Prime Intelligence Solutions Group Limited — Interim / Quarterly Report 2020

Feb 12, 2020

CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration.

Given that the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

Hong Kong Exchanges and Clearing Limited and the Stock Exchange of Hong Kong Limited take no responsibility for the contents of this report, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this report.

This report, for which the directors (the "Directors") of Prime Intelligence Solutions Group Limited (the "Company") collectively and individually accept full responsibility, includes particulars give in compliance with the Rules Governing the Listing of Securities on GEM of the Stock Exchange for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this report is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this report misleading.

香港聯合交易所有限公司(「聯交所」)GEM的特色

GEM的定位,乃為中小型公司提供一個上市的市場,此等公司相比起其他在聯交所上市的公司帶有較高投資風險。有意投資者應瞭解投資於該 等公司的潛在風險,並應經過審慎周詳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,同時亦無法保證在 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香港聯合交易所有限公司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依賴該等內容而引致的任何損失承擔任何責任。

本報告載有根據聯交所GEM證券上市規則規定而提供有關匯安智能科技集團有限公司(「本公司」)的資料,本公司的董事(「董事」)願就本報告共 同及個別承擔全部責任。董事作出一切合理查詢後,確認就彼等所深知及確信,本報告所載資料在所有重大方面均屬準確完整,並無誤導或欺詐 成分;且本報告並無遺漏任何其他事宜,致使其所載任何陳述或本報告產生誤導。

Corporate Information 公司資料

REGISTERED OFFICE

P.O. Box 1350 Clifton House 75 Fort Street Grand Cayman KY1-1108 Cayman Islands

HEADQUARTERS AND PRINCIPAL PLACE OF BUSINESS IN HONG KONG

Unit A, 6/F, TLP132 Nos. 132–134 Tai Lin Pai Road Kwai Chung, New Territories Hong Kong

EXECUTIVE DIRECTORS

Mr. Yuen Kwok Wai, Tony (Chairman and Chief Executive Officer) Ms. Yuen Mei Ling, Pauline Ms. Sun Ngai Chu, Danielle

NON-EXECUTIVE DIRECTOR

Mr. Yam Chiu Fan, Joseph

INDEPENDENT NON-EXECUTIVE DIRECTORS

Mr. Hui Man Ho, Ivan Mr. Chung Billy Mr. Mui Pak Kuen

AUTHORISED REPRESENTATIVES

Mr. Yuen Kwok Wai, Tony Mr. Chou Chiu Ho

COMPANY SECRETARY

Mr. Chou Chiu Ho (HKICPA, ACCA)

COMPLIANCE OFFICER

Ms. Yuen Mei Ling, Pauline

AUDIT COMMITTEE

Mr. Chung Billy (Chairman) Mr. Hui Man Ho, Ivan Mr. Mui Pak Kuen

註冊辦事處

P. O. Box 1350 Clifton House 75 Fort Street Grand Cayman KY1-1108 Cayman Islands

香港總辦事處及主要營業地點

香港 新界葵涌 大連排道132–134號 TLP132六樓A室

執行董事

阮國偉先生(主席兼行政總裁) 阮美玲女士 孫毅珠女士

非執行董事 任超凡先生

獨立非執行董事 許文浩先生 鍾定縉先生 梅栢權先生

授權代表

阮國偉先生 周昭何先生

公司秘書 周昭何先生(HKICPA, ACCA)

合規主任 阮美玲女士

審核委員會

鍾定縉先生(主席) 許文浩先生 梅栢權先生

Corporate Information 公司資料

NOMINATION COMMITTEE

Mr. Hui Man Ho, Ivan (Chairman) Mr. Chung Billy Mr. Mui Pak Kuen

REMUNERATION COMMITTEE

Mr. Mui Pak Kuen (Chairman) Mr. Chung Billy Mr. Hui Man Ho, Ivan Ms. Yuen Mei Ling, Pauline

LEGAL ADVISER

As to Hong Kong law Hastings & Co.

COMPLIANCE ADVISER

Ample Capital Limited

PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE IN THE CAYMAN ISLANDS

Estera Trust (Cayman) Ltd. P.O. Box 1350 Clifton House 75 Fort Street Grand Cayman KY1-1108 Cayman Islands

HONG KONG BRANCH SHARE REGISTRAR AND TRANSFER OFFICE

Tricor Investor Services Limited Level 54, Hopewell Centre 183 Queen's Road East Hong Kong

PRINCIPAL BANKER

The Hongkong and Shanghai Banking Corporation Limited DBS Bank (Hong Kong) Limited

WEBSITE www.primeintelligence.com.hk

STOCK CODE 8379

提名委員會 許文浩先生(主席) 鍾定縉先生 梅栢權先生

薪酬委員會

梅栢權先生(主席) 鍾定縉先生 許文浩先生 阮美玲女士

法律顧問 有關香港法律

希仕廷律師行

合規顧問 豐盛融資有限公司

開曼群島主要股份過戶登記處

Estera Trust (Cayman) Ltd. P.O. Box 1350 Clifton House 75 Fort Street Grand Cayman KY1-1108 Cayman Islands

香港股份過戶登記分處

卓佳證券登記有限公司 香港 皇后大道東183號 合和中心54樓

主要往來銀行 香港上海滙豐銀行有限公司 星展銀行(香港)有限公司

網址 www.primeintelligence.com.hk

股份代號 8379

Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 未經審核簡明綜合損益及其他全面收益表

The Board of Directors (the "Board") of Prime Intelligence Solutions Group Limited (the "Company") is pleased to present the unaudited condensed consolidated results of the Company and its subsidiaries (collectively referred to as the "Group") for the three and nine months ended 31 December 2019 together with the unaudited and audited comparative figures for the corresponding periods in 2018 as follows:

匯安智能科技集團有限公司(「本公司」)的董事會(「董事會」) 欣然提呈以下本公司及其附屬公司(統稱「本集團」)截至 2019年12月31日止三個月及九個月的未經審核簡明綜合業 績,連同2018年同期未經審核及經審核比較數字:

			31 December 截至12月31日止三個月	Three months ended	Nine months ended 31 December 截至12月31日止九個月
		Notes 附註	2019 2019年 HK\$'000 千港元 (unaudited)	2018 2018年 HK\$'000 千港元 (unaudited)	2019 2019年 HK\$'000 千港元 (unaudited)	2018 2018年 HK\$'000 千港元 (unaudited)
			(未經審核)	(未經審核)	(未經審核)	(未經審核)
Revenue Cost of sales	收益 銷售成本	3	12,684 (7,428)	11,656 (6,235)	38,113 (21,192)	37,113 (18,920)
Gross profit	毛利		5,256	5,421	16,921	18,193
Other income Selling and distribution costs Administrative expenses	其他收入 銷售及分銷成本 行政開支	4	235 (1,767) (4,934)	233 (2,140) (5,602)	698 (4,142) (17,139)	537 (4,890) (15,659)
Loss from operation Finance costs	來自經營之虧損 財務成本		(1,210) (49)	(2,088) (8)	(3,662) (168)	(1,819) (28)
Loss before tax Income tax expense	除稅前虧損 所得稅開支	5	(1,259) (250)	(2,096) (65)	(3,830) (720)	(1,847) (364)
Loss for the period	期內虧損	6	(1,509)	(2,161)	(4,550)	(2,211)
Other comprehensive income for the period net of tax: Item that may be reclassified to profit or loss: Exchange differences on translating foreign operations	期內其他全面收益, 扣除稅項: 可能重新分類至損益 之項目: 換算海外業務時之匯兌差額		27	4	2	(283)
Total comprehensive income for the period attributable to the owners of the Company	本公司擁有人應佔 期內收益總額		(1,482)	(2,157)	(4,548)	(2,494)
Loss per share (cents) — Basic	每股虧損(仙) — 基本	8	(0.19)	(0.27)	(0.57)	(0.28)
— Diluted	— 攤薄	8	(0.19)	(0.27)	(0.57)	(0.28)

Unaudited Condensed Consolidated Statement of Changes in Equity 未經審核簡明綜合權益變動表

						Foreign
						currency
		Share	Share	Merger	Legal	translation	Retained	Total	Total
		capital	premium	reserve	reserve	reserve	profits	reserve	equity
		股本	股份溢價	合併儲備	法定儲備	外幣換算 儲備	保留溢利	總儲備	總權益
		HK\$'000	HK\$'000	HK\$'000	HK\$'000	HK\$'000	HK\$'000	HK\$'000	HK\$'000
		千港元	千港元	千港元	千港元	千港元	千港元	千港元	千港元
Balance at 1 April 2018	於2018年4月1日
(audited)	的餘額(經審核)	8,000	51,682	17,079	12	2	22,040	90,815	98,815
Total comprehensive income	期內全面收益總額
for the period (unaudited)	(未經審核)	–	–	–	–	(283)	(2,211)	(2,494)	(2,494)
Balance at	於2018年12月31日
31 December 2018	的餘額(未經審核)
(unaudited)		8,000	51,682	17,079	12	(281)	19,829	88,321	96,321
Balance at 1 April 2019	於2019年4月1日
(audited)	的餘額(經審核)	8,000	51,682	17,079	12	(271)	18,393	86,895	94,895
Impact on initial application of	首次應用香港財務報告
HKFRS16 (unaudited)	準則第16號的影響
	(未經審核)	–	–	–	–	–	(106)	(106)	(106)
Balance at 1 April 2019,	於2019年4月1日的餘額
as restated (unaudited) Total comprehensive income	(經重列()未經審核) 期內全面收益總額	8,000	51,682	17,079	12	(271)	18,287	86,789	94,789
for the period (unaudited)	(未經審核)	–	–	–	–	2	(4,550)	(4,548)	(4,548)
Balance at	於2019年12月31日
31 December 2019	的餘額(未經審核)
(unaudited)		8,000	51,682	17,079	12	(269)	13,737	82,241	90,241

1. GENERAL INFORMATION

The Company was incorporated in the Cayman Islands as an exempt company with limited liability under the Companies Law (as revised) of the Cayman Islands on 16 October 2015. The address of its registered office is P.O. Box 1350, Clifton House, 75 Fort Street, Grand Cayman, KY1-1108, Cayman Islands. The address of its principal place of business is located at Unit A, 6/F TLP132, Nos. 132–134 Tai Lin Pai Road, Kwai Chung, New Territories, Hong Kong. The Company's shares are listed on GEM of The Stock Exchange of Hong Kong Limited (the "Stock Exchange") since 14 February 2018 (the "Listing").

The Company is an investment holding company. The principal activities of its subsidiaries are sales of biometrics identification devices and other devices and accessories and provision of auxiliary and other services.

2. BASIS OF PRESENTATION AND PREPARATION OF FINANCIAL STATEMENTS

The unaudited condensed consolidated financial statements of the Group for the three and nine months ended 31 December 2019 are unaudited but have been reviewed by the audit committee of the Company (the "Audit Committee"). The unaudited condensed consolidated financial statements were approved for issue by the directors of the Company (the "Directors") on 10 February 2020. The unaudited condensed consolidated financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") which in collective term includes Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards ("HKAS") and Interpretations issued by Hong Kong Institute of Certified Public Accountants (the "HKICPA"), accounting principles generally accepted in Hong Kong and the applicable disclosure provisions of the Rules Governing the Listing of Securities on GEM of the Stock Exchange (the "GEM Listing Rules").

The unaudited condensed consolidated results have been prepared under the historical cost convention. The unaudited condensed consolidated results of the Group for the three and nine months ended 31 December 2019 do not include all the information and disclosures required in the annual financial statements of the Group and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 March 2019 (the "2019 Consolidated Financial Statements"). Except as described in paragraph headed "Changes in accounting policy and disclosure" below, the accounting policies and methods of computation used in the preparation of the unaudited condensed consolidated results are consistent with those used in the 2019 Consolidated Financial Statements.

1. 一般資料

本公司於2015年10月16日根據開曼群島公司法(經 修訂)在開曼群島註冊成立為獲豁免有限公司。其註 冊 辦 事 處 地 址 為P.O. Box 1350, Clifton House, 75 Fort Street, Grand Cayman, KY1-1108, Cayman Islands。其主要營業地點的地址位於香港新界葵涌大 連排道132–134號TLP132六樓A室。本公司股份已 自2018年2月14日起在香港聯合交易所有限公司(「聯 交所」)GEM上市(「上市」)。

本公司為一間投資控股公司。本公司附屬公司的主要 業務為銷售生物特徵識別裝置、其他裝置及配件以及 提供配套及其他服務。

2. 財務報表的呈報及編製基準

本集團截至2019年12月31日止三個月及九個月之未 經審核簡明綜合財務報表為未經審核,但已由本公司 審核委員會(「審核委員會」)審閱。本公司董事(「董 事」)於2020年2月10日批准刊發未經審核簡明綜合 財務報表。未經審核簡明綜合財務報表已遵照香港會 計師公會(「香港會計師公會」)頒佈的香港財務報告 準則(「香港財務報告準則」)(此綜合詞彙包括:香港 財務報告準則、香港會計準則(「香港會計準則」)及 詮釋)、香港公認會計原則及聯交所GEM證券上市規 則(「GEM上市規則」)之適用披露條文編製。

未經審核簡明綜合業績已按歷史成本法編製。本集團 截至2019年12月31日止三個月及九個月的未經審核 簡明綜合業績並不包括本集團年度財務報表所有所須 資料及披露,並應與本集團截至2019年3月31日止 年度綜合財務報表(「2019綜合財務報表」)一併閱讀。 除下文「會計政策及披露的變更」一段所載外,編製 未經審核簡明綜合業績所用會計政策及計算方法與 2019綜合財務報表所用者貫徹一致。

2. BASIS OF PRESENTATION AND PREPARATION OF FINANCIAL STATEMENTS (continued)

Changes in accounting policy and disclosures

The following new and amended standards and interpretations are mandatory for the first time for financial year beginning 1 April 2019:

Amendments to HKFRS 9	Prepayment Features with Negative Compensation
HKFRS 16	Leases
Amendments to HKAS 19	Plan Amendment, Curtailment or Settlement
Amendments to HKAS 28	Long-term Interests in Associates and Joint Ventures
HK(IRIC)-Int 23	Uncertainty over Income Tax Treatments
Annual Improvements 2015–2017 Cycle	Amendments to HKFRS, HKFRS 11, HKAS 12 and HKAS 23

Except as described below for HKFRS 16, the adoption of above new and revised standards has had no significant financial effect on the unaudited condensed consolidated third quarterly financial information.

HKFRS 16 "Leases" replaced HKAS 17 and three related Interpretations.

Upon the adoption of HKFRS 16, at the commencement date of the lease, the lessee recognises a "lease liability" and a corresponding "right-of-use" asset. After initial recognition of this asset and liability, the lessee recognises interest expense accrued on the outstanding balance of the lease liability, and the depreciation of the right-of-use asset, instead of the current policy of recognising rental expenses incurred under operating leases on a systematic basis over the lease term. As a practical expedient, the lessee can elect not to apply this accounting model to short-term leases (i.e. where the lease term is 12 months or less) and to leases of low-value assets, in which case the rental expenses continue to be recognised on a systematic basis over the lease term.

HKFRS 16 primarily affects the Group's accounting as a lessee of premises which are classified as operating leases in previous year. The application of the new accounting model leads to an increase in both assets and liabilities and to impact on the timing of the expense recognition in the consolidated statement of profit or loss over the period of the lease.

2. 財務報表的呈報及編製基準(續)

會計政策及披露的變更

下列新訂及經修訂的準則及詮釋於2019年4月1日開 始的財政年度首次強制採用:

香港財務報告準則	具有負補償之提前還款特點
第9號的修訂
香港財務報告準則	租賃
第16號
香港會計準則	計劃修訂、縮減或結清
第19號的修訂
香港會計準則	聯營公司及合營企業
第28號的修訂	之長期權益
香港(國際財務	所得稅處理之不確定性
報告詮釋委員會)
-詮釋第23號
2015年至2017年	香港財務報告準則、香港
週期的年度改進	財務報告準則第11號、
	香港會計準則第12號及
	香港會計準則第23號
	的修訂

除下文所述的香港財務報告準則第16號外,採納上 述新訂及經修訂的準則對未經審核簡明綜合第三季度 財務資料並無重大財務影響。

香港財務報告準則第16號「租賃」已取代香港會計準 則第17號及三項相關詮釋。

採納香港財務報告準則第16號後,於租賃開始日期, 承租人確認「租賃負債」及相應的「使用權」資產。於 初步確認該資產及負債後,承租人確認租賃負債未償 還結餘的應計利息開支及使用權資產折舊,而非按現 有政策於租期內按系統基準確認根據經營租賃所產生 的租賃開支。作為實際的權宜方法,承租人可選擇不 將此會計模式應用於短期租賃(即租期為12個月或以 下)及低價值資產的租賃,於該等情況下,租金開支 繼續於租期內按系統基準確認。

香港財務報告準則第16號主要影響本集團作為物業 承租人(於往年分類為經營租賃)的會計處理方法。 應用新會計模式會導致資產及負債均有所增加,及影 響租賃期間於綜合損益表確認開支的時間。

2. BASIS OF PRESENTATION AND PREPARATION OF FINANCIAL STATEMENTS (continued)

Changes in accounting policy and disclosures (continued)

HKFRS 16 has been applied modified retrospective approach, with the cumulative effect of initial application recognised as an adjustment to the opening balances of retained profits as at 1 April 2019. Comparative information has not been restated. In addition, the Group elected the practical expedient for not applying the new accounting model to shortterm leases and leases of low-value assets and not to perform a full review of existing leases and apply HKFRS 16 only to new contracts. Furthermore, the Group has used the practical expedient to account for leases for which the lease term ends within 12 months from the date of initial application as short-term lease.

Upon the initial application of HKFRS 16, the Group measured the rights-of-use assets as if HKFRS 16 had always been applied by using the incremental borrowing rate at initial application date and the opening balances of lease liabilities and the corresponding right-of-use assets has been adjusted as at 1 April 2019.

The following table summarises the impact, net of tax, of transition to HKFRS 16 on the opening balances of retained profits:

2. 財務報表的呈報及編製基準(續)

會計政策及披露的變更(續)

香港財務報告準則第16號已應用經修訂追溯法,首 次應用的累計影響確認為對保留溢利於2019年4月1 日的期初結餘的調整。比較資料並不予以重列。再 者,本集團選取可行的權宜辦法不應用新會計模式至 短期租賃及低價值資產的租賃,並不對現有租賃進行 全面審核及僅應用香港財務報告準則第16號至新合 約。此外,本集團已使用可行的權宜辦法以就租賃期 由首次應用日期起計12個月內的租賃列賬為短期租 賃。

自首次應用香港財務報告準則第16號,本集團已使 用首次應用日期增量借款利率計量使用權資產,彷如 香港財務報告準則第16號已作經常應用,而租賃負 債的期初結餘及相應使用權資產已於2019年4月1日 經調整。

下表概述過渡至香港財務報告準則第16號對保留溢 利的期初結餘的影響(扣除稅項):

		Impact of adopting HKFRS 16 on opening
Recognition of interest of lease liabilities and		balances 採納香港財務報告 準則第16號對 期初結餘的影響 HK\$'000
depreciation of right-of-use assets	確認租賃負債的利息及使用權資產的折舊	千港元
Retained profits	保留溢利

Impact at 1 April 2019 於2019年4月1日的影響 (106)

Other than the recognition of lease liabilities and right-of-use assets, the Group expects that the transition adjustments to be made upon the initial adoption of HKFRS 16 will not be material. However, the expected changes in accounting policies as described above could have a material impact on the Group's financial statements from 2019 onwards.

除確認租賃負債及使用權資產以外,本集團預期將就 首次採納香港財務報告準則第16號所作出的過渡調 整並不重大。然而,上述會計政策的預期變動可對本 集團於2019年起之後的財務報表造成重大影響。

3. REVENUE

Revenue represents the invoiced values of goods sold and services rendered, after allowances for returns and discounts during the reporting periods.

1. 收益

收益指所售貨品及提供服務的發票值,其於報告期內 經扣除退貨及折扣後的發票值。

		Three months ended 31 December 截至12月31日止三個月		31 December 截至12月31日止九個月	Nine months ended
		2019	2018	2019	2018
		2019年	2018年	2019年	2018年
		HK\$'000	HK\$'000	HK\$'000	HK\$'000
		千港元	千港元	千港元	千港元
		(unaudited)	(unaudited)	(unaudited)	(unaudited)
		(未經審核)	(未經審核)	(未經審核)	(未經審核)
Sales of biometrics identification devices, security products	銷售生物特徵識別裝置、 保安產品及其他配件
and other accessories		8,290	7,107	25,998	24,288
Provision of auxiliary and other services	提供配套及其他服務	4,394	4,549	12,115	12,825
		12,684	11,656	38,113	37,113
		Three months ended 31 December		31 December	Nine months ended
		截至12月31日止三個月		截至12月31日止九個月
		2019	2018	2019	2018
		2019年 HK\$'000	2018年 HK\$'000	2019年 HK\$'000	2018年 HK\$'000
		千港元	千港元	千港元	千港元
		(unaudited)	(unaudited)	(unaudited)	(unaudited)
		(未經審核)	(未經審核)	(未經審核)	(未經審核)
Products and services transferred	於某一時間點轉移的
at a point in time	產品及服務	10,346	8,478	30,029	26,864
Services transferred over time	隨時間轉移的服務	2,338	3,178	8,084	10,249
		12,684	11,656	38,113	37,113

4. OTHER INCOME 4. 其他收入

		Three months ended 31 December 截至12月31日止三個月		Nine months ended 31 December 截至12月31日止九個月
		2019	2018	2019	2018
		2019年	2018年	2019年	2018年
		HK\$'000	HK\$'000	HK\$'000	HK\$'000
		千港元	千港元	千港元	千港元
		(unaudited)	(unaudited)	(unaudited)	(unaudited)
		(未經審核)	(未經審核)	(未經審核)	(未經審核)
Interest income Gain on disposals of property,	利息收入 出售物業、廠房及設備收益	230	202	608	482
plant and equipment		–	–	–	20
Others	其他	5	31	90	35
		235	233	698	537

5. INCOME TAX EXPENSE

5. 所得稅開支

			Three months ended 31 December 截至12月31日止三個月		Nine months ended 31 December 截至12月31日止九個月
		2019	2018	2019	2018
		2019年	2018年	2019年	2018年
		HK\$'000	HK\$'000	HK\$'000	HK\$'000
		千港元	千港元	千港元	千港元
		(unaudited)	(unaudited)	(unaudited)	(unaudited)
		(未經審核)	(未經審核)	(未經審核)	(未經審核)
Provision for the period:	期內撥備:
Hong Kong Profits Tax	香港利得稅	250	65	720	364
		250	65	720	364

Hong Kong Profits Tax is provided at 16.5% (three and nine months ended 31 December 2018: 16.5%) based on the estimated assessable profits arising in or derived from Hong Kong.

On 21 March 2018, the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the "Bill") which introduces the two-tiered profits tax rates regime. The Bill was signed into law on 28 March 2018 and was gazetted on the following day. Under the two-tiered profits tax rates regime, the first HK\$2 million of profits of the qualifying group entity will be taxed at 8.25%, and profits above HK\$2 million will be taxed at 16.5%. The profits of group entities not qualifying for the two-tiered profits tax rates regime will continue to be taxed at a flat rate of 16.5%.

For the Group's subsidiary established and operated in the PRC is subject to PRC Enterprise Income Tax at the rate of 25.0% (three and nine months ended 31 December 2018: 25.0%). No PRC Enterprise Income Tax has been provided for the three and nine months ended 31 December 2019 (three and nine months ended 31 December 2018: Nil) as the Group's PRC subsidiary either did not generate any assessable profits or has sufficient tax losses brought forward to offset against its assessable profits generated during the reporting periods.

For the Group's subsidiary established and operated in Macau is subject to Macao Complementary Tax, under which taxable income of up to MOP600,000 (2018: MOP600,000) is exempted from taxation with taxable income beyond this amount to be taxed at the rate of 12% (2018: 12%). No provision for Macao Complementary Tax has been made for the three and nine months ended 31 December 2019 and 2018 as the Group's subsidiary operated in Macau did not generate any assessable profit for the three and nine months ended 31 December 2019 and 2018.

香港利得稅已就於香港產生的估計應課稅溢利按稅率 16.5%(截至2018年12月31日止三個月及九個月: 16.5%)計提撥備。

於2018年3月21日,香港立法會通過2017年稅務(修 訂)(第7號)條例草案(「條例草案」),引入利得稅兩 級制。條例草案已於2018年3月28日簽署成為法律, 並於翌日在憲報刊登。根據利得稅兩級制,合資格集 團實體首2百萬港元的溢利將按8.25%的稅率繳納稅 項,而超過2百萬港元的溢利將按16.5%的稅率繳納 稅項。不符合利得稅兩級制資格的集團實體的溢利將 繼續按16.5%的統一稅率繳納稅項。

本集團在中國成立及經營的附屬公司須按稅率25.0% (截至2018年12月31日止三個月及九個月:25.0%) 繳納中國企業所得稅。截至2019年12月31日止三個 月及九個月內概無計提中國企業所得稅(截至2018年 12月31日止三個月及九個月:無),乃因為本集團的 中國附屬公司於報告期內並無產生任何應課稅溢利或 結轉稅項虧損足以抵銷其應課稅溢利。

本集團於澳門成立及經營的附屬公司須繳納澳門所得 補充稅,不超過600,000澳門幣(2018年:600,000 澳 門 幣 )的 應 課 稅 收 入 可 獲 豁 免 繳 稅, 而 超 過 600,000澳 門 幣 的 應 課 稅 收 入 則 按12%(2018年: 12%)的稅率繳納稅項。由於本集團於澳門經營的附 屬公司於截至2019年及2018年12月31日止三個月 及九個月並無產生任何應課稅溢利,故於截至2019 年及2018年12月31日止三個月及九個月概無計提澳 門所得補充稅。

6. LOSS FOR THE PERIOD

6. 期內虧損

		Three months ended 31 December		Nine months ended 31 December
		截至12月31日止三個月		截至12月31日止九個月
		2019	2018	2019	2018
		2019年	2018年	2019年	2018年
		HK\$'000	HK\$'000	HK\$'000	HK\$'000
		千港元	千港元	千港元	千港元
		(unaudited)	(unaudited)	(unaudited)	(unaudited)
		(未經審核)	(未經審核)	(未經審核)	(未經審核)
Depreciation	折舊
— Owned assets	— 自置資產	189	233	636	738
— Right-of-use assets	— 使用權資產	576	–	1,585	–
Staff costs (including Directors' emoluments)	員工成本(包括董事酬金)
— Salaries, bonus and allowances	— 薪金、花紅、津貼
and other benefits in kind	及其他實物利益	5,798	8,542	17,342	15,676
— Commission	— 佣金	112	158	381	543
— Retirement benefits scheme	— 退休福利計劃供款
contributions		320	379	969	873
		6,230	9,079	18,692	17,092
Cost of inventories sold	已售存貨成本	5,381	4,512	14,422	14,019
Foreign exchange losses, net	匯兌虧損淨額	12	31	132	173
Gain on disposals of property,	出售物業、廠房及設備收益
plant and equipment		–	–	–	20
Auditor's remuneration	核數師酬金	205	125	492	399

7. DIVIDEND

No dividend was declared or paid during the three and nine months ended 31 December 2019 (three and nine months ended 31 December 2018: Nil).

7. 股息

本公司並無於截至2019年12月31日止三個月及九個 月宣派或派付股息(截至2018年12月31日止三個月 及九個月:無)。

8. LOSS PER SHARE

(a) Basic loss per share

The calculation of the basic loss per share is based on the following:

(a) 每股基本虧損

每股基本虧損乃基於以下數據計算:

		Three months ended 31 December 截至12月31日止三個月		Nine months ended 31 December 截至12月31日止九個月
		2019	2018	2019	2018
		2019年	2018年	2019年	2018年
		HK\$'000	HK\$'000	HK\$'000	HK\$'000
		千港元	千港元	千港元	千港元
		(unaudited)	(unaudited)	(unaudited)	(unaudited)
		(未經審核)	(未經審核)	(未經審核)	(未經審核)
Loss for the purpose of calculating basic loss per share	就計算每股基本虧損的虧損	(1,509)	(2,161)	(4,550)	(2,211)
Number of shares	股份數目
Weighted average number of ordinary shares for the purpose of calculating basic	就計算每股基本虧損的 普通股加權平均數
loss per share		800,000,000	800,000,000	800,000,000	800,000,000

(b) Diluted loss per share

No diluted loss per share to be presented as the Company did not have any dilutive potential ordinary shares outstanding during the three and nine months ended 31 December 2019 and 2018.

9. SHARE OPTION SCHEMES

On 18 January 2018, written resolution of the shareholders of the Company was passed to conditionally approve and adopt a share option scheme ("Share Option Scheme") to recognise and motivate the contributions that eligible participants have made or may make to the Group.

The Share Option Scheme adopted by the Company on 18 January 2018 will remain in force for a period of ten years from its effective date to 17 January 2028. Particulars of the Share Option Scheme of the Company are set out in Appendix IV to the Company's prospectus dated 30 January 2018 (the "Prospectus").

No share option has been granted by the Company under the Share Option Scheme since its effective date and up to the end of the reporting period.

(b) 每股攤薄虧損

並無可呈列的每股攤薄虧損,乃因本公司於截 至2019年及2018年12月31日止三個月及九 個月並無任何流通在外的潛在可攤薄普通股。

9. 購股權計劃

於2018年1月18日,本公司股東書面決議案獲通過 以有條件批准及採納購股權計劃(「購股權計劃」)以 表揚及激勵合資格參與者對本集團已作出或可能作出 的貢獻。

本公司於2018年1月18日採納的購股權計劃自其生 效日期至2028年1月17日止的十年期間維持有效。 本公司購股權計劃的詳情載於本公司日期為2018年 1月30日的招股章程(「招股章程」)附錄四。

自生效日期起及直至報告期末,本公司概無根據購股 權計劃授出任何購股權。

Overview

The Group is a provider of biometrics identification solutions in Hong Kong, Macau and the PRC. The Group derives revenue from the following business activities: (i) sales of products which include biometrics identification devices, and other devices and accessories; and (ii) provision of auxiliary and other services. The Group's biometrics identification devices have one or more of the following functions: (i) face identification; (ii) fingerprint identification; (iii) finger vein identification; (iv) hand geometry identification; and (v) iris identification. The revenue of the Group for the nine months ended 31 December 2019 was approximately HK\$38.1 million, representing an increase of approximately 2.7% from approximately HK\$37.1 million for the nine months ended 31 December 2018. The increase in revenue was mainly because the increase in sales of biometrics identification devices and other accessories as compared with the corresponding period in 2018.

概覽

本集團為香港、澳門及中國的生物特徵識別解決方案供應 商。本集團透過以下業務活動產生收益:(i)產品銷售包括生 物特徵識別裝置以及其他裝置及配件;及(ii)提供配套及其 他服務。本集團的生物特徵識別裝置有一個或以上的以下功 能:(i)人臉識別;(ii)指紋識別;(iii)指靜脈識別;(iv)掌形識別; 及(v)虹膜識別。截至2019年12月31日止九個月,本集團 的收益約為38.1百萬港元,較截至2018年12月31日止九 個月約37.1百萬港元增加約2.7%。收益增加主要由於生物 特徵識別裝置及其他配件的銷售較2018年同期增加。

Revenue represents the invoiced values of goods sold and services rendered, after allowances for returns and discounts during the reporting periods.

收益指所售貨品及提供服務的發票值,其於報告期內經扣除 退貨及折扣後的發票值。

	Three months ended 31 December 截至12月31日止三個月		31 December 截至12月31日止九個月	Nine months ended
	2019	2018	2019	2018
	2019年	2018年	2019年	2018年
	HK\$'000	HK\$'000	HK\$'000	HK\$'000
	千港元	千港元	千港元	千港元
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
	(未經審核)	(未經審核)	(未經審核)	(未經審核)
銷售生物特徵識別裝置、 Sales of biometrics identification devices, security products 保安產品及其他配件 and other accessories	8,290	7,107	25,998	24,288
Provision of auxiliary and other services 提供配套及其他服務	4,394	4,549	12,115	12,825
	12,684	11,656	38,113	37,113

Cost of Sales and Gross Profit

The majority of the Group's cost of sales was costs of inventories sold. The Group's costs of inventories sold increased by approximately 2.9% to approximately HK\$14.4 million for the nine months ended 31 December 2019 as compared to the same period last year. The gross profit margin dropped from approximately 49.0% for the nine months ended 31 December 2018 to approximately 44.4% for the nine months ended 31 December 2019. The gross profit also dropped from approximately HK\$18.2 million for the nine months ended 31 December 2018 to approximately HK\$16.9 million for the nine months ended 31 December 2019. The decrease in gross profit margin and gross profit was mainly due to the decrease in gross profit of handheld devices.

Expenses

Staff costs for the nine months ended 31 December 2019 were approximately HK\$18.7 million (nine months ended 31 December 2018: approximately HK\$17.1 million), representing an increase of approximately HK\$1.6 million as compared with that of last year, which was mainly due to the salary increment during the period.

Administrative expenses for the nine months ended 31 December 2019 was approximately HK\$17.1 million (nine months ended 31 December 2018: approximately HK\$15.7 million), representing an increase of approximately HK\$1.4 million as compared with the last corresponding period, which was mainly due to the increase in staff costs.

Loss for the Period

The Group incurred a net loss of approximately HK\$4.6 million for the nine months ended 31 December 2019, as compared with a net loss of approximately HK\$2.2 million for the nine months ended 31 December 2018. The increase in net loss was mainly due to (i) the increase in staff costs; and (ii) the drop in gross profit margin.

The Board does not recommend the payment of dividends for the nine months ended 31 December 2019.

銷售成本及毛利

本集團大部份銷售成本為已售存貨成本。截至2019年12月 31日止九個月,本集團的已售存貨成本較去年同期增加約 2.9%至約14.4百萬港元。毛利率由截至2018年12月31日 止九個月約49.0%減少至截至2019年12月31日止九個月 約44.4%。毛利亦由截至2018年12月31日止九個月約18.2 百萬港元減至截至2019年12月31日止九個月約16.9百萬 港元。毛利率及毛利的減少主要由於手提裝置的毛利降低。

開支

截至2019年12月31日止九個月,員工成本約為18.7百萬 港元(截至2018年12月31日止九個月:約17.1百萬港元), 較去年增加約1.6百萬港元,主要由於期內薪金增加。

截至2019年12月31日止九個月,行政開支約為17.1百萬 港元(截至2018年12月31日止九個月:約15.7百萬港元), 較去年同期增加約1.4百萬港元,主要由於員工成本增加所 致。

期內虧損

截至2019年12月31日止九個月,本集團產生淨虧損約4.6 百萬港元,而截至2018年12月31日止九個月的淨虧損為約 2.2百萬港元。淨虧損增加乃主要由於(i)員工成本增加;及(ii) 毛利率下跌所致。

董事會不建議就截至2019年12月31日止九個月派付股息。

Outlook

The ordinary shares of HK\$0.01 each (the "Shares") of the Company have been successfully listed on GEM on 14 February 2018. The Board considers that such public listing status will allow the Company to gain access to the capital market for corporate finance exercise, assist the Company in the future business development, enhance the Group's corporate profile and recognition and strengthen the Group's competitiveness.

Looking forward, the Group plans to generate further growth in existing business by strengthening its marketing capabilities and expanding its product portfolio through enhancing software development, with a view to further enlarging its market share in Hong Kong and Macau and becoming one of the active biometrics identification solutions providers in the PRC. As such, the Group plans to utilise the net proceeds from the Listing by way of share offer pursuant to the Prospectus on (i) launching of affordable locally manufactured fingerprint identification devices as part of the expansion plan of the business in Southern China; (ii) enhancing the quality of after-sale services and strengthening of the operation support as part of the expansion plan of the business in Southern China; (iii) improving its information technology system; and (iv) setting up a new and separate software development center in the PRC to further enhance and develop the Group's software.

With the social events in the past few months and the latest spread of coronavirus epidemic in Hong Kong, the Group plans to diversify its business to maintain a healthy portfolio. Leveraging on the experience of the Directors, we consider setting up new business lines including artificial intelligence technology solutions, catering management and trade services.

展望

本公司每股0.01港元的普通股(「股份」)已於2018年2月14 日在GEM成功上市。董事會認為,上市地位將讓本公司利 用資本市場進行企業融資,有助本公司的未來業務發展、提 升本集團的企業形象及認受性以及加強本集團的競爭力。

展望將來,本集團計劃透過加強其營銷能力及加強軟件開發 擴大其產品組合,進一步發展其現有業務,旨在進一步擴大 於香港及澳門的市場佔有率及成為活躍的中國生物特徵識別 解決方案供應商之一。因此,本集團計劃根據招股章程以股 份發售方式動用上市所得款項淨額,以(i)推出本地製造可負 擔指紋識別裝置,作為計劃拓展華南地區業務的一部分;(ii) 提高售後服務的質量及加強營運支援,作為拓展華南地區業 務的一部分;(iii)改進其資訊科技系統;及(iv)於中國設立一 個新的獨立軟件開發中心以進一步提升及開發本集團的軟 件。

由於香港過去數月的社會事件及近期肺炎疫情,本集團計劃 多元化其業務,維持穩健的組合。憑藉董事的經驗,我們考 慮設立包括人工智能科技解決方案、餐飲管理及貿易服務等 產業鏈。

Directors' and Chief Executives' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation

As at 31 December 2019, the interests and short positions of the Directors and chief executive of the Company in the shares, underlying shares and debentures of the Company or any of its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance ("SFO")), which were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions in which they were taken or deemed to have under such provisions of the SFO) or which were required pursuant to Section 352 of the SFO to be entered in the register referred to therein, or which were required to be notified to the Company and the Stock Exchange pursuant to Rules 5.46 to 5.67 of the GEM Listing Rules were as follows:

董事及最高行政人員於本公司及任何關聯法團 的股份、相關股份及債權證的權益及淡倉

於2019年12月31日,董事及本公司最高行政人員於本公司 或其任何相聯法團(定義見證券及期貨條例(「證券及期貨條 例」)第XV部)的股份、相關股份及債權證中,擁有根據證券 及期貨條例第XV部第7及第8分部須知會本公司及聯交所的 權益及淡倉(包括彼等根據證券及期貨條例有關條文被認為 或視作擁有的權益及淡倉),或根據證券及期貨條例第352 條須記錄在該條文所述登記冊內的權益及淡倉,或根據 GEM上市規則第5.46至5.67條須知會本公司及聯交所的權 益及淡倉如下:

Long positions	好倉
Ordinary share of the Company	本公司普通股

					Number of shares	Percentage of the Company's issued share
Name		Capacity and nature of interest			(note 1)	capital
					股份數目	佔本公司已發行
名稱		身份及權益性質			(附註1)	股本之百分比
	Mr. Yuen Kwok Wai, Tony ("Mr. Tony Yuen") (note 2) 阮國偉先生(「阮國偉先生」)(附註2)	Interest of controlled corporation 受控制法團權益			366,000,000 (L)	45.75%
	Ms. Yuen Mei Ling, Pauline ("Ms. Pauline Yuen") (note 2) Interest of controlled corporation 阮美玲女士(「阮美玲女士」)(附註2)	受控制法團權益			366,000,000 (L)	45.75%
Notes:			附註:
1.	The letter "L" denotes a long position in the shareholder's interest in the share capital of the Company.		1.		英文字母「L」表示股東於本公司股本的好倉。
2.	Delighting View Global Limited ("Delighting View") directly holds 366,000,000 Shares. As Delighting View is beneficially owned as to 85% and 15% by Mr. Tony Yuen and Ms. Pauline Yuen respectively and Mr. Tony Yuen and Ms. Pauline Yuen are parties acting in concert, each of Mr. Tony Yuen and Ms. Pauline Yuen is deemed to be interested in all the Share held by Delighting View under the SFO.		2.	份中擁有權益。		Delighting View Global Limited(「Delighting View」)直接持有 366,000,000股股份。由於Delighting View分別由阮國偉先生 及阮美玲女士實益擁有85%及15%,且阮國偉先生及阮美玲 女士為一致行動人士,故根據證券及期貨條例,阮國偉先生 及阮美玲女士各自被視為於Delighting View所持有的所有股

Save as disclosed above, as at 31 December 2019, none of the Directors and chief executive of the Company or their associates (as defined in the GEM Listing Rules) had any interests or short positions in any shares, underlying shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) which were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 ad 8 of Part XV of the SFO (including interests or short positions which each of them has taken or deemed to be taken under the provisions of the SFO); or which were required, pursuant to Section 352 of the SFO, to be entered into the register referred to therein; or which were required, pursuant to Rules 5.46 to 5.67 of the GEM Listing Rules to be notified to the Company and the Stock Exchange.

除上文所披露者外,於2019年12月31日,概無董事及本公 司最高行政人員或彼等之聯繫人(定義見GEM上市規則)於 本公司或其任何相聯法團(定義見證券及期貨條例第XV部) 的股份、相關股份及債權證中,擁有根據證券及期貨條例第 XV部第7及8分部須知會本公司及聯交所的權益及淡倉(包 括根據證券及期貨條例有關條文彼等各自被當作或視為擁有 的權益或淡倉),或根據證券及期貨條例第352條須記錄於 該條例所指登記冊內的權益及淡倉,或根據GEM上市規則 第5.46至5.67條須知會本公司及聯交所的權益及淡倉。

Substantial Shareholders' and Other Persons' Interests and Short Positions in the Shares and Underlying Shares of the Company

As at 31 December 2019, so far as is known to the Directors, the following persons, not being Directors or chief executive of the Company had, or were deemed to have, interests or short position in the shares or underlying shares of the Company which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO; or which were recorded in the register required to be kept by the Company under Section 336 of the SFO; or who is directly or indirectly, to be interested in 5% or more of the nominal value of any class of share capital carrying rights to vote in all circumstances at general meetings of the Company:

主要股東及其他人士於本公司股份及相關股份 的權益及淡倉

於2019年12月31日,據董事所知悉,下列人士(並非董事 或本公司最高行政人員)於本公司股份或相關股份中擁有或 被視為擁有根據證券及期貨條例第XV部第2及3分部條文須 向本公司披露的權益或淡倉;或記錄於本公司根據證券及期 貨條例第336條須存置的登記冊的權益或淡倉;或直接或間 接擁有附帶權利於任何情況下均可在本公司的股東大會上投 票的任何類別股本面值5%或以上權益:

Long positions

Ordinary shares of the Company

好倉 本公司普通股

Name 名稱	Capacity and nature of interest 身份及權益性質	Number of shares (note 1) 股份數目 (附註1)	Percentage of the Company's issued share capital 佔本公司已發行 股本之百分比
Delighting View (note 2) Delighting View(附註2)	Beneficial owner 實益擁有人	366,000,000 (L)	45.75%
Super Arena Limited ("Super Arena") (note 3) Super Arena Limited(「Super Arena」)(附註3)	Beneficial owner 實益擁有人	100,000,000 (L)	12.5%
Mr. Kor Sing Mung, Michael ("Mr. Kor") (note 3) Kor Sing Mung, Michael先生(「Kor先生」)(附註3)	Interest of controlled corporation 受控制法團權益	100,000,000 (L)	12.5%

Notes:

• 1. The letter "L" denotes a long position in the shareholder's interest in the share capital of the Company.
• 1. As Delighting View is beneficially owned as to 85% and 15% by Mr. Tony Yuen and Ms. Pauline Yuen respectively and Mr. Tony Yuen and Ms. Pauline Yuen are parties acting in concert, each of Mr. Tony Yuen and Ms. Pauline Yuen is deemed to be interested in all the Shares held by Delighting View under the SFO.
• 1. Super Arena directly holds 100,000,000 Shares. As Super Arena is beneficially owned as to 70% by Mr. Kor, Mr. Kor is deemed to be interested in all the Shares held by Super Arena under the SFO.

Save as disclosed above, as at 31 December 2019, the Directors are not aware of any other person, other than Directors and the chief executive of the Company who had, or was deemed to have, interests or short positions in the shares or underlying shares of the Company which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO or, which were recorded in the register required to be kept by the Company under Section 336 of the SFO; or who is directly or indirectly, to be interested in 5% or more of the nominal value of any class of share capital carrying rights to vote in all circumstances at general meetings of the Company or options in respect of such share capital.

Purchases, Sales or Redemption of Listed Securities of the Company

Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's listed securities during the nine months ended 31 December 2019.

Compliance Adviser's Interests

As at the date of this report, save and except for (i) the participation of Ample Capital Limited (the "Compliance Adviser") as the sponsor and Ample Orient Capital Limited as one of the underwriters and joint lead managers in relation to the Listing; and (ii) the compliance adviser's agreement entered into between the Company and the Compliance Adviser dated 25 January 2018, neither the Compliance Adviser, nor any of its directors, employees or close associates (as defined in the GEM Listing Rules) had any interests in the securities of the Company or any other companies of the Group (including options or rights to subscribe for such securities) which is required to be notified to the Company pursuant to rule 6A.32 of the GEM Listing Rules.

• 附註:
• 1. 英文字母「L」表示股東於本公司股本權益的好倉。
• 1. 由於Delighting View分別由阮國偉先生及阮美玲女士實益擁 有85%及15%,且阮國偉先生及阮美玲女士為一致行動人士, 故根據證券及期貨條例,阮國偉先生及阮美玲女士各自被視 為於Delighting View所持有的所有股份中擁有權益。
• 1. Super Arena直接持有100,000,000股股份。由於Super Arena 由Kor先生實益擁有70%,故根據證券及期貨條例,Kor先生 被視為於Super Arena所持有的所有股份中擁有權益。

除上文披露者外,於2019年12月31日,董事並不知悉任何 其他人士(董事及本公司最高行政人員除外)於本公司股份 或相關股份中擁有或被視為擁有根據證券及期貨條例第XV 部第2及3分部條文須向本公司披露的權益或淡倉;或記錄 於本公司根據證券及期貨條例第336條須存置的登記冊的權 益或淡倉;或直接或間接擁有附帶權利於任何情況下均可在 本公司的股東大會上投票的任何類別股本面值5%或以上權 益或有關該股本的購股權。

購買、出售或贖回本公司上市證券

本公司或其任何附屬公司截至2019年12月31日止九個月內, 概無購買、出售或贖回任何本公司上市證券。

合規顧問權益

於本報告日期,除(i)豐盛融資有限公司(「合規顧問」,作為 保薦人)及豐盛東方資本有限公司(作為包銷商及聯席牽頭 經辦人)參與上市;及(ii)本公司與合規顧問訂立日期為2018 年1月25日的合規顧問協議外,合規顧問或其任何董事、 僱員或緊密聯繫人(定義見GEM上市規則)並無於本公司或 本集團任何其他公司的證券擁有任何須根據GEM上市規則 第6A.32條須知會本公司的權益(包括購股權或認購有關證 券的權利)。

Competing Interests

The Directors confirm that as at 31 December 2019, none of the Directors, the controlling shareholders of the Company and their respective associates (as defined in the GEM Listing Rules) had any interest in any business which competes or is likely to compete, directly or indirectly, with the business of the Group or any other conflicts of interest with the Group.

COMPLIANCE WITH THE REQUIRED STANDARD OF DEALINGS IN SECURITIES TRANSACTIONS BY DIRECTORS

The Company has adopted the required standard of dealings (the "Required Standard of Dealings") as the code for securities transactions by the Directors on the guidelines as set out in Rules 5.48 to 5.67 of the GEM Listing Rules. Further, the Company had made specific enquiry with all Directors and each of them has confirmed his/her compliance with the Required Standard of Dealings since the Listing up to the date of this report.

CORPORATE GOVERNANCE PRACTICES

The Company endeavours to maintain high standard of corporate governance for the enhancement of shareholders' value and provide transparency, accountability and independence. Except for the deviation from code provision A.2.1, the Company had complied with the required code provisions set out in the Corporate Governance Code contained in Appendix 15 to the GEM Listing Rules (the "CG Code") since the Listing and up to the date of this report.

Code provision A.2.1 of the CG Code stipulates that the roles of chairman and chief executive officer should be separate and should not be performed by the same individual. Mr. Tony Yuen is the chairman and the chief executive officer of the Company. In view of Mr. Tony Yuen is one of the founders of the Group and has been operating and managing the Group since June 1999, the Board believes that it is in the best interest of the Group to have Mr. Tony Yuen taking up both roles for effective management and business development. Therefore the Board considers that the deviation from the code provision A.2.1 of the CG Code is appropriate in such circumstances.

競爭權益

董事確認,於2019年12月31日,概無董事、本公司控股股 東及彼等各自的聯繫人(定義見GEM上市規則)於與本集團 業務直接或間接構成競爭或可能構成競爭的任何業務中擁有 任何權益或與本集團有其他利益衝突。

遵守董事進行證券交易的必守標準

本公司已採納GEM上市規則第5.48至第5.67條所載交易必 守標準(「交易必守標準」),作為規管董事進行證券交易的守 則。再者,本公司已向全體董事作出具體查詢,而彼等各自 已確認,自上市起直至本報告日期,彼已遵守交易必守標 準。

企業管治常規

本公司致力維持高水準企業管治以提高股東價值,並提供透 明度、問責性及獨立性。除偏離守則條文第A.2.1條外,本 公司自上市起及至本報告日期已遵守GEM上巿規則附錄 十五所載企業管治守則(「企業管治守則」)所載規定守則條 文。

企業管治守則守則條文第A.2.1條規定,主席與行政總裁的 角色應予區分且不應由同一人士擔任。阮國偉先生為本公司 主席兼行政總裁。鑒於阮國偉先生為本集團創辦人之一且自 1999年6月起一直營運及管理本集團,董事會認為就有效 管理及業務發展而言,由阮國偉先生同時出任兩個職位合乎 本集團的最佳利益。因此,董事會認為在有關情況下偏離企 業管治守則守則條文第A.2.1條實屬恰當。

Audit Committee

The Company has established the Audit Committee with written terms of reference in compliance with rules 5.28 and 5.29 of the GEM Listing Rules and code provisions C.3.3 and C.3.7 of the CG Code. The primary duties of the Audit Committee are to review and supervise the financial reporting process and internal control systems of the Group. The Audit Committee comprises three independent non-executive Directors, namely Mr. Chung Billy (chairman of the Audit Committee), Mr. Hui Man Ho, Ivan and Mr. Mui Pak Kuen.

The unaudited condensed consolidated financial statements of the Company for the three and nine months ended 31 December 2019 has been reviewed by the Audit Committee. The Audit Committee is of the opinion that such financial information complies with the applicable accounting standards, the GEM Listing Rules and legal requirements, and that adequate disclosure have been made.

By order of the Board Prime Intelligence Solutions Group Limited 匯安智能科技集團有限公司 Mr. Yuen Kwok Wai, Tony Chairman

審核委員會

本公司已遵循GEM上市規則第5.28及5.29條及企業管治守 則守則條文第C.3.3及C.3.7條成立審核委員會,並以書面 列明其職權範疇。審核委員會的主要職責為檢討及監察本集 團的財務申報程序及內部監控系統。審核委員會由三名獨立 非執行董事組成,即鍾定縉先生(審核委員會主席)、許文浩 先生及梅栢權先生。

本公司截至2019年12月31日止三個月及九個月的未經審 核簡明綜合財務報表已經審核委員會審閱。審核委員會認 為,有關財務資料符合適用會計準則、GEM上市規則及法 定要求,並已作出足夠披露。

承董事會命 Prime Intelligence Solutions Group Limited 匯安智能科技集團有限公司 主席 阮國偉先生

Hong Kong, 10 February 2020

香港,2020年2月10日

As at the date of this report, the executive Directors are Mr. Yuen Kwok Wai, Tony, Ms. Yuen Mei Ling, Pauline, and Ms. Sun Ngai Chu, Danielle; the nonexecutive Director is Mr. Yam Chiu Fan, Joseph; and the independent nonexecutive Directors are Mr. Hui Man Ho, Ivan, Mr. Chung Billy and Mr. Mui Pak Kuen.

於本報告日期,執行董事為阮國偉先生、阮美玲女士及孫毅 珠女士;非執行董事為任超凡先生;及獨立非執行董事為許 文浩先生、鍾定縉先生及梅栢權先生。