Financial Performance - For the six months ended June 30, 2022, the total revenue of Kinetix Systems Holdings Limited was approximately HKD 141.3 million, an increase of about 25.7% compared to the same period in 2021[9]. - The gross profit for the same period was approximately HKD 23.6 million, representing a 22.4% increase year-over-year[10]. - The company recorded a net loss of approximately HKD 14.8 million for the six months ended June 30, 2022, compared to a net loss of approximately HKD 10.0 million for the same period in 2021[10]. - Total revenue for the six months ended June 30, 2022, reached HKD 141,317,000, a 25.7% increase from HKD 112,385,000 in the same period of 2021[35]. - The company reported a basic and diluted loss per share of HKD 1.42 for the six months ended June 30, 2022, compared to HKD 1.11 for the same period in 2021[13]. - The company reported a pre-tax loss of HKD 18,410,000 for the three months ended June 30, 2022, compared to a profit of HKD 27,702,000 for the same period in 2021[44]. - The company recorded a loss of approximately HKD 14.8 million for the first half of 2022, compared to a loss of HKD 10 million in the same period of 2021, primarily due to increased sales and administrative expenses[88]. Revenue Breakdown - Revenue from IT infrastructure solutions services for the six months ended June 30, 2022, was HKD 47,286,000, up 22.8% from HKD 38,507,000 for the same period in 2021[35]. - Revenue from IT maintenance and support services increased to HKD 32,306,000 for the six months ended June 30, 2022, compared to HKD 16,160,000 in the previous year, marking a growth of 100.5%[35]. - Revenue from the Hong Kong market for the six months ended June 30, 2022, was HKD 138,566,000, an increase of 25% from HKD 110,852,000 in the same period of 2021[32]. - Revenue from external customers for the six months ended June 30, 2022, was HKD 141,317,000, with a breakdown of HKD 47,286,000 from IT solutions, HKD 60,840,000 from IT development services, and HKD 32,306,000 from maintenance and support services[40]. - Revenue from the IT development solutions segment increased by approximately 28.2% from about HKD 47.4 million in the 2021 interim period to about HKD 60.8 million in the 2022 interim period, accounting for approximately 43.0% of total revenue[71]. - The IT maintenance and support services segment generated revenue of approximately HKD 32.3 million, a 100% increase from HKD 16.2 million in the previous year, accounting for about 22.9% of total revenue[76]. Assets and Liabilities - As of June 30, 2022, total assets amounted to approximately HKD 233.9 million, a decrease from HKD 241.7 million as of December 31, 2021[18]. - The company’s non-current assets totaled approximately HKD 80.4 million as of June 30, 2022, compared to HKD 81.5 million at the end of 2021[18]. - Total equity as of June 30, 2022, is HKD 114,823,000, a decrease of 11.4% from HKD 129,603,000 as of December 31, 2021[21]. - Total liabilities increased to HKD 119,049,000 as of June 30, 2022, compared to HKD 112,100,000 as of December 31, 2021, representing a rise of 6.5%[21]. - Trade receivables as of June 30, 2022, amounted to HKD 75.5 million, a decrease from HKD 85.1 million as of December 31, 2021[58]. - Trade payables as of June 30, 2022, were HKD 27.5 million, down from HKD 39.0 million as of December 31, 2021[61]. Cash Flow and Financing - The company reported a net cash outflow from financing activities of HKD 8,828,000 for the six months ended June 30, 2022, compared to an outflow of HKD 6,212,000 in the previous year[24]. - Cash and cash equivalents decreased by HKD 3,208,000 to HKD 27,419,000 as of June 30, 2022, from HKD 25,720,000 as of June 30, 2021[24]. - As of June 30, 2022, the company had cash and cash equivalents of approximately HKD 27.4 million, down from HKD 30 million at the end of 2021, with a debt ratio of 30.2%[89]. - The group incurred sales and administrative expenses increase of approximately HKD 7.9 million, primarily due to increased salary expenses from a rise in the number of sales and general staff[70]. Corporate Governance and Management - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the previous year[52]. - The company has adopted a code of conduct for directors' securities trading, ensuring compliance throughout the reporting period[119]. - The company believes that the risk of legal actions against directors is relatively low due to effective risk management and internal control systems[122]. - The company has complied with the corporate governance code, with a noted deviation regarding the roles of the chairman and CEO being held by the same individual[121]. - The audit committee was established on June 22, 2018, in accordance with GEM listing rules[127]. - The audit committee reviewed the unaudited financial statements for the six months ending June 30, 2022, and found them compliant with applicable accounting standards and regulations[127]. Employee and Compensation - As of June 30, 2022, the total employee cost was approximately HKD 39.6 million, an increase from HKD 29 million in the same period of 2021, reflecting a growth of about 36.2%[94]. - The company had a total of 172 employees as of June 30, 2022, compared to 136 employees as of June 30, 2021, indicating an increase of approximately 26.5%[94]. - Total compensation for key management personnel for the six months ended June 30, 2022, amounted to HKD 1,458,000, down from HKD 2,195,000 in the previous year[48]. Future Outlook - The company plans to continue exploring new business opportunities and enhancing competitiveness, particularly in IT infrastructure and development solutions[81]. - The company anticipates further strengthening its liquidity through cash generated from operations and funds raised from its listing on the GEM[89].

Financial Performance - For the three months ended March 31, 2022, the total revenue of Kinetix Systems Holdings Limited was approximately HKD 64.3 million, an increase of about 8.8% compared to the same period in 2021[7]. - The gross profit for the same period was approximately HKD 9.7 million, a decrease of about 27.8% compared to the previous year[8]. - The company recorded a net loss of approximately HKD 10.1 million for the three months ended March 31, 2022[9]. - The total comprehensive loss for the period amounted to approximately HKD 10.6 million, compared to a loss of HKD 781,000 in the same period last year[14]. - The basic and diluted loss per share for the three months ended March 31, 2022, was HKD 1.02, compared to HKD 0.05 for the same period in 2021[12]. - The group reported a pre-tax loss of HKD 9,844,000 for the three months ended March 31, 2022, compared to a loss of HKD 410,000 for the same period in 2021[46]. - The company's gross profit decreased by approximately 28.1% to about HKD 9.7 million, with a gross margin dropping from approximately 22.8% in 2021 to about 15.1% in 2022[66]. - Administrative expenses increased by approximately 40.4% to about HKD 16 million, primarily due to increased employee costs and additional office rental expenses[68]. Revenue Breakdown - The group's revenue for the three months ended March 31, 2022, was HKD 64,319,000, an increase of 8.4% compared to HKD 59,111,000 for the same period in 2021[23]. - Revenue from IT infrastructure solutions services was HKD 23,372,000, up 34.4% from HKD 17,427,000 in the previous year[24]. - Revenue from IT development solutions services decreased to HKD 28,108,000, down 7.8% from HKD 30,504,000 in the same period last year[24]. - Revenue from the IT infrastructure solutions segment was approximately HKD 23.4 million, accounting for about 36.3% of total revenue, and increased by approximately 34.1% from about HKD 17.4 million in the previous year[58]. - Revenue from the IT development solutions segment decreased by approximately 7.9% to about HKD 28.1 million, representing about 43.7% of total revenue, down from approximately HKD 30.5 million in the previous year[59]. - Revenue from IT maintenance and support services increased by approximately 50.4% to about HKD 11.6 million, accounting for about 18.1% of total revenue, up from approximately HKD 7.7 million in the previous year[61]. - The group reported a total of HKD 1,200,000 in revenue from entertainment products for the three months ended March 31, 2022[27]. Dividend and Shareholder Information - The board of directors did not recommend the payment of a quarterly dividend for the three months ended March 31, 2022[10]. - The group did not recommend any dividend payment for the three months ended March 31, 2022, consistent with the previous year[41]. - Major shareholders included Vigorous King Limited, holding approximately 43.05% of the company's shares[96]. - The board has decided not to declare any dividends for the three months ending March 31, 2022[110]. Employee and Operational Insights - As of March 31, 2022, the company had a total of 180 employees, an increase from 128 employees as of March 31, 2021[76]. - Total employee costs for the quarter were approximately HKD 20.3 million, compared to approximately HKD 13.5 million in the same quarter of 2021, reflecting a year-over-year increase of about 50.37%[76]. - The company did not engage in any significant acquisitions or disposals of subsidiaries or associates during the quarter[75]. Financial Position and Debt - The group had bank borrowings of HKD 10,013,000 as of March 31, 2022, down from HKD 11,717,000 as of December 31, 2021[54]. - The company had cash and cash equivalents of approximately HKD 41.3 million as of March 31, 2022, compared to HKD 30 million as of December 31, 2021[71]. - The company's debt-to-equity ratio was 35.2% as of March 31, 2022, up from 28.0% as of December 31, 2021[71]. - The company had a total of HKD 31 million in secured bank financing as of March 31, 2022, unchanged from December 31, 2021[84]. Strategic Plans and Market Response - The company plans to expand its customer base and improve cost control while actively adjusting its business strategies in response to market changes and the ongoing impact of COVID-19[63]. - The timeline for utilizing the remaining net proceeds is expected to extend to December 31, 2022, due to macroeconomic conditions and the impact of the Omicron COVID-19 variant[107]. Governance and Compliance - The company has adopted the corporate governance code as per GEM listing rules and believes it has complied with the code, except for the dual role of the chairman and CEO[100]. - As of March 31, 2022, there were no known interests or businesses competing with the company's operations among its directors or major shareholders[103]. - The company has not made any insurance arrangements for potential legal actions against its directors, citing low risk due to effective risk management systems[101]. Investments and Future Plans - The company has fully utilized funds for developing IT solutions tailored for the financial and insurance industries, expanding ERP systems, and enhancing service quality through a technical support center[106]. - The company has allocated HKD 9.15 million for providing cloud computing and IoT products, with HKD 9.08 million already utilized[104]. - The company plans to enhance its professional team's expertise with an allocation of HKD 1.75 million, which has been fully utilized[104]. Risk Management - The company did not adopt any hedging strategies for foreign currency risks during the quarter, which primarily stemmed from transactions in USD and EUR[85]. - There were no significant foreign currency risks reported for the quarter, as most transactions were conducted in HKD and RMB[85]. Other Information - The company did not purchase, sell, or redeem any of its listed securities during the quarter[86]. - The company has not disclosed any interests or short positions that require reporting under the Securities and Futures Ordinance as of March 31, 2022[99]. - No significant events occurred after the reporting period, aside from those disclosed in other parts of the report[112].

Financial Performance - For the fiscal year 2021, the company reported revenue of approximately HKD 254.1 million, a decrease of about 10.0% compared to the fiscal year 2020[11]. - The gross profit for the fiscal year 2021 was approximately HKD 49.7 million, showing a slight increase of about 4.4%[11]. - The company recorded a consolidated net loss attributable to owners of approximately HKD 20.3 million for the fiscal year 2021[11]. - The company reported a significant increase in user data, with a year-over-year growth of 25% in active users[37]. - Revenue for the last quarter reached $150 million, representing a 15% increase compared to the previous quarter[37]. - The company has outlined a future outlook with a projected revenue growth of 20% for the next fiscal year[37]. - New product launches are expected to contribute an additional $30 million in revenue over the next two quarters[37]. - The company is investing in new technology development, allocating $5 million towards AI and machine learning initiatives[37]. - The company has reported a 12% increase in gross margin, attributed to cost optimization measures[37]. - The company recorded a loss attributable to equity shareholders of approximately HKD 20.3 million for the fiscal year 2021, compared to a profit of approximately HKD 10.3 million in fiscal year 2020, primarily due to a decrease in other income and government subsidies by approximately HKD 6.5 million and an increase in employee costs by approximately HKD 13.1 million[39]. Business Strategy and Development - The company aims to balance short-term performance with long-term goals through clear strategic implementation[11]. - The group has established a headquarters in China in 2021 to diversify its business and seek new opportunities[12]. - The group has acquired exclusive agency rights for LED products, aiming to diversify its business and create potential synergies with existing IT consulting services[12]. - The integration of LED products with the group's current IT consulting services is expected to unlock significant potential for revenue and profit growth in the future[12]. - The group plans to accelerate the integration of IT infrastructure and development solutions, participating in more smart city infrastructure projects in China and overseas[12]. - The group aims to enter the smart mobility sector through the development of Mobility as a Service (MaaS)[12]. - The company plans to continue its business strategy outlined in the prospectus, including the development of IT solutions tailored for the financial and insurance industries and expanding the application of ERP systems in IT development solutions[45]. Market and Economic Conditions - The ongoing COVID-19 pandemic has significantly impacted global business activities, leading to project suspensions and reduced revenue levels[11]. - The group anticipates that global and Hong Kong economic uncertainties, along with the COVID-19 pandemic, may adversely affect business and overall short-term performance[12]. - The company is focused on achieving sales and profit growth amidst the uncertainties caused by the pandemic[11]. - The company anticipates challenges in the business environment due to global COVID-19 impacts, leading to expected order reductions and pressure on profit growth in the short term[61]. Operational Performance - Revenue from the IT infrastructure solutions segment was approximately HKD 104.1 million, accounting for about 41.0% of total revenue for fiscal year 2021, a decrease of approximately 21.9% from HKD 133.3 million in fiscal year 2020[40]. - Revenue from the IT development solutions segment increased by approximately 42.1% to about HKD 106.0 million, representing approximately 41.7% of total revenue for fiscal year 2021, driven by a significant increase in the number of projects undertaken[41]. - Revenue from IT maintenance and support services decreased by approximately 8.3% to about HKD 25.4 million, accounting for approximately 10.0% of total revenue for fiscal year 2021, due to a reduction in the average project size[42]. - Revenue from the entertainment products segment decreased significantly by approximately 60.3% to about HKD 18.6 million, representing approximately 7.3% of total revenue for fiscal year 2021, primarily due to a decrease in total orders and average order value[44]. Governance and Compliance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15 and believes it has complied during the fiscal year 2021, with some deviations noted[90]. - The board believes that the risk of directors facing lawsuits is relatively low due to effective risk management and internal control systems[91]. - The audit committee reviewed the accounting principles and practices adopted by the group and found that the financial statements were prepared in accordance with applicable accounting standards[95]. - The board is responsible for the overall management of the group's business and ensuring sustainable value for shareholders[100]. - The board regularly reviews the compliance with corporate governance codes and policies, ensuring high standards of governance are maintained[102]. - The company has established three board committees: audit committee, remuneration committee, and nomination committee, each with clear written terms of reference[112]. Risk Management - The company is committed to ongoing risk management practices, with frameworks evaluated at least annually to align with business objectives[57]. - The company has implemented a comprehensive risk management policy to identify, assess, and manage significant risks related to its business operations[150]. - The board and senior management review the effectiveness of the internal control systems annually, providing reasonable assurance regarding the company's operations[150]. Shareholder Information - The board of directors has approved a dividend payout of $0.50 per share, reflecting a commitment to returning value to shareholders[37]. - The company did not recommend the payment of a final dividend for the fiscal year 2021[165]. - The company's reserves available for distribution to shareholders were approximately HKD 78.8 million as of December 31, 2021[171]. - Approximately 25.9% of the total sales for the fiscal year came from the top five customers, with the largest customer accounting for about 6.4%[172]. Employee and Management - The total employee cost for fiscal year 2021 was approximately HKD 70.4 million, compared to approximately HKD 51.3 million in fiscal year 2020, reflecting an increase in employee numbers due to business development[77]. - The company may face difficulties in retaining skilled personnel, which could significantly hinder business operations and financial performance[56]. - The company has committed to continuous professional development for all directors to enhance their knowledge and skills[111]. Share Options and Equity - The total number of share options granted under the share option scheme is capped at 80,000,000 shares, with a maximum of 1% of issued shares exercisable within any twelve-month period[196]. - As of December 31, 2021, there are 66,500,000 unexercised share options remaining from the total granted[196]. - The share option scheme was adopted for a period of 10 years, effective from June 22, 2018, until June 21, 2028[193]. - The company aims to incentivize eligible participants through the share option scheme to enhance performance efficiency and retain talent[189].

kinetix Kinetix Systems Holdings Limited 捷冠控股有限公司 (於開臺群島註冊成立的有限公司) 股份代號 : 8606 U 2021 第三季度報告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上 市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並 應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證券 承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示概不會就因本報告全部或任何部分內容而產生或 因倚賴該等內容而引起之任何損失承擔任何責任。 本報告的資料乃遵照聯交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有 關倢冠控股有限公司（「本公司」，連同其附屬公司統稱「本集團」或「我們」）的資料； 本公司董事（「董事」或各自為一名「董事」）願就本報告的資料共同及個別地承擔全部 ...

Financial Performance - Kinetix Systems Holdings Limited reported a significant increase in revenue, achieving a total of HKD 100 million, representing a growth of 25% year-over-year[9]. - For the six months ended June 30, 2021, the total revenue of the group was approximately HKD 112.4 million, a decrease of about 29.4% compared to the same period in 2020[25]. - The company reported a gross profit margin of 40%, indicating strong operational efficiency and cost management[9]. - For the same period, the gross profit was approximately HKD 19.3 million, down approximately 19.2% year-on-year[26]. - The group recorded a net loss of approximately HKD 10 million for the six months ended June 30, 2021, compared to a net profit of approximately HKD 1.4 million for the same period in 2020[26]. - The company reported a loss before tax of HKD 9,772,000 for the six months ended June 30, 2021, compared to a profit of HKD 2,334,000 in the same period of 2020[29]. - The company reported a loss per share of HKD 1.11 for the six months ended June 30, 2021, compared to earnings per share of HKD 0.30 in the same period of 2020[29]. - The company reported a pre-tax profit of HKD 1,125,000 for the six months ended June 30, 2021, compared to HKD 2,024,000 for the same period in 2020[64]. - The company recorded a loss attributable to owners of approximately HKD 9,361,000 for the six months ended June 30, 2021, compared to a profit of HKD 2,409,000 for the same period in 2020[69]. Revenue Breakdown - Revenue from IT infrastructure solutions services was HKD 38,507,000 for the six months ended June 30, 2021, compared to HKD 103,978,000 for the same period in 2020, reflecting a decline of 63.0%[50]. - Revenue from IT development solutions services increased significantly to HKD 47,441,000 for the six months ended June 30, 2021, up from HKD 26,888,000 in the same period of 2020, representing an increase of 76.5%[50]. - Revenue from IT maintenance and support services rose to HKD 16,160,000 for the six months ended June 30, 2021, compared to HKD 6,506,000 for the same period in 2020, marking an increase of 147.5%[50]. - Revenue from the sale of entertainment products was HKD 10,277,000 for the six months ended June 30, 2021, down from HKD 21,838,000 in the same period of 2020, a decrease of 53.0%[50]. - Revenue from Hong Kong for the six months ended June 30, 2021, was HKD 110,852,000, a decrease of 29.0% from HKD 155,889,000 in the same period of 2020[47]. - Revenue from Macau for the six months ended June 30, 2021, was HKD 1,533,000, down from HKD 3,321,000 in the same period of 2020, a decline of 53.8%[47]. Strategic Initiatives - Kinetix has outlined its future outlook, projecting a revenue growth of 15% to 20% for the next fiscal year, driven by new product launches and market expansion strategies[9]. - The company is investing in research and development, allocating approximately HKD 10 million towards the development of new technologies and products[9]. - Kinetix plans to enter new markets in Southeast Asia, aiming for a market share increase of 10% within the next two years[9]. - The company has completed a strategic acquisition of a smaller tech firm for HKD 20 million, which is expected to enhance its service offerings and operational capabilities[9]. - The company continues to focus on expanding its IT solutions and services, aiming to enhance its market presence and customer base[45]. Financial Position - Kinetix's total assets have increased to HKD 150 million, reflecting a solid financial position and growth potential[9]. - The total assets as of June 30, 2021, amounted to HKD 232,562,000, an increase from HKD 186,828,000 as of December 31, 2020[30]. - The company's cash and cash equivalents decreased to HKD 25,720,000 from HKD 35,793,000 at the end of 2020[30]. - The total equity attributable to the owners of the company increased to HKD 137,757,000 as of June 30, 2021, compared to HKD 99,118,000 at the end of 2020[31]. - The company had bank borrowings of HKD 4,058,000 as of June 30, 2021, down from HKD 6,778,000 as of December 31, 2020[81]. Operational Efficiency - The company has been focusing on providing IT infrastructure solutions and development services, indicating a strategic emphasis on technology services[38]. - The company’s non-current assets increased significantly, with intangible assets reported at HKD 46,667,000 as of June 30, 2021, reflecting ongoing investments in technology[30]. - Administrative expenses increased by approximately 42.4% from about HKD 17.1 million in 2020 to about HKD 24.3 million in 2021, primarily due to new office setups in China and increased employee costs[96]. Governance and Compliance - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the standards set forth in the relevant listing rules[120]. - The company has complied with the corporate governance code since its listing date, except for the noted deviations[126]. - The company has a total of three independent non-executive directors, meeting the requirement of at least one-third of the board[130]. - The audit committee reviewed the group's accounting principles and internal controls, confirming that the financial statements were prepared in accordance with applicable accounting standards[144]. Future Outlook - The management team emphasized the importance of sustainability in their future projects, aiming to reduce carbon emissions by 20% over the next five years[9]. - The company plans to strengthen its business in Shanghai and integrate its IT infrastructure and development solutions services to participate in and advance China's economic development[92].

Financial Performance - For the three months ended March 31, 2021, the total revenue of Kinetix Systems Holdings Limited was approximately HKD 59.11 million, a decrease of about 29.4% compared to the same period in 2020[9]. - The gross profit for the same period was approximately HKD 13.49 million, an increase of about 27.4% year-over-year[10]. - The company recorded a net loss of approximately HKD 0.78 million for the three months ended March 31, 2021, compared to a net loss of HKD 1.02 million in the same period of 2020[10]. - The basic and diluted loss per share for the period was HKD 0.05, compared to earnings of HKD 0.01 per share in the same period of 2020[12]. - The company’s total comprehensive loss for the period was HKD 0.78 million, compared to HKD 1.02 million in the same period of 2020[12]. - The group recorded a loss of approximately HKD 0.8 million in the 2021 quarter, an improvement from a loss of approximately HKD 1.0 million in the 2020 quarter[66]. Revenue Breakdown - Revenue from IT infrastructure solutions was HKD 30,504,000, while IT development solutions generated HKD 17,427,000 for the three months ended March 31, 2021[25]. - Revenue from IT infrastructure solutions decreased by approximately 70.5% to about HKD 17,400,000, accounting for approximately 29.5% of total revenue in the 2021 quarter[52]. - Revenue from IT development solutions increased by approximately 146.0% to about HKD 30,500,000, representing approximately 51.6% of total revenue in the 2021 quarter[53]. - Revenue from IT maintenance and support services rose by approximately 120.0% to about HKD 7,700,000, making up approximately 13.1% of total revenue in the 2021 quarter[57]. - Revenue from the e-commerce business involving entertainment products decreased by approximately 61.8% to about HKD 3,400,000, which accounted for approximately 5.8% of total revenue in the 2021 quarter[58]. Expenses and Costs - The company’s administrative and general expenses for the period were approximately HKD 11.43 million, compared to HKD 8.92 million in the same period of 2020[12]. - The cost of IT solution services was HKD 17,039,000, an increase from HKD 9,701,000 in the same period last year, indicating a significant rise in operational costs[34]. - Selling expenses for the 2021 quarter were approximately HKD 2.9 million, an increase of about HKD 1.4 million or 93.3% compared to the 2020 quarter (2020: HKD 1.5 million)[63]. - Administrative expenses rose to approximately HKD 11.4 million in the 2021 quarter, an increase of about HKD 2.5 million or 28.1% from the 2020 quarter (2020: HKD 8.9 million)[64]. Dividends and Equity - The board of directors did not recommend the payment of an interim dividend for the three months ended March 31, 2021[10]. - The company did not recommend the payment of dividends for the quarter ended March 31, 2021, consistent with the previous year[40]. - As of March 31, 2021, the total equity attributable to owners of the company was approximately HKD 108.86 million[13]. Cash and Borrowings - As of March 31, 2021, the company had bank borrowings of HKD 4,326,000, down from HKD 6,778,000 as of December 31, 2020[43]. - As of March 31, 2021, the group had cash and cash equivalents of approximately HKD 56.8 million, up from approximately HKD 35.8 million as of December 31, 2020[67]. - The group's debt-to-equity ratio as of March 31, 2021, was 65.6%, significantly higher than 19.3% as of December 31, 2020[67]. Corporate Governance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15[89]. - The chairman and CEO roles are held by the same individual, which deviates from the corporate governance code[89]. - The board believes that the risk of legal actions against directors is relatively low due to effective risk management systems[91]. Future Plans and Challenges - The company plans to review its accounting policies in light of new Hong Kong Financial Reporting Standards that have come into effect during the current accounting period[17]. - The company plans to integrate specific IT solutions with IoT and cloud computing technologies to participate in smart city projects domestically and internationally[59]. - The company experienced challenges due to the COVID-19 pandemic, impacting order volume and pricing strategies, but views these challenges as opportunities for future business development[59]. - The company plans to continue evaluating the impact of COVID-19 on operations and financial performance[97].

Financial Performance - For the fiscal year 2020, Kinetix Systems Holdings Limited reported revenue of approximately HKD 282.4 million, an increase of about 31.0% compared to the fiscal year 2019[13]. - The gross profit for the fiscal year 2020 was approximately HKD 47.6 million, reflecting a growth of about 27.6% year-over-year[13]. - The net profit attributable to the owners of the company for the fiscal year 2020 was approximately HKD 10.3 million[13]. - The company recorded a profit attributable to equity shareholders of approximately HKD 10.3 million for the fiscal year 2020, compared to HKD 2.2 million in fiscal year 2019, representing a significant increase[36]. - Revenue from the IT infrastructure solutions segment was approximately HKD 133.3 million, accounting for about 47.2% of total revenue for fiscal year 2020, an increase of approximately 7.9% from HKD 123.5 million in fiscal year 2019[37]. - Revenue from the IT development solutions segment was approximately HKD 74.6 million, representing about 26.4% of total revenue for fiscal year 2020, a substantial increase of approximately 39.4% from HKD 53.5 million in fiscal year 2019[38]. - Revenue from the IT maintenance and support services segment decreased to approximately HKD 27.7 million, accounting for about 9.8% of total revenue for fiscal year 2020, down approximately 3.1% from HKD 28.6 million in fiscal year 2019[39]. - Revenue from the e-commerce business involving entertainment products surged to approximately HKD 46.9 million, representing about 16.6% of total revenue for fiscal year 2020, a dramatic increase of approximately 369.0% from HKD 10 million in fiscal year 2019[40]. - The group's revenue for the fiscal year 2020 was approximately HKD 2,824 million, an increase of about HKD 668 million or 31.0% compared to fiscal year 2019 (approximately HKD 2,156 million)[64]. - Gross profit for the fiscal year 2020 was approximately HKD 476 million, an increase of about HKD 103 million or 27.6% compared to fiscal year 2019 (approximately HKD 373 million)[65]. Business Strategy and Development - The company anticipates that global and local economic uncertainties, along with the COVID-19 pandemic, may adversely affect its business and overall short-term performance[14]. - The company aims to strategically develop its business to mitigate these impacts and continue seeking new opportunities for diversification[14]. - The company plans to accelerate the integration of IT infrastructure and development solutions, participating in more smart city infrastructure projects in China and overseas[14]. - The company intends to enter the smart mobility sector through the development of Mobility as a Service (MaaS) solutions[14]. - The company plans to develop IT solutions tailored for the financial and insurance industries as part of its ongoing business strategy[41]. - The company aims to expand the application of Enterprise Resource Planning (ERP) systems within its IT development solutions services[41]. - The company is focused on providing cloud computing and Internet of Things (IoT) products as part of its future strategy[41]. - The company plans to develop a technical support center to improve service quality[41]. Financial Management and Capital Allocation - The actual net proceeds from the IPO amounted to approximately HKD 34.10 million, with HKD 14.43 million utilized by December 31, 2020[43]. - The company allocated HKD 3.56 million for developing IT solutions tailored for the financial and insurance industries, which was fully utilized by the end of 2020[43]. - HKD 5.50 million was designated for providing cloud computing and IoT products, with only HKD 2.34 million utilized by December 31, 2020[43]. - The company plans to utilize the remaining funds by December 31, 2021, with HKD 6.81 million expected for cloud computing and IoT products[43]. - The expansion of the ERP system in IT development solutions was allocated HKD 1.17 million, with HKD 0.57 million utilized by the end of 2020[43]. - Marketing efforts received HKD 2.34 million, but only HKD 0.12 million was utilized by December 31, 2020, indicating a delay in marketing activities due to COVID-19[46]. - The company faced delays in the application of funds due to macroeconomic conditions and uncertainties from the COVID-19 pandemic[46]. - The group plans to utilize its capital for operational and expansion plans as outlined in the prospectus[73]. Corporate Governance - The board believes that the company has complied with the corporate governance code throughout the 2020 fiscal year, with some deviations noted[89]. - The company has adopted and complied with the corporate governance code as per GEM Listing Rules Appendix 15, with the board believing it has adhered to the code during the 2020 financial year, except for certain deviations noted[101]. - The board is responsible for the overall management of the group's business and ensuring long-term success while delivering sustainable value to shareholders[103]. - The company has appointed three independent non-executive directors, which constitutes at least one-third of the board members, although the number fell below the required amount after one resignation[106]. - The board will continue to review corporate governance practices to enhance governance standards and comply with increasingly stringent regulatory requirements[102]. - The Audit Committee reviewed the Group's financial statements for the year ended December 31, 2020, and confirmed compliance with applicable accounting standards and GEM listing rules[117]. - The Audit Committee held five meetings during the year, in addition to two meetings with external auditors[116]. - The Remuneration Committee recommended compensation policies for all directors and senior management, including benefits and pension rights[124]. - The Remuneration Committee reviewed and approved compensation for individual executive directors and senior management, ensuring alignment with contractual terms[124]. - The Audit Committee monitored the effectiveness of the Group's risk management and internal control systems, including tax strategies and management structure[121]. - The Audit Committee recommended the reappointment of external auditors, DTT, and approved their engagement terms[121]. - The Group's governance policies and compliance with legal regulations were reviewed by the Audit Committee, with recommendations made to the Board[118]. - The Board established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with clear written terms of reference[113]. Risk Management - The group has established risk management policies aimed at identifying, assessing, and managing significant risks related to its business operations[148]. - The company relies on a limited number of suppliers for hardware and software, which poses a risk to operational performance[48]. - The company anticipates challenges in maintaining high-level partnerships with IT product vendors and distributors[51]. - The group will continue to conduct credit assessments and financial evaluations of its clients to mitigate credit risk[74]. Shareholder Information - The group has reserves available for distribution to shareholders amounting to approximately HKD 37.9 million as of December 31, 2020[166]. - The group did not recommend the payment of a final dividend for the fiscal year 2020[159]. - The company has adopted a shareholder communication policy to ensure shareholders are informed about the company and can exercise their rights[149]. Employee and Operational Data - The total employee count increased to 140 as of December 31, 2020, up from 116 in 2019, with total employee costs amounting to approximately HKD 51.3 million in 2020 compared to HKD 38 million in 2019[79]. - The company made charitable donations totaling approximately HKD 1,000 in the 2020 fiscal year, a decrease from approximately HKD 10,000 in 2019[84]. - As of December 31, 2020, the company had capital commitments related to equipment amounting to approximately HKD 300,000, down from HKD 1.6 million in 2019[86]. - The company did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the 2020 fiscal year[86]. Share Option Scheme - The company has not issued, exercised, or canceled any share options under its share option scheme since its adoption on June 22, 2018[81]. - The share option scheme allows for a maximum of 80,000,000 shares to be issued upon exercise, which represents 10% of the shares already issued as of the report date[187]. - The exercise price for each option granted will be determined by the board but must be at least the higher of the closing price on the grant date or the average closing price over the five trading days preceding the grant date[187]. - The company has not granted, exercised, or canceled any options under the share option scheme since its adoption date until December 31, 2020[189]. Ownership Structure - The company is listed on the stock exchange since July 16, 2018, with major shareholder Vigorous King Limited holding approximately 51.88% of the shares, equivalent to 415,000,000 shares[190][195]. - Mr. Yu Pak Lun is the sole owner of Vigorous King Limited, which directly influences the company's ownership structure[192][196]. - Other significant shareholders include Ms. Leung Wai Man and Mr. Leung Kam Hon, each holding 10% of the shares, totaling 80,000,000 shares[195]. - Dalian Xuan Shuo Technology Co., Ltd. holds 20% of the shares, equivalent to 160,000,000 shares, which are convertible bonds that can be converted at an initial conversion price of HKD 0.3[195][199]. - The company has not disclosed any additional significant shareholdings or interests from directors or key executives beyond those mentioned[195][199].

Financial Performance - Total revenue for the nine months ended September 30, 2020, was approximately HKD 222.7 million, an increase of about 80.0% compared to the same period in 2019[6] - Gross profit for the nine months ended September 30, 2020, was approximately HKD 36.9 million, representing a 39.8% increase year-over-year[7] - Net profit for the nine months ended September 30, 2020, was approximately HKD 4.9 million, an increase of 88.5% compared to the same period in 2019[7] - Basic and diluted earnings per share for the nine months ended September 30, 2020, was HKD 0.80, compared to HKD 0.34 for the same period in 2019[10] - Total comprehensive income for the nine months ended September 30, 2020, was HKD 4.9 million, compared to HKD 2.6 million for the same period in 2019[10] - The company recorded a pre-tax profit of approximately HKD 6.7 million for the nine months ended September 30, 2020, compared to a pre-tax loss of HKD 3.8 million for the same period in 2019[10] - The company reported a total of HKD 63,485,000 in revenue for the three months ended September 30, 2020, compared to HKD 33,779,000 for the same period in 2019, marking an increase of 88.0%[20] - The company recorded a profit attributable to shareholders of approximately HKD 6.4 million for the nine months ended September 30, 2020, compared to HKD 2.7 million for the same period in 2019, representing an increase of approximately 137%[49] Revenue Breakdown - Revenue from IT infrastructure solutions services was HKD 129,718,000 for the nine months ended September 30, 2020, up 94.3% from HKD 66,727,000 in the same period of 2019[23] - Revenue from entertainment product sales reached HKD 35,811,000 for the nine months ended September 30, 2020, with no revenue reported in the same period of 2019[23] - Revenue from IT maintenance and support services decreased to HKD 10,463,000 for the nine months ended September 30, 2020, down 48.8% from HKD 20,454,000 in the same period of 2019[23] - Revenue from Hong Kong accounted for HKD 218,370,000, which is 97.0% of total revenue for the nine months ended September 30, 2020[20] - The company’s revenue from Macau was HKD 4,325,000 for the nine months ended September 30, 2020, down 63.7% from HKD 11,905,000 in the same period of 2019[20] - The company’s revenue from Singapore was nil for the nine months ended September 30, 2020, compared to HKD 1,021,000 in the same period of 2019[20] - The IT infrastructure solutions segment generated revenue of approximately HKD 129.7 million, accounting for about 58.2% of total revenue, with a 94.5% increase from approximately HKD 66.7 million in the previous year[50] - The IT development solutions segment's revenue was approximately HKD 46.7 million, representing about 21.0% of total revenue, with a 27.9% increase from approximately HKD 36.5 million in the previous year[52] - The IT maintenance and support services segment generated revenue of approximately HKD 10.5 million, a decrease of about 48.8% from approximately HKD 20.5 million in the previous year[53] - The e-commerce business for entertainment products generated approximately HKD 35.8 million in revenue, representing about 16.1% of total revenue, as this was a new revenue stream established in the fourth quarter of 2019[54] Expenses and Costs - The total sales cost for the nine months ended September 30, 2020, was approximately HKD 185.8 million, compared to HKD 123.7 million for the same period in 2019[10] - The cost of IT solutions services for the nine months ended September 30, 2020, was HKD 29,060,000, an increase from HKD 27,649,000 in the same period of 2019[31] - Administrative expenses increased by approximately HKD 7.6 million or 39.6% to about HKD 26.8 million, primarily due to an increase in employee costs[61] - The company incurred a total of HKD 118,823,000 in software and hardware costs for the nine months ended September 30, 2020, compared to HKD 54,862,000 for the same period in 2019, indicating a substantial increase in operational expenses[31] Employment and Management - The total remuneration for key management personnel was HKD 3,154,000 for the nine months ended September 30, 2020, compared to HKD 2,883,000 for the same period in 2019, reflecting a rise of 9.4%[34] - As of September 30, 2020, the company had a total of 133 employees, an increase from 89 employees in the same period last year[93] - Total employee costs, including director remuneration, amounted to approximately HKD 40.5 million for the quarter, compared to approximately HKD 27.1 million in the previous year[93] Dividends and Equity - The board of directors did not recommend the payment of a quarterly dividend for the nine months ended September 30, 2020[8] - The company did not declare any dividends for the nine months ended September 30, 2020, consistent with the previous year[38] - The total equity as of September 30, 2020, was approximately HKD 93.2 million, an increase from HKD 89.3 million as of September 30, 2019[12] - The company's debt-to-equity ratio as of September 30, 2020, was 9.3%, compared to zero as of December 31, 2019[64] - The major shareholder, Vigorous King Limited, holds approximately 75% of the company's shares, which is controlled by Mr. Yu Pak Lun[82][83] Government Support and COVID-19 Impact - The company received government subsidies from Hong Kong and Macau to support employment during COVID-19, committing not to lay off employees during the subsidy period[29] - The company has committed to maintaining employment levels in its Macau subsidiary for six months following the receipt of subsidies from the epidemic prevention fund[29] - The company anticipates ongoing challenges in the global business environment due to COVID-19, which may impact short-term business performance[56] - The company is continuously evaluating the impact of the COVID-19 outbreak on its operations and financial performance[80] IPO and Future Plans - The net proceeds from the IPO amounted to approximately HKD 34.1 million, with HKD 10.07 million utilized as of September 30, 2020[77] - The company plans to use the funds raised from the IPO for operational and expansion plans as outlined in the prospectus[64] - The timeline for the use of proceeds has generally been delayed due to macroeconomic conditions and the impact of COVID-19[79] Miscellaneous - The company has not engaged in any hedging strategies for foreign currency risks during the 2020 quarter[68] - The company has not purchased, sold, or redeemed any of its listed securities during the 2020 quarter[69] - There were no major acquisitions or disposals of subsidiaries or associated companies during the 2020 quarter[92] - There were no significant events after the reporting period other than those disclosed in the report[101]

Financial Performance - For the six months ended June 30, 2020, the total revenue of Kinetix Systems Holdings Limited was approximately HKD 159.21 million, an increase of about 77.1% compared to the same period in 2019[6]. - The gross profit for the same period was approximately HKD 23.95 million, representing an increase of about 8.1% year-on-year[7]. - The net profit recorded for the six months ended June 30, 2020, was approximately HKD 1.4 million, a decrease of about 75.4% compared to the previous year[7]. - For the six months ended June 30, 2020, total revenue reached HKD 159,210 thousand, a significant increase of 77% compared to HKD 89,897 thousand for the same period in 2019[35]. - The company reported a net profit of HKD 5,722 thousand for the period, compared to a loss of HKD 120 thousand previously[21]. - The company reported a profit attributable to owners of HKD 2,409,000 for the six months ended June 30, 2020, down from HKD 5,722,000 in the same period of 2019, indicating a decrease of approximately 57.9%[53]. - The company recorded a profit of approximately HKD 1.4 million for the six months ended June 30, 2020, a decrease of about 75.9% compared to HKD 5.7 million for the same period in 2019[72]. Revenue Breakdown - The revenue from IT infrastructure solutions service was HKD 103,978 thousand, up from HKD 51,275 thousand, reflecting a growth of 103% year-over-year[35]. - The company’s revenue from IT development solutions service was HKD 26,888 thousand, an increase from HKD 24,685 thousand year-over-year[35]. - The revenue from entertainment product trading was HKD 21,838 thousand, compared to no revenue in the same period last year[35]. - The IT infrastructure solutions segment generated revenue of approximately HKD 104 million, accounting for about 65.3% of total revenue, with a 102.7% increase from approximately HKD 51.3 million in 2019[73]. - The IT development solutions segment's revenue increased by approximately 8.9% to about HKD 26.9 million, representing 16.9% of total revenue[74]. - The IT maintenance and support services segment saw a significant decline in revenue, dropping approximately 53.2% to about HKD 6.5 million, which accounted for 4.1% of total revenue[75]. - The e-commerce business for entertainment products generated approximately HKD 21.8 million in revenue, a significant increase from zero in the previous year, representing 13.7% of total revenue[77]. Assets and Liabilities - As of June 30, 2020, total assets amounted to HKD 220.24 million, compared to HKD 175.13 million as of December 31, 2019[14]. - The total liabilities as of June 30, 2020, were HKD 130.54 million, compared to HKD 86.86 million at the end of 2019[16]. - The total equity attributable to the owners of the company was HKD 91.21 million, an increase from HKD 88.80 million at the end of 2019[14]. - Trade receivables as of June 30, 2020, amounted to HKD 57,466,000, an increase from HKD 45,447,000 as of December 31, 2019, reflecting a growth of approximately 26.5%[56]. - The expected credit loss provision for trade receivables increased to HKD 9,374,000 as of June 30, 2020, compared to HKD 8,504,000 at the end of 2019, marking an increase of approximately 10.2%[59]. - The total trade and other payables as of June 30, 2020, were HKD 38,988,000, compared to HKD 17,973,000 at the end of 2019, indicating an increase of approximately 116.5%[61]. Cash Flow and Financial Position - The company’s cash and cash equivalents increased to HKD 193.69 million as of June 30, 2020, from HKD 167.57 million at the end of 2019[14]. - Cash and cash equivalents at the end of the period were HKD 60,411 thousand, down from HKD 73,382 thousand at the end of the previous period[24]. - Operating cash flow for the six months ended June 30, 2020, was a net outflow of HKD 20,146 thousand, compared to an inflow of HKD 10,007 thousand in the same period of 2019[23]. - As of June 30, 2020, the company had bank borrowings of HKD 5,124,000 and invoice financing of HKD 16,869,000, compared to zero borrowings at the end of 2019[68]. Corporate Governance and Management - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2020[8]. - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the standards set forth in the listing rules[106]. - The board believes that Mr. Yu's dual role as chairman and CEO is in the best interest of the group, despite a deviation from corporate governance codes[107]. - The company has established an audit committee to review accounting principles and internal controls[116]. - The company has engaged a compliance advisor, Cinda International Capital Limited, with no interests in the company's securities[112]. Government Support and Employment - The company received government subsidies from the Hong Kong Employment Support Scheme and the Macau Epidemic Fund, aimed at maintaining employment during COVID-19[42]. - The company committed to not laying off employees during the subsidy period as a condition of receiving government support[42]. Future Outlook and Challenges - The company anticipates challenges in the global business environment, potentially impacting operations and profitability due to COVID-19[78]. - The group had no pledged assets other than a corporate guarantee of HKD 31,000,000 (including interest and other fees) related to bank financing as of June 30, 2020[94]. - There were no significant events after the reporting period[119].

Financial Performance - For the three months ended March 31, 2020, the total revenue of Kinetix Systems Holdings Limited was approximately HKD 83.68 million, an increase of about 62% compared to the same period in 2019[8]. - The gross profit for the same period was approximately HKD 10.65 million, a decrease of about 6.5% compared to the previous year[9]. - The company recorded a net loss of approximately HKD 1.00 million for the three months ended March 31, 2020[10]. - The basic and diluted earnings per share for the period were HKD 0.01, compared to HKD 0.47 for the same period in 2019[13]. - The total comprehensive loss for the period was HKD 1.02 million, compared to a total comprehensive income of HKD 3.88 million in the previous year[13]. - The company's total revenue for the 2020 quarter was approximately HKD 83.7 million, an increase of about HKD 32 million or 61.9% compared to the 2019 quarter[49]. - The company recorded a loss of approximately HKD 1 million in the 2020 quarter, compared to a profit of approximately HKD 3.9 million in the 2019 quarter[54]. Revenue Breakdown - Revenue from IT infrastructure solutions services was HKD 58,880,000, up 134.0% from HKD 25,094,000 in the previous year[25]. - Revenue from the IT infrastructure solutions segment was approximately HKD 58.9 million, accounting for about 70.4% of total revenue, representing a 134.7% increase from approximately HKD 25.1 million in the 2019 quarter[41]. - Revenue from the IT development solutions segment decreased by approximately 35.1% to about HKD 12.4 million, down from approximately HKD 19.1 million in the 2019 quarter[42]. - Revenue from the IT maintenance and support services segment decreased by approximately 53.3% to about HKD 3.5 million, down from approximately HKD 7.5 million in the 2019 quarter[45]. - The revenue from the sale of entertainment products was HKD 8,897,000, which was not reported in the previous year[25]. - The entertainment products trading segment generated approximately HKD 8.9 million in revenue, marking a significant increase from zero in the 2019 quarter[46]. - The company’s total income from Macau was HKD 2,214,000, down 40.0% from HKD 3,685,000 in the previous year[23]. Expenses and Financial Position - Administrative and general expenses increased by approximately HKD 3,400,000, primarily due to higher employee salaries[40]. - Administrative expenses increased by approximately 64.8% to about HKD 8.9 million, up from approximately HKD 5.4 million in the 2019 quarter, primarily due to increased employee costs[52]. - As of March 31, 2020, the company had cash and cash equivalents of approximately HKD 57.8 million, down from HKD 100 million as of March 31, 2019[55]. - The company’s total equity as of March 31, 2020, was approximately HKD 87.24 million, down from HKD 90.54 million as of March 31, 2019[15]. Dividend and Shareholder Information - The board of directors did not recommend the payment of an interim dividend for the three months ended March 31, 2020[11]. - The company did not declare an interim dividend for the three months ended March 31, 2020, compared to no dividend declared for the same period in 2019[34]. - The board of directors has decided not to declare a dividend for the three months ended March 31, 2020[83]. - As of March 31, 2020, the company’s major shareholder, Vigorous King Limited, holds approximately 75% of the shares, equivalent to 600,000,000 shares[68]. Corporate Governance and Compliance - The company has not made any insurance arrangements for its directors against potential legal actions, citing low risk due to effective risk management systems[76]. - The company’s chairman and CEO, Mr. Yu Pak Lun, holds a dual role, which the board believes is in the best interest of the company despite deviating from corporate governance guidelines[74]. - As of March 31, 2020, the company has not disclosed any interests or stakes in competing businesses by its directors or major shareholders[77]. - The company has not reported any other individuals or entities holding interests in its shares that require disclosure under the Securities and Futures Ordinance as of March 31, 2020[71]. - The audit committee has reviewed the accounting policies and internal controls, confirming compliance with applicable accounting standards and GEM listing rules[82]. Utilization of Funds - The company raised a net amount of approximately HKD 34.10 million from its initial public offering, with actual utilization as of March 31, 2020 being HKD 5.01 million[80]. - The company has utilized HKD 1.44 million for the development of technology support centers to enhance service quality, out of a planned HKD 2.92 million[80]. - The company allocated HKD 1.61 million for funding contract deposits, with an actual utilization of HKD 1.44 million against a planned amount of HKD 2.34 million[80]. - The company has utilized HKD 2.51 million to enhance its management information systems, with no planned amount disclosed for this category[80]. - The company has allocated HKD 1.46 million to increase marketing efforts, with no actual utilization reported in this area[80]. Other Information - The company had drawn down a term loan of HKD 5,359,000 as of March 31, 2020, compared to zero in the previous year[37]. - There have been no significant events occurring after the reporting period for the quarter ended 2020[85]. - The company had no significant acquisitions or disposals of subsidiaries during the 2020 quarter[58].