Electric Vehicle Charging Business - The electric vehicle (EV) charging business generated approximately HKD 6,800,000 in revenue during the review year[13]. - The company successfully secured multiple projects for EV charging facilities in public and private parking lots across Hong Kong[13]. - Exclusive agreements were established for EV charging projects in various residential areas, covering over 5,000 parking spaces to expand the charging network[13]. - The global sales of electric vehicles accelerated during the pandemic, creating a favorable environment for the EV charging industry[13]. - The company acquired the EV charging business in August 2020 to ensure sustainable development and profitability growth[13]. - The company is positioned as a leading service provider in the EV charging market in Hong Kong, capitalizing on the rapid development of electric vehicles[13]. - The company is actively investing resources into the EV charging business to drive its growth amid challenging conditions[13]. - The global focus on carbon neutrality has led to increased government investments in EV infrastructure, including charging stations and smart grids[13]. - The company aims to leverage the opportunities presented by the growing demand for electric vehicles and related infrastructure[13]. - The company has successfully expanded its business into Cambodia, with the first phase involving the installation of chargers at 10 major shopping malls and gas stations[17]. - The company has secured multiple EV charging projects in high-end residential properties in Hong Kong, covering approximately 5,800 parking spaces[27]. - The company has established exclusive agreements for EV charging projects in seven residential areas in Hong Kong[27]. - The company is focusing on "destination charging" for home use and "opportunity charging" for users on the go, with a 30 kW DC charger installed at a shopping mall providing 100 km of range after 30 minutes of charging[30]. - The company is preparing to support the government in charging fee arrangements and hardware/software upgrades for public charging facilities[32]. - The company aims to enhance its software capabilities and quality technology to maintain a competitive edge in the EV charging market[17]. - The company is developing a smart parking system to monitor 1,800 electric vehicle chargers across multiple government parking lots, with completion expected in Q2 2022[33]. - The company is actively participating in government electric vehicle charging projects and has successfully secured multiple contracts for charging facilities[36]. - The company aims to expand into the Southeast Asian electric vehicle charging market, leveraging its experience in Hong Kong[36]. - Revenue from electric vehicle charging services includes direct sales of charging systems and rental income from public and private parking chargers[38]. Financial Performance - The group's revenue increased by approximately 34.5% from about HKD 40,900,000 for the nine months ended December 31, 2020, to about HKD 55,000,000 for the year ended December 31, 2021, primarily due to an increase in sales orders[41]. - Revenue from commercial printing services rose approximately 62.3% from about HKD 19,000,000 for the nine months ended December 31, 2020, to about HKD 30,900,000 for the year ended December 31, 2021, driven by increased sales orders from existing customers[43]. - Revenue from financial printing services decreased by approximately 21.6% from about HKD 20,200,000 for the nine months ended December 31, 2020, to about HKD 15,800,000 for the year ended December 31, 2021, due to a reduction in client transactions and IPO-related work[44]. - Revenue from electric vehicle charging systems reached approximately HKD 6,400,000 for the year ended December 31, 2021, compared to about HKD 500,000 for the nine months ended December 31, 2020[46]. - The gross profit decreased by approximately 13.3% from about HKD 8,000,000 for the nine months ended December 31, 2020, to about HKD 7,000,000 for the year ended December 31, 2021, with a gross margin decline from approximately 19.6% to 12.7%[54]. - Administrative and operating expenses increased by approximately 58.8% from about HKD 41,900,000 for the nine months ended December 31, 2020, to about HKD 66,600,000 for the year ended December 31, 2021, mainly due to increased employee costs from the expansion of the electric vehicle charging business[58]. - Research and development expenses increased by approximately 12.6% from about HKD 1,500,000 for the nine months ended December 31, 2020, to about HKD 1,700,000 for the year ended December 31, 2021[59]. - Financing costs rose by approximately 7.6% from about HKD 1,100,000 for the nine months ended December 31, 2020, to about HKD 1,200,000 for the year ended December 31, 2021[60]. - Other income decreased by approximately 46.2% from about HKD 6,700,000 for the nine months ended December 31, 2020, to about HKD 3,600,000 for the year ended December 31, 2021, primarily due to a reduction in recognized government subsidies[56]. - The group recorded a total loss and comprehensive expenses of approximately HKD 62,000,000 for the year ended December 31, 2021, compared to HKD 30,500,000 for the nine months ended December 31, 2020[63]. - As of December 31, 2021, the group's cash and bank balances were approximately HKD 16,600,000, down from HKD 33,200,000 as of December 31, 2020[65]. - The debt-to-equity ratio as of December 31, 2021, was approximately 108.0%, compared to 104.6% as of December 31, 2020[63]. - The capital-to-debt ratio increased to approximately 135.0% as of December 31, 2021, from 56.9% as of December 31, 2020, due to an increase in loans from shareholders and lease liabilities[63]. - The group did not have any significant investments or capital assets planned as of December 31, 2021[73]. - The net proceeds from the first placement of shares amounted to approximately HKD 19,400,000, intended for the development of electric vehicle charging business and operational funding[76]. - The group’s operating cash flow was primarily funded by revenue generated from its business operations, available cash, and bank borrowings[65]. - The group faced minimal foreign exchange risk as most transactions, assets, and liabilities were denominated in HKD[67]. - The group had no significant contingent liabilities as of December 31, 2021[69]. - There were no major acquisitions or disposals of subsidiaries or associates during the year ended December 31, 2021[74]. - The company completed the first subscription agreement on March 10, 2021, issuing 69,625,000 new ordinary shares at a subscription price of HKD 0.40 per share, raising approximately HKD 27,900,000 in total proceeds[79]. - The net proceeds from the first subscription amount to approximately HKD 27,800,000, intended for the development of electric vehicle charging business, maintenance of commercial and financial printing operations, and general corporate purposes[79]. - The second subscription agreement was completed on December 6, 2021, issuing 8,000,000 new ordinary shares at a subscription price of HKD 0.62 per share, raising approximately HKD 5,000,000 in total proceeds[80]. - The net proceeds from the second subscription amount to approximately HKD 4,900,000, which will be used for general working capital of the group[80]. - The total gross and net proceeds from the first and second subscriptions amount to approximately HKD 52,700,000 and HKD 52,100,000, respectively[85]. - As of December 31, 2021, the net proceeds of HKD 52,100,000 have been fully utilized, with approximately HKD 33,000,000 allocated to the development of electric vehicle charging business[85]. Management and Governance - The company is led by CEO Ye Zhaokang, who has over 10 years of management experience and previously held executive roles in various organizations[98]. - CFO Zhang Tingbang has over 15 years of experience in financial operations and is a senior member of both the Institute of Chartered Accountants in England and Wales and the Hong Kong Institute of Certified Public Accountants[99]. - The company has a strong management team with diverse backgrounds in various industries, including electric vehicle charging and retail[101][103][105]. - The company is focused on expanding its electric vehicle charging business, with a dedicated team for international market development and technology advancement[103]. - The company has established a solid governance framework in accordance with the GEM Listing Rules of the Hong Kong Stock Exchange[111]. - Mr. Ye Zhaokang was appointed as the CEO on November 1, 2021, while Mr. Liang Zihau stepped down from the CEO position but remains as Co-Chairman[113]. - The board of directors consists of experienced individuals ensuring a balance of power and authority, with Mr. Liang primarily responsible for overall leadership and business development[112]. - The company has adopted trading standards in compliance with GEM Listing Rules, confirming that all directors have adhered to these standards since January 1, 2021[117]. - The board has established three special committees (Audit, Remuneration, and Nomination) to oversee specific aspects of the company's affairs[125]. - The board of directors is responsible for ensuring the company's continuous operation and managing risks associated with its business[120]. - As of December 31, 2021, Mr. Liang attended 11 out of 11 board meetings, demonstrating active participation in governance[123]. - The company has a policy in place for the re-election of directors, ensuring that one-third of the board retires at each annual general meeting[114]. - The board has reviewed and discussed the effectiveness of corporate governance policies, expressing satisfaction with their implementation[120]. - The company has committed to maintaining compliance with GEM Listing Rules regarding independent non-executive directors[119]. - The board's main duties include approving strategic plans, major operational projects, and significant investment decisions[120]. - The audit committee reviewed and recommended the approval of the audited consolidated financial statements for the year ended December 31, 2021[128]. - The audit committee held five meetings from January 1, 2021, to the date of the report[127]. - The remuneration committee reviewed the remuneration and performance of directors and senior management, holding one meeting during the reporting period[130]. - The nomination committee assessed the independence of independent non-executive directors and reviewed the board's structure, holding one meeting during the reporting period[131]. - The company adopted a board diversity policy based on various criteria, including gender, age, and professional experience[134]. - Independent non-executive directors have a fixed term of three years, with the possibility of renewal[135]. - The company provided formal training for newly appointed directors to ensure understanding of operations and responsibilities[137]. - Directors participated in training sessions and reviewed relevant materials regarding their duties and responsibilities[138]. - The audit committee ensured compliance with applicable accounting standards and GEM listing rules[128]. - The remuneration committee established a transparent process for determining the remuneration of directors and senior management[130]. - The remuneration for directors and senior management ranges from 0 to 1,000,000 HKD for 12 individuals, 1,000,001 to 1,500,000 HKD for 3 individuals, and 2,000,001 to 2,500,000 HKD for 1 individual[141]. - The company paid 800,000 HKD to its auditor, Deloitte, for audit services for the year ended December 31, 2021[146]. - The company has not established an internal audit function as of December 31, 2021, but will continue to review the need for such a function annually[150]. - The company has implemented risk management procedures, including risk identification, assessment, and mitigation measures, to ensure the protection of shareholder investments[149]. - The board of directors is responsible for overseeing the internal control and risk management systems, which are reviewed at least annually for effectiveness[147]. - The company has adopted a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[156]. - The company has established multiple channels for communication with shareholders, including its website and printed corporate communications[157]. - The remuneration committee meets at least once a year to discuss remuneration matters, including the compensation of directors and senior management[142]. - The company has a clear governance structure and has delegated risk management responsibilities to the audit committee[147]. - The company ensures confidentiality of sensitive information through strict compliance measures and limited access to insider information[152]. Legal and Regulatory Compliance - The group did not purchase, sell, or redeem any listed securities during the year ended December 31, 2021[199]. - The board does not recommend the payment of a final dividend for the year ended December 31, 2021[200]. - The company issued a total of 69,625,000 subscription shares at a price of HKD 0.40 per share on March 10, 2021, to related parties[196]. - A total of 45,316,000 subscription shares were issued at a price of HKD 0.62 per share as part of a debt settlement agreement with creditors[198]. - The company has no significant transactions or arrangements involving directors or related entities for the year ended December 31, 2021[193]. - The independent non-executive directors confirmed their independence in accordance with GEM Listing Rules[191]. - The company has not established any stock-linked agreements that would lead to the issuance of shares during the year ended December 31, 2021[194]. - The company’s capital structure changes and details are available in the financial statements notes[185]. - The group has not experienced any significant legal or regulatory violations impacting its business as of December 31, 2021[171]. - The company emphasizes environmental protection and compliance with relevant laws and regulations in its operations[171].

() Cornerstone Technologies Holdings Limited 基石科技控股有限公司 ( 於開曼群島註冊成立之有限公司) 第三季度報告 2021 混合產品 FSC FSC" C007234 www.fsc.org 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM之定位，乃為相比起其他在聯交所上市之公司帶有較高投資風險之中小型公司提 供一個上市之市場。有意投資之人士應了解投資於該等公司之潛在風險，並應經過審 慎周詳之考慮後方作出投資決定。 由於GEM上市公司一般為中小型公司，在GEM買賣之證券可能會較在聯交所主板買 賣之證券承受較大之市場波動風險，同時無法保證在 GEM買賣之證券會有高流通量之 市場。 香港交易及結算所有限公司及香港聯合交易所有限公司對本報告之內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示概不就因本報告全部或任何部分內 容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 本報告的資料乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有 關基石科技控股有限公司（「本公司」）的資料；本公司董事（「董事」）願就本報告的資料 共同及 ...

Electric Vehicle Charging Business - Cornerstone Technologies Holdings Limited has launched its electric vehicle charging business through the acquisition of Cornerstone Electric Vehicle Charging Services Limited in August 2020[20]. - The company has established a competitive market position as one of the main electric vehicle charging service providers in Hong Kong, recognized by a renowned Japanese automobile manufacturer as an authorized electric vehicle charger supplier[20]. - As of June 30, 2021, the company has secured multiple electric vehicle charging projects in high-end residential areas in Hong Kong, leveraging attractive charging fee plans[22]. - The Hong Kong government aims to install at least 150,000 electric vehicle charging points in private residential and commercial buildings by 2025, with a funding cap of HKD 2 billion for the EV Charging at Home Subsidy Scheme[22]. - The EV Charging at Home Subsidy Scheme has received applications covering no less than 74,000 parking spaces, reaching the funding limit by May 2021[22]. - In April 2021, the company’s new electric vehicle charger, Chargic, won the Green Good Design Award for its use of 30-50% recycled polycarbonate[26]. - The company has installed a 30 kW DC charger at the Shek Yam Plaza, allowing electric vehicles to travel 100 kilometers after a 30-minute charge[26]. - Cornerstone Technologies Holdings Limited has entered into a cooperation agreement with Hyundai Motor Hong Kong Limited for cross-promotion of its electric vehicle chargers and Hyundai's Kona electric vehicle[23]. - The company’s R&D department, located in Hong Kong, is supported by a team with extensive experience in mechanical and electrical engineering, driving innovation and maintaining competitive advantages[20]. - The company is focused on providing "destination charging" solutions for users to charge their electric vehicles at home, while also offering "opportunity charging" for users on the go[26]. - The company is actively supporting the government's EV charging initiatives and has completed the installation of DC charging facilities at a designated bus depot, capable of delivering up to 200 kW[29]. - The company plans to complete the development of a smart parking system by the first quarter of 2022, which will monitor the operation of 1,800 EV chargers[29]. - The EV market share of new private car registrations increased from 12.4% in 2020 to 18.4% in the first five months of 2021, indicating a growing demand for electric vehicles[33]. - The company aims to innovate continuously to support the rapidly expanding electric vehicle charging market[33]. - Total revenue from the electric vehicle charging business reached HKD 2,996 thousand for the six months ended June 30, 2021, compared to HKD 1,617 thousand for the same period in 2020, representing an increase of 85.0%[182]. Financial Performance - Total revenue for the six months ended June 30, 2021, increased by approximately 21.5% to HKD 33.7 million from HKD 27.7 million in the same period of 2020[44][45]. - Revenue from commercial printing services rose by approximately 43.2% to HKD 19.2 million, driven by increased sales orders from existing customers[46]. - Revenue from financial printing services decreased by approximately 18.2% to HKD 10.4 million, reflecting a decline in demand[48]. - Revenue from other services fell by approximately 31.0% to HKD 1.1 million, indicating challenges in this segment[49]. - The company reported revenue of HKD 33,717,000, an increase of 21.5% compared to HKD 27,749,000 for the same period in 2020[147]. - Gross profit for the same period was HKD 7,547,000, representing a significant increase from HKD 3,100,000 in the prior year, marking a gross margin improvement[147]. - The company incurred a loss before tax of HKD 26,847,000 for the six months ended June 30, 2021, compared to a loss of HKD 14,782,000 in the same period of 2020, indicating a worsening financial performance[147]. - The company reported a net loss of HKD 56,779,000 for the six months ended June 30, 2021, compared to a loss of HKD 5,277,000 for the same period in 2020[168]. - The company reported a total comprehensive loss of HKD 14,063,000 for the period[168]. - The company reported a loss of HKD 26,504 thousand for the six months ended June 30, 2021, compared to a loss of HKD 14,169 thousand for the same period in 2020[187]. - The basic and diluted loss per share for the six months ended June 30, 2021, was HKD 4.60, compared to HKD 3.20 for the same period in 2020, reflecting increased losses per share[150]. - The basic loss per share for the six months ended June 30, 2021, was HKD 0.046, compared to HKD 0.032 for the same period in 2020, reflecting a 43.8% increase in loss per share[200]. - The company incurred a net cash used in operating activities of HKD 23,622,000 for the six months ended June 30, 2021, compared to HKD 3,856,000 in the prior year[168]. Operational Efficiency and Investments - The company has upgraded its IT servers and purchased new equipment and software to improve operational efficiency[104]. - The company plans to enhance its financial printing services and has invested in new software and hardware[104]. - The company has committed HKD 20 million to explore sustainable new business opportunities as part of its strategic initiatives[112]. - The company has emphasized the importance of operational efficiency improvements for long-term growth[112]. - The company has hired several sales and operational personnel to support business growth[104]. - The company invested HKD 1,081,000 in property, plant, and equipment during the reporting period[168]. - The company incurred depreciation expenses of HKD 3,270,000 for property, plant, and equipment for the six months ended June 30, 2021, compared to HKD 2,591,000 in 2020, marking a rise of 26.2%[1]. Shareholder Information - The major shareholder, Global Fortune, holds 235,603,225 shares, representing 39.28% of the issued share capital[135]. - The second major shareholder, Guan Shuang Limited, also holds 81,000,000 shares, accounting for 13.50% of the issued share capital[135]. - The total number of shares held by the directors and senior management in the company and its associated corporations includes 30,302,703 shares, which is 5.05% of the issued share capital[124]. - Wu Jianwei, a director, holds 235,603,225 shares, representing 39.28% of the issued share capital[124]. - Liang Zihao, another director, also holds 235,603,225 shares, accounting for 39.28% of the issued share capital[124]. - Liu Wei'en, a director, holds 30,302,703 shares, which is 5.05% of the issued share capital[124]. - Pan Wenyuan, a director, holds 23,872,000 shares, representing 3.98% of the issued share capital[124]. - The company has not disclosed any other individuals or entities holding significant interests in its shares as of June 30, 2021[138]. - The company’s directors and senior management do not have any other interests or short positions in the company’s shares or related securities as of June 30, 2021[133]. Compliance and Governance - The board of directors has confirmed compliance with the GEM Listing Rules regarding securities trading standards since January 1, 2021[119]. - The company has not established any arrangements for directors to profit from acquiring shares or debt securities of the company or any related entities during the reporting period[121]. - The company has maintained adherence to all applicable corporate governance code provisions during the six months ended June 30, 2021[115]. - The company confirmed compliance with non-competition agreements, ensuring no conflicts of interest with its major shareholders[141].

Financial Performance - Revenue for the first quarter of 2021 was HKD 14,389,000, representing a 32.3% increase from HKD 10,899,000 in the same period of 2020[7] - Gross profit for the first quarter of 2021 was HKD 2,790,000, compared to a gross loss of HKD 983,000 in the first quarter of 2020[7] - The company reported a loss before tax of HKD 12,370,000, which is a 41.5% increase from a loss of HKD 8,763,000 in the previous year[7] - Basic and diluted loss per share for the first quarter of 2021 was HKD 2.26, compared to HKD 1.98 in the same period of 2020[7] - The total comprehensive loss for the period was HKD 12,336,000, compared to HKD 8,650,000 in the first quarter of 2020[7] - The group reported a loss of HKD 12,336,000 for the period, compared to a loss of HKD 7,919,000 in the same period last year[22] - The company reported a loss attributable to shareholders of HKD 12,336,000 for the three months ended March 31, 2021, compared to a loss of HKD 8,733,000 for the same period in 2020, representing a year-over-year increase in loss of approximately 41%[37] - The total comprehensive loss for the three months ended March 31, 2021, was approximately HKD 12,300,000, compared to HKD 8,700,000 for the same period in 2020[97] Revenue Breakdown - For the three months ended March 31, 2021, the total revenue was HKD 14,389,000, an increase of 32.5% compared to HKD 10,899,000 for the same period in 2020[17] - The printing business generated revenue of HKD 13,763,000, up from HKD 10,899,000, while the electric vehicle charging business contributed HKD 626,000[23] - Revenue from commercial printing services increased by 60.4% from approximately HKD 6,000,000 to approximately HKD 9,700,000 for the three months ended March 31, 2021[60] - Revenue from financial printing services decreased by 7.0% from approximately HKD 3,400,000 to approximately HKD 3,200,000 for the same period[60] - Total revenue for the printing business increased by approximately 26.3% from HKD 10,900,000 to HKD 13,800,000 for the three months ended March 31, 2021[71] - The electric vehicle charging business generated approximately HKD 578,000 from sales of electric vehicle charging systems and HKD 48,000 from rental income for the three months ended March 31, 2021[71] Cost and Expenses - The cost of services for the printing business was HKD 11,100,000, while the electric vehicle charging business incurred costs of HKD 499,000[23] - Employee costs, including director remuneration, totaled HKD 12,119,000, significantly higher than HKD 7,919,000 in the previous year[32] - Other income for the period was HKD 218,000, a decrease from HKD 892,000 in the prior year[27] - Financing costs amounted to HKD 351,000, slightly lower than HKD 413,000 in the same period last year[28] - The group incurred depreciation expenses of HKD 1,629,000 for property, plant, and equipment, compared to HKD 1,209,000 in the previous year[32] - Administrative and other operating expenses increased by approximately 90.8% from HKD 7,600,000 to HKD 14,500,000, primarily due to additional costs related to equity-settled share-based payments and electric vehicle charging business[92] - Sales expenses decreased from approximately HKD 689,000 to HKD 574,000, a reduction of about 16.7% due to lower salaries[91] Shareholder and Equity Information - The company granted 28,428,000 share options under its share option scheme during the three months ended March 31, 2021, compared to none in the same period of 2020[40] - The fair value of the share options granted was estimated at HKD 8,811,000 using the binomial option pricing model[42] - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2021, consistent with no dividend declared in the same period of 2020[46] - Major shareholder Global Fortune holds 235,603,225 shares, representing 39.28% of the issued share capital[129] - The company’s major shareholders include Guan Shuang Limited and Cai Bei Limited, each holding 81,000,000 shares, representing 13.50% of the issued share capital[129] - As of March 31, 2021, the company’s directors and senior management hold significant interests in the company’s shares and related securities[118] Business Operations and Strategy - The company is primarily engaged in providing printing, typesetting, translation services, and electric vehicle charging business in Hong Kong[13] - The company aims to expand its market presence and enhance its service offerings in the coming quarters[6] - The management is focused on improving operational efficiency and reducing costs to mitigate losses[6] - Future product development and technological advancements are being prioritized to drive growth[6] - The company plans to become a major market participant in Hong Kong's electric vehicle charging sector, aiming for a vision of "zero carbon emissions, fresh air, and smart cities" in the coming years[61] - The company has entered 20 parking lots under the Hong Kong Housing Authority, some equipped with license plate recognition systems to manage parking services more effectively[56] - The company is focused on research and development to enhance competitiveness in maintenance services and battery recycling for electric vehicles[56] Compliance and Governance - The company has adopted trading standards for directors in compliance with GEM Listing Rules, confirming adherence since January 1, 2021[110] - The company has no arrangements for directors to profit from acquiring shares or debt securities of the company or any other corporation during the reporting period[114] - The audit committee has confirmed that the financial statements for the quarter have been prepared in accordance with applicable accounting standards[139] - The company is committed to compliance with all relevant regulations and has established robust internal controls to manage risks effectively[139] Future Outlook - The company has projected a revenue growth of 10% for the next quarter, aiming for HKD 37.4 million[135] - The company is investing HKD 5 million in R&D for new product development, focusing on enhancing user experience and technology integration[135] - Market expansion efforts include entering two new regions, which are expected to contribute an additional HKD 3 million in revenue by Q3 2021[135] - The company has completed a strategic acquisition of a tech startup for HKD 15 million, aimed at bolstering its technological capabilities[135] - The company has maintained a strong cash position with HKD 50 million in cash reserves, providing flexibility for future investments[135]

Electric Vehicle Charging Business - The group acquired an electric vehicle charging business in August 2020, recognizing the importance of carbon neutrality as a global focus since 2016[22]. - The electric vehicle market is thriving, and management's goal is to seize opportunities for further development supported by government policies[25]. - The acquisition of Cornerstone Electric Vehicle Charging Services Limited was completed on August 4, 2020, making it a wholly-owned subsidiary, and its financial performance is consolidated into the group's results[29]. - Cornerstone Electric Vehicle Charging is recognized as a major provider of electric vehicle charging solutions in Hong Kong, having been appointed as a licensed supplier by a renowned Japanese automobile manufacturer[30]. - The group won contracts for the installation of 153 chargers at Kwai Fong and Shek Mei Tsui Municipal Parking Lots, part of a HKD 120 million budget to expand the public charging network[33]. - A total of 94 chargers at Kwai Fong Parking Lot are equipped with a power load management system, maximizing available power supply without increasing electrical load[34]. - The group is expanding its footprint with the construction of an outdoor fast charging station in Mui Wo, Lantau Island, set to open to the public in April 2021[35]. - The group established a large charging station at the border with over 120 chargers to facilitate cross-border commuters[37]. - The group plans to leverage opportunities in the electric vehicle charging business to become a key market player in achieving the vision of "zero carbon emissions, fresh air, and smart city" in Hong Kong[41]. - The company is focused on the continuous development of electric vehicle charging technology, leveraging over 13 years of industry experience[105]. - The company has established a reputation for providing advanced electric vehicle charging products and comprehensive solutions within the industry[105]. - The company has been involved in significant research and development activities, collaborating with government officials and industry stakeholders to promote the electric vehicle charging sector[105]. - The company has a strategic focus on market expansion and technological innovation in the electric vehicle sector[105]. Financial Performance - Revenue from commercial printing services for the reporting period was approximately HKD 19 million, down from HKD 36.1 million for the year ended March 31, 2020[39]. - Revenue from financial printing services for the reporting period was approximately HKD 20.2 million, down from HKD 25 million for the year ended March 31, 2020[39]. - Total revenue from the printing business for the nine months ended December 31, 2020, was HKD 40.3 million, compared to HKD 64.3 million for the year ended March 31, 2020[44]. - The group's revenue for the nine months ended December 31, 2020, was approximately HKD 40,900,000, compared to approximately HKD 64,300,000 for the year ended March 31, 2020, representing a decrease of about 36.5%[45]. - Revenue from commercial printing services for the nine months ended December 31, 2020, was approximately HKD 19,000,000, down from approximately HKD 36,100,000 for the year ended March 31, 2020, indicating a decline of about 47.4%[46]. - Revenue from financial printing services for the nine months ended December 31, 2020, was approximately HKD 20,200,000, compared to approximately HKD 25,000,000 for the year ended March 31, 2020, reflecting a decrease of about 19.6%[48]. - Revenue from other services for the nine months ended December 31, 2020, was approximately HKD 1,100,000, down from approximately HKD 3,200,000 for the year ended March 31, 2020, a decline of about 65.6%[49]. - The company recorded a total comprehensive loss of approximately HKD 30.5 million for the nine months ended December 31, 2020, compared to a loss of approximately HKD 16.3 million for the year ended March 31, 2020[66]. - The loss situation was primarily due to a decrease in customer orders for printing services, driven by increasing environmental concerns and the impact of the COVID-19 pandemic[66]. Management and Governance - The company is committed to corporate governance practices in accordance with the GEM Listing Rules of the Hong Kong Stock Exchange[115]. - The board consists of experienced individuals, with half being independent non-executive directors, ensuring a balance of power and authority[116]. - The board has established three special committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee to oversee specific aspects of the company's affairs[127]. - The company has complied with GEM Listing Rules regarding the independence of its non-executive directors[122]. - The board held a total of 8 meetings, with all executive directors attending all meetings[125]. - The board is responsible for ensuring the company's continuous operation and managing risks effectively[123]. - The company has adopted internal guidelines that require board approval for significant operational projects and major investments[123]. - The Audit Committee reviewed and recommended the approval of the audited consolidated financial statements for the nine months ended December 31, 2020, and the interim results for the six months ended September 30, 2020[130]. - The Audit Committee held four meetings from April 1, 2020, to the date of the report, ensuring compliance with applicable accounting standards and GEM listing rules[129]. - The Remuneration Committee reviewed the remuneration policies for directors and senior management, holding three meetings during the reporting period[132]. - The Nomination Committee assessed the independence of independent non-executive directors and reviewed the board's structure, holding three meetings in the reporting period[134]. - The company has adopted a board diversity policy, considering factors such as gender, age, and professional experience in the election of board members[135]. - Independent non-executive directors are appointed for a fixed term of three years, with provisions for re-election and independence confirmation[136]. - The company provided formal and comprehensive training for newly appointed directors to ensure understanding of operations and responsibilities[138]. Employee and Talent Management - The group had 149 employees in Hong Kong, an increase from 112 employees as of March 31, 2020[177]. - The group has implemented a stock option plan to attract and retain talent[177]. - The company has made significant progress in hiring operational staff to support business growth[83]. - The company is focused on retaining top industry talent to ensure continued growth and innovation[83]. - The company has hired several experienced sales personnel to strengthen customer relationships and support business growth[83]. Compliance and Risk Management - The company is committed to environmental protection and compliance with relevant laws and regulations[172][173]. - The company has established a risk management system that includes risk identification, assessment, and mitigation measures[149]. - The board confirmed the effectiveness of the internal control and risk management systems as of December 31, 2020[149]. - The company has not established an internal audit function as per the code provisions but will continue to review its necessity annually[150]. - The company’s audit committee has reviewed the internal control system and found it effective and sufficient[149]. Shareholder Relations and Dividends - The company has adopted a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[156]. - The board does not recommend the distribution of a final dividend for the nine months ended December 31, 2020[182]. - The group has adopted a dividend policy that allows for cash or stock dividends, subject to board discretion and shareholder approval[180]. - The group has no distributable reserves as of December 31, 2020[185]. Acquisitions and Investments - The company plans to allocate HKD 20,000,000 for exploring sustainable new business opportunities, with HKD 15,000,000 already utilized for the acquisition of an electric vehicle charging business[89]. - There were no major acquisitions or disposals of subsidiaries or associates during the nine months ended December 31, 2020[77]. - The net proceeds from the initial public offering in May 2018 amounted to approximately HKD 41,000,000 after deducting underwriting commissions and related expenses[84]. - As of December 31, 2020, the company had utilized HKD 34,606,000 of the net proceeds, leaving an unutilized balance of HKD 6,394,000[86].

Revenue Performance - Revenue from commercial printing services decreased by approximately 32.9% from HKD 21.9 million to HKD 14.7 million for the six months ended September 30, 2020[15]. - Revenue from financial printing services increased by approximately 2.2% from HKD 13.8 million to HKD 14.1 million for the same period[15]. - Total revenue from the printing business decreased by approximately 19.9% to HKD 29,300,000 from HKD 36,600,000 year-on-year[28]. - Revenue for the six months ended September 30, 2020, decreased by approximately 13.1% to HKD 7,300,000 from HKD 8,400,000 for the same period in 2019[42]. - The company's revenue for the six months ended September 30, 2020, was HKD 12,533,000, a decrease of 22.5% compared to HKD 16,132,000 for the same period in 2019[104]. - The printing business generated revenue of HKD 29,312,000, while the electric vehicle charging business contributed HKD 71,000, resulting in a total revenue of HKD 29,383,000[152]. Electric Vehicle Charging Business - The acquisition of Cornerstone Electric Vehicle Charging was completed on August 4, 2020, making it a wholly-owned subsidiary and its financial performance is consolidated into the group's results[12]. - Cornerstone Electric Vehicle Charging is recognized as a licensed electric vehicle charger supplier by a prestigious Japanese automobile manufacturer, affirming the quality of its products[18]. - The company focuses on developing comprehensive charging solutions for electric vehicles, including central management systems and electronic payment integration systems[18]. - Revenue from the electric vehicle charging business was approximately HKD 71,000, contributing about 0.2% to the group's total revenue[19]. - The company aims to support at least 3,000 private parking spaces with its electric vehicle charging solutions before the end of the EV charging subsidy program[22]. - The company is focused on expanding its electric vehicle charging services and developing various payment systems for major parking lots[101]. Financial Performance and Losses - The total loss attributable to owners for the six months ended September 30, 2020, was approximately HKD 12,300,000, compared to HKD 4,200,000 for the same period in 2019[51]. - The group reported a total segment loss of HKD 12,331,000 for the six months ended September 30, 2020, compared to a loss of HKD 4,159,000 for the same period in 2019[152]. - The company reported a loss before tax of HKD 7,493,000, which is a significant increase from a loss of HKD 3,641,000 in the prior year[104]. - Total comprehensive loss for the period was HKD 7,001,000, compared to a loss of HKD 3,240,000 in the same period last year[106]. - Basic and diluted loss per share was HKD 1.50, compared to HKD 0.75 for the same period in 2019[106]. Costs and Expenses - The service cost for the printing services decreased by approximately 25.9% to HKD 20,900,000 from HKD 28,200,000 year-on-year[36]. - Selling expenses decreased by approximately 30.4% to HKD 1,600,000 from HKD 2,300,000 for the six months ended September 30, 2020[44]. - Administrative and other operating expenses increased by approximately 81.5% to HKD 19,600,000 from HKD 10,800,000 for the six months ended September 30, 2020[46]. - Employee costs, including directors' remuneration, totaled HKD 15,362,000 for the six months ended September 30, 2020, a decrease from HKD 18,788,000 for the same period in 2019[162]. Assets and Liabilities - As of September 30, 2020, total borrowings amounted to approximately HKD 38,700,000, an increase from HKD 35,900,000 as of March 31, 2020[53]. - Total assets as of September 30, 2020, amounted to HKD 139,828,000, an increase from HKD 126,696,000 as of March 31, 2020[155]. - Total liabilities increased to HKD 58,232,000 as of September 30, 2020, compared to HKD 51,620,000 as of March 31, 2020[155]. - The non-current liabilities due after 12 months were HKD 21,595,000, down from HKD 25,747,000[188]. Cash Flow and Liquidity - The company reported a net decrease in cash and cash equivalents of HKD 22,473,000, compared to a decrease of HKD 2,370,000 in the same period last year[115]. - The cash and cash equivalents at the end of the period were HKD 26,293,000, down from HKD 59,775,000 in 2019, indicating a significant liquidity contraction[115]. - The net cash generated from operating activities for the six months ended September 30, 2020, was HKD 997,000, a decrease of 81.12% compared to HKD 5,297,000 in 2019[115]. - Cash used in investing activities amounted to HKD 17,496,000, an increase of 194.66% from HKD 5,967,000 in the previous year, primarily due to the acquisition of subsidiaries[115]. Corporate Governance and Ownership - The company has adhered to all applicable corporate governance code provisions as of September 30, 2020[76]. - The board consists of experienced individuals, with half being independent non-executive directors, ensuring a balance of power and authority[76]. - The company has established a non-competition agreement with major shareholders, ensuring no engagement in competitive businesses[96]. - The company has a significant ownership concentration, with the top three shareholders collectively holding 88.23% of the issued share capital[91]. Strategic Plans and Future Outlook - The company plans to explore sustainable new business opportunities due to uncertainties in the financial printing industry[21]. - The company is actively exploring strategic options for potential mergers and acquisitions to enhance its market position[114]. - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[114].

| --- | --- | |----------------------------------------------------------|------------------------------| | Elegance Commercial and Financial Printing Group Limited | | | | | | | 精雅商業財經印刷集團有限公司 | | | | First Quarterly Report 2020/2021 Elegance Commercial and Financial Printing Group Limited 精雅商業財經印刷集團有限公司 （於開曼群島註冊成立之有限公司） 股份代號：8391 第一季度報告 2020/2021 MIX F FSC FSC" C007234 www.lsc.org 香港聯合交易所有限公司（「聯交所」）GEM 的特色 二零二零年╱二零二一年第一季度報告 GEM 的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上 市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並 應經過審 ...

Revenue Performance - The group's revenue for the year ended March 31, 2020, was approximately HKD 64.3 million, a decrease of about 13.1% compared to HKD 74 million for the year ended March 31, 2019[12]. - The decline in revenue was primarily due to increased environmental concerns, the rise of digital information, and the impact of the COVID-19 pandemic, which adversely affected the economic environment and operational conditions[12]. - The group's revenue decreased by approximately 13.1% from about HKD 74,000,000 for the year ended March 31, 2019, to about HKD 64,300,000 for the year ended March 31, 2020[25]. - Revenue from commercial printing services fell by about 22.4% from approximately HKD 46,500,000 to about HKD 36,100,000 during the same period[26]. - Revenue from financial printing services decreased by about 4.9% from approximately HKD 26,300,000 to about HKD 25,000,000[27]. - Revenue from other services increased by approximately 172.8% from about HKD 1,200,000 to about HKD 3,200,000, attributed to an increase in independent sales orders[28]. Cost and Expenses - Service costs increased by about 2.1% from approximately HKD 53,800,000 to about HKD 54,900,000, mainly due to increased subcontracting costs[29]. - Gross profit decreased by approximately 53.7% from about HKD 20,200,000 in 2019 to about HKD 9,300,000 in 2020, with a gross margin decline from 27.3% to 14.5% due to reduced revenue from commercial printing services[31]. - Selling expenses rose by approximately 51.3% from about HKD 2,400,000 in 2019 to about HKD 3,700,000 in 2020, mainly due to hiring more sales personnel and increased compensation[34]. - Administrative and operating expenses increased by approximately 17.3% from about HKD 20,500,000 in 2019 to about HKD 24,100,000 in 2020, attributed to additional administrative and employee costs, depreciation, and other operating expenses[35]. - Financing costs surged by approximately 302.8% from about HKD 200,000 in 2019 to about HKD 900,000 in 2020, primarily due to increased interest expenses on lease liabilities[36]. Financial Position - The total loss for the year ended March 31, 2020, was approximately HKD 16,300,000, compared to a loss of about HKD 7,600,000 in 2019, largely due to a decline in orders for commercial printing services[40]. - As of March 31, 2020, total borrowings and lease liabilities amounted to approximately HKD 35,900,000, up from about HKD 5,200,000 in 2019[42]. - The current ratio as of March 31, 2020, was approximately 3.1 times, down from about 4.7 times in 2019[42]. - The debt-to-equity ratio increased significantly to 47.8% as of March 31, 2020, from 5.6% in 2019, due to the initial application of HKFRS 16 leading to increased lease liabilities[43]. - The net current asset value as of March 31, 2020, was approximately HKD 46,100,000, down from about HKD 69,500,000 in 2019[43]. Business Strategy and Opportunities - The group anticipates adverse impacts on financial printing business due to a decline in the number of IPOs and increased competition leading to potential price wars[21]. - The group is actively seeking new business or investment opportunities to ensure revenue diversification and sustainability amid the ongoing challenges posed by COVID-19[21]. - The company is in the process of acquiring 100% of the issued share capital of a company providing electric vehicle charging services for a total consideration of HKD 35,000,000, which includes cash and shares[67][69]. - The company plans to issue 22,802,703 shares at HKD 0.37 each as part of the payment for the acquisition[69]. - The company has streamlined its production line to improve operational efficiency and achieve cost savings[66]. Governance and Compliance - The company has adopted trading standards in compliance with GEM Listing Rules, confirming adherence by all directors since April 1, 2019[98]. - The board of directors includes newly appointed executive directors, with significant changes occurring on January 22, 2020, including the resignation of the previous chairman[99]. - The company has complied with GEM Listing Rules regarding independent non-executive directors, ensuring all meet independence criteria[100]. - The board is responsible for overseeing the company's operations and ensuring alignment with shareholder interests while managing key business risks[101]. - The company has established three special committees (Audit, Remuneration, and Nomination) to oversee specific areas of governance[105]. Shareholder Communication and Relations - The company has adopted a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[138]. - The company provides multiple channels for shareholder communication, including printed corporate communications and annual general meetings[139]. - The company has established procedures for shareholders to propose candidates for director positions at shareholder meetings[142]. Employee and Talent Management - As of March 31, 2020, the group had 112 employees in Hong Kong, an increase from 105 employees in 2019[155]. - The company has established a stock option plan to attract and retain talent[155]. - The company has hired several experienced sales personnel to strengthen customer relationships and support business growth[76]. - The company plans to continue attracting and retaining top industry talent to support its growth initiatives[76]. Environmental and Legal Compliance - The company has complied with environmental protection laws and regulations, promoting awareness among employees[150]. - There were no significant legal or regulatory violations affecting the company’s business as of March 31, 2020[151].

Financial Performance - For the three months ended December 31, 2019, the company reported revenue of HKD 16,813,000, an increase of 24.5% compared to HKD 13,564,000 for the same period in 2018[5] - The gross profit for the same period was HKD 2,033,000, representing a significant increase from HKD 668,000 in the prior year, resulting in a gross margin improvement[5] - The company incurred a loss before tax of HKD 3,986,000 for the three months ended December 31, 2019, compared to a loss of HKD 4,550,000 in the same period of 2018, indicating a reduction in losses[5] - Total comprehensive loss for the period was HKD 3,480,000, slightly improved from HKD 3,879,000 in the previous year[5] - The company reported a basic and diluted loss per share of HKD 0.77 for the three months ended December 31, 2019, compared to HKD 0.87 for the same period in 2018[6] - For the nine months ended December 31, 2019, total revenue was HKD 53,379,000, a decrease of 4.8% from HKD 55,935,000 in the same period of 2018[5] - The company’s gross profit for the nine months ended December 31, 2019, decreased by approximately 33.4% from HKD 15,500,000 to HKD 10,300,000[62] - The gross profit margin fell from 27.7% to 19.4% for the same period, attributed to a greater decline in sales compared to the overall reduction in service costs[62] Revenue Breakdown - For the three months ended December 31, 2019, the revenue from commercial printing services was HKD 8,164,000, a decrease of 25.6% compared to HKD 10,982,000 in the same period of 2018[23] - The revenue from financial printing services for the nine months ended December 31, 2019, was HKD 21,550,000, an increase of 8.6% from HKD 19,857,000 in the same period of 2018[23] - The company reported a decrease in revenue from commercial printing services, dropping approximately 14.2% from HKD 35,000,000 to HKD 30,100,000 for the nine months ended December 31, 2019[51] - Revenue from financial printing services increased by about 8.5%, rising from HKD 19,900,000 to HKD 21,600,000 for the same period[51] - Total revenue for the nine months ended December 31, 2019, decreased by approximately 4.5% from HKD 55,900,000 to HKD 53,400,000, primarily due to a reduction in sales orders[57] Expenses and Costs - The company’s administrative and other operating expenses increased to HKD 16,493,000 for the nine months ended December 31, 2019, compared to HKD 15,258,000 in the previous year[5] - Employee costs, including directors' remuneration, rose to HKD 8,385,000 for the three months ended December 31, 2019, compared to HKD 5,995,000 in the same period of 2018, marking an increase of 39.8%[30] - The total employee costs for the nine months ended December 31, 2019, reached HKD 27,173,000, compared to HKD 21,771,000 in the same period of 2018, indicating an increase of 24.7%[30] - Service costs increased by approximately 6.4%, rising from HKD 40,400,000 to HKD 43,000,000, mainly due to higher direct labor and indirect production costs[59] - Sales expenses rose by approximately 100.9% from HKD 1,500,000 to HKD 3,000,000 for the nine months ended December 31, 2019, attributed to new hires in the sales team leading to increased commissions and salaries[64] - Administrative and other operating expenses increased by approximately 8.1% from HKD 15,300,000 to HKD 16,500,000 for the nine months ended December 31, 2019, mainly due to additional administrative and operational costs post-IPO[66] Corporate Actions and Governance - The company completed a capitalisation issue of 329,999,999 shares at par value of HKD 0.01 per share, raising HKD 3,299,999.99 from the share premium account[12] - The company completed a share purchase agreement on November 19, 2019, acquiring 223,800,000 shares for a total consideration of HKD 59,978,400, increasing its ownership to 50.86%[43] - The board did not recommend the payment of an interim dividend for the nine months ended December 31, 2019[80] - The company has adopted a stock option plan, but no options were granted or exercised during the nine months ending December 31, 2019[88] - The company has complied with the GEM Listing Rules regarding the trading standards for directors since the listing date on May 11, 2018[87] - The roles of Chairman and CEO were held by the same person, Mr. Su, until his resignation on January 22, 2020, which the company believes provided strong leadership[84] - Following Mr. Su's resignation, the CEO position was taken over by Executive Director Mr. Leung, and the Chairman position was assumed by Non-Executive Director Mr. Ng, thus complying with the relevant governance code[86] Future Outlook and Strategy - The company has not disclosed specific future outlook or guidance in the report, focusing instead on current performance metrics[5] - The company aims to strengthen existing customer relationships and develop new ones to achieve sustainable organic growth[54] - Plans include purchasing permanent office properties for financial printing services to support business expansion[54] - The company intends to upgrade hardware and software for financial printing services to enhance operational efficiency[54] - The company is focused on attracting and retaining top talent in the industry to bolster its market position[54] Compliance and Audit - The audit committee, established on April 19, 2018, consists of three independent non-executive directors, ensuring compliance with GEM listing rules[118] - The company reviewed its unaudited consolidated financial statements for the nine months ending December 31, 2019, confirming adherence to applicable accounting standards[118] - The independent non-executive director, Mr. Ruan, has over 16 years of experience in financial reporting, management, and auditing across Hong Kong, China, Malaysia, and Singapore[117] - The company has appointed Ms. Zhu as an independent non-executive director, who has experience in product supply management since 2018[116]

Revenue Performance - Revenue from commercial printing services decreased by approximately 10.6% from HKD 24.1 million to HKD 21.5 million for the six months ended September 30, 2019[10]. - Revenue from financial printing services decreased by approximately 23.3% from HKD 18 million to HKD 13.8 million for the same period[10]. - Revenue for the six months ended September 30, 2019, decreased by approximately 13.7% to HKD 36,600,000 from HKD 42,400,000 for the same period in 2018[16]. - Revenue from commercial printing services decreased by approximately 8.9% to HKD 21,900,000, primarily due to a reduction in sales orders from existing customers[17]. - Revenue from financial printing services decreased by approximately 23.1% to HKD 13,800,000, mainly due to a decrease in printing services related to non-recurring items[19]. - Revenue from other services increased by 136.4% to HKD 800,000, attributed to an increase in translation service revenue[20]. - Total revenue for the six months ended September 30, 2019, was HKD 36,566,000, a decrease of 13.9% compared to HKD 42,371,000 for the same period in 2018[120]. - The revenue from commercial printing services for the six months ended September 30, 2019, was HKD 21,914,000, down 8.9% from HKD 24,064,000 in the previous year[120]. - The revenue from financial printing services for the six months ended September 30, 2019, was HKD 13,808,000, a decline of 23.9% compared to HKD 17,950,000 in the same period of 2018[120]. - Other services revenue for the six months ended September 30, 2019, was HKD 844,000, an increase of 136.5% from HKD 357,000 in the previous year[120]. Financial Performance - Gross profit decreased by approximately 44.1% to HKD 8,300,000, with a gross margin decline from 35.0% to 22.7%[27]. - Selling expenses increased by approximately 123.2% to HKD 2,300,000 due to increased sales commissions and salaries from hiring new sales team members[29]. - Administrative and other operating expenses increased by approximately 5.3% to HKD 10,800,000, primarily due to additional costs incurred post-IPO[31]. - Financing costs increased by approximately 160.5% to HKD 297,000, mainly due to the adoption of new leasing standards[32]. - The company recorded a total loss of approximately HKD 4,200,000 for the six months ended September 30, 2019, compared to a loss of HKD 2,700,000 for the same period in 2018[36]. - The increase in losses was attributed to reduced sales orders, increased administrative expenses, and higher selling expenses due to new hires[36]. - The company reported a loss before tax of HKD 3,610,000 for the six months ended September 30, 2019, compared to a profit of HKD 2,062,000 in the same period of 2018[92]. - Total comprehensive loss for the period was HKD 3,209,000, compared to a profit of HKD 1,726,000 in the same period of 2018[92]. - The company reported a total comprehensive loss of HKD 4,152,000 for the six months ended September 30, 2019[104]. Assets and Liabilities - As of September 30, 2019, the total borrowings of the group amounted to approximately HKD 3,500,000, down from HKD 5,200,000 as of March 31, 2019[39]. - The debt-to-equity ratio was zero as of September 30, 2019, due to cash and cash equivalents exceeding total liabilities[39]. - The current ratio was approximately 3.3 times as of September 30, 2019, compared to 4.7 times as of March 31, 2019[39]. - Cash and bank balances were approximately HKD 59,800,000 as of September 30, 2019, down from HKD 62,100,000 as of March 31, 2019[41]. - The net current assets were approximately HKD 58,500,000 as of September 30, 2019, compared to HKD 69,500,000 as of March 31, 2019[41]. - The company’s total liabilities decreased to HKD 25,821,000 as of September 30, 2019, from HKD 18,670,000 as of March 31, 2019[94]. - The company’s total assets as of September 30, 2019, were HKD 92,060,000, down from HKD 91,671,000 as of March 31, 2019[104]. - The total inventory as of September 30, 2019, was HKD 1,247,000, down from HKD 2,084,000 as of March 31, 2019, showing a decrease of 40.2%[141]. - Trade receivables as of September 30, 2019, were HKD 12,630,000, a decrease of 3.2% from HKD 13,047,000 as of March 31, 2019[143]. - Total trade payables as of September 30, 2019, were HKD 11,699,000, down from HKD 12,226,000 as of March 31, 2019, reflecting a decrease of 4.3%[148]. - Bank borrowings as of September 30, 2019, amounted to HKD 1,681,000, a decrease of 46.3% from HKD 3,123,000 as of March 31, 2019[150]. Share Capital and Dividends - The board did not recommend the payment of an interim dividend for the six months ended September 30, 2019[59]. - The company increased its authorized share capital from HKD 380,000 to HKD 1,000,000,000 through the issuance of an additional 99,962,000,000 shares at HKD 0.01 each[165]. - A total of 110,000,000 new ordinary shares were issued at HKD 0.6 per share, raising a total of HKD 66,000,000[166]. - The group did not recommend any interim dividend for the six months ended September 30, 2019, consistent with the previous year[137]. Corporate Governance - The company has complied with all applicable code provisions of the corporate governance code, except for the separation of the roles of chairman and CEO[60][61]. - The board believes that the current arrangement of Mr. Su holding both roles is beneficial for the group's business prospects[62]. - The company confirmed compliance with the trading standards for directors during the six months ended September 30, 2019[64]. - The company has established a non-competition agreement with major shareholders, ensuring no engagement in competitive businesses[81]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated financial statements for the six months ending September 30, 2019[89]. Employee and Management Costs - The company is focused on attracting and retaining top talent in the industry[13]. - Employee costs, including directors' remuneration, increased to HKD 18,788,000 for the six months ended September 30, 2019, from HKD 15,776,000 in 2018, reflecting a rise of 19.3%[126]. - The management's compensation for the six months ended September 30, 2019, was HKD 2,640,000, compared to HKD 2,028,000 for the same period in 2018, reflecting an increase of approximately 30.2%[173]. Compliance and Risk Management - The group faced minimal foreign exchange risk as most transactions, assets, and liabilities were denominated in HKD[46]. - The group has no significant contingent liabilities or capital commitments as of September 30, 2019[42][43]. - The company has not recognized any impairment for overdue trade receivables due to the good credit quality of the related customers[145]. - The company monitors compliance with covenants and believes that it is unlikely that banks will exercise their rights to demand repayment as long as the company continues to meet these requirements[153]. Miscellaneous - The company has adopted a share option scheme, but no options were granted or exercised during the six months ended September 30, 2019[65]. - There were no significant acquisitions or disposals of subsidiaries and associated companies during the six months ended September 30, 2019[58]. - The company has a defined contribution plan for its eligible employees in Hong Kong, with contributions made according to the specified rates[168]. - The company’s total contributions to the retirement benefit plan were included in the comprehensive income statement[168]. - There were no significant events that required disclosure from September 30, 2019, to the report date[175].