未来数据集团(08229) - 2025 - 中期业绩

Company Information and Disclaimer This section provides an overview of the company's profile, its GEM listing characteristics, and the responsibilities of its directors Company Overview FUTURE DATA GROUP LIMITED, a company incorporated in the Cayman Islands with stock code 8229, is listed on GEM of the Hong Kong Stock Exchange, primarily engaged in investment holding and providing system integration and maintenance services through its subsidiaries - Company name: FUTURE DATA GROUP LIMITED, Stock Code: 8229[2] - Registered in the Cayman Islands, listed on GEM of the Hong Kong Stock Exchange[2][13] - Principal business: Investment holding, providing network connectivity, cloud computing, cybersecurity system integration, and maintenance services through subsidiaries[14] - Ultimate controlling party: Ms. Tao Hongxia[14] GEM Listing Features and Directors' Responsibilities GEM provides a listing platform for small and medium-sized companies with high investment risks, requiring investors to exercise caution, while directors bear full responsibility for the accuracy, completeness, and non-misleading nature of announcement content - GEM market targets small and medium-sized companies, entailing higher investment risks and potential for significant securities market volatility[2] - Company directors jointly and individually bear full responsibility for the accuracy, completeness, and non-misleading nature of the announcement information[3] Interim Results Summary This section highlights key financial performance for the six months ended June 30, 2025, including revenue, loss, and earnings per share Key Financial Highlights For the six months ended June 30, 2025, the group's revenue from continuing operations decreased by 25.8% year-on-year, with loss for the period significantly increasing to HKD 17.9 million, and basic and diluted loss per share rising to HKD 3.27 cents, with no interim dividend recommended by the board Key Financial Highlights for the Six Months Ended June 30, 2025 (thousand HKD) | Indicator | June 30, 2025 (thousand HKD) | June 30, 2024 (thousand HKD) | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue from continuing operations | 160,976 | 216,959 | (55,983) | -25.8% | | Loss from continuing and discontinued operations | (17,901) | (4,340) | (13,561) | +312.5% | | Basic and diluted loss per share (HK cents) | (3.27) | (0.79) | (2.48) | +313.9% | - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2025[5] Condensed Consolidated Financial Statements This section presents the group's condensed consolidated statements of profit or loss, comprehensive income, financial position, changes in equity, and cash flows Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2025, the group's revenue from continuing operations was HKD 160,976 thousand, gross profit was HKD 10,128 thousand, and loss for the period was HKD 17,904 thousand, representing a significant increase in loss compared to the same period last year Key Data from Condensed Consolidated Statement of Profit or Loss (thousand HKD) | Indicator | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | 160,976 | 216,959 | (55,983) | | Gross profit | 10,128 | 22,609 | (12,481) | | Loss before income tax | (17,108) | (7,209) | (9,899) | | Loss for the period from continuing operations | (17,904) | (7,564) | (10,340) | | Profit for the period from discontinued operations | – | 3,252 | (3,252) | | Loss for the period | (17,904) | (4,312) | (13,592) | | Loss for the period attributable to owners of the Company | (17,901) | (4,340) | (13,561) | | Basic and diluted loss per share (HK cents) | (3.27) | (0.79) | (2.48) | Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the group recorded a loss for the period of HKD 17,904 thousand, but other comprehensive income from exchange differences on overseas operations of HKD 12,200 thousand resulted in a total comprehensive expense for the period of HKD 5,704 thousand, an improvement from the prior year Key Data from Condensed Consolidated Statement of Comprehensive Income (thousand HKD) | Indicator | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Loss for the period | (17,904) | (4,312) | (13,592) | | Exchange differences on translation of overseas operations | 12,200 | (8,485) | 20,685 | | Total comprehensive expense for the period | (5,704) | (12,797) | 7,093 | | Total comprehensive expense for the period attributable to owners of the Company | (5,701) | (12,825) | 7,124 | - Exchange differences on translation of overseas operations turned from a loss of HKD 8,485 thousand in the same period of 2024 to a gain of HKD 12,200 thousand in 2025, significantly improving comprehensive income[7] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the group's total assets less current liabilities were HKD 156,912 thousand, and net assets were HKD 145,719 thousand, a decrease from December 31, 2024, with non-current assets remaining stable, significant increases in inventory and fixed bank deposits within current assets, and a decrease in cash and cash equivalents Key Data from Condensed Consolidated Statement of Financial Position (thousand HKD) | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total non-current assets | 53,447 | 52,016 | 1,431 | | Total current assets | 164,673 | 168,813 | (4,140) | | Total current liabilities | 61,208 | 62,446 | (1,238) | | Net current assets | 103,465 | 106,367 | (2,902) | | Total assets less current liabilities | 156,912 | 158,383 | (1,471) | | Total non-current liabilities | 11,193 | 7,011 | 4,182 | | Net assets | 145,719 | 151,372 | (5,653) | | Total equity | 145,719 | 151,372 | (5,653) | - Inventory significantly increased from HKD 476 thousand as of December 31, 2024, to HKD 4,514 thousand as of June 30, 2025[8][31] - Fixed bank deposits increased from HKD 22,982 thousand as of December 31, 2024, to HKD 54,758 thousand as of June 30, 2025[8] - Cash and cash equivalents decreased from HKD 81,807 thousand as of December 31, 2024, to HKD 51,583 thousand as of June 30, 2025[8] Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, total equity attributable to owners of the company decreased from HKD 151,429 thousand at the beginning of the period to HKD 145,779 thousand at the end, primarily due to a loss for the period of HKD 17,901 thousand, partially offset by exchange differences on overseas operations of HKD 12,200 thousand Key Data from Condensed Consolidated Statement of Changes in Equity (thousand HKD) | Indicator | January 1, 2025 (Audited) | June 30, 2025 (Unaudited) | Change | | :--- | :--- | :--- | :--- | | Equity attributable to owners of the Company | 151,429 | 145,779 | (5,650) | | Loss for the period | – | (17,901) | (17,901) | | Exchange differences on translation of overseas operations | – | 12,200 | 12,200 | | Total comprehensive expense | – | (5,701) | (5,701) | | Equity-settled share-based payments recognized | – | 51 | 51 | | Lapsed share options | – | – | – | | Transfer | – | – | – | Condensed Consolidated Statement of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities was HKD 35,124 thousand, net cash used in investing activities was HKD 29,097 thousand, and net cash generated from financing activities was HKD 1,514 thousand, resulting in a net decrease in cash and cash equivalents of HKD 37,598 thousand Key Data from Condensed Consolidated Statement of Cash Flows (thousand HKD) | Indicator | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Net cash used in operating activities | (35,124) | (11,322) | (23,802) | | Net cash used in investing activities | (29,097) | (11,459) | (17,638) | | Net cash generated from financing activities | 1,514 | 2,821 | (1,307) | | Net decrease in cash and cash equivalents | (37,598) | (45,069) | 7,471 | | Cash and cash equivalents at end of period | 51,583 | 71,524 | (19,941) | - An increase in fixed bank deposits of HKD 31,776 thousand was the primary reason for cash outflow from investing activities[12] - Net cash from financing activities primarily resulted from an increase in shareholder loans of HKD 5,000 thousand, partially offset by other financing cash outflows[12] Notes to the Condensed Consolidated Interim Financial Statements This section details the basis of preparation, accounting policies, segment information, and other financial disclosures for the interim period General Information FUTURE DATA GROUP LIMITED, incorporated in the Cayman Islands and listed on GEM of the Hong Kong Stock Exchange, primarily engages in system integration and maintenance services, with main operations in Korea and Hong Kong, using Korean Won and Hong Kong Dollars as functional currencies respectively, and Hong Kong Dollars as presentation currency - The company was incorporated in the Cayman Islands on January 4, 2016, and its shares are listed on GEM of the Hong Kong Stock Exchange[13] - Principal business is investment holding, providing system integration and maintenance services through its subsidiaries[14] - The principal operating subsidiary, Global Telecom Company Limited, is located in Seoul, Korea, with the functional currencies of the company's principal operating subsidiaries in Korea and Hong Kong being Korean Won and Hong Kong Dollars, respectively, and the presentation currency being Hong Kong Dollars[14][15] Basis of Preparation and Accounting Policies The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, using the historical cost convention, consistent with the annual financial statements for the year ended December 31, 2024, with no material impact from the initial adoption of revised HKFRSs - The financial statements are prepared in accordance with HKAS 34 and the GEM Listing Rules, adopting the historical cost convention[16][17] - The initial adoption of HKAS 21 (Amendment) "Lack of Exchangeability" had no impact on the condensed consolidated interim financial information, as the group's transaction and functional currencies are exchangeable[18] Revenue and Segment Information The group's operating segments include system integration, maintenance services, and other services, with total revenue of HKD 160,976 thousand for the six months ended June 30, 2025, primarily from the Korean market, where maintenance services contributed the largest share, while private sector revenue significantly declined - Operating segments include system integration, maintenance services, and other services[20][21] Segment Revenue and Performance As of June 30, 2025, system integration revenue was HKD 59,635 thousand, maintenance services revenue was HKD 99,101 thousand, and other services revenue was HKD 2,240 thousand, showing a significant year-on-year decrease in system integration revenue and an increase in maintenance services revenue Revenue and Results from Continuing Operations by Segment (thousand HKD) | Segment | June 30, 2025 Revenue | June 30, 2024 Revenue | Revenue Change | June 30, 2025 Results | June 30, 2024 Results | Results Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | System Integration | 59,635 | 131,262 | (71,627) | 1,036 | (1,057) | 2,093 | | Maintenance Services | 99,101 | 82,040 | 17,061 | 7,553 | 20,803 | (13,250) | | Other Services | 2,240 | 3,657 | (1,417) | 1,539 | 2,863 | (1,324) | | Total | 160,976 | 216,959 | (55,983) | 10,128 | 22,609 | (12,481) | Geographical Information The vast majority of the group's revenue, HKD 158,736 thousand, for the six months ended June 30, 2025, was derived from the Korean market, with the Hong Kong market contributing HKD 2,240 thousand, and all property, plant, and equipment located in Korea Revenue from Continuing Operations by Customer Location (thousand HKD) | Region | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Korea | 158,736 | 213,302 | (54,566) | | Hong Kong | 2,240 | 3,657 | (1,417) | | Total | 160,976 | 216,959 | (55,983) | - All of the group's property, plant, and equipment are located in Korea[23] Revenue Recognition Timing and Categories All of the group's revenue is recognized over time, with cloud infrastructure being the primary source of income, security services revenue decreasing, the public sector contributing most revenue but the private sector revenue significantly declining, and contracts within twelve months remaining the main portion, though contracts exceeding two years have increased - All revenue from continuing operations is recognized over time[24] Revenue from Continuing Operations by Type of Goods or Services (thousand HKD) | Type of Goods or Services | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Cloud Infrastructure | 153,597 | 210,503 | (56,906) | | Security | 5,139 | 6,326 | (1,187) | | Other | 2,240 | 130 | 2,110 | | Total | 160,976 | 216,959 | (55,983) | Revenue from Continuing Operations by Customer Category (thousand HKD) | Customer Category | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Public Sector | 129,361 | 129,575 | (214) | | Private Sector | 31,615 | 87,384 | (55,769) | | Total | 160,976 | 216,959 | (55,983) | Revenue from Continuing Operations by Type of Contract Term (thousand HKD) | Contract Term Type | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Within twelve months | 99,869 | 175,113 | (75,244) | | Over one year but less than two years | 8,948 | 12,301 | (3,353) | | Over two years | 52,159 | 29,545 | 22,614 | | Total | 160,976 | 216,959 | (55,983) | Loss Before Income Tax from Continuing Operations For the six months ended June 30, 2025, the group's loss before income tax from continuing operations was HKD 17,108 thousand, primarily impacted by inventory costs, subcontracting costs, and impairment losses on trade receivables, with no research and development costs incurred Major Expense Items from Continuing Operations (thousand HKD) | Expense Item | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Employee costs | 41,930 | 42,036 | (106) | | Inventory costs recognized as expense | 108,989 | 118,885 | (9,896) | | Subcontracting costs | 13,699 | 51,225 | (37,526) | | Impairment loss on trade receivables | 1,968 | 1,345 | 623 | | Research and development costs | – | 2,778 | (2,778) | - Research and development costs decreased to zero in the first half of 2025, compared to HKD 2,778 thousand in the same period last year[27] Income Tax Expense For the six months ended June 30, 2025, the group's income tax expense was HKD 796 thousand, mainly comprising current tax and withholding tax in Korea, with deferred tax credits arising from Hong Kong operations Income Tax Expense Components (thousand HKD) | Tax Type | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Deferred tax credit/(expense) - Korea | – | (300) | 300 | | Deferred tax credit/(expense) - Hong Kong | 184 | (53) | 237 | | Current tax - Korea | (473) | (2) | (471) | | Withholding tax - Korea | (507) | – | (507) | | Total | (796) | (355) | (441) | Loss Per Share For the six months ended June 30, 2025, basic and diluted loss per share attributable to owners of the company was HKD 3.27 cents, a significant increase from HKD 0.79 cents in the prior year, primarily due to an expanded loss for the period Loss Per Share Data | Indicator | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Loss for the purpose of calculating basic and diluted loss per share (thousand HKD) | (17,901) | (4,340) | (13,561) | | Weighted average number of ordinary shares (thousand shares) | 546,680 | 546,680 | 0 | | Basic and diluted loss per share (HK cents) | (3.27) | (0.79) | (2.48) | - Diluted loss per share is equal to basic loss per share because the share options have an anti-dilutive effect[29] Dividends No dividends were paid, declared, or proposed by the company for the six months ended June 30, 2025, or 2024 - No dividends were paid, declared, or proposed by the company for the six months ended June 30, 2025, or 2024[30] Other Financial Assets and Inventories As of June 30, 2025, unlisted equity securities measured at fair value through profit or loss, primarily Korea Software Financial Cooperative and Korea Broadcasting & Communication Financial Cooperative, totaled HKD 4,351 thousand, while inventory (hardware and software) significantly increased to HKD 4,514 thousand Other Financial Assets (thousand HKD) | Financial Asset | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Korea Software Financial Cooperative | 4,315 | 3,913 | 402 | | Korea Broadcasting & Communication Financial Cooperative | 35 | 32 | 3 | | Total | 4,351 | 3,945 | 406 | Inventories (thousand HKD) | Inventory Type | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Hardware and Software | 4,514 | 476 | 4,038 | Trade and Other Receivables, Contract Assets and Liabilities As of June 30, 2025, trade receivables (net of impairment allowance) were HKD 32,670 thousand, a decrease from December 31, 2024, with contract assets increasing to HKD 2,458 thousand and contract liabilities significantly increasing to HKD 9,899 thousand Trade and Other Receivables (thousand HKD) | Receivables Type | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade receivables | 49,651 | 57,973 | (8,322) | | Less: Impairment allowance | (16,981) | (13,611) | (3,370) | | Net trade receivables | 32,670 | 44,362 | (11,692) | | Total trade and other receivables | 49,937 | 61,568 | (11,631) | Contract Assets and Liabilities (thousand HKD) | Item | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Contract assets | 2,458 | 1,347 | 1,111 | | Contract liabilities | 9,899 | 148 | 9,751 | - The credit period for trade receivables is generally 90 days, with receivables over 365 days increasing from nil to HKD 610 thousand[32] Trade and Other Payables As of June 30, 2025, total trade and other payables were HKD 46,918 thousand, a decrease from December 31, 2024, primarily due to reductions in trade payables and value-added tax payable Trade and Other Payables (thousand HKD) | Payables Type | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Trade payables | 36,983 | 42,693 | (5,710) | | Accrued expenses and other payables | 9,377 | 10,193 | (816) | | Receipts in advance | 558 | 598 | (40) | | Value-added tax payable | – | 3,779 | (3,779) | | Total | 46,918 | 57,263 | (10,345) | - Supplier credit terms typically range from 30 to 90 days[33] Convertible Notes On June 17, 2024, the company issued convertible notes with a principal amount of HKD 2,000,000 and an 8% annual interest rate, maturing on June 17, 2025, with a conversion price of HKD 0.50 per share, comprising liability and derivative components measured at fair value through profit or loss, and subsequently converted into 4,000,000 shares by the new noteholder - The company issued convertible notes with a principal amount of HKD 2,000,000 and an annual interest rate of 8% on June 17, 2024, maturing on June 17, 2025[34] - The conversion price is HKD 0.50 per share, subject to adjustment clauses[34][35] - The convertible notes are treated as a compound instrument consisting of a liability component and a derivative liability component, with the derivative component measured at fair value through profit or loss[36] Convertible Notes Liability and Derivative Components (thousand HKD) | Item | Derivative Instrument | Liability | | :--- | :--- | :--- | | Face value of convertible notes issued | – | 2,000 | | Transaction costs related to liability component | – | (82) | | Derivative component | 37 | (37) | | Initial allocation at issue date | 37 | 1,881 | | Balance as of December 31, 2024 and January 1, 2025 | 25 | 2,026 | | Balance as of June 30, 2025 | 25 | 2,160 | - Subsequent to the reporting period, the new noteholder exercised the conversion right, converting HKD 2,000,000 principal into 4,000,000 conversion shares, representing approximately 0.73% of the total issued shares before conversion[41] Related Party Transactions and Balances For the six months ended June 30, 2025, key management personnel compensation amounted to HKD 4,477 thousand, a significant decrease compared to the same period last year Key Management Personnel Compensation (thousand HKD) | Item | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Directors' and other key management personnel's emoluments | 4,477 | 8,980 | (4,503) | Equity-Settled Share-Based Payment Transactions The company operates a share option scheme to reward eligible participants for their contributions to the group's operations, with 14,400,000 unexercised share options at a weighted average exercise price of HKD 0.72 as of June 30, 2025, a decrease from the beginning of the period, and share-based payment expenses of HKD 51 thousand recognized during the period, significantly lower than the prior year - The share option scheme aims to reward eligible participants, including employees, directors, and consultants, for their contributions to the group's operations[45] - The exercise price of share options is not less than the highest of the closing price on the grant date, the average closing price for the preceding five days, and the nominal value of the shares[46] Share Option Movement Details | Item | Number of Share Options as of June 30, 2025 (units) | Weighted Average Exercise Price as of June 30, 2025 (HKD) | Number of Share Options as of June 30, 2024 (units) | Weighted Average Exercise Price as of June 30, 2024 (HKD) | | :--- | :--- | :--- | :--- | :--- | | Unexercised at beginning of period | 19,200,000 | 0.72 | 17,800,000 | 0.76 | | Granted during the period | – | Not applicable | 4,800,000 | 0.60 | | Lapsed during the period | (4,800,000) | 0.81 | (2,400,000) | 0.66 | | Exercised during the period | – | Not applicable | – | Not applicable | | Cancelled during the period | – | Not applicable | – | Not applicable | | Unexercised at end of period | 14,400,000 | 0.72 | 20,200,000 | 0.73 | - For the period ended June 30, 2025, the group recognized share-based payment expenses of approximately HKD 51 thousand, a significant decrease from HKD 2,977 thousand in the same period of 2024[54] Share Capital As of June 30, 2025, the company's authorized share capital was HKD 50,000 thousand, and issued and fully paid share capital was HKD 5,467 thousand, comprising 546,680 thousand shares, remaining unchanged from December 31, 2024 Share Capital Details | Item | June 30, 2025 (thousand shares) | December 31, 2024 (thousand shares) | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Authorized share capital (HKD 0.01 per share) | 5,000,000 | 5,000,000 | 50,000 | 50,000 | | Issued and fully paid share capital (HKD 0.01 per share) | 546,680 | 546,680 | 5,467 | 5,467 | Management Discussion and Analysis This section reviews the group's business operations, financial performance, liquidity, and future outlook for the reporting period Business Review and Outlook The group, primarily engaged in system integration and maintenance services, experienced a 25.8% year-on-year revenue decrease for the six months ended June 30, 2025, due to global economic uncertainties, inflation, and geopolitical tensions, and management will continue to enhance digital asset expertise and actively explore new business lines, particularly in digital asset technology, to respond to new Hong Kong government policies and enhance shareholder value - The group's principal business is system integration and maintenance services, with the revenue decrease primarily attributed to global macroeconomic challenges, including reduced customer spending and project delays[56][57] Movement in Outstanding Orders (thousand HKD) | Item | Amount | | :--- | :--- | | Outstanding orders at January 1, 2025 | 150,137 | | New orders during the period | 296,261 | | Revenue recognized during the period | 160,976 | | Outstanding orders at June 30, 2025 | 285,422 | - Group management will continue to enhance professional knowledge and technical experience related to digital assets, develop core businesses, and actively seek opportunities to launch new projects and transactions, particularly focusing on new business lines in digital assets[60][61] - Looking ahead, the group will actively participate in transformative technologies and prudently advance investments to respond to new Hong Kong government policies and enhance long-term shareholder value[61] Financial Review For the six months ended June 30, 2025, the group's revenue decreased by 25.8% year-on-year to HKD 161.0 million, primarily due to delays in system integration projects in the Korean private sector, gross profit decreased by 55.2% to HKD 10.1 million, selling and administrative expenses decreased by 17.5% to HKD 26.1 million mainly due to reduced share-based payments, and loss for the period increased by HKD 13.6 million to HKD 17.9 million - Revenue decreased by 25.8% year-on-year to HKD 161.0 million, primarily due to delays in system integration projects in the Korean private sector[62] Revenue Contribution by Region and Business Segment (thousand HKD) | Category | June 30, 2025 | June 30, 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Region | | | | | | Korean Operations | 158,700 | 213,300 | (54,600) | -25.6% | | Hong Kong Operations | 2,300 | 3,700 | (1,500) | -40.5% | | Business Segment | | | | | | System Integration | 59,600 | 131,300 | (71,700) | -54.6% | | Maintenance Services | 99,100 | 82,000 | 17,100 | +20.9% | | Other Services | 2,300 | 3,700 | (1,400) | -37.8% | | Customer Segment | | | | | | Public Sector | 129,400 | 129,600 | (200) | -0.2% | | Private Sector | 31,600 | 87,400 | (55,800) | -63.8% | - Gross profit decreased by 55.2% year-on-year to HKD 10.1 million, mainly because the decrease in revenue exceeded the decrease in service costs[64] - Selling and administrative expenses decreased by 17.5% to HKD 26.1 million, primarily due to a reduction in share-based payments[65] - Loss for the period increased by HKD 13.6 million to HKD 17.9 million[66] Liquidity and Financial Resources As of June 30, 2025, the group's net current assets were HKD 103.5 million, with a current ratio of 2.7 times, indicating sufficient financial resources, while the gearing ratio increased to 10.5% primarily due to increased shareholder loans, and cash and cash equivalents stood at HKD 51.6 million with no bank borrowings Key Liquidity and Financial Resources Indicators | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Net current assets (million HKD) | 103.5 | 106.4 | (2.9) | | Gearing ratio | 10.5% | 7.9% | +2.6% | | Current ratio (times) | 2.7 | 2.7 | 0 | | Cash and cash equivalents (million HKD) | 51.6 | 81.8 | (30.2) | - The increase in gearing ratio was primarily due to an increase in shareholder loans[67] - The group had no bank borrowings at the end of the period[68] - The Board of Directors will not declare any dividends for the six months ended June 30, 2025[69] Foreign Exchange Risk The group's Korean operations face currency risk primarily from exchange rate differences between Korean Won-denominated revenue and US Dollar-denominated procurement, which the company mitigates by adding a profit margin reserve in system integration project cost calculations, while Hong Kong operations have no currency risk - Korean operations face currency risk between Korean Won and US Dollar, mitigated by adding a profit margin reserve in system integration project cost calculations to guard against adverse exchange rate movements[70] - Hong Kong operations have no currency risk, as both revenue and costs are denominated in Hong Kong Dollars[71] Other Financial Information As of June 30, 2025, the group had no pledged assets, significant investments, capital assets, major acquisitions or disposals of subsidiaries, significant contingent liabilities, or material capital commitments - The group had no pledged assets as of June 30, 2025[72] - The group had no significant investments or capital assets during the period[73] - The group had no major acquisitions or disposals of subsidiaries during the period[74] - The group had no significant contingent liabilities or capital commitments at the end of the period[75][76] Employees and Remuneration As of June 30, 2025, the group had 245 employees, an increase from 206 as of December 31, 2024, with total employee costs (including directors' emoluments) of approximately HKD 29.9 million, a year-on-year decrease, and the group provides regular technical and on-the-job training and operates a share option scheme to reward contributors Employee Headcount and Costs | Indicator | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Employee headcount | 245 | 206 | Not applicable | | Total employee costs (million HKD) | 29.9 | Not applicable | 42.0 | - The group operates a share option scheme and provides regular technical and on-the-job training to employees, encouraging participation in external seminars and examinations[78][79] Other Information This section covers the company's share option scheme, directors' code of conduct, corporate governance, and other relevant disclosures Share Option Scheme The company's share option scheme, approved and adopted on June 21, 2016, aims to reward eligible participants, with a total of 14,400,000 unexercised share options at period-end as of June 30, 2025, and approximately 40,000,000 shares, representing about 7.32% of issued shares, available for grant under the existing scheme limit - The share option scheme was approved and adopted on June 21, 2016[80] Share Option Scheme Movement (as of June 30, 2025) | Item | Number of Share Options (units) | | :--- | :--- | | Unexercised as of January 1, 2025 | 19,200,000 | | Lapsed during the period | (4,800,000) | | Unexercised as of June 30, 2025 | 14,400,000 | - The number of share options available for grant under the existing share option scheme limit is approximately 40,000,000 shares, representing approximately 7.32% of the issued shares as of the announcement date[81] - As of June 30, 2025, the maximum number of shares that could be issued upon exercise of all share options available for grant under the existing share option scheme limit is 5,400,000 shares, representing approximately 0.98% of the issued shares[82] Directors' Code for Securities Transactions The company has adopted a code for securities transactions by directors that is no less exacting than required by the GEM Listing Rules, and all directors have confirmed compliance with this code for the six months ended June 30, 2025 - The company has adopted a code for securities transactions that is no less exacting than rules 5.48 to 5.67 of the GEM Listing Rules[83] - All directors have confirmed compliance with the code for securities transactions for the six months ended June 30, 2025[83] Directors' Interests in Competing Businesses For the six months ended June 30, 2025, none of the company's directors or controlling shareholders and their associates held any interests in businesses that compete or are likely to compete with the group's business - For the six months ended June 30, 2025, none of the directors or controlling shareholders and their associates held any interests in businesses that compete or are likely to compete with the group's business[84] Corporate Governance Practices The company is committed to fulfilling its responsibilities to shareholders through robust corporate governance and has complied with the code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the GEM Listing Rules - The company is committed to fulfilling its responsibilities to shareholders through robust corporate governance and has complied with the code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the GEM Listing Rules[85] Purchase, Sale, and Redemption of the Company's Securities For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of its listed securities on GEM - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of its listed securities on GEM[86] Audit Committee Review The Audit Committee has reviewed the group's unaudited consolidated financial statements for the six months ended June 30, 2025, and considers them to be in compliance with applicable accounting standards and adequately disclosed, with the committee comprising three independent non-executive directors, chaired by Mr. Chan Kin Ming - The Audit Committee has reviewed the group's unaudited consolidated financial statements for the six months ended June 30, 2025, and considers them to be in compliance with applicable accounting standards and adequately disclosed[88] - The Audit Committee comprises three independent non-executive directors, with Mr. Chan Kin Ming serving as chairman and possessing professional accounting qualifications[87] Board Composition and Announcement Date As of the announcement date, August 29, 2025, the Board of Directors comprises two executive directors, one non-executive director, and three independent non-executive directors - As of the announcement date, August 29, 2025, the Board of Directors comprises Ms. Duan Xicheng and Mr. Li Chenghan (Executive Directors), Ms. Tao Hongxia (Non-executive Director), and Mr. Chan Kin Ming, Mr. Lam Chi Cheung, and Mr. Leung Ho Ming (Independent Non-executive Directors)[89] - The announcement date is August 29, 2025[89]