Business Development - The company commenced its new precious metals trading services business during the fiscal year ending March 31, 2024, with no significant changes in the nature of its main business[13]. - The company has initiated a terminal for algorithmic trading simulation and a network portal for algorithm sharing, enhancing portfolio tracking and optimization[1]. - The group plans to hire subcontractors for the development and upgrade of certain financial transaction solutions based on available labor resources and technical expertise[56]. Shareholder and Share Options - Essential Strategy holds 210,000,000 shares, representing 52.5% of the issued shares[37]. - Expert Wisdom owns 90,000,000 shares, accounting for 22.5% of the issued shares[37]. - The total number of share options available under the share option scheme is capped at 10% of the issued share capital, which is 40,000,000 shares[40]. - As of March 31, 2024, the number of share options available for grant under the general scheme limit is 12,800,000[41]. - The share option plan aims to incentivize and reward contributions from eligible participants[38]. - The maximum allocation for any eligible participant within any twelve-month period cannot exceed 1% of the issued shares as of the grant date[45]. Employee Relations and Safety - The company has not received any significant personal injury claims from employees under the employee compensation policy for the year ending March 31, 2024[52]. - The company has maintained good relationships with employees, customers, and suppliers, ensuring a safe and motivating work environment[52]. - No major accidents or violations of health and safety laws have occurred during the operational process[52]. - The company has implemented robust workplace measures to monitor and supervise risky activities[52]. - The group emphasizes employee training and development, providing regular training to ensure staff are updated on the latest knowledge and market information[76]. Client and Market Dynamics - The group has 20 major clients as of March 31, 2024, down from 28 in 2023, primarily consisting of financial institutions located in the Asia-Pacific region[53]. - The group does not rely on any single client, but the loss of major clients could adversely affect business and profitability if new comparable business is not acquired[55]. - The group is actively seeking new projects from existing or new clients to diversify its customer base and mitigate risks[55]. - The group has a standard service agreement requiring clients to make monthly payments without credit terms, with automatic renewal unless a termination notice is given three months in advance[79]. - There were no significant disputes or complaints from clients that could materially affect the group's operations during the fiscal year ending March 31, 2024[79]. Corporate Governance - The group has adopted corporate governance practices in compliance with GEM listing rules, ensuring transparency and accountability[58]. - The company has established a nomination committee to review the board's structure and recommend changes to align with corporate strategy[96]. - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors[108]. - The board is responsible for overall development, strategic planning, and monitoring business performance, with regular reviews of management performance[109]. - The company has established three board committees: audit, remuneration, and nomination, to oversee specific areas of governance[113]. - The audit committee, composed of three independent non-executive directors, has reviewed the financial reporting and risk management systems without identifying significant internal control deficiencies[88]. - The company has complied with GEM listing rules regarding the independence of its non-executive directors, with three independent directors making up over one-third of the board[111]. - The company has implemented a continuous professional development program for all directors to ensure they remain informed and effective in their roles[112]. - The board will continue to seek suitable candidates for directorships, considering various factors including gender, experience, and qualifications[116]. - The company has adopted good corporate governance principles as a foundation for its governance practices[107]. Risk Management - The company has established a risk management and internal control system to protect its assets and ensure compliance with applicable laws and regulations[146]. - The company’s management regularly monitors existing risk mitigation measures and reviews the risk management strategy[146]. - The board reviewed the effectiveness of the risk management and internal control systems on June 20, 2024, and found them to be effective and adequate[192]. - The company has a structured approach to identifying, assessing, and managing significant risks[166]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to improving its environmental, social, and governance performance and creating greater value for the community[184]. - The company emphasizes the integration of green development concepts into its operations, aiming for sustainable long-term goals in low-carbon economic transformation[182]. - The company encourages employees to reduce paper usage and promotes video conferencing to minimize carbon footprints[188][190]. - As of March 31, 2024, the company recorded carbon emissions of 41.3 tons of CO2 equivalent from business air travel, primarily due to overseas client services[190]. - The board of directors is responsible for overseeing significant environmental, social, and governance issues, ensuring these concepts are integrated into daily operations[180]. Communication and Transparency - The company emphasizes effective communication with shareholders to enhance investor relations and deepen understanding of its business performance and strategy[173]. - The company has implemented a shareholder communication policy that has been effectively executed through various channels, including annual general meetings and timely information releases[174]. - The company’s website serves as a communication platform for shareholders and potential investors, ensuring high levels of transparency[197]. - The company has implemented information disclosure policies to prevent unauthorized or inaccurate disclosure of inside information[193].

Financial Performance - For the fiscal year ending March 31, 2024, the total revenue of Novacon Technology Group Limited was approximately HKD 22.8 million, representing a significant decline of about 57% compared to the previous fiscal year[12]. - The net profit turned into a net loss of approximately HKD 23.0 million, compared to a net profit of HKD 5.7 million in the previous year[12]. - As of March 31, 2024, the company's total revenue was HKD 22,791,000, a significant decrease from HKD 52,577,000 in the previous year, representing a decline of approximately 56.7%[27]. - The company's revenue for the year ended March 31, 2024, was approximately HKD 22.8 million, a significant decrease of about 57% compared to approximately HKD 52.6 million for the previous year[31]. - Revenue from licensing and maintenance services dropped approximately 72% to about HKD 11.6 million from approximately HKD 41.5 million in the previous year, primarily due to reduced services provided to existing clients[31]. - Initial setup and customization service revenue decreased by approximately 28% to about HKD 8.0 million from approximately HKD 11.1 million in the previous year[31]. - The company recorded a loss before tax of approximately HKD 23.3 million for the year ended March 31, 2024, compared to a profit of approximately HKD 6.9 million in the previous year, primarily due to a significant revenue decline[47]. - For the fiscal year ending March 31, 2024, the company reported a loss attributable to owners of approximately HKD 23.0 million, compared to a profit of HKD 5.7 million for the fiscal year ending March 31, 2023[49]. Business Strategy and Development - The company is actively reviewing its business options to seek improvements, optimizations, and growth opportunities in response to challenging economic conditions[13]. - The company aims to restructure resources to reduce risks and optimize products to maintain competitiveness[14]. - The acquisition of Maishi Jinwang is expected to enhance the company's gold and silver trading services, contributing to revenue growth[14]. - The company plans to enhance existing trading systems with automated trading and risk management features to better serve clients[30]. - The establishment of Max Online International Limited will expand the company's offerings in forex, precious metals, and contracts for difference trading[30]. - The company is committed to ongoing research and development of financial trading solutions to solidify its market position[18]. - The company started its new precious metals trading service business during the fiscal year ending March 31, 2024[101]. - The company is primarily engaged in developing and providing financial trading solutions, resource allocation, planning, scheduling, and management software and services[101]. Risk Management - The company has identified several key risks, including R&D risk, customer retention risk, and supplier concentration risk, which could significantly impact its business and financial performance[53]. - The company has implemented measures to mitigate risks, such as maintaining close communication with customers and conducting feasibility studies before initiating development projects[54]. - The company has a policy of regularly monitoring current and expected liquidity needs to ensure sufficient cash reserves are maintained[62]. - The company does not engage in speculative activities and has no contracts in place to hedge foreign exchange risks, as its revenues and costs are primarily denominated in USD and HKD[57]. Employee and Operational Insights - Employee benefit expenses rose approximately 14% to about HKD 25.9 million, influenced by a one-time employee bonus of approximately HKD 7.5 million[38]. - The company has maintained strong relationships with key suppliers, ensuring stability in its operations[29]. - The company has not encountered any customer complaints as of March 31, 2024, indicating high customer satisfaction[26]. - The company has emphasized employee training and development, providing regular training to ensure staff are updated on the latest knowledge and market information[170]. - The company has not received any significant personal injury claims from employees under its compensation policy during the fiscal year ending March 31, 2024[170]. - The company has 40 full-time employees as of March 31, 2024, down from 56 in 2023[69]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements and internal controls for the fiscal year ending March 31, 2024[80]. - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors[194]. - The board is responsible for overall business management, strategic planning, and financial reporting approval[197]. - Independent non-executive directors make up over one-third of the board, ensuring compliance with GEM listing rules[200]. - The company has purchased liability insurance for directors and senior management since its listing date[199]. - The board proposed a final dividend of HKD 0.002 per share for the fiscal year ending March 31, 2024, compared to HKD 0.001 per share for the previous year[104]. Shareholder Information - As of March 31, 2024, Mr. Wei holds 210,000,000 shares, representing 52.5% of the issued shares of the company[133]. - Mr. Zhong holds 90,000,000 shares, representing 22.5% of the issued shares of the company[134]. - The total number of share options available for grant under the share option scheme as of March 31, 2024, is 12,800,000 shares, which represents 3.2% of the total issued shares[146]. - The share option scheme was adopted on March 29, 2019, to incentivize and reward contributions to the group[141]. - The maximum number of shares to be issued upon the exercise of stock options under the plan shall not exceed 30% of the company's issued share capital, which is 120,000,000 shares as of the report date[150]. Client and Supplier Relations - The company had 20 clients as of March 31, 2024, down from 28 in 2023, with the top five clients accounting for approximately 71.9% of total sales, up from 55.8% in the previous year[172]. - The largest client contributed about 44.5% of total sales for the year ending March 31, 2024, compared to 16.0% in 2023[172]. - The group’s major suppliers accounted for approximately 85.2% of total procurement for the year ending March 31, 2024, up from 82.2% in 2023, with the largest supplier contributing about 36.5%[176]. - The group has not experienced any supply shortages or delays for the year ending March 31, 2024, and can easily identify alternative suppliers as needed[177]. Financial Position - As of March 31, 2024, the company's net current assets were approximately HKD 46.7 million, down from HKD 70.3 million as of March 31, 2023[51]. - The company's current assets as of March 31, 2024, totaled approximately HKD 55.0 million, compared to HKD 77.5 million in the previous year[51]. - The company maintained a net cash position as of March 31, 2024, with no interest-bearing borrowings reported[52]. - The effective tax rate for the fiscal year ending March 31, 2024, was approximately 1.3%, a significant decrease from 17.6% in the previous year[48]. Research and Development - The company's research and development expenses were approximately HKD 17.7 million, with about HKD 6.4 million capitalized as intangible assets[37]. - The company has established a research and development center in May 2022 due to insufficient office space for additional R&D personnel[75]. - The overall strategy includes a commitment to research and development, with a significant portion of funds allocated to this area to drive future growth[79].

Financial Performance - For the six months ended September 30, 2023, the company reported revenue of HKD 14,223,000, a slight decrease of 3.5% compared to HKD 14,535,000 for the same period in 2022[8]. - The net loss for the six months ended September 30, 2023, was HKD 12,929,000, compared to a profit of HKD 6,457,000 in the same period of 2022, indicating a significant decline in performance[8]. - For the six months ended September 30, 2023, the company reported a total comprehensive loss of HKD 12,929,000, compared to a profit of HKD 6,457,000 for the same period in 2022[10]. - The company reported a basic loss per share of HKD 3.23 for the six months ended September 30, 2023, compared to earnings of HKD 1.61 per share in the same period of 2022[8]. - The company recorded a net loss of HKD 1,081,000 for the three months ended September 30, 2023, compared to a profit of HKD 3,789,000 for the same period in 2022, marking a significant downturn[32]. - The loss attributable to owners of the company for the six months ended September 30, 2023, was approximately HKD 12.9 million, compared to a profit of HKD 6.5 million for the same period in 2022[66]. - The company reported interest income from fixed deposits of HKD 665,000 for the six months ended September 30, 2023, compared to HKD 374,000 in 2022, representing an increase of 77.73%[25]. Revenue Breakdown - Revenue from licensing and maintenance services decreased to HKD 6,681,000 for the six months ended September 30, 2023, down 69.2% from HKD 21,730,000 in 2022[19]. - Revenue decreased by approximately HKD 13.9 million, and impairment losses on financial and contract assets increased by about HKD 1.7 million during the reporting period[66]. - Revenue from licensing and maintenance services decreased by approximately 69% to about HKD 6.7 million, primarily due to reduced services provided to existing customers, including contract amendments and terminations totaling approximately HKD 15.8 million[70]. - Initial setup and customization service revenue increased by approximately 9% to about HKD 6.9 million for the six months ended September 30, 2023[71]. Expenses and Costs - The company incurred employee benefit expenses of HKD 18,643,000 for the six months ended September 30, 2023, which is an increase of 89.5% compared to HKD 9,838,000 for the same period in 2022[8]. - The decrease in net profit to net loss was primarily due to an increase in employee benefit expenses, including a one-time employee bonus of approximately HKD 8.8 million paid in May 2023[66]. - Employee benefit expenses for the six months ended September 30, 2023, totaled approximately HKD 21.2 million, an increase from HKD 13.0 million for the same period in 2022[104]. - Other expenses decreased by approximately 23% to about HKD 2.6 million, primarily due to reductions in consulting fees and telephone and utility expenses[80]. Assets and Liabilities - Total assets as of September 30, 2023, amounted to HKD 132,378,000, a decrease from HKD 137,376,000 as of March 31, 2023[9]. - The company's cash and cash equivalents decreased to HKD 55,442,000 from HKD 61,415,000, reflecting a reduction in liquidity[9]. - The total equity attributable to the owners of the company decreased to HKD 116,375,000 from HKD 129,719,000, indicating a decline in shareholder value[9]. - The company reported a net cash outflow from operating activities of HKD 11,446,000 for the six months ended September 30, 2023, compared to a cash inflow of HKD 8,921,000 in 2022[13]. - As of September 30, 2023, the company's total reserves amounted to HKD 42,476,000, a decrease from HKD 44,632,000 as of April 1, 2023[46]. - As of September 30, 2023, the total liabilities amounted to HKD 9,752,000, with trade payables at HKD 4,214,000 and accrued expenses at HKD 5,538,000[96]. Strategic Initiatives - The company has identified potential market expansion opportunities, although specific strategies were not detailed in the report[8]. - The company is focusing on new product development and technology advancements to enhance its market position[8]. - The company plans to establish a research and development center to enhance and upgrade existing financial trading solutions and explore new information technology solutions[68]. - The company aims to diversify its business and expand revenue sources by entering the fintech market, with two new companies established in May 2023 focusing on precious metals and blockchain trading activities[68]. - The company completed the acquisition of GZBHK for USD 216,000 (approximately HKD 1.7 million) on September 25, 2023, enhancing its position in the precious metals trading market[68]. Shareholder Information - The company declared a final dividend of HKD 0.001 per share for 2023, down from HKD 0.002 per share in 2022, with no interim dividend recommended for the six months ended September 30, 2023[36]. - The company’s issued and paid-up share capital remained at 400,000,000 shares with a par value of HKD 0.01 per share as of September 30, 2023[45]. - The total number of stock options available for grant under the stock option plan as of September 30, 2023, is 12,800,000 shares, representing 3.2% of the total issued shares[123]. Compliance and Governance - The company has established an audit committee in accordance with GEM Listing Rules, which is responsible for reviewing financial reporting procedures and internal controls[144]. - The company has adopted a securities trading code that complies with the standards set out in GEM Listing Rules[139]. - The company has confirmed compliance with the securities trading code by all directors throughout the reporting period[140].

香港交易及結算所有限公司及香港聯合交易所有限公司(「聯交所」)對本公告 的 內 容 概 不 負 責,對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明,並 明 確 表 示 概 不 對 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承 擔 任 何 責 任。 Novacon Technology Group Limited 連成科技集團有限公司 (於 開 曼 群 島 註 冊 成 立 的 有 限 公 司) (股 份 代 號:8635) 截至二零二三年九月三十日止六個月的中期業績公告 連成科技集團有限公司(「本公司」,連 同 其 附 屬 公 司 統 稱「本集團」)董 事(「董 事」) 會(「董事會」)欣然宣佈本集團截至二零二三年九月三十日止六個月的未經審 核簡明綜合業績(「二零二三年中期業績」)。列 載 本 公 司 截 至 二 零 二 三 年 九 月 三十日止六個月的中期報告(「二零二三年中期報告」)全 文 的 本 公 告,符 合 聯 交 所GEM證券上市規則(「GEM上市規則」)中有關二零二三年中期業績初步公告隨 附 資 料 的 相 關 規 定。二 零 二 三 年 中 期 報 告 ...

Financial Performance - The company reported unaudited revenue of HKD 6,749,000 for the three months ended June 30, 2023, a decrease of 50.4% compared to HKD 13,595,000 in the same period of 2022[6]. - The net loss for the period was HKD 11,848,000, compared to a profit of HKD 2,668,000 in the previous year, indicating a significant decline in performance[6]. - The company recorded a loss before tax of HKD 13,468,000, compared to a profit before tax of HKD 3,389,000 in the same quarter of the previous year[6]. - The basic loss per share was HKD 2.96, compared to earnings per share of HKD 0.67 in the prior year[6]. - The company reported a net loss attributable to owners of HKD 11,848,000 for the three months ended June 30, 2023, compared to a profit of HKD 2,668,000 in the same period of 2022[22]. - Basic loss per share for the period was HKD (2.96), compared to earnings of HKD 0.67 per share in the previous year[22]. - The group recorded a loss before tax of approximately HKD 13.5 million for the three months ended June 30, 2023, compared to a profit of approximately HKD 3.4 million for the same period in 2022[43]. - The loss attributable to owners of the company for the three months ended June 30, 2023, was approximately HKD 11.9 million, compared to a profit of approximately HKD 2.7 million for the same period in 2022[45]. Revenue Breakdown - Revenue from licensing and maintenance services was HKD 3,634,000, down 65.9% from HKD 10,649,000 in the previous year[12]. - Revenue from initial setup and customization services increased to HKD 3,115,000, up 5.7% from HKD 2,946,000 in the same period last year[12]. - The revenue from licensing and maintenance services decreased by approximately 66% to about HKD 3.6 million for the three months ended June 30, 2023, from approximately HKD 10.6 million in the same period in 2022[30]. - For the three months ended June 30, 2023, total revenue was HKD 6,749,000, a decrease of 50.4% compared to HKD 13,595,000 for the same period in 2022[12]. Expenses and Costs - Employee benefit expenses increased to HKD 14,343,000, up from HKD 4,906,000, reflecting a rise of 192.5% year-over-year[6]. - The company’s total expenses for the quarter included significant costs in employee benefits and financial asset impairments, totaling HKD 14,343,000 and HKD 1,758,000 respectively[6]. - Research and development expenses increased to approximately HKD 8.3 million for the three months ended June 30, 2023, from approximately HKD 3.9 million in the same period in 2022, largely due to the one-time employee bonus[35]. - Financial and contract asset impairment losses for the three months ended June 30, 2023, were approximately HKD 1.8 million, compared to approximately HKD 23,000 in the same period of 2022, largely due to the ongoing impact of the COVID-19 pandemic and rising U.S. interest rates[40]. Equity and Assets - Total equity as of June 30, 2023, was HKD 117,863,000, down from HKD 129,719,000 at the end of the previous quarter[7]. - The company’s non-current assets were located in Hong Kong and China as of June 30, 2023, with all revenue generated in Hong Kong[14]. Corporate Governance - The company has established an audit committee to oversee financial reporting and internal controls, consisting of three independent non-executive directors[72]. - There were no reported violations of the securities trading code by any directors during the relevant period[71]. - The company has confirmed compliance with the securities trading code by all directors throughout the reporting period[68]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the three months ended June 30, 2023[72]. Future Outlook and Strategy - The company aims to enhance its financial trading solutions and resource allocation software, focusing on market expansion and technological development[9]. - The company plans to establish a research and development center to enhance and upgrade existing financial trading solutions and explore new information technology solutions[28]. - The company aims to diversify its business and expand revenue sources, including entering the fintech market through the establishment of two Hong Kong-registered companies focused on precious metals and blockchain trading activities[28]. - The company is considering strategic acquisitions to enhance its product portfolio, targeting a completion by Q3 2023[76]. - Market expansion plans include entering two new regions, projected to increase market share by 5%[76]. Stock Options and Shareholding - As of June 30, 2023, there were no stock options available for exercise, compared to 29,200,000 options in 2022[55]. - A total of 1,600,000 stock options were granted under the 2020 stock option plan, with 800,000 options granted to a related party[56]. - The exercise price for the 2020 stock options was set at HKD 0.095 per share[56]. - The expected volatility for the 2020 stock options was 55.27% for the first batch and 54.01% for the second batch[57]. - The company’s chairman, Mr. Wai, holds a controlling interest of 210,000,000 shares, representing 52.5% of the issued shares[58]. - The CEO, Mr. Chung, holds a controlling interest of 90,000,000 shares, representing 22.5% of the issued shares[59].

香港交易及結算所有限公司及香港聯合交易所有限公司(「聯交所」)對本公告 之 內 容 概 不 負 責,對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明,並 明 確 表 示 概 不 對 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承 擔 任 何 責 任。 Novacon Technology Group Limited 連成科技集團有限公司 (於 開 曼 群 島 註 冊 成 立 的 有 限 公 司) (股 份 代 號:8635) 截至二零二三年六月三十日止三個月的 第一季度業績公告 連成科技集團有限公司(「本公司」,連 同 其 附 屬 公 司 統 稱「本集團」)董 事(「董 事」) 會(「董事會」)欣然宣佈本集團截至二零二三年六月三十日止三個月的未經審 核簡明綜合業績(「二零二三年第一季度業績」)。列 載 本 公 司 截 至 二 零 二 三 年 六月三十日止三個月的第一季度報告(「二零二三年第一季度報告」)全文的本 公 告,符 合 聯 交 所GEM證券上市規則(「GEM上市規則」)中有關二零二三年第一 季 度 業 績 初 步 公 告 隨 附 資 料 的 相 關 規 定。二 零 ...

Financial Performance - For the fiscal year ending March 31, 2023, Novacon Technology Group reported revenue of approximately HKD 52.6 million, a 5% increase from HKD 50.0 million in the previous year[8]. - The company's profit for the same period was approximately HKD 5.7 million, a decline of about 49% from HKD 11.2 million in the prior year, primarily due to impairment losses and increased employee benefits[8]. - Revenue from licensing and maintenance services increased by about 6% to approximately HKD 41.5 million, up from approximately HKD 39.2 million in the previous year[26]. - Revenue from initial setup and customization services slightly increased by about 2% to approximately HKD 11.1 million[26]. - Other net income for the year ended March 31, 2023, was approximately HKD 1.8 million, an increase of about 403% compared to HKD 0.4 million for the year ended March 31, 2022, primarily due to government subsidies and interest income from fixed deposits[29]. - Profit attributable to owners of the company decreased by approximately 49% to HKD 5.7 million for the year ended March 31, 2023, from HKD 11.2 million for the year ended March 31, 2022, due to increased expenses and reduced tax expenses[44]. - The effective tax rate for the year ended March 31, 2023, was approximately 17.6%, down from 19.6% for the year ended March 31, 2022, primarily due to a decrease in profit before tax[43]. Business Strategy and Expansion - Novacon has focused on expanding its professional team and retaining IT talent, establishing a subsidiary in Shenzhen to enhance its IT capabilities[9]. - To increase revenue, Novacon is expanding its services to include fintech, having established two new companies in May 2023 focused on precious metals and blockchain-based trading activities[10]. - Novacon aims to diversify its business and mitigate risks by exploring new business opportunities in the fintech market[10]. - The company plans to establish a research and development center to support its long-term growth strategy in the fintech sector[25]. - The company is committed to enhancing its financial trading solutions and expanding its market presence through selective acquisitions and strategic initiatives[74]. Operational Challenges and Risk Management - The company acknowledges the ongoing challenges posed by the global economic environment, including the residual effects of the COVID-19 pandemic and rising interest rates[9]. - The group has identified several key risks, including R&D risk, customer retention risk, and supplier concentration risk, which could significantly impact its business and financial performance[48]. - The group has implemented measures to mitigate risks associated with customer retention and supplier performance, including competitive compensation and regular evaluations[49]. - The group evaluates credit risk levels related to clients at least once a year through financial and contract asset impairment assessments[171]. Employee and Talent Management - Employee benefits expenses increased by approximately 14% to HKD 22.8 million for the year ended March 31, 2023, from HKD 19.9 million for the year ended March 31, 2022, mainly due to increased employee costs of about HKD 3.4 million[33]. - The group emphasizes employee training and development, providing regular training to ensure employees are updated with the latest knowledge and skills relevant to their roles[167]. - The group has a commitment to maintaining a safe and motivating work environment for employees, with comprehensive onboarding for new hires regarding workplace safety[167]. Corporate Governance and Compliance - The board of directors consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors[190]. - The company has adopted good corporate governance principles as outlined in the GEM Listing Rules[188]. - The roles of the Chairman and CEO are clearly separated, with Mr. Wei Ming serving as Chairman and Mr. Zhong Jiu Gen as CEO, ensuring effective corporate governance[199]. - All independent non-executive directors have confirmed their independence according to GEM Listing Rules[195]. Financial Position and Assets - As of March 31, 2023, the group's net current assets amounted to approximately HKD 70.3 million, an increase from HKD 67.7 million in 2022[47]. - The group's current assets were approximately HKD 77.5 million as of March 31, 2023, compared to HKD 72.1 million in 2022, with cash and cash equivalents accounting for about HKD 61.4 million[47]. - The group has no interest-bearing borrowings as of March 31, 2023, resulting in a net debt to total capital ratio of zero[47]. Shareholder Information and Stock Options - The company has not granted or canceled any stock options as of March 31, 2023[144]. - The stock option plan was adopted on March 29, 2019, to incentivize and reward eligible participants[135]. - The maximum number of stock options available for future grants is 12,800,000 shares, accounting for 3.2% of the total issued shares[141]. - The company aims to retain and attract talented employees through the stock option plan[136]. Client and Supplier Relationships - The group had 28 clients as of March 31, 2023, down from 30 in 2022, with the top five clients accounting for approximately 55.8% of total sales[169]. - The procurement amount from the top five suppliers represented about 82.2% of total procurement for the year ending March 31, 2023, compared to 80.0% in 2022, with the largest supplier accounting for approximately 33.6%[173]. - The group did not experience any supply shortages or delays during the year ending March 31, 2023[174]. Research and Development - The company has made significant progress in developing cloud-native versions of its financial trading solutions, including GES EX and GES IX[68]. - The company has allocated approximately HKD 4.1 million for basic market data subscriptions and corporate datasets, with an additional HKD 1.5 million for cloud server hosting services, and HKD 4.4 million for hiring 5 R&D personnel[70]. - The company plans to continue its focus on research and development, with expectations to complete certain projects by July 2023[74].

Financial Performance - For the three months ended December 31, 2022, the company reported revenue of HKD 13,249,000, an increase of 5.3% compared to HKD 12,578,000 for the same period in 2021[6]. - For the nine months ended December 31, 2022, total revenue reached HKD 41,379,000, up 11.5% from HKD 37,217,000 in the previous year[6]. - The company recorded a net profit of HKD 1,325,000 for the three months ended December 31, 2022, down 44.6% from HKD 2,390,000 in the same period of 2021[6]. - Basic earnings per share for the three months ended December 31, 2022, were HKD 0.33, a decrease of 45.0% compared to HKD 0.60 in the prior year[6]. - The total comprehensive income for the nine months ended December 31, 2022, was HKD 7,781,000, compared to HKD 8,574,000 for the same period in 2021, reflecting a decline of 9.3%[6]. - The company reported a net loss of HKD 991,000 for the nine months ended December 31, 2022, compared to a profit of HKD 470,000 in the same period of 2021[19]. - Profit attributable to the company's owners for the nine months ended December 31, 2022, was approximately HKD 7.8 million, a decrease of about 9% from HKD 8.6 million in the same period of 2021[33]. Revenue Sources - Revenue from licensing and maintenance services for the nine months ended December 31, 2022, was HKD 32,707,000, up 12.5% from HKD 29,070,000 in the previous year[14]. - Other income for the nine months ended December 31, 2022, totaled HKD 1,943,000, significantly increasing from HKD 201,000 in the same period of 2021[18]. - The company received approximately HKD 1,000,000 in wage subsidies under the Hong Kong government's employment support scheme for the period from May to July 2022[18]. Expenses and Costs - Total expenses for the nine months ended December 31, 2022, were HKD 7,349,000, compared to HKD 3,825,000 in the same period of 2021, reflecting a 92.5% increase[21]. - Employee benefit expenses for the three months ended December 31, 2022, were HKD 5,225,000, a decrease of 5.4% from HKD 5,524,000 in the previous year[6]. - Research and development expenses for the nine months ended December 31, 2022, were approximately HKD 11.9 million, compared to HKD 10.6 million in the previous year[40]. - Other expenses rose by approximately 92% to about HKD 7.3 million, mainly due to an increase in trade receivables impairment provisions by approximately HKD 2.5 million[47]. Equity and Assets - The company’s total equity as of December 31, 2022, was HKD 131,790,000, an increase from HKD 124,801,000 as of April 1, 2022[8]. - All revenue for the nine months ended December 31, 2022, was generated in Hong Kong, with non-current assets located in Hong Kong and China[16]. Corporate Governance - The company is committed to high standards of corporate governance, adhering to the principles and code provisions of the GEM Listing Rules[54]. - The company has established an audit committee to oversee financial reporting and internal controls[75]. - No directors or major shareholders have reported any conflicts of interest during the relevant period[74]. Future Plans and Strategies - The company plans to continue expanding its market presence and investing in new technology solutions to enhance its service offerings[9]. - The company has implemented strategies to manage costs effectively, resulting in a reduction in certain operational expenses[9]. - Future focus will be on the development of innovative IT products and services, as well as reliable financial trading solutions[34]. - A subsidiary, Shenzhen Gaopu Yi Technology Co., Ltd., was established in June 2022 to explore business opportunities in China and provide reliable human resources support[34]. Share Options and Ownership - The unexercised options under the 2019 share option scheme as of December 31, 2022, totaled 26.4 million shares after accounting for 6.0 million options that were forfeited during the period[58]. - The company adopted a share option scheme on March 29, 2019, to incentivize and reward contributions from eligible participants[55]. - The effective tax rate, excluding non-deductible corporate expenses post-listing, was approximately 19.4% for the nine months ended December 31, 2022, compared to 17.3% for the same period in 2021[51]. - The company recognized share-based payment expenses of approximately HKD 8,000 for the nine months ended December 31, 2022, compared to HKD 6,000 in 2021[64].

Financial Performance - The company's revenue for the three months ended June 30, 2022, was HKD 13,595,000, representing a 15.2% increase from HKD 11,799,000 in the same period of 2021[6] - The profit attributable to the company's owners for the period was HKD 2,668,000, a decrease of 11.6% compared to HKD 3,017,000 in the previous year[6] - Basic and diluted earnings per share were both HKD 0.67, down from HKD 0.75 in the same period last year, reflecting a decline of 10.7%[6] - The company reported a pre-tax profit of HKD 3,389,000, slightly down from HKD 3,613,000, a decrease of 6.2%[6] - Profit before tax decreased by approximately 6% to about HKD 3.4 million, down from approximately HKD 3.6 million in the same period last year, mainly due to a decrease in fair value changes of financial assets[48] - Profit attributable to owners of the company decreased by approximately 12% to about HKD 2.7 million, down from approximately HKD 3.0 million in the same period last year[51] Income and Expenses - Other income increased significantly to HKD 806,000 from HKD 67,000, marking a growth of 1097.0%[6] - Employee benefit expenses rose to HKD 4,906,000 from HKD 4,095,000, indicating an increase of 19.8%[6] - The cost of internet services increased to HKD 816,000 from HKD 759,000, reflecting a rise of 7.5%[6] - Other expenses increased by approximately 21% to about HKD 1.8 million, up from approximately HKD 1.5 million in the same period last year, primarily due to increases in legal and professional fees[46] - Financing costs decreased by approximately 87% to about HKD 2,000, down from approximately HKD 15,000 in the same period last year, as the group repaid all bank loans in November 2021[47] - Income tax expense increased by approximately 21% to about HKD 721,000, compared to approximately HKD 596,000 in the same period last year, due to an increase in profit before tax[50] Equity and Shareholder Information - Total equity attributable to owners increased to HKD 127,471,000 as of June 30, 2022, up from HKD 124,801,000 at the end of the previous quarter[8] - The company did not declare an interim dividend for the three months ended June 30, 2022, compared to no dividend declared in the same period of 2021[28] - As of June 30, 2022, Mr. Wai Ming holds 210,000,000 shares, representing 52.5% of the issued shares through his controlled entity, Essential Strategy[63] - Mr. Chung has 90,000,000 shares, accounting for 22.5% of the issued shares through his controlled entity, Expert Wisdom[63] - The total shares held by Essential Strategy and its beneficial owner, Mr. Wai, is 210,000,000, which is 52.5% of the issued shares[65] - The total shares held by Expert Wisdom and its beneficial owner, Mr. Chung, is 90,000,000, which is 22.5% of the issued shares[65] Corporate Governance - The company is committed to high levels of corporate governance, adhering to the GEM Listing Rules and principles of good governance[53] - The company has established an audit committee in compliance with GEM Listing Rules, which reviews financial reporting and internal controls[73] - The audit committee consists of three independent non-executive directors, with Mr. Lo Chi Hung as the chairman[73] - The company confirms that all directors have complied with the securities trading code during the relevant period[67] - There are no known breaches of the securities trading code by any directors during the relevant period[68] - The company has not granted any rights to directors or senior management to acquire shares or securities during the relevant period[69] Future Outlook and Strategy - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[76] - The company is investing in R&D for new technologies, with an allocation of 10 million HKD for the upcoming year[76] - Market expansion plans include entering two new regions, aiming for a 20% increase in market share within those areas[76] - The company has identified potential acquisition targets to enhance its product offerings and market presence[76] - A new product line is expected to launch in Q3 2022, anticipated to contribute an additional 5 million HKD in revenue[76] - The company has implemented a new strategy focusing on digital transformation to improve operational efficiency[76] Stock Options and Share-Based Payments - The company adopted a share option scheme to incentivize and reward contributions from eligible participants[54] - A total of 36,400,000 stock options were granted under the 2019 stock option plan, with 50% vesting in 2020 and the other 50% in 2021[55] - As of June 30, 2022, 29,200,000 stock options were exercisable, an increase from 16,200,000 in the previous year[56] - The fair value of the stock options granted in 2019 was calculated using the Black-Scholes model, with expected volatility of 55.89% for the first batch and 56.23% for the second batch[56] - A total of 1,600,000 stock options were granted under the 2020 stock option plan, with 50% vesting in 2021 and the other 50% in 2022[57] - As of June 30, 2022, 400,000 stock options from the 2020 plan were exercisable, compared to none in the previous year[60] - The fair value of the stock options granted in 2020 was also calculated using the Black-Scholes model, with expected volatility of 55.27% for the first batch and 54.01% for the second batch[59] - The company recognized approximately HKD 2,000 in share-based payment expenses for the 2020 stock options during the three months ended June 30, 2022[59] - The exercise price for the 2019 stock options was set at HKD 0.178 per share, while the exercise price for the 2020 stock options was HKD 0.095 per share[56][59] - The expected term for the 2019 stock options was 5.5 years for the first batch and 6.0 years for the second batch[56] - The company had no share-based payment expenses recorded for the 2019 stock options during the three months ended June 30, 2022[56] Market and Operational Performance - The company operates primarily in Hong Kong, with all revenue generated in this region for the three months ended June 30, 2022[16] - Major customers contributed significantly to total sales, with Customer A generating HKD 1,974,000 and Customer D generating HKD 1,596,000 in the three months ended June 30, 2022[18] - The company reported a significant increase in user data, with a growth rate of 25% year-over-year in active users[76] - The company reported a net profit margin of 12% for the last quarter, reflecting improved operational performance[76]

NOVACON TECHNOLOGY GROUP LIMITED 連成科技集團有限公 司 (於開曼群島註冊成立的有限公司) 股份代號 : 8635 年報 聯交所GEM特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小型公司提供一個上市的市場。有意投資者應了 解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣的證券承受較大的市場波動風險，同 時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不 就因本報告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 本報告的資料乃遵照GEM上市規則而刊載，旨在提供有關本公司的資料；本公司各董事願就本報告共同及個別地承擔全部 責任。各董事在作出一切合理查詢後確認，就彼等所深知及確信，本報告所載資料在各重要方面均屬準確完備，並無誤導 或欺詐成分，且並無遺漏任何其他事項，足以令致本報告或其所載任何陳述產生誤導。 目錄 | 公司資料 | ...