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].