Financial Performance - For the fiscal year 2019, Kinetix Systems Holdings Limited reported revenue of approximately HKD 2,156 million, an increase of about 11.4% compared to the fiscal year 2018[10]. - The gross profit for the fiscal year 2019 was approximately HKD 373 million, a decrease of about 13.1% compared to the previous year[10]. - The net profit attributable to shareholders for the fiscal year 2019 was HKD 2.2 million[10]. - For the fiscal year 2019, the company recorded a profit attributable to equity shareholders of approximately HKD 2.2 million, compared to a loss of approximately HKD 9 million in fiscal year 2018, marking a significant turnaround[24]. - The increase in profit was primarily due to a reduction in expected credit loss provisions by approximately HKD 7.8 million and a decrease in one-time listing expenses by HKD 9.8 million, despite a gross profit decrease of HKD 5.6 million and an increase in legal and professional fees by HKD 1.4 million[24]. - The company's revenue for the fiscal year 2019 was approximately HKD 2,156 million, an increase of about HKD 221 million or 11.4% compared to fiscal year 2018 (approximately HKD 1,935 million)[50]. - The gross profit for fiscal year 2019 was approximately HKD 373 million, a decrease of about HKD 56 million or 13.1% from fiscal year 2018 (approximately HKD 429 million), with the gross profit margin declining from approximately 22.2% to 17.3%[50]. - The company's selling expenses for fiscal year 2019 were approximately HKD 61 million, an increase of about HKD 7 million or 13.0% compared to fiscal year 2018 (approximately HKD 54 million)[51]. - Administrative expenses for fiscal year 2019 were approximately HKD 280 million, an increase of about HKD 16 million or 6.1% from fiscal year 2018 (approximately HKD 264 million)[52]. - The company reported a profit of approximately HKD 106 million for fiscal year 2019, compared to a loss of approximately HKD 90 million in fiscal year 2018[52]. Business Operations - Kinetix Systems has been providing IT services for about 21 years, serving both private and public sectors, including government, banking, and telecommunications[9]. - The company’s main business involves providing IT infrastructure solutions, development solutions, and maintenance and support services[150]. - There were no significant changes in the nature of the group's main business during the fiscal year 2019[150]. - The revenue from the IT development solutions segment for fiscal year 2019 was approximately HKD 53.5 million, accounting for about 24.8% of total revenue, representing a 14.6% increase from approximately HKD 46.7 million in fiscal year 2018[25]. - The IT infrastructure solutions segment generated revenue of approximately HKD 123.5 million in FY2019, accounting for about 57.3% of total revenue, a decrease of approximately 1.4% from FY2018's HKD 125.3 million[26]. - The IT maintenance and support services segment reported revenue of approximately HKD 28.6 million in FY2019, representing about 13.3% of total revenue, an increase of approximately 33.0% from FY2018's HKD 21.5 million[27]. - A new subsidiary focused on e-commerce for entertainment products generated revenue of approximately HKD 10 million, accounting for about 4.6% of total revenue in FY2019[30]. Risk Management - The company acknowledges potential adverse impacts on business and short-term performance due to global and local economic uncertainties[10]. - The company operates in a market characterized by higher investment risks due to its listing on the GEM[2]. - The company faces significant risks, including reliance on suppliers for hardware and software, which could adversely affect operational performance if supply is disrupted[34]. - The company has a concentration risk with a few key suppliers, and losing any of them could significantly impact business operations[37]. - The company is currently under a standing contractor agreement with the Hong Kong government, which is set to expire in July 2021, posing a risk to future service provision[39]. - The company has identified potential liabilities from negligence or omissions during service delivery, which could lead to claims or lawsuits[40]. - The company has implemented a risk management policy aimed at identifying, assessing, and managing significant risks associated with its business operations[138]. Strategic Development - The company aims to strategically develop its business to mitigate the impacts of changing business environments[10]. - Kinetix Systems continues to implement clear strategies to balance short-term performance with long-term goals[10]. - The company plans to develop IT solutions tailored for the financial and insurance industries, expand ERP system applications, and enhance cloud computing and IoT products[31]. - The company aims to diversify its revenue sources by providing specific IT solution services through its newly established subsidiary[45]. - The company plans to continue monitoring macroeconomic issues and trade disputes to manage their impact on performance and to provide optimal results for shareholders in the medium to long term[45]. Corporate Governance - The board believes that the risk of directors facing legal action is relatively low, thus no insurance arrangements have been made for such risks[76]. - The company believes that having the same individual serve as both Chairman and CEO ensures efficient management and business development, which is in the best interest of the group[83]. - The board is responsible for the overall management of the group's business and ensuring sustainable value for shareholders[84]. - The company has appointed three independent non-executive directors, meeting the requirement of at least one with appropriate professional qualifications or accounting expertise[90]. - All directors are committed to ongoing professional development to enhance their knowledge and skills, ensuring they contribute effectively to the company[97]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with clear written terms of reference[98]. - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2019, and confirmed compliance with applicable accounting standards and GEM listing rules[103]. - The audit committee held five meetings during the year, in addition to two meetings with external auditors[104]. - The remuneration committee recommended compensation policies for all directors and senior management, including benefits and retirement rights[109]. - The nomination committee reviewed the diversity policy of the board and assessed the independence of independent non-executive directors[113]. - The company adhered to GEM listing rules requiring the audit committee to consist of at least three members, with the chairman possessing appropriate professional qualifications[104]. - The audit committee monitored the fairness of the company's financial statements, including annual and quarterly reports[104]. - The remuneration committee approved compensation for executive directors and senior management, ensuring alignment with contractual terms[109]. - The nomination committee proposed candidates for board appointments based on qualifications and expertise[113]. - The company conducted two meetings with external auditors to discuss significant audit issues[106]. - The audit committee recommended the reappointment of external auditors and approved their engagement terms[104]. - The board emphasizes diversity as a key element for achieving strategic goals and sustainable development, considering factors such as gender, age, cultural background, and race in candidate selection[114]. - As of December 31, 2019, the board's composition reflects diversity across various dimensions, including age groups and professional industries[118]. - The board held regular meetings to review financial and operational performance, with attendance records indicating full participation from executive directors in key meetings[120]. Shareholder Communication - The company has established multiple channels for communication with shareholders, including financial reports and annual general meetings[142]. - The company has adopted a shareholder communication policy to enhance communication and ensure shareholders are informed[142]. - The group reported a total sales revenue of approximately 34.5% from its top five customers, with the largest customer accounting for about 8.8% of total sales[161]. - The group did not recommend the payment of a final dividend for the fiscal year 2019[152]. - As of December 31, 2019, the reserves available for distribution to shareholders were approximately HKD 40 million[161]. Employee and Community Engagement - As of December 31, 2019, the group had a total of 116 employees, an increase from 85 employees as of December 31, 2018[63]. - Total employee costs for the fiscal year 2019 amounted to approximately HKD 38 million, compared to approximately HKD 35.3 million in fiscal year 2018[63]. - The group made charitable donations totaling approximately HKD 10,000 in fiscal year 2019, down from approximately HKD 13,000 in 2018[66]. - The company is committed to maintaining high environmental and social standards, ensuring sustainable business practices[198]. - The company encourages participation from employees, customers, suppliers, and stakeholders in community-beneficial activities[198]. - The environmental, social, and governance policies and performance details will be disclosed in the ESG report found on pages 41 to 45 of the annual report[198].

Financial Performance - For the nine months ended September 30, 2019, the total revenue of Kinetix Systems Holdings Limited was approximately HKD 123.7 million, an increase of about 13.4% compared to the same period in 2018[7]. - The gross profit for the same period was approximately HKD 26.4 million, reflecting a growth of about 6.5% year-on-year[8]. - The net profit recorded for the nine months was approximately HKD 2.6 million[9]. - The total comprehensive loss for the nine months was HKD 3.1 million, compared to a loss of HKD 14.3 million in the same period of 2018[12]. - The company reported a net profit of HKD 2,719,000 for the period, compared to a loss of HKD 14,504,000 in the previous period, indicating a significant turnaround[15]. - The total comprehensive loss for the period was HKD 14,504,000, which was a decrease from the previous comprehensive loss, showing improved financial performance[15]. - For the three months ended September 30, 2019, the company's revenue was HKD 33,779 thousand, a 67.5% increase compared to HKD 20,233 thousand for the same period in 2018[29]. - For the nine months ended September 30, 2019, total revenue reached HKD 123,676 thousand, up 13.4% from HKD 109,082 thousand in the same period of 2018[29]. - The group recorded a profit of approximately HKD 2.6 million in the 2019 quarter, compared to a loss of approximately HKD 14.5 million in the 2018 quarter[67]. Expenses and Costs - The sales cost for the nine months was HKD 97.3 million, up from HKD 84.3 million in the previous year[12]. - The administrative and general expenses for the nine months were HKD 19.2 million, compared to HKD 20.1 million in the same period of 2018[12]. - Selling expenses for the 2019 quarter were approximately HKD 4.4 million, an increase of about HKD 0.5 million or 12.8% compared to approximately HKD 3.9 million in the 2018 quarter[65]. - Administrative expenses decreased by approximately HKD 0.9 million or 4.5% to about HKD 19.2 million in the 2019 quarter, down from approximately HKD 20.1 million in the 2018 quarter[66]. - The total income tax expense for the nine months ended September 30, 2019, was HKD 470,000, compared to HKD 247,000 for the same period in 2018[42]. Dividends and Shareholder Information - The board of directors did not recommend the payment of a quarterly dividend for the nine months ended September 30, 2019[10]. - The company did not recommend the payment of a quarterly dividend for the nine months ended September 30, 2019, consistent with the previous year[44]. - No dividends were declared for the nine months ending September 30, 2019[96]. - The major shareholder, Vigorous King Limited, holds approximately 75% of the company's shares[88]. Market and Operational Strategy - Kinetix Systems Holdings Limited is focused on expanding its market presence and enhancing its product offerings[12]. - The company plans to expand its market presence and enhance its product offerings through new technology developments[29]. - The company aims to improve operational efficiency and reduce costs through strategic initiatives in the upcoming quarters[29]. - The company anticipates challenges in the global business environment due to recent protests in Hong Kong and uncertainties from the US-China trade dispute, which may impact order intake and pricing[61]. - The company will strategically manage business risks and develop its operations to mitigate the impact of these challenges[61]. Assets and Liabilities - As of September 30, 2019, total equity amounted to HKD 89,342,000, an increase from HKD 81,247,000 as of January 1, 2018, reflecting a growth of approximately 10.6%[15]. - The company recognized right-of-use assets amounting to HKD 5,479,000 and lease liabilities of HKD 6,162,000 as of January 1, 2019, following the adoption of HKFRS 16[22]. - The weighted average incremental borrowing rate applied to lease liabilities was 4.12%[22]. - The total reserves as of September 30, 2019, were HKD 10,000, indicating stability in the company's financial position[15]. - As of September 30, 2019, the group had cash and cash equivalents of approximately HKD 68.6 million, an increase from approximately HKD 63.4 million as of December 31, 2018[69]. - The group's debt-to-equity ratio was zero as of September 30, 2019, consistent with December 31, 2018[69]. - The group did not engage in any bank borrowings during the 2019 quarter[69]. - The company had minimum unfulfilled commitments under non-cancellable operating leases of HKD 5.8 million as of September 30, 2019[52]. Employee and Management Information - The total remuneration for key management personnel was HKD 8.65 million for the three months ended September 30, 2019, down from HKD 14.5 million for the same period in 2018[41]. - Employee costs totaled approximately HKD 27.10 million for the quarter, consistent with the previous year's figure[92]. - The company has a total of 89 employees as of September 30, 2019, an increase from 85 employees a year earlier[92]. Compliance and Reporting - The financial statements were prepared in accordance with HKFRS 34 and GEM listing rules, ensuring compliance with applicable disclosure requirements[17]. - The company’s registered office is located in the Cayman Islands, emphasizing its status as an exempted company[16]. - The company has not disclosed any significant events after the reporting period[98]. - The company has not made any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the quarter[91]. - The company has adopted a share option scheme, but no options were granted, exercised, or cancelled under this scheme from its adoption date until September 30, 2019[80]. - The net proceeds from the IPO amounted to approximately HKD 34.10 million, with HKD 6.77 million utilized as of September 30, 2019[82]. - The company allocated HKD 9.15 million for providing cloud computing and IoT products, with no amount utilized yet[82].

Financial Performance - Total revenue for the six months ended June 30, 2019, was approximately HKD 89.9 million, an increase of about 1.2% compared to the same period in 2018[9] - Gross profit for the same period was approximately HKD 22.1 million, representing an increase of about 3.8% year-over-year[10] - The group recorded a net profit of approximately HKD 5.7 million for the six months ended June 30, 2019[11] - Basic and diluted earnings per share for the six months ended June 30, 2019, were HKD 0.72, compared to a loss of HKD 0.62 in the same period of 2018[14] - The company reported a total comprehensive income of HKD 5.7 million for the six months ended June 30, 2019, compared to a loss of HKD 3.7 million in the same period of 2018[14] - The company reported a profit attributable to owners of HKD 1,919,000 for the three months ended June 30, 2019, compared to a loss of HKD 7,560,000 for the same period in 2018[57] - For the six months ended June 30, 2019, the company recorded a profit attributable to owners of approximately HKD 5.7 million, compared to a loss of approximately HKD 3.7 million for the same period in 2018, representing a significant turnaround[83] Revenue Breakdown - Revenue for the six months ended June 30, 2019, was HKD 89,897,000, a slight increase from HKD 88,849,000 for the same period in 2018, representing a growth of 1.2%[38] - Revenue from IT solutions services was HKD 51,275,000 for the six months ended June 30, 2019, compared to HKD 51,215,000 in the same period of 2018, indicating a marginal increase of 0.1%[38] - Revenue from IT development solutions services decreased to HKD 24,685,000 for the six months ended June 30, 2019, from HKD 23,359,000 in the same period of 2018, reflecting a growth of 5.7%[38] - Revenue from the IT infrastructure solutions segment was approximately HKD 51.3 million, accounting for about 57.0% of total revenue for the period[84] - Revenue from the IT maintenance and support services segment decreased by approximately 2.8% to about HKD 13.9 million, down from approximately HKD 14.3 million in the previous year[87] - Revenue from Hong Kong for the six months ended June 30, 2019, was HKD 81,617,000, a decrease of 7.3% from HKD 88,066,000 in the same period of 2018[35] - Revenue from Macau increased significantly to HKD 7,699,000 for the six months ended June 30, 2019, compared to HKD 783,000 in the same period of 2018, indicating a growth of 884.4%[35] Assets and Liabilities - Total assets as of June 30, 2019, were HKD 156.1 million, a decrease from HKD 162.7 million as of December 31, 2018[16] - Total liabilities as of June 30, 2019, were HKD 63.7 million, down from HKD 75.9 million as of December 31, 2018[18] - Cash and cash equivalents as of June 30, 2019, amounted to HKD 73.4 million, an increase from HKD 63.4 million as of December 31, 2018[16] - The company’s equity attributable to owners was HKD 92.3 million as of June 30, 2019, compared to HKD 86.8 million as of December 31, 2018[18] - Total equity as of June 30, 2019, was HKD 92,358,000, an increase from HKD 86,775,000 as of January 1, 2019[20] - Trade receivables as of June 30, 2019, were HKD 23,121,000, down 40.5% from HKD 38,904,000 as of December 31, 2018[62] - Contract assets as of June 30, 2019, amounted to HKD 12,848,000, an increase from HKD 9,203,000 as of December 31, 2018[71] Expenses and Costs - Selling expenses increased by approximately HKD 0.7 million or 29.2% to about HKD 3.1 million, primarily due to an increase in the average number of sales staff and higher average salaries[92] - Administrative and general expenses decreased by approximately HKD 0.4 million or 3.1% to about HKD 12.5 million, mainly due to a reduction in employee costs[93] - Total employee costs for the first half of 2019 amounted to approximately HKD 18.268 million, compared to approximately HKD 18.507 million in the same period last year, reflecting a decrease of about 1.3%[119] Corporate Governance and Management - The company’s board believes that good corporate governance is essential for effective management and business development[101] - The company has not made any insurance arrangements for its directors facing legal actions, considering the risks manageable[102] - The company has adopted a share option scheme, but no options have been granted, exercised, or cancelled as of June 30, 2019[107] Future Outlook and Strategy - The company plans to expand its market presence and invest in new technology solutions to drive future growth[38] - The company will continue to focus on its core business to provide innovative and comprehensive IT consulting services to clients[88] - The company anticipates that risks from fluctuating interest rates and the US-China trade war may continue to adversely affect its business and overall short-term performance[88] Other Information - The company did not declare an interim dividend for the six months ended June 30, 2019, consistent with the previous year[56] - The company did not incur any impairment losses on property, plant, and equipment for the six months ended June 30, 2019, compared to a loss of approximately HKD 52,000 for the same period in 2018[59] - The total income tax expense for the six months ended June 30, 2019, was HKD 1,211,000, compared to HKD 993,000 for the same period in 2018[54] - The company has not engaged in any hedging strategies to manage foreign currency risk, which primarily arises from financial instruments denominated in USD[98] - As of June 30, 2019, the company had no bank borrowings and no purchases, sales, or redemptions of its listed securities[99] - There were no major acquisitions or disposals of subsidiaries, associates, or joint ventures during the first half of 2019[118] - There were no significant events after the reporting period for the first half of 2019[127]

Financial Performance - For the three months ended March 31, 2019, the total revenue of Kinetix Systems Holdings Limited was approximately HKD 51.66 million, an increase of about 4.9% compared to the same period in 2018[10]. - The gross profit for the same period was approximately HKD 11.38 million, a decrease of about 10.4% year-on-year[11]. - The net profit recorded for the three months was approximately HKD 3.90 million, reflecting a slight increase of about 1% compared to the previous year[11]. - The basic and diluted earnings per share for the period were HKD 0.49, down from HKD 0.64 in the same period last year[14]. - The total comprehensive income for the period was HKD 3.88 million, compared to HKD 3.85 million in the previous year[14]. - The group reported total revenue of HKD 51,662 thousand for the three months ended March 31, 2019, an increase of 4.9% compared to HKD 49,259 thousand for the same period in 2018[39]. - Total revenue for the quarter ended March 31, 2019, was approximately HKD 51.7 million, an increase of about HKD 2.4 million or 4.9% from HKD 49.3 million in the same quarter of 2018[66]. Revenue Breakdown - Revenue from IT infrastructure solutions was HKD 25,094 thousand, while IT development solutions and IT maintenance and support services generated HKD 19,092 thousand and HKD 7,476 thousand, respectively[39]. - Revenue from IT infrastructure solutions decreased by approximately 14.3% to about HKD 25.1 million, accounting for approximately 48.6% of total revenue[60]. - Revenue from IT development solutions increased by approximately 52.8% to about HKD 19.1 million, representing approximately 37.0% of total revenue[61]. - The group’s revenue from Hong Kong and Macau was HKD 47,784 thousand, a slight decrease from HKD 48,479 thousand in the previous year[37]. - The group’s revenue from Singapore was HKD 193 thousand, with no revenue reported for the same period in 2018[37]. Expenses and Costs - The company’s administrative and general expenses for the quarter were approximately HKD 5.39 million, compared to HKD 6.53 million in the same period last year, indicating a reduction in costs[14]. - The company’s sales costs for the quarter were approximately HKD 40.28 million, up from HKD 36.55 million in the previous year[14]. - Selling expenses increased by approximately 16.7% to about HKD 1.4 million, primarily due to an increase in the average number of sales staff[68]. - Administrative expenses decreased by approximately 16.9% to about HKD 5.4 million, mainly due to a reduction in employee costs[69]. - The group’s income tax expense for the three months ended March 31, 2019, was HKD 651 thousand, compared to HKD 548 thousand for the same period in 2018[45]. Dividends and Shareholder Information - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2019[12]. - The group did not declare an interim dividend for the three months ended March 31, 2019, compared to no dividend declared for the same period in 2018[47]. - The board of directors has resolved not to declare any dividends for the three months ended March 31, 2019[96]. - As of March 31, 2019, the major shareholder Vigorous King Limited held approximately 75% of the company's shares, equivalent to 600,000,000 shares[85]. Assets and Liabilities - The group recognized right-of-use assets and lease liabilities amounting to HKD 5,479 thousand and HKD 6,162 thousand, respectively, as of January 1, 2019, due to the adoption of HKFRS 16[33]. - The group’s total liabilities increased due to the recognition of lease liabilities under the new accounting standard[33]. - The company had cash and cash equivalents of approximately HKD 100 million as of March 31, 2019, compared to approximately HKD 63.4 million as of December 31, 2018[72]. - The group had no pledged assets as of March 31, 2019, consistent with December 31, 2018[77]. Employment and Costs - As of March 31, 2019, the group had a total of 89 employees, an increase from 85 employees as of March 31, 2018[74]. - Total employee costs for the quarter were approximately HKD 8.8 million, compared to approximately HKD 8.7 million in the same quarter of 2018[74]. Corporate Governance and Risks - The board believes that the dual role of the chairman and CEO held by Mr. Yu is in the best interest of the group, despite a deviation from corporate governance code A.2.1[88]. - The company has not made any insurance arrangements for potential legal actions against its directors, considering the risks manageable[90]. - The company anticipates facing multiple risks and uncertainties that may negatively impact its business and overall short-term performance[64]. - There were no known competing business interests from the company's directors or major shareholders as of the 2019 quarter[91]. IPO and Financial Review - The net proceeds from the initial public offering amounted to approximately HKD 34.1 million after deducting underwriting fees, commissions, and other listing expenses[93]. - As of March 31, 2019, the company has utilized approximately HKD 60,000 of the IPO proceeds[93]. - The audit committee has reviewed the unaudited financial statements for the three months ended March 31, 2019, and confirmed compliance with applicable accounting standards and GEM listing rules[95]. Changes in Management - Significant changes in the board include the resignation of Mr. Zhang Huajie as an independent non-executive director effective May 8, 2019[98].

Financial Performance - For the fiscal year 2018, Kinetix Systems Holdings Limited recorded revenue of approximately HKD 193.5 million, representing a growth of about 6.9% compared to the previous year[15]. - The gross profit for the same period was approximately HKD 42.9 million, an increase of about 14.4% year-on-year[15]. - The company reported a net loss attributable to shareholders of approximately HKD 9 million, primarily due to increased listing expenses of about HKD 5.5 million and expected credit loss provisions of approximately HKD 8.4 million[15]. - Excluding the special impacts of listing expenses and credit loss provisions, the company achieved a pre-tax profit of approximately HKD 11 million for the fiscal year 2018[15]. - The company recorded a loss attributable to equity shareholders of approximately HKD 9 million for the fiscal year 2018, compared to a profit of approximately HKD 6 million for the fiscal year 2017, marking a significant increase in loss due to provisions for expected credit losses and increased operating costs[39]. - The company recorded a loss of approximately HKD 15 million in fiscal year 2018, an increase in loss compared to a profit of approximately HKD 6 million in fiscal year 2017, primarily due to an increase in expected credit loss provisions of approximately HKD 7.8 million[76]. Revenue Breakdown - Revenue from the IT development solutions segment was approximately HKD 46.7 million for fiscal year 2018, representing a 29.0% increase from approximately HKD 36.2 million in fiscal year 2017, accounting for 24.1% of total revenue[40]. - Revenue from the IT infrastructure solutions segment was approximately HKD 125.3 million for fiscal year 2018, a slight increase of 2.8% from approximately HKD 121.9 million in fiscal year 2017, making up 64.8% of total revenue[41]. - Revenue from the IT maintenance and support services segment decreased by 5.7% to approximately HKD 21.5 million in fiscal year 2018, down from approximately HKD 22.8 million in fiscal year 2017, accounting for 11.1% of total revenue[42]. Strategic Focus and Development - The company plans to continue focusing on the development of its traditional information technology business and advance its expansion plans disclosed in the prospectus dated June 30, 2018[16]. - Kinetix aims to closely monitor macroeconomic issues and trade disputes to mitigate any potential long-term impacts on its performance[16]. - The company plans to utilize approximately HKD 34.1 million raised from the IPO for various strategic initiatives, with only HKD 0.06 million actually utilized by December 31, 2018[48]. - The company aims to develop IT solutions tailored for the financial and insurance industries and expand the application of ERP systems in IT development solutions[46]. - The company intends to enhance its marketing efforts and improve the expertise of its professional team as part of its growth strategy[46]. - The company has established a technology support center to enhance service quality as part of its strategic objectives[46]. Management and Governance - The company has over 20 years of experience in the information technology industry, with key executives holding significant roles in strategy and operations[18]. - The executive team includes individuals with extensive backgrounds in project management and consulting, contributing to the company's operational efficiency[19]. - The company has a strong focus on professional resource management and skill development, with executives having over 17 years of experience in the IT sector[24]. - The independent non-executive directors bring over 24 years of experience in IT management and business development, enhancing the company's strategic oversight[26]. - The company has a diverse board with members holding advanced degrees in engineering, business, and law, ensuring a well-rounded governance structure[28]. - The executive team is responsible for overseeing the delivery of all projects, indicating a strong commitment to project management excellence[19]. - The company emphasizes compliance and sales management, with executives having over 23 years of experience in the IT industry[25]. - The company is committed to maintaining high standards of accountability and resource management through its independent directors[26]. - The executive team has a proven track record in developing business strategies and alternative business models, crucial for future growth[30]. Risks and Challenges - The company acknowledges potential short-term business and financial performance variability due to global economic conditions and increasing competition in the business environment[15]. - The company faces significant risks related to reliance on suppliers for hardware and software, which could adversely affect operational performance if supply is disrupted[53]. - The company may encounter difficulties in retaining skilled personnel, which could significantly hinder its operations and financial performance[9]. - The company anticipates challenges in the global business environment, including potential impacts from geopolitical tensions and trade disputes, which may affect order intake and pricing terms[69]. - The company faces risks related to the quality of hardware and software provided by suppliers, which could adversely affect its business and reputation[5]. Corporate Governance - The company has adopted the corporate governance code as per GEM listing rules and has complied with it throughout the fiscal year 2018, with some disclosed deviations[110]. - The board consists of four executive directors and three independent non-executive directors, ensuring compliance with GEM listing rules regarding independence[116]. - The company is committed to maintaining good corporate governance practices to enhance stakeholder value and meet increasing expectations[110]. - The chairman and CEO roles are held by the same individual, which the board believes is in the best interest of the group for effective management[123]. - The remuneration of executive directors is determined by the remuneration committee based on the company's performance and market data[118]. - The independent non-executive directors' remuneration is also reviewed annually by the remuneration committee[121]. - The company will continue to review its corporate governance practices to comply with tightening regulatory requirements[110]. - The Audit Committee consists of independent non-executive directors, with the chairman being Mr. Lin Youxian, and its main responsibilities include reviewing the financial statements and ensuring compliance with applicable accounting standards and GEM listing rules[130]. - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, each with clear written terms of reference[129]. - The Remuneration Committee, chaired by Mr. Yang Weiqiang, is responsible for recommending remuneration policies for all directors and senior management, ensuring alignment with the company's objectives[138]. - The Audit Committee held two meetings with external auditors during the reporting period to discuss significant audit issues[133]. - The company has complied with GEM listing rules regarding the composition of the Audit Committee, which must consist of at least three members, with the chairman possessing appropriate professional qualifications[133]. - The Nomination Committee, chaired by Mr. Zhang Huajie, aims to implement a formal and transparent procedure for the appointment of board members[141]. - The Audit Committee reviewed the consolidated financial statements for the year ended December 31, 2018, and confirmed compliance with applicable accounting standards[134]. - The Remuneration Committee completed its main tasks, including determining the remuneration of individual executive directors and senior management during the reporting period[140]. - The company emphasizes the importance of continuous professional development for all directors, ensuring they are well-informed about the company's operations and responsibilities[128]. - The Audit Committee monitors the effectiveness of the company's risk management and internal control systems, including financial reporting and internal audit procedures[134]. - The board completed a review of the diversity policy and its implementation, focusing on gender, age, and professional industry diversity[146]. - The board's composition includes a mix of genders and age groups, with specific attention to independent non-executive directors[151]. - The company secretary received no less than 15 hours of relevant professional training during the fiscal year 2018[163]. - The external auditor received a total of HKD 268,000 for audit services and HKD 304,000 for non-audit services during the fiscal year 2018[165]. - The board is committed to maintaining an effective internal control system, with an independent internal control consultant appointed to review the system annually[169]. - The board is responsible for ensuring the monitoring of risk management and internal control frameworks[169]. - The nomination committee evaluates candidates based on a range of diversity criteria, including but not limited to gender, age, and cultural background[146]. - The board meetings and committee meetings were regularly held to review financial and operational performance[153]. - The company is dedicated to appointing candidates based on merit while considering the benefits of board diversity[146]. Shareholder Communication and Reserves - The group has adopted a shareholder communication policy to ensure shareholders are informed about the company and can exercise their rights[173]. - The group did not recommend the payment of a final dividend for the fiscal year 2018[188]. - The group's reserves available for distribution to shareholders were approximately HKD 41.8 million as of December 31, 2018[197]. - The group has not entered into any management or administrative contracts concerning its business as of December 31, 2018[200]. - The group has implemented measures to ensure compliance with insider information handling and disclosure regulations[172]. - The board and senior management review the risk management systems and procedures annually to assess their effectiveness[172]. - The group has not purchased, redeemed, or sold any of its listed securities during the year[196].