Market Performance - The average daily trading volume in the Hong Kong stock market increased by approximately 48.6% from about HKD 871.6 billion in 2019 to about HKD 1,294.8 billion in 2020[11]. - The total annual trading volume rose by approximately 21.5% from about HKD 26,422.8 billion in 2019 to about HKD 32,110.1 billion in 2020[11]. - The number of listed companies on the Hong Kong Stock Exchange increased by about 3.6% from 2,449 at the end of 2019 to 2,538 at the end of 2020[11]. - The number of new listings decreased by approximately 15.8% from 183 in 2019 to 154 in 2020[11]. - The company expects the number of new listings to continue to increase in 2021, with total trading volume in the Hong Kong stock market expected to at least maintain 2020 levels[18]. Financial Performance - Total revenue for the year ended December 31, 2020, was approximately HKD 80.56 million, an increase of about 29.4% from approximately HKD 62.23 million for the year ended December 31, 2019[22]. - Net profit for the year ended December 31, 2020, was approximately HKD 23.18 million, representing an increase of about 146.2% from approximately HKD 9.42 million for the year ended December 31, 2019[23]. - Employee costs for the year ended December 31, 2020, were approximately HKD 27.10 million, an increase of about 31.4% from approximately HKD 20.62 million for the year ended December 31, 2019[26]. - The group's total revenue for the year ended December 31, 2020, was approximately HKD 80.56 million, an increase of 29.4% compared to HKD 62.23 million for the year ended December 31, 2019[48]. - The group's net other income and gains for the year ended December 31, 2020, was approximately HKD 8.62 million, a significant increase of 457.5% from HKD 1.55 million in 2019[59]. Revenue Breakdown - Revenue from securities and futures brokerage services accounted for approximately 48.7% and 54.9% of total revenue for the years ended December 31, 2020, and 2019, respectively[34]. - Revenue from placing and underwriting services represented about 7.6% and 10.9% of total revenue for the years ended December 31, 2020, and 2019, respectively[35]. - Revenue from financing services increased to approximately 27.1% and 22.5% of total revenue for the years ended December 31, 2020, and 2019, respectively[38]. - Asset management services generated approximately 8.5% and 2.4% of total revenue for the years ended December 31, 2020, and 2019, respectively[39]. - Financial advisory services accounted for about 2.8% and 1.4% of total revenue for the years ended December 31, 2020, and 2019, respectively[40]. Business Strategy and Expansion - The company is focused on capturing more opportunities in the market following the launch of new business lines since its listing in 2018[10]. - The company plans to focus on two core service segments in 2021: asset management services and wealth management services[18]. - The company has successfully expanded its asset management services by investing in Guangzhou Victory Private Equity Fund Management Co., Ltd., with a total capital of HKD 11.2 million[29]. - The company acquired a 30% stake in Victory Nest Asset Management Pte. Limited for SGD 240,000, expanding its asset management business network to overseas markets[30]. - The company plans to expand its asset management services through the establishment of private equity funds in China and Singapore, which is expected to positively impact revenue[39]. Risk Management and Compliance - The company aims to enhance its risk management capabilities to ensure stable returns despite market volatility[12]. - The company is committed to improving compliance and risk management processes to adapt to the evolving regulatory landscape[12]. - The company acknowledges the challenges posed by the ongoing COVID-19 pandemic and US-China trade tensions on the global economy and financial markets[14]. - The company has delayed promotional activities due to the COVID-19 pandemic but plans to launch a major promotional campaign in 2021 to expand its customer base[44]. - The company intends to review and assess its business objectives and strategies in light of market uncertainties and risks associated with the COVID-19 pandemic[45]. Corporate Governance - The company has fully complied with the corporate governance code as per GEM Listing Rules for the year ended December 31, 2020[115]. - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors[117]. - The company has established an audit committee to maintain high standards of corporate governance[136]. - The company is committed to maintaining high standards of corporate governance to enhance shareholder confidence[115]. - The company emphasizes equal opportunity in all aspects of its business, adhering to merit-based principles in board appointments[150]. Management Team - The company has a strong management team with extensive experience in finance and compliance, including licensed representatives under the Securities and Futures Ordinance[95][96]. - The Chief Financial Officer, Mr. Jiang, has over 16 years of experience in auditing, accounting, corporate governance, and corporate finance[112]. - The management team includes family members, indicating a strong internal governance structure[97]. - The company’s independent non-executive directors provide independent opinions to the board, enhancing governance oversight[106]. - The company has a strategic focus on global market development and business planning, led by the Vice President of Operations, Mr. Zhou[111]. Operational Risks and Challenges - The company has identified operational risks including insufficient human resources and a lack of senior staff, which it aims to mitigate through various measures[174]. - The long-term financial and operational impact of COVID-19 on the group will depend on the duration of the pandemic and the effectiveness of control measures[47]. - The impact of COVID-19 on the company's financial performance is being closely monitored, with potential short-term market volatility expected[84]. - The company has not encountered any significant contingent liabilities as of December 31, 2020[83]. - The company has not implemented any foreign currency hedging policies but is monitoring foreign exchange risks and may consider hedging significant foreign exchange risks when necessary[81].

勝利證券（控股）有限公司 股份代號 : 8540 第三季度 報告 2020 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM之定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公司 帶有較高投資風險。有意投資者應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮 後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣之證券承 受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示概不就因本報告全部或任何部分內容而產生或因依賴該等內容而引致之 任何損失承擔任何責任。 本報告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關勝利證券（控 股）有限公司（「本公司」）的資料。本公司的董事（「董事」）願就本報告的資料共同及個別地承擔全 部責任。董事經作出一切合理查詢後，確認就彼等所知及所信，(i)本報告所載資料在各重要方 面均屬準確及完整，且無誤導或欺詐成份，及(ii)本報告並無遺漏其他事項致使本報告 ...

Revenue and Profit - For the six months ended June 30, 2020, revenue was approximately HKD 32.31 million, an increase of about 0.8% compared to HKD 32.06 million for the same period in 2019[8]. - Profit for the six months ended June 30, 2020, was approximately HKD 10.14 million, representing an increase of about 28.6% from HKD 7.88 million for the same period in 2019[9]. - Revenue for the three months ended June 30, 2020, was HKD 15,026,807, a decrease of 10.5% compared to HKD 16,797,343 for the same period in 2019[12]. - The company reported a total comprehensive income of HKD 5,606,230 for the three months ended June 30, 2020, compared to HKD 3,251,743 for the same period in 2019, reflecting a growth of 72.5%[17]. - The total comprehensive income for the period was HKD 8,189,987, reflecting a significant recovery from the previous period[26]. - Basic earnings per share for the six months ended June 30, 2020, were HKD 5.07, compared to HKD 3.94 for the same period in 2019, representing a growth of 28.7%[81]. - Diluted earnings per share for the six months ended June 30, 2020, were HKD 5.07, reflecting the same growth as basic earnings per share[85]. - The company reported a net profit attributable to equity holders of HKD 10,138,734 for the six months ended June 30, 2020, an increase of 28.7% from HKD 7,881,855 in the previous year[82]. Expenses and Costs - Other operating expenses decreased to approximately HKD 6.34 million for the six months ended June 30, 2020, down from HKD 8.56 million for the same period in 2019[9]. - Employee costs increased to approximately HKD 9.64 million for the six months ended June 30, 2020, compared to HKD 8.30 million for the same period in 2019[11]. - Financing costs increased to approximately HKD 2.11 million for the six months ended June 30, 2020, compared to HKD 1.45 million for the same period in 2019[11]. - The company reported a net credit loss provision of HKD 82,750 for the six months ended June 30, 2020, compared to a net credit loss reversal of HKD 43,031 in the same period of 2019[12]. - The total tax expense for the six months ended June 30, 2020, was HKD 1,672,140, compared to HKD 885,348 for the same period in 2019, reflecting a significant increase[74]. - The group’s pre-tax profit for the six months ended June 30, 2020, was impacted by various costs, including depreciation of property, plant, and equipment totaling HKD 1,163,844, down from HKD 1,230,305 in the previous year[72]. Assets and Liabilities - Total assets as of June 30, 2020, amounted to HKD 288,685,452, an increase from HKD 243,839,652 as of December 31, 2019[20]. - The company’s net asset value increased to HKD 210,418,194 as of June 30, 2020, compared to HKD 205,376,379 at the end of 2019[23]. - The company’s total liabilities increased to HKD 135,086,294 as of June 30, 2020, from HKD 97,233,568 at the end of 2019, reflecting a rise of 39%[18]. - The total receivables amounted to HKD 233,810,987 as of June 30, 2020, up from HKD 214,306,465 at the end of 2019, indicating an increase of approximately 9%[141]. - The total amount of other receivables, including prepayments, was HKD 6,136,365 as of June 30, 2020, significantly higher than HKD 2,588,035 as of December 31, 2019[160]. - The company holds securities with a total fair value of HKD 623,669,728 as collateral for margin clients receivables as of June 30, 2020, up from HKD 412,690,408 at the end of 2019[146]. Dividends - The interim dividend declared was HKD 0.013 per share for the six months ended June 30, 2020, compared to HKD 0.012 per share for the same period in 2019[11]. - The company declared an interim dividend of HKD 2,600,546 for the six months ended June 30, 2020, up from HKD 2,400,000 for the same period in 2019[78]. Financial Performance by Segment - The financing services segment generated revenue of HKD 7,952,725 for the six months ended June 30, 2020, with a profit before tax of HKD 5,937,280[53]. - The securities and futures brokerage services segment reported revenue of HKD 21,609,499 for the six months ended June 30, 2020, resulting in a loss before tax of HKD 5,223,705[53]. - The asset management services segment recorded a revenue of HKD 342,410 for the three months ended June 30, 2020, with a loss before tax of HKD 97,706[53]. - The insurance consulting services segment achieved revenue of HKD 746,199 for the six months ended June 30, 2020, with a loss before tax of HKD 233,028[53]. Cash Flow and Investments - The net cash used in operating activities was HKD (2,798,592), an improvement from HKD (3,442,326) in the same period last year[28]. - The company generated cash inflow from investing activities of HKD 15,051,139 from the sale of financial assets, compared to HKD 10,033,382 in the prior year[28]. - The financing activities resulted in a net cash inflow of HKD 21,788,163, a substantial increase from HKD 6,442,653 in the previous period[28]. - The company’s cash flow from operating activities included interest received of HKD 8,009,417, compared to HKD 6,892,290 in the previous year[28]. Accounting and Compliance - The unaudited interim consolidated financial statements for the six months ended June 30, 2020, were prepared in accordance with Hong Kong Accounting Standards[36]. - The company’s interim financial performance has not been audited but has been reviewed by the audit committee[42]. - The company has adopted the revised Hong Kong Financial Reporting Standards effective from January 1, 2020, with no significant impact on its financial position[48]. - The company has not experienced any significant changes in lease terms due to COVID-19, and the related amendments did not impact its financial performance[49]. Stock and Share Capital - The total issued and paid-up share capital was HKD 2,000,418 as of June 30, 2020, an increase from HKD 1,999,998 as of December 31, 2019[188]. - The number of issued shares increased to 200,042,000 as of June 30, 2020, from 200,000,000 as of December 31, 2019[188]. - The company has a stock option plan effective for 10 years from June 14, 2018, aimed at rewarding eligible participants[191]. - A total of 42,000 stock options were exercised, resulting in the issuance of 42,000 ordinary shares and an increase in share capital of HKD 420 (before issuance expenses)[197].

| --- | --- | |---------------------------------|-------| | | | | YICTORY 勝利SECURITIES 證券 | | | 第一季度報告 2020 | | 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM之定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公司 帶有較高投資風險。有意投資者應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮 後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣之證券承 受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示概不就因本報告全部或任何部分內容而產生或因依賴該等內容而引致之 任何損失承擔任何責任。 本報告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關勝利證券（控 股）有限公司（「本公司」）的資料。本公司的董事（「董事」）願就本報告的資料共同及個別地承擔全 部責任。董事經作出一 ...

Financial Performance - The group's revenue decreased by approximately 6.2% from about HKD 67.98 million in 2018 to about HKD 63.78 million in the review year[11]. - The group's revenue for the year ended December 31, 2019, was HKD 62,234,000, a decrease of 7.4% compared to HKD 67,226,000 in 2018[18]. - For the year ended December 31, 2019, the total revenue of the group was approximately HKD 62.23 million, a decrease of about 7.4% compared to HKD 67.23 million for the year ended December 31, 2018[47]. - The net profit for the year increased by 29.8% to HKD 9,415,000 from HKD 7,254,000 in the previous year[18]. - The profit attributable to the owners of the parent company for the year ended December 31, 2019, was approximately HKD 9.41 million, an increase of about 29.8% compared to approximately HKD 7.25 million for the year ended December 31, 2018[71]. - The increase in profit was primarily due to a reduction in listing expenses by approximately HKD 6.81 million and a decrease in other operating expenses (excluding listing expenses) by approximately HKD 5.16 million[71]. - Cash flow from operating activities for the year ended December 31, 2019, recorded a net inflow of approximately HKD 15.33 million, compared to a net outflow of approximately HKD 66.22 million for the year ended December 31, 2018[75]. - As of December 31, 2019, the total cash and bank balance was approximately HKD 17.77 million, an increase from approximately HKD 16.68 million as of December 31, 2018[75]. Market Conditions - The average daily trading volume in the Hong Kong stock market fell by approximately 18.9% from about HKD 107.41 billion in 2018 to about HKD 87.15 billion in the review year[9]. - The total trading volume for the year decreased by approximately 18.9% from about HKD 2,642.27 billion in 2018 to about HKD 2,144.00 billion in 2019[9]. - The group anticipates that the total trading volume on the Hong Kong Stock Exchange will not rebound to 2018 levels in 2020[14]. - The company is considering repositioning in response to market demands and its own resources due to ongoing social unrest and trade negotiations[10]. Business Strategy and Development - The company aims to enhance risk management capabilities and ensure robust credit management procedures in response to market uncertainties[10]. - The group plans to focus on two core service divisions in 2020: asset management services and financial advisory services[14]. - The company has launched new business lines since its listing on the GEM of the Hong Kong Stock Exchange on July 16, 2018[8]. - The company plans to apply for a new asset management license to expand its asset management division[45]. - The company aims to diversify its revenue sources through the acquisition of an insurance consulting business and obtaining a Type 6 license[44]. - The company intends to enhance its marketing strategies and optimize resource utilization to improve service quality and operational efficiency[44]. - The company is actively engaged in expanding its market presence through strategic initiatives and partnerships[110]. Revenue Sources - Revenue from securities brokerage services accounted for approximately 51.6% and 59.0% of total revenue for the years ended December 31, 2019, and 2018, respectively[33]. - Revenue from underwriting and placement services represented about 10.9% and 10.7% of total revenue for the years ended December 31, 2019, and 2018, respectively[33]. - Financing services contributed approximately 22.5% and 14.9% to total revenue for the years ended December 31, 2019, and 2018, respectively, driven by increased demand for leveraged investment returns[37]. - Asset management services generated approximately 2.4% and 0.9% of total revenue for the years ended December 31, 2019, and 2018, respectively[38]. - Financial advisory services accounted for about 1.4% of total revenue for the year ended December 31, 2019, compared to zero in 2018[39]. - Insurance consulting services contributed approximately 3.3% and 3.5% to total revenue for the years ended December 31, 2019, and 2018, respectively[43]. Regulatory Compliance and Governance - The company operates in a highly regulated industry and anticipates continued scrutiny and tightening of regulations by the Securities and Futures Commission[10]. - The company has adhered to all corporate governance codes as per GEM listing rules, maintaining high standards of compliance[125]. - The audit committee is responsible for overseeing the integrity of the company's financial statements and risk management systems[160]. - The company has established a remuneration committee in accordance with corporate governance guidelines[163]. - The board meets at least four times a year to discuss business development, operations, and financial performance[139]. Human Resources and Management - Employee costs increased by approximately HKD 5,309,000, representing a 34.7% rise compared to the previous year[18]. - The total employee cost for the year ended December 31, 2019, was approximately HKD 20.62 million, an increase from approximately HKD 15.31 million for the year ended December 31, 2018[100]. - The company has established a professional retirement plan for eligible employees in accordance with the relevant regulations[100]. - The company is actively seeking a suitable candidate to lead marketing efforts, addressing the high turnover rate among marketing personnel[194]. - The human resources department is monitoring the recruitment and interview process to ensure effective compensation measures are in place[195]. COVID-19 Impact - The group’s financial performance is expected to be influenced by the effectiveness of measures to control the spread of COVID-19 and the duration of the outbreak[46]. - The company plans to closely monitor developments related to COVID-19 and assess its impact on financial condition and operating performance[46]. - The company is closely monitoring the impact of the COVID-19 pandemic on its financial condition and operating performance, noting potential short-term market volatility[99].

Revenue Performance - Revenue for the three months ended September 30, 2019, was HKD 12,292,517, a decrease of approximately 19.5% compared to HKD 15,275,611 for the same period in 2018[13]. - Revenue for the nine months ended September 30, 2019, was HKD 44,231,186, down about 12.0% from HKD 50,285,176 for the same period in 2018, primarily due to a decrease in underwriting and brokerage income[13]. - The decrease in revenue was attributed to a reduction in market turnover in Hong Kong, which fell from HKD 211,109.9 billion to HKD 166,589.0 billion[13]. - For the three months ended September 30, 2019, customer contract revenue was HKD 8,446,978, a decrease of 32.5% from HKD 12,592,017 in the same period of 2018[62]. - For the nine months ended September 30, 2019, customer contract revenue was HKD 33,493,357, down 22.4% from HKD 43,157,086 in the same period of 2018[62]. - Revenue from securities brokerage services accounted for approximately 58.9% of total revenue for the nine months ended September 30, 2019, compared to 58.3% in 2018[93]. - Revenue from underwriting and placing services represented about 3.2% of total revenue for the nine months ended September 30, 2019, down from 13.0% in 2018[94]. - Revenue from securities advisory services accounted for approximately 2.1% of total revenue for the nine months ended September 30, 2019, compared to zero in 2018[95]. - Revenue from financing services increased by approximately 47.3%, reaching about HKD 10.41 million for the nine months ended September 30, 2019, compared to HKD 7.07 million in the same period of 2018[119]. - Revenue from insurance consulting services accounted for approximately 4.0% and 3.7% of total revenue for the nine months ended September 30, 2019, and 2018, respectively[102]. Profit and Loss - The net loss for the three months ended September 30, 2019, was HKD (1,230,001), compared to a loss of HKD (2,510,013) for the same period in 2018, indicating an improvement[14]. - The net profit for the nine months ended September 30, 2019, was HKD 6,898,718, an increase of approximately 22.6% compared to HKD 5,625,947 for the same period in 2018[14]. - Basic and diluted loss per share for the three months ended September 30, 2019, was HKD (0.62), an improvement from HKD (1.31) for the same period in 2018[15]. - The company reported a loss attributable to equity holders of the parent of HKD (1,230,001) for the nine months ended September 30, 2019, compared to a profit of HKD 6,898,718 for the same period in 2018[78]. - Profit attributable to owners of the parent for the nine months ended September 30, 2019, was approximately HKD 6.90 million, an increase from HKD 5.63 million for the same period in 2018, but a decrease of about 43.9% when excluding listing expenses[126]. Operating Expenses - Total operating expenses for the three months ended September 30, 2019, were HKD 3,431,819, significantly reduced from HKD 9,734,308 in the same period of 2018[13]. - Employee costs increased to HKD 13,009,914 for the nine months ended September 30, 2019, compared to HKD 10,602,523 for the same period in 2018[15]. - The company reported a significant increase in operating expenses, including information services expenses of HKD 2,829,378 for the nine months ended September 30, 2019, compared to HKD 2,033,932 in the same period of 2018[72]. - Other operating expenses for the nine months ended September 30, 2019, were approximately HKD 11.68 million, a decrease of about 45.4% from HKD 21.41 million for the same period in 2018, mainly due to reduced listing expenses[125]. Dividends - The company did not recommend the payment of a dividend for the nine months ended September 30, 2019, despite declaring an interim dividend of HKD 0.012 per share for the six months ended June 30, 2019[14]. - The company declared an interim dividend of HKD 0.012 per share for the six months ended June 30, 2019, an increase from HKD 0.010 per share in 2018[81]. - The company declared a final dividend of HKD 3,000,000 and an interim dividend of HKD 2,400,000 during the reporting period[18]. Acquisitions and Investments - The company completed the acquisition of Victory Insurance for a total cash consideration of HKD 4,800,000 on August 20, 2019[29]. - The group completed the acquisition of Victory Insurance in August 2019, which is expected to enhance service offerings and expand the customer base[132]. - The company successfully acquired Victory Insurance Consultants in August 2019 to better meet the wealth management needs of high-net-worth individuals in China[101]. - The company received a license in August 2019 to provide advisory services for institutional financing, focusing on mergers and acquisitions[100]. Financial Position - As of September 30, 2019, the total equity amounted to HKD 206,210,914, an increase from HKD 204,038,462 as of January 1, 2019[18]. - The net profit for the period was HKD 6,898,718, with a comprehensive income total of HKD 6,759,119 after tax deductions[18]. - The total reserves as of September 30, 2019, included HKD 202,974,703, reflecting a slight increase from HKD 200,523,465 in the previous year[23]. - The company’s capital structure includes a share capital of HKD 1,999,998 and a share premium of HKD 54,980,741[18]. Regulatory and Compliance - The unaudited consolidated financial statements for the nine months ended September 30, 2019, are prepared in accordance with the Hong Kong Financial Reporting Standards[43]. - The company’s financial performance for the nine months ended September 30, 2019, has not been reviewed by the auditors but has been reviewed by the audit committee[43]. - The audit committee, consisting of two independent non-executive directors and one non-executive director, reviewed the financial statements for the nine months ending September 30, 2019[151]. - The company has fully complied with the corporate governance code as per GEM listing rules[149]. - No directors or major shareholders have interests in any competing businesses as of September 30, 2019[148]. Future Plans and Strategies - The company plans to expand its asset management and wealth management businesses, targeting high-net-worth clients in Hong Kong and mainland China[90]. - The company aims to establish private equity funds for professional investors to enhance its asset management services[90]. - The company intends to hire talented individuals to promote the development of asset management and financial advisory services[90]. - The company is leveraging new capital raised from its IPO to enhance its financing services to meet growing client demands[90]. - The company aims to develop a niche market in the lending sector, providing tailored working capital solutions for corporate and retail clients[97]. - The company anticipates continued growth in guaranteed financing revenue, supported by an investment of approximately HKD 6.0 million in the guaranteed financing business[97]. - The group aims to enhance its market position as a comprehensive financial service provider by actively participating in other financial activities and transactions[132]. Accounting Policies - The company adopted HKFRS 16 using the modified retrospective approach, recognizing right-of-use assets of HKD 529,715 and lease liabilities of HKD 545,933 as of January 1, 2019[54]. - The adoption of HKFRS 16 has replaced HKAS 17, requiring all leases to be recognized on a single balance sheet model[45]. - The lease liabilities are recognized at the present value of remaining lease payments discounted using the incremental borrowing rate as of January 1, 2019[50]. - The company will measure right-of-use assets based on the amount of lease liabilities recognized, adjusted for any prepaid or accrued lease payments[50]. - The new accounting policy replaces the previous lease accounting policy disclosed in the financial statements for the year ended December 31, 2018[56].

Financial Performance - For the six months ended June 30, 2019, revenue decreased by approximately 9.5% to HKD 30,671,603 compared to HKD 33,887,223 for the same period in 2018[16]. - The net profit for the six months ended June 30, 2019, was HKD 7,796,135, a decrease of about 3.3% from HKD 8,065,270 in the previous year[17]. - Earnings per share for the six months ended June 30, 2019, were HKD 3.90, down from HKD 5.38 in 2018[16]. - Total comprehensive income for the six months ended June 30, 2019, was HKD 8,576,528, down from HKD 11,984,817 in the same period of 2018, indicating a decrease of approximately 28.5%[28]. - The company reported a profit of HKD 2,832,273 for the three months ended June 30, 2019, compared to HKD 80,941 in the same period of 2018, representing a significant increase[25]. - The adjusted profit before tax for the company was HKD 9,805,316 for the six months ended June 30, 2019, compared to HKD 322,454 in the same period of 2018[80]. - The pre-tax profit for the six months ended June 30, 2019, was HKD 2,832,273, compared to HKD 7,796,135 in the same period of 2018, reflecting a significant decrease[114]. Dividends and Share Capital - The company declared an interim dividend of HKD 0.012 per share for the six months ended June 30, 2019[18]. - The company incurred a total of HKD 3,000,000 in dividends during the six months ended June 30, 2019, compared to HKD 8,000,000 in the same period of 2018[30]. - The interim dividend declared for the six months ended June 30, 2019, is HKD 2,400,000, representing HKD 1.20 per share, compared to HKD 2,000,000 for the same period in 2018[119]. - The total issued and paid-up share capital remained at 2,000,000,000 shares with a par value of HKD 0.01 per share as of June 30, 2019[194]. - The company issued 149,980,500 shares at par value to Dr. TT Kou's Family Company Limited, contributing HKD 1,499,805 to the capital[197]. - The company also issued 50,000,000 shares at HKD 1.25 each during its listing on GEM, raising a total of HKD 62,500,000[197]. Expenses and Costs - Other operating expenses for the six months ended June 30, 2019, were HKD 8,152,408, down from HKD 11,339,578 in the same period of 2018[16]. - Commission expenses for the six months ended June 30, 2019, were HKD 4,397,974, compared to HKD 5,416,610 in the previous year[24]. - Employee costs for the six months ended June 30, 2019, increased to HKD 8,089,916 from HKD 6,509,617 in 2018[24]. - The company incurred depreciation expenses of HKD 227,484 for the period, compared to HKD 785,110 in the previous year, indicating a significant reduction in depreciation[64]. - The interest expense on bank loans and overdrafts for the six months ended June 30, 2019, was HKD 1,327,052, an increase of 46.0% from HKD 908,497 in the same period of 2018[108]. Assets and Liabilities - Non-current assets totaled HKD 69,185,573 as of June 30, 2019, slightly up from HKD 68,837,957 at the end of 2018[27]. - Current assets decreased to HKD 259,142,089 from HKD 293,232,656 at the end of 2018, reflecting a decline of about 11.6%[27]. - The company’s total liabilities decreased to HKD 110,621,526 as of June 30, 2019, from HKD 150,250,091 at the end of 2018, indicating a reduction of approximately 26.4%[27]. - The company’s equity attributable to owners amounted to HKD 209,747,010 as of June 30, 2019, compared to HKD 204,038,462 at the end of 2018, reflecting a slight increase[27]. - The group’s total liabilities decreased to HKD 129,665,869 as of June 30, 2019, from HKD 70,959,238 as of December 31, 2018, indicating a significant increase in financial obligations[189]. - The total accounts payable decreased to HKD 17,977,673 as of June 30, 2019, from HKD 65,908,786 as of December 31, 2018, representing a significant reduction of approximately 72.7%[181]. Cash Flow and Financial Position - The company’s net cash flow from operating activities was negative at HKD (4,886,797) for the six months ended June 30, 2019, compared to HKD (45,687,339) in the same period of 2018, showing an improvement[30]. - Cash and cash equivalents increased to HKD 17,237,956 at the end of June 30, 2019, from HKD 15,425,482 at the beginning of the period[30]. - The total amount of client funds held in independent accounts was HKD 173,010,143 as of June 30, 2019, compared to HKD 141,085,683 as of December 31, 2018, showing an increase of about 22.6%[180]. - The company reported cash receivables of HKD 34,571,802 as of June 30, 2019, compared to HKD 27,597,090 as of December 31, 2018[148]. - As of June 30, 2019, the total cash and cash equivalents amounted to HKD 17,237,956, an increase from HKD 15,425,482 as of December 31, 2018, representing a growth of approximately 11.7%[176]. Financial Reporting and Standards - The interim financial statements for the six months ended June 30, 2019, were prepared in accordance with Hong Kong Accounting Standard 34, and should be read in conjunction with the annual financial statements for the year ended December 31, 2018[34]. - The company has adopted new Hong Kong Financial Reporting Standards effective from January 1, 2019, which may impact the financial reporting[39]. - The company’s accounting policies for the interim financial statements are consistent with those used in the audited financial statements for the year ended December 31, 2018[38]. - The company confirmed that the adoption of HKFRS 16 did not have a significant financial impact on its leasing activities as a lessor[52]. - The company will continue to classify investment properties at fair value under HKAS 40, even after the adoption of HKFRS 16[59]. Client and Market Activity - The company experienced a decrease in brokerage income due to reduced trading volume in the Hong Kong stock market[16]. - Major clients contributed over 10% of total revenue, with Client A generating HKD 4,211,556 for the six months ended June 30, 2019[92]. - The company reported client contract revenue of HKD 23,779,425 for the six months ended June 30, 2019, down from HKD 29,442,742 in the previous year, representing a decline of 19.2%[94]. - Interest income from clients increased to HKD 6,619,541 for the six months ended June 30, 2019, compared to HKD 4,439,562 in the same period of 2018, reflecting a growth of 49%[94]. Valuation and Impairment - The total amount of expected credit loss provisions was HKD 394,948 as of June 30, 2019, compared to HKD 351,917 as of December 31, 2018[149]. - The provision for impairment losses decreased to HKD 6,283 as of June 30, 2019, from HKD 22,576 as of December 31, 2018, indicating improved credit quality[156]. - The company assessed the fair value of securities held for clients, which amounted to HKD 675,790, reducing credit risk exposure[163]. - The company engaged an external valuer to assess property valuations semi-annually, ensuring compliance with professional standards[136]. Share Option Scheme - The company operates a share option scheme aimed at rewarding eligible participants contributing to the success of the business[200]. - The share option scheme became effective on June 14, 2018, and can be terminated by a resolution at a general meeting or by the board of directors[200].

Financial Performance - Revenue for the three months ended March 31, 2019, was HKD 14,591,386, a decrease of 29.2% compared to HKD 20,617,084 for the same period in 2018[13]. - Profit for the period decreased by approximately 37.8% to HKD 4,963,862 from HKD 7,984,329 year-on-year[14]. - Basic earnings per share for the period were HKD 2.48, down from HKD 3.99 in the previous year[17]. - Total comprehensive income for the period was HKD 5,414,689, compared to HKD 7,984,329 for the same period in 2018[22]. - The decrease in revenue was primarily due to reduced income from underwriting and placement services, reflecting a decrease in overall market transaction volume[13]. - Other income and gains increased to HKD 2,457,636 from HKD 1,074,802, contributing to partially offsetting the decline in profit[13]. - The company reported a pre-tax profit of HKD 5,659,867 for the period, down from HKD 9,482,862 in the previous year[16]. - The fair value gains on financial assets measured at fair value through profit or loss increased, providing some offset to the overall decline in profit[14]. - The group reported a pre-tax profit of HKD 4,963,862 for the three months ended March 31, 2019, compared to HKD 7,984,329 in the same period of 2018, reflecting a decline of 37.8%[58]. - Total financing costs for the period were HKD 575,769, an increase of 50.5% from HKD 382,788 in the previous year[50]. - The total tax expense for the period was HKD 696,005, down 53.5% from HKD 1,498,533 in the same period of 2018[53]. - The profit attributable to equity holders of the parent for the three months ended March 31, 2019, was approximately HKD 4.96 million, a decrease from HKD 7.98 million for the same period in 2018, mainly due to reduced revenue[83]. Revenue Breakdown - Revenue from securities brokerage services accounted for approximately 66.4% of total revenue for the three months ended March 31, 2019, compared to 57.2% for the same period in 2018[64]. - Financing services contributed about 22.3% of total revenue for the three months ended March 31, 2019, up from 10.1% in the same period in 2018, reflecting increased demand for leveraged investment returns[68]. - Customer contract revenue was HKD 11,238,523, down 39.5% from HKD 18,529,099 year-over-year[44]. - Revenue from financing services increased by 56.1% to HKD 3.26 million for the three months ended March 31, 2019, compared to HKD 2.09 million in the same period in 2018[71]. - Revenue from asset management services rose to approximately HKD 0.16 million for the three months ended March 31, 2019, compared to HKD 0.10 million for the same period in 2018, attributed to increased revenue from new clients[79]. - Revenue from securities advisory services was approximately HKD 0.26 million for the three months ended March 31, 2019, compared to zero in the same period in 2018[67]. - Revenue from underwriting and placement services was zero for the three months ended March 31, 2019, down from HKD 4.32 million in the same period in 2018, indicating a lack of identified investment opportunities[65]. - The company recorded a decrease of 40.8% in total revenue from securities brokerage and underwriting services, from HKD 18.43 million in 2018 to HKD 10.92 million in 2019[72]. - The group recorded no revenue from placement and underwriting services for the three months ended March 31, 2019, a decrease of approximately 100% compared to HKD 4.32 million for the same period in 2018[74]. Expenses and Costs - Other operating expenses decreased by 13.3% to HKD 4,039,241 from HKD 4,659,739 in the prior year[13]. - The group incurred depreciation expenses of HKD 728,716, an increase from HKD 514,948 in the same period of 2018[51]. - Commission expenses decreased to approximately HKD 2.07 million for the three months ended March 31, 2019, down 39.1% from approximately HKD 3.40 million for the same period in 2018, primarily due to a decrease in brokerage income and revenue from placement and underwriting services[81]. Corporate Governance and Compliance - The company has adhered to all principles and provisions of the corporate governance code as of March 31, 2019[110]. - The board has confirmed compliance with the trading standards set forth in GEM Listing Rules during the reporting period[107]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ending March 31, 2019[112]. Future Plans and Strategies - The company plans to establish private equity funds to expand its asset management services starting in the second quarter of 2019, anticipating growth in this segment[69]. - The company aims to enhance its asset management and wealth management businesses while exploring new financial advisory and corporate financing opportunities[61]. - The group plans to adopt prudent capital management and liquidity risk management to maintain sufficient buffers against future challenges in the competitive Hong Kong securities industry[87]. - The company aims to expand its customer base and service channels through flexible marketing strategies and the development of new business lines, including wealth management and financial advisory services[91]. Shareholder Information - DTTKF holds 150,000,000 shares, representing 75% of the company's issued share capital[102]. - Changxing Capital Holdings Limited owns 16,956,000 shares, accounting for 8.48% of the total shares[103]. - As of March 31, 2019, no other individuals disclosed any interests in the company's shares[104]. - The company has granted 1,737,000 stock options under the stock option plan as of the report date[105]. - No purchases, sales, or redemptions of the company's listed securities occurred in the three months ending March 31, 2019[106]. Dividend Information - The company did not recommend the payment of a dividend for the three months ended March 31, 2019[15]. - The company did not declare any dividends for the three months ended March 31, 2019, compared to a special dividend of HKD 8,000,000 declared in the previous year[54][55]. - No dividends are recommended for the three months ended March 31, 2019, and 2018[85].

Financial Performance - The company reported revenue and other income of HKD 65.63 million for the year ended December 31, 2018, a 2.0% increase from HKD 64.35 million for the year ended December 31, 2017[27]. - Core business revenue reached HKD 64.91 million, up 15.0% from HKD 56.43 million in the previous year, driven by increased trading volume in the US market and other markets[27]. - Revenue for the year ended December 31, 2018, was HKD 64,906,137, representing a 15.0% increase from HKD 56,433,162 in 2017[34]. - The company recorded an overall revenue increase of approximately 15.0% for the year ended December 31, 2018, driven by increased brokerage income and financing interest income, particularly from the US stock market[74]. - Revenue from securities brokerage services accounted for approximately 61.1% of total revenue in 2018, slightly down from 62.7% in 2017[39]. - Revenue from underwriting and placing services increased significantly by 51.6% to HKD 7,214,000 in 2018 from HKD 4,760,000 in 2017[46]. - Financing services contributed approximately 15.5% of total revenue in 2018, up from 12.9% in 2017, reflecting increased demand for leveraged investment returns[42]. - Asset management services generated revenue of HKD 574,000, a decrease of 74.2% from HKD 2,228,000 in 2017[45]. - Interest income from financing services increased to approximately HKD 10.04 million for the year ended December 31, 2018, representing a growth of about 38.1% from HKD 7.27 million for the year ended December 31, 2017, driven by an increase in loan accounts for margin and non-margin clients[51]. - Other income and gains/losses net decreased significantly by approximately 90.9%, from HKD 7.91 million for the year ended December 31, 2017, to approximately HKD 0.72 million for the year ended December 31, 2018[53]. Profitability - Net profit for the year decreased by approximately 59.6% to HKD 7,125,553 from HKD 17,653,083 in 2017[34][35]. - Earnings per share for the year was HKD 4.12, down from HKD 11.77 in the previous year[34]. Market Conditions - The Hang Seng Index experienced a decline of 25% from its historical high of 34,331 points in January 2018 to a low of 24,540 points in October, before recovering to 25,845 points by year-end[26]. - The number of listed companies on the Hong Kong Stock Exchange increased by 9.3% from 2,118 at the end of 2017 to 2,315 at the end of 2018[26]. - The company faced significant challenges in 2018 due to the tightening of US monetary policy and the impact of the US-China trade war[27]. - The company anticipates continued regulatory scrutiny and tightening measures in the securities industry to reflect market efficiency[26]. Corporate Governance - The company has maintained high standards of corporate governance and fully complied with the GEM Listing Rules since its listing date on July 16, 2018[102]. - The board of directors is committed to providing independent opinions and oversight, ensuring shareholder confidence[101]. - The company has a diverse board with members having extensive experience in finance, accounting, and corporate governance, enhancing decision-making capabilities[96][97]. - The independent non-executive directors have a combined experience of over 76 years in various sectors, including finance and healthcare[92][96]. - The company has established various committees, including audit, remuneration, and nomination committees, to strengthen governance practices[101]. - The company emphasizes equal opportunity in all aspects of its business, ensuring that board appointments are based on merit[130]. - The board has been proactive in ensuring compliance with corporate governance codes, reflecting its dedication to ethical practices[102]. Risk Management - The company is committed to maintaining a comprehensive credit management process to navigate the unstable market conditions[26]. - The company has established a multi-tiered risk management framework to identify, assess, and monitor financial and operational risks[139]. - The risk management committee was established in 2017 and is responsible for overseeing the overall risk management and internal control systems of the company[143]. - The board believes that the risk management and internal control systems are effective and adequate[139]. Sustainability and Corporate Social Responsibility - The company emphasizes the importance of sustainable development and corporate social responsibility in its business management and strategy[164]. - The company reported a significant increase in greenhouse gas emissions during the reporting period, totaling 58.44 tons of CO2 equivalent[176]. - The electricity consumption of the office during the reporting period was 57,293.00 kWh, resulting in greenhouse gas emissions of 45.26 tons CO2 equivalent[168]. - The total gasoline consumption from the two company-owned vehicles was 1,604.03 liters, leading to CO2 emissions of 4.34 tons CO2 equivalent[167]. - Business air travel amounted to 64 trips during the reporting period, generating a total of 8.84 tons CO2 equivalent in greenhouse gas emissions[169]. Employee and Workforce - The company employs 41 staff members as of December 31, 2018, excluding independent non-executive directors[181]. - Employee age distribution shows 27% are aged 18-30, 44% are aged 31-50, and 29% are over 50[183]. - 37% of employees hold a university degree or higher, while 63% have below university level education[185]. - The gender distribution of employees is 51% male and 49% female, promoting gender equality in the workplace[190]. - The company has reported zero work-related fatalities and injuries for the year, indicating a strong safety record[195]. Future Plans and Strategies - The company plans to enhance its research capabilities and asset management services, with recruitment expected to begin in Q2 2019[67]. - The company plans to allocate more resources to the asset management division for vertical development[34]. - The company is actively exploring new business opportunities and aims to maintain long-term stable customer relationships while seeking new clients[74]. - The company is currently considering proposals from different vendors for upgrading its portfolio management and trading systems, with expected utilization of funds in the near future[67].