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].

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].