Financial Performance - Revenue for the three months ended December 31, 2020, was HKD 14,188,000, a 99.1% increase compared to HKD 7,132,000 for the same period in 2019[3] - Gross profit for the nine months ended December 31, 2020, was HKD 4,838,000, up 102.5% from HKD 2,382,000 in the previous year[3] - The company reported a loss before tax of HKD 14,944,000 for the nine months ended December 31, 2020, a 57.5% improvement compared to a loss of HKD 35,155,000 in the same period of 2019[3] - Total comprehensive loss for the nine months ended December 31, 2020, was HKD 14,448,000, a 59.1% decrease from HKD 35,396,000 in the previous year[3] - Basic and diluted loss per share for the nine months ended December 31, 2020, was HKD 0.98, compared to HKD 2.61 for the same period in 2019[3] - The company recorded a loss attributable to owners of HKD 13,875,000 for the nine months ended December 31, 2020, an improvement compared to a loss of HKD 32,403,000 in the same period of 2019[19] - The group reported a reduction in loss attributable to owners from approximately HKD 32,403,000 to approximately HKD 13,875,000[43] Revenue Breakdown - The company reported total revenue of approximately HKD 44,143,000 for the nine months ended December 31, 2020, a significant increase from HKD 13,643,000 in the same period of 2019, representing a growth of 223%[8] - Revenue from security services amounted to HKD 42,545,000 for the nine months ended December 31, 2020, compared to HKD 11,742,000 in the same period of 2019, reflecting a growth of 263%[8] - Revenue from business consulting and asset management services was HKD 1,598,000 for the nine months ended December 31, 2020, down from HKD 1,901,000 in the same period of 2019, indicating a decline of 16%[8] - Revenue from security services in Hong Kong rose from approximately HKD 11,742,000 to approximately HKD 19,216,000, while revenue from security services in China was approximately HKD 23,329,000[36] Expenses and Costs - The company incurred administrative expenses of HKD 22,685,000 for the nine months ended December 31, 2020, down 37.1% from HKD 36,104,000 in the previous year[3] - Financial expenses for the nine months ended December 31, 2020, totaled HKD 2,193,000, an increase from HKD 1,912,000 in the same period of 2019[12] - The total cost of services increased from approximately HKD 11,261,000 to approximately HKD 39,305,000, representing 82.5% and 89.0% of total revenue respectively[38] Government Support - The company successfully applied for government subsidies under the "Employment Support Scheme," amounting to HKD 1,653,000, aimed at retaining employees during the pandemic[10] Shareholder Information - The company holds 922,325,321 shares, representing approximately 55.50% of the total issued shares[50] - The major shareholder, Changcheng Huiri Holdings Limited, is the beneficial owner of the 922,325,321 shares[50] - The ownership structure indicates that Changcheng Huiri Holdings Limited is fully owned by Nansha District Huiming Investment, which holds about 91.9992% of its shares[50] - The company has a controlled interest in Shenzhen Huiri No. 9 Investment Consulting Enterprise, which holds 99.0000% of its shares[50] - The beneficial ownership of shares includes 1,000,000 shares held by Mr. Song, representing 100.0000% of the controlled entity[47] - The company has a significant interest in Shenzhen Changcheng Huiri Investment Co., Ltd., with 3,828,902 shares representing 68.9039%[47] - The total number of shares held by Mr. Lin is 1,111, representing 0.0200% of the total[47] - The ownership structure reflects a high concentration of shares among a few major stakeholders, indicating potential influence over corporate decisions[50] Corporate Governance - The company has complied with the GEM Listing Rules Appendix 15 Corporate Governance Code, except for deviation from Code Provision A.2.1 regarding the separation of roles between the Chairman and the CEO[58] - The Audit Committee, consisting of independent non-executive directors, has reviewed the financial reporting process and internal control procedures, ensuring compliance with applicable accounting standards and GEM Listing Rules[59] - No directors or controlling shareholders have interests in any competing businesses as of December 31, 2020, which could lead to conflicts of interest[62] Future Plans and Market Position - The company aims to expand its security and property management business in mainland China, leveraging its operational and management advantages to achieve continuous revenue growth[25] - The asset management service segment is expected to become a significant profit growth point for the company, leveraging advantages in both mainland China and Hong Kong markets[35] - The company aims to expand its asset management services in mainland China while gradually entering the Hong Kong market[35] - The company plans to focus on controlling mergers and acquisitions and long-term investments in leading companies within niche markets[28] - The company anticipates a significant increase in the scale of managed assets within the next year[28] - The company aims to enter a high-quality development phase for its asset management business within the next one to two years[28] Stock Options and Dividends - The company did not declare an interim dividend for the nine months ended December 31, 2020, consistent with the previous year[20] - The total number of stock options outstanding as of December 31, 2020, was 138,218,179, with 135,658,584 options unexercised[55] - The total number of stock options exercised during the nine months was 2,559,595[52] - The company had a total of 14,130,708 stock options granted in 2019, with no options exercised during the nine months ended December 31, 2020[52] - The company did not purchase, sell, or redeem any of its listed securities during the nine months ended December 31, 2020, except for shares issued upon the exercise of stock options[55] Significant Events - The company has not disclosed any significant events that occurred after December 31, 2020, up to the date of the report[21] - There have been no significant events requiring disclosure from December 31, 2020, to the report date[63]

Financial Performance - For the six months ended September 30, 2020, the company reported revenue of HKD 29,955,000, a significant increase of 360% compared to HKD 6,511,000 for the same period in 2019[7] - The gross profit for the six months ended September 30, 2020, was HKD 3,828,000, representing a gross margin improvement from 12.8% in 2019 to 12.8% in 2020[7] - The company incurred a loss before tax of HKD 7,412,000 for the six months ended September 30, 2020, compared to a loss of HKD 27,645,000 for the same period in 2019, indicating a reduction in losses by approximately 73%[7] - The company reported a net loss attributable to owners of the company of HKD 6,649,000 for the six months ended September 30, 2020, down from HKD 25,419,000 in the same period of 2019, showing a 74% reduction in net losses[7] - The total comprehensive loss for the six months ended September 30, 2020, was HKD (25,039) thousand, which includes a loss of HKD (25,419) thousand and other comprehensive income of HKD 380 thousand[9] - The group reported a loss attributable to owners of approximately HKD 6,649,000 for the six months ended September 30, 2020, down from approximately HKD 25,419,000 for the same period in 2019[68] Assets and Liabilities - Total assets as of September 30, 2020, amounted to HKD 71,086,000, an increase from HKD 58,002,000 as of March 31, 2020[8] - The company reported total liabilities of HKD 64,848,000 as of September 30, 2020, compared to HKD 64,270,000 as of March 31, 2020, indicating a slight increase[24] - The company's total equity as of September 30, 2020, was HKD 6,238,000, recovering from a deficit of HKD 6,268,000 as of March 31, 2020[8] - The company’s total non-current assets as of September 30, 2020, were HKD 14,701,000, compared to HKD 14,827,000 as of March 31, 2020, showing a minor decrease[26] - The company’s accounts payable as of September 30, 2020, totaled HKD 12,946,000, with HKD 7,751,000 overdue by more than 90 days[13] Cash Flow and Liquidity - The company's cash and cash equivalents increased to HKD 27,626,000 as of September 30, 2020, compared to HKD 16,420,000 as of March 31, 2020, reflecting improved liquidity[8] - The net cash used in operating activities for the six months ended September 30, 2020, was HKD (7,364) thousand, an improvement from HKD (23,030) thousand in the same period of 2019[10] - The net cash generated from financing activities for the six months ended September 30, 2020, was HKD 18,662 thousand, compared to a net cash used of HKD (2,733) thousand in the prior year[10] - As of September 30, 2020, the cash and cash equivalents balance increased to HKD 27,626 thousand from HKD 17,739 thousand at the end of the previous year[10] Revenue Sources - For the six months ended September 30, 2020, the company reported total revenue of approximately HKD 29,955,000, with security services generating HKD 29,155,000 and asset management services contributing HKD 800,000[48] - Revenue from security services for the three months ended September 30, 2020, was HKD 11,076,000, compared to HKD 2,343,000 in 2019, reflecting a growth of 372%[28] - Revenue from security services in Hong Kong rose from approximately HKD 5,026,000 to approximately HKD 16,570,000, while revenue from security services in China was approximately HKD 12,585,000[62] Operational Focus and Strategy - The company has been focusing on expanding its service offerings, which contributed to the increase in revenue and reduction in losses[7] - The company plans to continue investing in new technologies and market expansion strategies to drive future growth[7] - The company continues to focus on its core business areas, including security services and asset management, with no significant new product launches reported during this period[12] - The company is focused on expanding its market presence in mainland China, capitalizing on the growing demand for security services driven by urbanization and increased safety awareness[50] - The company aims to enhance its asset management business in China and Hong Kong by the end of 2020[59] Capital Expenditures - Capital expenditure for the six months ended September 30, 2020, was HKD 6,618,000, a substantial increase from HKD 21,000 in the same period of 2019[19] - Capital expenditures for the six months ended September 30, 2020, were approximately HKD 6,618,000, compared to approximately HKD 21,000 for the same period in 2019[74] Employee and Governance - As of September 30, 2020, the company had 539 employees, a decrease from 586 employees as of March 31, 2020[79] - Employee benefits costs, including director remuneration, were approximately HKD 23,029,000 for the six months ended September 30, 2020, compared to HKD 22,581,000 for the same period in 2019, reflecting an increase of about 1.97%[79] - The company’s governance structure includes significant shareholdings by key executives, with Mr. Song holding 55.50% of the company's shares[82] - The company has complied with the corporate governance code as per GEM Listing Rules Appendix 15 during the six months ended September 30, 2020[97] Shareholder Information - Major shareholder Changcheng Huili Holdings Limited holds 922,325,321 shares, representing 55.50% of the total issued shares[87] - The shareholding structure indicates that Changcheng Huili Holdings is ultimately controlled by Mr. Song, with significant stakes held by related entities[87] Compliance and Internal Controls - The audit committee has reviewed the financial reporting process and internal control procedures for the six months ending September 30, 2020, ensuring compliance with applicable accounting standards and GEM listing rules[98] - There were no interests held by directors or controlling shareholders in any competing businesses as of September 30, 2020, which could lead to conflicts of interest[101]

Revenue and Profitability - Revenue for the three months ended June 30, 2020, was HKD 18,474,000, a significant increase from HKD 3,110,000 in the same period of 2019, representing a growth of 493%[3] - The cost of services provided was HKD 15,867,000, leading to a gross profit of HKD 2,607,000, compared to a gross loss of HKD 122,000 in the previous year[3] - The loss before tax for the period was HKD 4,288,000, an improvement from a loss of HKD 13,105,000 in the prior year[3] - The total comprehensive loss for the period was HKD 4,284,000, compared to HKD 12,890,000 in the same period last year, indicating a reduction of 67%[3] - Basic and diluted loss per share for the period was HKD 0.31, down from HKD 0.96 in the previous year[3] - Revenue from security services was HKD 18,079,000, a substantial increase from HKD 2,683,000 in the prior year[10] - Revenue from business consulting and asset management services was HKD 395,000, slightly down from HKD 427,000 in the previous year[10] - The company reported a foreign exchange gain of HKD 30,000 for the period, compared to a gain of HKD 215,000 in the previous year[3] - The company incurred a pre-tax loss of HKD 7,281,000 for the three months ended June 30, 2020, compared to HKD 11,764,000 for the same period in 2019[14] - The company recorded a basic and diluted loss per share of HKD 3,833,000 for the three months ended June 30, 2020, compared to HKD 11,878,000 for the same period in 2019[19] Expenses and Cost Management - Administrative expenses decreased to HKD 6,408,000 from HKD 12,527,000, reflecting a reduction of 48%[3] - The company’s employee benefits expenses for the three months ended June 30, 2020, amounted to HKD 7,254,000, compared to HKD 3,019,000 in 2019, indicating a significant increase in personnel costs[14] - The company’s financial expenses totaled HKD 618,000 for the three months ended June 30, 2020, a slight decrease from HKD 651,000 in 2019[12] Shareholder and Equity Information - The total equity attributable to the owners of the company decreased to HKD 16,619,000 from HKD 27,339,000 as of June 30, 2019[4] - The company aims to increase its registered capital from 20 million HKD to 40 million HKD by issuing an additional 2 billion shares[27] - The company holds 691,743,923 shares, representing 55.50% of the total issued shares[46] - The major shareholder, Changcheng Huiri Holdings Limited, is fully owned by Guangzhou Nansha District Huiming Investment Business Co., Ltd.[41] - Song Xiaoming is the ultimate controller of Changcheng Huiri Investment Co., Ltd., holding approximately 68.90% directly and 21.99% indirectly[41] - The company has a significant concentration of ownership, with major shareholders controlling 55.50% of the shares[46] - The beneficial ownership structure indicates a high level of control by a few entities, which may impact governance and decision-making[41] Market and Business Strategy - The mainland security services market has shown rapid growth, with the industry scale exceeding HKD 170 billion and an annual growth rate of over 10%[22] - The company aims to expand its market presence in mainland China, leveraging the growing demand for security services driven by urbanization and increased safety awareness[22] - The company plans to expand its security services in the Chinese market, targeting key sectors such as industrial parks and government departments[29] - The asset management business is expected to become a significant profit growth driver, leveraging the favorable macroeconomic environment and regulatory changes in China[30] Corporate Governance and Compliance - The audit committee, consisting of independent non-executive directors, reviewed the financial reporting process and internal control procedures for the three months ended June 30, 2020[56] - The company confirmed compliance with the corporate governance code as per GEM listing rules during the three-month period[55] - The company has adopted written guidelines regarding securities transactions by directors, confirming compliance with the relevant trading standards[53] Stock Options and Dividends - The company did not recommend any dividend for the three months ended June 30, 2020, consistent with the previous year[18] - As of June 30, 2020, there were no stock options granted, exercised, canceled, or expired during the three-month period[50] - The total number of stock options outstanding as of June 30, 2020, was 135,658,584, with an exercise price of HKD 0.2380 and HKD 0.0904[49] - The total number of stock options granted in previous periods remains unchanged, with significant amounts held by directors[48] - The company has not granted any stock options during the three months ended June 30, 2020[50] Rights Issue and Capital Increase - The company proposed a rights issue on August 5, 2020, offering one rights share for every three shares held at a subscription price of HKD 0.05 per rights share, aiming to raise at least approximately HKD 20,800,000 before expenses[62] - The company received an irrevocable commitment from its controlling shareholder to subscribe for a total of 230,581,307 rights shares[62] - The company's authorized share capital was increased to HKD 40,000,000, divided into 4,000,000,000 shares, following a resolution passed at a special general meeting on July 15, 2020[61] Other Disclosures - The company has not disclosed any new strategies or market expansions in the provided documents[45] - There are no mentions of new product developments or technological advancements in the current report[45] - The company has no provisions in its articles of association or under Cayman Islands law requiring it to offer new shares to existing shareholders on a pro-rata basis[57] - No significant acquisitions or disposals of subsidiaries or associates occurred during the three months ended June 30, 2020[59]

Financial Performance - For the fiscal year ending March 31, 2020, the company reported total revenue of approximately HKD 41,150,000, with security services contributing about HKD 38,851,000 and asset management services generating HKD 2,299,000[11]. - The company's total revenue increased by approximately HKD 4,248,000 or 11.5% from HKD 36,902,000 in 2019 to HKD 41,150,000 in 2020[27]. - Security services accounted for 94.4% of total revenue in 2020, while consulting and asset management services contributed 5.6%[27]. - The company recorded a gross profit of approximately HKD 9,099,000 in 2020, compared to a gross loss of HKD 1,425,000 in 2019, marking a significant turnaround[30]. - The loss attributable to the company's owners decreased by approximately HKD 46,365,000, from HKD 85,171,000 for the year ended March 31, 2019, to HKD 38,806,000 for the year ended March 31, 2020[39]. - The company recorded a loss of HKD 38,899,000 for the fiscal year ending March 31, 2020[101]. - As of March 31, 2020, the company's cash and cash equivalents were approximately HKD 16,420,000, a decrease of about HKD 27,989,000 from HKD 44,409,000 as of March 31, 2019[42]. - The company's capital debt ratio as of March 31, 2020, was (501.0)%, compared to 94.6% as of March 31, 2019, indicating a significant change in capital structure[44]. Business Development - The company has successfully obtained a private fund management license in mainland China and received approval from the Securities and Futures Commission in Hong Kong for regulated activities in asset management, aiming to significantly enhance the scale and profitability of its asset management business in the new fiscal year[9]. - The security business has resumed growth since the third quarter of the fiscal year, successfully entering the mainland market and acquiring a substantial number of new clients[8]. - The company is focused on expanding its business segments while continuing to develop its core security services, with a goal of becoming a well-known investment holding institution in the industry[9]. - The company aims to leverage its operational and management advantages to further develop its business and enhance its reputation in the security services sector[12]. - The company plans to leverage the acquisition of Zhongjun Weishi to further penetrate the mainland security market and connect with overseas markets[18]. - The asset management business is expected to grow significantly, leveraging the favorable economic policies and market conditions in mainland China and Hong Kong[26]. - The company aims to expand its security business in the Chinese market, focusing on key sectors such as industrial parks and government departments[25]. Strategic Initiatives - The company has implemented a series of strategic measures to enhance its operational scale and service areas in the security business, achieving significant results[8]. - The company is committed to improving its asset scale, reducing the asset-liability ratio, and increasing operating profit levels[9]. - The company is focused on long-term strategic development to overcome challenges and seize new growth opportunities in the market[7]. - The company has established a solid foundation for new profit growth by integrating resources following the acquisition of asset management licenses[16]. Governance and Compliance - The company has established a governance framework to set policies, formulate strategies, monitor performance, and manage risks[66]. - The board consists of a balanced mix of executive, non-executive, and independent non-executive directors to ensure effective independent judgment[61]. - The company has adhered to the corporate governance code as stipulated in the GEM listing rules throughout the reporting period[59]. - All independent non-executive directors confirmed their independence according to GEM listing rules, ensuring compliance with governance standards[65]. - The audit committee is responsible for reviewing the effectiveness of internal controls and risk management frameworks[95]. - The independent auditor has issued an unqualified opinion on the consolidated financial statements for the year ending March 31, 2020[200]. Employee and Operational Insights - The company has a total of 586 employees as of March 31, 2020, with 556 being full-time and part-time security personnel[29]. - The number of employees increased to 586 as of March 31, 2020, compared to 380 in the previous year, reflecting the company's growth and recruitment strategy[54]. - The company emphasizes training for both new and existing employees to enhance service quality and ensure compliance with local labor laws[55]. - The company has implemented a security patrol monitoring system to assist employees in delivering quality service[55]. Financial Management - Financial expenses increased by approximately HKD 151,000 or 6.6% to about HKD 2,445,000 for the year ended March 31, 2020, primarily due to increased interest on promissory notes[38]. - The company has taken measures to enhance its financial position, liquidity, and cash flow[104]. - The company is required to assess its ability to continue as a going concern due to significant uncertainties regarding its financial position[101]. - The company has prepared cash flow forecasts considering available financing options to evaluate its going concern capability[102]. Shareholder Relations - The company maintains effective communication channels with shareholders and encourages attendance at annual general meetings[116]. - The company has a history of considering shareholder expectations and industry norms when determining dividend payouts[125]. - The board has the discretion to declare dividends based on the company's ability to pay, considering factors such as cash flow, debt-to-equity ratio, and regulatory restrictions[125]. - The company did not recommend the payment of a final dividend for the year ended March 31, 2020, consistent with the previous year[56]. Stock Options and Incentives - The company adopted a stock option plan on July 31, 2014, which is valid for ten years, allowing the issuance of options to selected participants as a reward for their contributions[167]. - The total recognized expense for stock options during the year ended March 31, 2020, was approximately HKD 3,616,000[174]. - The board has the discretion to determine the terms and conditions for granting stock options to various stakeholders[167]. Market and Industry Trends - The security industry in mainland China has seen rapid growth, with a market size exceeding RMB 170 billion and an annual growth rate of over 10% as of 2018[13]. - The mainland security market is expected to expand significantly due to urbanization, infrastructure development, and increasing safety awareness among the population[13]. - Revenue from the security services business in China is anticipated to grow in the coming year[104].

Financial Performance - Revenue for the three months ended December 31, 2019, was HKD 7,132,000, a decrease of 5.4% compared to HKD 7,542,000 for the same period in 2018[4] - Gross profit for the nine months ended December 31, 2019, was HKD 2,382,000, compared to a loss of HKD 324,000 in the same period of 2018, indicating a significant improvement[4] - The company reported a loss before tax of HKD 7,510,000 for the three months ended December 31, 2019, compared to a loss of HKD 24,130,000 for the same period in 2018, reflecting a 68.9% reduction in losses[4] - Total comprehensive loss for the nine months ended December 31, 2019, was HKD 35,396,000, a decrease from HKD 47,768,000 in the same period of 2018, showing a 26.0% improvement[4] - Basic and diluted loss per share for the three months ended December 31, 2019, was HKD 0.56, compared to HKD 2.58 for the same period in 2018[4] - The company reported a pre-tax loss of HKD 30,975,000 for the nine months ended December 31, 2019, compared to HKD 45,455,000 in the same period of 2018, indicating a reduction in losses[13] - The company reported a loss attributable to shareholders of HKD 6,984,000 for the three months ended December 31, 2019, compared to a loss of HKD 21,123,000 for the same period in 2018, representing a 66.9% improvement[18] - For the nine months ended December 31, 2019, the loss attributable to shareholders was HKD 32,403,000, a decrease of 26.5% from HKD 44,103,000 in the same period of 2018[18] Revenue Breakdown - Revenue from security services for the nine months ended December 31, 2019, was HKD 11,742,000, a decrease of 62.3% compared to HKD 31,144,000 in the same period of 2018[9] - Revenue from business consulting and management services increased to HKD 1,901,000 for the nine months ended December 31, 2019, compared to HKD 257,000 in the same period of 2018, representing a significant growth[9] - Total revenue for the nine months ended December 31, 2019, was HKD 13,643,000, down 56.5% from HKD 31,401,000 in the same period of 2018[9] - Revenue from security services accounted for 86.1% of total revenue, while business consulting and management services contributed 13.9%[39] Cost Management - Administrative expenses for the nine months ended December 31, 2019, were HKD 36,104,000, down from HKD 46,900,000 in the same period of 2018, representing a 22.9% reduction[4] - The cost of services provided was approximately HKD 11,261,000, accounting for 82.5% of total revenue, down from 101.0% in the previous year[42] - The company has implemented strategies to reduce administrative costs and improve operational efficiency[44] - Financial expenses for the nine months ended December 31, 2019, totaled HKD 1,912,000, an increase of 13.8% from HKD 1,679,000 in the same period of 2018[11] - Financial expenses increased by approximately HKD 233,000 or 13.9%, from HKD 1,679,000 for the nine months ended December 31, 2018, to HKD 1,912,000 for the same period in 2019, primarily due to increased interest on bills payable and lease liabilities[45] Equity and Shareholder Information - The company’s total equity as of December 31, 2019, was HKD 27,379,000, a decrease from HKD 60,750,000 as of December 31, 2018[5] - The company issued shares worth HKD 6,930,000 during the period, contributing to the changes in equity[5] - The company’s major shareholder, Mr. Song, holds approximately 55.50% of the issued shares, while other key executives hold smaller percentages ranging from 0.08% to 1.20%[48] - Great Wall Capital Holdings Limited holds 691,743,922 shares, representing 55.50% of the company's issued shares[52] - The ownership structure indicates a high concentration of shares among a few major shareholders, with Great Wall Capital and One Belt One Road Data collectively holding 73.50% of the company[52] Strategic Initiatives - The company plans to continue focusing on cost management and exploring new market opportunities to enhance future performance[4] - The company aims to expand its security services in mainland China, contributing approximately HKD 2,296,000 to the revenue in the last quarter[40] - The company has established a strong foundation for its business consulting and management services, having invested significantly in personnel, operations, and licensing[26] - The acquisition of a significant shareholder, 九次方大數據, is expected to enhance the company's ecosystem in asset management and financial big data services[32] Compliance and Governance - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO until August 6, 2019[60] - The audit committee, consisting of independent non-executive directors, reviewed the financial reporting process and internal controls for the nine months ended December 31, 2019[62] - The company has confirmed compliance with trading regulations by all directors for the nine months ended December 31, 2019[59] Other Notable Information - The company did not recommend the payment of an interim dividend for the nine months ended December 31, 2019, consistent with the previous year[19] - The company did not recognize any income tax expense for the nine months ended December 31, 2019, similar to the previous year[15] - The company has not disclosed any other individuals holding significant shares as of December 31, 2019[54] - No significant events requiring disclosure have occurred from December 31, 2019, to the report date[65]

Financial Performance - For the six months ended September 30, 2019, the company reported total revenue of HKD 6,511,000, a decrease of 72.7% compared to HKD 23,859,000 for the same period in 2018[7]. - The gross profit for the six months ended September 30, 2019, was HKD 836,000, compared to a gross loss of HKD 1,266,000 in the same period of 2018[7]. - The company incurred a loss before tax of HKD 27,645,000 for the six months ended September 30, 2019, which is a 19.5% increase from a loss of HKD 23,225,000 in the same period of 2018[7]. - Total comprehensive loss for the six months ended September 30, 2019, was HKD 27,232,000, compared to HKD 23,817,000 for the same period in 2018, reflecting a 14.4% increase[7]. - The company reported a basic and diluted loss per share of HKD 2.04 for the six months ended September 30, 2019, compared to HKD 2.85 for the same period in 2018[7]. - The total operating loss for the group was HKD 22,629,000 for the six months ended September 30, 2019, compared to a loss of HKD 15,495,000 in the same period of 2018, indicating an increase in losses of approximately 46.1%[19]. - The company’s loss attributable to owners increased by approximately HKD 2,439,000, from HKD 22,980,000 for the six months ended September 30, 2018, to HKD 25,419,000 for the six months ended September 30, 2019[77]. Cash Flow and Liquidity - The company's cash and cash equivalents decreased to HKD 17,739,000 as of September 30, 2019, down from HKD 44,409,000 as of March 31, 2019[8]. - The company reported a net cash outflow from operating activities of HKD 23,030,000 for the six months ended September 30, 2019, compared to HKD 17,781,000 for the same period in 2018, indicating a deterioration in cash flow from operations[10]. - The company’s cash and cash equivalents decreased by HKD 27,061,000 during the period, with an ending balance of HKD 17,739,000 compared to HKD 3,575,000 at the end of the same period last year[10]. - The company’s financing activities resulted in a net cash outflow of HKD 2,733,000, compared to a net inflow of HKD 5,521,000 in the same period last year[10]. - The company’s debt-to-equity ratio as of September 30, 2019, was 336.9%, significantly up from 94.6% as of March 31, 2019[81]. Assets and Liabilities - Non-current assets totaled HKD 11,371,000 as of September 30, 2019, compared to HKD 10,843,000 as of March 31, 2019, indicating a 4.9% increase[8]. - Current liabilities decreased to HKD 15,013,000 as of September 30, 2019, from HKD 36,048,000 as of March 31, 2019, showing a significant reduction of 58.3%[8]. - The company's equity attributable to owners decreased to HKD 5,916,000 as of September 30, 2019, from HKD 27,339,000 as of March 31, 2019, a decline of 78.4%[8]. - The group's total assets as of September 30, 2019, amounted to HKD 45,653,000, with total liabilities of HKD 39,315,000, resulting in a net asset position[21][22]. Revenue Breakdown - Total revenue from external customers for the six months ended September 30, 2019, was HKD 6,511,000, a decrease from HKD 23,859,000 in the same period of 2018, representing a decline of approximately 72.7%[27]. - For the six months ended September 30, 2019, the total revenue from security guard services was HKD 2,343,000, a decrease of 76.8% compared to HKD 10,090,000 for the same period in 2018[30]. - The revenue from fixed security services dropped to HKD 2,890,000, accounting for 44.4% of total revenue, compared to HKD 17,743,000 or 74.4% in the previous year[71]. - Significant contributions to total revenue came from four major clients, generating approximately HKD 4,384,000 in revenue for the six months ended September 30, 2019, compared to HKD 3,333,000 from one client in the same period of 2018[28]. Expenses - Administrative expenses increased by approximately 25.7% to HKD 27,482,000 from HKD 21,861,000, primarily due to increased employee costs related to business consulting and management services[75]. - Financial expenses rose by approximately 20.2% to HKD 1,281,000 from HKD 1,066,000, mainly due to increased interest on bills payable and lease liabilities[76]. - The group reported a total depreciation expense of HKD 1,807,000 for the six months ended September 30, 2019, compared to HKD 1,227,000 in the same period of 2018, reflecting an increase of approximately 47.2%[19]. Shareholder Information - The total number of issued shares as of September 30, 2019, was 1,243,662,655, with a total capital of HKD 12,437,000[48]. - The company’s major shareholders include Guangzhou Nansha District Huiming Investment Business Limited, which also holds 691,743,922 shares (55.62%) and short positions of 223,859,278 shares (18.00%) [97]. - The company has a significant ownership structure, with Song Xiaoming ultimately controlling approximately 70.94% of the shares through various entities[95]. - The company confirmed an expense of approximately HKD 3,616,000 related to stock options during the six months ended September 30, 2019[108]. Corporate Governance - The company has adopted written guidelines for securities trading by directors, confirming compliance with the GEM Listing Rules as of September 30, 2019[112]. - The company has maintained compliance with the corporate governance code as per GEM Listing Rules Appendix 15 for the six months ending September 30, 2019[113]. - The audit committee, consisting of independent non-executive directors, has reviewed the financial reporting process and internal control procedures for the six months ending September 30, 2019[114]. - There were no interests held by directors or controlling shareholders in any competing businesses as of September 30, 2019[116]. Business Strategy and Development - The company has initiated a new business in consulting and management services, focusing on providing advisory services in investment and financing to domestic enterprises[90]. - The company plans to expand its business by securing more fixed security contracts to provide stable income sources[69]. - The group aims to leverage its experience in fund operations and corporate management to diversify its business into the financial services sector[61]. - The company is focused on enhancing the professional capabilities of its business teams to adapt to investment strategies and regulatory policies[91].

Financial Performance - Revenue for the three months ended June 30, 2019, was HKD 3,110,000, a decrease of 77.5% compared to HKD 13,769,000 for the same period in 2018[3] - Cost of services provided was HKD 3,232,000, down from HKD 15,353,000, resulting in a gross loss of HKD 122,000[3] - Administrative expenses increased to HKD 12,527,000 from HKD 10,316,000, reflecting a rise of 21.5%[3] - The loss before tax for the period was HKD 13,105,000, compared to a loss of HKD 11,928,000 in the previous year, indicating a 9.8% increase in losses[3] - Total comprehensive loss for the period was HKD 12,890,000, slightly higher than HKD 12,333,000 in the same period last year[3] - Basic and diluted loss per share was HKD 0.96, an improvement from HKD 1.48 in the previous year[3] - The company reported a loss attributable to owners of the company of HKD 11,878,000 for the three months ended June 30, 2019, compared to a loss of HKD 11,772,000 in the same period of 2018[17] Revenue Breakdown - Revenue from security services for the three months ended June 30, 2019, was HKD 2,683,000, a decrease of 80.5% compared to HKD 13,769,000 in the same period of 2018[9] - Revenue from business consulting and management services was HKD 427,000 for the three months ended June 30, 2019, compared to no revenue in the same period of 2018[9] - Total revenue for the three months ended June 30, 2019, was HKD 3,110,000, down 77.5% from HKD 13,769,000 in the same period of 2018[9] - Revenue from fixed security services was HKD 1,796,000, accounting for 57.8% of total revenue, down from 81.0% in the previous year[34] Operational Developments - The company continues to focus on providing security services and business consulting, with no new products or technologies reported in this quarter[6] - There were no significant market expansions or acquisitions mentioned during the reporting period[6] - The group established two wholly-owned subsidiaries to expand into financial big data services and asset management, utilizing emerging technologies like big data and AI[27] - The group plans to pursue more fixed security contracts to provide stable income sources amid increasing competition in the labor market[31] - The group has expanded its asset management team to over 80 professionals, enhancing its capabilities in asset management and financial consulting[32] - The company has established a new operational platform in mainland China, aiming to expand its security services based on its experience in Hong Kong[22] Shareholder and Equity Information - The total equity as of June 30, 2019, was HKD 16,619,000, down from HKD 50,711,000 at the end of the previous year[4] - A major shareholder sold 223,859,278 shares for a total consideration of HKD 89,543,711.20, representing approximately 18.00% of the company's issued share capital[28] - Major shareholder Changcheng Holdings Limited holds 691,743,922 shares (55.62% of total issued shares) and has short positions of 223,859,278 shares (18.00%)[48] - The beneficial owner of 223,859,278 shares is the Belt and Road Data Industry Development Limited, which is wholly owned by Beijing Jiulianhuan Information Service Limited[50] Cost Management - The company incurred finance costs of HKD 651,000 for the three months ended June 30, 2019, an increase of 41.3% from HKD 461,000 in the same period of 2018[11] - The cost of services for the three months ended June 30, 2019, was approximately HKD 3,232,000, accounting for about 103.9% of the group's revenue, down from approximately HKD 15,353,000 or 111.5% in the same period of 2018[36] - The gross loss decreased from approximately HKD 1,584,000 to approximately HKD 122,000, primarily due to improved cost control measures[38] - Administrative expenses increased by approximately HKD 2,211,000 or 21.4%, from approximately HKD 10,316,000 to approximately HKD 12,527,000, mainly due to increased employee costs related to business consulting and management services[39] - Financial expenses rose by approximately HKD 190,000 or 41.2%, from HKD 461,000 to HKD 651,000, primarily due to increased interest on bills payable and lease liabilities[40] - The company reported a significant reduction in service costs due to more effective employee allocation and planning during the period[38] Corporate Governance and Compliance - The board of directors did not recommend the payment of dividends for the three months ended June 30, 2019[16] - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO, which was addressed on August 6, 2019[59] - The audit committee has reviewed the financial reporting process and internal control procedures for the three months ended June 30, 2019[60] - No purchases, sales, or redemptions of the company's listed securities occurred during the three months ended June 30, 2019[55] - There were no significant acquisitions or disposals of subsidiaries or associates during the three months ended June 30, 2019[63] - The company has no interests in competing businesses as of June 30, 2019[62] - There were no significant events requiring disclosure after June 30, 2019, until the report date[65] Stock Options and Employee Incentives - The stock option plan shows that as of June 30, 2019, a total of 4,227,632 options were granted to Ms. Pang Xiaoli at an exercise price of HKD 0.0904[51] - Mr. Li Mingming and Mr. Han Haichuan each hold 9,156,186 options at an exercise price of HKD 0.2380, expiring on December 13, 2028[51] - Ms. Guan Yan holds 915,618 options at an exercise price of HKD 0.2380, with an additional 84,382 options at HKD 0.0904[51] - The company’s stock options are set to expire between 2028 and 2029, indicating a long-term incentive structure for key personnel[51] - The company’s stock option plan reflects ongoing efforts to align employee interests with shareholder value through equity compensation[51] - As of June 30, 2019, the total number of stock options granted was 73,880,947, with 48,527,784 options remaining unexercised[52] - No stock options were granted, exercised, canceled, or expired during the three months ended June 30, 2019[54]

2018/19 年 報 GREATWALLE INC. 長城匯理公 司 (前稱 King Force Group Holdings Limited 冠輝集團控股有限公司) (於開曼群島註冊成立的有限公司) 股份代號 : 8315 2018/19 Annual Report GREATWALLE INC. 長城匯理公 司 (formerly known as King Force Group Holdings Limited 冠輝集團控股有限公司) (Incorporated in the Cayman Islands with limited liability) Stock Code: 8315 GREATWALLE INC. 長城匯理公司 Annual Report 2018/19 年 報 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在主板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 ...

Financial Performance - Revenue for the three months ended December 31, 2018, was HKD 7,542,000, a decrease of 73% compared to HKD 28,151,000 for the same period in 2017[3] - Gross profit for the nine months ended December 31, 2018, was a loss of HKD 324,000, compared to a profit of HKD 12,464,000 for the same period in 2017[3] - The company reported a loss before tax of HKD 24,130,000 for the three months ended December 31, 2018, compared to a loss of HKD 3,281,000 for the same period in 2017, representing a significant increase in losses[3] - Total comprehensive loss for the nine months ended December 31, 2018, was HKD 47,768,000, compared to a loss of HKD 19,144,000 for the same period in 2017[3] - Basic and diluted loss per share for the nine months ended December 31, 2018, was HKD 5.47, compared to HKD 2.45 for the same period in 2017[3] - The company incurred a loss of HKD 44,103,000 for the nine months ended December 31, 2018, compared to a loss of HKD 18,848,000 for the same period in 2017[4] - For the three months ended December 31, 2018, the company reported a loss attributable to owners of the company of HKD 21,123,000, compared to a loss of HKD 2,793,000 for the same period in 2017, representing an increase of 655%[36] - For the nine months ended December 31, 2018, the loss attributable to owners of the company was HKD 44,103,000, compared to a loss of HKD 18,848,000 in 2017, indicating an increase of 134%[36] Revenue Breakdown - Total revenue for the nine months ended December 31, 2018, was HKD 31,401,000, down from HKD 89,688,000 in the same period of 2017, representing a decline of 65%[31] - Revenue from business consulting and management services for the nine months ended December 31, 2018, was HKD 257,000, with no prior year comparison available[31] - For the three months ended December 31, 2018, revenue from security services was HKD 7,285,000, a decrease of 74% compared to HKD 28,151,000 in the same period of 2017[31] - The revenue from fixed security services accounted for 70.9% of total revenue in 2018, down from 84.6% in 2017, indicating a significant decline in contract numbers by approximately 58.1%[67] Expenses and Costs - Administrative expenses for the three months ended December 31, 2018, were HKD 25,039,000, significantly higher than HKD 9,868,000 for the same period in 2017[3] - The total cost of services provided for the nine months ended December 31, 2018, was HKD 31,725,000, down from HKD 77,224,000 in 2017, reflecting a decrease of 59%[6] - Financial expenses for the three months ended December 31, 2018, amounted to HKD 613,000, an increase of 149% from HKD 246,000 in the same period of 2017[32] - Interest expense on promissory notes for the nine months ended December 31, 2018, was HKD 1,661,000, compared to HKD 735,000 in the same period of 2017, reflecting a rise of 126%[32] - Administrative expenses increased by approximately HKD 13,166,000 or 39.0% to HKD 46,900,000 for the nine months ended December 31, 2018, primarily due to underperformance in the electronic education segment and increased legal and professional fees related to a mandatory conditional cash offer[71] - Financial expenses rose by approximately HKD 944,000 or 128.4% to HKD 1,679,000 for the nine months ended December 31, 2018, mainly due to increased interest on accrued promissory notes[72] Equity and Share Capital - The company’s total equity as of December 31, 2018, was HKD 27,379,000, a decrease from HKD 60,750,000 as of April 1, 2018[4] - The company’s total issued share capital at the end of the reporting period was HKD 20,000,000, with 2,000,000,000 ordinary shares at a par value of HKD 0.01 each[39] - The weighted average number of ordinary shares used for calculating basic and diluted loss per share was 806,444,000 for the nine months ended December 31, 2018, compared to 770,332,000 in 2017, an increase of 5%[36] - Major shareholder Changcheng Holdings Limited holds 461,162,615 shares, representing 56.18% of the company's issued shares[82] Acquisitions and Investments - The company completed the acquisition of China Beidou Communication Technology Group Co., Ltd. for HKD 51,170,000, with a profit guarantee of at least HKD 18,000,000 for the fiscal years ending December 31, 2017, and December 31, 2018[40] - The identifiable assets and liabilities acquired from the acquisition of China Beidou on December 16, 2016, had a provisional fair value of HKD 12,298,000 after accounting for various assets and liabilities[42] - The total purchase price for the acquisition was HKD 48,553,000, which included goodwill of HKD 36,255,000 generated from the acquisition[42] - The potential contingent consideration related to the acquisition ranges from HKD 0 to 51,170,000, based on performance guarantees over a two-year period[42] Legal and Compliance - The company has established an audit committee to review and supervise the financial reporting process and internal control procedures, with members including independent non-executive directors[92] - The company has adopted written guidelines for securities trading by directors, confirming compliance with trading regulations for the nine months ending December 31, 2018[88] - The company has two pending legal cases related to occupational injuries and diseases as of December 31, 2018, with risks covered by appropriate insurance[44] Business Operations and Strategy - The main business activities include providing security services, mobile gaming, and business consulting and management services[6] - The group aims to diversify its business into financial services through a consulting agreement with Shenzhen Changcheng Huiri Asset Management Co., Ltd.[58] - The company plans to expand its business by securing more fixed security contracts to provide stable income sources and improve profitability through enhanced service quality[64] - The company is exploring investment opportunities in the fund investment industry due to the experience of its new controlling shareholder in this sector[64] - The group is focusing on the development of an innovative application combining dynamic facial recognition technology, Beidou positioning, and the internet for educational security[57] Employee and Director Information - The company has a total of 496 employees as of December 31, 2018, with 449 being full-time and part-time security personnel[69] - Total director remuneration for the nine months ended December 31, 2018, was HKD 1,230,000, a decrease from HKD 1,499,000 in the same period of 2017[48] - The company incurred interest expenses of HKD 1,661,000 to a former director for the nine months ended December 31, 2018, compared to HKD 735,000 in the previous year[49] Stock Options and Dividends - The company granted 51,716,661 share options under its share option scheme, which allows participants to subscribe for new shares[63] - The stock option plan was adopted on July 31, 2014, and is valid for ten years, allowing the company to reward selected participants for their contributions[84] - The board did not recommend the payment of dividends for the nine months ending December 31, 2018, consistent with the previous year[87]