Financial Performance - The group's revenue decreased from approximately HKD 6,329,000 for the three months ended March 31, 2020, to approximately HKD 4,430,000 for the three months ended March 31, 2021, a reduction of about 30%[6]. - Gross profit for the three months ended March 31, 2021, was approximately HKD 421,000, with a gross margin of approximately 9.50%, compared to a gross profit of approximately HKD 1,019,000 and a gross margin of 16.10% for the same period in 2020[6]. - Loss attributable to equity shareholders decreased from approximately HKD 2,514,000 for the three months ended March 31, 2020, to approximately HKD 1,673,000 for the same period in 2021, a reduction of about 33%[6]. - The operating loss for the three months ended March 31, 2021, was approximately HKD 1,616,000, an improvement from an operating loss of HKD 2,379,000 for the same period in 2020[14]. - The basic and diluted loss per share for the three months ended March 31, 2021, was HKD 0.21, compared to HKD 0.31 for the same period in 2020[16]. - The total comprehensive loss attributable to equity shareholders for the three months ended March 31, 2021, was approximately HKD 1,668,000, compared to HKD 2,386,000 for the same period in 2020[16]. - The profit before tax for the three months ended March 31, 2021, was a loss of HKD 1,692,000, compared to a loss of HKD 2,603,000 in the same period of 2020, indicating an improvement[38]. - The total comprehensive loss for the three months ended March 31, 2021, was HKD 1,668,000, compared to a loss of HKD 2,386,000 in the same period of 2020[21]. Revenue Breakdown - The revenue from Hong Kong for the three months ended March 31, 2021, was HKD 4,074,000, down from HKD 5,927,000 in 2020, representing a decline of 31%[39]. - The revenue from Mainland China for the three months ended March 31, 2021, was HKD 356,000, compared to HKD 402,000 in 2020, showing a decrease of 11.5%[39]. - The group's revenue decreased from approximately HKD 6,329,000 to approximately HKD 4,430,000, a decline of about 30% due to reduced travel demand caused by the COVID-19 pandemic[62]. Cost Management - The company experienced a significant decrease in service costs from HKD 5,310,000 in 2020 to HKD 4,009,000 in 2021, reflecting a reduction of approximately 25%[14]. - Financing costs decreased from HKD 224,000 in 2020 to HKD 76,000 in 2021, a reduction of approximately 66%[14]. - Administrative expenses remained relatively stable at approximately HKD 3,130,000 for the three months ended March 31, 2021, compared to HKD 3,356,000 in the same period last year[69]. - The group incurred depreciation expenses of HKD 1,890,000 for the three months ended March 31, 2021, down from HKD 2,650,000 in 2020[38]. Other Income and Financial Position - Other income increased significantly to approximately HKD 1,018,000 for the three months ended March 31, 2021, compared to HKD 95,000 for the same period in 2020, primarily due to COVID-19 related rent concessions[6]. - The loss attributable to equity shareholders decreased from approximately HKD 2,514,000 to approximately HKD 1,673,000, a reduction of about 33% due to increased other income from COVID-19 related rent concessions[74]. - As of March 31, 2021, the group had no interest-bearing borrowings, indicating a stable financial position[80]. - The group maintained a cash and cash equivalents level deemed appropriate for operational funding and managing liquidity risks[80]. Business Strategy and Development - The company is actively monitoring the impact of COVID-19 on its business and has implemented contingency measures[50]. - The company plans to expand its self-service digital photo booth network by replicating its successful business model from Hong Kong to mainland China and other countries[53]. - The company is reassessing its existing projects, including the expansion of its self-service photo booth network and upgrading its IT infrastructure[57]. - The company aims to diversify its business model by allocating further funds and resources to upgrade its IT infrastructure[61]. - The company is seeking new locations with good business development potential for its self-service photo booth network[57]. - Business development in Guangdong Province and Hong Kong has faced delays due to the COVID-19 pandemic and changing government policies regarding identification photos[124]. - The company is continuously evaluating and modifying its existing plans to achieve sustainable business growth and long-term shareholder benefits[124]. Shareholder Information - The company did not recommend the declaration of any interim dividend for the three months ended March 31, 2021[6]. - The company did not declare any interim dividend for the three months ended March 31, 2021, and March 31, 2020[45]. - The company has not confirmed any withholding tax for declared dividends during the relevant period[45]. - As of March 31, 2021, Causeway Treasure holds 427,600,560 shares, representing approximately 53.45% of the company's total issued shares[101]. - The beneficial ownership of Causeway Treasure is divided among Chen Yongji and Chen Tianqi, each owning approximately 47.25%, and Ouyang Yinghe owning about 5.5%[101]. - Photo-Me International Plc. holds 109,972,500 shares, accounting for approximately 13.75% of the company's equity[108]. - The company’s major shareholders, the Chen family, hold approximately 53.45% of the issued share capital[116]. Compliance and Governance - The company adhered to all applicable corporate governance codes during the reporting period, ensuring shareholder interests were protected[92]. - The board consists of seven directors, including three independent non-executive directors, ensuring proper governance and protection of shareholder interests[113]. - The company has appointed Eight Financial Limited as a compliance advisor to provide guidance on GEM listing rules compliance[95]. - There were no undisclosed interests or short positions held by directors or senior management in the company or its associated entities as of March 31, 2021[105]. - The company maintains independence from any competitive business interests reported by its directors[113]. Capital Raising and Utilization - The company raised approximately HKD 62,000,000 from the sale of 200,000,000 shares at HKD 0.31 per share, with a net amount of about HKD 31,852,000 after expenses[120]. - As of March 31, 2021, the company has utilized approximately HKD 7,604,000 of the net proceeds, leaving HKD 24,248,000 unutilized[121]. - The company plans to expand its self-service photo identification camera network in Guangdong Province, with HKD 29,381,000 allocated for this purpose, of which HKD 6,652,000 has been used[121]. - All unutilized proceeds are currently deposited in a licensed bank in Hong Kong[125].

Financial Performance - For the fiscal year ended December 31, 2020, the company generated revenue of approximately HKD 19,979,000[37]. - The loss attributable to the owners of the company was approximately HKD 4,478,000, primarily due to the impact of the COVID-19 outbreak[37]. - The company's revenue decreased from approximately HKD 59,313,000 for the year ended December 31, 2019, to approximately HKD 19,979,000 for the year ended December 31, 2020, representing a decline of about 66.4%[49]. - The gross profit for the year ended December 31, 2020, was approximately HKD 1,757,000, with a gross margin of about 8.79%, down from a gross profit of approximately HKD 21,975,000 and a gross margin of 37.05% for the previous year[51]. - Administrative expenses decreased from approximately HKD 13,524,000 for the year ended December 31, 2019, to approximately HKD 11,813,000 for the year ended December 31, 2020, a reduction of about 12.6%[53]. - Financing costs for the year ended December 31, 2020, were approximately HKD 444,000, down from HKD 553,000 for the previous year[59]. - The loss attributable to the company's owners decreased from approximately HKD 4,946,000 for the year ended December 31, 2019, to approximately HKD 4,478,000 for the year ended December 31, 2020, a reduction of about 468,000 HKD[62]. - Capital expenditures for the year ended December 31, 2020, were approximately HKD 847,000, significantly higher than HKD 21,000 for the year ended December 31, 2019[73]. - As of December 31, 2020, the company's distributable reserves were approximately HKD 15,159,000, with no final dividend declared for the fiscal year[137]. Dividend Policy - The company did not recommend the declaration of any final dividend for the year ended December 31, 2020, to maintain sufficient funds for future business development[38]. - The interim dividend declared is HKD 0.005 per share, totaling HKD 4,000,000, consistent with the previous year[90]. - The mid-term dividend of HKD 0.005 per share was paid on September 18, 2020, with no final dividend recommended for the year ending December 31, 2020[116]. - The company has a policy to consider various factors before declaring dividends, including financial performance and capital expenditure needs[148]. Business Strategy and Operations - The company plans to expand its self-service digital photo booth network and upgrade its verification center and IT infrastructure[36]. - The company aims to seize market opportunities to expand its self-service digital photo booth network[36]. - The company is exploring various potential projects to strengthen its business and diversify its core operations[36]. - The company is reallocating more funds and resources towards IT infrastructure to optimize its business model[36]. - The company is exploring opportunities in Guangdong Province and other regions in mainland China to expand its self-service identity photo digital camera network[80]. - The company is optimistic about its core business and plans to expand its self-service digital photo booth network to achieve sustainable business growth[46]. Impact of COVID-19 - The COVID-19 pandemic significantly affected the digital photo booth market and the company's operational environment, causing delays in planned expansions and acquisitions[36]. - The company has faced additional uncertainties in the photography service market due to the pandemic[36]. - The ongoing COVID-19 pandemic has created significant uncertainty in the photography services market, impacting sales and increasing administrative costs[88]. - The company anticipates a temporary decline in demand for identification photos due to the COVID-19 pandemic, expecting a recovery as the situation improves[46]. - The company has received various subsidies from the Hong Kong government to mitigate the financial impact of the COVID-19 pandemic[47]. Corporate Governance - The company has maintained compliance with relevant laws and regulations, with no significant violations reported for the year ending December 31, 2020[123]. - The company emphasizes its commitment to environmental sustainability and aims to minimize the impact of its business activities on the environment[124]. - The company has established good relationships with key stakeholders, including employees, customers, and suppliers, with no major disputes reported for the year ending December 31, 2020[126]. - The company maintains high standards of corporate governance practices[190]. - The independent non-executive directors confirmed their independence according to GEM listing rules[143]. Management and Shareholding - The company has a strong management team with extensive experience in the photography and insurance industries[107]. - The executive directors, including the chairman and CEO, hold 53.45% of the company's shares through Causeway Treasure[151]. - Causeway Treasure holds a beneficial ownership of 427,600,560 shares, representing 53.45% of the company's equity[159]. - The company has a total of 427,600,560 shares held by Causeway Treasure, which is controlled by Mr. Chan Wing Chai, Ms. Au Yeung Ying Ho, and Mr. Chan Tin Ki[159]. - The company has appointed a compliance advisor to provide guidance on compliance with GEM listing rules[191]. Risks and Challenges - The company reported significant risks related to the demand for products, which is closely tied to identity application or renewal needs, potentially affecting financial performance[119]. - The company has established a liquidity risk management framework to monitor and maintain appropriate levels of cash and cash equivalents[72]. - The company has not made any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[84]. - There were no significant legal proceedings involving the company as of December 31, 2020, and no major lawsuits or claims were pending[186].

Financial Performance - The group's revenue decreased from approximately HKD 47,622,000 for the nine months ended September 30, 2019, to approximately HKD 15,924,000 for the nine months ended September 30, 2020, a decline of about 66.6%[7] - Gross profit for the nine months ended September 30, 2020, was approximately HKD 1,117,000, down from HKD 17,920,000 for the same period in 2019, resulting in a gross margin of 7.01% compared to 37.63% in 2019[7] - The loss attributable to equity shareholders increased from a profit of approximately HKD 6,133,000 for the nine months ended September 30, 2019, to a loss of approximately HKD 1,835,000 for the same period in 2020[7] - The group reported an operating loss of approximately HKD 1,463,000 for the nine months ended September 30, 2020, compared to an operating profit of HKD 7,915,000 for the same period in 2019[16] - The group reported a net loss of approximately HKD 1,835,000 for the nine months ended September 30, 2020, compared to a profit of HKD 6,133,000 for the same period in 2019[16] - The total comprehensive income for the nine months ended September 30, 2020, was a loss of HKD 1,948,000 compared to a profit of HKD 5,926,000 in the same period of 2019[18] - The basic and diluted loss per share for the nine months ended September 30, 2020, was HKD (0.23) compared to earnings of HKD 0.77 in the same period of 2019[18] - Revenue for the nine months ended September 30, 2020, was HKD 15,924,000, a decrease from HKD 47,622,000 in the same period of 2019[36] - The reported segment profit for the nine months ended September 30, 2020, was HKD 6,739,000, down from HKD 16,820,000 in the same period of 2019[36] - The company incurred a loss of HKD 1,835,000 during the period, compared to a profit of HKD 6,133,000 in the previous year[21] Impact of COVID-19 - The COVID-19 pandemic has significantly impacted the photography service market and the group's operating environment since early 2020, contributing to the revenue decline[7] - The impact of COVID-19 has created significant uncertainty in the photography service market, affecting sales and operational costs[54] - The company has taken measures to mitigate the impact of COVID-19, including negotiating fee reductions and seeking better terms from suppliers[54] - The company's financial performance reflects the ongoing challenges posed by the pandemic, with a focus on cost management and exploring new revenue streams moving forward[7] - Business development in Guangdong Province and Hong Kong has been delayed due to the COVID-19 outbreak and changing government policies[125] Administrative and Other Expenses - Administrative expenses decreased from HKD 10,138,000 for the nine months ended September 30, 2019, to HKD 8,946,000 for the same period in 2020, a reduction of about 11.7%[16] - Other income increased significantly to approximately HKD 6,696,000 for the nine months ended September 30, 2020, compared to HKD 356,000 for the same period in 2019[16] - The company reported financing costs of HKD 359,000 for the nine months ended September 30, 2020[36] - The company experienced a foreign exchange loss of HKD 113,000 during the period[21] - Service costs accounted for approximately 82.32% and 80.66% of total service costs for the nine months ended September 30, 2020, and 2019, respectively[65] Dividends and Shareholder Information - The company does not recommend the declaration of any interim dividend for the nine months ended September 30, 2020[7] - The company declared dividends of HKD 4,000,000 during the period, consistent with the previous year[21] - The company declared an interim dividend of HKD 0.005 per share, totaling HKD 4,000,000, which was approved by shareholders[47] - The company’s major shareholders include Mr. Chan Wing Chai and Mr. Chan Tin Ki, each holding approximately 53.45% of the shares[103] - As of September 30, 2020, Causeway Treasure holds 427,600,560 shares, representing approximately 53.45% of the company's equity[110] - Photo-Me International Plc. owns 109,972,500 shares, accounting for 13.75% of the company's equity[110] Assets and Liabilities - The company’s total assets decreased to HKD 51,241,000 as of September 30, 2020, from HKD 62,227,000 as of September 30, 2019[21] - As of September 30, 2020, the company had no interest-bearing borrowings, resulting in an asset-liability ratio being not applicable[81] - The company has established a liquidity risk management framework to manage short-term, medium-term, and long-term funding needs[81] - There were no significant investments made by the company as of September 30, 2020, and September 30, 2019[83] - The company did not engage in any major acquisitions or disposals of subsidiaries, associates, or joint ventures during the periods ending September 30, 2020, and September 30, 2019[86] - There were no assets pledged as collateral by the company as of September 30, 2020, and September 30, 2019[87] - The company reported no significant contingent liabilities as of September 30, 2020, and September 30, 2019[88] Business Development and Future Plans - The company is actively exploring potential projects to strengthen its business and diversify its operations in response to the ongoing challenges posed by the COVID-19 pandemic[61] - The company is focusing on expanding its self-service digital photo booth network and upgrading its verification centers and IT infrastructure[61] - The company has engaged a vendor to upgrade its IT infrastructure, including remote monitoring systems and electronic payment facilities[122] - The company plans to assess the possibility of upgrading verification systems in Hong Kong and mainland China[122] - The company will reassess existing plans to achieve sustainable business growth and long-term benefits for shareholders[125] Compliance and Governance - The company has complied with all applicable corporate governance code provisions as of September 30, 2020[93] - The company has appointed a compliance advisor to provide guidance on compliance with GEM listing rules[96] - The audit committee reviewed the unaudited consolidated results for the nine months ended September 30, 2020, ensuring compliance with applicable accounting standards and GEM listing rules[118] Share Sales and Proceeds - The company raised approximately HKD 62,000,000 from the sale of 200,000,000 shares at HKD 0.31 per share, with a net amount of approximately HKD 31,852,000[120] - As of September 30, 2020, approximately HKD 7,126,000 of the net proceeds from the share sale has been utilized[121] - All unutilized funds have been deposited in licensed banks in Hong Kong[126]

Financial Performance - The group's revenue decreased from approximately HKD 31,722,000 to HKD 11,332,000, a decline of about 64.3% for the six months ended June 30, 2020[8]. - Gross profit for the six months ended June 30, 2020, was approximately HKD 1,505,000, down from HKD 11,963,000, resulting in a gross margin of 13.28% compared to 37.71% in the previous year[8][17]. - Loss attributable to equity shareholders increased from a profit of approximately HKD 4,284,000 to a loss of approximately HKD 5,381,000, primarily due to weak revenue caused by the COVID-19 outbreak[8][17]. - Operating loss for the period was approximately HKD 5,182,000, compared to an operating profit of HKD 5,484,000 in the previous year[17]. - The total comprehensive loss attributable to equity shareholders for the six months ended June 30, 2020, was HKD (5,264,000), compared to a profit of HKD 4,297,000 in 2019, indicating a significant decline[20]. - Basic and diluted loss per share for the period was HKD (0.67), a decrease from a profit of HKD 0.54 per share in the previous year[20]. - The company incurred a loss before tax of HKD (5,404,000) for the period, compared to a profit before tax of HKD 5,269,000 in the previous year[31]. - The company reported a net other loss of approximately HKD 335,000 for the six months ended June 30, 2020, compared to HKD 91,000 for the same period in 2019, primarily due to foreign exchange losses[105]. - The group’s total comprehensive loss for the period was HKD 5,404,000, compared to a profit of HKD 5,269,000 in the previous year[56]. Revenue Breakdown - For the six months ended June 30, 2020, total revenue was HKD 11,332,000, a decrease from HKD 31,722,000 for the same period in 2019, representing a decline of approximately 64.3%[56]. - Revenue from Hong Kong was HKD 10,671,000, down from HKD 29,750,000 in 2019, indicating a decrease of about 64.1%[60]. - Revenue from Mainland China was HKD 661,000, compared to HKD 1,972,000 in 2019, reflecting a decline of approximately 66.5%[60]. - The reported segment profit before tax for Hong Kong was HKD 448,000, while for Mainland China it was HKD 409,000, resulting in a combined segment profit of HKD 857,000[56]. Assets and Liabilities - Non-current assets decreased from HKD 12,231,000 as of December 31, 2019, to HKD 10,243,000 as of June 30, 2020, reflecting a reduction of approximately 16.2%[23]. - Current assets also declined from HKD 58,115,000 to HKD 52,690,000, a decrease of about 9.3%[23]. - Cash and bank balances decreased from HKD 54,159,000 to HKD 50,021,000, representing a decline of approximately 7.9%[34]. - The total equity attributable to equity shareholders decreased from HKD 51,241,000 to HKD 45,977,000, a decline of approximately 10.8%[25]. - The company reported a decrease in trade receivables from HKD 1,186,000 to HKD 531,000, a reduction of about 55.2%[23]. Operational Challenges - The company faced significant uncertainty in the photography service market due to the COVID-19 pandemic, impacting its operational environment[8]. - The ongoing uncertainty due to COVID-19 has led the company to reassess existing projects and consider new opportunities for sustainable growth[98]. - The company has taken measures to mitigate the impact of COVID-19, including negotiating for fee reductions with landlords and seeking better terms from suppliers[91]. - Business development in Guangdong Province and Hong Kong has faced delays due to the COVID-19 outbreak and changing government policies[158]. Dividends and Shareholder Matters - The company proposed an interim dividend of HKD 0.005 per share, subject to approval at the upcoming extraordinary general meeting[8]. - The company proposed an interim dividend of HKD 0.005 per share, totaling HKD 4,000,000, subject to shareholder approval at a special general meeting[128]. - Causeway Treasure holds a total of 427,600,560 shares, representing approximately 53.45% of the company's equity[146]. - The beneficial ownership of Causeway Treasure is divided among Chen Yongji and Chen Tianqi, each holding about 47.25%, and Ouyang Yinghe holding approximately 5.5%[143]. Governance and Compliance - The company is committed to maintaining transparency and accuracy in its financial reporting, as confirmed by the board of directors[4]. - The audit committee has reviewed the unaudited consolidated results for the six months ended June 30, 2020, and found them compliant with applicable accounting standards and regulations[154]. - The board consists of eight directors, including three independent non-executive directors, ensuring proper governance and protection of shareholder interests[150]. - The company has complied with all applicable corporate governance codes as of June 30, 2020[126]. Employee and Operational Costs - Total employee costs decreased to 4,782,000 HKD in 2020 from 5,437,000 HKD in 2019, reflecting a reduction of approximately 12%[1]. - The company maintained a workforce of 58 employees as of June 30, 2020, down from 66 employees as of June 30, 2019[114]. - The company incurred depreciation expenses of 226,000 HKD for property, plant, and equipment, down from 1,481,000 HKD in the previous year, indicating an 84% decrease[1]. Future Plans and Investments - The company plans to expand its self-service digital photo booth network by installing new machines in various locations and exploring business acquisitions[94]. - The company plans to expand its digital photo service network in Guangdong Province, with an expected expenditure of HKD 29,381,000 for this initiative[157]. - The company has engaged a vendor to upgrade its IT infrastructure, including remote monitoring systems and electronic payment facilities, to meet customer expectations[95]. - The company has applied for government subsidies in response to the challenging business environment caused by the pandemic[94]. Financial Management - The company has implemented a liquidity risk management framework to monitor and maintain appropriate levels of cash and cash equivalents for operational funding[117]. - The company has not engaged in any foreign exchange hedging agreements to manage currency risks, primarily dealing in Renminbi and Hong Kong dollars[118]. - The company has established a compensation committee to review the remuneration policies and structures for directors and senior management, considering the company's performance and market practices[114]. - The company has not made any significant investments or acquisitions during the six months ended June 30, 2020[119].

Financial Performance - The group's revenue decreased from approximately HKD 16,010,000 to HKD 6,329,000, a decline of about 60.5% for the three months ended March 31, 2020[7] - Gross profit for the same period dropped from HKD 6,092,000 to HKD 1,019,000, resulting in a gross margin of 16.10% compared to 38.05% in the previous year[7] - The loss attributable to equity shareholders increased from a profit of HKD 2,331,000 to a loss of HKD 2,514,000, primarily due to weak revenue caused by the COVID-19 outbreak[7] - Operating loss for the quarter was HKD 2,379,000, compared to an operating profit of HKD 2,884,000 in the same period last year[16] - The company reported a net loss of HKD 2,514,000 for the quarter, compared to a profit of HKD 2,331,000 in the same period last year[16] - The total comprehensive income for the three months ended March 31, 2020, was a loss of HKD 2,386,000, compared to a profit of HKD 2,540,000 in the same period of 2019[30] - The company reported a loss before tax of HKD 2,603,000 for the three months ended March 31, 2020, compared to a profit of HKD 2,789,000 in the previous year[47] - Basic and diluted loss per share was HKD 0.31, compared to earnings of HKD 0.29 per share in the prior year[19] Revenue Breakdown - Revenue from the Hong Kong market was HKD 5,927,000, a significant decrease of 60.7% from HKD 15,031,000 in the same quarter of 2019[48] - The reported segment profit for the Hong Kong division was HKD 339,000, down from HKD 5,843,000 in the previous year, indicating a decline of 94.2%[47] - The company did not have any single customer contributing 10% or more to total revenue during the reporting period[48] Expenses and Costs - Administrative expenses increased slightly from HKD 3,260,000 to HKD 3,356,000, reflecting ongoing operational costs despite reduced revenue[16] - Other income decreased significantly, with only HKD 67,000 reported compared to HKD 67,000 in the previous year[16] - The company incurred financing costs of HKD 224,000 for the three months ended March 31, 2020, compared to HKD 42,000 in the same period of 2019[47] - Service costs accounted for approximately 80.43% of total service costs for the three months ended March 31, 2020, compared to 80.70% for the same period in 2019[69] Impact of COVID-19 - The company has been monitoring the impact of the COVID-19 pandemic on its business and has taken measures to mitigate its effects, including negotiating for fee reductions with landlords[60] - The company has acknowledged that the demand for identification photos has decreased due to the COVID-19 outbreak but expects a recovery once the situation improves[63] - Business development in Guangdong Province and Hong Kong has been delayed due to the COVID-19 outbreak and changing government policies[123] Assets and Liabilities - The company’s total assets as of March 31, 2020, were HKD 48,855,000, down from HKD 60,301,000 as of March 31, 2019[30] - The group had no interest-bearing borrowings as of March 31, 2020, resulting in an asset-liability ratio being not applicable[82] - The company had no significant contingent liabilities as of March 31, 2020[88] - The group has no pledged assets as of March 31, 2020[87] Corporate Governance and Compliance - The company has complied with all applicable provisions of the corporate governance code as of March 31, 2020[92] - The audit committee reviewed the unaudited consolidated results for the three months ended March 31, 2020, and found them compliant with applicable accounting standards[116] Future Plans and Strategies - The company plans to expand its self-service digital photo booth network by installing new machines in various locations and potentially acquiring businesses to replicate its successful model in mainland China and other countries[63] - The company aims to upgrade its IT infrastructure, including remote monitoring systems and electronic payment facilities, in response to customer expectations and changing government policies in mainland China[64] - The company is currently discussing several business opportunities in Guangdong Province and other provinces in mainland China[120] - The company is focused on expanding its market presence and enhancing its product offerings in the upcoming quarters[127] - Future outlook suggests a commitment to innovation and development of new technologies to drive growth[127] - The company aims to improve user data analytics to better understand customer needs and preferences[127] - Strategic plans include potential mergers and acquisitions to strengthen market position[127] - The management emphasizes the importance of maintaining operational efficiency to support financial performance[127] - The company is exploring new strategies to enhance shareholder value and drive long-term growth[127] - There is a focus on enhancing customer engagement through improved service offerings[127] - The company is committed to transparency and accuracy in financial reporting, ensuring stakeholders are well-informed[125] Shareholder Information - Major shareholder Causeway Treasure holds 427,600,560 shares, representing approximately 53.45% of the company's equity[107] - The company raised approximately HKD 62,000,000 from the sale of 200,000,000 shares at HKD 0.31 per share, with a net amount of approximately HKD 31,852,000[119] - As of March 31, 2020, approximately HKD 7,126,000 of the net proceeds had been utilized, leaving approximately HKD 24,726,000 unutilized[120] - The company has not purchased, sold, or redeemed any of its listed securities during the three months ended March 31, 2020[94] - The company has no unutilized stock options as of the reporting date[111] - No stock options were granted, lapsed, exercised, or cancelled under the share option scheme during the three months ended March 31, 2020[111]

Financial Performance - For the year ended December 31, 2019, the group generated revenue of approximately HKD 59,313,000, while the loss attributable to owners of the group was approximately HKD 4,946,000[48]. - The company's revenue increased from approximately HKD 54,733,000 for the year ended December 31, 2018, to approximately HKD 59,313,000 for the year ended December 31, 2019, representing an increase of about HKD 4,580,000[63]. - The gross profit for the year ended December 31, 2019, was approximately HKD 21,975,000, with a gross profit margin of approximately 37.05%, down from 42.45% in the previous year[64]. - The company reported a loss attributable to owners of approximately HKD 4,946,000 for the year ended December 31, 2019, an increase of about HKD 6,726,000 from a profit of approximately HKD 1,780,000 for the year ended December 31, 2018[74]. - The administrative expenses increased from approximately HKD 12,996,000 for the year ended December 31, 2018, to approximately HKD 13,524,000 for the year ended December 31, 2019, primarily due to increases in employee costs and professional fees[67]. Business Strategy and Development - The group aims to expand its digital photo booth network by installing machines in selected locations and acquiring businesses in the market[47]. - The group plans to continue developing its existing business while seeking attractive locations for digital photo booths to enhance profitability[47]. - The company plans to expand its self-service digital photo booth network in Hong Kong and replicate its successful business model in mainland China and other countries[58]. - The company is actively researching and seeking new business opportunities to achieve sustainable growth and long-term benefits for shareholders[62]. - The company is exploring opportunities to expand its digital photo booth network to locations such as railway stations, shopping malls, and large residential areas in mainland China[58]. Operational Challenges - The group recognizes significant challenges in the operating environment due to the COVID-19 outbreak and ongoing changes in government policies[47]. - The outbreak of COVID-19 has introduced uncertainties to the photography service market, significantly impacting sales and potentially affecting employee attendance[94]. - The company is facing downward pressure on its Hong Kong business due to unexpected policy changes regarding the issuance of identity documents[57]. - The company has experienced a risk related to the demand for its products, which is closely tied to the application and renewal of identification documents[119]. Corporate Governance and Management - The company has a strong board of directors with members having extensive experience in various industries, including over 42 years in the garment industry and over 37 years in the self-service photography sector[101][102]. - The company’s financial oversight is managed by an executive director with around 32 years of experience in accounting and financial management[99]. - The company has established a remuneration committee to review the remuneration policies and structures for directors and senior management, considering the group's operational performance[146]. - The board of directors consists of two executive directors, two non-executive directors, and three independent non-executive directors[200]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific matters[197]. Compliance and Risk Management - The company has maintained compliance with relevant laws and regulations, confirming no significant violations that could impact its operations[121]. - The company has established a liquidity risk management framework to monitor and maintain appropriate levels of cash and cash equivalents[80]. - The independent non-executive directors confirmed their independence according to GEM listing rules[140]. - The auditor has concluded that the ongoing connected transactions have been approved by the board and comply with the company's pricing policy[183]. - The company has appointed a compliance advisor to provide guidance on compliance with GEM listing rules[192]. Shareholder Information - The company reported that the executive directors hold a total of 427,600,560 shares, representing 53.45% of the issued shares[151]. - Major shareholder Causeway Treasure holds 427,600,560 shares, representing approximately 53.45% of the company's equity[159]. - Photo-Me International Plc. is a beneficial owner with 109,972,500 shares, accounting for 13.75% of the company's equity[159]. - The independent non-executive directors hold approximately 7.80% of the shares[151]. - The company’s total distributable reserves as of December 31, 2019, were approximately HK$20,043,000[133]. Dividend Policy - The board does not recommend the declaration of a final dividend for the year ended December 31, 2019, to maintain sufficient funds for future business development[49]. - The company did not declare a final dividend for the year ended December 31, 2019, after paying an interim dividend of HKD 0.005 per share[95]. - The company’s dividend policy considers various factors, including actual and expected financial performance and operational funding needs[146]. Supplier Relationships - The company reported a significant reliance on its major supplier, Photo-Me International Plc, which accounted for approximately 93.2% of total procurement in the fiscal year ending December 31, 2019[129]. - The main supply agreement with Photo-Me International Plc. has been in effect since July 9, 2017, and is expected to continue until December 31, 2019[179]. - The total transaction amount with Photo-Me International Plc. and its subsidiaries for the fiscal year ending December 31, 2019, is capped at HKD 6,700,000, which includes HKD 5,300,000 for digital cameras and components, and HKD 1,400,000 for consumables[181]. Corporate Social Responsibility - The company made donations amounting to approximately HKD 26,000 for scholarships to students facing adversity during the fiscal year ending December 31, 2019[185]. - The company aims to enhance its environmental, social, and governance (ESG) practices to improve corporate governance and stakeholder value[122].

Financial Performance - The group's revenue increased by approximately HKD 6,717,000 or 16.42% to HKD 47,622,000 for the nine months ended September 30, 2019, compared to HKD 40,905,000 for the same period in 2018[7]. - The gross profit for the nine months ended September 30, 2019, was approximately HKD 17,920,000, resulting in a gross margin of 37.63%, down from HKD 18,488,000 and a gross margin of 45.20% in the previous year[7]. - The group recorded a profit attributable to owners of the company of approximately HKD 6,133,000 for the nine months ended September 30, 2019, compared to a loss of HKD 172,000 for the same period in 2018, primarily due to the absence of listing expenses[7]. - The group's profit before tax (excluding non-recurring listing expenses) was approximately HKD 7,582,000 for the nine months ended September 30, 2019, compared to HKD 1,144,000 in the previous year[12]. - The total comprehensive income for the period was HKD 5,926,000, compared to a loss of HKD 771,000 in the same period last year[12]. - Basic earnings per share for the nine months ended September 30, 2019, was HKD 0.77, an increase from HKD (0.02) in the same period of 2018[14]. - The company reported a profit of HKD 1,849,000 for the three months ended September 30, 2019, compared to HKD 2,823,000 in the same period of 2018, indicating a decrease of approximately 34.5%[14]. - The total comprehensive income for the three months ended September 30, 2019, was HKD 1,629,000, down from HKD 2,507,000 in the same period of 2018, reflecting a decline of about 35%[14]. Expenses and Income - The administrative expenses increased to HKD 10,138,000 for the nine months ended September 30, 2019, from HKD 9,591,000 in the previous year[12]. - The group reported other income of HKD 356,000 for the nine months ended September 30, 2019, compared to HKD 161,000 in the previous year[12]. - The financing costs decreased significantly to HKD 333,000 from HKD 2,000 in the previous year[12]. - Other income increased from approximately HKD 161,000 to about HKD 356,000 due to higher levels of fixed deposits[54]. Dividends and Shareholder Information - The company did not recommend the declaration of any interim dividend for the nine months ended September 30, 2019[7]. - The company declared an interim dividend of HKD 0.005 per share, totaling HKD 4,000,000 for the six months ended June 30, 2019[37]. - The major shareholder, Causeway Treasure, holds 427,600,560 shares, representing approximately 53.45% of the company's equity[85]. - Photo-Me International Plc. is a beneficial owner with 109,972,500 shares, accounting for approximately 13.75% of the company's equity[85]. - The company’s major shareholders, including the Chen family, hold approximately 53.45% of the total issued share capital[91]. Corporate Governance and Compliance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, ensuring compliance and accountability[73]. - The audit committee has reviewed the unaudited consolidated results for the nine months ended September 30, 2019, and found them compliant with applicable accounting standards and GEM listing rules[92]. - All directors confirmed compliance with the trading standards as per GEM Listing Rules during the nine months ending September 30, 2019[74]. - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[73]. Future Outlook and Expansion Plans - The company aims to continue its market expansion and product development strategies in the upcoming quarters[12]. - The company plans to expand its self-service digital photo booth network in Hong Kong and replicate its business model in China and other countries, indicating significant growth potential[45]. - The company is currently in discussions with Guangzhou Zhuoteng Technology Co., Ltd. regarding several business opportunities in Guangdong Province and other provinces[95]. - The expansion plan in Guangdong Province has been delayed due to ongoing changes in government policies regarding identity photos[95]. - The company is monitoring market responses to new policies affecting its operations in Hong Kong and China, aiming to mitigate adverse impacts[46]. Capitalization and Financial Position - The company completed a capitalization issue on February 28, 2018, raising a total of HKD 62,000,000 through the issuance of new shares[19]. - As of September 30, 2019, the total equity attributable to the company's owners was HKD 62,227,000, an increase from HKD 58,316,000 at the end of the previous reporting period[16]. - As of September 30, 2019, the company had no significant contingent liabilities[69]. - The company raised approximately HKD 62 million from the sale of 200,000,000 shares at HKD 0.31 per share, with a net amount of approximately HKD 31.85 million[94]. - As of September 30, 2019, the company has utilized approximately HKD 7.03 million of the net proceeds, leaving approximately HKD 24.83 million unutilized[95]. - All unutilized proceeds have been deposited in a licensed bank in Hong Kong as of the reporting date[98]. Operational Developments - The company primarily operates in Hong Kong and Guangdong Province, China, providing digital photography services through self-service photo booths[21]. - The group has received a notification from the Hong Kong government for a 24-month contract to provide automatic photography services starting from March 1, 2019[48]. - The group is actively exploring opportunities to expand its self-service digital photo booth network and diversify its business for sustainable growth[51]. - The group is in discussions to expand its digital photo booth network to locations such as railway stations and shopping malls in China[48]. - The group has invited several suppliers to provide quotes for upgrading its IT infrastructure, including telemetry systems and electronic payment facilities[49]. - The company is currently reviewing terms and negotiating with suppliers regarding the upgrade of its verification center and IT infrastructure[97]. Significant Events - No significant events occurred after the reporting period that would impact the company's financial position[43]. - No share buybacks, sales, or redemptions of the company's listed securities occurred during the nine months ending September 30, 2019[75]. - No stock options were granted, lapsed, exercised, or cancelled under the company's share option scheme during the nine months ending September 30, 2019[88]. - There were no disclosed transactions requiring announcement during the reporting period[73].

Financial Performance - The group's revenue increased by approximately HKD 5,896,000 or 22.83% to HKD 31,722,000 for the six months ended June 30, 2019, compared to HKD 25,826,000 for the same period in 2018[10] - The gross profit for the six months ended June 30, 2019, was approximately HKD 11,963,000, resulting in a gross margin of 37.71%, down from 47.15% in the previous year[10] - The group recorded a profit attributable to owners of the company of approximately HKD 4,284,000 for the six months ended June 30, 2019, compared to a loss of HKD 2,995,000 for the same period in 2018, primarily due to the absence of listing expenses[10] - The profit after tax (excluding non-recurring listing expenses) for the six months ended June 30, 2019, was approximately HKD 4,284,000, compared to HKD 4,794,000 for the same period in 2018[10] - The total comprehensive income for the period was HKD 4,297,000, compared to a loss of HKD 3,278,000 in the previous year[15] - The company reported a profit attributable to owners of HKD 4,284,000 for the six months ended June 30, 2019, compared to a loss of HKD 2,995,000 in the same period of 2018, marking a significant turnaround[17] - The basic earnings per share increased to HKD 0.54 from a loss of HKD 0.41 year-over-year, indicating improved profitability[17] Revenue Breakdown - Revenue from Hong Kong was HKD 29,750,000, up 28.8% from HKD 23,090,000 in 2018, while revenue from China decreased by 27.9% to HKD 1,972,000 from HKD 2,736,000[55] - The group's revenue for the six months ended June 30, 2019, was HKD 31,722,000, representing a 22.5% increase from HKD 25,826,000 in the same period of 2018[55] Expenses and Costs - Administrative expenses for the period were approximately HKD 6,567,000, slightly down from HKD 6,659,000 in the previous year[15] - The group incurred financing costs of HKD 215,000 for the period, compared to HKD 2,000 in the previous year[15] - The total employee costs for the period were HKD 5,437,000, slightly up from HKD 5,361,000 in 2018[58] - The company reported a significant increase in depreciation expenses, totaling HKD 6,424,000 for the period, reflecting investments in property, plant, and equipment[28] - The depreciation of property, plant, and equipment was HKD 1,481,000, significantly higher than HKD 410,000 in 2018[58] Assets and Liabilities - Non-current assets totaled HKD 27,803,000 as of June 30, 2019, compared to HKD 13,010,000 as of December 31, 2018, reflecting a substantial increase in asset value[19] - Current assets increased to HKD 56,930,000 from HKD 49,972,000, driven by higher cash balances and inventory levels[19] - Total equity attributable to owners increased to HKD 64,598,000 as of June 30, 2019, up from HKD 60,301,000 at the end of 2018, indicating a strengthening financial position[21] - The company reported no interest-bearing borrowings as of June 30, 2019, resulting in an asset-liability ratio not applicable to the group[106] - The company has no significant capital commitments as of June 30, 2019, indicating a flexible financial position for future investments[80] Cash Flow - The company reported a net cash inflow from operating activities of HKD 11,331,000 for the six months ended June 30, 2019, a significant improvement from a cash outflow of HKD 739,000 in the prior year[28] - The net cash used in financing activities was HKD 4,990,000, compared to a net cash inflow of HKD 39,999,000 in the same period of 2018[30] - The net increase in cash and cash equivalents for the six months ended June 30, 2019, was HKD 6,455,000, down from HKD 32,950,000 in the prior year[30] - As of June 30, 2019, cash and cash equivalents totaled HKD 53,748,000, an increase from HKD 45,677,000 at the end of the previous year[30] Dividends - The board declared an interim dividend of HKD 0.005 per share for the six months ended June 30, 2019[10] - The company declared an interim dividend of HKD 0.005 per share, totaling approximately HKD 4,000,000, to be paid on September 13, 2019[117] Business Strategy and Expansion - The company has plans for market expansion and new product development, although specific details were not disclosed in the financial report[20] - The company plans to expand its digital camera network in China and other countries, leveraging the success of its Hong Kong business model[86] - The company is exploring opportunities to extend its network to locations such as railway stations, shopping malls, and large residential areas in Guangdong Province and other provinces in China[87] - The company is actively researching and seeking new business opportunities to achieve sustainable growth and long-term benefits for shareholders[89] Governance and Compliance - The company's interim financial report has been reviewed by the audit committee but is unaudited[39] - The audit committee has reviewed the unaudited consolidated results for the six months ended June 30, 2019, and found them compliant with applicable accounting standards and regulations[139] - The company has adopted the corporate governance code as per GEM listing rules to enhance shareholder value and accountability[114] Shareholder Information - Major shareholder Causeway Treasure holds 427,600,560 shares, representing approximately 53.45% of the company's equity[132] - Photo-Me is another significant shareholder with 109,972,500 shares, accounting for 13.75% of the company's equity[132] Loans and Financing - The company secured a loan facility of RMB 5,300,000 effective until June 30, 2020, with repayment due within 13 months from the drawdown date[83] - The loan facility of RMB 5,300,000 was extended until June 30, 2020, with repayment required within 13 months from the drawdown date[138] Other Financial Information - The company has established a liquidity risk management framework to manage short-term, medium-term, and long-term funding needs[106] - There were no significant contingent liabilities reported as of June 30, 2019[111] - The company has not entered into any agreements or purchased instruments to hedge against foreign exchange risks[107] - No significant acquisitions, disposals, or major investments were made during the six months ending June 30, 2019[108] - The company has not granted, lapsed, exercised, or cancelled any share options under its share option scheme as of June 30, 2019[135]

Financial Performance - The group's revenue increased by approximately HKD 3,527,000 or 28.25% to HKD 16,010,000 for the three months ended March 31, 2019, compared to HKD 12,483,000 for the same period in 2018[7]. - Gross profit for the three months ended March 31, 2019, was approximately HKD 6,092,000, with a gross profit margin of 38.05%, compared to HKD 5,439,000 and a margin of 43.57% for the same period in 2018[7]. - The company recorded a profit attributable to owners of approximately HKD 2,331,000 for the three months ended March 31, 2019, compared to a loss of HKD 5,703,000 for the same period in 2018[7]. - The group's profit before tax for the three months ended March 31, 2019, was approximately HKD 2,789,000, compared to a loss of HKD 5,337,000 for the same period in 2018[13]. - The total comprehensive income for the period was HKD 2,540,000, compared to a loss of HKD 5,519,000 in the previous year[13]. - Basic earnings per share for the period was HKD 0.29, a recovery from a loss of HKD 0.85 per share in the previous year[14]. - The company reported a profit attributable to owners of HKD 2,331,000 for the three months ended March 31, 2019, compared to a loss of HKD 5,703,000 for the same period in 2018, representing a significant turnaround[14]. - Total comprehensive income attributable to owners was HKD 2,540,000 for the first quarter of 2019, compared to a loss of HKD 5,519,000 in the prior year, indicating improved financial performance[14]. Revenue and Income Sources - Revenue from Hong Kong significantly grew, attributed to the increase in both the price and number of transactions generated by digital photo kiosks[42]. - Other income increased to HKD 67,000 from HKD 30,000 in the previous year[13]. - The company reported a total revenue from photography services, net of refunds, although specific revenue figures were not disclosed in the provided documents[29]. Expenses and Costs - Administrative expenses rose to HKD 3,260,000 from HKD 3,096,000 in the previous year[13]. - The sales cost for the three months ended March 31, 2019, accounted for approximately 80.70% of total sales costs, compared to 83.38% for the same period in 2018[46]. - Income tax expenses for the three months ended March 31, 2019, were approximately HKD 458,000, compared to HKD 366,000 for the same period in 2018, reflecting an increase in tax obligations[55]. - Financing costs for the three months ended March 31, 2019, were approximately HKD 95,000, a significant increase from HKD 1,000 for the same period in 2018, indicating higher lease liabilities[52]. Dividends and Equity - The company did not recommend the declaration of any interim dividend for the three months ended March 31, 2019[7]. - The company did not declare any interim dividends for the three months ended March 31, 2019, and March 31, 2018, indicating a focus on retaining earnings[67]. - As of March 31, 2019, the company's total equity stood at HKD 62,841,000, an increase from HKD 53,568,000 at the end of the previous year[16]. Strategic Developments - The company plans to expand its network of digital photo kiosks in selected locations in China, replicating the successful business model from Hong Kong[42]. - The company received a notification from the Hong Kong government to provide automatic photo services for identity documents, effective from March 1, 2019, for a period of 24 months[44]. - The expansion plan in Guangdong Province has been slightly delayed due to ongoing changes in government policies regarding ID photo services[93]. - The company is in discussions with Guangzhou Zhuoteng Technology Co., Ltd. regarding business opportunities in Guangdong Province and other provinces in China[95]. Governance and Compliance - The company has established a risk management framework to monitor and manage liquidity risks effectively, ensuring adequate cash and cash equivalents[61]. - The company has maintained compliance with the Securities and Futures Ordinance regarding the disclosure of interests[80]. - The company’s audit committee reviewed the unaudited consolidated results for the three months ended March 31, 2019, and found them compliant with applicable accounting standards and GEM listing rules[89]. - The company has eight directors, including three independent non-executive directors, ensuring proper governance and protection of shareholder interests[86]. Shareholding and Ownership - As of March 31, 2019, Causeway Treasure Holding Limited holds 427,600,560 shares, representing a 53.45% stake in the company[76]. - The beneficial ownership of Causeway Treasure is divided among Chen Yongji and Chen Tianqi, each holding approximately 47.25%, and Ouyang Yinghe holding about 5.5%[82]. - Photo-Me International Plc. holds 109,972,500 shares, accounting for 13.75% of the company's equity[82]. - The company is controlled by the Chen family, who collectively hold approximately 53.45% of the issued share capital through Causeway Treasure[88]. Employee and Operational Insights - The number of employees increased from 59 as of March 31, 2018, to 64 as of March 31, 2019, reflecting growth in the workforce[60]. - The company maintained a cash flow from operating activities to fund its operations, with no interest-bearing borrowings as of March 31, 2019, suggesting a strong liquidity position[61]. - There were no significant events after the reporting period for the group[40]. - There were no acquisitions or significant strategic changes mentioned in the financial report for the first quarter of 2019[30].

Financial Performance - For the year ended December 31, 2018, the company generated revenue of approximately HKD 54,733,000, with a profit attributable to owners of approximately HKD 1,780,000[13]. - After excluding non-recurring listing expenses of approximately HKD 7,789,000, the profit attributable to owners was approximately HKD 9,569,000[13]. - The company's revenue increased by approximately HKD 8,242,000 or 17.73% from about HKD 46,491,000 for the year ended December 31, 2017, to about HKD 54,733,000 for the year ended December 31, 2018[26]. - Gross profit for the year ended December 31, 2018, was approximately HKD 23,234,000, with a gross profit margin of about 42.45%, compared to HKD 20,508,000 and 44.11% for the previous year[28]. - The company recorded a profit attributable to owners of approximately HKD 1,780,000 for the year ended December 31, 2018, an improvement of HKD 5,266,000 from a loss of HKD 3,486,000 in the previous year[38]. - Administrative expenses rose by approximately HKD 3,785,000 or 41.09% from about HKD 9,211,000 for the year ended December 31, 2017, to about HKD 12,996,000 for the year ended December 31, 2018[31]. Dividend Policy - The company did not recommend a final dividend for the year ended December 31, 2018, to maintain sufficient funds for future business development[14]. - No final dividend has been recommended for the year ended December 31, 2018[55]. - As of December 31, 2018, the company's distributable reserves were approximately HKD 37,563,000, with no final dividend declared for the fiscal year[95]. Business Expansion and Strategy - The company aims to expand its network of self-service digital photo booths in Hong Kong and China, capitalizing on the growing demand for identification photos[12]. - The company is optimistic about its core business and plans to continue expanding its self-service photo booth network to achieve sustainable growth[18]. - The company plans to expand its self-service digital photo booth network in China, leveraging the success of its Hong Kong business model[22]. - The company has identified significant expansion potential for its self-service identity photo digital camera business in China[22]. - The expansion plan in Guangdong Province has been slightly delayed due to ongoing changes in government policies regarding identity verification photos[45]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[161]. - The board of directors consists of three executive directors, two non-executive directors, and three independent non-executive directors, ensuring a diverse governance structure[165]. - The company has adopted a board diversity policy to enhance performance by considering various factors such as gender, age, and professional experience in board member selection[168]. - The roles of the chairman and the CEO are separated, with clear delineation of responsibilities[173]. - The company has established a remuneration committee to review the compensation policies for directors and senior management, considering the company's performance and market practices[108]. Stakeholder Relations - The company expresses gratitude to all employees and stakeholders for their support and contributions during the fiscal year[19]. - The company emphasizes maintaining good relationships with key stakeholders, including employees, customers, and suppliers, to achieve business goals[86]. - The company has implemented policies to minimize its environmental impact and improve corporate governance[84]. Risk Management - The group acknowledges several risks and uncertainties that may impact its financial condition and operational performance, including agreements for operating self-service photo kiosks[79]. - The demand for the company's products is closely related to the application or renewal of identification documents, and there may be a significant decline in overall demand for these products[80]. - The company has not entered into any agreements or purchased instruments to hedge against foreign exchange risks, which are primarily in RMB and HKD[47]. Market Research and Development - The company is actively conducting market research and discussions with suppliers to explore opportunities in Guangdong Province and other regions in China[22]. - The company is focused on upgrading its verification center and IT infrastructure, with HKD 2,000,000 allocated, of which HKD 92,000 has been utilized[48]. Shareholder Information - The company reported that Causeway Treasure Holding Limited holds 427,600,560 shares, representing a 53.45% stake in the company[115]. - Both Mr. Chan Wing Chai and Mr. Chan Tin Ki each own approximately 47.25% of Causeway Treasure, which is a significant shareholder[118]. - The major shareholders include Photo-Me International Plc, holding 109,972,500 shares, which accounts for 13.75% of the company[122]. Compliance and Legal Matters - The company is committed to compliance with relevant laws and regulations, confirming no significant violations that could impact business operations[83]. - There were no significant legal proceedings or arbitration involving the company as of December 31, 2018[151]. - The company has appointed Deloitte as the auditor for the fiscal year ending December 31, 2018, and they will be proposed for reappointment at the upcoming annual general meeting[159].