Financial Performance - Total revenue for the year ended December 31, 2021, was approximately HKD 479.76 million, an increase of about 4.43% compared to HKD 459.42 million in 2020[9] - Operating profit for the same period was approximately HKD 30.21 million, representing a 36.14% increase from HKD 22.19 million in 2020[9] - Basic and diluted earnings per share for the year were HKD 0.0318, up from HKD 0.0243 in 2020[10] - The group's revenue increased by approximately 4.43% from about HKD 459.42 million for the year ended December 31, 2020, to about HKD 479.76 million for the year ended December 31, 2021[22] - The group's net profit attributable to owners increased from approximately HKD 19.44 million for the year ended December 31, 2020, to about HKD 25.46 million for the year ended December 31, 2021[39] - The total comprehensive income for the year ended December 31, 2021, was approximately HKD 23.89 million, compared to HKD 24.21 million for the year ended December 31, 2020[39] - Employee benefits expenses totaled approximately HKD 407.35 million for the year ended December 31, 2021, an increase of about 3.74% from HKD 392.67 million in 2020, accounting for approximately 84.91% of the group's revenue[26] - Other income decreased from approximately HKD 9.05 million for the year ended December 31, 2020, to about HKD 2.07 million for the year ended December 31, 2021, primarily due to a reduction in anti-epidemic subsidies received from the Hong Kong government[24] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.015 per share, totaling HKD 12 million, consistent with the previous year[10] - The board proposed a final dividend of HKD 0.015 per share, totaling HKD 12.00 million for the year ended December 31, 2021, unchanged from 2020[40] - The company has adopted a dividend policy that balances shareholder interests with prudent capital management[156] - The company did not declare any special dividends during the reporting period, maintaining the same stance as in 2020[166] Business Operations and Strategy - The company manages 23 public housing estates and 3 Home Ownership Scheme estates as of December 31, 2021[9] - The company anticipates strong demand for public housing in Hong Kong, which is expected to drive growth in property management services[11] - The company plans to expand its property management portfolio by seizing opportunities from both public and private sectors in residential and/or commercial properties[12] - The company is committed to implementing proactive marketing strategies and enhancing cost control measures to navigate challenges in the property management sector[21] - The company remains confident in increasing its market share despite competitive pressures and rising costs due to minimum wage adjustments and inflation[11] Financial Position and Ratios - As of December 31, 2021, the current ratio was 3.20 times, slightly down from 3.27 times in 2020, mainly due to an increase in accrued wages and retirement benefits[48] - Cash and bank balances as of December 31, 2021, were approximately HKD 40.92 million, up from about HKD 29.79 million in 2020[48] - The debt-to-equity ratio decreased from approximately 4.93% as of December 31, 2020, to about 2.21% as of December 31, 2021, primarily due to a reduction in borrowings and lease liabilities[48] - The company reported a return on equity of 17.59% for the period, up from 14.65% in 2020[162] Corporate Governance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, ensuring compliance with all provisions as of December 31, 2021[91] - The Audit Committee held four meetings during the reporting period to review and approve the group's financial performance announcements and reports[102] - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of the group's affairs[98] - The Remuneration Committee is responsible for recommending the overall remuneration policy for all directors and senior management[103] - The Nomination Committee evaluates the independence of independent non-executive directors and recommends suitable candidates for board membership[108] - The board structure is designed to enhance the efficiency of strategy formulation and implementation, with clear division of roles between the Chairman and the CEO[95] - The company is committed to maintaining high standards of corporate governance to support effective management and healthy corporate culture[91] - The Audit Committee consists of three independent non-executive directors, ensuring oversight of financial reporting processes and risk management[102] - The company has received annual confirmations from independent non-executive directors, affirming their independence as per GEM Listing Rules[97] - The board will continue to review corporate governance practices to align with tightening regulatory requirements and higher expectations[91] Risk Management - The company emphasizes the importance of risk management to mitigate operational and financial risks[175] - The financial risk management policies are detailed in the consolidated financial statements, addressing credit, interest rate, foreign exchange, and liquidity risks[175] - The risk management framework aims to identify and manage risks at an acceptable level, utilizing a three-tiered approach for risk assessment and mitigation[135] Employee and Operational Metrics - The group had a total of 2,264 employees as of December 31, 2021, down from 2,293 employees in 2020[60] - Employee benefit expenses for the year ended December 31, 2021, were approximately HKD 407.35 million, an increase from HKD 392.67 million in 2020[60] - The company did not enter into any foreign exchange hedging contracts as of December 31, 2021, and believes that foreign exchange risk has minimal impact on its operations[56] Future Outlook and Investments - The company provided a positive outlook for the next quarter, projecting a revenue growth of 25%[79] - New product launches are expected to contribute an additional $50 million in revenue over the next fiscal year[79] - The company is investing in new technology development, allocating $10 million for research and development initiatives[79] - Market expansion plans include entering two new regions, which are projected to increase market share by 10%[79] - The company is considering strategic acquisitions to enhance its service offerings, with a budget of $30 million earmarked for potential deals[79] - Operational efficiency improvements are expected to reduce costs by 5%, enhancing overall profitability[79] - The company aims to enhance customer engagement through new marketing strategies, targeting a 20% increase in customer retention rates[79] - The management team emphasized the importance of sustainability initiatives, planning to invest $5 million in green technologies[79] Shareholder Communication - The company has established multiple communication channels with shareholders and investors, including annual meetings and a dedicated website[149] - Shareholders can propose independent resolutions at general meetings to safeguard their rights and interests[142]

Financial Performance - For the nine months ended September 30, 2021, the company recorded unaudited revenue of approximately HKD 352.3 million, an increase of about 8% compared to HKD 326.3 million for the same period in 2020[5]. - The unaudited profit for the nine months ended September 30, 2021, was approximately HKD 13.1 million, down from HKD 16.4 million for the same period in 2020[5]. - For the three months ended September 30, 2021, the company reported revenue of HKD 119.7 million, compared to HKD 120.3 million for the same period in 2020[7]. - The operating profit for the nine months ended September 30, 2021, was HKD 15.9 million, a decrease from HKD 19.3 million in the same period of 2020[7]. - The basic and diluted earnings per share for the nine months ended September 30, 2021, were HKD 0.85, down from HKD 1.63 for the same period in 2020[7]. - The total comprehensive income for the nine months ended September 30, 2021, was HKD 16.1 million, compared to HKD 16.0 million for the same period in 2020[9]. - For the nine months ended September 30, 2021, property management service revenue was HKD 352,266 thousand, an increase of 7.9% compared to HKD 326,288 thousand for the same period in 2020[20]. - For the three months ended September 30, 2021, property management service revenue was HKD 119,679 thousand, slightly down from HKD 120,292 thousand in the same period of 2020, representing a decrease of 0.5%[20]. - The net profit for the nine months ended September 30, 2021, was approximately HKD 13.1 million, down from HKD 16.4 million in the same period of 2020, a decrease of 20.1%[45]. - The total tax expense for the nine months ended September 30, 2021, was HKD 3,104,000, slightly down from HKD 3,148,000 in 2020[33]. Employee Benefits and Expenses - Employee benefit expenses for the nine months ended September 30, 2021, were approximately HKD 299.6 million, up 8.7% from HKD 275.6 million in the same period of 2020[5]. - The total employee benefits expenses for the three months ended September 30, 2021, were HKD 105,501 thousand, compared to HKD 87,119 thousand for the same period in 2020[30]. - Employee benefits expenses increased from approximately HKD 275.6 million to approximately HKD 299.6 million, primarily due to annual salary increases[42]. - The group reported a decrease in subcontracting costs for cleaning services from HKD 7,131 thousand in 2020 to HKD 5,486 thousand in 2021 for the nine months ended September 30[30]. - Cleaning material costs decreased from approximately HKD 5.1 million to approximately HKD 4.6 million due to stricter cost control measures[43]. - Other operating expenses for the nine months ended September 30, 2021, were approximately HKD 11.3 million, down from HKD 12.0 million in 2020[44]. Corporate Governance and Compliance - The company has complied with all corporate governance codes as per GEM listing rules without any deviations[66]. - The audit committee has reviewed the unaudited condensed consolidated results and confirmed compliance with applicable accounting standards and GEM listing rules[72]. - The board of directors includes executive and independent non-executive members, ensuring a diverse governance structure[73]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[70]. - No significant matters requiring disclosure have occurred after the reporting period[71]. Market Presence and Future Outlook - The company continues to provide property management services for public housing estates owned by the Hong Kong Housing Authority[11]. - The company is focused on expanding its market presence and enhancing its service offerings in the property management sector[11]. - The company expects growth in public housing property management services to continue alongside the development of the public housing market in Hong Kong[46]. Stock Options and Shareholding - The company has a stock option plan adopted on October 24, 2017, aimed at incentivizing eligible participants contributing to the group's success[63]. - A total of 32,000,000 stock options were granted to four employees at an exercise price of HKD 0.177 per share on June 17, 2019[64]. - As of September 30, 2021, R5A Group Limited holds 491,440,000 shares, representing approximately 61.43% of the company's equity[60]. - Ms. Yang Xiuyun owns 57,120,000 shares, accounting for 7.14% of the company's equity[60]. - The company maintains 800,000 ordinary shares for the calculation of basic earnings per share, unchanged from the previous year[35]. Accounting Standards - The group has adopted revised accounting standards effective from January 1, 2021, with no significant impact on performance and financial position[14]. - The group is evaluating the impact of new and revised accounting standards that will become effective in 2022 and 2023 on its operational performance and financial position[18]. - The group has not adopted any new or revised standards that have been issued but are not yet effective as of January 1, 2021[18].

Financial Performance - The group recorded unaudited revenue of approximately HKD 232.6 million for the six months ended June 30, 2021, representing an increase of about 12.9% compared to HKD 206.0 million for the same period in 2020[10] - The unaudited profit for the six months ended June 30, 2021, was approximately HKD 6.2 million, an increase of about 29.2% from HKD 4.8 million for the same period in 2020[10] - Basic earnings per share for the six months ended June 30, 2021, were approximately HKD 0.78, compared to HKD 0.60 for the same period in 2020[10] - Operating profit for the six months ended June 30, 2021, was HKD 6.55 million, compared to HKD 6.14 million for the same period in 2020[11] - Total comprehensive income for the period was HKD 5.49 million, compared to HKD 4.99 million for the same period in 2020[11] - The company reported a profit of HKD 6,241 million for the six months ended June 30, 2021, up from HKD 4,775 million in the previous period[16] - The company’s total comprehensive income for the period was HKD 4,475 million[16] Dividends and Shareholder Returns - The board resolved not to declare an interim dividend for the six months ended June 30, 2021, consistent with the decision for the same period in 2020[10] - The board did not recommend the payment of an interim dividend for the six months ended June 30, 2021, compared to no dividend for the same period in 2020[71] Assets and Liabilities - The company’s total assets as of June 30, 2021, were reported in the unaudited consolidated financial position statement[13] - Total assets as of June 30, 2021, were HKD 190,339 million, a decrease from HKD 175,580 million as of December 31, 2020[14] - The company's equity attributable to owners increased to HKD 139,273 million from HKD 132,678 million[14] - Total liabilities decreased to HKD 57,661 million from HKD 36,307 million[14] - The company's asset-liability ratio as of June 30, 2021, was approximately 3.34%, compared to 4.93% as of December 31, 2020[98] Cash Flow and Financial Position - Cash and bank balances decreased to HKD 22,256 million from HKD 29,789 million[19] - The net cash flow from operating activities was a negative HKD 1,964 million for the six months ended June 30, 2021, compared to HKD 8,438 million for the same period in 2020[19] - As of June 30, 2021, the group's cash and bank balances were approximately HKD 22.3 million, down from approximately HKD 29.8 million as of December 31, 2020[99] - Current assets as of June 30, 2021, were approximately HKD 165.2 million, compared to approximately HKD 179.4 million as of December 31, 2020[99] - The current ratio increased from approximately 3.27 as of December 31, 2020, to approximately 4.94 as of June 30, 2021[99] Employee Expenses - Employee benefit expenses for the six months ended June 30, 2021, were HKD 98.5 million, compared to HKD 105.8 million for the same period in 2020[11] - Total employee benefits expenses for the six months ended June 30, 2021, were HKD 194,091,000, an increase from HKD 188,456,000 in the same period of 2020[61] - The group had a total of 2,268 employees as of June 30, 2021[107] Business Operations - The company is currently operating a single business segment, providing property management services in Hong Kong[42] - The company anticipates growth in the public housing property management services business alongside the development of the public housing market in Hong Kong[90] - The company plans to continue increasing its market share in the property management sector, leveraging opportunities from new service contracts[90] Financial Risks and Management - The company faces various financial risks, including credit risk, interest rate risk, foreign exchange risk, and liquidity risk, with a focus on minimizing potential adverse impacts on financial performance[45] - The company applies a simplified approach to recognize expected credit losses for trade receivables and contract assets from the initial recognition of the asset[39] - The company has not used financial derivatives to hedge its financial risks[45] Corporate Governance - The company has complied with all corporate governance codes as per GEM listing rules without any deviations[123] - The audit committee reviewed the unaudited condensed consolidated results for the six months ended June 30, 2021, ensuring compliance with applicable accounting standards[128] Share Capital and Options - R5A Group Limited holds 491,440,000 shares, representing 61.43% of the company's issued share capital[118] - Ms. Yang Xiuyun owns 57,120,000 shares, accounting for 7.14% of the company's equity[118] - The company has adopted a share option scheme to incentivize eligible participants, effective for ten years from the listing date[120] - A total of 32,000,000 share options were granted to four employees at an exercise price of HKD 0.177 per share[121]

Financial Performance - The company reported revenue of HKD 115,290,000 for the three months ended March 31, 2021, representing an increase of 32.5% compared to HKD 86,981,000 in the same period of 2020[6]. - The operating profit for the period was HKD 1,086,000, compared to a loss of HKD (31,000) in the previous year, indicating a significant turnaround[6]. - The net profit for the period was HKD 1,055,000, marking a recovery from the previous year's loss[6]. - The total comprehensive income for the period amounted to HKD 755,000, compared to a loss in the previous year[6]. - The company’s basic and diluted earnings per share were HKD 0.13 for the period[6]. - Revenue from property management services rose from approximately HKD 87.0 million in 2020 to about HKD 115.3 million in 2021, marking an increase of 32.4%[35]. - The net profit for the period was approximately HKD 1.1 million in 2021, compared to a net loss of about HKD 0.3 million in 2020, indicating a significant turnaround[39]. Employee Expenses - Employee benefits expenses increased to HKD (95,586,000) from HKD (82,679,000), reflecting a rise of approximately 15.4% year-over-year[6]. - Employee benefits expenses increased from approximately HKD 82.7 million in 2020 to about HKD 95.6 million in 2021, representing a growth of 15.0%[36]. - The total employee benefits expenses included salaries, pensions, and share-based payments, with significant contributions from new contracts awarded in 2020[36]. Equity and Shareholding - The total equity as of March 31, 2021, was HKD 133,610,000, an increase from HKD 111,399,000 at the end of the previous year[7]. - R5A Group Limited holds 491,440,000 shares, representing approximately 61.43% of the company's issued share capital[49]. - Major shareholders include Tan Hui Jie with 55.23%, Song Li Ming with 16.28%, He Zhu Ming with 13.96%, and Deng Jiang Fu with 12.79%[50]. - Wu Fu Hua is the beneficial owner of 41,850,000 shares, accounting for about 5.23% of the company's issued share capital[45]. - As of March 31, 2021, no other directors or key executives were known to have any other interests or short positions in the company's shares[53]. Corporate Governance - The company has complied with all corporate governance codes as per GEM listing rules without any deviations[58]. - There were no known conflicts of interest involving directors or major shareholders as of March 31, 2021[57]. - The company has confirmed that no violations of the standard code of conduct occurred among directors during the reporting period[59]. - The audit committee consists of independent non-executive directors, ensuring governance and oversight of the financial reporting process[64]. Operational Developments - The company has not reported any new product developments or market expansions during this period[6]. - There were no significant mergers or acquisitions reported in the current financial period[6]. - The company has outsourced security and cleaning services for two managed estates since July 2020, impacting related expenses[21]. - The cost of cleaning materials decreased from approximately HKD 1.7 million in 2020 to about HKD 1.5 million in 2021, a reduction of 11.8%[37]. - Other operating expenses increased from approximately HKD 2.8 million in 2020 to about HKD 3.4 million in 2021, reflecting a rise of 21.4%[38]. Tax and Dividends - The deferred tax expense related to temporary differences was HKD 31,000 in 2021, compared to a credit of HKD 63,000 in 2020[27]. - The company does not propose any dividend for the period ending March 31, 2021, consistent with the previous year[32]. Audit and Reporting - The financial data for the three months ending March 31, 2021, has not been audited by the company's auditors[64]. - The audit committee has reviewed the unaudited consolidated results and believes they comply with applicable accounting standards and GEM listing rules[64]. - The report will be published on the GEM website and the company's website for at least seven days from the publication date[66].

Company Information [Characteristics of GEM and Disclaimer](index=2&type=section&id=Characteristics%20of%20GEM%20and%20Disclaimer) This section outlines the characteristics of the GEM market, including higher investment risks and potential market volatility, clarifies the Exchange's disclaimer of responsibility for annual report content, and affirms directors' accountability for the report's accuracy and completeness - GEM market provides a listing platform for small and medium-sized companies, but involves **higher investment risks**, with securities potentially subject to significant market volatility and illiquidity[2](index=2&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange assume **no responsibility** for the content of this annual report, make no representation, and accept no liability for any loss[2](index=2&type=chunk) - The company's directors collectively and individually assume **full responsibility** for the information contained in this report, confirming its accuracy and completeness in all material respects, without misleading or fraudulent elements[2](index=2&type=chunk) [Board of Directors and Key Advisors](index=4&type=section&id=Board%20of%20Directors%20and%20Key%20Advisors) This section lists the company's Board of Directors, compliance officer, authorized representatives, company secretary, committee members, auditor, legal counsel, principal bankers, registered office, head office, Hong Kong principal place of business, share registrars, company website, and stock code - The Board of Directors includes Chairman Mr. Ho Chu Ming, CEO Mr. Ng Fook Wah, and two other Executive Directors, Ms. Tam Mo Kit as Non-Executive Director, and Dr. Chan Man Wai, Mr. Wong Siu Fai, and Mr. Ng Kee Fat as Independent Non-Executive Directors[4](index=4&type=chunk) - The Audit Committee is chaired by Mr. Wong Siu Fai, the Remuneration Committee by Mr. Ng Kee Fat, and the Nomination Committee by Dr. Chan Man Wai, all composed of Independent Non-Executive Directors[4](index=4&type=chunk) - The company's auditor is PricewaterhouseCoopers, with principal bankers including The Hongkong and Shanghai Banking Corporation Limited and Bank of China (Hong Kong) Limited[4](index=4&type=chunk) Chairman's Statement [Business Review](index=5&type=section&id=Business%20Review) Despite 2020's challenges, the Group maintained competitiveness with 28 public housing estates and 3 Home Ownership Scheme courts under management, achieving a 10.98% year-on-year revenue increase to **HK$459.42 million** and a 197.45% operating profit surge to **HK$22.19 million**, driven by new contract pricing, service fee adjustments, cost control, and government anti-epidemic subsidies - As of December 31, 2020, the Group managed **28 public housing estates** and **3 Home Ownership Scheme courts**[8](index=8&type=chunk) 2020 Financial Highlights | Metric | 2020 (million HKD) | 2019 (million HKD) | Y-o-Y Growth Rate | | :--------- | :---------------- | :---------------- | :--------- | | Total revenue | 459.42 | 413.96 | 10.98% | | Operating profit | 22.19 | 7.46 | 197.45% | | Basic and diluted earnings per share | 2.43 HK cents | 0.90 HK cents | 170% | - Operating profit growth was primarily attributed to increased pricing for new property management service contracts, upward adjustments in service fees for existing contracts, control over employee benefits and operating expenses, and receipt of government anti-epidemic fund subsidies[8](index=8&type=chunk) - The Board recommended a final dividend of **HK$0.015** per share for the year ended December 31, 2020, totaling **HK$12.00 million** (2019: **HK$4.00 million**)[9](index=9&type=chunk) [Outlook](index=5&type=section&id=Outlook) The company anticipates Hong Kong's population and residential property growth will drive property management business expansion; despite intense competition, minimum wage adjustments, and inflation-driven cost increases, the Board remains confident in increasing market share and plans to expand its property management portfolio by seizing opportunities in public and private residential and/or commercial properties - Strong housing demand in Hong Kong is expected to drive the expansion of the property management business[10](index=10&type=chunk) - The Board is confident in the Group's ability to increase market share and will continue to expand its property management portfolio, seizing opportunities in both public and private residential and/or commercial properties[10](index=10&type=chunk)[11](index=11&type=chunk) Management Discussion and Analysis [Business Review and Future Prospects](index=6&type=section&id=Business%20Review%20and%20Future%20Prospects) The Group primarily provides public housing-focused property management services in Hong Kong, with the Hong Kong Housing Authority as its sole client, encompassing estate management, security, and cleaning; despite industry challenges, the economic downturn and pandemic are expected to have limited impact, and the Group will implement aggressive marketing, human resource investment, and cost control for long-term growth - The Group primarily provides property management services in Hong Kong, focusing on public housing, with the Hong Kong Housing Authority as its sole client, accounting for **100%** of total revenue[15](index=15&type=chunk) - Property management services include estate management (general management, tenancy management, financial management, minor repairs and maintenance, project management), security services, and cleaning services[15](index=15&type=chunk) - To address challenges, the Group will implement aggressive marketing strategies, invest more human resources, and strengthen cost control measures to promote long-term business growth[15](index=15&type=chunk) [Financial Review](index=6&type=section&id=Financial%20Review) The Group's FY2020 revenue grew by **10.98%** to **HK$459.42 million**, primarily due to new contract pricing and increased service fees, while other income significantly rose from anti-epidemic subsidy administration fees and government employment support scheme subsidies; operating expenses saw increased employee benefits due to new hires but a lower revenue proportion, reduced cleaning material costs from outsourcing, and decreased other operating expenses due to pandemic-related activity reductions and lower compliance costs, leading to substantial profit growth influenced by revenue, cost control, and government subsidies 2020 Financial Year Revenue and Other Income | Metric | 2020 (million HKD) | 2019 (million HKD) | Y-o-Y Growth Rate | | :------- | :---------------- | :---------------- | :--------- | | Revenue | 459.42 | 413.96 | 10.98% | | Other income | 9.05 | 0.25 | 3520% | - Revenue increase was primarily due to higher pricing for new property management service contracts and upward adjustments in service fees for existing contracts[16](index=16&type=chunk) - The significant increase in other income was mainly due to higher administration fees for distributing anti-epidemic subsidies to employees and the receipt of government employment support scheme subsidies[19](index=19&type=chunk) 2020 Financial Year Key Expense Changes | Metric | 2020 (million HKD) | 2019 (million HKD) | Y-o-Y Change Rate | | :------------- | :---------------- | :---------------- | :--------- | | Employee benefit expenses | 392.67 | 376.87 | 4.19% | | Cleaning material costs | 6.64 | 7.47 | -11.11% | | Other operating expenses | 16.26 | 17.95 | -9.42% | | Net finance costs | 0.22 | -1.13 (income) | N/A | | Income tax expense | 2.54 | 1.40 | 81.43% | | Profit for the year | 19.44 | 7.19 | 170.37% | - Employee benefit expenses increased mainly due to new hires for new property management service contracts and annual salary increments, but their proportion of revenue decreased from **91.04%** to **85.47%**[23](index=23&type=chunk) - Cleaning material costs decreased primarily due to the outsourcing of cleaning services for three estates starting from July 2020[24](index=24&type=chunk) - Other operating expenses decreased mainly due to reduced community activities during the pandemic, lower compliance costs, and reduced insurance and guarantee fees[25](index=25&type=chunk) - Net finance costs shifted from net finance income in 2019 to a cost, primarily due to a decrease in the amount and interest rates of bank time deposits[30](index=30&type=chunk) - Profit for the year significantly increased to **HK$19.44 million**, primarily attributed to revenue growth, cost control, and government subsidies[32](index=32&type=chunk) - The Board recommended a final dividend of **HK$0.015** per share, totaling **HK$12.00 million** (2019: **HK$4.00 million**)[33](index=33&type=chunk) [Liquidity and Financial Resources](index=8&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's current ratio decreased from **3.56x** in 2019 to **3.27x** in 2020, mainly due to increased borrowings and lease liabilities, while cash and bank balances significantly rose to **HK$29.79 million**; the debt-to-equity ratio increased to **4.93%**, also impacted by higher borrowings and lease liabilities, yet the Board considers the Group's financial position robust and liquidity ample, supported by available cash and bank balances and banking facilities 2020 Financial Year Liquidity and Financial Resources | Metric | 2020 (thousand HKD) | 2019 (thousand HKD) | | :------------- | :-------------- | :-------------- | | Current assets | 179,394 | 146,182 | | Current liabilities | 54,872 | 41,012 | | Net current assets | 124,522 | 105,170 | | Total assets | 190,339 | 153,444 | | Total liabilities | 57,661 | 41,682 | | Borrowings | 2,802 | - | | Cash and bank balances | 29,789 | 15,444 | | Pledged bank deposits | 36,731 | 32,845 | | Total equity | 132,6

Financial Performance - For the nine months ended September 30, 2020, the group recorded unaudited revenue of approximately HKD 326.3 million, an increase of about 4.0% compared to HKD 313.6 million for the same period in 2019[5]. - The unaudited profit for the nine months ended September 30, 2020, was approximately HKD 16.4 million, compared to HKD 5.2 million for the same period in 2019[5]. - The total comprehensive income for the nine months ended September 30, 2020, was approximately HKD 16.1 million, compared to HKD 4.9 million for the same period in 2019[11]. - Basic and diluted earnings per share for the nine months ended September 30, 2020, were HKD 0.13, compared to HKD 2.05 for the same period in 2019[8]. - The operating profit for the three months ended September 30, 2020, was HKD 14.1 million, while the profit before tax was HKD 13.8 million[8]. - Profit for the period increased from approximately HKD 5.2 million to about HKD 16.4 million, a growth of 215.4% driven by higher profit margins from new property management contracts and government subsidies[37]. Employee Expenses - Employee benefit expenses for the nine months ended September 30, 2020, were approximately HKD 275.6 million, a decrease of about 3.6% from HKD 285.9 million in the same period of 2019[5]. - The total employee benefits expenses for the nine months ended September 30 amounted to HKD 263.8 million, slightly down from HKD 273.5 million in the previous year[22]. - Employee benefits expenses decreased from approximately HKD 285.9 million to about HKD 275.6 million, a reduction of 4.3% due to outsourcing cleaning and security services and government subsidies[34]. Revenue Sources - Revenue from property management services increased from approximately HKD 313.6 million to about HKD 326.3 million for the nine months ended September 30, representing a growth of approximately 4.0% compared to the same period in 2019[32]. - The unaudited revenue for the three months ended September 30 was HKD 120.3 million, compared to HKD 108.1 million for the same period last year[21]. Cost Management - The company has implemented stricter cost control measures across various operational expenses[36]. - Other operating expenses decreased from approximately HKD 14.5 million to about HKD 12.0 million, a reduction of 17.2% mainly due to lower compliance costs and stricter cost control measures[36]. - Cleaning materials costs slightly decreased from approximately HKD 5.5 million to about HKD 5.1 million, a reduction of 7.3% attributed to the outsourcing of services[35]. Corporate Governance - The company is committed to maintaining transparency and accuracy in its financial reporting, ensuring all material aspects are disclosed[2]. - The company has adhered to all corporate governance codes as per GEM listing rules without any deviations during the reporting period[60]. - The audit committee has reviewed the unaudited condensed consolidated results and confirmed compliance with applicable accounting standards and GEM listing rules[66]. - The board of directors includes executive and independent non-executive members, ensuring a diverse governance structure[67]. Market Outlook - The company is optimistic about expanding its market share in the public housing property management sector as the market develops[44]. - The company expects growth in public housing property management services to align with the development of the public housing market in Hong Kong[44]. - The company anticipates that the COVID-19 pandemic will not have a significant adverse impact on its business operations[31]. Shareholder Information - R5A Group Limited holds 491,440,000 shares, representing 61.43% of the company's issued share capital[55]. - Major shareholders include R5A Group Limited, with individual ownership percentages of 55.23%, 16.28%, 13.96%, 12.79%, 1.16%, and 0.58%[55]. Other Information - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards and GEM Listing Rules[14]. - The company has adopted new and revised Hong Kong Financial Reporting Standards, but these did not have a significant impact on the reported amounts[20]. - The estimated tax rate for Hong Kong profits tax is 16.5%, with the first HKD 2,000,000 of taxable profits for qualifying entities taxed at 8.25%[28]. - The company did not recommend the payment of an interim dividend during the reporting period[30]. - The existing property management portfolio includes 28 public housing estates owned by the Housing Authority and 4 Home Ownership Scheme estates[31]. - The company has a stock option plan adopted on October 24, 2017, which is valid for 10 years, aimed at incentivizing eligible participants contributing to the group's success[58]. - On June 17, 2019, the company granted 32,000,000 stock options at an exercise price of HKD 0.177 per share, with a total of 32,000,000 options remaining unexercised as of the report date[58]. - The company has not granted, agreed to grant, exercised, canceled, or allowed any stock options to expire during the reporting period[58]. - There were no known conflicts of interest involving directors, controlling shareholders, or their close associates during the reporting period[59]. - No significant events requiring disclosure occurred after the reporting period[65]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[64].

Financial Performance - The group recorded approximately HKD 206.0 million in revenue for the six months ended June 30, 2020, representing an increase of about 0.2% compared to HKD 205.6 million for the same period in 2019[17] - The unaudited profit for the six months ended June 30, 2020, was approximately HKD 4.8 million, an increase of about 14.3% from HKD 4.2 million for the same period in 2019[17] - Basic earnings per share for the six months ended June 30, 2020, were approximately HKD 0.6 cents, compared to HKD 0.52 cents for the same period in 2019[17] - Operating profit for the six months ended June 30, 2020, was HKD 6.1 million, compared to HKD 5.3 million for the same period in 2019[20] - Total comprehensive income for the period was HKD 4.99 million, compared to HKD 4.47 million for the same period in 2019[20] - Total revenue for the three months ended June 30, 2020, was HKD 119.0 million, compared to HKD 111.2 million for the same period in 2019[20] - The company reported a total comprehensive income of HKD 3,971 million for the period, despite a loss of HKD 200 million from remeasurement of employee benefits[27] - The net profit for the six months ended June 30, 2020, increased to approximately HKD 4.8 million, up 14.3% from approximately HKD 4.2 million for the same period in 2019[93] Dividends - The board resolved not to declare an interim dividend for the six months ended June 30, 2020, consistent with the previous year[17] - The company declared a final dividend of HKD 4,000,000 for the year ended December 31, 2019, equivalent to HKD 0.5 per share[60] - The board did not recommend the payment of a dividend for the six months ended June 30, 2020, compared to no dividend in the same period of 2019[61] - The company paid dividends totaling HKD 4,000 million during the period, reflecting its commitment to returning value to shareholders[27] Employee Benefits - Employee benefit expenses increased to HKD 188.5 million for the six months ended June 30, 2020, from HKD 186.5 million in the same period of 2019[20] - Employee benefits expenses for the six months ended June 30, 2020, totaled HKD 188,456,000, up from HKD 186,472,000 in the same period of 2019, reflecting a rise of 1.0%[52] - The total employee benefits expenditure remained stable at approximately HKD 188.5 million for the six months ended June 30, 2020, compared to approximately HKD 186.5 million for the same period in 2019[85] Assets and Liabilities - The group’s total assets as of June 30, 2020, were reported in the unaudited consolidated financial position statement[22] - Total assets increased to HKD 180,831 million, up from HKD 153,444 million, representing a growth of 17.9%[23] - Trade receivables rose to HKD 72,452 million, compared to HKD 64,986 million, reflecting an increase of 11.3%[23] - Total liabilities increased to HKD 64,296 million from HKD 41,682 million, a rise of 54.0%, indicating a potential increase in leverage[23] - The asset-liability ratio as of June 30, 2020, was approximately 10.5%, compared to zero as of December 31, 2019[94] Cash Flow - Cash and cash equivalents at the end of the period reached HKD 26,711 million, up from HKD 15,444 million, marking a significant increase of 73.1%[29] - Operating cash flow net income for the six months ended June 30, 2020, was HKD 10,118 million, compared to HKD 7,155 million for the same period in 2019, an increase of 41.1%[29] - The net cash increase for the period was HKD 11,267 million, compared to HKD 25,550 million in the previous year, showing a decrease in cash flow generation[29] Financial Risks - The company faces various financial risks, including credit risk, interest rate risk, foreign exchange risk, and liquidity risk, with no use of financial derivatives for hedging[41] - The fair value of the company's financial assets and liabilities is similar to their carrying amounts, indicating stable market conditions[43] - The group faced minimal foreign exchange risk as its revenue-generating operations are primarily conducted in HKD[101] Corporate Governance - The company has complied with all corporate governance codes as per GEM listing rules without deviation[144] - The board of directors includes executive and independent non-executive members, ensuring a diverse governance structure[151] - As of June 30, 2020, there were no known conflicts of interest among directors and major shareholders[143] - The company has not identified any competitive businesses or interests among its directors and major shareholders[143] Shareholder Information - RSA Group Limited holds 491,440,000 shares, representing 61.43% of the company's issued share capital[128] - Major shareholders include Tan Mu Jie with 55.23%, Song Li Ming with 16.28%, He Zhu Ming with 13.96%, and Deng Jiang Fu with 12.79%[134] - Wu Fu Hua owns 32,800,000 shares, accounting for 4.1% of the issued share capital[129] - Yang Xiu Yun is a beneficial owner of 57,120,000 shares, representing 7.14% of the company's equity[137] Investments and Acquisitions - The group has not identified any significant adverse impact on its financial position due to the COVID-19 pandemic as of the report date[82] - The group has no significant acquisitions or disposals of subsidiaries and associates as of June 30, 2020[99] - There are currently no major investment plans other than those disclosed in the prospectus dated October 31, 2017[100] Audit and Compliance - The financial data in the report has not been audited by the company's auditors, and the audit committee has reviewed the unaudited consolidated performance for the six months ending June 30, 2020[149] - The audit committee believes that the performance complies with applicable accounting standards and GEM listing rules, ensuring adequate disclosure[149]

Financial Performance - The total revenue for the first quarter ended March 31, 2020, was HKD 86,981,000, a decrease of 7.5% compared to HKD 94,405,000 in the same period of 2019[6] - The company reported a loss of HKD 262,000 for the period, compared to a profit of HKD 489,000 in the first quarter of 2019[6] - The total comprehensive loss for the period was HKD 512,000, compared to a total comprehensive income of HKD 265,000 in the same quarter of 2019[6] - Revenue from property management services decreased from approximately HKD 94.4 million for the three months ended March 31, 2019, to approximately HKD 87.0 million for the same period in 2020, primarily due to the expiration of contracts for nine public housing estates in Q4 2019[31] - The loss for the period was approximately HKD 0.3 million, compared to a profit of approximately HKD 0.5 million in 2019, with the decrease attributed to reduced revenue from expired contracts[35] Employee Expenses - Employee benefits expenses amounted to HKD 82,679,000, down from HKD 87,339,000, reflecting a reduction of 5.7% year-on-year[6] - The total employee benefit expenses for the three months ended March 31, 2020, were approximately HKD 82.7 million, down from HKD 87.3 million in 2019, mainly due to the expiration of contracts[32] - Other operating expenses decreased from approximately HKD 4.4 million in 2019 to approximately HKD 2.8 million in 2020, attributed to reductions in insurance costs and maintenance expenses[34] Shareholder Information - R5A Group Limited holds 491,440,000 shares, representing 61.43% of the company's issued share capital[49] - The largest beneficial owner, Ms. Tan Mu Jie, owns 55.23% of R5A Group Limited's shares[50] - As of March 31, 2020, the company did not know of any other individuals holding 5% or more of the voting shares[52] Corporate Governance - The company has complied with all corporate governance codes as per GEM listing rules[59] - The audit committee has reviewed the unaudited consolidated performance for the three months ending March 31, 2020, and confirmed compliance with applicable accounting standards and GEM listing rules[64] - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[65] - The company has adopted a code of conduct for directors regarding securities trading, in compliance with GEM listing rules[60] - There were no known conflicts of interest involving directors or major shareholders as of March 31, 2020[57] Market Strategy and Outlook - The company continues to focus on property management services, which generated the entirety of its revenue[20] - The company remains optimistic about growth in the public housing property management sector, anticipating benefits from the development of the public housing market in Hong Kong[36] - The company was awarded two new property management service contracts covering ten public housing estates in Hong Kong, effective April 1, 2020, indicating a strategy to maintain market share[36] Other Financial Information - The basic and diluted loss per share was HKD 0.03, compared to earnings of HKD 0.06 per share in the previous year[6] - The basic loss per share for the three months ended March 31, 2020, was HKD (0.000325), with the weighted average number of ordinary shares being 800,000,000[25] - The deferred tax related to temporary differences amounted to a credit of HKD (63,000) for the three months ended March 31, 2020, compared to a credit of HKD (30,000) in 2019[6] - The company did not declare any dividends for the three months ended March 31, 2020, consistent with the previous year[27] - The company did not purchase, sell, or redeem any listed securities during the three months ending March 31, 2020[61] - No significant subsequent events occurred after March 31, 2020, until the report date[63] - The financial report will be published on the GEM website and the company's website for at least seven days from the report date[65] Product Development and Market Expansion - The company has not reported any new product developments or market expansions during this quarter[6] - There were no significant mergers or acquisitions reported in this quarter[6] COVID-19 Impact - The company continues to monitor the impact of COVID-19 on its financial position and operational performance, with no significant adverse effects reported as of the report date[30] Stock Options - The company has a stock option plan adopted on October 24, 2017, aimed at incentivizing eligible participants[53] - A total of 32,000,000 stock options were granted to employees at an exercise price of HKD 0.177 per share[54]

Financial Performance - Total revenue for the year ended December 31, 2019, was approximately HKD 413.96 million, an increase of about 11.52% compared to HKD 371.21 million in 2018[9]. - Operating profit for the same period was approximately HKD 7.46 million, a decrease of about 50.66% from HKD 15.12 million in 2018, primarily due to increased employee benefits and costs[9]. - Basic and diluted earnings per share for the year were HKD 0.009, down from HKD 0.0152 in 2018[10]. - Total comprehensive income decreased from about HKD 11.25 million for the year ended December 31, 2018, to about HKD 3.38 million for the year ended December 31, 2019[28]. - Net profit for the year was HKD 7,186,000, a decline of 40.5% compared to HKD 12,142,000 in the previous year[198]. - Basic and diluted earnings per share were HKD 0.90, down from HKD 1.52 in 2018, reflecting a 40.8% decrease[198]. - Total revenue from the Housing Authority, the largest customer, was approximately HKD 412.56 million, accounting for about 99% of total revenue during the reporting period[139]. Dividends - The board proposed a final dividend of HKD 0.005 per share, totaling HKD 4 million, consistent with the previous year[10]. - The company reported a final dividend of HKD 0.005 per share, totaling HKD 4 million, consistent with the previous year[123]. - The company has adopted a dividend policy that balances shareholder interests with prudent capital management[118]. Employee and Operational Costs - Employee benefits expenses rose by approximately 14.04% to about HKD 376.87 million, accounting for approximately 91.04% of total revenue[22]. - The total employee count decreased to 2,028 as of December 31, 2019, down from 2,410 in 2018, with employee benefit expenses of approximately HKD 376.87 million[44]. - The group generated employee benefit expenses of HKD 377 million for the year ended December 31, 2019, accounting for approximately 92% of total costs[183]. - The group operates in a labor-intensive industry, managing over 2,000 employees, which significantly impacts the employee benefit expenses[183]. Financial Position - The current ratio improved to 3.56 times as of December 31, 2019, compared to 3.12 times as of December 31, 2018[34]. - Total liabilities decreased from about HKD 50.62 million to about HKD 41.68 million, primarily due to loan repayments[31]. - Cash and bank balances decreased to about HKD 15.44 million from approximately HKD 30.21 million in the previous year[34]. - The asset-liability ratio significantly decreased from about 12.39% to approximately 1.19% due to the repayment of borrowings[34]. - The company's distributable reserves as of December 31, 2019, were approximately HKD 108.98 million, available for distribution to ordinary shareholders[137]. Corporate Governance - The company has a strong governance structure with a mix of executive and independent non-executive directors[61]. - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15 and believes it has complied with all provisions as of December 31, 2019[70]. - The audit committee held four meetings during the reporting period to review and approve the group's financial performance announcements and reports[78]. - The board consists of executive directors, non-executive directors, and independent non-executive directors, ensuring a diverse range of business experience and expertise[72]. - The company emphasizes the importance of transparency and accountability in corporate governance, which is essential for effective management and successful business development[70]. Risk Management - The group faced operational risks related to the loss of major clients and senior management, which could adversely affect operations[133]. - The group’s financial risk management policies address credit risk, interest rate risk, foreign exchange risk, and liquidity risk[133]. - The risk management framework aims to identify and manage risks at an acceptable level, utilizing a three-tiered approach for risk assessment and management[102]. COVID-19 Impact - The group has implemented a series of preventive measures against COVID-19, with no significant adverse impact on its financial condition reported as of the report date[45]. - The company does not foresee significant adverse impacts on its financial condition due to COVID-19 as its contracts typically range from 2 to 6 years[166]. - The company continues to monitor the developments of COVID-19 and its potential impacts on financial performance[166]. Audit and Compliance - The independent auditor's report stated that the consolidated financial statements fairly present the group's financial position as of December 31, 2019[176]. - The audit committee reviewed the audited consolidated financial statements, confirming compliance with applicable financial reporting standards and GEM listing rules[173]. - The company has established a comprehensive internal control system to safeguard shareholder investments and assets, ensuring effective and efficient operations[101]. Strategic Planning and Management - The company has begun upgrading its computer systems since the second quarter of 2018 as part of its business strategy[50]. - The company has a strong focus on public housing maintenance management, with over 30 years of experience in the real estate and maintenance management industry[56]. - The company is committed to strategic planning and financial planning, with key executives holding significant qualifications in accounting and finance[57].

Financial Performance - For the nine months ended September 30, 2019, the company's revenue was approximately HKD 313.6 million, an increase of about 14.2% compared to the same period in 2018[7]. - The unaudited profit for the nine months ended September 30, 2019, was approximately HKD 5.2 million, a decrease of about 44.9% compared to the unaudited profit of approximately HKD 9.5 million for the same period in 2018[7]. - Operating profit for the nine months ended September 30, 2019, was HKD 5.0 million, compared to HKD 12.3 million for the same period in 2018[13]. - The basic and diluted earnings per share for the nine months ended September 30, 2019, were HKD 0.51, down from HKD 0.65 for the same period in 2018[13]. - The total comprehensive income for the nine months ended September 30, 2019, was HKD 9.6 million, compared to HKD 4.9 million for the same period in 2018[20]. - The company reported a net profit of HKD 4.1 million for the three months ended September 30, 2019, compared to HKD 5.2 million for the same period in 2018[13]. - Profit for the nine months ended September 30, 2019, decreased to approximately HKD 5.2 million, down about 44.9% from approximately HKD 9.5 million for the same period in 2018[65]. Revenue and Expenses - Employee benefit expenses for the nine months ended September 30, 2019, were approximately HKD 285.9 million, an increase of about 16.0% compared to the same period in 2018[7]. - For the three months ended September 30, 2019, property management services revenue was HKD 108,054 thousand, an increase from HKD 91,122 thousand in the same period of 2018, representing a growth of 18.5%[48]. - For the nine months ended September 30, 2019, property management services revenue reached HKD 313,642 thousand, up from HKD 274,758 thousand in the same period of 2018, reflecting a growth of 14.1%[48]. - Total payroll, salaries, and other allowances (including director remuneration) for the three months ended September 30, 2019, amounted to HKD 94,858 thousand, compared to HKD 77,065 thousand in the same period of 2018, marking an increase of 23.1%[51]. - The increase in cleaning materials costs was from approximately HKD 3.4 million for the nine months ended September 30, 2018, to approximately HKD 5.5 million for the same period in 2019[63]. - Other operating expenses rose from approximately HKD 10.4 million for the nine months ended September 30, 2018, to approximately HKD 14.5 million for the same period in 2019[64]. Corporate Strategy and Outlook - The company plans to continue expanding its property management services in Hong Kong, focusing on public housing and urban redevelopment projects[24]. - The company is committed to enhancing operational efficiency and exploring new market opportunities to drive growth in the upcoming quarters[24]. - The company anticipates growth in the public housing property management services business alongside the development of the public housing market in Hong Kong[66]. - The company is considering strategic acquisitions to enhance its product offerings and market presence[90]. - Market expansion plans include entering two new regions, which are projected to increase market share by 5%[90]. - The company provided an optimistic outlook for Q4 2019, projecting a revenue increase of 10% to 12%[90]. Compliance and Governance - The company has adopted new and revised Hong Kong Financial Reporting Standards for the current accounting period, which may impact future financial reporting[27]. - The company has complied with all corporate governance codes as per GEM listing rules since its listing date[81]. - The audit committee has reviewed the unaudited consolidated results and found them compliant with applicable accounting standards[88]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[86]. Shareholder Information - R5A Group Limited holds 491,440,000 shares, representing 61.43% of the company's equity[75]. - The largest beneficial owner, Ms. Tam Muk Kit, owns 55.23% of R5A Group Limited[74]. - The company granted 32,000,000 share options at an exercise price of HKD 0.177 per share on June 17, 2019[80]. - The exercise period for the granted options is from June 17, 2020, to June 16, 2022[80]. Other Information - The Group adopted HKFRS 16 on January 1, 2019, resulting in the recognition of lease liabilities amounting to HKD 1,979 thousand, which includes current lease liabilities of HKD 881 thousand and non-current lease liabilities of HKD 1,098 thousand[41]. - The Group's total liabilities related to leases were measured at present value, including fixed payments and any lease incentives received[32]. - The Group expects that the newly issued standards and amendments effective from January 1, 2019, will not have a significant impact on the unaudited condensed consolidated financial statements[37]. - The financial information in the report has not been audited by the company's auditor[88]. - No significant events occurred after the reporting period up to the report date[87]. - The company has adopted a share option scheme to incentivize eligible participants contributing to its business success[79]. - User data showed an increase in active users by 20% compared to the previous quarter, reaching a total of 1.5 million active users[90]. - New product launches are expected to contribute an additional $5 million in revenue for the upcoming quarter[90]. - The company is investing in new technology development, allocating $2 million for R&D in the next fiscal year[90]. - Cost management strategies have been implemented, aiming to reduce operational costs by 8% in the next quarter[90]. - The company reported a net profit margin of 12%, reflecting improved operational efficiency[90]. - Customer satisfaction ratings improved to 85%, indicating a positive response to recent product enhancements[90].