Financial Performance - The Group recorded an unaudited revenue of approximately HK$33.4 million for the six months ended 30 November 2019, representing a decrease of approximately 35.9% compared to the corresponding period in 2018 [18]. - Gross profit for the same period was approximately HK$10.7 million, reflecting a decrease of 61.2% compared to HK$27.7 million in 2018 [18]. - The unaudited loss for the six months ended 30 November 2019 was approximately HK$5.7 million, a decrease of approximately HK$20 million or 139.6% compared to a profit of HK$14.4 million in 2018 [18]. - Earnings per share for the period were reported at a loss of HK$0.71, compared to earnings of HK$1.79 per share in the previous year, marking a 139.6% decline [18]. - The decrease in revenue and profit was primarily attributed to a reduction in the number of pop concerts and average revenue per concert, as well as non-recurring professional expenses related to the proposed transfer of listing from GEM to the Main Board [18]. - Local economic and social uncertainties, including social unrest in Hong Kong, contributed to the financial performance during the period [18]. - The Group's financial results indicate significant challenges faced in the current market environment, necessitating strategic reassessment [18]. - For the six months ended November 30, 2019, the Group reported an unaudited loss of approximately HK$5.7 million, a decrease of about HK$20 million or approximately 139.6% compared to the same period in 2018 [21]. - Revenue for the six months ended November 30, 2019, was HK$33.472 million, down from HK$52.226 million in the same period of 2018, representing a decline of approximately 36% [25]. - Gross profit for the six months ended November 30, 2019, was HK$10.738 million, compared to HK$27.681 million in the same period of 2018, indicating a decrease of approximately 61% [25]. - The total expenses for the six months ended 30 November 2019 were HK$39,339,000, up from HK$34,940,000 in the same period of 2018, indicating an increase of approximately 12.9% [145]. Dividend and Equity - The Board does not recommend the payment of a dividend for the six months ended 30 November 2019 [19]. - The loss attributable to owners of the Company for the six months ended November 30, 2019, was HK$5.686 million, compared to a profit of HK$14.338 million in the same period of 2018 [27]. - Total equity decreased to HK$123,979,000 from HK$129,663,000, reflecting a decline of about 4.5% [53]. - The total equity attributable to owners of the company was HK$124,219,000, down from HK$129,905,000, marking a decrease of approximately 4.5% [53]. - The company did not recommend the payment of dividends for the six months ended 30 November 2019, consistent with the previous year where no dividends were declared [160]. Assets and Liabilities - Total assets as of November 30, 2019, amounted to HK$161.048 million, slightly up from HK$160.452 million as of May 31, 2019 [31]. - Cash and bank balances decreased to HK$25.520 million as of November 30, 2019, from HK$28.839 million as of May 31, 2019 [31]. - The Group's retained earnings as of November 30, 2019, were HK$58.364 million, down from HK$64.050 million as of May 31, 2019 [31]. - Total liabilities increased to HK$37,069,000, up from HK$30,789,000, representing a growth of approximately 20.5% [48]. - The company's bank borrowings amounted to HK$5,190,000, which is a significant component of current liabilities [48]. - The company had a taxation payable of HK$7,159,000, which is part of its current liabilities [48]. - The non-current portion of payables decreased from HK$9,336,000 as of May 31, 2019, to HK$11,576,000 as of November 30, 2019 [194]. Cash Flow and Operating Activities - Net cash generated from operating activities was HK$15,452,000, while net cash used in investing activities was HK$15,558,000, resulting in a net cash decrease of HK$3,319,000 [71]. - Cash and cash equivalents at the end of the period were HK$25,520,000, down from HK$38,311,000, indicating a decrease of approximately 33.3% [71]. - Total cash outflow for leases during the six months ended 30 November 2019 was HK$3,519,000, including payments for short-term leases of HK$1,518,000 [178]. Accounting Policies and Standards - The unaudited condensed consolidated financial information for the six months ended 30 November 2019 has been prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) [75]. - The Group's significant accounting policies are consistent with those followed in the preparation of the consolidated financial statements for the year ended 31 May 2019 [76]. - The Group has adopted HKFRS 16 (Leases) effective from 1 June 2019, which may impact the financial reporting [76]. - The impact of adopting HKFRS 16 is disclosed in Note 3.2 of the report [76]. - The Group plans to adopt new standards and amendments when they become effective [81]. Revenue Breakdown - Revenue from visual display solution services for the three months ended 30 November 2019 was HK$14,962,000, a decrease from HK$22,783,000 in the same period of 2018 [134]. - Equipment rental income for the three months ended 30 November 2019 was HK$15,002,000, compared to HK$22,798,000 in the same period of 2018 [134]. - Revenue from Hong Kong for the six months ended 30 November 2019 was HK$13,606,000, slightly up from HK$13,187,000 in 2018 [141]. - Revenue from the PRC for the six months ended 30 November 2019 was HK$12,082,000, a significant decrease from HK$26,178,000 in 2018 [141]. - Revenue from Macau and other regions for the six months ended 30 November 2019 was HK$7,434,000, down from HK$9,913,000 in 2018 [141]. Trade Receivables and Payables - Trade receivables as of 30 November 2019 were HK$19,803,000, down from HK$25,055,000 as of 31 May 2019 [183]. - The ageing analysis of trade receivables showed that HK$8,707,000 were overdue by over 90 days as of 30 November 2019 [186]. - The credit quality of trade and other receivables is assessed based on historical default rates, indicating no significant defaults from counterparties [192]. - The current portion of payables for equipment was HK$11,576,000, compared to HK$9,336,000 as of May 31, 2019 [194]. - The company has no significant overdue payments from independent customers, reflecting a stable collection environment [192].

In Technical Productions Holdings Limited (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock Code 股份代號: 8446 First Quarterly Report 2019/2020 第一季度業績報告 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") 香港交易及結算所有限公司及聯交所 對本報告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明 市規則（「GEM上市規則」）而提供有關 GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed o ...

Financial Performance - The Group recorded a historical high revenue of approximately HK$94.3 million for the year ended 31 May 2019, representing an increase of approximately HK$10.7 million or 12.8% compared to the previous year[15]. - The gross profit for the year ended 31 May 2019 increased by approximately 9.5% to approximately HK$46.1 million from HK$42.1 million for the year ended 31 May 2018[15]. - The Group's profit for the year ended 31 May 2019 was approximately HK$22.5 million, an increase of approximately HK$4.6 million compared to approximately HK$17.9 million for the year ended 31 May 2018[15]. - The Group's revenue increased from approximately HK$83.6 million for the year ended May 31, 2018, to approximately HK$94.3 million for the year ended May 31, 2019, representing an increase of approximately 12.8%[33]. - For the year ended 31 May 2019, the Group's gross profit amounted to approximately HK$46.1 million, representing a gross profit margin of approximately 48.9%[84]. - The Group's profit for the year ended 31 May 2019 was approximately HK$22.5 million, an increase of approximately HK$4.6 million compared to HK$17.9 million for the year ended 31 May 2018[90]. - Revenue for Q1 FY19/20 is anticipated to drop by approximately 30% to 35% compared to the same period in 2018, primarily due to a decrease in the number of pop concerts and average revenue per concert[93]. - The Group is expected to record a net loss for Q1 FY19/20, contrasting with a profit of HK$9.5 million for the same period in 2018[98]. - The effective income tax rate of the Group was 15.1% for the year ended 31 May 2019, down from 20.3% in 2018[88]. Revenue Sources - Approximately 74.5% of the Group's total revenue for the year ended May 31, 2019, was derived from pop concerts, down from 88.7% in 2018[23]. - Visual display solutions accounted for approximately 99.5% of the Group's total revenue in 2019, slightly down from 99.6% in 2018[33]. - Revenue from pop concerts decreased due to a drop in average revenue per show from approximately HK$203,000 in 2018 to approximately HK$167,000 in 2019[41]. - The number of shows for pop concerts decreased, while the number of other live events increased from 300 in 2018 to 961 in 2019, primarily due to more corporate events undertaken in the PRC and Macau[42]. - Total revenue from visual display solutions for the year ended May 31, 2019, was HK$93.8 million, with 1,381 shows conducted[40]. - The number of other live events increased significantly to 381 in Macau, up from 30 in 2018, contributing to a total revenue of HK$12,975,000 from Macau[66]. - Total revenue from other live events was HK$23,562,000, with Hong Kong contributing HK$10,535,000, which accounted for 44.7% of total revenue from other live events[66]. Cost Structure - The Group's total cost of services for the year ended 31 May 2019 was HK$48,135,000, an increase from HK$41,463,000 in 2018[75]. - Direct labour costs represented approximately 31.6% of total cost of services for the year ended 31 May 2019, compared to 34.4% in 2018[77]. - Depreciation expenses for visual display equipment accounted for approximately 36.2% of total cost of services in 2019, slightly up from 35.7% in 2018[76]. - Subcontracting charges represented approximately 12.0% of total cost of services for the year ended 31 May 2019, down from approximately 13.2% in 2018[82]. - Freight and logistics expenses accounted for approximately 10.4% of total cost of services in 2019, up from approximately 9.1% in 2018[82]. - Equipment rental charges represented approximately 7.4% of total cost of services for the year ended 31 May 2019, compared to approximately 4.4% in 2018[82]. - Cost of equipment and spare parts represented approximately 2.4% of total cost of services in 2019, down from approximately 3.2% in 2018[82]. Business Strategy and Expansion - Net proceeds from the Share Offer amounted to approximately HK$34.5 million, which will support business strategies including expansion in Macau and enhancing corporate event solutions[16]. - The Group aims to broaden income sources by exploring applications of visual display solutions in industries beyond live events[17]. - The Group plans to develop a tracking system to enhance equipment management and utilization[19]. - The Group has established a wholly owned subsidiary in Macau to enhance revenue generation from live events[67]. - The Group successfully completed the procurement of additional LED panels and video control units as part of its business expansion strategy in Shanghai[111]. - A total of 12 staff were recruited for business expansions in Macau, aligning with the Group's strategic growth plans[111]. 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 chief executive officer[126]. - The Board consists of five Directors, including two executive Directors and three independent non-executive Directors, ensuring a balance of skills and experience[135]. - The management is responsible for day-to-day operations and must report significant matters to the Board for prior approval[131]. - The Board is committed to high standards of corporate governance to safeguard and enhance shareholders' interests[125]. - The Company has established an Audit Committee comprising three independent non-executive Directors to oversee the financial reporting process and internal control systems[167]. - The Audit Committee has recommended the re-appointment of PricewaterhouseCoopers as the Company's auditors for the financial year ending May 31, 2019, subject to shareholder approval[170]. - The Remuneration Committee, consisting of three independent non-executive Directors, is responsible for determining the remuneration policy for all Directors and senior management[176]. - The Company emphasizes the importance of continuous professional development for all Directors to enhance their knowledge and skills[158]. Risk Management - The Group faces various financial risks, including cash flow and foreign exchange risks, which are detailed in the annual report[23]. - The Group's critical information management is overseen by executive directors and key management to mitigate risks of data fraud or theft[34]. - The Group has implemented anti-virus software and internet firewalls to protect against cyber-attacks[34]. - The overall market risk control framework is monitored by the Group's executive directors to address adverse factors affecting performance[34].

Financial Performance - The Group recorded an unaudited revenue of approximately HK$74.2 million for the nine months ended 28 February 2019, representing an increase of approximately 24.4% compared to the corresponding period in 2018[6]. - The Group's unaudited profit for the nine months ended 28 February 2019 was approximately HK$18.3 million, an increase of approximately HK$5.2 million or approximately 39.1% compared to the same period in 2018[6]. - The increase in profit was primarily due to an increase in gross profit from revenue growth, a decrease in bank borrowing interest, and a reduction in imputed interest on settled payables[6]. - The gross profit for the nine months ended 28 February 2019 was approximately HK$37.2 million, reflecting a stable gross profit margin despite increased revenue[6]. - The Group's operating profit for the nine months was approximately HK$22.0 million, compared to HK$8.7 million for the same period in 2018[13]. - Profit before income tax for the three months ended 28 February 2019 was HK$4,773,000, a decrease of 40.4% compared to HK$7,941,000 for the same period in 2018[17]. - Profit for the period attributable to owners of the Company was HK$3,928,000, down 41.5% from HK$6,740,000 in the previous year[17]. - Total comprehensive income for the period was HK$3,953,000, a decline of 39.5% compared to HK$6,533,000 for the same period in 2018[17]. - For the nine months ended 28 February 2019, profit before income tax was HK$22,046,000, an increase of 32.9% from HK$16,595,000 in 2018[17]. - Profit for the nine-month period attributable to owners of the Company was HK$18,266,000, up 33.5% from HK$13,716,000 in the previous year[17]. - Total comprehensive income for the nine months was HK$18,323,000, an increase of 38.8% compared to HK$13,221,000 for the same period in 2018[17]. Revenue Breakdown - Revenue from visual display solution services for the three months ended 28 February 2019 was HK$21,761,000, a decrease of 7.4% compared to HK$23,508,000 for the same period in 2018[102]. - Total revenue for the nine months ended 28 February 2019 was HK$73,950,000, an increase of 24.8% from HK$59,338,000 for the same period in 2018[102]. - Revenue from equipment rental for the nine months ended 28 February 2019 was HK$74,231,000, compared to HK$59,692,000 in the previous year, indicating a growth of 24.4%[102]. - Approximately 80.0% of the Group's total revenue during the nine months ended 28 February 2019 was derived from pop concerts, down from approximately 88.9% in the same period of 2018[122]. - Revenue from pop concerts increased from 283 shows generating approximately HK$53.1 million in the nine months ended 28 February 2018 to 323 shows generating approximately HK$28.3 million in the nine months ended 28 February 2019[178]. - Revenue from other live events surged from 233 shows generating approximately HK$6.3 million in the nine months ended 28 February 2018 to 581 shows generating approximately HK$14.6 million in the nine months ended 28 February 2019[175]. Expenses and Costs - Administrative expenses for the nine months ended 28 February 2019 were approximately HK$15.1 million, an increase from HK$4.4 million in the previous year[13]. - The total cost of services for the nine months was approximately HK$37.1 million, compared to HK$10.8 million in the previous year[13]. - The Group's finance income for the nine months was approximately HK$472,000, while finance costs were approximately HK$429,000[13]. - The Group's gross profit for the nine months ended February 28, 2019, was approximately HK$37.2 million, compared to HK$30.6 million for the same period in 2018, with a gross profit margin of approximately 50.1%[188]. Taxation and Earnings - The Group's estimated assessable profits for the nine months ended 28 February 2019 are subject to a two-tiered profit tax rate, with the first HK$2 million taxed at 8.25% and the remaining at 16.5%[105]. - All PRC subsidiaries are subject to a 25.0% Enterprise Income Tax for the nine months ended 28 February 2019[105]. - The Macau subsidiary is subject to a complementary tax rate of 12.0% on estimated assessable income exceeding MOP600,000 for the nine months ended 28 February 2019[105]. - The effective income tax rate of the Group was approximately 16.9% for the nine months ended February 28, 2019, down from approximately 20.6% for the same period in 2018[189]. Dividends and Retained Earnings - The Board does not recommend the payment of a dividend for the nine months ended 28 February 2019[6]. - The Company reported a retained earnings of HK$60,164,000 as of 28 February 2019, compared to HK$41,898,000 at the end of the same period in 2018[22]. Market Presence and Future Plans - The Company plans to continue expanding its market presence in Hong Kong, Macau, and the PRC, focusing on visual display solution services for concerts and events[27]. - The Group engaged in 323 pop concert shows during the nine months ended 28 February 2019, compared to 283 shows in the same period of 2018[122]. Financial Position and Liquidity - The Group recorded net current assets of approximately HK$55.7 million as of February 28, 2019, compared to approximately HK$30.6 million as of February 28, 2018[189]. - The Group's gearing ratio was approximately 6.7% as of February 28, 2019, down from approximately 11.7% as of February 28, 2018, primarily due to a decrease in bank borrowings[191]. - The maximum limit of the banking facilities available to the Group amounted to HK$9.1 million as of February 28, 2019[191]. - The Group maintained a healthy liquidity position throughout the nine months ended February 28, 2019, with ongoing credit assessments to reduce exposure to credit risk[195]. - As of February 28, 2019, the Group maintained a healthy liquidity position with no material capital commitments or contingent liabilities[198].

Financial Performance - The financial highlights for the six months ended November 30, 2017, indicate a significant change in performance compared to the previous period[12]. - The company reported a total revenue of HKD X million, reflecting a Y% increase/decrease year-over-year[14]. - The Group recorded an unaudited revenue of approximately HK$52.2 million for the six months ended 30 November 2018, representing an increase of approximately 45.7% compared to the corresponding period in 2017[15]. - The Group's unaudited profit for the six months ended 30 November 2018 was approximately HK$14.4 million, an increase of approximately HK$7.8 million or 116.2% compared to the same period in 2017[15]. - Earnings per share for the six months ended 30 November 2018 was HK$1.79, representing an increase of 102.2% from HK$0.89 in the same period of 2017[15]. - The profit for the period attributable to owners of the company was HK$6,976,000 for the six months ended 30 November 2018, compared to HK$24,613,000 for the same period in 2017, showing a decline of approximately 71.7%[48]. - The total comprehensive income for the period was HK$14,343,000, a significant decrease from HK$24,917,000 in the previous year, reflecting a decline of approximately 42.3%[48]. - For the six months ended 30 November 2018, profit attributable to owners of the Company was HK$14,333,800, compared to HK$6,976,000 for the same period in 2017, representing a 105.5% increase[104]. - Basic earnings per share for the six months ended 30 November 2018 was HK$1.79, up from HK$0.89 in 2017, reflecting a 100% increase[104]. Revenue Sources - Revenue from visual display solution services for the six months ended 30 November 2018 was HK$52,189,000, an increase of 45.5% compared to HK$35,830,000 for the same period in 2017[74]. - Equipment rental income for the three months ended 30 November 2018 was HK$22,783,000, compared to HK$18,689,000 for the same period in 2017, reflecting a growth of 21.2%[74]. - Revenue from Hong Kong for the six months ended November 30, 2018, was HK$13,187,000, up 20% from HK$10,988,000 in 2017[79]. - Revenue from the PRC for the six months ended November 30, 2018, was HK$26,178,000, representing a 27.5% increase from HK$20,588,000 in 2017[79]. - The Group's revenue from Macau for the six months ended November 30, 2018, was HK$9,913,000, significantly up from HK$4,102,000 in 2017, marking an increase of 142.5%[79]. Operational Efficiency - The increase in profit was primarily due to improved operational efficiency, a decrease in bank borrowing interest, and a reduction in imputed interest on payables for equipment[15]. - The management emphasized the importance of maintaining operational efficiency to support long-term growth objectives[14]. - The Group's gross profit margin improved due to better utilization of visual display equipment[15]. Future Outlook and Strategies - The company has outlined a future outlook with a projected revenue growth of A% for the next fiscal year[14]. - New product development initiatives are underway, focusing on innovative technologies expected to launch in the upcoming quarters[14]. - Market expansion strategies include targeting new geographic regions, aiming for a B% increase in market share[14]. - The company plans to continue its market expansion and product development strategies to enhance future growth prospects[49]. Financial Position - Total assets as of 30 November 2018 were HK$158.2 million, an increase from HK$149.6 million as of 31 May 2018[25]. - The Group's total equity as of 30 November 2018 was HK$121.5 million, compared to HK$107.1 million as of 31 May 2018[25]. - The company reported a total equity of HK$121,781,000 as of 30 November 2018, compared to HK$149,600,000 as of 31 May 2018, indicating a decrease of about 18.6%[43]. - The total liabilities as of 30 November 2018 amounted to HK$36,685,000, a decrease from HK$42,453,000 as of 31 May 2018, representing a reduction of about 13.6%[43]. - Cash and cash equivalents at the end of the period were HK$38,311,000, down from HK$47,380,000 at the end of the previous period, reflecting a decline of approximately 19.5%[66]. - The retained earnings as of 30 November 2018 stood at HK$56,236,000, compared to HK$30,955,000 as of 30 November 2017, indicating an increase of approximately 81.5%[48]. Expenses and Liabilities - Administrative expenses for the six months ended 30 November 2018 were HK$10.4 million, an increase from HK$8.2 million in the same period of 2017[18]. - The Group's total expenses for the six months ended November 30, 2018, were HK$34,940,000, up from HK$26,576,000 in 2017, indicating a rise of 31.5%[85]. - The Group's bank borrowings as of 30 November 2018 were HK$9,224,000, down from HK$10,998,000 as of 31 May 2018, representing a decrease of about 16.1%[43]. - The interest rates on bank loans ranged from 5.6% to 5.9% per annum for the six months ended November 30, 2018, compared to 4.0% to 6.0% per annum for the same period in 2017[132]. - The total payables for equipment as of 30 November 2018 were HK$6,506,000, down from HK$8,318,000 as of 31 May 2018, reflecting a decrease of 21.7%[123]. Shareholder Returns - The Board does not recommend the payment of a dividend for the six months ended 30 November 2018[15]. - The Group does not recommend the payment of dividends for the six months ended 30 November 2018, consistent with the previous year[99].