电子交易集团(08036) - 2025 - 中期业绩

Report Statement and Company Information Interim Results Announcement This announcement presents the unaudited interim results of eBroker Systems Limited and its subsidiaries for the six months ended June 30, 2025, complying with GEM Listing Rules and providing company details - The company released its unaudited interim results announcement for the six months ended June 30, 2025, on August 28, 2025[3] - The announcement contains the full 2025 interim report, complying with the GEM Listing Rules of the Stock Exchange[3] - The Board of Directors includes Executive Directors Mr. Chan Lap Tak (Chairman), Mr. Lo Chi Ho, Ms. Chan Ka Yan, and Independent Non-executive Directors Mr. Chan Chi Kwong, Mr. Liu Kin Sing, and Mr. Au Yeung Po Fung[5] Characteristics of GEM This section outlines the features of the GEM market, highlighting its platform for small and medium-sized companies with higher investment risks and advising investors to prudently assess potential volatility and liquidity risks - The GEM market provides a listing platform for small and medium-sized companies with higher investment risks compared to other listed companies on the Stock Exchange[9] - Investors should understand the potential risks of investing in GEM companies and make investment decisions cautiously[9] - GEM securities may be subject to significant market volatility and high liquidity cannot be guaranteed[9] Company Information Board of Directors and Corporate Structure This section lists the company's Board members, including executive and independent non-executive directors, company secretary, compliance officer, authorized representatives, and the composition of audit, remuneration, and nomination committees - Executive Directors include Chairman Mr. Chan Lap Tak, Chief Executive Officer Mr. Lo Chi Ho, and Ms. Chan Ka Yan[13] - Independent Non-executive Directors are Mr. Chan Chi Kwong, Mr. Liu Kin Sing, and Mr. Au Yeung Po Fung[13] - The Audit Committee Chairman is Mr. Au Yeung Po Fung, the Remuneration Committee Chairman is Mr. Liu Kin Sing, and the Nomination Committee Chairman is Mr. Chan Lap Tak[13] Key Contact and Registration Information This section provides key contact and registration details, including the company's auditor, principal bankers, registered office, principal place of business in Hong Kong, legal advisors, share registrar, stock code, and website - The company's auditor is Kadorie CPA Limited[13] - The company's registered office is in the Cayman Islands, with its principal place of business in Hong Kong at Global Financial Centre North Tower, Canton Road, Tsim Sha Tsui, Kowloon[13] - The company's stock code is 8036, and its official website is **www.ebrokersystems.com**[14](index=14&type=chunk) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited) Performance Overview for the Six Months Ended June 30, 2025 For the six months ended June 30, 2025, the Group achieved a profit of HK$1.107 million, a significant improvement from a loss of HK$1.350 million in the prior period, primarily driven by a substantial increase in net other gains despite a decrease in revenue Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 14,125 | 15,904 | | Other income | 253 | 551 | | Net other gains and losses | 2,263 | (373) | | Operating profit/(loss) | 1,206 | (1,269) | | Profit/(loss) before tax | 1,107 | (1,314) | | Profit/(loss) for the period attributable to owners of the Company | 1,107 | (1,350) | | Basic earnings/(loss) per share (HK cents per share) | 0.1 | (0.12) | - Profit for the period attributable to owners of the Company turned from a loss of HK$1,350 thousand in the prior period of 2024 to a profit of HK$1,107 thousand in the current period of 2025[15] - Basic earnings per share improved from a loss of HK$0.12 cents per share in the prior period of 2024 to earnings of HK$0.1 cents per share in the current period of 2025[15] Condensed Consolidated Statement of Financial Position (Unaudited) Financial Position as at June 30, 2025 As at June 30, 2025, the Group's net assets increased to HK$61.954 million, with stable net current assets, a slight increase in non-current assets driven by intangible assets, and a significant increase in cash and cash equivalents within current assets Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Non-current assets | 25,795 | 24,925 | | Current assets | 43,730 | 44,039 | | Current liabilities | 6,280 | 6,591 | | Net current assets | 37,450 | 37,448 | | Net assets | 61,954 | 60,380 | | Cash and cash equivalents | 19,965 | 9,645 | | Trade and other receivables | 12,913 | 15,393 | | Financial assets at fair value through profit or loss | 10,389 | 8,154 | - Net assets increased from HK$60,380 thousand as at December 31, 2024, to HK$61,954 thousand as at June 30, 2025[17] - Cash and cash equivalents significantly increased from HK$9,645 thousand to HK$19,965 thousand, while trade and other receivables decreased[17] Condensed Consolidated Statement of Changes in Equity (Unaudited) Changes in Equity for the Six Months Ended June 30, 2025 For the six months ended June 30, 2025, the Group's total equity increased to HK$61.954 million, driven by a total comprehensive income of HK$1.513 million and shares granted under the share award scheme of HK$61 thousand Condensed Consolidated Statement of Changes in Equity Key Data | Indicator | June 30, 2025 (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total equity at beginning of period | 60,380 | 62,568 | | Shares granted under share award scheme | 61 | 59 | | Total comprehensive income/(expense) for the period | 1,513 | (1,371) | | Total equity at end of period | 61,954 | 61,256 | - As at June 30, 2025, total equity was HK$61,954 thousand, an increase from HK$60,380 thousand as at January 1, 2025[20] - Total comprehensive income for the period was HK$1,513 thousand, compared to a total comprehensive expense of HK$1,371 thousand in the prior period, indicating significant performance improvement[20] Condensed Consolidated Statement of Cash Flows (Unaudited) Cash Flows for the Six Months Ended June 30, 2025 For the six months ended June 30, 2025, the Group's cash and cash equivalents increased by HK$10.165 million, primarily due to positive cash flows from operating and investing activities, with the period-end cash balance reaching HK$19.965 million Condensed Consolidated Statement of Cash Flows Key Data | Indicator | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | 2,739 | (255) | | Net cash generated from investing activities | 8,312 | 7,551 | | Net cash used in financing activities | (886) | (787) | | Net increase in cash and cash equivalents | 10,165 | 1,897 | | Cash and cash equivalents at end of period | 19,965 | 30,414 | - Net cash generated from operating activities turned from cash used of HK$255 thousand in the prior period of 2024 to cash generated of HK$2,739 thousand in the current period of 2025[22] - Net increase in cash and cash equivalents significantly rose from HK$1,897 thousand in the prior period of 2024 to HK$10,165 thousand[22] Notes to the Condensed Consolidated Financial Statements 1. General Information This note outlines eBroker Systems Limited's registration details, including its incorporation date in the Cayman Islands and its listing date on GEM of the Stock Exchange of Hong Kong - eBroker Systems Limited was incorporated in the Cayman Islands on May 23, 2016[23] - The company's shares were listed on GEM of the Stock Exchange of Hong Kong on February 19, 2019[23] 2. Basis of Preparation This note explains that the unaudited condensed consolidated financial statements are prepared in accordance with HKAS 34 "Interim Financial Reporting," consistent with the accounting policies used in the 2024 audited consolidated financial statements, while also noting the application of accounting estimates and assumptions - The unaudited condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[24] - The significant accounting policies adopted are consistent with those used in the 2024 audited consolidated financial statements, except for new and revised standards[24] 3. Adoption of New and Revised Hong Kong Financial Reporting Standards This note indicates that the Board expects the adoption of new and revised HKFRSs effective January 1, 2025, will not materially impact current and prior period results and financial position, and the Group is evaluating the potential impact of standards not yet effective - The Directors believe that the adoption of new and revised Hong Kong Financial Reporting Standards will not have a material impact on the results and financial position for the current and prior periods[25] - The Group is evaluating the potential impact of Hong Kong Financial Reporting Standards that are not yet effective or have not been early adopted[25] 4. Revenue This note details the Group's revenue breakdown by major product or service lines and geographical regions, showing a decrease in total revenue from HK$15.904 million in the prior period of 2024 to HK$14.125 million in the current period of 2025, primarily due to reduced income from front-office trading and back-office settlement services, despite growth in the Mainland China market Revenue by Product or Service Line | Product or Service Line | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Front-office trading solution services income | 6,921 | 8,027 | | Back-office settlement solution services income | 3,996 | 4,726 | | Installation and customization services income | 1,989 | 1,323 | | Managed cloud services income | 756 | 1,038 | | Others | 463 | 790 | | Total | 14,125 | 15,904 | Revenue by Major Geographical Market | Major Geographical Market | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 12,758 | 14,846 | | Macau | 302 | 598 | | Mainland China | 984 | 393 | | Singapore | 81 | 67 | | Total | 14,125 | 15,904 | - Total revenue decreased by 11.2% year-on-year, primarily due to a decline in front-office trading solution services income and back-office settlement solution services income[27] 5. Other Income, and Net Other Gains and Losses This note discloses the Group's other income and net other gains and losses, with other income decreasing year-on-year due to lower bank interest and dividend income, but significant fair value gains from financial assets at fair value through profit or loss resulted in a shift from net loss to net gain Other Income | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Bank interest income | 232 | 431 | | Dividend income from financial assets at fair value through profit or loss | 16 | 114 | | Government grants | 5 | 6 | | Total | 253 | 551 | Net Other Gains and Losses | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Fair value gains/(losses) on financial assets at fair value through profit or loss – listed equity investments | 2,263 | (373) | - Other income decreased from HK$551 thousand in the prior period of 2024 to HK$253 thousand in the current period of 2025[28] - Fair value gains on financial assets at fair value through profit or loss turned from a loss of HK$373 thousand in the prior period of 2024 to a gain of HK$2,263 thousand in the current period of 2025[28] 6. Other Operating Expenses This note presents the Group's other operating expenses, totaling HK$4.797 million for the six months ended June 30, 2025, a decrease from HK$5.359 million in the prior period of 2024, mainly due to reduced service costs, legal and professional fees, and exchange losses Other Operating Expenses | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Service costs | 872 | 1,025 | | Amortisation of intangible assets | 669 | 669 | | Auditor's remuneration | 343 | 378 | | Legal and professional fees | 973 | 1,080 | | Office expenses | 818 | 729 | | Net exchange gains/(losses) | (205) | 140 | | Total other operating expenses | 4,797 | 5,359 | - Total other operating expenses decreased by 10.5% year-on-year, from HK$5,359 thousand to HK$4,797 thousand[29] - Net exchange gains/(losses) turned from a loss of HK$140 thousand in the prior period of 2024 to a gain of HK$205 thousand in the current period of 2025[29] 7. Segment Information This note clarifies that the Group has only one reportable segment, providing financial software solution services to clients, with geographical revenue data indicating Hong Kong remains the primary market, but Mainland China's contribution has increased - The Group has one reportable segment, which is the provision of services to customers, primarily involving the sale of computer products, provision of contractual trading solutions, and development of electronic trading systems[30] Revenue by Geographical Location | Region | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 12,758 | 14,846 | | Macau | 302 | 598 | | Mainland China | 984 | 393 | | Singapore | 81 | 67 | | Total | 14,125 | 15,904 | - No individual customer contributed more than 10% of total revenue during the period[30] 8. Income Tax Expense This note shows the Group's income tax expense for the six months ended June 30, 2025, was zero, a significant reduction from HK$36 thousand in the prior period, mainly due to tax losses incurred by a PRC subsidiary Income Tax Expense | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current tax – Hong Kong Profits Tax | – | 36 | - Hong Kong Profits Tax rate is 8.25% on the first HK$2 million of assessable profits and 16.5% thereafter[31] - No provision for corporate income tax was made for the PRC subsidiary during the period due to tax losses incurred[31] 9. Profit/(Loss) for the Period This note details the various expenses and income affecting the Group's profit/loss for the period, including depreciation, net reversal of impairment loss on trade receivables, and finance costs, with profit primarily benefiting from the net reversal of impairment loss on trade receivables Major Items Affecting Profit/(Loss) for the Period | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Auditor's remuneration | 343 | 378 | | Depreciation of property, plant and equipment | 422 | 420 | | Depreciation of right-of-use assets | 806 | 726 | | Net reversal of impairment loss on trade receivables | (171) | (7) | | Interest expense on lease liabilities | 99 | 45 | - Net reversal of impairment loss on trade receivables was HK$171 thousand, positively impacting profit for the period[32] - Finance costs, primarily interest expense on lease liabilities, increased from HK$45 thousand in the prior period of 2024 to HK$99 thousand in the current period of 2025[33] 10. Earnings/(Loss) Per Share This note calculates the Group's basic earnings per share for the six months ended June 30, 2025, at HK$0.1 cents, a significant improvement from a loss of HK$0.12 cents per share in the prior period, with no diluted earnings per share calculated due to the absence of potentially dilutive ordinary shares Earnings/(Loss) Per Share Calculation | Indicator | 2025 (HK$ thousand/thousand shares) | 2024 (HK$ thousand/thousand shares) | | :--- | :--- | :--- | | Profit/(loss) attributable to owners of the Company | 1,107 | (1,350) | | Weighted average number of ordinary shares | 1,147,095 | 1,144,860 | | Basic earnings/(loss) per share (HK cents per share) | 0.1 | (0.12) | - Basic earnings per share improved from a loss of HK$0.12 cents per share in the prior period of 2024 to earnings of HK$0.1 cents per share in the current period of 2025[35] - Diluted earnings/(loss) per share was not calculated as there were no potentially dilutive ordinary shares[35] 11. Dividends This note states that the Board does not recommend the payment of any dividend for the six months ended June 30, 2025, consistent with the prior period - The Directors do not recommend the payment of any dividend for the six months ended June 30, 2025 (June 30, 2024: nil HK$)[36] 12. Contract Assets and Contract Liabilities This note details the Group's contract assets and liabilities, with contract assets slightly increasing due to completed but unbilled work, and contract liabilities significantly growing due to increased prepayments from a rise in overall installation projects Contract Assets and Contract Liabilities | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Contract assets related to provision of services | 399 | 375 | | Contract liabilities related to provision of services | 1,747 | 1,216 | - The increase in contract assets is primarily due to an increase in work completed but not yet billed[37] - The increase in contract liabilities is mainly due to an increase in prepayments resulting from an increase in overall installation projects[38] 13. Trade and Other Receivables This note provides a detailed analysis of trade and other receivables, showing a decrease in the total from HK$16.208 million as at December 31, 2024, to HK$13.728 million as at June 30, 2025, mainly due to a reduction in amounts due from brokers, with trade terms typically offering an average credit period of 60 days Trade and Other Receivables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables (net of impairment loss) | 2,813 | 2,712 | | Prepayments, deposits and other receivables | 1,402 | 1,447 | | Amount due from a trustee | 661 | 662 | | Amounts due from brokers | 8,852 | 11,387 | | Total | 13,728 | 16,208 | - Amounts due from brokers decreased from HK$11,387 thousand as at December 31, 2024, to HK$8,852 thousand as at June 30, 2025[40] Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 1,976 | 1,174 | | 31 to 60 days | 212 | 347 | | 61 to 90 days | 118 | 267 | | 91 to 120 days | 144 | 386 | | Over 120 days | 363 | 538 | | Total | 2,813 | 2,712 | 14. Trade and Other Payables This note presents the Group's trade and other payables, which slightly increased from HK$2.941 million as at December 31, 2024, to HK$3.084 million as at June 30, 2025, primarily due to an increase in accrued expenses and other payables Trade and Other Payables | Item | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 177 | 214 | | Accrued expenses and other payables | 2,907 | 2,727 | | Total | 3,084 | 2,941 | - Accrued expenses and other payables increased from HK$2,727 thousand as at December 31, 2024, to HK$2,907 thousand as at June 30, 2025[43] Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 101 | 136 | | 31 to 60 days | 74 | 76 | | 61 to 90 days | – | – | | Over 90 days | 2 | 2 | | Total | 177 | 214 | 15. Share Capital This note outlines the Group's capital management objective to ensure continuous operation and maximize shareholder returns, with a stable share capital structure of 1,230,000 thousand issued shares and a total liabilities to total assets ratio of approximately 10.9% as at June 30, 2025 - The Group's capital management objective is to ensure its ability to continue as a going concern and to maximize returns to shareholders through optimizing the debt and equity balance[45] - As at June 30, 2025, the Group's total liabilities to total assets ratio was approximately 10.9% (December 31, 2024: approximately 12.44%)[45] Share Capital Structure | Item | Par Value (HK$) | Number of Shares (thousand shares) | Amount (HK$ thousand) | | :--- | :--- | :--- | :--- | | Authorised ordinary shares | 0.001 | 5,000,000 | 5,000 | | Issued and fully paid ordinary shares | 0.001 | 1,230,000 | 1,230 | 16. Right-of-Use Assets This note states that for the six months ended June 30, 2025, the Group did not add any new right-of-use assets and recognized approximately HK$806 thousand in depreciation expense for right-of-use assets - For the six months ended June 30, 2025, the Group added approximately nil HK$ in right-of-use assets (December 31, 2024: HK$947 thousand)[47] - Depreciation expense of approximately HK$806 thousand for right-of-use assets was recognized during the period (December 31, 2024: approximately HK$1,508 thousand)[47] 17. Property, Plant and Equipment This note discloses that for the six months ended June 30, 2025, the Group purchased approximately HK$40 thousand of property, plant and equipment - For the six months ended June 30, 2025, the Group purchased approximately HK$40 thousand of property, plant and equipment (December 31, 2024: approximately HK$53 thousand)[48] 18. Intangible Assets This note states that for the six months ended June 30, 2025, the Group capitalized development costs of approximately HK$1.986 million - For the six months ended June 30, 2025, the Group capitalized development costs of approximately HK$1,986 thousand (December 31, 2024: approximately HK$3,348 thousand)[49] 19. Reserves This note indicates that the Group's reserve amounts and changes are presented in the condensed consolidated statement of changes in equity - The Group's reserve amounts and corresponding changes for the current period and the prior period of 2024 are presented in the unaudited condensed consolidated statement of changes in equity in this report[50] 20. Contingent Liabilities This note declares that as at June 30, 2025, the Group had no significant contingent liabilities - As at June 30, 2025, the Group had no significant contingent liabilities[50] 21. Events After the Reporting Period This note states that no significant events occurred after June 30, 2025, up to the date of this report - No significant events occurred after June 30, 2025, and up to the date of this report[51] 22. Approval of Financial Statements This note confirms that the condensed consolidated financial statements for the six months ended June 30, 2025, were approved and authorized for issue by the Board of Directors on August 28, 2025 - The condensed consolidated financial statements for the six months ended June 30, 2025, were approved and authorized for issue by the Board of Directors on August 28, 2025[52] Management Discussion and Analysis Business Review The Group primarily provides financial software solutions to Hong Kong financial institutions, with revenue of approximately HK$14.1 million for the six months ended June 30, 2025, a year-on-year decrease of 11.2%; however, profit attributable to owners of the Company significantly increased by 182% to approximately HK$1.1 million from a loss of HK$1.4 million in the prior period, mainly due to increased non-recurring installation and customization services and other income growth - The Group primarily provides financial software solution services to Hong Kong financial institutions, including front-office trading, back-office settlement, installation and customization, and managed cloud services[53] Business Review Key Financial Data | Indicator | Six Months Ended June 30, 2025 (HK$ million) | Six Months Ended June 30, 2024 (HK$ million) | | :--- | :--- | :--- | | Revenue | 14.1 | 15.9 | | Profit/(loss) attributable to owners of the Company | 1.1 | (1.4) | - The 182% increase in profit is mainly attributable to an increase of approximately HK$0.7 million in non-recurring installation and customization services and an increase of HK$2.6 million in other income, coupled with a reduction of approximately HK$1.4 million in staff costs[53] Outlook Looking ahead, the Group anticipates continued macroeconomic uncertainties but will proactively address challenges and capitalize on opportunities from technological advancements and innovation to achieve sustainable business growth and long-term shareholder value - The macroeconomic environment will continue to face uncertainties arising from ongoing geopolitical developments and rapid technological innovation[54] - The Group will continue to address challenges while seizing opportunities presented by technological advancements and innovation to achieve sustainable business growth and long-term shareholder interests[54] Financial Review This section provides a detailed review of the Group's financial performance for the six months ended June 30, 2025, including changes in revenue, costs, and expenses, explaining the key drivers behind the shift from loss to profit Revenue The Group's total revenue decreased by 11.2% year-on-year to HK$14.1 million, primarily due to a decline in income from front-office trading solution services and back-office settlement solution services - Total revenue was approximately HK$14.1 million, a decrease of approximately 11.2% compared to HK$15.9 million in the prior period[56] Major Service Line Revenue Changes | Service Line | 2025 (HK$ million) | 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Back-office settlement solution services income | 4.0 | 4.7 | -15.4% | | Front-office trading solution services income | 6.9 | 8.0 | -13.8% | Purchases and Changes in Inventories For the six months ended June 30, 2025, the Group's purchases and changes in inventories were nil, a 100% decrease from the prior period, primarily because no products were sold during the period - Purchases and changes in inventories for the six months ended June 30, 2025, were nil HK$, a decrease of approximately 100% compared to approximately HK$4 thousand in the prior period[57] - This decrease was primarily due to the Group having no product sales for the six months ended June 30, 2025[57] Profit Before Tax The Group's profit before tax was approximately HK$1.1 million, a significant increase of 184.2% from a loss before tax of HK$1.3 million in the prior period, mainly driven by an increase of HK$2.6 million in other income Profit Before Tax Changes | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Profit/(loss) before tax | 1.1 | (1.3) | +184.2% | - This increase is mainly due to an increase of approximately HK$2.6 million in other income for the six months ended June 30, 2025[58] Other Income The Group's other income decreased to HK$253 thousand, primarily due to a decline in bank interest income and dividend income Other Income Changes | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Total other income | 253 | 551 | -298 | | Decrease in interest income | - | - | -199 | | Decrease in dividend income | - | - | -98 | - The decrease in other income is mainly due to a reduction of approximately HK$199 thousand in interest income and approximately HK$98 thousand in dividend income[59] Staff Costs For the six months ended June 30, 2025, the Group's staff costs decreased by approximately HK$1.4 million to HK$9.4 million Staff Costs Changes | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | Change (HK$ million) | | :--- | :--- | :--- | :--- | | Staff costs | 9.4 | 10.8 | -1.4 | Depreciation The Group's depreciation expense increased by approximately HK$82 thousand, a year-on-year growth of 7.2% to HK$1.2 million Depreciation Expense Changes | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Depreciation expense | 1.2 | 1.1 | +7.2% | Other Operating Expenses The Group's other operating expenses decreased by approximately 10.5% to HK$4.8 million, primarily due to reductions in legal and professional fees, service costs, and exchange losses Other Operating Expenses Changes | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Total other operating expenses | 4.8 | 5.4 | -10.5% | - The decrease is mainly attributable to a reduction of approximately HK$0.1 million in legal and professional fees, approximately HK$0.2 million in service costs, and approximately HK$0.3 million in exchange losses[62] Income Tax Expense The Group's income tax expense was nil, a 100% decrease from the prior period, primarily due to a reduction in profit before tax during the period Income Tax Expense Changes | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Income tax expense | 0 | 36 | -100% | - This decrease is due to a reduction in profit before tax for the six months ended June 30, 2025[63] Profit for the Period Attributable to Owners of the Company Profit for the period attributable to owners of the Company was approximately HK$1.1 million, a significant increase of 182.0% from a loss of HK$1.4 million in the prior period, primarily due to an increase of approximately HK$2.6 million in other income Profit for the Period Attributable to Owners of the Company Changes | Indicator | 2025 (HK$ million) | 2024 (HK$ million) | Change (%) | | :--- | :--- | :--- | :--- | | Profit/(loss) for the period attributable to owners of the Company | 1.1 | (1.4) | +182.0% | - The increase is mainly attributable to an increase of approximately HK$2.6 million in other income for the six months ended June 30, 2025[65] Liquidity and Financial Resources The Group's operations are primarily funded by cash generated from operations; as at June 30, 2025, net current assets were approximately HK$37.5 million, total current assets were approximately HK$43.7 million, with cash and cash equivalents significantly increasing to HK$20.0 million, and the Group had no interest-bearing borrowings - The Group's operations are primarily funded by cash generated from operating activities[66] Liquidity Overview | Indicator | June 30, 2025 (HK$ million) | December 31, 2024 (HK$ million) | | :--- | :--- | :--- | | Net current assets | 37.5 | 37.4 | | Total current assets | 43.7 | 44.0 | | Cash and cash equivalents | 20.0 | 9.6 | | Financial assets at fair value through profit or loss | 10.4 | 8.2 | | Trade and other receivables | 12.9 | 15.4 | - As at June 30, 2025, the Group had no interest-bearing or non-interest-bearing borrowings, rendering the gearing ratio inapplicable for analysis[66] Key Risks and Uncertainties The Group faces key risks including R&D failing to keep pace with technological advancements, trade receivables recovery risk leading to impairment losses, and financial risks such as credit risk, liquidity risk, and interest rate risk - Key risks include the possibility that R&D may not keep pace with technological advancements crucial for the Group's competitiveness[67] - The Group may be unable to recover its trade receivables in a timely manner and may be required to record impairment losses[67] - The business faces various financial risks, including credit risk, liquidity risk, and interest rate risk[67] Capital Structure Since its listing on GEM of the Stock Exchange on February 19, 2019, the company's capital structure has remained unchanged, primarily comprising issued share capital and reserves - The shares were listed on GEM of the Stock Exchange on February 19, 2019, and the capital structure has remained unchanged since then[68] - As at June 30, 2025, the company's capital structure primarily comprised issued share capital and reserves[68] Purchase, Sale or Redemption of Securities by the Company and its Subsidiaries For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's securities, convertible securities, share options, warrants, or similar rights - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's securities[69] Issue of Securities or Sale of Treasury Shares For the six months ended June 30, 2025, neither the company nor any of its subsidiaries issued any equity securities, convertible securities, share options, warrants, or similar rights, nor did they sell any treasury shares for cash - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries issued any equity securities, convertible securities, share options, warrants, or similar rights[70] - No treasury shares were sold for cash during the period[70] Pledged Assets As at June 30, 2025, the Group had no pledged assets - As at June 30, 2025, the Group had no pledged assets (December 31, 2024: nil HK$)[71] Material Acquisitions and Disposals For the six months ended June 30, 2025, the Group did not undertake any material investments in subsidiaries or any material acquisitions and disposals - For the six months ended June 30, 2025, the Group did not undertake any material investments in subsidiaries or any material acquisitions and disposals[72] Capital Commitments and Contingent Liabilities As at June 30, 2025, the Group had no significant capital commitments or contingent liabilities - As at June 30, 2025, the Group had no significant capital commitments or contingent liabilities[73] Exchange Rate Fluctuation Risk The Group's revenue and costs are primarily denominated in Hong Kong Dollars, with some costs in Renminbi; currently, there is no foreign currency hedging policy, but the Board continuously monitors foreign exchange risk and will consider hedging when necessary - The Group's revenue and costs are primarily denominated in Hong Kong Dollars, with some costs denominated in Renminbi[74] - The Group currently has no foreign currency hedging policy, but the Directors continuously monitor relevant foreign exchange risks and will consider hedging when necessary[74] Credit Risk The Group's credit risk primarily arises from cash and cash equivalents, as well as receivables and contract assets from customer contracts; with bank balances held in recognized banks and a comprehensive credit policy, management expects no significant credit risk - The Group's credit risk primarily arises from cash and cash equivalents, and receivables and contract assets from contracts with customers[76] - All bank balances are deposited with recognized banks in Hong Kong, and with a comprehensive credit policy, management expects no significant credit risk[76] Liquidity Risk The Group's policy is to continuously monitor funding and anticipated liquidity requirements to ensure sufficient cash reserves to meet both short-term and long-term liquidity needs - The Group's policy is to constantly monitor funding and anticipated liquidity requirements to ensure sufficient cash reserves to meet the Group's short-term and long-term liquidity needs[77] Interest Rate Risk The Group's interest rate risk stems from its bank deposits, which bear floating interest rates; however, with no other interest-bearing assets and liabilities, the Group has no significant interest rate risk - The Group's interest rate risk arises from its bank deposits, which bear floating interest rates[78] - The Group has no significant interest rate risk, and its income and operating cash flows are largely unaffected by changes in floating interest rates[78] Human Resources and Remuneration Policy As at June 30, 2025, the Group had 51 full-time employees; remuneration policy is determined based on qualifications, function, experience, performance, and market conditions, and is regularly reviewed; the Group provides training and has a share option scheme and share award scheme to incentivize employees - As at June 30, 2025, the Group had 51 full-time employees (2024: 55 employees)[79] - Employee remuneration is determined based on qualifications, function, experience, work performance, and local market conditions, and is reviewed regularly[79] - The company has a share option scheme (adopted on January 22, 2019) and a share award scheme (adopted on August 12, 2019) to recognize and reward employee contributions[79] Changes in Board Members Ms. Chan Ka Yan was appointed as an Executive Director of the company effective May 13, 2024 - Ms. Chan Ka Yan was appointed as an Executive Director of the company effective May 13, 2024[80] Material Investments and Plans for Material Investments or Capital Assets Except as disclosed in this report, the Group has no material investments or any other future plans for material investments or capital assets - Except as disclosed herein, the Group has no material investments and no other future plans for material investments or capital assets[81] Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures As at June 30, 2025, the company's Directors and Chief Executive held long positions in the company's shares, with Mr. Chan Lap Tak holding 0.19% through spouse's interest, Ms. Chan Ka Yan beneficially holding 0.18%, and Mr. Lo Chi Ho beneficially holding 0.99% Directors' and Chief Executive's Long Positions | Director Name | Capacity and Nature of Interest | Number of Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Mr. Chan Lap Tak | Interest of spouse | 2,291,420 | 0.19% | | Ms. Chan Ka Yan | Beneficial interest | 2,240,000 | 0.18% | | Mr. Lo Chi Ho | Beneficial interest | 12,210,010 | 0.99% | - Mr. Lo Chi Ho's interests include 10,810,010 shares and vested award shares of 1,190,000 shares and 210,000 shares[83] Substantial Shareholders' Interests and Short Positions in Shares, Underlying Shares and Debentures As at June 30, 2025, substantial shareholders, including Quantsmile (BVI) Limited, Eagle Enterprise Consultants Limited, Good Steward Foundation, Financial Data Technologies Limited, and Bank of Communications Trustee Limited, held interests in the company's shares ranging from 6.74% to 58.10%, with Eagle Enterprise Consultants Limited being the largest shareholder Substantial Shareholders' Long Positions | Name | Capacity and Nature of Interest | Number of Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Quantsmile (BVI) Limited | Beneficial interest | 411,902,870 | 33.49% | | Eagle Enterprise Consultants Limited | Beneficial interest/Interest in controlled corporation | 714,676,910 | 58.10% | | Good Steward Foundation | Interest in controlled corporation | 714,676,910 | 58.10% | | Financial Data Technologies Limited | Beneficial interest | 98,040,000 | 7.97% | | Bank of Communications Trustee Limited | Trustee | 82,905,000 | 6.74% | - Eagle Enterprise Consultants Limited is deemed to have an interest in the company's shares held by Quantsmile (BVI) by virtue of holding approximately 50.85% interest in Quantsmile (BVI)[85] - Bank of Communications Trustee Limited is the trustee appointed by the company for the Share Award Scheme[87] Share Option Scheme The company adopted a share option scheme on January 22, 2019, but no share options have been granted, exercised, cancelled, or lapsed since its adoption date; as at June 30, 2025, the maximum number of share options available for grant under the scheme was 80,100,000 - The company adopted a share option scheme on January 22, 2019, but no share options have been granted since the adoption date[88] - As at June 30, 2025, the maximum number of share options available for grant under the share option scheme was 80,100,000[88] Share Award Scheme The company adopted a share award scheme on August 12, 2019, to reward eligible employees; for the six months ended June 30, 2025, the trustee did not purchase any shares but held 82,905,000 shares; during the period, 5,040,000 award shares were granted to 13 selected individuals, of which 2,520,000 shares will vest on December 31, 2025 - The company adopted a share award scheme on August 12, 2019, aiming to hold shares through a trustee and vest them to participants[89] - For the six months ended June 30, 2025, the trustee did not purchase any shares on the Stock Exchange but held 82,905,000 shares[89] - On May 13, 2024, the Board resolved to grant a total of 5,040,000 award shares to 13 selected individuals, of which 2,520,000 shares will vest on December 31, 2025[91] Competing Interests and Non-Competition Undertaking Each controlling shareholder entered into a non-competition undertaking on January 22, 2019; for the six months ended June 30, 2025, and up to the date of this report, no Director, controlling shareholder, or their close associates held any interest in businesses competing with the Group's operations - Each controlling shareholder entered into a non-competition undertaking with the company as beneficiary on January 22, 2019[92] - For the six months ended June 30, 2025, and up to the date of this report, no Director, controlling shareholder, or their close associates held any interest in any business that directly or indirectly competes with the Group's business[92] Corporate Governance Practices The company is committed to achieving high standards of corporate governance and has adopted and complied with the principles and code provisions of the Corporate Governance Code set out in Appendix C1 of the GEM Listing Rules - The company is committed to achieving high standards of corporate governance to protect shareholders' interests, enhance corporate value, formulate business strategies, and improve transparency[93] - For the six months ended June 30, 2025, the company adopted and complied with the principles and code provisions of the Corporate Governance Code set out in Appendix C1 of the GEM Listing Rules[93] Directors' Securities Transactions The company has adopted the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules as the code of conduct for Directors' securities transactions; upon inquiry, all Directors confirmed compliance with this standard - The company has adopted the required standard of dealings set out in Rules 5.48 to 5.67 of the GEM Listing Rules as the code of conduct for Directors' securities transactions[94] - Following specific inquiries with all Directors, all Directors confirmed their compliance with the required standard of dealings for the six months ended June 30, 2025, with no reportable breaches[94] Events After Reporting Period No significant events occurred after June 30, 2025, up to the date of this report, for the company or the Group - No significant events occurred after June 30, 2025, and up to the date of this report, for the company or the Group[96] Audit Committee The company's Audit Committee has reviewed this report and the Group's unaudited condensed consolidated financial results for the six months ended June 30, 2025, confirming their compliance with applicable accounting standards, GEM Listing Rules, and other legal requirements - The company's Audit Committee has reviewed this report and the Group's unaudited condensed consolidated financial results for the six months ended June 30, 2025[97] - The Audit Committee believes that these results were prepared in compliance with applicable accounting standards, the GEM Listing Rules, and other applicable legal requirements, and that adequate disclosures have been made in this regard[97] Dividends The Directors do not recommend the payment of any dividend for the six months ended June 30, 2025, consistent with the prior period - The Directors do not recommend the payment of any dividend for the six months ended June 30, 2025 (2024: nil HK$)[98] Definitions Definitions of Terms in the Report This section provides definitions for key terms used throughout this report, ensuring readers have a clear understanding of the content - This section defines key terms used in the report, such as "Board," "China," "Company," "Controlling Shareholder," "Directors," "GEM Listing Rules," "Group," "HK$," "Hong Kong," "Listing," "Prospectus," "SFO," "Shares," "Shareholder," "Share Award Scheme," "Share Option Scheme," "Stock Exchange," and "%"[99][101]