Financial Performance - For the nine months ended September 30, 2020, revenue was approximately HKD 40.9 million, compared to HKD 40.6 million for the same period in 2019, representing a slight increase of 0.74%[6] - The company reported a loss attributable to owners of approximately HKD 1.1 million for the nine months ended September 30, 2020, compared to a profit of HKD 12.7 million for the same period in 2019, indicating a significant decline[6] - Basic loss per share for the nine months ended September 30, 2020, was approximately HKD 0.14, down from a basic earnings per share of HKD 1.59 for the same period in 2019[6] - The net loss before tax for the nine months ended September 30, 2020, was HKD 1.13 million, compared to a profit before tax of HKD 14.71 million for the same period in 2019[8] - The company’s total comprehensive income for the nine months ended September 30, 2020, was a loss of HKD 1.13 million, compared to a total comprehensive income of HKD 12.71 million for the same period in 2019[8] - The company reported a total of HKD 1,273,000 in other income for the nine months ended September 30, 2020, compared to no other income reported in 2019[22] - The company recorded a loss of approximately HKD 1.1 million for the period, compared to a profit of approximately HKD 12.7 million in the same period last year[39] Revenue Breakdown - Total revenue for the period was approximately HKD 40.9 million, remaining stable compared to HKD 40.6 million in the same period last year[32] - Brokerage service commission revenue decreased to HKD 1,891,000 for the nine months ended September 30, 2020, down 27.7% from HKD 2,615,000 in 2019[19] - Underwriting and placing commission revenue remained stable at HKD 30,507,000 for the nine months ended September 30, 2020, compared to HKD 30,578,000 in 2019[19] - Asset management service revenue increased significantly to HKD 1,742,000 for the nine months ended September 30, 2020, up 80.4% from HKD 965,000 in 2019[19] - Interest income from securities and IPO financing rose to HKD 4,963,000 for the nine months ended September 30, 2020, compared to HKD 2,511,000 in 2019, marking a 97.4% increase[19] - The revenue from corporate finance advisory services decreased by approximately 55% to HKD 1.8 million, down from HKD 4.0 million in the same period last year[33] - Interest income from securities and IPO financing increased by approximately 100% to HKD 5.0 million, compared to HKD 2.5 million in the previous year, driven by a rebound in demand for guaranteed financing services[33] - Asset management service fees rose by approximately 70% to HKD 1.7 million, up from HKD 1.0 million in the same period last year[33] Expenses and Costs - Total administrative and other operating expenses for the nine months ended September 30, 2020, were HKD 42.96 million, an increase from HKD 26.03 million in the same period of 2019, reflecting a rise of 65.2%[8] - Commission expenses surged to HKD 23.8 million for the nine months ended September 30, 2020, compared to HKD 6.6 million in the previous year, marking an increase of approximately 260%[31] - The company experienced a significant increase in employee benefit expenses, totaling HKD 12.6 million for the nine months ended September 30, 2020, compared to HKD 12.3 million in the previous year[31] - Administrative and other operating expenses rose by approximately 65.4% to about HKD 43.0 million from approximately HKD 26.0 million in the same period last year, attributed to increased commission expenses for placement and underwriting services[37] - Financing costs surged by approximately 433.3% to about HKD 1.6 million from approximately HKD 0.3 million in the same period last year, primarily due to loans taken for the initial public offering[38] Dividends - The company declared an interim dividend of HKD 0.0025 per share for the third quarter, totaling HKD 2.0 million, which is the same as the dividend declared for the same period in 2019[6] - The company declared an interim dividend of HKD 2.0 million for the second quarter, down from HKD 4.0 million in the same period last year[27] - The company also announced an interim dividend of HKD 2.0 million for the third quarter, consistent with the second quarter's dividend, and a decrease from HKD 4.0 million in the same period last year[27] - The board declared an interim dividend of HKD 0.0025 per share for the three months ended September 30, 2020, totaling HKD 2.0 million, down from HKD 4.0 million in the same period last year[43] Shareholder Information - The major shareholder, Mr. Pan, holds approximately 66.59% of the company’s shares, totaling 532,685,000 shares[45] - The weighted average number of ordinary shares remained constant at 800 million shares for both the current and prior periods[29] Compliance and Governance - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual since May 2007[57] - The audit committee has reviewed the unaudited condensed consolidated financial statements for the period and found them compliant with applicable accounting standards[59] - No directors or major shareholders have any interests in businesses that directly or indirectly compete with the company as of September 30, 2020[52] - The company has confirmed compliance with the non-competition agreement during the specified period[53] - The company has not identified any violations of trading standards by directors during the reporting period[54] Other Information - The company is currently evaluating the impact of new and revised Hong Kong Financial Reporting Standards but has not determined any significant effects on its operational performance and financial position[16] - The financial statements were authorized for publication by the board on November 6, 2020[17] - No significant events affecting the group's business or financial performance were reported after September 30, 2020[42] - The company has not granted any share options under its share option scheme since its adoption on June 23, 2016[49] - There were no purchases, sales, or redemptions of the company's listed securities during the period[55] - The company will suspend share transfer registration from November 25 to November 27, 2020, to determine eligibility for the interim dividend[61] - The audit committee consists of independent non-executive directors, ensuring compliance with GEM listing rules regarding financial oversight[59]

Financial Performance - For the six months ended June 30, 2020, revenue was approximately HKD 35.8 million, compared to HKD 32.6 million for the same period in 2019, representing an increase of 6.5%[6] - The company reported a loss attributable to owners of approximately HKD 0.4 million for the six months ended June 30, 2020, compared to a profit of HKD 11.1 million for the same period in 2019[6] - Basic loss per share for the six months ended June 30, 2020, was approximately HKD 0.05, down from basic earnings of HKD 1.39 per share for the same period in 2019[6] - The total comprehensive income for the period was a loss of HKD (411) thousand, contrasting with a profit of HKD 11,141 thousand in the previous year[11] - The company reported a loss attributable to equity holders of HKD 1,490,000 for the three months ended June 30, 2020, compared to a profit of HKD 9,110,000 in 2019[33] - The company recorded a loss attributable to owners of approximately HKD 0.4 million for the period, compared to a profit of approximately HKD 11.1 million for the same period in 2019[59][68] Dividends - The board declared an interim dividend of HKD 0.005 per share for the first quarter, totaling HKD 4.0 million, consistent with the previous year[6] - The second quarter interim dividend was declared at HKD 0.0025 per share, totaling HKD 2.0 million, down from HKD 4.0 million in the same period last year[6] - The company declared an interim dividend of HKD 0.005 per share, totaling HKD 4,000,000 for the three months ended June 30, 2020, unchanged from the same period in 2019[31] - The company declared dividends of HKD (4,000) thousand during the period, consistent with the previous year[11] Assets and Liabilities - Total assets as of June 30, 2020, were HKD 254.8 million, a decrease from HKD 264.0 million as of December 31, 2019[10] - Current liabilities decreased to HKD 75.7 million as of June 30, 2020, from HKD 79.5 million as of December 31, 2019[10] - The company's net asset value as of June 30, 2020, was HKD 179.1 million, down from HKD 183.5 million as of December 31, 2019[10] - The total equity attributable to owners decreased to HKD 179,133 thousand as of June 30, 2020, from HKD 190,672 thousand at the end of June 2019[11] - The group's net current assets were approximately HKD 173.1 million as of June 30, 2020, compared to HKD 176.9 million as of December 31, 2019, with a current ratio of approximately 3.3 times, up from 3.2 times[74] - The total cash and bank balances amounted to approximately HKD 127.9 million as of June 30, 2020, down from HKD 209.7 million as of December 31, 2019[74] - The group had no debt as of June 30, 2020, maintaining a debt-to-asset ratio that is not applicable[74] Cash Flow - For the six months ended June 30, 2020, the company reported a net cash outflow from operating activities of HKD (73,659) thousand, compared to a net inflow of HKD 15,489 thousand for the same period in 2019[13] - The company’s cash and cash equivalents decreased by HKD 81,107 thousand, ending the period at HKD 62,197 thousand, down from HKD 145,778 thousand at the end of June 2019[13] - The company’s initial cash balance was HKD 143,304 thousand, compared to HKD 134,994 thousand at the beginning of the previous year[13] - The company’s investment activities resulted in a cash outflow of HKD (2,009) thousand, compared to HKD (226) thousand in the prior year[13] - The financing activities led to a cash outflow of HKD (5,439) thousand, slightly higher than HKD (4,479) thousand in the same period last year[13] Revenue Breakdown - Total revenue for the three months ended June 30, 2020, was HKD 26,869,000, an increase of 9.3% compared to HKD 24,576,000 for the same period in 2019[23] - Total revenue for the six months ended June 30, 2020, was HKD 35,847,000, up 10.4% from HKD 32,583,000 in the same period of 2019[23] - Brokerage service commission revenue decreased to HKD 784,000 for the three months ended June 30, 2020, down 36.3% from HKD 1,231,000 in 2019[23] - Underwriting and placement commission revenue increased to HKD 23,746,000 for the three months ended June 30, 2020, up 16.5% from HKD 20,437,000 in 2019[23] - Corporate finance advisory service fees dropped to HKD 565,000 for the three months ended June 30, 2020, a decline of 66.1% from HKD 1,660,000 in 2019[23] - Interest income from securities and IPO financing was HKD 1,456,000 for the three months ended June 30, 2020, an increase of 58% compared to HKD 922,000 in 2019[23] Operational Insights - The company has identified only one operating segment, which includes brokerage services, underwriting services, corporate finance advisory services, financing services, and asset management services[22] - The company completed seven placements and underwriting appointments during the period, compared to six in the same period last year[61] - The company maintained stable asset management service fees at approximately HKD 0.6 million for both periods[62] - The company has established a credit period of 7 days for corporate finance advisory services and 30 days for asset management services[37] Employee and Governance - The group employed 26 staff members as of June 30, 2020, with total employee costs amounting to approximately HKD 8.4 million during the period[71] - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which have not been distinguished since May 2007[97] - The board consists of 5 members, including 2 executive directors and 3 independent non-executive directors[99] - The audit committee has reviewed the group's unaudited financial statements for the period and found them compliant with applicable accounting standards[102] Market Conditions - The company continues to face market volatility risks due to its listing on the GEM, which is designed for small to medium-sized enterprises[2] - The International Monetary Fund (IMF) projected a global economic growth rate of -4.9% for 2020, indicating a slower recovery than previously anticipated due to the ongoing impact of the COVID-19 pandemic[70] Miscellaneous - The company has not adopted any new accounting standards that would significantly impact its financial performance or position[19] - The group had no significant investments or acquisitions during the period[77][78] - There were no capital commitments or contingent liabilities as of June 30, 2020[80][81] - The group faced minimal foreign exchange risk as its revenue and business costs were primarily denominated in HKD[76] - The company has not disclosed any interests in businesses that may compete directly or indirectly with its operations as of June 30, 2020[91] - The company has not encountered any circumstances that would trigger disclosure obligations under GEM Listing Rules as of June 30, 2020[98]

Financial Performance - Revenue for the three months ended March 31, 2020, was approximately HKD 9.0 million, compared to HKD 8.0 million for the same period in 2019, representing a growth of 12.5%[7] - Profit attributable to owners for the three months ended March 31, 2020, was approximately HKD 1.1 million, down from HKD 2.0 million in the same period in 2019, a decrease of 45.3%[7] - Basic earnings per share for the three months ended March 31, 2020, was approximately HKD 0.13, compared to HKD 0.25 for the same period in 2019, a decline of 48.0%[7] - Total comprehensive income attributable to owners for the three months ended March 31, 2020, was HKD 1.1 million, down from HKD 2.0 million in the same period in 2019, a decrease of 46.9%[8] - The group reported a pre-tax profit of HKD 1.2 million for the three months ended March 31, 2020, compared to HKD 2.2 million for the same period in 2019, a decrease of 47.3%[8] - The company's pre-tax profit decreased from HKD 2.031 million in the same period last year to HKD 1.079 million, a decline of approximately 45%[31] - The company recorded a profit of approximately HKD 1.1 million for the period, down from approximately HKD 2.0 million in the same period last year[39] Revenue Breakdown - Brokerage service commission revenue was HKD 447 thousand, down from HKD 612 thousand in the previous year[20] - Underwriting and placement commission revenue increased to HKD 6.654 million from HKD 4.206 million year-over-year[20] - Corporate finance advisory service fees dropped to HKD 450 thousand from HKD 2.170 million in the previous year[20] - Interest income from securities and IPO financing rose to HKD 1.099 million from HKD 704 thousand year-over-year[20] - Revenue from placement and underwriting services significantly increased by approximately 59.5% to about HKD 6.7 million from approximately HKD 4.2 million, attributed to an increase in completed placements and underwriting appointments from three to five[32] - Corporate finance advisory fees decreased by approximately 77.3% to about HKD 0.5 million from approximately HKD 2.2 million, due to a reduction in the number of advisory appointments from five to two[32] - Interest income from securities and IPO financing increased by approximately 57.1% to about HKD 1.1 million from approximately HKD 0.7 million, driven by a rebound in demand for guaranteed financing services[32] - Other income rose by approximately 391.5% to about HKD 639,000 from approximately HKD 130,000, mainly due to increased bank interest income and processing fees from clients[35] Expenses - Administrative and other operating expenses increased to HKD 8.3 million for the three months ended March 31, 2020, from HKD 5.9 million in the same period in 2019, an increase of 40.5%[8] - Total administrative and operating expenses increased, contributing to the decline in profit despite revenue growth[31] - Administrative and other operating expenses increased by approximately 40.7% to about HKD 8.3 million from approximately HKD 5.9 million, primarily due to higher employee benefits and commission expenses[37] - Financing costs surged by approximately 1,436.4% to about HKD 169,000 from approximately HKD 11,000, mainly due to a loan taken for an IPO[38] Dividends - The board declared an interim dividend of HKD 0.005 per share, totaling HKD 4,000,000, which was not recognized as a liability as of March 31, 2020[7] - The company declared an interim dividend of HKD 0.005 per share, totaling HKD 4 million, consistent with the previous year[27] - The board declared an interim dividend of HKD 0.005 per share for the three months ended March 31, 2020[62] Shareholder Information - As of March 31, 2020, the major shareholder, Ms. Liao Mingli, holds 532,685,000 shares, representing 66.59% of the total issued shares of 800,000,000[48] - The weighted average number of ordinary shares for basic earnings per share remained at 800 million shares[29] Compliance and Governance - The financial report was prepared in accordance with the Hong Kong Financial Reporting Standards, ensuring compliance with applicable disclosure requirements[14] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated results for the period and confirmed compliance with applicable accounting policies and GEM listing rules[61] - The company has adhered to the corporate governance code, with the exception of the separation of roles between the chairman and CEO, which has not been implemented since May 2007[58] - The company has confirmed compliance with the non-competition agreement from January 1, 2020, to March 31, 2020[53] - The company has not identified any individuals or corporations with interests in its shares that require disclosure under the Securities and Futures Ordinance as of March 31, 2020[48] Stock Options and Securities - The company has not granted any stock options under its stock option plan since its adoption on June 23, 2016, until March 31, 2020[50] - The company has not issued any arrangements for directors or senior management to acquire shares or debt securities during the reporting period[51] - There were no acquisitions, sales, or repurchases of the company's listed securities during the reporting period[56] - No directors or major shareholders have interests in any business that competes directly or indirectly with the company as of March 31, 2020[52]

Financial Performance - Total revenue for Astrum Financial Holdings Limited decreased by approximately 9.2% to about HKD 454 million in 2019, primarily due to a significant drop in brokerage service commissions and corporate finance advisory income[9]. - Net profit fell by approximately 46.7% to about HKD 12 million in 2019, reflecting the challenging market conditions[9]. - Total revenue for the year was approximately HKD 45.4 million, a decrease of about 9.2% compared to HKD 50.0 million in the previous year[23]. - Commission income from brokerage services significantly dropped by approximately 48.6% to HKD 3.7 million, attributed to a relatively poor investment atmosphere in the local stock market[23]. - Corporate finance advisory fees decreased by approximately 54.6% to HKD 4.9 million, with the number of advisory appointments dropping from 23 to 13[23]. - Net profit for the year decreased by approximately 46.7% to HKD 12.0 million, down from HKD 22.5 million in the previous year[29]. - The company reported a profit before tax of HKD 14,143,000, down 47.3% from HKD 26,785,000 in the previous year[195]. - Net profit for the year was HKD 12,012,000, a decline of 46.6% compared to HKD 22,485,000 in 2018[195]. - Basic and diluted earnings per share decreased to HKD 1.50 from HKD 2.81, representing a drop of 46.5%[195]. Market Conditions - The average daily turnover in the Hong Kong securities market decreased by 18.8% to HKD 87.2 billion in 2019[12]. - The number of new listed companies in Hong Kong decreased by 16.1% to 183, while the total funds raised increased by 9.1% to HKD 314.2 billion[12]. - The Hang Seng Index fluctuated between 25,000 and 30,200 points during 2019, closing at 28,190 points, a 9.1% increase from the previous year[12]. - Following the outbreak of COVID-19 in early 2020, the board anticipated a negative impact on the group's business, with the Hang Seng Index dropping approximately 19.1% from December 31, 2019, to the report date[51]. Business Strategy - The company plans to focus on placement and underwriting services as well as corporate finance advisory services in response to the current economic conditions[10]. - The management remains cautiously optimistic about future business development and overall performance despite the ongoing challenges[10]. - The company aims to explore new business ventures and maximize shareholder returns in a challenging environment[10]. - The company plans to regularly review and adjust its business strategies to seek sustainable income and balanced growth amid economic uncertainties[30]. Financial Position - As of December 31, 2019, the total assets of the group were approximately HKD 264.0 million, an increase from approximately HKD 226.6 million in 2018, primarily due to an increase in trust bank balances by approximately HKD 30.8 million[35]. - The net asset value of the group was approximately HKD 176.9 million as of December 31, 2019, compared to approximately HKD 168.8 million in 2018, with a current ratio of approximately 3.2 times, down from approximately 4.9 times in 2018[42]. - The total equity attributable to owners of the company was approximately HKD 183.5 million, unchanged from 2018, after accounting for a profit and total comprehensive income contribution of approximately HKD 12 million offset by interim dividends of HKD 12 million paid during the year[35]. - The group's total liabilities as of December 31, 2019, were approximately HKD 62.1 million, related to underwriting agreements with independent third parties, with a sub-underwriting commitment of approximately HKD 12.3 million[43]. - The group's cash and bank balances totaled approximately HKD 209.7 million, an increase from approximately HKD 170.6 million in 2018, driven by increases in trust account bank balances and general account bank balances[42]. Corporate Governance - The company reported a commitment to high levels of corporate governance, adhering to the GEM Listing Rules Appendix 15, with a focus on accountability and transparency[63]. - The board consists of 5 members, including 2 executive directors and 3 independent non-executive directors, ensuring diverse expertise for effective oversight[66]. - The company has been compliant with the corporate governance code throughout the reporting year, except for a specific provision[64]. - The company emphasizes the importance of robust internal controls and effective governance practices to drive accountability[63]. - The company has established three board committees: the Remuneration Committee, the Nomination Committee, and the Audit Committee to oversee specific aspects of its affairs[75]. - The company has engaged ACCE Consulting Group Limited to review its internal control system, which did not identify any significant deficiencies during the review period[92]. Risk Management - The group maintained a strong focus on risk management, particularly regarding credit risk and liquidity risk, to mitigate potential adverse impacts on financial performance[46][49]. - The board is responsible for evaluating the risks associated with achieving strategic objectives and ensuring effective risk management and internal control systems are in place[91]. Shareholder Information - The company has not established a predetermined dividend payout ratio, and any dividend declaration is subject to board approval based on various factors including financial performance and capital requirements[90]. - The company declared a first-quarter dividend of HKD 0.005 per share, totaling HKD 4.0 million, consistent with the previous year[107]. - The second-quarter dividend was also HKD 0.005 per share, amounting to HKD 4.0 million, unchanged from the prior year[108]. - The third-quarter dividend remained at HKD 0.005 per share, with a total of HKD 4.0 million, similar to the previous year[109]. - The company's distributable reserves as of December 31, 2019, were approximately HKD 80.4 million, unchanged from the previous year[117]. Related Party Transactions - The group conducted ongoing connected transactions that required reporting and independent shareholder approval, including financing service agreements[150]. - The independent non-executive directors confirmed that the related transactions were conducted in the ordinary course of business and on normal commercial terms[162]. Audit and Compliance - The independent auditor has issued an unqualified opinion on the group's consolidated financial statements for the year ended December 31, 2019[177]. - The audit opinion is based on the compliance with the Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance, ensuring the preparation of true and fair consolidated financial statements[185]. - Key audit matters include the impairment of trade receivables from margin clients in the securities trading business, which is assessed based on expected credit loss models[181]. - The audit report indicates that there are no significant uncertainties regarding the company's ability to continue as a going concern[190].

Astrum Financial Holdings Limited 阿仕特朗金融控股有限公司 由於GEM上市公司普遍為中小型公司，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的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表 示，概不對因本報告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 本報告包括的資料乃遵照GEM證券上市規則（「GEM上市規則」）的規定而提供有關阿仕特朗金融控股有限公司（「本公 司」）的資料。本公司董事（「董事」）願就本報告共同及個別承擔全部責任。董事在作出一切合理查詢後確認，就彼等 所知及所信，本報告所載的資料在各重大方面均屬準確完整，且無誤導或欺騙成份，及本報告並無遺漏其他事實致 使本報告所載任何陳述或本報告產生誤導。 本報告將於聯交所網站(www.hkexnews.hk)之「最新上市公司公告」（由刊發日期起計最少保存七天）及本公司之網站 (www.astrum-capital.com)內刊發。 1 第三季度報告 2019 • 阿仕特朗 ...

Financial Performance - For the six months ended June 30, 2019, revenue was approximately HKD 32.6 million, compared to HKD 13.0 million for the same period in 2018, representing a growth of 150%[5] - The profit attributable to owners of the company for the six months ended June 30, 2019, was approximately HKD 11.1 million, a significant increase from HKD 34,000 in the same period of 2018[5] - Basic earnings per share for the six months ended June 30, 2019, were approximately HKD 1.39, compared to HKD 0.004 for the same period in 2018[5] - The company reported a significant increase in pre-tax profit to HKD 12.8 million for the six months ended June 30, 2019, compared to HKD 0.134 million for the same period in 2018[7] - The total comprehensive income for the period was HKD 11,141,000, an increase from HKD 34,000 in the previous year[10] - The company reported a significant increase in retained earnings, reaching HKD 67,092,000 as of June 30, 2019, compared to HKD 45,500,000 in the previous year[10] - The income from placement and underwriting services increased by approximately 423.4% to about HKD 24.6 million, driven by the completion of six placement and underwriting transactions during the period[59] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.005 per share for both the first and second quarters, totaling HKD 4.0 million each quarter, consistent with the previous year[5] - The company declared dividends of HKD 4,000,000 during the period, consistent with the previous year[10] - The company declared an interim dividend of HKD 0.005 per share for the three months ending June 30, 2019[104] Assets and Liabilities - As of June 30, 2019, total assets amounted to HKD 252.9 million, an increase from HKD 226.6 million as of December 31, 2018[9] - The company's cash and bank balances increased to HKD 145.9 million from HKD 135.1 million year-over-year[9] - Total liabilities increased to HKD 59.9 million from HKD 43.1 million year-over-year, primarily due to an increase in trade payables[9] - The company's net asset value as of June 30, 2019, was HKD 190.7 million, up from HKD 183.5 million at the end of 2018[9] - The total equity attributable to owners of the company as of June 30, 2019, was HKD 190,672,000, compared to HKD 169,080,000 at the end of June 2018, reflecting a growth of approximately 12.8%[10] - The group's total assets as of June 30, 2019, were approximately HKD 252.9 million, an increase from HKD 226.6 million as of December 31, 2018, primarily due to an increase in bank balances and cash of about HKD 24.2 million[71] Cash Flow and Operating Activities - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 15,489,000, compared to a net cash used of HKD 23,282,000 in the same period of 2018[12] - The total bank balances and cash amounted to approximately HKD 194.8 million, an increase from HKD 170.6 million, mainly due to an increase in general account bank balances by about HKD 10.8 million and trust bank balances by about HKD 13.4 million[81] Employee and Operational Expenses - The total employee benefits expenses, including directors' remuneration, amounted to HKD 8,384,000 for the six months ended June 30, 2019, compared to HKD 7,645,000 in 2018, indicating an increase of 10%[28] - Administrative and other operating expenses increased by approximately 56.3% to about HKD 20.0 million, primarily due to higher employee benefits expenses[63] Trade Receivables and Payables - Trade receivables decreased to HKD 37.7 million from HKD 39.7 million compared to the previous year[9] - The total trade receivables for normal business operations were HKD 37,677,000, down from HKD 39,744,000, indicating a decline of 5.2%[41] - Trade payables for cash clients rose to HKD 23,844,000, up 19.9% from HKD 19,851,000 as of December 31, 2018[44] - Margin client payables increased significantly to HKD 22,370,000 from HKD 15,670,000, reflecting a growth of 42.8%[44] Risk Management and Economic Outlook - The company is cautious about the global economic outlook and its potential impact on performance due to uncertainties such as the US-China trade war and local political developments[66] - The company is maintaining strict control over outstanding receivables to reduce credit risk, with overdue balances reviewed regularly by senior management[39] - The group faced minimal foreign exchange risk as its revenue and business costs were primarily denominated in HKD, with no financial instruments used for hedging purposes[74] Corporate Governance and Compliance - The board consists of 5 members, including 2 executive directors and 3 independent non-executive directors, ensuring compliance with GEM listing rules[101] - The audit committee reviewed the group's unaudited financial results for the period and confirmed compliance with applicable accounting standards and GEM listing rules[102] - The company has adhered to the corporate governance code, with a commitment to high standards to protect shareholder interests[97] - The company has not encountered any violations of trading standards by directors during the period[94]

[Performance Summary](index=3&type=section&id=Performance%20Summary) [First Quarter Performance Highlights](index=3&type=section&id=Performance%20Summary) The company achieved a turnaround to profit in the first quarter of 2019, recording a profit of approximately **HKD 2.0 million**, primarily driven by a **37.9% year-on-year increase in revenue to HKD 8.0 million**, with the Board declaring an interim dividend of **HKD 0.005 per share** Key Performance Indicators for Q1 2019 | Indicator | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :--- | :--- | :--- | | **Revenue** | Approx. HKD 8.0 million | Approx. HKD 5.8 million | | **Profit/(Loss) Attributable to Owners of the Company** | Profit approx. HKD 2.0 million | Loss approx. HKD 0.7 million | | **Basic Earnings/(Loss) Per Share** | Earnings HKD 0.25 cents | Loss HKD 0.09 cents | | **Interim Dividend** | HKD 0.005 per share | N/A | - The Board declared an interim dividend of **HKD 0.005 per share** for the three months ended March 31, 2019, totaling **HKD 4,000,000**, on May 7, 2019[6](index=6&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the three months ended March 31, 2019, the company achieved a turnaround to profit, recording **HKD 2.031 million** in profit attributable to owners, compared to a **HKD 0.737 million** loss in the prior year, primarily due to revenue increasing from **HKD 5.778 million** to **HKD 8.007 million** and effective control over administrative expenses Consolidated Statement of Profit or Loss | Item | Three Months Ended March 31, 2019 (HKD thousand) | Three Months Ended March 31, 2018 (HKD thousand) | | :--- | :--- | :--- | | **Revenue** | 8,007 | 5,778 | | Other income | 130 | 128 | | Administrative and other operating expenses | (5,895) | (6,564) | | **Profit/(Loss) before tax** | 2,231 | (737) | | Income tax expense | (200) | – | | **Profit/(Loss) for the period attributable to owners of the Company** | 2,031 | (737) | | **Basic earnings/(loss) per share (HK cents)** | 0.25 | (0.09) | [Condensed Consolidated Statement of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of March 31, 2019, the company's total equity increased to **HKD 185.562 million** from **HKD 183.531 million** at the beginning of the year, with the **HKD 2.031 million** increase entirely attributable to the profit recorded during the period Summary of Statement of Changes in Equity | Item (HKD thousand) | Share capital | Share premium | Special reserve | Retained profits | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **Balance at January 1, 2019** | 8,000 | 77,179 | 38,401 | 59,951 | 183,531 | | Profit and total comprehensive income for the period | – | – | – | 2,031 | 2,031 | | **Balance at March 31, 2019** | 8,000 | 77,179 | 38,401 | 61,982 | 185,562 | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section of the notes details the basis of financial statement preparation, application of accounting policies, and provides a breakdown of key items such as revenue, expenses, taxation, dividends, and earnings per share, noting the adoption of HKFRS 16 Leases from January 1, 2019, which had no material impact on the current period's financial statements - The Group primarily engages in providing **brokerage services, placing and underwriting services, corporate finance advisory services, financing services, and asset management services**[12](index=12&type=chunk) - Effective January 1, 2019, the Group adopted **Hong Kong Financial Reporting Standard 16 Leases**, with no material impact on the reported amounts for the three months ended March 31, 2019[17](index=17&type=chunk) [Revenue Analysis](index=8&type=section&id=3.%20Revenue) Total revenue for the quarter was **HKD 8.007 million**, a **38.5% year-on-year increase**, primarily driven by a significant surge in **placing and underwriting commissions** from **HKD 0.3 million** to **HKD 4.206 million**, despite notable declines in brokerage and asset management service fees Revenue Composition (Three Months Ended March 31) | Service Type | 2019 (HKD thousand) | 2018 (HKD thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Brokerage service commissions | 612 | 1,279 | -52.2% | | **Placing and underwriting commissions** | **4,206** | **300** | **+1302%** | | Corporate finance advisory service fees | 2,170 | 2,400 | -9.6% | | Interest income from securities and IPO financing | 704 | 743 | -5.2% | | Asset management service fees | 315 | 1,056 | -70.2% | | **Total** | **8,007** | **5,778** | **+38.5%** | [Profit/Loss Before Tax Analysis](index=9&type=section&id=5.%20Profit%2FLoss%20Before%20Tax) The quarter recorded a **HKD 2.231 million** profit before tax, compared to a **HKD 0.737 million** loss in the prior year, with improved profitability primarily attributed to cost control, notably a reduction in **employee benefit expenses from HKD 4.114 million to HKD 3.597 million** - Employee benefit expenses, a major administrative and operating cost, decreased from **HKD 4.114 million** in the prior year to **HKD 3.597 million** in the current period, significantly contributing to the achieved profitability[24](index=24&type=chunk) [Dividends](index=10&type=section&id=7.%20Dividends) The Board declared an interim dividend of **HKD 0.005 per share** for the three months ended March 31, 2019, totaling **HKD 4.0 million**, on May 7, 2019, which was not recognized as a liability on the balance sheet as of March 31, 2019 - The Board declared an interim dividend of **HKD 0.005 per share**, totaling **HKD 4,000,000**[28](index=28&type=chunk) [Earnings/Loss Per Share](index=11&type=section&id=8.%20Earnings%2FLoss%20Per%20Share) Based on a weighted average of **800 million** ordinary shares, the quarter achieved basic and diluted earnings per share of **HKD 0.25 cents**, a significant improvement from a **HKD 0.09 cents** loss per share in the prior year, with diluted earnings per share equal to basic earnings per share due to no dilutive potential ordinary shares outstanding - Basic earnings per share for the current quarter was **HKD 0.25 cents**, compared to a basic loss per share of **HKD 0.09 cents** in the prior year[8](index=8&type=chunk)[30](index=30&type=chunk) - The weighted average number of ordinary shares used for calculation was **800,000,000**[30](index=30&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=12&type=section&id=Business%20Review) The Group successfully turned to profit in the first quarter of 2019, primarily due to the completion of **three placing and underwriting transactions** contributing approximately **HKD 4.2 million** in revenue, despite significant declines in brokerage and asset management service income, while corporate finance advisory and financing services remained relatively stable - The financial results for the first quarter of 2019 shifted from a loss to a profit, mainly due to the Group completing **three placing and underwriting transactions** that generated approximately **HKD 4.2 million** in revenue[32](index=32&type=chunk) - Revenue from **brokerage and asset management services significantly decreased**, while **corporate finance advisory and financing services remained relatively stable**[32](index=32&type=chunk) [Financial Review](index=12&type=section&id=Financial%20Review) Total revenue for the period increased by **37.9% to HKD 8.0 million**, primarily driven by placing and underwriting activities, while administrative and other operating expenses decreased by **10.6% to HKD 5.9 million**, mainly due to reduced employee benefit expenses, resulting in a turnaround from a **HKD 0.7 million** loss in the prior year to a **HKD 2.0 million** profit in the current period - Total revenue increased by approximately **37.9% to HKD 8.0 million**, primarily attributable to an increase in the number of placing and underwriting engagements[33](index=33&type=chunk) - Administrative and other operating expenses decreased by approximately **10.6% to HKD 5.9 million**, mainly due to reductions in employee benefit expenses and commission expenses[37](index=37&type=chunk) - Due to increased revenue and decreased expenses, a profit of approximately **HKD 2.0 million** was recorded for the period, compared to a loss of approximately **HKD 0.7 million** in the prior year[39](index=39&type=chunk) [Outlook](index=14&type=section&id=Outlook) Looking ahead to 2019, management anticipates global economic uncertainties, including the US-China trade war, US interest rate hikes, and China's economic slowdown, will foster cautious market sentiment, posing challenges for the Hong Kong stock market and the Group's business, thus the Group will remain vigilant to pursue sustainable revenue and balanced growth, having completed **two placing and underwriting engagements** and **one corporate finance advisory project** post-reporting period - Management believes the global economy in 2019 is fraught with variables, including the **US-China trade war, US interest rate hikes, Brexit, and China's economic slowdown**, which will constrain Hong Kong's economic performance and impact the Group's results[41](index=41&type=chunk) - As of the report date, the Group has completed **two placing and underwriting engagements** and **one corporate finance advisory engagement** since March 31, 2019, with **one additional corporate finance advisory engagement currently in progress**[41](index=41&type=chunk) [Other Information](index=15&type=section&id=Other%20Information) [Directors' and Major Shareholders' Interests](index=15&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) As of March 31, 2019, Mr. Poon Chik, the company's Chairman, held **532,685,000 shares**, representing **66.59%** of the issued share capital, through his wholly-owned Autumn Ocean Limited, with his spouse, Ms. Liu Mingli, deemed to have an interest in these shares Major Shareholder Interests (As of March 31, 2019) | Name/Designation | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Poon | Interest in controlled corporation | 532,685,000 | 66.59% | | Ms. Liu Mingli | Spouse's interest | 532,685,000 | 66.59% | | Autumn Ocean Limited | Beneficial owner | 532,685,000 | 66.59% | [Corporate Governance](index=18&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company complied with most provisions of the Corporate Governance Code during the reporting period, with one deviation: the roles of Chairman and Chief Executive Officer are not segregated, both held by Mr. Poon Chik, which the Board believes benefits the Group's operations and management by providing strong and consistent leadership - The company deviated from Corporate Governance Code Provision A.2.1, which stipulates the segregation of roles between the Chairman and Chief Executive Officer, as **Mr. Poon Chik holds both positions**[57](index=57&type=chunk) - The Board believes that Mr. Poon's dual role as Chairman and Chief Executive Officer is beneficial to the Group's operations and management, providing **strong and consistent leadership**[57](index=57&type=chunk) [Audit Committee](index=19&type=section&id=Audit%20Committee) The company's Audit Committee, comprising **three independent non-executive directors**, is responsible for reviewing and overseeing the company's financial reporting process and internal control systems, having reviewed the unaudited condensed consolidated results for the quarter and deemed them compliant with applicable requirements and appropriately disclosed - The Audit Committee comprises **three independent non-executive directors**, with Mr. Lau Hon Kee as Chairman[59](index=59&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated results for the period and confirmed their compliance with applicable accounting policies, GEM Listing Rules, and other legal requirements, with appropriate disclosures made[59](index=59&type=chunk) [Interim Dividend and Closure of Register of Members](index=19&type=section&id=Interim%20Dividend%20and%20Closure%20of%20Register%20of%20Members) The company declared an interim dividend of **HKD 0.005 per share**, payable on June 13, 2019, to shareholders registered on May 29, 2019, with the register of members closed from May 27 to May 29, 2019, to determine dividend entitlement - The interim dividend will be paid on **June 13, 2019**, with the record date for entitlement being **May 29, 2019**[60](index=60&type=chunk)

Financial Performance - The total revenue for the year 2018 was approximately HKD 50.0 million, a decrease of about 13.9% compared to the previous fiscal year[10]. - The profit attributable to the owners of the company for the year was approximately HKD 22.5 million, a decrease of about 1.7% year-on-year[10]. - Total revenue for the year was approximately HKD 50.0 million, a decrease of about 13.9% compared to HKD 58.1 million in the previous year[28]. - Profit for the year decreased by approximately HKD 0.4 million or about 1.7% to approximately HKD 22.5 million from approximately HKD 22.9 million in the same period last year[34]. - The company achieved a pre-tax profit of HKD 26.8 million, a slight decrease of about 2.9% from HKD 27.6 million in the previous year[26]. - Net profit attributable to owners for the year was HKD 22,485,000, compared to HKD 22,865,000 in the previous year, a decrease of 1.7%[194]. - Profit before tax for 2018 was HKD 26,785,000, slightly down by 2.9% from HKD 27,597,000 in 2017[194]. - Basic and diluted earnings per share for 2018 were HKD 2.81, down from HKD 2.86 in 2017[194]. Market Activity - The number of new listed companies in Hong Kong increased by 25% to 218 in 2018, with total funds raised soaring by 124.1% to HKD 288 billion[12]. - The average daily turnover in the Hong Kong securities market rose by 21.8% to HKD 107.4 billion in 2018[12]. - The Hang Seng Index fell by 13.6% to 25,846 points by the end of 2018, marking the worst performance in seven years[9]. - The number of placement transactions decreased by 23.5% to 235, with total funds raised dropping by 58.7% to HKD 140.3 billion[12]. Revenue Sources - Brokerage service commission income decreased by approximately 34.5% to about HKD 7.2 million from HKD 11.0 million in the previous year[29]. - The number of completed placements and underwriting appointments dropped from 20 to 11, resulting in a revenue decrease from approximately HKD 31.9 million to HKD 27.2 million, a decline of about 14.7%[29]. - Corporate finance advisory service fees increased by approximately 191.9% to about HKD 10.8 million, driven by an increase in appointments from 15 to 23[29]. - Interest income from securities and IPO financing decreased by approximately 69.7% to about HKD 2.7 million from HKD 8.9 million in the previous year due to weak demand[29]. Assets and Liabilities - Total assets decreased to approximately HKD 226.6 million from approximately HKD 266.8 million in the previous year, primarily due to a decrease in trust bank balances by approximately HKD 40.9 million[40]. - Current assets decreased by approximately 15.7% to HKD 211.9 million from HKD 251.3 million in the previous year[26]. - The group's net current assets were approximately HKD 168.8 million, with a current ratio of about 4.9 times, up from approximately 2.7 times in the previous year[47]. - Trade receivables dropped significantly from HKD 74,627,000 in 2017 to HKD 39,744,000 in 2018, representing a decrease of about 47%[196]. - Cash and cash equivalents in general accounts increased from HKD 99,198,000 in 2017 to HKD 135,099,000 in 2018, an increase of about 36%[196]. - Trade payables decreased from HKD 92,089,000 in 2017 to HKD 38,349,000 in 2018, a decline of approximately 58%[196]. Dividends - The company declared an interim dividend of HKD 0.005 per share for the first three quarters of 2018[10]. - The company declared dividends totaling HKD 12,000,000 for the year 2018, compared to HKD 8,000,000 in 2017, representing a 50% increase in dividends paid[198]. - The company has no predetermined dividend payout ratio, and any declaration of interim or final dividends is subject to board approval based on various factors including financial performance and capital requirements[94]. - The company declared a first-quarter dividend of HKD 0.005 per share, totaling HKD 4 million, consistent with the previous year[112]. - The second-quarter dividend was also set at HKD 0.005 per share, amounting to HKD 4 million, which was an increase from the previous year where no dividend was declared[112]. - The third-quarter dividend remained at HKD 0.005 per share, totaling HKD 4 million, unchanged from the prior year[113]. - The board did not recommend a final dividend for the year, contrasting with the previous year where no final dividend was declared[114]. Corporate Governance - The company has adopted and complied with the corporate governance code as per GEM Listing Rules Appendix 15, except for deviation from code provision A.2.1[67]. - The board consists of 5 members, including 2 executive directors and 3 independent non-executive directors, ensuring compliance with GEM Listing Rules[70]. - The board is responsible for leading and monitoring the group, aiming to maximize long-term value for shareholders while balancing the interests of various stakeholders[70]. - The remuneration committee, chaired by an independent non-executive director, has reviewed the remuneration of directors and senior management, deeming it fair and reasonable for the year[80]. - The nomination committee will continue to review the need for recruiting competent staff to expand the group's business[81]. - The company emphasizes the importance of a diverse board, considering factors such as gender, age, cultural background, and professional qualifications[77]. - The board has established three committees: remuneration, nomination, and audit, to oversee specific aspects of the company's affairs[79]. - The independent non-executive directors have confirmed their independence as per GEM Listing Rules, ensuring no conflicts of interest with the company[75]. - The chairman and CEO roles are combined, which the board believes provides strong and consistent leadership for the group[69]. - The company is committed to maintaining high standards of corporate governance to enhance stakeholder confidence and support[68]. Risk Management - The group faced various financial risks, including credit risk and liquidity risk, focusing on reducing potential adverse impacts on financial performance[51]. - The group faces credit risk, which may lead to financial losses due to counterparties failing to fulfill their obligations[52]. - Management has established a team to set transaction limits and approval processes to minimize credit risk[52]. - The group regularly reviews the recoverable amounts of individual receivables to ensure adequate impairment losses are recognized[52]. - The board is responsible for evaluating the nature and extent of risks acceptable in achieving strategic objectives and ensuring effective risk management and internal control systems are in place[95]. - The internal control system was reviewed by management, and no significant weaknesses were identified during the assessment conducted by external consultants[96]. - The company has been actively enhancing its internal controls and risk management in response to regulatory feedback, with independent reviews conducted[98]. - The board is committed to ensuring effective risk management and internal controls through regular meetings and oversight[96]. Compliance and Regulatory Matters - The company has maintained compliance with all relevant laws and regulations throughout the year[130]. - The company has adopted a shareholder communication policy to ensure timely and comprehensive information dissemination to shareholders and potential investors[100]. - The company has established procedures for shareholders to convene special meetings, ensuring transparency and accessibility[102]. - The company has been proactive in addressing compliance and risk management concerns raised by regulatory authorities[98]. - The company has confirmed compliance with the GEM Listing Rules regarding continuous related party transactions[158]. - The independent auditor, Guo Wei CPA Limited, has been proposed for reappointment at the upcoming 2019 annual general meeting[173]. - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards and reflect a true and fair view of the group's financial position as of December 31, 2018[177]. Shareholder Information - As of December 31, 2018, the distributable reserves available for shareholders were approximately HKD 80.4 million, an increase from HKD 78.8 million in 2017[122]. - The largest customer accounted for approximately 20.2% of the total revenue, while the top five customers represented about 56.7% of total revenue[116]. - The company maintains a sufficient public float of at least 25% as required by GEM listing rules[171]. - No arrangements were made during the year for directors and senior management to acquire shares or bonds of the company or its subsidiaries[167]. - There were no significant transactions or contracts involving directors with substantial interests during the year[169]. - The company has not changed its auditor in the past three years[174]. Employee Relations and Charitable Activities - The group organized various activities to enhance employee relationships, including sports and health events[135]. - Charitable donations made by the group during the year totaled approximately HKD 16,000[136]. - There were no complaints received from customers or business partners during the year[135].