[Company Information](index=3&type=section&id=Company%20Information) This section provides essential details about the company's governance, registration, and contact information [Board of Directors](index=3&type=section&id=Board%20of%20Directors) The company's Board of Directors comprises three executive directors, including the Chairman and CEO, and three independent non-executive directors - Executive Directors include **Mr. Yu Hon Tung** (Chairman and Chief Executive Officer), **Mr. Lo Cheung Moon**, and **Mr. Leung Cheong Yu**[5](index=5&type=chunk) - Independent Non-Executive Directors include **Ms. Lam Shun Ka**, **Mr. Li Xiao Ping**, and **Mr. Tong Chi Kwan**[5](index=5&type=chunk) [Registered Office and Principal Place of Business](index=3&type=section&id=Registered%20Office%20and%20Principal%20Place%20of%20Business) The company's registered office is in the Cayman Islands, with its headquarters and principal place of business located in Kwun Tong, Kowloon, Hong Kong - The registered office is located at Windward 3, Regatta Office Park, Cayman Islands[5](index=5&type=chunk) - The headquarters and principal place of business are located at 6/F, SML Tower, 165 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong[5](index=5&type=chunk) [Auditor and Share Registrar](index=3&type=section&id=Auditor%20and%20Share%20Registrar) The company's auditor is Goldlink CPA Limited, the Cayman Islands principal share registrar is Ocorian Trust (Cayman) Limited, and the Hong Kong branch share registrar is Tricor Investor Services Limited - The auditor is **Goldlink CPA Limited**[5](index=5&type=chunk) - The Cayman Islands principal share registrar is **Ocorian Trust (Cayman) Limited**[5](index=5&type=chunk) - The Hong Kong branch share registrar is **Tricor Investor Services Limited**[5](index=5&type=chunk) [Stock Code and Website](index=3&type=section&id=Stock%20Code%20and%20Website) The company's stock code is 8606, and its official website is www.kinetix.com.hk - Stock Code: **8606**[6](index=6&type=chunk) - Website: **www.kinetix.com.hk**[6](index=6&type=chunk) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) For the six months ended June 30, 2025, total revenue increased by **19.1% to HK$215.7 million**, gross profit grew by **9.8% to HK$38.3 million**, and the company achieved a net profit of **HK$3.1 million**, reversing a net loss in the prior period 2025 Interim Financial Highlights | Indicator | Six Months Ended June 30, 2025 (HK$'000) | Six Months Ended June 30, 2024 (HK$'000) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 215,700 | 181,159 | +19.1% | | Gross Profit | 38,300 | 34,845 | +9.8% | | Net Profit/(Loss) | 3,100 | (600) | N/A (Turned profitable) | - The Board resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2025[7](index=7&type=chunk) [Condensed Interim Consolidated Financial Statements](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Financial%20Statements) This section presents the company's condensed interim consolidated financial statements, including statements of profit or loss, financial position, changes in equity, and cash flows [Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company reported revenue of **HK$215.7 million**, gross profit of **HK$38.252 million**, profit for the period of **HK$3.085 million**, and basic earnings per share of **0.17 HK cents**, reversing a loss from the prior period Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | Six Months Ended June 30, 2025 (HK$'000) | Six Months Ended June 30, 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue | 215,710 | 181,159 | | Cost of sales | (177,458) | (146,314) | | Gross Profit | 38,252 | 34,845 | | Profit/(Loss) before tax | 3,152 | (634) | | Profit/(Loss) for the period | 3,085 | (620) | | Profit/(Loss) attributable to owners of the Company | 2,508 | (665) | | Basic earnings/(loss) per share | 0.17 HK cents | (0.05) HK cents | - Total comprehensive income for the period was **HK$3,022 thousand**, compared to a total comprehensive loss of **HK$711 thousand** for the corresponding period in 2024[9](index=9&type=chunk) [Condensed Interim Consolidated Statement of Financial Position](index=7&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets increased to **HK$272.4 million**, up approximately **49.1%** from December 31, 2024, while total liabilities increased to **HK$204.9 million**, and total equity increased to **HK$67.503 million** Condensed Interim Consolidated Statement of Financial Position (Summary) | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Total Assets | 272,447 | 182,726 | | Total Equity | 67,503 | 64,481 | | Total Liabilities | 204,944 | 118,245 | | Non-current assets | 22,262 | 11,322 | | Current assets | 250,185 | 171,404 | | Current liabilities | 196,918 | 117,121 | - Trade and other receivables increased from **HK$70.955 million** as of December 31, 2024, to **HK$116.6 million** as of June 30, 2025[10](index=10&type=chunk) - Cash and cash equivalents increased from **HK$31.188 million** as of December 31, 2024, to **HK$56.818 million** as of June 30, 2025[10](index=10&type=chunk) [Condensed Interim Consolidated Statement of Changes in Equity](index=9&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the Company increased from **HK$74.978 million** at the beginning of the period to **HK$77.423 million** at the end, primarily due to a profit for the period of **HK$2.508 million** Changes in Equity Attributable to Owners of the Company (Summary) | Indicator | January 1, 2025 (HK$'000) | June 30, 2025 (HK$'000) | | :--- | :--- | :--- | | Equity attributable to owners of the Company | 74,978 | 77,423 | | Profit for the period | - | 2,508 | | Total comprehensive income for the period | - | 2,445 | - Non-controlling interests increased from **HK$(10.497) million** at the beginning of the period to **HK$(9.920) million** at the end[12](index=12&type=chunk) [Condensed Interim Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Interim%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash generated from operating activities significantly increased to **HK$30.11 million**, with a net increase in cash and cash equivalents of **HK$25.701 million**, bringing the period-end cash balance to **HK$56.818 million** Condensed Interim Consolidated Statement of Cash Flows (Summary) | Indicator | Six Months Ended June 30, 2025 (HK$'000) | Six Months Ended June 30, 2024 (HK$'000) | | :--- | :--- | :--- | | Net cash generated from operating activities | 30,110 | 17,112 | | Net cash used in investing activities | (1,234) | (270) | | Net cash used in financing activities | (3,175) | (1,883) | | Net increase in cash and cash equivalents | 25,701 | 14,959 | | Cash and cash equivalents at end of period | 56,818 | 45,218 | [Notes to the Condensed Interim Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the basis of preparation, significant accounting policies, and specific financial statement line items [General Information](index=11&type=section&id=General%20Information) Kinetix Holdings Limited was incorporated in the Cayman Islands in **2016**, primarily engaged in providing IT infrastructure, development solutions, and maintenance and support services - The Company was incorporated in the Cayman Islands on **September 16, 2016**[14](index=14&type=chunk) - Its principal activities include **IT infrastructure solution services**, **IT development solution services**, and **IT maintenance and support services**[14](index=14&type=chunk) [Basis of Preparation and Presentation](index=11&type=section&id=Basis%20of%20Preparation%20and%20Presentation) The condensed interim consolidated financial statements are prepared in accordance with **HKAS 34** and the **GEM Listing Rules**, using the historical cost convention, presented in HK dollars, and reviewed by the Audit Committee - The statements are prepared in accordance with **Hong Kong Accounting Standard 34** and the **GEM Listing Rules**[15](index=15&type=chunk) - They are prepared on a **historical cost basis**, presented in **HK dollars**, and have been reviewed by the Audit Committee but not audited by the auditor[15](index=15&type=chunk) [Adoption of Hong Kong Financial Reporting Standards](index=11&type=section&id=Adoption%20of%20Hong%20Kong%20Financial%20Reporting%20Standards) The adoption of new and revised Hong Kong Financial Reporting Standards and interpretations during the current period has not resulted in **significant changes** to the accounting policies applied in the condensed interim consolidated financial statements - The adoption of new and revised Hong Kong Financial Reporting Standards has not resulted in **significant changes** to accounting policies[16](index=16&type=chunk) [Segment Information](index=12&type=section&id=Segment%20Information) The Group's operating segments primarily include IT infrastructure solutions, IT development solutions, and IT maintenance and support services, with revenue mainly from Hong Kong and significant growth from Singapore - The Group's operating segments include **IT infrastructure solution services**, **IT development solution services**, and **IT maintenance and support services**[17](index=17&type=chunk) [Geographical Information](index=12&type=section&id=Geographical%20Information) The Group's revenue primarily comes from Hong Kong, with **HK$209.5 million** from the Hong Kong market in interim 2025, and Singapore market revenue significantly increased to **HK$4.903 million** Revenue by Geographical Market | Geographical Market | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Hong Kong | 209,526 | 177,935 | | Macau | 1,281 | 2,691 | | Singapore | 4,903 | 453 | | United Kingdom | – | 80 | | **Total** | **215,710** | **181,159** | [Information on Major Customers](index=13&type=section&id=Information%20on%20Major%20Customers) In interim 2025, **Customer A** contributed **HK$26.2 million** in revenue, accounting for **over 10%** of the Group's total revenue Revenue from Major Customers | Customer | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Customer A | 26,200 | * | | Customer B | * | * | * Represents revenue less than 10% of the Group's total revenue for the respective period [Revenue from Contracts with Customers, Other Income and Gains](index=13&type=section&id=Revenue%20from%20Contracts%20with%20Customers,%20Other%20Income%20and%20Gains) The Group's revenue primarily derives from IT infrastructure solution services, which reached **HK$133.9 million** in interim 2025, while other income and gains mainly consist of bank interest income [Revenue from Contracts with Customers](index=13&type=section&id=Revenue%20from%20Contracts%20with%20Customers) In interim 2025, IT infrastructure solution services revenue was **HK$133.9 million**, IT development solution services was **HK$55.785 million**, and IT maintenance and support services was **HK$26.02 million** Revenue by Service Type | Service Type | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | IT infrastructure solution services | 133,905 | 99,076 | | IT development solution services | 55,785 | 59,270 | | IT maintenance and support services | 26,020 | 22,813 | | **Total Revenue** | **215,710** | **181,159** | - In interim 2025, revenue recognized over time was **HK$121.3 million**, and revenue recognized at a point in time was **HK$94.397 million**[26](index=26&type=chunk) [Other Income and Gains](index=14&type=section&id=Other%20Income%20and%20Gains) Other income and gains primarily consist of bank interest income - Other income and gains primarily refer to **bank interest income**[28](index=28&type=chunk)[29](index=29&type=chunk) [Profit/(Loss) Before Tax](index=15&type=section&id=Profit%2F(Loss)%20Before%20Tax) Profit before tax for interim 2025 was **HK$3.152 million**, primarily influenced by software and hardware costs, IT solution services costs, and expected credit loss provisions Major Deductions for Profit/(Loss) Before Tax | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Cost of software and hardware recognized as expense | 118,663 | 80,642 | | Cost of IT solution services | 43,221 | 29,698 | | Cost of IT maintenance and support services | 15,574 | 17,017 | | Provision for expected credit losses | 1,903 | 1,145 | | Directors' fees, salaries, allowances and other benefits in kind (Company Directors) | 2,139 | 1,708 | | Directors' fees, salaries, allowances and other benefits in kind (Other Employees) | 23,149 | 25,294 | - The above costs include subcontracting costs of **HK$36.814 million** for interim 2025 (interim 2024: **HK$39.878 million**)[31](index=31&type=chunk) [Key Management Personnel Compensation and Directors' Emoluments](index=16&type=section&id=Key%20Management%20Personnel%20Compensation%20and%20Directors'%20Emoluments) Total compensation paid to key management personnel for interim 2025 was **HK$2.139 million**, an increase compared to the prior period Key Management Personnel Compensation | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Directors' fees | 66 | 66 | | Short-term employee benefits | 2,049 | 1,615 | | Post-employment benefits | 24 | 27 | | **Total compensation paid to key management personnel** | **2,139** | **1,708** | [Income Tax Expense/(Credit)](index=16&type=section&id=Income%20Tax%20Expense%2F(Credit)) Income tax expense for interim 2025 was **HK$0.067 million**, primarily deferred income tax, with Hong Kong profits tax calculated under a two-tiered tax rate system and no tax payable in the Cayman Islands Income Tax Expense/(Credit) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Hong Kong Profits Tax - Current year | – | (59) | | Hong Kong Profits Tax - Over-provision in prior years | – | 22 | | Deferred income tax | (67) | 51 | | **Total** | **(67)** | **14** | - Hong Kong profits tax is calculated at **8.25%** on the first **HK$2 million** and **16.5%** on profits exceeding **HK$2 million**[35](index=35&type=chunk) - The Company is not subject to any taxation in the Cayman Islands jurisdiction[35](index=35&type=chunk) [Dividends](index=17&type=section&id=Dividends) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 (June 30, 2024: **nil HK$**)[36](index=36&type=chunk) [Earnings/(Loss) Per Share](index=17&type=section&id=Earnings%2F(Loss)%20Per%20Share) Basic earnings per share for interim 2025 was **0.17 HK cents**, compared to a loss per share of **0.05 HK cents** in the prior period, with diluted earnings per share being the same due to anti-dilutive effects Earnings/(Loss) Per Share | Indicator | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Basic earnings/(loss) per share | 0.17 | (0.05) | | Diluted earnings/(loss) per share | 0.17 | (0.05) | - The weighted average number of ordinary shares in issue was **1,445,850 thousand shares**[37](index=37&type=chunk) - Diluted earnings/(loss) per share is the same as basic earnings/(loss) per share as the exercise of share options had an **anti-dilutive effect** on basic earnings/(loss) per share[38](index=38&type=chunk) [Property, Plant and Equipment](index=18&type=section&id=Property,%20Plant%20and%20Equipment) In interim 2025, the Group acquired approximately **HK$0.733 million** in property, plant and equipment and wrote off approximately **HK$0.004 million** in net book value - The Group acquired items of property, plant and equipment at a cost of approximately **HK$0.733 million** (interim 2024: approximately **HK$0.193 million**)[39](index=39&type=chunk) - Property, plant and equipment with a net book value of approximately **HK$0.004 million** were written off (interim 2024: approximately **HK$0.05 million**)[39](index=39&type=chunk) [Trade and Other Receivables](index=18&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables amounted to **HK$118.7 million**, with trade receivables at **HK$76.613 million**, a significant increase from December 31, 2024 Trade and Other Receivables | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Trade receivables | 76,613 | 40,298 | | Unbilled receivables | 6,672 | 7,014 | | Prepayments | 29,895 | 21,192 | | **Total** | **118,798** | **71,712** | Ageing Analysis of Trade Receivables (Net of Provision) | Ageing | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | 0 to 30 days | 67,880 | 26,084 | | 31 to 90 days | 2,128 | 11,598 | | 91 to 180 days | 204 | 410 | | Over 180 days | 6,401 | 2,206 | | **Total** | **76,613** | **40,298** | - Trade receivables are net of provision for expected credit losses of **HK$17.264 million** (December 31, 2024: **HK$15.459 million**)[41](index=41&type=chunk) [Share Capital](index=20&type=section&id=Share%20Capital) As of June 30, 2025, the company's authorized ordinary share capital was **HK$100 million**, with issued and fully paid ordinary shares amounting to **HK$14.459 million**, at a par value of **HK$0.01 per share** Share Capital Structure | Item | Number of Shares | Share Capital (HK$'000) | | :--- | :--- | :--- | | Authorized ordinary shares (par value HK$0.01 per share) | 10,000,000,000 | 100,000 | | Issued and fully paid ordinary shares (par value HK$0.01 per share) | 1,445,849,998 | 14,459 | [Trade and Other Payables](index=20&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables amounted to **HK$111.3 million**, including trade payables of **HK$37.906 million** and accrued purchases and service costs of **HK$60.886 million** Trade and Other Payables | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Trade payables | 37,906 | 33,407 | | Accrued purchases and service costs | 60,886 | 53,482 | | Amounts due to directors of subsidiaries | 5,168 | 7,156 | | Other payables and accrued expenses | 7,388 | 4,900 | | **Total** | **111,348** | **98,945** | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | 0 to 30 days | 36,033 | 22,682 | | 31 to 90 days | 1,496 | 9,750 | | Over 90 days | 377 | 975 | | **Total** | **37,906** | **33,407** | [Related Party Transactions](index=21&type=section&id=Related%20Party%20Transactions) For the six months ended June 30, 2025, the Group had **no related party transactions**, and details of key management personnel compensation have been disclosed - For the six months ended June 30, 2025, and June 30, 2024, there were **no related party transactions**[46](index=46&type=chunk) - Details of key management personnel compensation are set out in note **7** to the financial statements[47](index=47&type=chunk) [Bank Borrowings](index=21&type=section&id=Bank%20Borrowings) As of June 30, 2025, the Group had **no bank borrowings**, compared to approximately **HK$0.3 million** in secured bank borrowings as of December 31, 2024, with existing credit facilities secured by assignment of life insurance policies and a corporate guarantee Bank Borrowings | Item | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Secured bank borrowings | – | 262 | - The Group's interest-bearing bank borrowings are secured by an assignment of life insurance policies purchased for the Company's directors and a corporate guarantee of **HK$31 million** provided by the Company[48](index=48&type=chunk) [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business performance, financial position, and future outlook, including a detailed review of operational and financial results [Business Review and Outlook](index=22&type=section&id=Business%20Review%20and%20Outlook) The Group achieved a net profit of **HK$3.1 million** in interim 2025, reversing a loss from the prior period, primarily due to increased gross profit and reduced administrative expenses, and will continue to strengthen core competencies and expand IT solutions despite macroeconomic uncertainties - In interim 2025, a profit of approximately **HK$3.1 million** was recorded, compared to a net loss of approximately **HK$0.6 million** in interim 2024, achieving a **turnaround**[50](index=50&type=chunk) - The turnaround was mainly due to an increase in gross profit of approximately **HK$3.4 million** (IT infrastructure solution services and IT maintenance and support services gross profit increase) and a decrease in administrative and general expenses of approximately **HK$1.5 million**[50](index=50&type=chunk) - Looking ahead, the Group will continue to prudently and flexibly manage costs and allocate resources, strengthen its risk management framework, and commit to enhancing core competencies and expanding its portfolio of value-added IT solutions[54](index=54&type=chunk) [Provision of IT Development Solution Services](index=22&type=section&id=Provision%20of%20IT%20Development%20Solution%20Services) Revenue from this segment accounted for approximately **25.9%** of total revenue in interim 2025, decreasing by **5.9%** from **HK$59.3 million** in interim 2024 to **HK$55.8 million** in interim 2025, mainly due to slightly slower project revenue recognition Revenue from IT Development Solution Services | Indicator | Interim 2025 (HK$'000) | Interim 2024 (HK$'000) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 55,800 | 59,300 | -5.9% | | Percentage of total revenue | 25.9% | - | - | - The decrease in revenue was mainly due to slightly **slower progress in project revenue recognition** in interim 2025[51](index=51&type=chunk) [Provision of IT Infrastructure Solution Services](index=22&type=section&id=Provision%20of%20IT%20Infrastructure%20Solution%20Services) Revenue from this segment accounted for approximately **62.1%** of total revenue in interim 2025, increasing by **35.2%** from **HK$99.1 million** in interim 2024 to **HK$133.9 million** in interim 2025, primarily due to an increase in the total number of projects and contract values Revenue from IT Infrastructure Solution Services | Indicator | Interim 2025 (HK$'000) | Interim 2024 (HK$'000) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 133,900 | 99,100 | +35.2% | | Percentage of total revenue | 62.1% | - | - | - The increase was mainly due to an **increase in the total number of projects obtained** and an **increase in the total contract value** of IT infrastructure solution services projects in interim 2025[52](index=52&type=chunk) [Provision of IT Maintenance and Support Services](index=23&type=section&id=Provision%20of%20IT%20Maintenance%20and%20Support%20Services) Revenue from this segment accounted for approximately **12.0%** of total revenue in interim 2025, increasing by **14.1%** from **HK$22.8 million** in interim 2024 to **HK$26.0 million** in interim 2025, mainly due to an increase in average contract value Revenue from IT Maintenance and Support Services | Indicator | Interim 2025 (HK$'000) | Interim 2024 (HK$'000) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 26,000 | 22,800 | +14.1% | | Percentage of total revenue | 12.0% | - | - | - The increase in revenue was mainly due to an **increase in the average contract value** of IT maintenance and support services in interim 2025[53](index=53&type=chunk) [Prospects and Outlook](index=23&type=section&id=Prospects%20and%20Outlook) The Group demonstrated resilience and achieved a turnaround in a complex and volatile global economic environment, though macroeconomic uncertainties persist, with future plans including prudent cost management, strengthened risk management, and seizing opportunities in emerging areas - The macroeconomic environment remains **uncertain**, with persistent inflationary pressures, high interest rates, and geopolitical tensions continuing to affect consumer and business investment confidence[54](index=54&type=chunk) - The Group will continue to prudently and flexibly manage costs and allocate resources, strengthen its risk management framework, and commit to enhancing core competencies and expanding its portfolio of value-added IT solutions[54](index=54&type=chunk) - The aim is to seize opportunities in emerging areas such as **cloud integration**, **AI-driven analytics**, and **enterprise automation** to enhance service quality and diversify revenue streams[54](index=54&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) In interim 2025, revenue increased by **19.1%** year-on-year to **HK$215.7 million**, and gross profit grew by **9.8%** to **HK$38.3 million**, though gross margin slightly decreased, with selling and administrative expenses varying, resulting in a profit for the period of **HK$3.1 million** [Revenue](index=23&type=section&id=Revenue) Interim 2025 revenue was approximately **HK$215.7 million**, an increase of **19.1%** compared to interim 2024, primarily driven by increased revenue from IT infrastructure solution services and maintenance and support services Revenue Changes | Indicator | Interim 2025 (HK$'000) | Interim 2024 (HK$'000) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 215,700 | 181,200 | +19.1% | | Increase in IT infrastructure solution services revenue | 34,800 | - | - | | Increase in IT maintenance and support services revenue | 3,200 | - | - | | Decrease in IT development solution services revenue | (3,500) | - | - | [Gross Profit and Gross Margin](index=24&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit increased by **9.8%** from **HK$34.8 million** in interim 2024 to **HK$38.3 million** in interim 2025, but gross margin decreased from **19.2%** to **17.7%**, mainly due to lower gross margins from certain IT development solution services Gross Profit and Gross Margin Changes | Indicator | Interim 2025 | Interim 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Gross Profit (HK$'000) | 38,300 | 34,800 | +9.8% | | Gross Margin | 17.7% | 19.2% | -1.5 percentage points | - The decrease in gross margin was mainly due to a decrease in gross margin from certain IT development solution services with relatively **lower gross margins** in interim 2025[56](index=56&type=chunk) [Selling Expenses](index=24&type=section&id=Selling%20Expenses) Interim 2025 selling expenses were approximately **HK$7.5 million**, an increase of **6.4%** compared to the prior period, primarily due to higher salaries for sales personnel and increased sales commissions Selling Expenses Changes | Indicator | Interim 2025 (HK$'000) | Interim 2024 (HK$'000) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Selling expenses | 7,500 | 7,000 | +6.4% | | Increase in sales personnel salaries | 300 | - | - | | Increase in sales commissions | 200 | - | - | [Administrative and General Expenses](index=24&type=section&id=Administrative%20and%20General%20Expenses) Interim 2025 administrative and general expenses were approximately **HK$26.1 million**, a decrease of **5.3%** compared to the prior period, mainly due to reduced staff salaries from a decrease in headcount, partially offset by increased depreciation expenses for right-of-use assets Administrative and General Expenses Changes | Indicator | Interim 2025 (HK$'000) | Interim 2024 (HK$'000) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Administrative and general expenses | 26,100 | 27,600 | -5.3% | | Decrease in staff salaries | (2,200) | - | - | | Increase in depreciation expenses for right-of-use assets | 500 | - | - | [Profit/(Loss) for the Period and Total Comprehensive Income/(Loss)](index=24&type=section&id=Profit%2F(Loss)%20for%20the%20Period%20and%20Total%20Comprehensive%20Income%2F(Loss)) Interim 2025 recorded a profit of **HK$3.1 million**, compared to a loss of **HK$0.6 million** in interim 2024, primarily due to the net effect of increased gross profit and reduced administrative expenses, with total comprehensive income at **HK$3.0 million** Profit/(Loss) for the Period and Total Comprehensive Income/(Loss) | Indicator | Interim 2025 (HK$'000) | Interim 2024 (HK$'000) | | :--- | :--- | :--- | | Profit/(Loss) for the period | 3,100 | (600) | | Total comprehensive income/(loss) | 3,000 | (700) | - Profit for the period was mainly due to the net effect of an increase in gross profit of approximately **HK$3.4 million** and a decrease in administrative and general expenses of approximately **HK$1.5 million**[59](index=59&type=chunk) - Total comprehensive income includes exchange differences arising from the translation of overseas operations and actuarial losses on long service payment obligations[59](index=59&type=chunk) [Liquidity and Financial Resources](index=25&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily funds its operations through cash generated from operating activities, with cash and cash equivalents increasing to **HK$56.8 million** as of June 30, 2025, no bank borrowings, and a gearing ratio of **24.2%** Liquidity Position | Indicator | June 30, 2025 (HK$'000) | December 31, 2024 (HK$'000) | | :--- | :--- | :--- | | Cash and cash equivalents | 56,800 | 31,200 | | Bank borrowings | – | 300 | | Gearing ratio | 24.2% | 11.1% | - The Group has a credit facility of **HK$10 million** from The Bank of East Asia, secured by an assignment of life insurance policies and a corporate guarantee of **HK$31 million** provided by the Company[60](index=60&type=chunk) [Capital Structure](index=25&type=section&id=Capital%20Structure) As of June 30, 2025, the company's capital structure comprised issued share capital and reserves - The Company's capital structure comprises issued share capital and reserves, and bank borrowings (although there were **no bank borrowings** at the end of the current period)[62](index=62&type=chunk) [Material Investments](index=25&type=section&id=Material%20Investments) In interim 2025, the Group did not hold any **material equity investments** in other companies - As of interim 2025, the Group did not hold any **material investments** in the equity of any other companies[63](index=63&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=25&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) In interim 2025, the Group did not undertake any **material acquisitions or disposals** of subsidiaries, associates, or joint ventures - As of interim 2025, the Group did not undertake any **material acquisitions or disposals** of subsidiaries, associates, and joint ventures[64](index=64&type=chunk) [Employees and Remuneration Policy](index=25&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **148 employees**, with total staff costs of approximately **HK$47.7 million**, and its remuneration policy is regularly reviewed by the Remuneration Committee Employees and Remuneration | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total number of employees | 148 | 166 | | Total staff costs (HK$'000) | 47,700 | 46,300 | - The remuneration policy is regularly reviewed with reference to the legal framework, market conditions, and the Group and individual employee performance[65](index=65&type=chunk) - The remuneration policy and terms for executive directors and senior management members are reviewed by the Remuneration Committee[65](index=65&type=chunk) [Share Option Scheme](index=26&type=section&id=Share%20Option%20Scheme) The company's share option scheme was adopted on **June 22, 2018**, with a total of **68,427,536 share options** remaining unexercised as of June 30, 2025, representing approximately **4.73%** of the issued shares Share Option Scheme Details (as of June 30, 2025) | Category of Participant | Grant Date | Exercise Period | Exercise Price (HK$/share) | Number of Unexercised Share Options | | :--- | :--- | :--- | :--- | :--- | | Executive Director Mr. Yu Hon Tung | August 16, 2021 | August 16, 2021 to August 15, 2031 | 0.152 | 987,826 | | Executive Director Mr. Lo Cheung Moon | August 20, 2021 | August 20, 2021 to August 19, 2031 | 0.154 | 735,725 | | Executive Director Mr. Leung Cheong Yu | August 20, 2021 | August 20, 2021 to August 19, 2031 | 0.154 | 735,725 | | Chief Executive Officer Mr. Lam Tai Wai | August 16, 2021 | August 16, 2021 to August 15, 2031 | 0.152 | 9,878,261 | | Other Employees | August 16, 2021 | August 16, 2021 to August 15, 2031 | 0.152 | 24,633,913 | | Other Employees | August 20, 2021 | August 20, 2021 to August 19, 2031 | 0.154 | 31,456,086 | | **Total** | | | | **68,427,536** | - The share option scheme was adopted on **June 22, 2018**[66](index=66&type=chunk) - The maximum number of shares that may be issued upon exercise of all options is **68,427,536 shares**, representing approximately **4.73%** of the Company's issued shares as of June 30, 2025[68](index=68&type=chunk) [Future Plans for Material Investments or Capital Assets](index=27&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2025, the Group had **no other material investment or capital asset plans** apart from those disclosed in the rights issue prospectus - As of June 30, 2025, there were **no other material investment or capital asset plans** apart from those disclosed in the rights issue prospectus[69](index=69&type=chunk) [Pledge of Group Assets](index=27&type=section&id=Pledge%20of%20Group%20Assets) As of June 30, 2025, the Group had **no other pledged assets**, except for bank financing secured by an assignment of life insurance policies purchased for the Company's directors and a corporate guarantee of **HK$31 million** provided by the Company - Bank financing is secured by an assignment of life insurance policies purchased for the Company's directors and a corporate guarantee of **HK$31 million** provided by the Company[70](index=70&type=chunk) [Exposure to Fluctuations in Exchange Rates](index=27&type=section&id=Exposure%20to%20Fluctuations%20in%20Exchange%20Rates) The Group primarily operates in Hong Kong, Singapore, and China, with foreign currency risk mainly arising from financial instruments denominated in USD, SGD, and RMB, and management monitors exchange rate risk on a case-by-case basis without hedging strategies - The Group primarily operates in Hong Kong, Singapore, and China, with transactions denominated and settled in **HK dollars**, **Singapore dollars**, and **Renminbi**[71](index=71&type=chunk) - Foreign currency risk primarily arises from trade receivables, cash and cash equivalents, trade payables, and bank borrowings denominated in **USD**, **SGD**, and **RMB**[71](index=71&type=chunk) - The Group has **not adopted any hedging strategies**, but management continues to monitor exchange rate risk on a case-by-case basis[71](index=71&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) In interim 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - In interim 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[72](index=72&type=chunk) [Contingent Liabilities](index=27&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had **no significant contingent liabilities** and was not aware of any pending or potential material legal proceedings - As of June 30, 2025, the Group had **no significant contingent liabilities** and was not aware of any pending or potential material legal proceedings involving the Group[73](index=73&type=chunk) [Directors' and Chief Executive's Interests](index=28&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, directors and the chief executive held interests in the company's shares, with Chairman **Mr. Yu Hon Tung** holding **31.80%** through a controlled corporation and beneficially owning **0.07%** of shares, and other executive directors and the chief executive also holding share option interests Directors' and Chief Executive's Interests in the Company's Shares | Director/Chief Executive | Nature of Interest | Number and Class of Securities | Approximate Percentage | | :--- | :--- | :--- | :--- | | Mr. Yu Hon Tung | Interest in controlled corporation | 459,810,000 ordinary shares (L) | 31.80% | | Mr. Yu Hon Tung | Beneficial owner | 987,826 ordinary shares (L) | 0.07% | | Mr. Lo Cheung Moon | Beneficial owner | 735,725 ordinary shares (L) | 0.05% | | Mr. Leung Cheong Yu | Beneficial owner | 735,725 ordinary shares (L) | 0.05% | | Mr. Lam Tai Wai | Beneficial owner | 9,878,261 ordinary shares (L) | 0.68% | - Vigorous King Limited is **100% owned by Mr. Yu Hon Tung**, who is therefore deemed to be interested in the shares held by Vigorous King Limited[76](index=76&type=chunk) - Beneficially owned shares are derived from **share option interests** granted under the Company's share option scheme[77](index=77&type=chunk) [Substantial Shareholders' Interests](index=30&type=section&id=Substantial%20Shareholders'%20Interests) As of June 30, 2025, **Vigorous King Limited** was the largest shareholder, holding **31.80%** of shares, while **Ms. Tong Po Kei** (spouse of Mr. Yu Hon Tung) was deemed to hold **31.87%** of shares, with other substantial shareholders including **Ms. Yiu Wai Kei**, **Mr. Lam Sze Chun**, and companies controlled by him Substantial Shareholders' Interests in the Company's Shares | Shareholder | Capacity/Nature of Interest | Number and Class of Securities | Approximate Percentage | | :--- | :--- | :--- | :--- | | Vigorous King Limited | Beneficial owner | 459,810,000 ordinary shares (L) | 31.80% | | Ms. Tong Po Kei | Spouse interest | 460,797,826 ordinary shares (L) | 31.87% | | Ms. Yiu Wai Kei | Beneficial owner | 73,400,000 ordinary shares (L) | 5.08% | | Mr. Leung Wan Hung | Spouse interest | 73,400,000 ordinary shares (L) | 5.08% | | Mr. Lam Sze Chun | Beneficial owner | 134,350,000 ordinary shares (L) | 9.29% | | Goldlink Hong Kong Investment Limited | Beneficial owner | 50,000,000 ordinary shares (L) | 3.46% | | Fortune Creation Hong Kong Investment Limited | Beneficial owner | 50,000,000 ordinary shares (L) | 3.46% | - Vigorous King Limited is **100% owned by Mr. Yu Hon Tung**[83](index=83&type=chunk) - **Ms. Tong Po Kei** is the spouse of Mr. Yu Hon Tung, and **Mr. Leung Wan Hung** is the spouse of Ms. Yiu Wai Kei, and are deemed to be interested in the relevant interests under the Securities and Futures Ordinance[83](index=83&type=chunk) - **Goldlink Hong Kong Investment Limited** and **Fortune Creation Hong Kong Investment Limited** are both **100% owned by Mr. Lam Sze Chun**[83](index=83&type=chunk) [Required Standard of Securities Transactions by Directors](index=31&type=section&id=Required%20Standard%20of%20Securities%20Transactions%20by%20Directors) The company has adopted a code of conduct for directors' securities transactions and confirmed **full compliance** with this code during the reporting period - The Company has adopted a code of conduct whose terms are no less exacting than the required standard set out in **Rules 5.48 to 5.67 of the GEM Listing Rules**[82](index=82&type=chunk) - The Directors are satisfied that the standards set out in the code of conduct have been **fully complied with** throughout the accounting period covered by this report[82](index=82&type=chunk) [Corporate Governance Practices](index=32&type=section&id=Corporate%20Governance%20Practices) The company has adopted the Corporate Governance Code but has deviations regarding the combined roles of Chairman and CEO and insurance arrangements for directors' legal actions, which the Board believes are in the company's best interests and risks are manageable - The Company has adopted the Corporate Governance Code as set out in **Appendix C1 to the GEM Listing Rules** and has complied with it throughout interim 2025, save for certain deviations[84](index=84&type=chunk) - The deviation is that the roles of Chairman and Chief Executive Officer are combined and held by **Mr. Yu Hon Tung**, which the Board believes is in the **best interests of the Group**[84](index=84&type=chunk) - The Company currently has **no insurance arrangements** for legal actions against directors, as the Board believes the risks faced by directors are relatively low and manageable due to efficient risk management and internal control systems[85](index=85&type=chunk) [Use of Proceeds](index=33&type=section&id=Use%20of%20Proceeds) The Group through a rights issue raised net proceeds of approximately **HK$29.9 million**, with **HK$18 million** utilized for IT development solution services in China and working capital as of June 30, 2025, and the remaining balance expected to be fully utilized by **December 31, 2025** Use of Proceeds from Rights Issue | Purpose | As stated in Rights Issue Prospectus (HK$ million) | Actual utilization as of June 30, 2025 (HK$ million) | Balance as of June 30, 2025 (HK$ million) | Expected timeline for full utilization of remaining net proceeds | | :--- | :--- | :--- | :--- | :--- | | Development and cultivation of new energy vehicle industry | 11.9 | – | 11.9 | December 31, 2025 | | Expansion of IT development solution services in China | 8.0 | 8.0 | – | Fully utilized | | Working capital and other general corporate purposes | 10.0 | 10.0 | – | Fully utilized | | **Total** | **29.9** | **18.0** | **11.9** | | - Development and cultivation of the new energy vehicle industry's use of proceeds experienced delays, mainly due to **unfavorable external economic conditions in China**, **high inflation and interest rates**, **changes in promotional policies**, and **increased market competition**[89](index=89&type=chunk) - The remaining net proceeds are expected to be **fully utilized by December 31, 2025**[89](index=89&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Group's Audit Committee was established on **June 22, 2018**, with primary responsibilities including recommending external auditors, reviewing financial statements, and overseeing internal control procedures, and has reviewed the current period's financial statements, finding them to comply with applicable standards - The Audit Committee was established on **June 22, 2018**, and adopted terms of reference in compliance with **code provision D.3.3 of the Code**[90](index=90&type=chunk) - Its primary responsibilities include making recommendations on the appointment, reappointment, and removal of external auditors, reviewing the Company's financial statements and making judgments on financial reporting, and overseeing the effectiveness of the Group's internal control procedures[90](index=90&type=chunk) - The Audit Committee has reviewed the Group's unaudited financial statements for the six months ended June 30, 2025, and is of the opinion that they have been prepared in accordance with applicable accounting standards, the GEM Listing Rules, and other applicable legal requirements[90](index=90&type=chunk) [Dividends](index=35&type=section&id=Dividends) The Board of Directors has resolved **not to declare a dividend** for the six months ended June 30, 2025 - The Board of Directors has resolved **not to declare a dividend** for the six months ended June 30, 2025[91](index=91&type=chunk) [Disclosure of Information](index=35&type=section&id=Disclosure%20of%20Information) This report will be published on the HKEX website and the company's website and promptly dispatched to shareholders - This report will be published on the **HKEX website** (http://www.hkexnews.hk) and the **Company's website** (http://www.kinetix.com.hk)[92](index=92&type=chunk) [Material Events After the Reporting Period](index=35&type=section&id=Material%20Events%20After%20the%20Reporting%20Period) No material events occurred after the interim 2025 reporting period, other than those disclosed elsewhere in this report - No material events occurred after the interim 2025 reporting period, other than those disclosed elsewhere in this report[93](index=93&type=chunk)

[Company Overview](index=4&type=section&id=Company%20Overview) Provides an overview of Kinetix Holdings Limited, including company details, board members, and a summary of its financial performance for the six months ended June 30, 2025 [Company Information](index=4&type=section&id=Company%20Information) This section provides basic registration information, board members, company secretary, registered and principal place of business, auditor, share registrar, stock code, and website for Kinetix Holdings Limited - The company's board members include executive directors Yu Hon Tung (Chairman and CEO), Lo Cheung Moon, Leung Cheong Yu, and independent non-executive directors Lam Shun Ka, Li Xiao Ping, and Tong Chi Kwan[8](index=8&type=chunk) - The company's stock code is **8606**, and its website is www.kinetix.com.hk[9](index=9&type=chunk) [Financial Highlights](index=5&type=section&id=Financial%20Highlights) For the six months ended June 30, 2025, the company achieved growth in total revenue, gross profit, and net profit, with no interim dividend proposed 2025 Interim Financial Highlights (Compared to 2024 Corresponding Period) | Indicator | June 30, 2025 (HK$ thousand) | Corresponding Period 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 215,700 | 181,159 | +19.1% | | Gross Profit | 38,300 | 34,845 | +9.8% | | Net Profit/(Loss) | 3,100 | (600) | Turnaround to profit | | Interim Dividend | Not recommended | Zero | - | [Financial Results](index=6&type=section&id=Financial%20Results) Details the group's financial performance for the six months ended June 30, 2025, including statements of profit or loss, financial position, changes in equity, and cash flows [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group achieved a net profit of HK$3,085 thousand, reversing a net loss of HK$620 thousand in the prior year, with revenue growing by 19.1% and gross profit by 9.8% Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 215,710 | 181,159 | | Cost of sales | (177,458) | (146,314) | | Gross Profit | 38,252 | 34,845 | | Other income and gains | 474 | 337 | | Selling expenses | (7,457) | (7,007) | | Administrative and general expenses | (26,073) | (27,546) | | Provision for expected credit losses | (1,903) | (1,145) | | Finance costs | (141) | (118) | | Profit/(Loss) before tax | 3,152 | (634) | | Income tax expense/(credit) | (67) | 14 | | Profit/(Loss) for the period | 3,085 | (620) | | Profit/(Loss) attributable to owners of the company | 2,508 | (665) | | Profit/(Loss) attributable to non-controlling interests | 577 | 45 | | Basic and diluted earnings/(loss) per share (HK cents) | 0.17 | (0.05) | - Total comprehensive income for the period was **HK$3,022 thousand**, compared to a total comprehensive loss of HK$711 thousand for the corresponding period in 2024[12](index=12&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=8&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets increased to HK$272,447 thousand, a 49.1% growth from December 31, 2024, driven by significant increases in trade and other receivables and cash and cash equivalents Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 22,262 | 11,322 | | Current assets | 250,185 | 171,404 | | **Total Assets** | **272,447** | **182,726** | | **Equity** | | | | Equity attributable to owners of the company | 77,423 | 74,978 | | Non-controlling interests | (9,920) | (10,497) | | **Total Equity** | **67,503** | **64,481** | | **Liabilities** | | | | Non-current liabilities | 8,026 | 1,124 | | Current liabilities | 196,918 | 117,121 | | **Total Liabilities** | **204,944** | **118,245** | | **Total Equity and Liabilities** | **272,447** | **182,726** | - Current liabilities significantly increased from **HK$117,121 thousand** as of December 31, 2024, to **HK$196,918 thousand** as of June 30, 2025, primarily due to a substantial increase in contract liabilities[14](index=14&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=10&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the company increased from HK$74,978 thousand to HK$77,423 thousand, primarily due to profit for the period Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | January 1, 2025 (HK$ thousand) | Profit for the period (HK$ thousand) | Actuarial loss (HK$ thousand) | Exchange differences (HK$ thousand) | June 30, 2025 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Equity attributable to owners of the company | 74,978 | 2,508 | (34) | (29) | 77,423 | | Non-controlling interests | (10,497) | 577 | – | – | (9,920) | | **Total Equity** | **64,481** | **3,085** | **(34)** | **(29)** | **67,503** | - Total comprehensive income for the interim period of 2025 was **HK$3,022 thousand**, compared to a total comprehensive loss of HK$711 thousand for the corresponding period in 2024[15](index=15&type=chunk) [Interim Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities significantly increased, leading to a net increase in cash and cash equivalents of HK$25,701 thousand, with an ending cash balance of HK$56,818 thousand Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net cash from operating activities | 30,110 | 17,112 | | Net cash used in investing activities | (1,234) | (270) | | Net cash used in financing activities | (3,175) | (1,883) | | Net increase in cash and cash equivalents | 25,701 | 14,959 | | Cash and cash equivalents at beginning of period | 31,188 | 30,323 | | Effect of exchange rate changes | (71) | (64) | | Cash and cash equivalents at end of period | 56,818 | 45,218 | - Net cash from operating activities increased from **HK$17,112 thousand** in the corresponding period of 2024 to **HK$30,110 thousand** in 2025, indicating improved operating efficiency[16](index=16&type=chunk) [Notes to the Interim Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanatory notes to the interim condensed consolidated financial statements, covering general information, accounting policies, segment information, and other financial disclosures [1. General Information](index=12&type=section&id=1.%20General%20Information) The company was incorporated in the Cayman Islands and primarily provides IT infrastructure, development, and maintenance support services - The company was incorporated in the Cayman Islands as an exempted company on **September 16, 2016**[17](index=17&type=chunk) - The Group's principal activities are the provision of information technology ("IT") infrastructure solution services, IT development solution services, and IT maintenance and support services[17](index=17&type=chunk) [2. Basis of Preparation and Presentation](index=12&type=section&id=2.%20Basis%20of%20Preparation%20and%20Presentation) The unaudited interim condensed consolidated financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, presented in HKD on a historical cost basis, and reviewed by the audit committee - The financial statements are prepared in accordance with **Hong Kong Accounting Standard 34 "Interim Financial Reporting"** issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the GEM Listing Rules[18](index=18&type=chunk) - The financial statements are presented in **Hong Kong Dollars** and have not been audited by the auditor but have been reviewed by the company's Audit Committee[18](index=18&type=chunk) [3. Adoption of Hong Kong Financial Reporting Standards ("HKFRSs")](index=12&type=section&id=3.%20Adoption%20of%20Hong%20Kong%20Financial%20Reporting%20Standards%20(%22HKFRSs%22)) The adoption of new and revised HKFRSs in the current period did not result in significant changes to accounting policies - The adoption of new and revised HKFRSs did not result in significant changes to the accounting policies applied in the interim condensed consolidated financial statements[19](index=19&type=chunk) [4. Segment Information](index=13&type=section&id=4.%20Segment%20Information) The Group's operating segments include IT infrastructure solutions, IT development solutions, and IT maintenance and support services - The Group's operating segments are solely the provision of **IT infrastructure solution services**, **IT development solution services**, and **IT maintenance and support services**[20](index=20&type=chunk) [Geographical Information](index=13&type=section&id=Geographical%20Information) Provides revenue analysis by customer geographical location, highlighting significant growth in the Singapore market Revenue Analysis by Customer Geographical Location (For the six months ended June 30) | Geographical Market | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong | 209,526 | 177,935 | +17.7% | | Macau | 1,281 | 2,691 | -52.4% | | Singapore | 4,903 | 453 | +982.3% | | United Kingdom | – | 80 | -100% | | **Total** | **215,710** | **181,159** | **+19.1%** | - Revenue from the **Singapore market** significantly increased from **HK$453 thousand** in 2024 to **HK$4,903 thousand** in 2025[22](index=22&type=chunk) [Information on Major Customers](index=14&type=section&id=Information%20on%20Major%20Customers) Details revenue contributions from major customers accounting for 10% or more of the Group's total revenue Revenue from Major Customers Accounting for 10% or More of the Group's Revenue (For the six months ended June 30) | Customer | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Customer A | 26,200 | * | | Customer B | * | * | - In the corresponding period of 2024, no single customer accounted for more than **10% of revenue**[25](index=25&type=chunk) [5. Revenue from Contracts with Customers, Other Income and Gains](index=14&type=section&id=5.%20Revenue%20from%20Contracts%20with%20Customers%2C%20Other%20Income%20and%20Gains) The Group's revenue primarily derives from IT solution services, with IT infrastructure solutions contributing the largest and most significant growth [(a) Revenue from Contracts with Customers](index=14&type=section&id=(a)%20Revenue%20from%20Contracts%20with%20Customers) Presents a detailed breakdown of revenue by service category, showing growth in IT infrastructure and maintenance services Revenue Analysis (For the six months ended June 30) | Revenue Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | IT infrastructure solution services | 133,905 | 99,076 | +35.2% | | IT development solution services | 55,785 | 59,270 | -5.9% | | IT maintenance and support services | 26,020 | 22,813 | +14.1% | | **Total Revenue** | **215,710** | **181,159** | **+19.1%** | - Revenue recognized over time (**HK$121,313 thousand**) was higher than revenue recognized at a point in time (**HK$94,397 thousand**)[29](index=29&type=chunk)[30](index=30&type=chunk) [(b) Other Income and Gains](index=15&type=section&id=(b)%20Other%20Income%20and%20Gains) Primarily consists of bank interest income for the six months ended June 30, 2025 - Other income and gains primarily refer to **bank interest income** for the six months ended June 30, 2025[31](index=31&type=chunk) [6. Profit/(Loss) Before Tax](index=16&type=section&id=6.%20Profit%2F(Loss)%20Before%20Tax) The Group's profit before tax turned from a loss of HK$634 thousand in 2024 to a profit of HK$3,152 thousand in 2025, influenced by software/hardware costs, IT solution service costs, and expected credit loss provisions Profit/(Loss) Before Tax Components (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Software and hardware costs recognized as expenses | 118,663 | 80,642 | | IT solution service costs | 43,221 | 29,698 | | IT maintenance and support service costs | 15,574 | 17,017 | | Provision for expected credit losses | 1,903 | 1,145 | | Directors' fees, salaries, allowances and other benefits in kind - Directors of the company | 2,139 | 1,708 | | Directors' fees, salaries, allowances and other benefits in kind - Other staff | 23,149 | 25,294 | - Software and hardware costs significantly increased from **HK$80,642 thousand** in 2024 to **HK$118,663 thousand** in 2025[34](index=34&type=chunk) - Provision for expected credit losses increased by approximately **HK$0.8 million**, from HK$1,145 thousand in 2024 to HK$1,903 thousand in 2025[34](index=34&type=chunk) [7. Key Management Personnel Compensation and Directors' Emoluments](index=17&type=section&id=7.%20Key%20Management%20Personnel%20Compensation%20and%20Directors'%20Emoluments) Total compensation paid to key management personnel for the six months ended June 30, 2025, was HK$2,139 thousand, an increase from the prior year Total Compensation Paid to Key Management Personnel (For the six months ended June 30) | Compensation Category | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Directors' fees | 66 | 66 | | Short-term employee benefits | 2,049 | 1,615 | | Post-employment benefits | 24 | 27 | | **Total** | **2,139** | **1,708** | [8. Income Tax Expense/(Credit)](index=17&type=section&id=8.%20Income%20Tax%20Expense%2F(Credit)) Income tax expense for the period was HK$67 thousand, compared to a credit of HK$14 thousand in the prior year, mainly due to increased deferred income tax expense Income Tax Expense/(Credit) (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax - Current year | – | (59) | | Hong Kong Profits Tax - Over-provision in prior years | – | 22 | | Deferred income tax | (67) | 51 | | **Total** | **(67)** | **14** | - Hong Kong Profits Tax is calculated at a rate of **8.25%** on the first HK$2 million and **16.5%** on profits exceeding HK$2 million[38](index=38&type=chunk) [9. Dividends](index=18&type=section&id=9.%20Dividends) The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 (June 30, 2024: nil HK$)[39](index=39&type=chunk) [10. Earnings/(Loss) Per Share](index=18&type=section&id=10.%20Earnings%2F(Loss)%20Per%20Share) For the six months ended June 30, 2025, basic earnings per share were HK0.17 cents, compared to a loss per share of HK0.05 cents in the prior year, indicating a return to profitability Basic Earnings/(Loss) Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit/(Loss) for the period attributable to owners of the company (HK$ thousand) | 2,508 | (665) | | Weighted average number of ordinary shares in issue (thousand shares) | 1,445,850 | 1,445,850 | | **Basic Earnings/(Loss) Per Share (HK cents)** | **0.17** | **(0.05)** | - Diluted earnings/(loss) per share is the same as basic earnings/(loss) per share due to the anti-dilutive effect of potential ordinary shares[41](index=41&type=chunk) [11. Property, Plant and Equipment](index=19&type=section&id=11.%20Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group acquired approximately HK$733 thousand in property, plant, and equipment and wrote off approximately HK$4 thousand in net book value - The Group acquired items of property, plant and equipment at a cost of approximately **HK$733 thousand**, an increase from HK$193 thousand in the corresponding period of 2024[42](index=42&type=chunk) - Net book value of approximately **HK$4 thousand** was written off, compared to approximately HK$50 thousand in the corresponding period of 2024[42](index=42&type=chunk) [12. Trade and Other Receivables](index=19&type=section&id=12.%20Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables increased to HK$118,798 thousand, primarily driven by a significant increase in trade receivables Trade and Other Receivables (As at June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables | 76,613 | 40,298 | | Unbilled receivables | 6,672 | 7,014 | | Deposits | 2,638 | 872 | | Prepayments | 29,895 | 21,192 | | Prepayments for life insurance policies | 160 | 160 | | Other receivables | 2,820 | 2,176 | | **Total** | **118,798** | **71,712** | - Total trade receivables (before provision) increased from **HK$55,757 thousand** as of December 31, 2024, to **HK$93,877 thousand** as of June 30, 2025[44](index=44&type=chunk) - Trade receivables aged **0 to 30 days** increased from HK$26,084 thousand as of December 31, 2024, to **HK$67,880 thousand** as of June 30, 2025[45](index=45&type=chunk) [13. Share Capital](index=21&type=section&id=13.%20Share%20Capital) As of June 30, 2025, the company's issued and fully paid share capital was HK$14,459 thousand, comprising 1,445,849,998 shares, consistent with the end of 2024 - The company's authorized ordinary share capital is **10,000,000,000 shares** of HK$0.01 each, totaling HK$100,000 thousand[46](index=46&type=chunk) - The number of issued and fully paid ordinary shares is **1,445,849,998**, with a share capital of HK$14,459 thousand[46](index=46&type=chunk) [14. Trade and Other Payables](index=21&type=section&id=14.%20Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased to HK$111,348 thousand, primarily driven by an increase in accrued purchases and service costs Trade and Other Payables (As at June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 37,906 | 33,407 | | Accrued purchases and service costs | 60,886 | 53,482 | | Amounts due to directors of subsidiaries | 5,168 | 7,156 | | Other payables and accrued charges | 7,388 | 4,900 | | **Total** | **111,348** | **98,945** | - Trade payables aged **0 to 30 days** increased from HK$22,682 thousand as of December 31, 2024, to **HK$36,033 thousand** as of June 30, 2025[48](index=48&type=chunk) [15. Related Party Transactions](index=22&type=section&id=15.%20Related%20Party%20Transactions) For the six months ended June 30, 2025, the Group did not engage in any related party transactions - For the six months ended June 30, 2025, and June 30, 2024, there were **no transactions with related parties**[49](index=49&type=chunk) [16. Bank Borrowings](index=22&type=section&id=16.%20Bank%20Borrowings) As of June 30, 2025, the Group had no bank borrowings, compared to HK$262 thousand in secured bank borrowings as of December 31, 2024 Bank Borrowings (As at June 30, 2025) | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Secured bank borrowings | – | 262 | - Bank borrowings were secured by assignment deeds of life insurance policies purchased for the company's directors and a corporate guarantee of **HK$31,000,000** provided by the company[51](index=51&type=chunk) [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) Provides an in-depth review of the Group's business and financial performance, liquidity, capital structure, and future outlook for the period [Business Review and Outlook](index=23&type=section&id=Business%20Review%20and%20Outlook) The Group achieved a turnaround to profit in the first half of 2025, driven by increased gross profit and reduced administrative expenses, partially offset by higher expected credit loss provisions and selling expenses - The Group recorded a profit of approximately **HK$3.1 million** in the first half of 2025, compared to a net loss of approximately HK$0.6 million in the first half of 2024, successfully turning losses into profits[53](index=53&type=chunk) - The turnaround was primarily due to an increase in gross profit of approximately **HK$3.4 million** (from IT infrastructure solution services and IT maintenance and support services) and a decrease in administrative and general expenses of approximately **HK$1.5 million**[53](index=53&type=chunk) - This growth was partially offset by an increase in provision for expected credit losses of approximately **HK$0.8 million** and an increase in selling expenses of approximately **HK$0.5 million**[53](index=53&type=chunk) [Provision of IT Development Solution Services](index=23&type=section&id=Provision%20of%20IT%20Development%20Solution%20Services) Reviews the revenue performance of IT development solution services, noting a slight decrease due to project revenue recognition pace IT Development Solution Services Revenue (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 55,800 | 59,300 | -5.9% | | Percentage of total revenue | 25.9% | - | - | - The decrease in revenue was mainly due to a slightly slower pace of project revenue recognition in the first half of 2025[54](index=54&type=chunk) [Provision of IT Infrastructure Solution Services](index=23&type=section&id=Provision%20of%20IT%20Infrastructure%20Solution%20Services) Examines the revenue growth in IT infrastructure solution services, attributed to an increase in projects and contract values IT Infrastructure Solution Services Revenue (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 133,900 | 99,100 | +35.2% | | Percentage of total revenue | 62.1% | - | - | - The increase in revenue was mainly due to an increase in the total number of projects obtained and an increase in the total contract value of IT infrastructure solution service projects in the first half of 2025[55](index=55&type=chunk) [Provision of IT Maintenance and Support Services](index=24&type=section&id=Provision%20of%20IT%20Maintenance%20and%20Support%20Services) Discusses the revenue increase in IT maintenance and support services, primarily due to higher average contract values IT Maintenance and Support Services Revenue (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 26,000 | 22,800 | +14.1% | | Percentage of total revenue | 12.0% | - | - | - The increase in revenue was mainly due to an increase in the average contract value of IT maintenance and support services in the first half of 2025[56](index=56&type=chunk) [Prospects and Outlook](index=24&type=section&id=Prospects%20and%20Outlook) Addresses the uncertain macroeconomic environment and outlines the Group's strategies for cost management, risk mitigation, and expansion into emerging IT areas - The macroeconomic environment remains uncertain, with persistent inflation, high interest rates, and geopolitical tensions continuing to affect consumer and business confidence[57](index=57&type=chunk) - The Group will continue to manage costs and allocate resources prudently and flexibly, strengthen its risk management framework, and enhance its core competitiveness and expand its value-added IT solution product portfolio[57](index=57&type=chunk) - The aim is to seize opportunities in emerging areas such as cloud integration, AI-driven analytics, and enterprise automation to improve service quality and diversify revenue streams[57](index=57&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) Reviews the Group's financial performance for the first half of 2025, including revenue, gross profit, operating expenses, and the shift from loss to profit [Revenue](index=24&type=section&id=Revenue) Provides a detailed breakdown of the Group's revenue performance by service segment for the period Revenue Review (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 215,700 | 181,200 | +19.1% | | Increase in IT infrastructure solution services revenue | 34,800 | - | - | | Increase in IT maintenance and support services revenue | 3,200 | - | - | | Decrease in IT development solution services revenue | (3,500) | - | - | [Gross Profit and Gross Margin](index=25&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Analyzes the Group's gross profit and gross margin, noting a slight decrease in margin due to lower-margin IT development solution services Gross Profit and Gross Margin Review (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 38,300 | 34,800 | +9.8% | | Gross Margin | 17.7% | 19.2% | -1.5% | - The decrease in gross margin was mainly due to a reduction in the gross margin of certain IT development solution services with relatively lower gross margins in the first half of 2025[59](index=59&type=chunk) [Selling Expenses](index=25&type=section&id=Selling%20Expenses) Reviews the changes in selling expenses, primarily driven by increases in sales personnel salaries and commissions Selling Expenses Review (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Selling expenses | 7,500 | 7,000 | +6.4% | | Increase in sales staff salary expenses | 300 | - | - | | Increase in sales commissions | 200 | - | - | [Administrative and General Expenses](index=25&type=section&id=Administrative%20and%20General%20Expenses) Examines the changes in administrative and general expenses, influenced by reduced salary expenses and increased depreciation of right-of-use assets Administrative and General Expenses Review (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative and general expenses | 26,100 | 27,600 | -5.3% | | Decrease in salary expenses | 2,200 | - | - | | Increase in depreciation expense of right-of-use assets | 500 | - | - | [Loss and Total Comprehensive Loss for the Period](index=25&type=section&id=Loss%20and%20Total%20Comprehensive%20Loss%20for%20the%20Period) Highlights the Group's turnaround from a net loss to a net profit and total comprehensive income for the period - The Group recorded a profit of approximately **HK$3.1 million** in the first half of 2025, compared to a loss of approximately HK$0.6 million in the first half of 2024[62](index=62&type=chunk) - Total comprehensive income for the first half of 2025 was approximately **HK$3.0 million**, compared to a total comprehensive loss of approximately HK$0.7 million in the first half of 2024[62](index=62&type=chunk) [Liquidity and Financial Resources](index=26&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's liquidity position is good, with a significant increase in cash and cash equivalents and no bank borrowings, though the gearing ratio has risen Liquidity Position (As at June 30, 2025) | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Cash and cash equivalents | 56,800 | 31,200 | | Bank borrowings | – | 300 | | Gearing ratio | 24.2% | 11.1% | - The Group has a credit facility of **HK$10 million** from The Bank of East Asia, secured by assignment deeds of directors' life insurance policies and a corporate guarantee of HK$31 million[63](index=63&type=chunk) [Capital Structure](index=26&type=section&id=Capital%20Structure) Describes the company's capital structure, comprising issued share capital, reserves, and bank borrowings (currently zero) - The company's capital structure comprises **issued share capital and reserves** as well as bank borrowings[65](index=65&type=chunk) [Material Investments](index=26&type=section&id=Material%20Investments) Confirms that the Group held no material equity investments in other companies during the first half of 2025 - In the first half of 2025, the Group did not hold any **material investments** in the equity of any other companies[66](index=66&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=26&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures) States that the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures during the first half of 2025 - In the first half of 2025, the Group did not undertake any **material acquisitions and disposals** of subsidiaries, associates, and joint ventures[67](index=67&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had 148 employees with total staff costs of approximately HK$47.7 million, and its remuneration policy is regularly reviewed by the Remuneration Committee Employees and Remuneration (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Total number of employees | 148 | 166 | | Total staff costs (HK$ thousand) | 47,700 | 46,300 | - The remuneration policy is regularly reviewed with reference to the legal framework, market conditions, and the performance of the Group and individual employees, with executive directors' and senior management's remuneration reviewed by the Remuneration Committee[68](index=68&type=chunk) [Share Option Scheme](index=27&type=section&id=Share%20Option%20Scheme) The company's share option scheme was adopted on June 22, 2018, with 68,427,536 unexercised share options representing approximately 4.73% of issued shares as of June 30, 2025 - The share option scheme was adopted on **June 22, 2018**[69](index=69&type=chunk) Details of Unexercised Share Options (As at June 30, 2025) | Category of Participant | Number of Share Options | Exercise Price (HK$) | | :--- | :--- | :--- | | Executive Directors (Yu Hon Tung, Lo Cheung Moon, Leung Cheong Yu) | 2,459,276 | 0.152 - 0.154 | | Chief Executive (Lam Tai Wai) | 9,878,261 | 0.152 | | Other Employees | 56,089,999 | 0.152 - 0.154 | | **Total** | **68,427,536** | - | - The number of unexercised share options represents approximately **4.73%** of the company's issued shares as of June 30, 2025[71](index=71&type=chunk) [Future Plans for Material Investments or Capital Assets](index=28&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Except as disclosed in the rights issue prospectus, the Group had no other material investment or capital asset plans as of June 30, 2025 - Except as disclosed in the rights issue prospectus, there were **no other material investments or capital asset plans** as of June 30, 2025[72](index=72&type=chunk) [Pledge of Group Assets](index=28&type=section&id=Pledge%20of%20Group%20Assets) As of June 30, 2025, the Group's bank facilities were secured by assignment deeds of life insurance policies for directors and a corporate guarantee of HK$31 million - Bank facilities were secured by assignment deeds of life insurance policies purchased for the company's directors and a corporate guarantee of **HK$31 million** (plus interest and other charges) provided by the company[73](index=73&type=chunk) [Exposure to Exchange Rate Fluctuations](index=28&type=section&id=Exposure%20to%20Exchange%20Rate%20Fluctuations) The Group operates primarily in Hong Kong, Singapore, and China, facing foreign currency risks from HKD, SGD, and RMB denominated financial instruments, but management has not adopted hedging strategies - The Group primarily operates in **Hong Kong, Singapore, and China**, with most transactions denominated and settled in HKD, SGD, and RMB[74](index=74&type=chunk) - The Group's foreign currency risk primarily arises from **trade receivables, cash and cash equivalents, trade payables, and bank borrowings**[74](index=74&type=chunk) - In the first half of 2025 and 2024, the Group did not adopt any hedging strategies, but management continues to monitor exchange rate risks on a case-by-case basis[74](index=74&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=28&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the first half of 2025 - In the first half of 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[75](index=75&type=chunk) [Contingent Liabilities](index=28&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities and was not aware of any pending or potential material legal proceedings - As of June 30, 2025, the Group had **no material contingent liabilities** and was not aware of any pending or potential material legal proceedings involving the Group[76](index=76&type=chunk) [Use of Proceeds](index=34&type=section&id=Use%20of%20Proceeds) Of the HK$29.9 million net proceeds from the rights issue, HK$18 million has been utilized for China technology development solution services and working capital, with delays in the new energy vehicle industry development plan, and the remaining funds are expected to be fully utilized by December 31, 2025 Use of Proceeds from Rights Issue (As at June 30, 2025) | Purpose | Expected Use per Rights Issue Prospectus (HK$ million) | Actual Use as at June 30, 2025 (HK$ million) | Balance (HK$ million) | Expected Timeline for Remaining Net Proceeds | | :--- | :--- | :--- | :--- | :--- | | Development and cultivation of new energy vehicle industry | 11.9 | – | 11.9 | December 31, 2025 | | Expansion of technology development solution services in China | 8.0 | 8.0 | – | Fully utilized | | Working capital and other general corporate purposes | 10.0 | 10.0 | – | Fully utilized | | **Total** | **29.9** | **18.0** | **11.9** | - | - The use of proceeds for the development and cultivation of the new energy vehicle industry has been delayed, primarily due to unfavorable external economic conditions in China, insufficient demand for new energy vehicles, high inflation and interest rate environment, changes in promotional policies, and intensified market competition[91](index=91&type=chunk)[92](index=92&type=chunk) - The remaining net proceeds are expected to be **fully utilized by December 31, 2025**[92](index=92&type=chunk) [Other Information](index=29&type=section&id=Other%20Information) Provides additional disclosures including directors' and major shareholders' interests, corporate governance practices, audit committee review, and post-reporting period events [Directors' and Chief Executive's Interests](index=29&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of June 30, 2025, directors and the chief executive held interests in the company's shares, with Chairman Mr. Yu Hon Tung holding 31.80% through a controlled corporation Directors' and Chief Executive's Interests in the Company's Shares (As at June 30, 2025) | Director/Chief Executive | Nature of Interest | Number and Class of Securities | Approximate Percentage | | :--- | :--- | :--- | :--- | | Mr. Yu Hon Tung | Interest in controlled corporation | 459,810,000 ordinary shares (L) | 31.80% | | Mr. Yu Hon Tung | Beneficial owner (share options) | 987,826 ordinary shares (L) | 0.07% | | Mr. Lo Cheung Moon | Beneficial owner (share options) | 735,725 ordinary shares (L) | 0.05% | | Mr. Leung Cheong Yu | Beneficial owner (share options) | 735,725 ordinary shares (L) | 0.05% | | Mr. Lam Tai Wai | Beneficial owner (share options) | 9,878,261 ordinary shares (L) | 0.68% | - Mr. Yu Hon Tung holds approximately **31.80%** of the company's shares through Vigorous King Limited, which he wholly owns[79](index=79&type=chunk) [Substantial Shareholders' Interests](index=31&type=section&id=Substantial%20Shareholders'%20Interests) As of June 30, 2025, Vigorous King Limited was the largest shareholder with 31.80% of the company's shares, alongside other major shareholders including Ms. Tong Po Kei, Ms. Yiu Wai Kei, Mr. Leung Wan Hung, and Mr. Lam Sze Chun Substantial Shareholders' Interests in the Company's Shares (As at June 30, 2025) | Shareholder | Capacity/Nature of Interest | Number and Class of Securities | Approximate Percentage | | :--- | :--- | :--- | :--- | | Vigorous King Limited | Beneficial owner | 459,810,000 ordinary shares (L) | 31.80% | | Ms. Tong Po Kei | Spouse's interest | 460,797,826 ordinary shares (L) | 31.87% | | Ms. Yiu Wai Kei | Beneficial owner | 73,400,000 ordinary shares (L) | 5.08% | | Mr. Leung Wan Hung | Spouse's interest | 73,400,000 ordinary shares (L) | 5.08% | | Mr. Lam Sze Chun | Beneficial owner | 134,350,000 ordinary shares (L) | 9.29% | | Golden Prosperity Hong Kong Investment Limited | Beneficial owner | 50,000,000 ordinary shares (L) | 3.46% | | Rich Creation Hong Kong Investment Limited | Beneficial owner | 50,000,000 ordinary shares (L) | 3.46% | - Ms. Tong Po Kei is deemed to hold Mr. Yu Hon Tung's interests due to her spousal relationship, totaling **31.87%**[86](index=86&type=chunk) - Mr. Lam Sze Chun indirectly holds shares through Golden Prosperity Hong Kong Investment Limited and Rich Creation Hong Kong Investment Limited[86](index=86&type=chunk) [Required Standard of Securities Transactions by Directors](index=32&type=section&id=Required%20Standard%20of%20Securities%20Transactions%20by%20Directors) The company has adopted a code of conduct for directors' securities transactions and confirmed full compliance during the reporting period - The company has adopted a **code of conduct for directors' securities transactions** with terms no less stringent than Rules 5.48 to 5.67 of the GEM Listing Rules[85](index=85&type=chunk) - The directors confirm full compliance with the standards set out in the code of conduct throughout the entire accounting period covered by the report[85](index=85&type=chunk) [Corporate Governance Practices](index=33&type=section&id=Corporate%20Governance%20Practices) The company has adopted the Corporate Governance Code but has deviations regarding the combined roles of Chairman and CEO and director legal action insurance, which the Board deems to be in the company's best interests and with manageable risks - The company has adopted the **Corporate Governance Code** as set out in Appendix C1 to the GEM Listing Rules and believes it has complied throughout the first half of 2025, with some deviations[87](index=87&type=chunk) - A deviation exists where the roles of Chairman and Chief Executive are combined and held by Mr. Yu Hon Tung, which the Board believes is in the best interests of the Group to ensure efficient management and business development[87](index=87&type=chunk) - Another deviation is the current lack of insurance arrangements for legal actions against directors, which the Board believes carries a low and manageable risk of directors being sued[88](index=88&type=chunk) [Interests in Competing Business](index=33&type=section&id=Interests%20in%20Competing%20Business) During the first half of 2025, directors were unaware of any business or interest that competes or may compete with the Group's business held by directors, controlling shareholders, or their close associates - In the first half of 2025, the directors were unaware of any business or interest that competes or may compete with the Group's business held by directors, the company's controlling shareholders, and their respective close associates[89](index=89&type=chunk) [Audit Committee](index=35&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's accounting principles, internal controls, and financial statements, concluding that the statements are prepared in accordance with applicable standards and provide adequate disclosures - The Audit Committee was established on **June 22, 2018**, with primary responsibilities including making recommendations on the appointment of external auditors, reviewing financial statements, and overseeing internal control procedures[93](index=93&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Group with management and has reviewed the unaudited financial statements for the six months ended June 30, 2025[93](index=93&type=chunk) [Dividends](index=36&type=section&id=Dividends) The Board of Directors has resolved not to declare a dividend for the six months ended June 30, 2025 - The Board of Directors has resolved **not to declare a dividend** for the six months ended June 30, 2025[94](index=94&type=chunk) [Disclosure of Information](index=36&type=section&id=Disclosure%20of%20Information) This report will be published on the HKEXnews website and the company's website and promptly dispatched to shareholders - This report will be published on the **HKEXnews website** (http://www.hkexnews.hk) and the **company's website** (http://www.kinetix.com.hk) and promptly dispatched to shareholders[95](index=95&type=chunk) [Events After the Reporting Period](index=36&type=section&id=Events%20After%20the%20Reporting%20Period) Except as otherwise disclosed in this report, there were no significant events after the reporting period for the first half of 2025 - Except as otherwise disclosed in other parts of this report, there were **no significant events** after the reporting period for the first half of 2025[96](index=96&type=chunk)

Group 1 - The company, Zhiguan Holdings (08606), announced an expected profit of approximately HKD 3.1 million for the six months ending June 30, 2025, compared to a net loss of about HKD 620,000 for the previous year [1] - The increase in profitability is primarily attributed to a rise in revenue from information technology infrastructure solution services [1] - Additionally, the company implemented cost control measures that resulted in a reduction in selling and administrative expenses [1]

Core Viewpoint - The company, Zhiguan Holdings (08606), expects to achieve a profit of approximately HKD 3.1 million for the six months ending June 30, 2025, compared to a net loss of about HKD 620,000 for the previous fiscal year [1] Financial Performance - The anticipated profit increase is primarily attributed to a rise in revenue from information technology infrastructure solution services [1] - The company has implemented cost control measures, resulting in a reduction in sales and management expenses [1]

KINETIX SYSTEMS HOLDINGS LIMITED 倢冠控股有限公司 (於開曼群島註冊成立的有限公司) (股份代號: 8606) 正面盈利預告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分 內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 上述資料僅基於管理層對本集團截至2025年6月30日止6個月之未經審核綜合管理賬目 的初步評估及目前所得資料而作出，其未經本公司的審核委員會審閱。本公司正在落 實本集團截至2025年6月30日止6個月的中期業績，預計將根據GEM上市規則於2025年8 月底前刊發。 股東及有意投資者於買賣本公司股份時務請審慎行事。 承董事會命 倢冠控股有限公司 主席 余漢埬 香港，2025年8月28日 於本公告日期，本公司董事會成員包括執行董事余漢埬先生、梁昌豫先生及羅章滿先 生以及獨立非執行董事林汛珈女士、李小平先生及唐旨均先生。 本公告的資料乃遵照 GEM 上市規則而刊載，旨在提供有關本公司之資料。本公司的董 事願就本公告的資料共同及個別地承擔全部責任，各董事在 ...

承董事會命 倢冠控股有限公司 主席 余漢埬 香港，2025年8月25日 (股份代號: 8606) 董事會會議通告 倢冠控股有限公司（「本公司」）之董事會（「董事會」）謹此宣佈，董事會將於 2025 年 8 月 29 日（星期五）舉行會議，藉以（其中包括）考慮及批准本公司及其附屬 公司截至 2025 年 6 月 30 日止 6 個月之未經審核綜合中期業績，以及考慮宣派中期股息 （如有）。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分 內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 KINETIX SYSTEMS HOLDINGS LIMITED 倢冠控股有限公司 (於開曼群島註冊成立的有限公司) 於本公告日期，本公司董事會成員包括執行董事余漢埬先生、梁昌豫先生及羅章滿先 生以及獨立非執行董事林汛珈女士、李小平先生及唐旨均先生。 本公告將自其刊發日期起計至少一連七日刊載於聯交所網站 www.hkexnews.hk 內「最 新 上 市 公 司 公 告」一 頁 及 本 公 司 網 站 www.kinet ...

第 1 頁 共 10 頁 v 1.1.1 FF301 FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年7月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 倢冠控股有限公司 | | | 呈交日期: | 2025年8月4日 | | | I. 法定/註冊股本變動 | | | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08606 | 說明 | 法定股本 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | HKD ...

Financial Performance - For the fiscal year 2024, the company reported revenue of approximately HKD 3,353 million, an increase of about 8.5% compared to the previous fiscal year[11]. - The gross profit for the fiscal year 2024 was approximately HKD 665 million, representing a 12.4% increase from the fiscal year 2023[11]. - The comprehensive loss attributable to owners of the company for fiscal year 2024 was approximately HKD 48 million, a significant reduction of about 68.3% compared to fiscal year 2023[11]. - The company recorded a net loss attributable to equity shareholders of approximately HKD 4.7 million for the fiscal year 2024, a decrease of about HKD 9.4 million compared to a net loss of approximately HKD 14.1 million in fiscal year 2023[25]. - The overall gross profit increased by approximately HKD 7.4 million, primarily due to an increase of approximately HKD 13.5 million in gross profit from the IT infrastructure solutions segment[25]. - The company's revenue for the fiscal year 2024 was approximately HKD 3,353 million, an increase of about HKD 263 million or 8.5% compared to fiscal year 2023 (approximately HKD 3,091 million)[46]. - Gross profit for fiscal year 2024 was approximately HKD 665 million, an increase of about HKD 74 million or 12.4% from fiscal year 2023 (approximately HKD 592 million)[47]. - The net loss for fiscal year 2024 was approximately HKD 69 million, a reduction from a net loss of approximately HKD 173 million in fiscal year 2023[50]. - The total comprehensive loss for fiscal year 2024 was approximately HKD 69 million, compared to approximately HKD 182 million in fiscal year 2023[50]. Business Strategy and Opportunities - The company aims to explore new business opportunities and enhance its business segments in response to global economic uncertainties[12]. - The company expresses confidence in the prospects of the artificial intelligence industry and aims to provide transformative solutions to meet evolving customer needs[12]. - The strategic plan focuses on ensuring sustainable growth in the rapidly developing artificial intelligence sector[12]. - The company is committed to innovation and excellence to leverage cutting-edge technology for substantial development[12]. - The company emphasizes its proactive approach and pursuit of excellence to seize new opportunities and strengthen its market position[12]. - The company aims to expand its project acquisition and total contract value in the upcoming fiscal year[26]. - The company will actively seek new business opportunities and explore new applications of artificial intelligence to achieve maximum returns for stakeholders in the medium to long term[45]. Operational Insights - The company has been a reputable provider of IT services for approximately 26 years, serving both private and public sectors[11]. - Employee costs totaled approximately HKD 94.1 million in fiscal year 2024, up from approximately HKD 81.3 million in fiscal year 2023, reflecting an increase in headcount to 170 employees[58]. - The management team has a combined experience of over 25 years in the IT industry, enhancing the company's operational capabilities[23]. - The company experienced an increase in salary expenses of approximately HKD 6.4 million due to an increase in employee numbers and salary adjustments[25]. Financial Management and Capital Structure - The company's cash and cash equivalents as of December 31, 2024, were approximately HKD 31.2 million, compared to approximately HKD 30.3 million as of December 31, 2023[52]. - The company's capital debt ratio as of December 31, 2024, was 11.1%, a slight decrease from 11.8% as of December 31, 2023[52]. - The group maintained a prudent financial management approach to ensure a stable liquidity position throughout the fiscal year 2024[53]. - The net proceeds from the rights issue amount to approximately HKD 29.9 million, with HKD 18.0 million already utilized by December 31, 2024[30]. - The remaining net proceeds of HKD 11.9 million are expected to be fully utilized by December 31, 2025, contingent on market conditions[33]. Risk Management - The company faces significant risks including reliance on a limited number of suppliers, credit risk from customers, and potential project delays[34]. - The company is monitoring foreign exchange risks due to operations in China and Singapore[40]. - The company has not secured sufficient insurance coverage for operational losses and liabilities[39]. - The company has adopted risk management policies aimed at managing and minimizing risks faced by the group, with procedures in place to identify, assess, and manage significant risks[123]. Corporate Governance - The board believes that good corporate governance is essential for effective management and successful business development, and has adhered to the GEM listing rules throughout fiscal year 2024[79]. - The board consists of three executive directors and three independent non-executive directors, ensuring a diverse range of business experience and expertise[85]. - The company has established a three-year service agreement with all executive directors, which can be extended with a three-month written notice for termination[89]. - The audit committee has reviewed the accounting principles adopted by the group and found the financial statements for fiscal year 2024 to comply with applicable accounting standards and GEM listing rules[78]. - The company has committed to continuously reviewing its corporate governance practices to meet increasing regulatory expectations[81]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to maintaining high environmental and social standards, ensuring sustainable business practices[183]. - The group emphasizes sustainability as a key factor for business success, maintaining high-quality standards while building an environmentally friendly corporate image[191]. - The group conducts annual assessments of significant environmental, social, and governance (ESG) issues to prioritize matters that have a substantial impact on its operations[195]. - The governance structure for ESG responsibilities has been established, with the board overseeing significant ESG matters and management executing strategies[195]. - The group aims to integrate green development concepts into its operations, promoting low-carbon economic transformation and achieving "dual carbon goals" for long-term sustainability[195].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of approximately HKD 3,353 million, an increase of about 8.5% compared to the previous fiscal year[14]. - The gross profit for the same period was approximately HKD 665 million, representing a 12.4% increase from the fiscal year ending December 31, 2023[14]. - The comprehensive loss attributable to owners of the company was approximately HKD 48 million, a significant reduction of about 68.3% compared to the previous fiscal year[14]. - The company recorded a net loss attributable to equity shareholders of approximately HKD 4.7 million for the fiscal year 2024, a decrease of about HKD 9.4 million compared to a net loss of approximately HKD 14.1 million in fiscal year 2023[28]. - The reduction in net loss was primarily due to a decrease in depreciation expenses by approximately HKD 5.1 million and a decrease in expected credit loss provisions by approximately HKD 2.4 million[28]. - Gross profit increased by approximately HKD 7.4 million, mainly due to an increase of approximately HKD 13.5 million in gross profit from infrastructure solution services provided in fiscal year 2024[28]. - The company anticipates that consumer demand will recover in FY2025, providing more opportunities for suitable business partnerships[35]. - The company's revenue for the fiscal year 2024 was approximately HKD 3,353 million, an increase of about HKD 263 million or 8.5% compared to fiscal year 2023 (approximately HKD 3,091 million)[49]. - The gross profit for fiscal year 2024 was approximately HKD 665 million, an increase of about HKD 74 million or 12.4% compared to fiscal year 2023 (approximately HKD 592 million)[50]. - The gross margin improved from approximately 19.1% in fiscal year 2023 to approximately 19.8% in fiscal year 2024, primarily due to better cost control in IT infrastructure solutions and maintenance services[50]. Business Strategy and Opportunities - The company aims to explore new business opportunities and enhance its business segments in response to global economic uncertainties[15]. - The company expresses confidence in the prospects of the artificial intelligence industry and aims to provide transformative solutions to meet evolving customer needs[15]. - The strategic plan focuses on ensuring sustainable growth in the rapidly developing artificial intelligence sector[15]. - The company is committed to innovation and excellence to leverage cutting-edge technology for substantial development[15]. - The company plans to strategically enter the artificial intelligence sector, focusing on machine learning, natural language processing, and computer vision technologies[47]. - The company will actively seek new business opportunities and explore new AI applications to maximize returns for stakeholders in the medium to long term[48]. Operational Performance - The IT infrastructure solutions segment generated approximately HKD 179 million in revenue for FY2024, accounting for about 53.4% of total revenue, representing a 27.8% increase from approximately HKD 140 million in FY2023[29]. - The IT development solutions segment reported revenue of approximately HKD 108.5 million for FY2024, which is about 32.3% of total revenue, reflecting a 12.0% decrease from approximately HKD 123.4 million in FY2023 due to a reduction in project numbers[30]. - The IT maintenance and support services segment achieved revenue of approximately HKD 47.8 million for FY2024, making up about 14.3% of total revenue, with a 4.9% increase from approximately HKD 45.6 million in FY2023, primarily due to an increase in average contract value[31]. - The increase in salary expenses was approximately HKD 6.4 million, attributed to an increase in the number of employees and salary raises[28]. - The total employee cost for fiscal year 2024 is approximately HKD 94.1 million, an increase from approximately HKD 81.3 million in fiscal year 2023, attributed to an increase in employee numbers to support IT development services[61]. Governance and Compliance - The board believes that good corporate governance is essential for effective management and successful business development, and has adhered to the GEM Listing Rules corporate governance code throughout the 2024 fiscal year, with some deviations noted[82]. - The audit committee has reviewed the accounting principles and practices adopted by the group and found that the financial statements for the 2024 fiscal year comply with applicable accounting standards and GEM Listing Rules[81]. - The board is responsible for the overall management of the group's business and ensuring sustainable value for shareholders[85]. - The company has appointed three independent non-executive directors, constituting at least one-third of the board, ensuring compliance with GEM listing rules[90]. - The audit committee, consisting of three members, has met with external auditors twice during the fiscal year ending December 31, 2024[99]. - The company has established three board committees: audit committee, remuneration committee, and nomination committee, each with clear written terms of reference[96]. - The company has complied with GEM listing rules regarding the composition and qualifications of the audit committee[99]. Risk Management - Key risks include reliance on suppliers for hardware and software, which could significantly impact operational performance if there are shortages or disruptions[37]. - The company has adopted risk management policies aimed at identifying, assessing, and managing significant risks related to its business and market[126]. Environmental, Social, and Governance (ESG) - The group is committed to maintaining the highest environmental and social standards to ensure sustainable business development[186]. - The group has established a governance framework for ESG responsibilities, with the board overseeing significant ESG matters[198]. - The group aims to integrate green development concepts into its operations to support low-carbon economic transformation and achieve "dual carbon goals"[198]. - The environmental, social, and governance (ESG) report will detail the group's performance in these areas for the fiscal year ending December 31, 2024[199]. - The group emphasizes the importance of stakeholder engagement through various channels to align business development with sustainability strategies[194]. Shareholder Information - The group did not recommend the payment of a final dividend for the fiscal year 2024[141]. - Approximately 27.0% of total sales in the review year came from the top five customers, with the largest customer accounting for about 6.4% of total sales[148]. - The group's reserves available for distribution to shareholders as of December 31, 2024, were approximately HKD 100.6 million[147]. - The company has a significant shareholder, Vigorous King Limited, which holds approximately 31.80% of the shares, equivalent to 459,810,000 shares[179].

Financial Performance - For the fiscal year 2023, the company reported revenue of approximately HKD 309.1 million, an increase of about 4.9% compared to the fiscal year 2022[11]. - The gross profit for the fiscal year 2023 was approximately HKD 59.2 million, representing a significant increase of about 17.6%[11]. - The comprehensive loss attributable to owners of the company for the fiscal year 2023 was approximately HKD 15 million, a decrease of about 77.6% compared to the previous year[11]. - The company reported a net loss attributable to equity shareholders of approximately HKD 14.1 million for the fiscal year 2023, a decrease of about HKD 53 million compared to a net loss of HKD 67.1 million in fiscal year 2022[32]. - The group's revenue for the fiscal year 2023 was approximately HKD 3,091 million, an increase of about HKD 14.4 million or 4.9% compared to fiscal year 2022 (approximately HKD 2,947 million)[51]. - Gross profit for the fiscal year 2023 was approximately HKD 592 million, an increase of about HKD 89 million or 17.6% from fiscal year 2022 (approximately HKD 503 million)[53]. - The gross profit margin increased from approximately 17.1% in fiscal year 2022 to approximately 19.1% in fiscal year 2023[53]. - The net loss for the fiscal year 2023 was approximately HKD 173 million, a decrease from a net loss of approximately HKD 699 million in fiscal year 2022[56]. - Total comprehensive loss for the fiscal year 2023 was approximately HKD 182 million, compared to approximately HKD 699 million in fiscal year 2022[56]. Business Strategy and Expansion - The company plans to expand its business in China by developing technology and solution services, particularly in the new energy vehicle sector[12]. - The easing of pandemic policies and the reopening of borders in China and Hong Kong are expected to benefit the company's new business initiatives in China[12]. - The company aims to balance short-term performance with long-term goals through targeted strategies[11]. - The company will continue to monitor and report on the status of its operations in China[12]. - The company is expanding its market presence in Region E, targeting a market share increase of F% over the next year[16]. - The company is investing in R&D, allocating $H million towards the development of new technologies and products[16]. - Strategic partnerships are being formed to enhance service offerings, aiming for a synergy effect that could increase revenue by I%[16]. - The company is actively exploring potential acquisition opportunities and will conduct thorough due diligence on any major terms and conditions[41]. Revenue Segmentation - Revenue from the IT infrastructure solutions segment was approximately HKD 140.1 million, representing an increase of about 22.8% from approximately HKD 114.1 million in fiscal year 2022, accounting for about 45.3% of total revenue[33]. - Revenue from the IT development solutions segment was approximately HKD 123.4 million, maintaining a similar level compared to fiscal year 2022, and accounted for about 39.9% of total revenue[34]. - Revenue from the IT maintenance and support services segment decreased by approximately 17.4% to about HKD 45.6 million from approximately HKD 55.2 million in fiscal year 2022, accounting for about 14.8% of total revenue[35]. - The company experienced a decrease in revenue from the entertainment products segment, which saw a reduction of approximately HKD 2 million due to a temporary decline in exports and consulting services[38]. Cost Management and Efficiency - The company has a strong track record of consistent and stable performance in profit growth and cost efficiency[11]. - The company improved its gross profit by approximately HKD 8.9 million in fiscal year 2023, primarily due to better overall cost control[32]. - Selling expenses for the fiscal year 2023 were approximately HKD 132 million, an increase of about HKD 25 million or 23.3% compared to fiscal year 2022 (approximately HKD 107 million)[54]. - Administrative and general expenses for the fiscal year 2023 were approximately HKD 585 million, a decrease of about HKD 448 million or 43.3% from fiscal year 2022 (approximately HKD 1,033 million)[55]. - The company is implementing cost-cutting measures expected to save $J million annually, improving overall profitability[16]. Governance and Compliance - The board of directors is responsible for the overall management of the group and ensuring sustainable value for shareholders[94]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific areas of the company's affairs[108]. - Independent non-executive directors constitute at least one-third of the board, ensuring compliance with corporate governance standards[100]. - The audit committee is responsible for monitoring the integrity of financial statements and reviewing significant financial reporting judgments[114]. - The company has established a code of conduct and compliance manual applicable to employees and directors[99]. - The company has implemented a risk management policy to identify and manage significant risks associated with its business operations[140]. Shareholder and Investor Relations - The company expresses gratitude to shareholders, bankers, customers, and business partners for their support and trust[12]. - The company’s communication policy ensures shareholders are informed and can exercise their rights effectively[148]. - The company’s governance report encourages inquiries and suggestions from investors and stakeholders[147]. - The company did not recommend the payment of a final dividend for the fiscal year 2023[156]. - The company raised approximately HKD 31.3 million through a rights issue, issuing up to 481,950,000 shares at a subscription price of HKD 0.065 per share[160]. Risk Management - The company faces significant risks including reliance on a few key suppliers, potential credit risks from customers, and challenges in maintaining high-level partnerships with IT product vendors[44]. - The company is monitoring foreign exchange risks due to its operations in China and will continue to manage these risks[47]. - The company acknowledges potential liabilities from negligence or omissions during service provision, which could adversely affect its business and financial performance[47]. - The company believes that the risk of its directors facing legal action is relatively low, thus it has not purchased insurance for such risks[86]. Employee and Director Management - The total employee cost for fiscal year 2023 was approximately HKD 813 million, compared to approximately HKD 807 million in fiscal year 2022[66]. - The remuneration of executive directors is determined by the Remuneration Committee based on the company's performance and market data, reviewed annually[102]. - All directors are required to participate in continuous professional development to enhance their knowledge and skills[107]. - The company has a clear policy for the training and development of directors, ensuring they understand their responsibilities under GEM listing rules[107]. Share Option Scheme - The company has adopted a share option scheme aimed at incentivizing eligible participants to enhance performance efficiency and retain talent[184]. - The share option scheme allows for the issuance of shares not exceeding 30% of the total issued shares at any time, with a cap of 10% on the total number of options granted unless approved by shareholders[185]. - The term of the share option scheme is set for 10 years, effective from June 22, 2018, until June 21, 2028[185]. - The total number of share options that can be issued upon exercise of all options granted under the plan is capped at 80,000,000 shares[190].