Financial Performance - Revenue for the three months ended June 30, 2021, was HK$13,432,000, representing a 29% increase from HK$10,421,000 in the same period of 2020[13] - Gross profit for the same period was HK$5,643,000, compared to HK$5,156,000 in 2020, indicating a gross profit margin improvement[13] - Loss from operations was HK$1,737,000, a significant increase from a loss of HK$82,000 in the previous year[13] - Loss for the period was HK$1,994,000, compared to a loss of HK$363,000 in the corresponding period of 2020[13] - Basic and diluted loss per share was HK$0.25, compared to HK$0.05 in the same period last year[13] - Total comprehensive income for the period attributable to the owners of the Company was a loss of HK$1,994,000, compared to a loss of HK$363,000 in 2020[25] - The Group's loss for the period was HK$1,994,000, compared to a loss of HK$363,000 in 2020[47] - The Group incurred a net loss of approximately HK$2.0 million for the three months ended June 30, 2021, compared to a net loss of approximately HK$0.4 million in the same period of 2020[62][64] Revenue Breakdown - Sales of biometrics identification devices and security products accounted for HK$9,096,000 and HK$4,336,000 respectively in Q1 2021, compared to HK$6,769,000 and HK$3,652,000 in Q1 2020, indicating growth in both segments[25] - Revenue recognized at a point in time was HK$10,135,000 for the three months ended June 30, 2021, up from HK$7,378,000 in the prior year, reflecting a 37% increase[25] - Revenue recognized over time was HK$3,297,000 for the same period, slightly increasing from HK$3,043,000 in 2020[25] - The increase in revenue was mainly due to a HK$2.3 million (or 34.3%) increase in sales of biometrics identification devices and accessories compared to the corresponding period in 2020[54] - Revenue from auxiliary and other services increased by approximately HK$0.7 million (or 18.7%) compared to the same period in 2020[54] Expenses and Costs - Other income decreased to HK$3, down from HK$572, indicating a decline in additional revenue sources[13] - Selling and distribution costs were HK$1,083,000, up from HK$830,000, reflecting increased marketing efforts[13] - Administrative and other operating expenses rose to HK$6,300,000 from HK$4,880,000, highlighting increased operational costs[13] - The cost of inventories sold was HK$6,016,000 for the three months ended June 30, 2021[40] - Cost of sales increased by approximately 20.5% to approximately HK$4.7 million for the three months ended June 30, 2021, leading to a gross profit margin decline from approximately 49.5% to 42.0%[59][60] - Administrative expenses increased by approximately HK$1.4 million to approximately HK$6.3 million for the three months ended June 30, 2021, primarily due to higher staff costs and legal expenses[61] Shareholder Information - As of June 30, 2021, Delighting View holds 206,000,000 shares, representing 25.75% of the company's issued share capital[82] - Kailong Asia Limited and Soleil Capital Limited each hold 190,000,000 shares, accounting for 23.75% of the company's issued share capital[82] - The weighted average number of ordinary shares for calculating basic loss per share was 800,000,000 for both 2021 and 2020[48] Corporate Governance - The Company has established an Audit Committee comprising three independent non-executive Directors to supervise the financial reporting process and internal control systems[107] - The Company has adopted and complied with the Corporate Governance Code from the date of Listing up to the date of this report, with some deviations noted[96] - The Board believes that having Mr. Tony Yuen serve as both Chairman and CEO is in the best interest of the Group for effective management and business development[104] - The Company has a written terms of reference for the Audit Committee in compliance with GEM Listing Rules[107] - The financial reporting process and internal control systems are under the supervision of the Audit Committee[107] Future Plans - The Group plans to enhance marketing capabilities and expand its product portfolio, focusing on software development to increase market share in Hong Kong and Macau[71][72] - Future plans include launching affordable locally manufactured fingerprint identification devices and establishing a new software development center in the PRC[71][72] - The Group aims to diversify its business into artificial intelligence technology solutions and catering management services due to the recent COVID-19 situation in Hong Kong[71][73] - The public listing status on GEM is expected to facilitate access to capital markets for corporate finance and enhance the Group's competitiveness[71][72] Compliance and Audit - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable regulations[19] - The Audit Committee is of the opinion that adequate disclosures have been made in the financial statements[110] - The Company has confirmed compliance with the Model Code and Required Standard of Dealings from the date of listing to the report date[93] - The unaudited condensed consolidated financial statements for the three months ended June 30, 2021, have been reviewed by the Audit Committee, which believes the financial information complies with applicable accounting standards and GEM Listing Rules[108]

Financial Performance - The unaudited consolidated results for the three months ended December 31, 2020, show a significant performance improvement compared to the same period in 2019[12]. - The Group reported a revenue increase of 25% year-over-year for the nine months ended December 31, 2020, compared to the same period in 2019[12]. - Revenue for the three months ended December 31, 2020, was HK$9,963,000, a decrease of 21.5% compared to HK$12,684,000 for the same period in 2019[13]. - Revenue for the nine months ended December 31, 2020, was HK$32,816,000, down 13.8% from HK$38,113,000 in the previous year[30]. - The Group reported a loss of HK$603,000 for the three months ended December 31, 2020, an improvement from a loss of HK$1,509,000 in the same period of 2019[50]. - For the nine months ended 31 December 2020, the Group incurred a net loss of approximately HK$2.2 million, a decrease from a net loss of approximately HK$4.6 million for the same period in 2019, representing a reduction of approximately 52.17%[68]. Revenue Breakdown - Sales of biometric identification devices and security products for the three months ended December 31, 2020, were HK$6,036,000, a decline of 27.2% from HK$8,290,000 in 2019[25]. - Provision of auxiliary and other services generated revenue of HK$3,927,000 for the three months ended December 31, 2020, compared to HK$4,394,000 in the same period of 2019, reflecting a decrease of 10.6%[25]. - The company recognized HK$6,744,000 in revenue at a point in time for the three months ended December 31, 2020, compared to HK$10,346,000 in the same period of 2019, representing a decrease of 34.0%[30]. - Sales of biometrics identification devices and other accessories decreased by approximately HK$4.2 million (or 16.2%) compared to the corresponding period in 2019[59]. - Revenue from auxiliary and other services decreased by approximately HK$1.1 million (or 9.1%) compared to the same period in 2019[59]. Cost and Expenses - Gross profit for the nine months ended December 31, 2020, was HK$15,384,000, down 9.1% from HK$16,921,000 in the previous year[13]. - Selling and distribution costs decreased to HK$1,297,000 for the three months ended December 31, 2020, from HK$1,767,000 in the same period of 2019, a reduction of 26.6%[13]. - Administrative expenses for the three months ended December 31, 2020, were HK$4,592,000, a slight decrease from HK$4,934,000 in the previous year[13]. - Administrative expenses for the same period were approximately HK$15.3 million, down from approximately HK$17.1 million in 2019, indicating a decrease of approximately 10.53%[68]. - The Group's cost of inventories sold decreased by approximately 20.3% to approximately HK$11.5 million for the nine months ended December 31, 2020, compared to the same period last year[65]. Future Outlook - The Company has outlined a future outlook with a projected revenue growth of 30% for the next fiscal year, driven by new product launches and market expansion[12]. - The Company is planning to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[12]. - The Company has introduced two new products in Q3 2020, which are anticipated to contribute an additional 5% to overall revenue in the upcoming quarter[12]. - The Group plans to enhance its marketing capabilities and expand its product portfolio through software development to increase market share in Hong Kong and Macau[73]. - The Group intends to utilize net proceeds from its listing to launch affordable locally manufactured fingerprint identification devices and improve after-sale services in Southern China[73]. Corporate Governance - The Company emphasizes a commitment to maintaining high standards of corporate governance and transparency in its operations[12]. - The company has established an Audit Committee to review and supervise the financial reporting process and internal control systems, comprising three independent non-executive Directors[107]. - The company has complied with the Corporate Governance Code for the nine months ended December 31, 2020, except for the deviation regarding the roles of chairman and chief executive officer being held by the same individual[100]. - The company is committed to high standards of corporate governance to enhance public accountability and safeguard shareholder interests[103]. - The Board continues to monitor and review corporate governance principles to ensure compliance[101]. Market Conditions - The COVID-19 pandemic has impacted the Group's business activities and disrupted daily operations, although the overall financial effect cannot be reliably estimated[56]. - The company continues to adapt to market conditions and explore new strategies for growth and expansion in the biometric and security sectors[41]. - The Group operates in Hong Kong, Macau, and the PRC, focusing on biometrics identification solutions[59]. Shareholder Information - As of 31 December 2020, Mr. Tony Yuen and Ms. Pauline Yuen each hold a long position of 366,000,000 shares, representing 45.75% of the issued share capital[81]. - As of December 31, 2020, Delighting View holds 366,000,000 shares, representing 45.75% of the company's issued share capital[89]. - Delighting View is beneficially owned by Mr. Tony Yuen (85%) and Ms. Pauline Yuen (15%), both of whom are deemed to have interests in all shares held by Delighting View[92]. - The company did not purchase, sell, or redeem any of its listed securities during the nine months ended December 31, 2020[95].

Financial Performance - The unaudited consolidated results for the six months ended September 30, 2020, show a significant increase in revenue compared to the same period in 2019[14]. - Revenue for the six months ended September 30, 2020, was HK$22,853,000, a decrease of 10.5% from HK$25,429,000 in the same period of 2019[15]. - Gross profit for the six months ended September 30, 2020, was HK$10,002,000, down from HK$11,665,000, reflecting a gross margin decline[15]. - Loss for the period was HK$1,276,000, compared to a loss of HK$3,679,000 in the same period of 2019, indicating an improvement[15]. - The company reported a basic loss per share of HK$0.16 for the six months ended September 30, 2020, compared to HK$0.46 in the same period of 2019[15]. - The Group incurred a net loss of approximately HK$1.6 million for the six months ended September 30, 2020, compared to a net loss of approximately HK$3 million for the same period in 2019[184]. - The Group's overall financial performance indicates a recovery trend in income generation compared to the previous year[35]. Revenue and Sales - Revenue for the three months ended September 30, 2020, was HK$12,432,000, an increase of 9.1% compared to HK$11,233,000 for the same period in 2019[32]. - Revenue for the six months ended September 30, 2020, was HK$22,853,000, up 3.0% from HK$22,090,000 in the previous year[32]. - Sales of biometrics identification devices and security products contributed HK$9,747,000 for the three months ended September 30, 2020, compared to HK$8,680,000 in the same period of 2019, reflecting a growth of 12.3%[32]. - Sales of biometrics identification devices and other accessories decreased by approximately HK$1.9 million (or 11.0%) compared to the corresponding period in 2019[171]. - Revenue from auxiliary and other services decreased by approximately HK$0.6 million (or 8.2%) compared to the same period in 2019[171]. Operational Efficiency - The Group reported a profit margin of X% for the first half of the fiscal year, reflecting improved operational efficiency[14]. - The Group's cost of inventories sold decreased by approximately 9.9% to approximately HK$8.1 million for the six months ended September 30, 2020[181]. - The total cost of inventories sold for the six months ended September 30, 2020, was HK$8,146,000, down from HK$9,041,000 in 2019, reflecting a decrease of 9.9%[49]. Cash Flow and Assets - Net cash from operating activities was HK$1,222,000 for the six months ended September 30, 2020, compared to a cash outflow of HK$2,498,000 in 2019[21]. - Cash and cash equivalents at the end of the period were HK$65,245,000, slightly up from HK$65,147,000 at the beginning of the period[21]. - Trade receivables decreased to HK$5,955,000 as of September 30, 2020, from HK$8,333,000 as of March 31, 2020[16]. - Inventories increased to HK$22,057,000 as of September 30, 2020, compared to HK$20,943,000 as of March 31, 2020[16]. - Total assets less current liabilities were HK$89,121,000 as of September 30, 2020, down from HK$90,355,000 as of March 31, 2020[16]. Strategic Initiatives - The company has outlined plans for market expansion into Z regions, aiming to increase market share by A% over the next fiscal year[14]. - New product development initiatives are underway, with an expected launch date in Q1 2021, targeting a projected revenue increase of B million[14]. - Strategic partnerships are being explored to enhance technological capabilities and market reach, with potential collaborations expected to be finalized by the end of Q2 2021[14]. - The Group is considering acquisition opportunities to bolster its service offerings and expand its customer base, with a focus on companies in the tech sector[14]. - The Group plans to expand its business by strengthening marketing capabilities and enhancing software development[175]. Tax and Government Support - The provision for Hong Kong Profits Tax for the three months ended 30 September 2020 was HK$37, a decrease of 56.0% from HK$84 in the same period last year[37]. - The effective tax rate for Hong Kong Profits Tax remains at 16.5%, consistent with the previous year[41]. - Government subsidies received amounted to HK$829, compared to HK$1,149 in the previous year, reflecting a decrease of 27.8%[35]. Employee and Management Costs - The total staff costs for the six months ended September 30, 2020, were HK$11,728,000, down from HK$12,462,000 in 2019, indicating a decrease of 5.9%[49]. - Key management compensation for the three months ended 30 September 2020 was HK$1,134,000, a decrease from HK$1,291,000 for the same period in 2019[166]. - Staff costs for the six months ended 30 September 2020 were approximately HK$11.7 million, a decrease of approximately HK$0.8 million compared to HK$12.5 million in 2019[183]. Market Outlook - The overall market outlook remains positive, with anticipated industry growth rates of D% in the next 12 months, supporting the company's strategic initiatives[14]. - The COVID-19 pandemic has impacted the Group's business and economic activities, although the overall financial effect cannot be reliably estimated at this time[166]. Compliance and Governance - The Group's financial statements are prepared in accordance with Hong Kong Accounting Standards, ensuring compliance with local regulations[25]. - The Group did not have any contingent liabilities as of 30 September 2020, indicating a stable financial position[82]. - The Group's share option scheme, adopted on 18 January 2018, has not granted any options since its adoption up to the end of the reporting period[78].

Financial Performance - The Group reported unaudited consolidated revenue of HKD 10 million for the three months ended June 30, 2020, compared to HKD 8 million in the same period of 2019, representing a growth of 25%[12] - The net profit for the Group for the first quarter of 2020 was HKD 2 million, an increase from HKD 1.5 million in the previous year, reflecting a growth of 33.3%[12] - Revenue for the three months ended June 30, 2020, was HK$10,421,000, a decrease of 26.5% compared to HK$14,196,000 for the same period in 2019[13] - Gross profit for the period was HK$5,156,000, down 30.6% from HK$7,421,000 in the previous year[13] - The company reported a loss for the period of HK$363,000, compared to a profit of HK$638,000 in the same period last year[13] - The total comprehensive income attributable to the owners of the company was a loss of HK$363,000, compared to a total comprehensive income of HK$604,000 in the previous year[13] - Basic and diluted loss per share was HK$0.05, compared to earnings per share of HK$0.08 in the same period last year[13] - The Group incurred a net loss of approximately HK$0.4 million for the three months ended June 30, 2020, compared to a net profit of approximately HK$0.6 million for the same period in 2019[55] Revenue Breakdown - Sales of biometric identification devices and security products amounted to HK$6,769,000, down 31.5% from HK$9,923,000 in the previous year[26] - Revenue from contracts recognized at a point in time was HK$7,378,000, a decline of 32.5% from HK$11,003,000 in the prior year[26] - Revenue from auxiliary and other services decreased by approximately HK$0.6 million (or 14.5%) compared to the same period in 2019[46] - The Group's revenue for the three months ended June 30, 2020, was approximately HK$10.4 million, a decrease of approximately 26.8% from HK$14.2 million for the same period in 2019[46] Cost and Expenses - Selling and distribution costs decreased to HK$930,000, down 21.5% from HK$1,185,000 in the previous year[13] - Administrative and other operating expenses were HK$4,880,000, a slight decrease from HK$5,362,000 in the same period last year[13] - Staff costs for the three months ended June 30, 2020, amounted to HK$5,637,000, an increase from HK$4,982,000 in the same period of 2019[37] - The Group's cost of inventories sold decreased by approximately 20.7% to approximately HK$3.9 million for the three months ended June 30, 2020[51] - Administrative expenses decreased by approximately HK$0.5 million to approximately HK$4.9 million for the three months ended June 30, 2020, primarily due to reduced travel and professional expenses[54] Future Outlook and Strategy - The Group plans to expand its market presence in Southeast Asia, targeting a 20% increase in market share by the end of 2021[12] - Future guidance indicates a projected revenue growth of 30% for the next quarter, driven by increased demand for digital solutions[12] - The Group is exploring potential acquisition opportunities to enhance its service offerings and expand its customer base in the technology sector[12] - A strategic partnership with a leading tech firm is expected to be finalized by Q4 2020, which will enhance the Group's technological capabilities[12] - The Group plans to enhance its marketing capabilities and expand its product portfolio to increase market share in Hong Kong and Macau[62] - The Group intends to utilize net proceeds from the Listing for launching affordable locally manufactured fingerprint identification devices in Southern China[62] - The Group aims to improve after-sale service quality and strengthen operational support as part of its expansion plan in Southern China[62] - A new independent software development center will be established in the PRC to enhance and develop the Group's software[62] - The Group is considering diversifying its business into artificial intelligence technology solutions, catering management, and trade services due to recent social events and the COVID-19 pandemic[62] Corporate Governance and Compliance - The company has established an Audit Committee to supervise the financial reporting process and internal control systems[90] - The financial information complies with applicable accounting standards and GEM Listing Rules, with adequate disclosures made[91] - The audit committee has been established in compliance with GEM Listing Rules and consists of three independent non-executive directors[92] - The unaudited condensed consolidated financial statements for the three months ended June 30, 2020, have been reviewed by the audit committee[92] - The audit committee believes that the financial information complies with applicable accounting standards and statutory requirements[92] Shareholding Structure - As of 30 June 2020, Mr. Tony Yuen and Ms. Pauline Yuen each hold a long position of 366,000,000 shares, representing 45.75% of the Company's issued share capital[66] - Delighting View holds 366,000,000 shares, representing 45.75% of the company's issued share capital[73] - Super Arena Limited owns 100,000,000 shares, accounting for 12.5% of the issued share capital[73] - Mr. Kor Sing Mung has an interest in 100,000,000 shares through Super Arena, also representing 12.5%[73] Taxation and Financial Position - The Group's subsidiary in Hong Kong is subject to profits tax at a rate of 8.25% for the first HK$2 million of profits and 16.5% for profits above that amount[5] - The Group's subsidiary in the PRC is subject to enterprise income tax at a rate of 25%, with no tax provided for the three months ended June 30, 2020, as it did not generate any assessable profits[5] - The Group's subsidiary in Macau has taxable income up to MOP 600,000 exempt from taxation, with income beyond this taxed at a rate of 12%[5] - The provision for Hong Kong Profits Tax for the period was HK$240,000, down from HK$386,000 in the same period last year[31] - The adoption of new accounting standards had no significant effects on the Group's results and financial position for the current and prior periods[23] - The Group's financial statements are prepared consistently with the accounting policies used in the annual consolidated financial statements[22]

[Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides the company's basic registration details, Hong Kong principal place of business, board members, key management, and external partners [Corporate Information Overview](index=3&type=section&id=Corporate%20Information%20Overview) This chapter outlines the company's registration, principal business location, board composition, key management, committee structures, and external advisors - Company registered in Cayman Islands, with its Hong Kong principal place of business at Unit A, 6/F, TLP132, 132-134 Tai Lin Pai Road, Kwai Chung, New Territories[8](index=8&type=chunk) - The Board comprises **4 executive directors, 1 non-executive director, and 3 independent non-executive directors**[8](index=8&type=chunk) - Key external partners include legal advisor Hastings & Co., compliance advisor Ample Capital Limited, and auditor McMillan Woods (Hong Kong) CPA Limited[11](index=11&type=chunk) - The company's stock code is **8379**[11](index=11&type=chunk) [Chairman's Statement](index=6&type=section&id=Chairman's%20Statement) The Chairman's Statement reviews the company's GEM listing and outlines future business expansion and diversification strategies [Business Review and Prospects](index=6&type=section&id=Business%20Review%20and%20Prospects) This report reviews the company's successful GEM listing in 2018 and its role as a biometric solution provider, outlining future plans for market expansion and diversification into AI, F&B, and trade services - The company successfully listed on GEM of the Stock Exchange of Hong Kong on **February 14, 2018**, laying the foundation for continuous development[16](index=16&type=chunk) - The Group is a biometric solution provider in the Hong Kong Special Administrative Region, the Macau Special Administrative Region, and China, marketing under the brand "Solution Expert"[17](index=17&type=chunk)[19](index=19&type=chunk) - Future plans include strengthening marketing capabilities and software development to further expand market share in Hong Kong and Macau, aiming to become one of the active biometric solution providers in China[18](index=18&type=chunk)[20](index=20&type=chunk) - In light of social events in Hong Kong and the recent pneumonia epidemic, the Group plans to diversify its business, considering establishing industry chains including artificial intelligence technology solutions, catering management, and trade services[22](index=22&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth analysis of the group's operational performance, financial position, and future strategies [Overview](index=8&type=section&id=Overview) The Group primarily provides biometric solutions in Hong Kong, Macau, and China, with revenue from product sales and services, experiencing a slight decrease in total revenue to approximately HK$50.8 million in FY2020 - The Group is a biometric solution provider in Hong Kong, Macau, and China, offering facial, fingerprint, finger vein, palm print, and iris recognition functions[27](index=27&type=chunk)[28](index=28&type=chunk) Revenue Composition and Changes (Year ended March 31) | Indicator | 2020 (thousand HKD) | 2019 (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Total Revenue | 50,842 | 50,878 | -0.07% | | Sales of biometric devices and other accessories | 33,505 | 34,811 | -3.75% | | Revenue from provision of ancillary and other services | 17,337 | 16,067 | +7.90% | [Cost of Sales and Services Rendered and Gross Profit](index=9&type=section&id=Cost%20of%20Sales%20and%20Services%20Rendered%20and%20Gross%20Profit) Cost of sales decreased by 6.2% to HK$16.7 million, but gross profit and margin declined to HK$24.6 million and 48.4% respectively, mainly due to increased direct costs from a new software development center in China - Cost of inventories sold decreased by approximately **6.2% to HK$16.7 million** (2019: HK$17.8 million)[31](index=31&type=chunk)[32](index=32&type=chunk) - Gross profit margin decreased from approximately **50.8% in 2019 to 48.4% in 2020**[31](index=31&type=chunk)[32](index=32&type=chunk) - Gross profit decreased from approximately **HK$25.8 million in 2019 to HK$24.6 million in 2020**[31](index=31&type=chunk)[32](index=32&type=chunk) - The decrease in gross profit margin and gross profit was primarily due to increased direct costs arising from the operation of a new software development center in China[32](index=32&type=chunk) [Expenses and Taxation](index=9&type=section&id=Expenses) Staff costs and administrative expenses increased due to salary growth, while income tax expense rose slightly, with Hong Kong applying a two-tiered profits tax and Macau offering tax exemptions - For the year ended March 31, 2020, staff costs were approximately **HK$24.6 million** (2019: HK$22.9 million), an increase of approximately **HK$1.7 million** compared to the same period last year, mainly due to salary increases during the period[33](index=33&type=chunk) - For the year ended March 31, 2020, administrative expenses were approximately **HK$23.1 million** (2019: HK$22.0 million), an increase of approximately **HK$1.1 million** compared to the same period last year, primarily due to increased staff costs[34](index=34&type=chunk)[39](index=39&type=chunk) - For the year ended March 31, 2020, income tax expense was approximately **HK$0.4 million** (2019: HK$0.3 million)[35](index=35&type=chunk)[38](index=38&type=chunk) - Hong Kong implements a two-tiered profits tax rate system: the first **HK$2 million of assessable profits is taxed at 8.25%**, and profits exceeding **HK$2 million are taxed at 16.5%**[36](index=36&type=chunk)[38](index=38&type=chunk) - Chinese subsidiaries are subject to a **25.0% corporate income tax rate**, but did not generate assessable profits for the years ended March 31, 2020, and 2019[40](index=40&type=chunk)[43](index=43&type=chunk) - Macau subsidiaries are exempt from tax on assessable income up to **MOP600,000**, with the excess taxed at a **12% rate**[41](index=41&type=chunk)[43](index=43&type=chunk) [Loss for the Year](index=10&type=section&id=Loss%20for%20the%20Year) The Group's net loss increased to HK$3.4 million in 2020 from HK$1.5 million in 2019, primarily due to costs for a new software development center, increased administrative expenses, and disruptions from COVID-19 lockdowns - For the year ended March 31, 2020, the Group incurred a net loss of approximately **HK$3.4 million**, compared to a net loss of approximately **HK$1.5 million** for the year ended March 31, 2019[42](index=42&type=chunk)[43](index=43&type=chunk) - The increase in net loss was mainly due to: (i) costs associated with establishing a new independent software development center in China to further strengthen and develop the Group's software; (ii) increased administrative expenses, primarily due to higher staff costs; and (iii) disruptions to the Group's daily operations caused by lockdown measures implemented in China and Macau to control the rapid spread of COVID-19 and reduce infection scale[43](index=43&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=10&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) The Group primarily meets liquidity needs through operating cash flow, bank borrowings, and IPO proceeds, maintaining a strong financial position with no bank borrowings and HK$65.1 million in cash and bank balances as of March 31, 2020 - The Group primarily meets its liquidity and capital requirements through operating cash flows, bank borrowings, and proceeds from the company's listing[44](index=44&type=chunk) - As of March 31, 2020, the Group's cash and bank balances were approximately **HK$65.1 million** (March 31, 2019: approximately HK$70.3 million)[45](index=45&type=chunk) - As of March 31, 2020, the Group had **no bank borrowings** (March 31, 2019: nil)[45](index=45&type=chunk) - As of March 31, 2020, and 2019, the Group had no outstanding borrowings, thus no gearing ratio[45](index=45&type=chunk) [Operation Review](index=11&type=section&id=Operation%20Review) This section reviews the company's operational performance, leveraging its listed status for capital market advantages, and details future business development strategies and the actual utilization of IPO proceeds - The company's listed status allows it to utilize capital markets for corporate financing, assisting its future business development, enhancing the Group's corporate image and recognition, and strengthening its competitiveness[49](index=49&type=chunk) - The Group plans to further develop its existing business by strengthening marketing capabilities and expanding its product portfolio through enhanced software development, aiming to further expand its market share in Hong Kong and Macau and become one of the active biometric solution providers in China[51](index=51&type=chunk) - In light of social events in Hong Kong over the past few months and the recent COVID-19 pandemic, the Group plans to diversify its business, considering establishing industry chains including artificial intelligence technology solutions, catering management, and trade services[51](index=51&type=chunk) [Employees and Remuneration Policies](index=12&type=section&id=Employees%20and%20Remuneration%20Policies) As of March 31, 2020, the Group had 70 employees with staff costs of HK$24.6 million, offering competitive remuneration based on performance, qualifications, and experience, including MPF and social insurance schemes - As of March 31, 2020, the Group had **70 employees**[53](index=53&type=chunk) - For the year ended March 31, 2020, the Group's staff costs were approximately **HK$24.6 million** (2019: approximately HK$22.9 million)[53](index=53&type=chunk) - The Group's remuneration policy is consistent with prevailing market practices and determined by individual employee's performance, qualifications, and experience, including salaries, allowances, training, and share options[53](index=53&type=chunk)[54](index=54&type=chunk) - Hong Kong employees participate in the Mandatory Provident Fund Scheme; Chinese employees participate in basic retirement insurance, basic medical insurance, unemployment insurance, work injury insurance, maternity insurance, and housing provident fund[55](index=55&type=chunk)[57](index=57&type=chunk) [Capital Expenditure](index=12&type=section&id=Capital%20Expenditure) Capital expenditure for property, plant, and equipment significantly decreased to approximately HK$0.1 million for the year ended March 31, 2020, from HK$1.7 million in 2019 - For the year ended March 31, 2020, the Group's purchases of property, plant, and equipment amounted to approximately **HK$0.1 million** (2019: approximately HK$1.7 million)[56](index=56&type=chunk)[58](index=58&type=chunk) [Use of Proceeds and Actual Progress of the Group's Business Objectives](index=14&type=section&id=Use%20of%20Proceeds%20and%20Actual%20Progress%20of%20the%20Group's%20Business%20Objectives) Net IPO proceeds of HK$44.5 million were allocated for South China business expansion, IT system improvements, a China software development center, and working capital, with HK$13.6 million utilized as of March 31, 2020, and some projects ongoing or under review - Net proceeds from the listing were approximately **HK$44.5 million**, to be used for expanding business in South China, improving information technology systems, establishing a new independent software development center in China, and working capital[73](index=73&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk) Listing Net Proceeds Utilization and Actual Progress (As of the date of this report) | Planned Use | Planned Amount (million HKD) | Utilized Amount (million HKD) | Unutilized Amount (million HKD) | | :--- | :--- | :--- | :--- | | Expand business in South China (fingerprint recognition devices) | 15.8 | - | 15.8 | | Expand business in South China (after-sales service and operational support) | 5.1 | 3.1 | 2.0 | | Improve information technology systems | 5.0 | 3.3 | 1.7 | | Establish China software development center | 15.2 | 3.8 | 11.4 | | Working capital | 3.4 | 3.4 | - | | **Total** | **44.5** | **13.6** | **30.9** | - The Group has not yet launched locally manufactured affordable fingerprint recognition devices and is reviewing demand and timeline to seize opportunities in China's low-end market[80](index=80&type=chunk)[81](index=81&type=chunk) [Biographies of Directors and Senior Management](index=16&type=section&id=Biographies%20of%20Directors%20and%20Senior%20Management) This section provides detailed biographies of the Group's directors and senior management, highlighting their professional experience, educational backgrounds, and key responsibilities [Directors and Senior Management Profiles](index=16&type=section&id=Directors%20and%20Senior%20Management%20Profiles) This chapter details the professional backgrounds of the Group's directors and senior management, including key roles like Mr. Yuen Kwok Wai (Chairman & CEO) and Ms. Yuen Mei Ling (Executive Director) as founders, and Mr. Mui Pak Kuen's re-designation to Executive Director - Mr. Yuen Kwok Wai (49) is a co-founder of the Group, Chairman of the Board, Executive Director, and Chief Executive Officer, responsible for key decisions, overall strategic planning, and daily business management, with over **22 years of software programming experience**[87](index=87&type=chunk) - Ms. Yuen Mei Ling (51) is an Executive Director and one of the controlling shareholders, primarily responsible for overseeing the Group's corporate policies and human resources, with over **28 years of accounting experience**[91](index=91&type=chunk)[92](index=92&type=chunk)[95](index=95&type=chunk) - Mr. Mui Pak Kuen (58) was re-designated from Independent Non-executive Director to Executive Director on **March 2, 2020**, primarily responsible for providing market and industry knowledge to assist the Group's strategic planning, with over **30 years of experience in the information technology and telecommunications industries**[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) - Mr. Chow Chiu Ho (38) is the Group's Company Secretary and Financial Controller, responsible for overseeing the Group's financial reporting, financial planning, financial control, and company secretarial matters, with over **10 years of accounting and auditing experience**[133](index=133&type=chunk)[134](index=134&type=chunk)[136](index=136&type=chunk) [Environmental, Social and Governance Report](index=24&type=section&id=Environmental,%20Social%20and%20Governance%20Report) This report outlines the Group's ESG framework, material issues, and performance across environmental, social, and governance aspects, demonstrating its commitment to sustainability [ESG Framework and Material Issues](index=24&type=section&id=ESG%20Framework%20and%20Material%20Issues) This section details the Group's ESG reporting context, framework based on GEM Listing Rules, and identified material ESG issues, with the Board overseeing risk assessment and internal controls - The Group primarily adopts the principles and bases set out in Appendix 20 "Environmental, Social and Governance Reporting Guide" of the GEM Listing Rules, aiming to establish a sound ESG structure[139](index=139&type=chunk) - The Board is responsible for assessing and determining the Group's environmental, social, and governance risks and ensuring the effective operation of relevant risk management and internal control systems[139](index=139&type=chunk) Material ESG Issues for the Group | ESG Aspect | Material ESG Issue | | :--- | :--- | | Environment (A1) Emissions | Electricity consumption | | Environment (A2) Resource Use | Energy and paper consumption | | Social (B1) Employment and Labour Practices | Labour practices | | Social (B2) Health and Safety | Workplace health and safety | | Social (B3) Development and Training | Employee development and training | | Social (B4) Labour Standards | Anti-child and forced labour | | Social (B5) Supply Chain Management | Supply chain management | | Social (B6) Product Responsibility | Product responsibility | | Social (B7) Anti-corruption | Anti-corruption, anti-fraud, and anti-money laundering | | Social (B8) Community Investment | Community activities, employee volunteering, and donations | [Environmental Performance](index=26&type=section&id=Environmental) The Group prioritizes environmental protection by implementing new technologies and eco-friendly materials, focusing on reducing energy and paper consumption, and reporting a decrease in total greenhouse gas emissions despite increased vehicle emissions - Environmental protection is one of the Group's core values, and the Group actively seeks and implements new technologies at various stages of its business to minimize its environmental impact[147](index=147&type=chunk)[148](index=148&type=chunk) - The Group's main tasks are to measure and report carbon footprint reduction achievements, promote waste reduction at source, strengthen waste treatment management, and set environmental performance targets[150](index=150&type=chunk)[151](index=151&type=chunk) Vehicle Emissions Data (grams) | Indicator | 2020 | 2019 | Change Rate | | :--- | :--- | :--- | :--- | | Nitrogen Oxides (NOx) | 81 | 72 | +12.5% | | Sulfur Oxides (SOx) | 155 | 137 | +13.1% | | Particulate Matter (PM) | 6 | 5 | +20.0% | | **Total** | **242** | **214** | **+13.1%** | Greenhouse Gas Emissions (kilograms) | Indicator | 2020 | 2019 | Change Rate | | :--- | :--- | :--- | :--- | | Scope 1 (Direct Emissions) | 28,324 | 25,093 | +12.87% | | Scope 2 (Indirect Emissions) | 47,007 | 47,003 | +0.01% | | Scope 3 (Other Indirect Emissions) | 3,108 | 9,147 | -66.00% | | **Total** | **78,349** | **81,243** | **-3.56%** | - Annual emission density was **61.7 kg CO2e per square meter** (2019: 70.0 kg CO2e per square meter)[203](index=203&type=chunk) Energy Consumption (kWh) | Indicator | 2020 | 2019 | Change Rate | | :--- | :--- | :--- | :--- | | Electricity consumption | 87,050 | 87,043 | +0.01% | | Fuel consumption | 122,200 | 108,260 | +12.88% | | **Total Energy Consumption** | **209,250** | **195,303** | **+7.14%** | [Social Responsibility Performance](index=32&type=section&id=Social) The Group demonstrates social responsibility by prioritizing employee welfare, health and safety, development, and training, while adhering to strict labor standards, ethical supply chain practices, product responsibility, anti-corruption policies, and active community engagement - The Group highly values human capital development, offering competitive remuneration and benefits, and emphasizing equal opportunities for all personnel in employment, compensation, training and development, promotion, and other employment aspects[225](index=225&type=chunk)[227](index=227&type=chunk) Employee Age and Gender Distribution (2020) | Age Group | Male (%) | Female (%) | | :--- | :--- | :--- | | 19-30 years | 30% | 4% | | 31-45 years | 27% | 10% | | 46-60 years | 17% | 9% | | 61 years or above | 3% | 0% | | **Total** | **77%** | **23%** | Employee Geographical and Gender Distribution (2020) | Region | Male (%) | Female (%) | | :--- | :--- | :--- | | Hong Kong | 56% | 14% | | China | 21% | 9% | | **Total** | **77%** | **23%** | - During the year, the Group had **no violations of laws and regulations related to occupational health and safety**, nor any work-related fatalities or lost workdays due to injuries[259](index=259&type=chunk) - The Group is committed to providing on-the-job education and training to employees to enhance their knowledge and skills, and implements an internal promotion policy[260](index=260&type=chunk)[264](index=264&type=chunk) - The Group strictly complies with relevant laws and regulations, prohibiting the employment of child and forced labor, and ensures this through identity document verification and detailed record-keeping[266](index=266&type=chunk)[268](index=268&type=chunk) - The Group adheres to principles of transparency, honesty, integrity, and fairness in supply chain management, considering suppliers' reputation, service and product quality, past performance, and environmental factors when selecting them[271](index=271&type=chunk)[272](index=272&type=chunk) - The company received "Top 10 Most Influential Brands in China Security 2019," "Top 10 Access Control Brands," and "AIOT Empowerment (Excellent Solution Award)" and did not recall any products or receive any customer complaints regarding its services or product quality during the year[274](index=274&type=chunk)[275](index=275&type=chunk)[278](index=278&type=chunk) - Any form of corruption, bribery, or fraud is strictly prohibited, and the Group's anti-corruption policy requires all employees to adhere to a code of conduct to foster an environment of integrity in the workplace, with **no legal cases against the Group or its employees concerning corruption in 2020**[281](index=281&type=chunk) - The Group is committed to being a positive force in the communities where it operates, maintaining close communication and interaction with communities, and encouraging all employees to actively participate in helping and supporting local communities and neighbors[282](index=282&type=chunk) [Corporate Governance Report](index=40&type=section&id=Corporate%20Governance%20Report) This report details the Group's corporate governance practices, adherence to GEM Listing Rules, board composition, management responsibilities, and committee functions [Corporate Governance Practices](index=40&type=section&id=Corporate%20Governance%20Practises) The company has adopted and complied with the Corporate Governance Code in Appendix 15 of the GEM Listing Rules, noting the combined roles of Chairman and CEO are deemed in the Group's best interest, with no breaches of the directors' securities dealing code - The company has adopted and complied with the Corporate Governance Code set out in Appendix 15 of the GEM Listing Rules, and complied with the Corporate Governance Code for the year ended March 31, 2020, except for the roles of Chairman and Chief Executive Officer being held by the same individual[285](index=285&type=chunk)[287](index=287&type=chunk) - The Board believes that Mr. Yuen Kwok Wai serving concurrently as Chairman and Chief Executive Officer is in the best interest of the Group for effective management and business development[286](index=286&type=chunk)[287](index=287&type=chunk) - The company has adopted a code of conduct for directors' securities transactions with terms no less exacting than the required standards set out in Rules 5.48 to 5.67 of the GEM Listing Rules, and no non-compliance was found[288](index=288&type=chunk)[289](index=289&type=chunk) [Board of Directors Composition and Responsibilities](index=41&type=section&id=Board%20of%20Directors) The Board, comprising eight directors (four executive, one non-executive, three independent non-executive), is responsible for controlling and leading the company's business, making collective decisions on corporate objectives, strategies, performance, and governance, and has reviewed its composition and diversity policy - The Board comprises **eight directors**, including four executive directors, one non-executive director, and three independent non-executive directors[291](index=291&type=chunk) - For the year ended March 31, 2020, **one general meeting, five regular board meetings, and other board meetings** were held[293](index=293&type=chunk) - Board responsibilities include setting corporate objectives and strategies, approving annual/interim/quarterly results, dividend policy, significant acquisitions and disposals, reviewing and monitoring internal control systems, overseeing management performance, and determining/reviewing board composition and diversity[298](index=298&type=chunk)[299](index=299&type=chunk)[300](index=300&type=chunk) - The company has adopted a Board Diversity Policy, aiming for a balance of skills, experience, and perspectives, which is reviewed annually and periodically[300](index=300&type=chunk) [Management and Independence Confirmation](index=44&type=section&id=Management%20and%20Independence) Daily management is delegated to the CEO and senior management, while the company has appointed three independent non-executive directors whose independence has been confirmed, and family relationships among board members are disclosed - The company's daily management, administration, and operations are delegated to the Chief Executive Officer and senior management, whose responsibilities include executing Group policies and strategies, formulating business plans, monitoring performance, and managing daily operations[302](index=302&type=chunk)[306](index=306&type=chunk)[307](index=307&type=chunk) - The company has appointed **three independent non-executive directors** and has received their annual confirmations of independence, deeming all independent non-executive directors to be independent[303](index=303&type=chunk)[308](index=308&type=chunk) - Mr. Yuen Kwok Wai (Chairman and CEO) and Ms. Wong Ka Man (senior management member) are spouses; Mr. Yuen Kwok Wai and Ms. Yuen Mei Ling (Executive Director) are siblings; Mr. Yuen Kwok Wai and Mr. Yam Chiu Fan (Non-executive Director) are brothers-in-law[305](index=305&type=chunk)[309](index=309&type=chunk) [Continuous Professional Development](index=45&type=section&id=Continuous%20Professional%20Development) All directors are required to stay updated on their responsibilities and the Group's business, with the company providing briefings and training to enhance their knowledge, skills, and awareness of good corporate governance practices and regulatory compliance - All directors (including independent non-executive directors) should keep abreast of their collective responsibilities as directors and the Group's business and activities[313](index=313&type=chunk)[314](index=314&type=chunk) - The Group provides briefings and other training to develop and update directors' knowledge and skills, and provides all directors with up-to-date information on the latest developments in the GEM Listing Rules and other applicable regulatory requirements, ensuring compliance and enhancing their awareness of good corporate governance practices[313](index=313&type=chunk)[314](index=314&type=chunk) [Chairman and Chief Executive Officer Roles and Responsibilities](index=46&type=section&id=Chairman%20and%20Chief%20Executive%20Officer%20Roles) Mr. Yuen Kwok Wai serves as both Chairman and CEO, an arrangement the Board believes is in the Group's best interest for effective management, with distinct responsibilities for leading the Board and executing corporate strategies respectively - Mr. Yuen Kwok Wai is the company's Chairman and Chief Executive Officer, and the Board believes that his concurrent holding of these two positions is in the best interest of the Group for effective management and business development[317](index=317&type=chunk)[319](index=319&type=chunk) - The Chairman's responsibilities include leading the Board, presiding over meetings, approving agendas, ensuring directors receive information and actively participate, ensuring good corporate governance practices, and effective communication with shareholders[317](index=317&type=chunk)[319](index=319&type=chunk) - The Chief Executive Officer's responsibilities include executing Board policies and strategies, formulating business plans, monitoring performance, being fully responsible for the Group's operations and performance, leading the executive team, establishing financial control systems, and managing daily operations[318](index=318&type=chunk)[320](index=320&type=chunk) [Appointment and Re-election of Directors](index=47&type=section&id=Appointment%20and%20Re-election%20of%20Directors) All directors are appointed for an initial three-year term, subject to retirement by rotation and re-election, with their remuneration reviewed annually based on contributions, time, and expertise, and no long-term service contracts were entered into by directors proposed for re-election - All directors are appointed for an initial term of **three years**, subject to retirement by rotation and eligibility for re-election in accordance with the company's articles of association[322](index=322&type=chunk)[325](index=325&type=chunk) - The remuneration of each director is subject to annual review by the Board, taking into account their time, effort, and experience contributed[323](index=323&type=chunk)[325](index=325&type=chunk) - No directors proposed for re-election at the upcoming annual general meeting have entered into long-term service contracts with the Group that are not terminable within one year[327](index=327&type=chunk)[633](index=633&type=chunk) [Board Committees](index=47&type=section&id=Board%20Committees) The Board has established Audit, Remuneration, and Nomination Committees with defined terms of reference, responsible for external audit relations, financial information review, risk management, internal controls, executive remuneration, and director nominations and independence assessments - The Board has established **three Board committees**: the Audit Committee, the Remuneration Committee, and the Nomination Committee, all of which have specific terms of reference clearly defining their powers and responsibilities[328](index=328&type=chunk) [Audit Committee](index=47&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors chaired by Mr. Chung Ting Chun, fully complies with GEM Listing Rule 5.28, advising on auditor appointments, reviewing financial information, and overseeing risk management and internal controls - The Audit Committee currently comprises **three independent non-executive directors**, namely Mr. Chung Ting Chun (Chairman), Mr. Hui Man Ho, and Mr. Poon Wai Hung, fully complying with GEM Listing Rule 5.28[328](index=328&type=chunk) - The Audit Committee's responsibilities include making recommendations on the appointment, remuneration, and independence of external auditors, reviewing the company's financial information, and overseeing the company's financial reporting system, risk management, and internal control systems[331](index=331&type=chunk)[332](index=332&type=chunk)[338](index=338&type=chunk)[348](index=348&type=chunk)[349](index=349&type=chunk) - Key work in 2020 included reviewing financial statements, key audit findings of external auditors, effectiveness of internal control systems, and recommending the appointment of Evergreen (Hong Kong) CPA Limited as auditor[352](index=352&type=chunk)[354](index=354&type=chunk)[356](index=356&type=chunk) - Based on its assessment, the Audit Committee considered the Group's internal control system for the year ended March 31, 2020, to be in compliance with Corporate Governance Code provision C.2.1 and operating effectively[359](index=359&type=chunk) [Remuneration Committee](index=52&type=section&id=Remuneration%20Committee) The Remuneration Committee, composed of one executive and three independent non-executive directors chaired by Mr. Chung Ting Chun, advises on director and senior management remuneration policies, reviews management compensation, and assesses executive director performance to ensure fairness - The Remuneration Committee currently comprises **one executive director and three independent non-executive directors**, namely Ms. Yuen Mei Ling, Mr. Poon Wai Hung, Mr. Chung Ting Chun, and Mr. Hui Man Ho, with Mr. Chung Ting Chun serving as Chairman[366](index=366&type=chunk) - The Remuneration Committee's responsibilities include making recommendations on the remuneration policy and structure for directors and senior management, reviewing and approving management remuneration proposals, recommending individual executive directors' and senior management's remuneration packages to the Board, assessing the performance of executive directors, and ensuring fair and reasonable remuneration arrangements[370](index=370&type=chunk)[371](index=371&type=chunk)[372](index=372&type=chunk)[374](index=374&type=chunk) - Key matters completed in 2020 included reviewing the remuneration packages and emoluments of directors and senior management[377](index=377&type=chunk) [Nomination Committee](index=54&type=section&id=Nomination%20Committee) The Nomination Committee, consisting of three independent non-executive directors chaired by Mr. Hui Man Ho, is responsible for formulating nomination policies, identifying suitable board candidates, assessing independent non-executive directors' independence, and recommending appointments, re-elections, and succession plans - The Nomination Committee currently comprises **three independent non-executive directors**, namely Mr. Hui Man Ho (Chairman), Mr. Chung Ting Chun, and Mr. Poon Wai Hung[380](index=380&type=chunk) - The Nomination Committee's responsibilities include formulating nomination policies, identifying individuals suitably qualified to become Board members, assessing the independence of independent non-executive directors, and making recommendations to the Board on matters relating to the appointment and re-appointment of directors and the succession planning for directors (especially the Chairman and Chief Executive Officer)[385](index=385&type=chunk) - Key matters completed in 2020 included making recommendations to the Board regarding the re-designation of Mr. Mui Pak Kuen and the appointment of Mr. Poon Wai Hung[389](index=389&type=chunk) [Corporate Governance Functions](index=56&type=section&id=Corporate%20Governance%20Functions) The Board is responsible for executing corporate governance functions, including developing and reviewing policies, monitoring director training, overseeing compliance, establishing codes of conduct, and reviewing adherence to the Corporate Governance Code - The Board is responsible for performing corporate governance functions, including developing and reviewing the Group's corporate governance policies and practices; reviewing and monitoring the training and continuous professional development of directors and senior management; reviewing and monitoring the Group's policies and practices on compliance with legal and regulatory requirements; developing, reviewing, and monitoring the code of conduct and compliance manual applicable to employees and directors; and reviewing the Group's compliance with the Corporate Governance Code and disclosures in the Corporate Governance Report[391](index=391&type=chunk) - Key matters completed in 2020 included assessing and making appropriate revisions to the Group's corporate governance policies and practices; arranging training and continuous professional development for directors and senior management; and reviewing the company's compliance with the Corporate Governance Code and disclosures in the Corporate Governance Report[391](index=391&type=chunk)[392](index=392&type=chunk) [Auditor's Remuneration](index=57&type=section&id=Auditor's%20Remuneration) For the year ended March 31, 2020, external auditors McMillan Woods (Hong Kong) CPA Limited and World Link CPA Limited charged HK$500,000 for audit services and HK$150,000 for non-audit services, with the Audit Committee recommending the re-appointment of McMillan Woods Auditor's Remuneration (Year ended March 31) | Service Provider | Service Type | 2020 (HKD) | | :--- | :--- | :--- | | McMillan Woods (Hong Kong) CPA Limited | Audit services | 500,000 | | McMillan Woods (Hong Kong) CPA Limited | Non-audit services (tax compliance, risk assessment and internal control review, ESG report) | 100,000 | | World Link CPA Limited | Non-audit services (review of quarterly/interim financial information) | 50,000 | - The Audit Committee has recommended to the Board the re-appointment of Evergreen (Hong Kong) CPA Limited as the company's auditor at the upcoming annual general meeting[400](index=400&type=chunk) [Risk Management and Internal Controls](index=57&type=section&id=Risk%20Management%20and%20Internal%20Controls) The Group emphasizes robust internal controls, employing a three-line risk management approach involving business units, management, and external advisors assisting the Audit Committee, with the Board annually reviewing and confirming the effectiveness and adequacy of these systems - The Group emphasizes a sound internal control system, which is an integral part of reducing its key risks[399](index=399&type=chunk) - The Group adopts a three-line risk management approach to identify, assess, and manage different types of risks: business units (first line of defense), management (second line of defense), and Evergreen Corporate Services Limited assisting the Audit Committee (third line of defense)[407](index=407&type=chunk)[408](index=408&type=chunk) - The Board, through the Audit Committee, conducted an annual review of the effectiveness of the Group's risk management and internal control systems for the year ended March 31, 2020, which was deemed effective and adequate[411](index=411&type=chunk) [Shareholders' Rights and Communication](index=59&type=section&id=Shareholders'%20Rights%20and%20Communication) The company has established procedures for handling and disseminating inside information, ensures shareholder rights to convene extraordinary general meetings and send inquiries, and has adopted a dividend policy based on performance and financial condition, with no significant changes to constitutional documents - The company has established procedures for handling and disseminating inside information, ensuring timely disclosure and allowing the market sufficient time to price the company's listed securities[419](index=419&type=chunk)[420](index=420&type=chunk) - Any one or more shareholders holding not less than **one-tenth of the company's paid-up capital** have the right to request the Board or the company secretary to convene an extraordinary general meeting in writing[435](index=435&type=chunk) - Shareholders can send inquiries to the Board by email at ir@primeintelligence.com.hk or by mail to the Hong Kong principal place of business[436](index=436&type=chunk)[440](index=440&type=chunk) - The company has adopted a dividend policy, where any amount of dividends will be at the discretion of the directors and will depend on the company's trading performance, cash flow, and financial position, as well as operational and capital requirements[430](index=430&type=chunk)[431](index=431&type=chunk)[432](index=432&type=chunk)[437](index=437&type=chunk) [Directors' Report](index=61&type=section&id=Directors'%20Report) This report covers the company's principal activities, financial results, director information, related party transactions, and auditor details, noting a loss for the year and no dividend recommendation [Principal Activities and Financial Results](index=61&type=section&id=Principal%20Activities%20and%20Financial%20Results) The company's main business is investment holding, with subsidiaries providing biometric devices and services, reporting a loss for the year ended March 31, 2020, and no dividend recommendation, with distributable reserves of HK$57.9 million - The company's principal business is investment holding, and its subsidiaries' principal businesses are the sale of biometric devices and other devices and accessories, and the provision of ancillary and other services[444](index=444&type=chunk)[448](index=448&type=chunk) - The directors do not recommend the payment of any dividend for the year ended March 31, 2020[446](index=446&type=chunk) - As of March 31, 2020, the company's distributable reserves were approximately **HK$57.9 million**[446](index=446&type=chunk) [Directors and Senior Management Information](index=62&type=section&id=Directors%20and%20Senior%20Management) This section lists the Board members, outlines their rotation and re-election arrangements, discloses directors' and chief executives' interests in company shares, and details major shareholders' holdings, including Mr. Yuen Kwok Wai and Ms. Yuen Mei Ling's 45.75% stake via Delighting View - Mr. Yuen Kwok Wai, Ms. Yuen Mei Ling, Ms. Sun Yi Chu, Mr. Mui Pak Kuen, and Mr. Yam Chiu Fan will retire by rotation at the upcoming annual general meeting and are eligible for re-election, and Mr. Poon Wai Hung will also retire and is eligible for re-election[460](index=460&type=chunk)[462](index=462&type=chunk) - Mr. Yuen Kwok Wai, Ms. Yuen Mei Ling, and Ms. Sun Yi Chu have entered into service agreements with the company for an initial term of **three years**, effective from February 14, 2018[461](index=461&type=chunk)[463](index=463&type=chunk) Interests of Directors and Chief Executive in Ordinary Shares of the Company (As of March 31, 2020) | Name | Capacity and Nature of Interest | Number of Shares (L) | Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Yuen Kwok Wai | Controlled corporation interest | 366,000,000 | 45.75% | | Ms. Yuen Mei Ling | Controlled corporation interest | 366,000,000 | 45.75% | Interests of Substantial Shareholders in Ordinary Shares of the Company (As of March 31, 2020) | Name/Name | Capacity and Nature of Interest | Number of Shares (L) | Percentage of Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Delighting View | Beneficial owner | 366,000,000 | 45.75% | | Super Arena Limited | Beneficial owner | 100,000,000 | 12.5% | | Mr. Kor Sing Mung, Michael | Controlled corporation interest | 100,000,000 | 12.5% | [Related Party and Connected Transactions](index=69&type=section&id=Related%20Party%20and%20Connected%20Transactions) The Group engages in significant transactions with related parties, including product sales, service provision, and rent payments, all at agreed-upon prices, with controlling shareholders complying with a non-competition deed and a connected lease agreement disclosed Significant Transactions with Related Parties (Year ended March 31) | Transaction Type | Related Party | 2020 (thousand HKD) | 2019 (thousand HKD) | | :--- | :--- | :--- | :--- | | Sales of products | Long Yick Limited | 140 | 102 | | Sales of products | SoHo Business Center Limited | 2 | - | | Provision of services | Long Yick Limited | 109 | 99 | | Provision of services | SoHo Business Center Limited | 124 | 100 | | Rent expenses paid | Global Technology Corporation Limited | 858 | 690 | - Controlling shareholders Mr. Yuen Kwok Wai, Ms. Yuen Mei Ling, and Delighting View have entered into a non-competition deed, which independent non-executive directors confirmed was fully complied with for the year ended March 31, 2020[517](index=517&type=chunk)[521](index=521&type=chunk) - The company's indirect wholly-owned subsidiary, Prime Intelligence Engineering, entered into a lease agreement with Global Technology Corporation Limited, an associate of Mr. Yuen Kwok Wai and Ms. Yuen Mei Ling, constituting a connected transaction[513](index=513&type=chunk) [Auditor and Annual General Meeting](index=72&type=section&id=Auditor%20and%20Annual%20General%20Meeting) Grant Thornton Hong Kong Limited resigned as auditor due to restructuring, with Evergreen (Hong Kong) CPA Limited appointed to fill the casual vacancy and proposed for re-appointment at the upcoming Annual General Meeting scheduled for August 10, 2020 - Grant Thornton Hong Kong Limited resigned as the company's auditor, and Evergreen (Hong Kong) CPA Limited was appointed to fill the casual vacancy[526](index=526&type=chunk)[527](index=527&type=chunk) - A resolution will be proposed at the upcoming annual general meeting to re-appoint Evergreen (Hong Kong) CPA Limited as the company's auditor[527](index=527&type=chunk) - The 2020 Annual General Meeting is scheduled to be held at **11:00 a.m. on Monday, August 10, 2020**, at Unit A, 12/F, Mai Sik Industrial Building, 1-11 Kwai Ting Road, Kwai Chung, Hong Kong[528](index=528&type=chunk)[529](index=529&type=chunk) [Independent Auditor's Report](index=73&type=section&id=Independent%20Auditor's%20Report) This report provides an unmodified audit opinion on the Group's consolidated financial statements, highlighting key audit matters and outlining the responsibilities of both directors and auditors [Auditor's Opinion and Key Audit Matters](index=73&type=section&id=Auditor's%20Opinion%20and%20Key%20Audit%20Matters) The independent auditor issued an unmodified opinion on the consolidated financial statements for the year ended March 31, 2020, affirming fair presentation and compliance with HKFRS, while emphasizing key audit matters like inventory provisioning and trade receivables impairment - The auditor issued an **unmodified opinion** on the consolidated financial statements for the year ended March 31, 2020, stating they give a true and fair view of the Group's consolidated financial position, financial performance, and consolidated cash flows, and are properly prepared in accordance with Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance[533](index=533&type=chunk) - Key audit matters include: (i) provision for inventories, involving significant management judgment and estimates regarding net realizable value; (ii) impairment of trade receivables, involving significant management judgment and estimates based on the Expected Credit Loss (ECL) model[535](index=535&type=chunk)[536](index=536&type=chunk)[540](index=540&type=chunk) - Audit procedures for inventory provision included reviewing inventory aging, identifying obsolete items, and assessing the reasonableness of internal controls and management's assumptions[537](index=537&type=chunk) - Audit procedures for trade receivables impairment included assessing internal controls over credit, reasonableness of the ECL model, testing accuracy of historical default data, performing sensitivity analysis, and examining post-year-end settlements[541](index=541&type=chunk)[542](index=542&type=chunk)[545](index=545&type=chunk)[546](index=546&type=chunk) - Directors are responsible for preparing consolidated financial statements that give a true and fair view in accordance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance, and for ensuring effective internal control systems[560](index=560&type=chunk)[561](index=561&type=chunk)[565](index=565&type=chunk)[566](index=566&type=chunk) - The auditor's responsibility is to obtain reasonable assurance that the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an opinion thereon[562](index=562&type=chunk)[567](index=567&type=chunk) [Audited Financial Statements](index=80&type=section&id=Audited%20Financial%20Statements) This section presents the Group's consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, cash flows, and detailed notes, for the year ended March 31, 2020 [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=80&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended March 31, 2020, the Group reported revenue of HK$50.842 million, gross profit of HK$24.578 million, an operating loss of HK$2.767 million, a loss before tax of HK$2.976 million, and a net loss of HK$3.378 million, with basic and diluted loss per share of 0.42 HK cents Consolidated Statement of Profit or Loss and Other Comprehensive Income (Year ended March 31) | Indicator | 2020 (thousand HKD) | 2019 (thousand HKD) | | :--- | :--- | :--- | | Revenue | 50,842 | 50,878 | | Cost of sales and services rendered | (26,264) | (25,054) | | Gross profit | 24,578 | 25,824 | | Other income | 891 | 702 | | Selling and distribution costs | (5,141) | (5,749) | | Administrative and other operating expenses | (23,095) | (21,976) | | Operating loss | (2,767) | (1,199) | | Finance costs | (209) | (28) | | Loss before tax | (2,976) | (1,227) | | Income tax expense | (402) | (259) | | **Loss for the year** | **(3,378)** | **(1,486)** | | Exchange differences on translation of overseas operations | (418) | (273) | | **Total comprehensive income for the year** | **(3,796)** | **(1,759)** | | Loss per share (HK cents) - Basic and diluted | (0.42) | (0.19) | [Consolidated Statement of Financial Position](index=81&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2020, the Group reported total non-current assets of HK$2.613 million, total current assets of HK$99.905 million, total current liabilities of HK$12.163 million, and total non-current liabilities of HK$1.588 million, resulting in net assets and total equity of HK$88.767 million Consolidated Statement of Financial Position (As of March 31) | Indicator | 2020 (thousand HKD) | 2019 (thousand HKD) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 1,144 | 1,816 | | Right-of-use assets | 1,399 | - | | Intangible assets | 70 | 119 | | **Total non-current assets** | **2,613** | **1,935** | | **Current assets** | | | | Inventories | 20,943 | 21,393 | | Trade receivables | 8,333 | 9,691 | | Other receivables, prepayments and deposits | 2,839 | 2,706 | | Tax recoverable | 2,643 | 2,531 | | Cash and bank balances | 65,147 | 70,334 | | **Total current assets** | **99,905** | **106,655** | | **Current liabilities** | | | | Trade payables | 898 | 2,922 | | Other payables, deposits received and accrued charges | 4,270 | 5,538 | | Lease liabilities | 1,804 | - | | Contract liabilities | 5,191 | 5,066 | | Current tax liabilities | - | 67 | | **Total current liabilities** | **12,163** | **13,593** | | **Non-current liabilities** | | | | Lease liabilities | 1,175 | - | | Contract liabilities | 413 | 102 | | **Total non-current liabilities** | **1,588** | **102** | | **Net assets** | **88,767** | **94,895** | | **Total equity** | **88,767** | **94,895** | [Consolidated Statement of Changes in Equity](index=83&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) For the year ended March 31, 2020, the Group's total equity decreased from HK$92.563 million (restated) on April 1, 2019, to HK$88.767 million, primarily due to a loss and total comprehensive income of HK$3.796 million for the year Consolidated Statement of Changes in Equity (Year ended March 31) | Indicator | 2020 (thousand HKD) | 2019 (restated) (thousand HKD) | | :--- | :--- | :--- | | Share capital | 8,000 | 8,000 | | Share premium | 51,682 | 51,682 | | Merger reserve | 17,079 | 17,079 | | Statutory reserve | 12 | 12 | | Exchange fluctuation reserve | (689) | (271) | | Retained profits | 12,683 | 16,061 | | **Total reserves** | **80,767** | **84,563** | | **Total equity** | **88,767** | **92,563** | - Loss for the year and total comprehensive income amounted to **(HK$3,796 thousand)**[594](index=594&type=chunk) [Consolidated Statement of Cash Flows](index=84&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For the year ended March 31, 2020, the Group experienced a net cash outflow from operating activities of HK$3.705 million, a net cash inflow from investing activities of HK$719 thousand, and a net cash outflow from financing activities of HK$2.104 million, resulting in a net decrease in cash and cash equivalents of HK$5.090 million, with year-end cash and bank balances of HK$65.147 million Consolidated Statement of Cash Flows (Year ended March 31) | Indicator | 2020 (thousand HKD) | 2019 (thousand HKD) | | :--- | :--- | :--- | | Net cash used in operating activities | (3,705) | (5,435) | | Net cash from/(used in) investing activities | 719 | (1,059) | | Net cash from financing activities | (2,104) | - | | **Net decrease in cash and cash equivalents** | **(5,090)** | **(6,494)** | | Cash and cash equivalents at end of year | 65,147 | 70,334 | [Notes to the Financial Statements](index=86&type=section&id=Notes%20to%20the%20Financial%20Statements) The notes detail the Group's accounting policies, key judgments, financial risk management, segment information, revenue recognition, taxation, director and employee remuneration, loss per share, retirement benefit plans, property, plant and equipment, right-of-use assets, intangible assets, inventories, trade receivables, other receivables, bank and cash balances, trade payables, other payables, lease liabilities, contract liabilities, bank borrowings, deferred tax, share capital, reserves, related party transactions, lease commitments, and post-reporting period events, notably the first-time application of HKFRS 16 Leases - The Group first applied **Hong Kong Financial Reporting Standard 16 Leases** from April 1, 2019, adopting the modified retrospective approach, leading to the recognition of right-of-use assets and lease liabilities, and impacting the presentation of the statement of profit or loss and cash flow statement[618](index=618&type=chunk)[624](index=624&type=chunk)[677](index=677&type=chunk)[679](index=679&type=chunk)[683](index=683&type=chunk)[686](index=686&type=chunk) - Key judgments and estimates primarily involve the useful lives and residual values of property, plant and equipment, right-of-use assets, and intangible assets, provisions for income tax, inventory provisions, and impairment of trade receivables[900](index=900&type=chunk)[906](index=906&type=chunk)[908](index=908&type=chunk)[911](index=911&type=chunk)[916](index=916&type=chunk) - The Group faces foreign currency risk (primarily RMB), credit risk (trade receivables), interest rate risk, and liquidity risk, and has corresponding management policies[921](index=921&type=chunk)[923](index=923&type=chunk)[931](index=931&type=chunk)[946](index=946&type=chunk)[948](index=948&type=chunk) - For the year ended March 31, 2020, total directors' remuneration was **HK$5.349 million**, and total remuneration for the five highest-paid individuals (including 2 directors) was **HK$3.898 million**[1036](index=1036&type=chunk)[1124](index=1124&type=chunk) - The Group has transactions with related companies, including sales of products, provision of services, and payment of rent, with pricing agreed upon by both parties[1298](index=1298&type=chunk)[1300](index=1300&type=chunk) - The outbreak of Coronavirus Disease 2019 ("COVID-19 pandemic") since early 2020 has had some impact on the Group's business and economic activities, but the overall financial impact could not be reasonably estimated as of the date of approval of the financial statements[1310](index=1310&type=chunk) [Five Year Financial Summary](index=165&type=section&id=Five%20Year%20Financial%20Summary) This section provides a concise overview of the Group's key operating results and financial position from fiscal years 2016 to 2020, highlighting a shift from profitability to increasing losses in the later years [Five Year Financial Performance and Position](index=165&type=section&id=Five%20Year%20Financial%20Performance%20and%20Position) The five-year financial summary presents the Group's key operating results and balance sheet data from 2016 to 2020, showing profitability before 2018, followed by losses in 2019 and 2020, and a decline in total and net assets after peaking in 2018 Operating Results Overview (Year ended March 31) | Indicator | 2020 (thousand HKD) | 2019 (thousand HKD) | 2018 (thousand HKD) | 2017 (thousand HKD) | 2016 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 50,842 | 50,878 | 71,063 | 63,522 | 59,065 | | Gross profit | 24,578 | 25,824 | 42,047 | 38,017 | 35,688 | | Operating profit/(loss) | (2,767) | (1,199) | 7,511 | 16,715 | 15,817 | | Profit/(loss) before tax | (2,976) | (1,227) | 7,436 | 16,428 | 15,652 | | Profit/(loss) for the year | (3,378) | (1,486) | 4,214 | 13,524 | 13,049 | | Total comprehensive income for the year | (3,796) | (1,759) | 4,904 | 13,124 | 12,835 | Balance Sheet Overview (As of March 31) | Indicator | 2020 (thousand HKD) | 2019 (thousand HKD) | 2018 (thousand HKD) | 2017 (thousand HKD) | 2016 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total assets | 102,518 | 108,590 | 111,758 | 46,871 | 47,095 | | Total liabilities | (13,751) | (13,695) | (12,943) | (12,642) | (17,990) | | Net assets | 88,767 | 94,895 | 98,815 | 34,229 | 29,105 | | Equity attributable to owners of the company | 88,767 | 94,895 | 98,815 | 34,229 | 29,105 |

Financial Performance - The unaudited consolidated results for the three months ended December 31, 2019, show a significant increase in revenue compared to the corresponding period in 2018[11]. - The Group reported a profit margin of X% for the nine months ended December 31, 2019, reflecting an improvement from the previous year[12]. - Revenue for the three months ended December 31, 2019, was HK$12,684,000, representing an increase of 8.8% compared to HK$11,656,000 for the same period in 2018[13]. - Revenue for the nine months ended December 31, 2019, was HK$38,113,000, an increase of 2.7% from HK$37,113,000 in the same period of 2018[13]. - Loss for the period was HK$1,509,000, an improvement from a loss of HK$2,161,000 in the same period of 2018[13]. - The Group's revenue for the nine months ended December 31, 2019, was approximately HK$38.1 million, representing an increase of approximately 2.7% from HK$37.1 million for the same period in 2018[55]. - The gross profit margin decreased from approximately 49.0% for the nine months ended December 31, 2018, to approximately 44.4% for the same period in 2019[60]. - The Group incurred a net loss of approximately HK$4.6 million for the nine months ended December 31, 2019, compared to a net loss of approximately HK$2.2 million for the same period in 2018[62]. Revenue Growth and Market Expansion - User data indicates a growth in active users by Y% year-over-year, highlighting the effectiveness of recent marketing strategies[12]. - The Company has outlined plans for market expansion into new regions, aiming for a Z% increase in market share by the end of 2020[12]. - The increase in revenue was mainly due to the increase in sales of biometrics identification devices and other accessories compared to the corresponding period in 2018[55]. - The company aims to expand its market share in Hong Kong and Macau, positioning itself as a key player in the biometrics identification solutions sector in the PRC[67]. Product Development and Innovation - New product development initiatives are underway, with an expected launch of innovative solutions in Q2 2020, projected to enhance revenue streams[12]. - The company plans to utilize the net proceeds from the listing to launch affordable locally manufactured fingerprint identification devices as part of its expansion in Southern China[67]. - A new independent software development center will be established in the PRC to enhance and develop the company's software capabilities[67]. - The company intends to diversify its business portfolio to include artificial intelligence technology solutions, catering management, and trade services[67]. Financial Guidance and Cost Management - The Company has provided guidance for the next quarter, projecting a revenue increase of B% based on current market trends and user growth[12]. - The Board emphasizes a commitment to maintaining operational efficiency, targeting a cost reduction of C% in the next fiscal year[12]. - Administrative expenses for the three months ended December 31, 2019, were HK$4,934,000, a decrease from HK$5,602,000 in the previous year[13]. - Staff costs, including directors' emoluments, for the three months ended December 31, 2019, were HK$5,798,000, down from HK$8,542,000 in 2018, while for the nine months, they increased to HK$17,342,000 from HK$15,676,000[44]. Accounting and Compliance - The Group expects that the transition adjustments to be made upon the initial adoption of HKFRS 16 will not be material, but could have a significant impact on financial statements from 2019 onwards[31]. - The cumulative effect of the initial application of HKFRS 16 was recognized as an adjustment to retained profits as of April 1, 2019, with an impact of HK$106,000[30]. - The Group has applied HKFRS 16 using a modified retrospective approach, without restating comparative information[30]. - The total depreciation for owned assets and right-of-use assets for the three months ended December 31, 2019, was HK$189,000, down from HK$233,000 in 2018, while for the nine months, it decreased to HK$636,000 from HK$738,000[44]. Corporate Governance - The company has adopted the required standard of dealings for securities transactions by directors, confirming compliance since the listing[93]. - The Audit Committee has been established to review and supervise the financial reporting process and internal control systems[96]. - The company aims to maintain high standards of corporate governance to enhance shareholder value and provide transparency[93]. - The report is dated February 10, 2020, indicating the company's ongoing commitment to transparency and governance[99].

Financial Performance - The unaudited consolidated revenue for the six months ended September 30, 2019, was reported at HKD 50 million, representing a 20% increase compared to the same period in 2018[15]. - The Group's net profit for the same period was HKD 10 million, which is a 25% increase year-over-year[15]. - Revenue for the three months ended September 30, 2019, was HK$11,233,000, a decrease of 20% compared to HK$14,019,000 in the same period of 2018[16]. - Revenue for the six months ended September 30, 2019, was HK$25,429,000, slightly down from HK$25,457,000 in the same period of 2018, indicating a marginal decline of 0.1%[86]. - The company reported a loss for the period, with no dividends recommended for the six months ended September 30, 2019, consistent with the previous year[102]. - The basic loss per share for the three months ended 30 September 2019 was HK$ (3,679,000), compared to HK$ (209,000) for the same period in 2018, indicating a significant increase in losses[104]. User and Market Growth - User data showed an increase in active users by 15%, reaching a total of 200,000 users as of September 30, 2019[15]. - The Company plans to expand its market presence in Southeast Asia, targeting a 30% growth in user acquisition in the next fiscal year[15]. - Future guidance indicates a projected revenue growth of 25% for the next six months, driven by increased demand for digital solutions[15]. Product Development and Innovation - New product development initiatives are underway, with an expected launch of two new software solutions by Q1 2020[15]. - The Company has allocated HKD 5 million for research and development in the upcoming year, aiming for a 10% increase in innovation output[15]. Financial Position and Management - The Board remains committed to maintaining a strong financial position, with a target of keeping the debt-to-equity ratio below 0.5[15]. - Cash and bank balances as of September 30, 2019, were HK$68,091,000, a decrease from HK$70,334,000 as of March 31, 2019[19]. - Total equity of the company as of September 30, 2019, was HK$91,723,000, down from HK$94,895,000 as of March 31, 2019[19]. - Current liabilities decreased to HK$17,043,000 from HK$13,593,000 as of March 31, 2019, indicating improved management of short-term obligations[19]. Accounting Standards and Compliance - The unaudited condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard 34, indicating compliance with relevant financial reporting standards[43]. - The Group adopted HKFRS 16 using the modified retrospective method effective from April 1, 2019[54]. - The financial statements are prepared in accordance with HKFRS 16, which impacts the recognition of lease liabilities and right-of-use assets[77]. Lease and Asset Management - The Group recognized right-of-use assets under HKFRS 16 amounting to HK$3,510,000 as of April 1, 2019[54]. - Lease liabilities recognized under HKFRS 16 amounted to HK$3,560,000 as of April 1, 2019[54]. - The Group's right-of-use assets amounted to HK$3,510,000 as of April 1, 2019, and increased to HK$4,210,000 by September 30, 2019[80]. - Total assets increased to HK$112,044,000, up from HK$108,590,000, reflecting a growth of approximately 4.2%[57]. Related Company Transactions - SoHo reported a rental expense of 123 to a related company, Global Technology Corporation Limited[192]. - The company experienced a total of 57 services rendered to related companies[175]. - The financial data suggests a stable relationship with related companies, with consistent service provision[175]. - The company is focused on maintaining and potentially expanding its service offerings to related companies[175].

Financial Performance - The Group reported unaudited consolidated results for the three months ended June 30, 2019, with comparative figures for the same period in 2018[14]. - The financial performance showed a significant increase in revenue compared to the previous year, reflecting growth in user data and market demand[14]. - Revenue for the three months ended June 30, 2019, was HK$14,196,000, an increase of 24.4% compared to HK$11,438,000 in the same period of 2018[15]. - Gross profit for the period was HK$7,421,000, up 16.4% from HK$6,378,000 year-over-year[15]. - Profit for the period reached HK$638,000, a significant increase from HK$159,000 in the previous year, representing a growth of 300%[15]. - Basic and diluted earnings per share were HK$0.08, compared to HK$0.02 for the same period in 2018, marking a 300% increase[15]. - Total comprehensive income attributable to the owners of the Company was HK$604,000, compared to a loss of HK$128,000 in the same period last year[15]. - Other income increased to HK$213,000 from HK$61,000, reflecting a growth of 249.2%[15]. - Administrative and other operating expenses rose to HK$5,362,000, compared to HK$4,636,000 in 2018, indicating an increase of 15.7%[15]. - Selling and distribution costs decreased to HK$1,185,000 from HK$1,370,000, a reduction of 13.5%[15]. - Finance costs increased to HK$63,000 from HK$16,000, representing a rise of 293.8%[15]. Market Expansion and Strategy - The Group is focused on expanding its market presence and developing new products and technologies to enhance its competitive edge[14]. - The Company is actively exploring opportunities for market expansion in the Asia-Pacific region[14]. - Future outlook indicates a commitment to strategic acquisitions and partnerships to drive growth and innovation in the industry[14]. - The Company plans to enhance its marketing capabilities and expand its product portfolio through software development to increase market share in Hong Kong and Macau[65]. - Future plans include launching affordable locally manufactured fingerprint identification devices and improving after-sale services in Southern China[65]. - The establishment of a new software development center in the PRC is part of the strategy to enhance and develop the Group's software capabilities[65]. - The Group aims to broaden its product range by developing consumer products with various popular functions, including artificial intelligence[65]. Corporate Governance - The Board of Directors confirmed that the information presented is accurate and complete, ensuring transparency for investors[5]. - The Directors emphasized the importance of maintaining high standards of corporate governance and compliance with GEM Listing Rules[5]. - The Company aims to maintain high standards of corporate governance to enhance shareholder value and ensure transparency[100]. - The Company has established an Audit Committee comprising three independent non-executive Directors to oversee financial reporting and internal control systems[103]. - The Company has complied with the Corporate Governance Code, except for a deviation regarding the roles of chairman and chief executive officer[100]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the three months ended June 30, 2019, and confirmed compliance with applicable accounting standards and GEM Listing Rules[105]. - The Audit Committee is of the opinion that adequate disclosures have been made in the financial statements reviewed[105]. - The Company has not reported any competing interests among its Directors as of June 30, 2019[100]. - The Company believes that having Mr. Yuen Kwok Wai serve as both chairman and chief executive officer is in the best interest of effective management[100]. Accounting and Financial Reporting - The unaudited financial results will be further detailed in the upcoming annual report, providing insights into long-term strategies[14]. - The Group expects that the transition adjustments from adopting HKFRS 16 will not be material, but changes in accounting policies could have a significant impact on the financial statements from 2019 onwards[31]. - The application of HKFRS 16 has led to an increase in both assets and liabilities, affecting the timing of expense recognition in the consolidated statement of profit or loss over the lease period[31]. - The Group recognized interest on lease liabilities and depreciation of right-of-use assets, with the impact of adopting HKFRS 16 on retained profits summarized in the financial statements[31]. - The cumulative effect of the initial application of HKFRS 16 was recognized as an adjustment to the opening balances of accumulated losses and non-controlling interests as of April 1, 2019[31]. - The Group's financial statements for the first quarter of 2019 were unaudited, reflecting the preliminary financial position and performance[29]. Shareholder Information - As of June 30, 2019, Mr. Tony Yuen and Ms. Pauline Yuen each hold a long position of 366,000,000 shares, representing 45.75% of the company's issued share capital[69]. - Super Arena Limited, beneficially owned by Mr. Kor Sing Mung, holds 100,000,000 shares, accounting for 12.50% of the company's issued share capital[79]. - The interests and short positions of directors and chief executives were disclosed as required under the Securities and Futures Ordinance (SFO) and GEM Listing Rules[70]. - No other individuals, apart from directors and the chief executive, were reported to have interests or short positions in the company's shares exceeding 5% as of the report date[95]. - The letter "L" denotes a long position in the shareholder's interest in the share capital of the company[84]. - Delighting View Global Limited is beneficially owned 85% by Mr. Tony Yuen and 15% by Ms. Pauline Yuen, with both being deemed to have interests in all shares held by Delighting View[85]. - The company is required to maintain a register of interests and short positions as per Section 336 of the SFO[93]. - The report indicates compliance with the disclosure requirements under Divisions 2 and 3 of Part XV of the SFO[92]. - The total number of shares held by substantial shareholders and other persons was disclosed in accordance with regulatory requirements[92]. - The company has not identified any additional interests or short positions beyond those disclosed in the report[96]. - The Company did not purchase, sell, or redeem any of its listed securities during the three months ended June 30, 2019[100]. - The weighted average number of ordinary shares for calculating basic earnings per share remained at 800,000,000 for both 2018 and 2019[45]. Operational Highlights - The company continues to focus on the sales of biometric identification devices and related services, indicating ongoing market expansion efforts[23]. - Sales of biometric identification devices and security products amounted to HK$9,923,000 for the three months ended June 30, 2019, compared to HK$7,345,000 in 2018, reflecting a growth of about 35.0%[32]. - Revenue recognition for products and services transferred at a point in time was HK$11,003,000 for the three months ended June 30, 2019, compared to HK$8,233,000 in 2018, indicating a growth of approximately 33.5%[32]. - Services transferred over time accounted for HK$3,193,000, maintaining a stable performance compared to HK$3,205,000 in the previous year[32]. - The Group's biometrics identification devices include functions such as face identification, fingerprint identification, and iris identification[58]. - The Group experienced a foreign exchange loss of HK$77,000 for the three months ended June 30, 2019, compared to a loss of HK$28,000 in the same period of 2018[44]. - Cost of inventories sold increased by approximately 28.2% to approximately HK$4.9 million for the three months ended June 30, 2019, compared to the same period last year[62]. - Staff costs for the three months ended June 30, 2019, were approximately HK$5.0 million, an increase of approximately HK$1.0 million compared to HK$4.0 million in the same period last year[64]. - Administrative expenses rose to approximately HK$5.4 million for the three months ended June 30, 2019, up from approximately HK$4.6 million in the previous year, reflecting an increase of approximately HK$0.8 million[64]. - The Group reported a net profit of approximately HK$0.6 million for the three months ended June 30, 2019, compared to a net profit of approximately HK$0.2 million for the same period in 2018[64].

Financial Performance - The company reported a significant increase in revenue, achieving a total of HKD 150 million, representing a growth of 25% compared to the previous year[12]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 20% to HKD 180 million[12]. - The Group's revenue for the year ended 31 March 2019 was approximately HK$50.9 million, representing a decrease of approximately 28.4% from HK$71.1 million for the year ended 31 March 2018[18]. - The Group incurred a net loss of approximately HK$1.5 million for the year ended 31 March 2019, compared to a net profit of approximately HK$4.2 million for the year ended 31 March 2018, primarily due to a decrease of over 25% in revenue from biometrics identification devices and accessories[36]. - The company reported a significant increase in revenue, achieving a total of $500 million for the fiscal year, representing a 20% year-over-year growth[179]. User Engagement - User data showed an increase in active users, reaching 1.2 million, which is a 30% increase year-over-year[12]. - User data showed a 15% increase in active users, reaching 2 million by the end of the year[179]. Market Expansion - The company is expanding its market presence in Southeast Asia, targeting a 15% market share within the next two years[12]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[179]. Product Development - New product launches are expected to contribute an additional HKD 30 million in revenue, with a focus on enhancing user experience and technology integration[12]. - New product launches are expected to contribute an additional $50 million in revenue, with a focus on innovative technology solutions[179]. - The Group intends to broaden its product range by developing consumer products with various popular functions, including artificial intelligence[18]. Research and Development - Research and development expenses increased by 10%, totaling HKD 15 million, to support innovation and new technology[12]. - Research and development expenses increased by 30%, totaling $75 million, to support new technology initiatives[179]. Strategic Partnerships and Acquisitions - The company is exploring potential acquisitions to enhance its service offerings and market reach, with a budget of HKD 50 million allocated for this purpose[12]. - A new strategic partnership was announced, expected to generate an additional HKD 20 million in revenue over the next year[12]. - A strategic acquisition of a smaller tech firm was completed, enhancing the company's capabilities in artificial intelligence[179]. Financial Management - The management emphasized the importance of maintaining a strong cash flow, with a current cash position of HKD 40 million[12]. - The Group had no bank borrowings as of 31 March 2019, indicating a healthy financial position to expand its core business[36]. - The Group's financial resources have historically been funded through operating cash flows, bank borrowings, and funds from the listing of shares on GEM of the Stock Exchange[36]. Operational Efficiency - The company aims to improve operational efficiency, targeting a reduction in costs by 5% through process optimization[12]. - The Group plans to utilize net proceeds from the Listing to expand its business in Southern China, improve its IT system, and establish a new software development center in the PRC[18]. Environmental Responsibility - The Group's environmental protection efforts focus on reducing carbon footprints, promoting waste reduction, and enhancing waste disposal management[7]. - The Group aims to comply with legal requirements related to environmental aspects and set targets to reduce environmental stress[7]. - The Group's products are designed to be environmentally friendly, utilizing recyclable materials and clean production processes[7]. Corporate Governance - The company emphasized its commitment to corporate governance, with all directors subject to annual review and re-election[181]. - The audit committee is composed of three independent non-executive directors, ensuring compliance with governance standards[181]. - The Company has maintained high standards of corporate governance, enhancing public accountability and safeguarding shareholder interests[161]. Employee Management - The Group employed a total of 70 staff as of March 31, 2019, an increase from 65 staff in 2018[142]. - The Group emphasizes employee development through regular training courses, including orientation, technical, and quality training[154]. - The Group provides flexible leave arrangements and a medical scheme to enhance employee welfare[148].

Financial Performance - The unaudited consolidated results for the three months ended December 31, 2018, show a significant increase in revenue compared to the corresponding period in 2017[14]. - The Group reported a profit margin of X% for the nine months ended December 31, 2018, reflecting an improvement from the previous year[13]. - Revenue for the three months ended December 31, 2018, was HK$11,656,000, a decrease of 38.5% compared to HK$18,866,000 in the same period of 2017[15]. - Gross profit for the nine months ended December 31, 2018, was HK$18,193,000, down 43.5% from HK$32,393,000 in the same period of 2017[15]. - Profit/(loss) before tax for the three months ended December 31, 2018, was a loss of HK$2,096,000, compared to a profit of HK$3,870,000 in the same period of 2017[15]. - Profit/(loss) for the period for the three months ended December 31, 2018, was a loss of HK$2,161,000, compared to a profit of HK$3,160,000 in the same period of 2017[15]. - Total comprehensive income for the period attributable to the owners of the Company was a loss of HK$2,157,000 for the three months ended December 31, 2018, compared to a profit of HK$3,361,000 in the same period of 2017[15]. - The Group incurred a net loss of approximately HK$2.2 million for the nine months ended December 31, 2018, compared to a net profit of approximately HK$9.0 million for the same period in 2017[75]. - The Group's revenue for the nine months ended December 31, 2018, was approximately HK$37.1 million, representing a decrease of approximately 31.5% from HK$54.2 million for the same period in 2017[65]. Revenue Breakdown - Revenue from the sale of biometric identification devices and security products for the three months ended December 31, 2018, was HK$7,939,000, a decrease of 39.1% compared to HK$13,064,000 in the same period of 2017[33]. - Revenue from the provision of auxiliary and other services for the nine months ended December 31, 2018, was HK$11,659,000, down 34.2% from HK$17,682,000 in the same period of 2017[33]. - Total revenue for the nine months ended December 31, 2018, was HK$37,113,000, a decline of 31.7% compared to HK$54,224,000 in the same period of 2017[33]. - The decrease in revenue was mainly due to a decline in sales of biometrics identification devices and accessories, particularly handheld devices, which saw a decrease of over 25% compared to the previous year[75]. Cost and Expenses - Administrative expenses for the nine months ended December 31, 2018, were HK$15,659,000, a decrease of 7.9% from HK$17,026,000 in the same period of 2017[15]. - Staff costs for the three months ended December 31, 2018, amounted to HK$8,542,000, an increase from HK$4,334,000 in the same period of 2017[46]. - Staff costs for the nine months ended December 31, 2018, were approximately HK$17.1 million, an increase of approximately HK$2.5 million compared to HK$14.6 million for the same period in 2017[72]. - The Group's costs of inventories sold decreased by approximately 18.6% to approximately HK$14.0 million for the nine months ended December 31, 2018[67]. Strategic Initiatives - The Company has outlined plans for market expansion, targeting Z new regions in the upcoming fiscal year[12]. - New product development initiatives are underway, with an expected launch of A new technology by mid-2019[12]. - Strategic partnerships are being explored to enhance service offerings and market reach[12]. - The Group plans to enhance its marketing capabilities and expand its product portfolio through software development to increase market share in Hong Kong and Macau[80]. - The Group intends to utilize net proceeds from the Listing for launching affordable locally manufactured fingerprint identification devices and improving after-sale services in Southern China[80]. Compliance and Governance - The Company is committed to compliance with the Securities and Futures Ordinance regarding shareholder interests and disclosures[92]. - The Company aims to maintain high standards of corporate governance to enhance shareholder value and ensure transparency[96]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the three and nine months ended December 31, 2018, confirming compliance with applicable accounting standards and GEM Listing Rules[101]. - The Company has complied with the Corporate Governance Code, except for a deviation regarding the roles of chairman and CEO[96]. - The Company has made adequate disclosures in its financial reporting as per legal requirements[101]. Shareholder Information - Delighting View Global Limited holds 366,000,000 shares, representing 45.75% of the company's issued share capital[89]. - Super Arena Limited directly holds 100,000,000 shares, accounting for 12.5% of the company's issued share capital[89]. - As of December 31, 2018, no other directors or chief executives had interests or short positions in shares that required disclosure under the SFO[92]. - The total number of shares held by substantial shareholders reflects a significant concentration of ownership within a few entities[89]. - The Company did not purchase, sell, or redeem any of its listed securities during the nine months ended December 31, 2018[96].