 million total equity Consolidated Statement of Changes in Equity (For the three months ended March 31) | Indicator | 2019 (HK$ Thousand) | 2018 (HK$ Thousand) | | :--- | :--- | :--- | | Equity Attributable to Equity Holders of the Company at Beginning of Period | (6,353) | 161,728 | | Loss for the Period (Attributable to Equity Holders of the Company) | (29,537) | (19,442) | | Exchange Differences Arising from Translation of Overseas Operations (Attributable to Equity Holders of the Company) | 18,322 | 3,245 | | Total Comprehensive Loss for the Period (Attributable to Equity Holders of the Company) | (11,215) | (16,197) | | Disposal of a Subsidiary (Non-controlling Interests) | (4,114) | 2,877 | | Total Equity at End of Period | 8,808 | 182,019 | [Notes to Unaudited Q1 Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Q1%20Financial%20Statements) [Company Information](index=8&type=section&id=Company%20Information) The Company, incorporated on September 13, 2011, in the Cayman Islands, primarily operates as an investment holding company - The Company was incorporated on **September 13, 2011**, in the Cayman Islands as an investment holding company[29](index=29&type=chunk) [Basis of Preparation](index=8&type=section&id=Basis%20of%20Preparation) Q1 financial statements adhere to HKFRSs, HK GAAP, and GEM Listing Rules, consistent with 2018 audited statements, except for new HKFRSs adoption - Financial statements are prepared in accordance with **Hong Kong Financial Reporting Standards (HKFRSs)**, **Hong Kong Generally Accepted Accounting Principles (HK GAAP)**, and disclosure requirements of the Hong Kong Companies Ordinance, complying with GEM Listing Rules[30](index=30&type=chunk) - The basis of preparation is consistent with the 2018 audited financial statements, except for accounting policy changes due to the adoption of new HKFRSs[30](index=30&type=chunk) [Adoption of New/Revised HKFRSs](index=8&type=section&id=Adoption%20of%20New%2FRevised%20HKFRSs) The Group adopted new/revised HKFRSs, notably HKFRS 16 "Leases," which significantly impacted accounting by recognizing right-of-use assets and lease liabilities - The Group first applied **HKFRS 16 "Leases"** and other revised standards, effective from **January 1, 2019**[31](index=31&type=chunk) - HKFRS 16 resulted in future minimum operating lease payments being recognized as **right-of-use assets** and **lease liabilities**, along with interest expense and depreciation expense[34](index=34&type=chunk) Impact of HKFRS 16 Adoption (As at January 1, 2019) | Indicator | January 1, 2019 (HK$ Thousand) | December 31, 2018 (HK$ Thousand) | | :--- | :--- | :--- | | Right-of-use Assets | 4,758 | - | | Lease Liabilities | 4,758 | - | [Revenue](index=11&type=section&id=Revenue) The Group's Q1 2019 revenue, primarily from trading and logistics, significantly decreased to HK$474.4 million, driven by reduced trading business - Revenue primarily derives from **integrated logistics processing and related ancillary services**, **trading business**, and **petrochemical products storage business**[44](index=44&type=chunk) Revenue by Category (For the three months ended March 31) | Business Category | 2019 (HK$ Thousand) | 2018 (HK$ Thousand) | | :--- | :--- | :--- | | Integrated Logistics Processing and Related Ancillary Services | 2,421 | 46,834 | | Trading Business | 469,856 | 749,638 | | Petrochemical Products Storage Business | 2,131 | 1,182 | | **Total Revenue** | **474,408** | **797,654** | [Loss Before Tax](index=12&type=section&id=Loss%20Before%20Tax) Q1 2019 loss before tax increased to HK$25.8 million, mainly due to a significant rise in finance costs from bonds and acquisition loans, despite lower staff costs Components of Loss Before Tax (For the three months ended March 31) | Item | 2019 (HK$ Thousand) | 2018 (HK$ Thousand) | | :--- | :--- | :--- | | Finance Costs | 14,348 | 5,383 | | Cost of Inventories | 460,551 | 750,695 | | Depreciation | 8,014 | 4,107 | | Depreciation Expense for Right-of-use Assets | 703 | 2,277 | | Staff Costs | 10,275 | 22,707 | - **Finance costs** significantly increased to **HK$14,348 thousand**, primarily due to interest on the placement of unlisted secured bonds and borrowing for the acquisition of Jiangsu Hairong[48](index=48&type=chunk) - **Staff costs** decreased substantially year-on-year from HK$22,707 thousand to **HK$10,275 thousand**[48](index=48&type=chunk) [Taxation](index=13&type=section&id=Taxation) The Group recognized no Q1 2019 income tax due to a loss, with varying corporate tax rates across jurisdictions, including 16.5% in Hong Kong and 25% in China - The Group recorded a loss for the period, thus **no income tax** was recognized in profit or loss for the period[51](index=51&type=chunk) - Hong Kong profits tax rate is **16.5%**, Qianhai Mingtian enjoys a **15% preferential corporate income tax rate**, and China corporate income tax rate is **25%**[51](index=51&type=chunk) [Dividends](index=13&type=section&id=Dividends) The Board does not recommend paying any interim dividend for Q1 2019, consistent with the same period in 2018 - The Board does not recommend paying any interim dividend for the period[52](index=52&type=chunk) [Loss Per Share](index=14&type=section&id=Loss%20Per%20Share) Q1 2019 basic loss per share increased to 2.29 HK cents from 1.51 HK cents, with basic and diluted loss per share being identical due to no potential dilutive ordinary shares Loss Per Share Calculation (For the three months ended March 31) | Indicator | 2019 | 2018 | | :--- | :--- | :--- | | Loss Attributable to Equity Holders of the Company (HK$ Thousand) | (29,537) | (19,442) | | Weighted Average Number of Ordinary Shares in Issue | 1,288,000,000 | 1,288,000,000 | | Basic Loss Per Share (HK cents) | (2.29) | (1.51) | - Basic and diluted loss per share amounts are identical due to the **absence of potential dilutive ordinary shares** in the Company[57](index=57&type=chunk) [Approval of Q1 Financial Statements](index=14&type=section&id=Approval%20of%20Q1%20Financial%20Statements) The Q1 financial statements were approved and authorized for issue by the Board on May 9, 2019 - The Q1 financial statements were approved and authorized for issue by the Board on **May 9, 2019**[58](index=58&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=Management%20Discussion%20and%20Analysis) [Financial Review](index=15&type=section&id=Financial%20Review) The Group's Q1 2019 revenue declined significantly due to business adjustments and restructuring, resulting in a reduced gross margin and an expanded loss for the period Q1 2019 Financial Review (For the three months ended March 31) | Indicator | 2019 (HK$ Thousand) | 2018 (HK$ Thousand) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 474,400 | 797,700 | -40.5% | | Cost of Sales | 472,300 | 789,900 | -40.2% | | Gross Profit Margin | 0.5% | 1.0% | -0.5% | | Finance Costs | 14,300 | 5,400 | +164.8% | | Loss for the Period | (25,800) | (22,000) | +17.3% | - Revenue decreased primarily due to the **termination of certain trading businesses** with higher operational risks or gross losses, and the **integrated logistics processing business** being in a resource restructuring phase[70](index=70&type=chunk) - **Gross profit margin** decreased to **0.5%**, mainly because fixed costs for integrated logistics processing business remained constant while revenue decreased, and synergistic benefits were not yet achieved[70](index=70&type=chunk) [Trading Business](index=15&type=section&id=Trading%20Business) Trading Business Revenue (For the three months ended March 31) | Indicator | 2019 (HK$) | 2018 (HK$) | | :--- | :--- | :--- | | Trading Business Revenue | 469,900,000 | 749,600,000 | - Revenue reduction primarily resulted from the **termination of certain product trading businesses** that had higher operational risks or recorded gross losses[64](index=64&type=chunk) [Integrated Logistics Processing and Related Ancillary Services Business](index=15&type=section&id=Integrated%20Logistics%20Processing%20and%20Related%20Ancillary%20Services%20Business) Integrated Logistics Processing Business Revenue (For the three months ended March 31) | Indicator | 2019 (HK$) | 2018 (HK$) | | :--- | :--- | :--- | | Integrated Logistics Processing Business Revenue | 2,400,000 | 46,800,000 | - Revenue significantly decreased by **94.9%**, mainly because the business was in a resource restructuring period after the acquisition of Jiangsu Hairong and had not yet achieved synergistic benefits[65](index=65&type=chunk) [Petrochemical Products Storage Business](index=15&type=section&id=Petrochemical%20Products%20Storage%20Business) Petrochemical Products Storage Business Revenue (For the three months ended March 31) | Indicator | 2019 (HK$) | 2018 (HK$) | | :--- | :--- | :--- | | Petrochemical Products Storage Business Revenue | 2,100,000 | 1,200,000 | - Revenue increased by **75.0%**, primarily due to the **resumption of operations** of certain existing petrochemical storage tanks[66](index=66&type=chunk) [Capital Structure](index=16&type=section&id=Capital%20Structure) As of March 31, 2019, total equity attributable to equity holders further deteriorated to negative HK$17.6 million, with no changes in issued share capital during the period Total Equity Attributable to Equity Holders of the Company | Date | Amount (HK$) | | :--- | :--- | | March 31, 2019 | (17,600,000) | | December 31, 2018 | (6,400,000) | - There was **no change in the Company's issued share capital** during the period[72](index=72&type=chunk) [Dividends](index=17&type=section&id=Dividends) The Board does not recommend paying any interim dividend for Q1 2019, consistent with the same period in 2018 - The Board does not recommend paying any interim dividend for the period[77](index=77&type=chunk) [Pledge of Assets](index=17&type=section&id=Pledge%20of%20Assets) The Group's bank facilities and borrowings are secured by various assets, including property, plant and equipment, and pledged bank deposits, which amounted to HK$315.7 million as of March 31, 2019 - Secured borrowings are collateralized by **property, plant and equipment**, **sea area usage right payments**, **prepaid lease payments**, **guarantees for third-party loans**, and **pledged bank deposits**[78](index=78&type=chunk) Pledged Asset Values (As at March 31) | Asset Category | 2019 (HK$) | December 31, 2018 (HK$) | | :--- | :--- | :--- | | Property, Plant and Equipment | 57,200,000 | 66,500,000 | | Sea Area Usage Right Payments | 2,900,000 | 2,800,000 | | Prepaid Lease Payments | 36,000,000 | 35,100,000 | | Loan Guarantees | 3,500,000 | 3,400,000 | | Pledged Bank Deposits | 315,700,000 | 307,400,000 | [Placement of Unlisted Secured Bonds up to US$50 Million and Pledge of Controlling Shareholder's Account](index=17&type=section&id=Placement%20of%20Unlisted%20Secured%20Bonds%20up%20to%20US%2450%20Million%20and%20Pledge%20of%20Controlling%20Shareholder's%20Account) The Company placed US$50 million unlisted secured bonds in March 2018, with a 7.5% interest rate, secured by a controlling shareholder's pledge, and proceeds used for petrochemical facilities and working capital - The Company completed the placement of unlisted secured bonds with a principal amount of **US$50 million**, bearing an annual interest rate of **7.5%** for **three years** in **March 2018**[79](index=79&type=chunk) - Controlling shareholder Dafeng Port Overseas pledged all its rights, title, and interests in the pledged account (equivalent to approximately **57.46% of total issued shares**) as repayment guarantee[79](index=79&type=chunk) - Proceeds were used for the construction and maintenance of petrochemical storage tanks, upgrading ancillary facilities, acquiring Jiangsu Hairong, and for the Group's general working capital[83](index=83&type=chunk) [Disposal of Equity Interest in a Subsidiary](index=18&type=section&id=Disposal%20of%20Equity%20Interest%20in%20a%20Subsidiary) On January 10, 2019, the Company disposed of 51% of Gamma Logistics' issued share capital for HK$4.15 million, resulting in Gamma Logistics ceasing to be a subsidiary - The Company completed the disposal of **51% of Gamma Logistics' issued share capital** for **HK$4.15 million** on **January 10, 2019**[84](index=84&type=chunk) - Following the disposal, Gamma Logistics **ceased to be a subsidiary** of the Company[84](index=84&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries and Associates](index=18&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associates) Excluding the Gamma Logistics disposal, the Group had no other significant acquisitions or disposals of subsidiaries and associates during the period - Apart from the disposal of 51% equity interest in Gamma Logistics, the Group had **no other significant acquisitions or disposals** during the period[84](index=84&type=chunk) [Outlook](index=18&type=section&id=Outlook) The Group plans to leverage Dafeng Port's advantages to develop Jiangsu Hairong into a diversified group offering integrated logistics, petrochemical storage, and trading services - The Group will leverage **Dafeng Port's unique geographical advantages** to develop Jiangsu Hairong, aiming to become a diversified operating group[85](index=85&type=chunk) - Business development directions include **integrated logistics processing services**, **petrochemical products storage services**, and **trading business**[85](index=85&type=chunk) [Contingent Liabilities](index=18&type=section&id=Contingent%20Liabilities) As of March 31, 2019, the Group had no significant contingent liabilities, consistent with the situation as of December 31, 2018 - As of **March 31, 2019**, the Group had **no significant contingent liabilities**[86](index=86&type=chunk) [Other Information](index=19&type=section&id=Other%20Information) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares, and Debentures of the Company or Associated Corporations](index=19&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures%20of%20the%20Company%20or%20Associated%20Corporations) As of March 31, 2019, no directors or chief executives held disclosable interests or short positions in the Company's or associated corporations' shares, underlying shares, or debentures - As of **March 31, 2019**, no directors or chief executives held any disclosable interests or short positions in shares, underlying shares, and debentures[91](index=91&type=chunk) [Share Option Scheme](index=19&type=section&id=Share%20Option%20Scheme) The Company has a share option scheme to incentivize eligible persons, valid until August 2, 2023; since the Company's GEM listing, no share options have been granted, exercised, or cancelled under the scheme, and no outstanding options existed as of March 31, 2019, or the report date - The share option scheme is valid until **August 2, 2023**, aiming to incentivize eligible persons[92](index=92&type=chunk) - Since the Company's GEM listing, **no share options have been granted, exercised, or cancelled**, and there are no outstanding options[92](index=92&type=chunk) [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares of the Company](index=20&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares%20and%20Underlying%20Shares%20of%20the%20Company) As of March 31, 2019, Dafeng Port Overseas held 57.46% of the Company's shares as beneficial owner, pledging them as collateral, with Jiangsu Dafeng and Dafeng District People's Government also deemed to hold similar interests Substantial Shareholders' Shareholding (As at March 31) | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held (L)/(S) | Percentage of Issued Share Capital (Approx.) | | :--- | :--- | :--- | :--- | | Dafeng Port Overseas | Beneficial owner · and has provided share interest as collateral to a person other than a qualified moneylender | 740,040,000 (L)/(S) | 57.46% | | Jiangsu Dafeng | Interest of controlled corporation | 740,040,000 (L)/(S) | 57.46% | | Dafeng District People's Government | Interest of controlled corporation | 740,040,000 (L)/(S) | 57.46% | - Dafeng Port Overseas is **40% owned by Jiangsu Dafeng**, which is wholly owned by the **Dafeng District People's Government**[99](index=99&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) During Q1 2019, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[104](index=104&type=chunk) [Competing Interests](index=21&type=section&id=Competing%20Interests) Controlling shareholder Jiangsu Dafeng Group's trading businesses potentially compete with the Group, but the Board believes no significant threat exists due to differing product focuses and target customers - Controlling shareholder **Jiangsu Dafeng Group's subsidiaries** engage in various trading businesses that constitute or may constitute competition with the Group[105](index=105&type=chunk) - The Board believes that due to **different product type focuses and target customers**, Jiangsu Dafeng Group's businesses do not pose a significant competitive threat to the Group[105](index=105&type=chunk) - Board members have clear fiduciary duties and a code of conduct for handling conflicts of interest[109](index=109&type=chunk) [Code for Securities Transactions by Directors](index=22&type=section&id=Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a code for directors' securities transactions that complies with GEM Listing Rules, and no breaches were found during the period after inquiry - The Company has adopted a code for directors' securities transactions that **complies with GEM Listing Rules**[110](index=110&type=chunk) - **No breaches** of the code were found during the period[110](index=110&type=chunk) [Corporate Governance Code](index=22&type=section&id=Corporate%20Governance%20Code) The Company is committed to maintaining high corporate governance standards and has complied with the Corporate Governance Code set out in Appendix 15 of the GEM Listing Rules during the period, continuously reviewing practices to enhance standards - The Company has **complied with the Corporate Governance Code** set out in Appendix 15 of the GEM Listing Rules during the period[111](index=111&type=chunk) - The Company will continuously review its corporate governance practices to **enhance standards** and comply with regulatory requirements[111](index=111&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The Audit Committee, established on August 3, 2013, comprises independent non-executive directors responsible for recommending auditors, reviewing financial statements, providing financial reporting advice, and overseeing internal control and risk management systems; the committee has reviewed the Q1 financial statements and found them compliant with applicable accounting standards, GEM Listing Rules, and legal requirements - The Audit Committee was established on **August 3, 2013**, and its members are all **independent non-executive directors**[116](index=116&type=chunk) - Committee responsibilities include recommending auditors, reviewing financial statements, providing financial reporting advice, and overseeing internal control and risk management[116](index=116&type=chunk) - The Audit Committee has reviewed the Q1 financial statements and found them compliant with applicable accounting standards, GEM Listing Rules, and legal requirements[116](index=116&type=chunk) [Acknowledgements](index=23&type=section&id=Acknowledgements) [Board's Acknowledgements](index=23&type=section&id=Board's%20Acknowledgements) The Board, on behalf of the Company, extends its sincere gratitude to all management, staff, business partners, customers, and shareholders for their support and contributions - The Board sincerely thanks all management, staff, business partners, customers, and shareholders for their support and contributions[117](index=117&type=chunk)

Dafeng Port Heshun Technology Company Limited 大豐港和順科技股份有限公司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號 : 8310 ANNUAL CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED GEM has been positioned as a market designed to accommodate companies to which a higher investment risk may be attached than other companies listed on The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). Prospective investors should be aware of the potential risks of ...