Financial Performance - The Group recorded a loss of approximately HK$61,680,000 for the year ended December 31, 2019, compared to a loss of approximately HK$244,267,000 in 2018[19]. - The consolidated loss attributable to the owners of the Company amounted to approximately HK$67,200,000 for the year, down from a loss of approximately HK$251,411,000 in 2018[19]. - The Group's performance reflects a significant improvement in losses compared to the previous year, indicating potential recovery[19]. - The Group recorded a net loss of approximately HK$61,680,000 for the Year, a significant improvement from a net loss of approximately HK$244,267,000 in 2018[143]. - The net loss attributable to owners of the Company was approximately HK$67,200,000, compared to HK$251,411,000 in 2018[145]. Revenue Generation - Revenue generated from the Software Business was approximately HK$73,994,000, representing about 20.0% of the Group's total turnover from continuing operations for the year[22]. - Revenue from the B2C Online Sales Platform and B2B Product Trading Business accounted for approximately 67.5% of the Group's total turnover from continuing operations for the year[28]. - Revenue from the Corporate Management Solutions and I.T. Contract Services Business segment was approximately HK$46,347,000, representing a 13.1% increase compared to approximately HK$40,967,000 in 2018[53]. - Revenue from the B2C Online Sales Platform and B2B Product Trading Business was approximately HK$249,498,000 for the year, with a segment profit of approximately HK$4,107,000[66]. Business Segments - The Group is engaged in multiple business segments, including Software Business, Corporate Management Solutions, I.T. Contract Services, B2C Online Sales, B2B Product Trading, and Securities Investment[21]. - The Software Business remains a key revenue stream and pillar business for the Group, with ongoing reviews and upgrades of software products[22]. - The Corporate Management Solutions and I.T. Contract Services Business recorded a loss of approximately HK$6,794,000, a decrease of 58.4% from a loss of approximately HK$16,348,000 in 2018[53]. - The Group has commenced operations of a B2B Product Trading business to diversify its portfolio and increase market penetration[68]. Investment Strategy - The Group aims to strategically invest its capital to generate long-term and stable revenue while achieving further business diversification[30]. - The Group's strategic move to make a pre-IPO investment in March 2019 is aimed at potentially reviving the Securities Investment Business[28]. - The Group plans to explore potential investment opportunities while monitoring the financial market and the performance of the Securities Investment Business due to expected instabilities from trade tariffs and global interest rate fluctuations[95]. - The Group's investment strategy is subject to the volatile economic situation, indicating a cautious approach to future investments[89]. Market Conditions - The Group's business operations were affected by the volatility of the global macro-economic environment in 2019, presenting both risks and opportunities[21]. - The overall market conditions in 2019 presented challenges that the Group navigated while seeking new business opportunities[21]. - The software business remained weak during the year due to slower-than-expected growth in emerging markets and fierce competition in the I.T. industry[45]. - The recent coronavirus pandemic may potentially boost the number of PC users and software product sales, impacting the financial performance of the Software Business[47]. Cash and Assets - As of December 31, 2019, the Group had cash and cash equivalents and pledged bank deposits of approximately HK$81,350,000 and net current assets of approximately HK$152,240,000[30]. - The Group's total assets amounted to approximately HK$370,896,000, a decrease from approximately HK$433,035,000 in 2018, while total liabilities increased to approximately HK$64,320,000 from HK$53,723,000[149]. - The gearing ratio as of December 31, 2019, was approximately 17.3%, up from 12.4% in 2018[149]. - Trade and other receivables increased to approximately HK$85,017,000 as of December 31, 2019, from approximately HK$36,725,000 as of December 31, 2018, primarily due to new business development in the B2C Online Sales Platform and B2B Product Trading Business[167]. Legal Proceedings - The Group is involved in three civil legal proceedings related to the AP Acquisition, which may impact its operations[170]. - Legal proceedings were initiated against the Vendor and Guarantor for the Adjustment Amount, including claims for interests and costs[181]. - An amended writ of summons was filed on 26 September 2019, claiming damages of HK$20,400,000 against former directors Chan and Lim for potential breaches of duty[183]. - Legal proceedings have been initiated against the defendants for the delivery of Full Business Records and accounting for assets controlled by the defendants[196]. Software Development - The Boom Max Group launched several upgraded software products in 2019, including IObit Software Updater 2, IObit Malware Fighter 7, IObit Uninstaller 9.0, Driver Booster 7.0, and Advanced SystemCare 13.0[44]. - The Group has focused on enhancing its software offerings to address evolving cyber threats and improve user experience[41]. - The Group plans to enhance its software products and expand distribution channels by cooperating closely with local dealers and affiliates[47]. Shareholder Returns - The Directors do not recommend the payment of a dividend for the year, consistent with 2018[20]. - The Group plans to maintain a balance between risk and return while pursuing stable business growth and sustainable returns for shareholders[33].
智易控股(08100) - 2019 - 年度财报