Prime Intelligence Solutions Group Limited — Interim / Quarterly Report 2021

Aug 13, 2021

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 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 given 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聯交所對本報告的內容概不負責,對其準確性或完整性亦不發表任何聲明,並明確表示概不就因本報告全部或任何 部分內容而產生或因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

Windward 3, Regatta Office Park P.O. Box 1350 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 Mr. Mui Pak Kuen

NON-EXECUTIVE DIRECTOR

Mr. Yam Chiu Fan, Joseph

INDEPENDENT NON-EXECUTIVE DIRECTORS

Mr. Hui Man Ho, Ivan Mr. Chung Billy Mr. Poon Wai Hung Richard

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. Poon Wai Hung Richard

註冊辦事處

Windward 3, Regatta Office Park P.O. Box 1350 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 梅栢權先生

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 潘偉雄先生

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

潘偉雄先生

Corporate Information 公司資料

NOMINATION COMMITTEE

Mr. Hui Man Ho, Ivan (Chairman) Mr. Chung Billy Mr. Poon Wai Hung Richard

REMUNERATION COMMITTEE

Mr. Chung Billy (Chairman) Mr. Hui Man Ho, Ivan Mr. Poon Wai Hung Richard Ms. Yuen Mei Ling, Pauline

LEGAL ADVISER

As to Hong Kong law Hastings & Co.

AUDITOR

McMillan Woods (Hong Kong) CPA Limited 3/F., Winbase Centre 208 Queen's Road Central Hong Kong

PRINCIPAL SHARE REGISTRAR AND TRANSFER OFFICE IN THE CAYMAN ISLANDS

Ocorian Trust (Cayman) Ltd. Windward 3, Regatta Office Park P.O. Box 1350 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 BANKERS

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 潘偉雄先生

薪酬委員會 鍾定縉先生(主席)

許文浩先生 潘偉雄先生 阮美玲女士

法律顧問 有關香港法律 希仕廷律師行

核數師 長青(香港)會計師事務所有限公司 香港 皇后大道中208號 勝基中心3樓

開曼群島主要股份過戶登記處

Ocorian Trust (Cayman) Ltd. Windward 3, Regatta Office Park P.O. Box 1350 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 (the "Board") of Directors (the "Director(s)") 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 months ended 30 June 2021, together with the comparative figures for the corresponding period in 2020, as follows:

匯安智能科技集團有限公司(「本公司」)董事(「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2021年6月30日止三個月的未經審核簡明綜合業績, 連同2020年同期比較數字:

			Three months ended 30 June 截至6月30日止三個月
			2021	2020
			2021年	2020年
			HK\$'000	HK\$'000
			千港元	千港元
		Notes	(unaudited)	(unaudited)
		附註	(未經審核)	(未經審核)
Revenue	收益	3	13,432	10,421
Cost of sales and services rendered	銷售及提供服務成本		(7,789)	(5,265)
Gross profit	毛利		5,643	5,156
Other income	其他收入	4	3	572
Selling and distribution costs	銷售及分銷成本		(1,083)	(930)
Administrative and other operating expenses	行政及其他經營開支		(6,300)	(4,880)
Loss from operation	來自經營之虧損		(1,737)	(82)
Finance costs	財務成本		(33)	(41)
Loss before tax	除稅前虧損		(1,770)	(123)
Income tax expense	所得稅開支	5	(224)	(240)
Loss for the period	期內虧損	6	(1,994)	(363)
Other comprehensive income for the period, net of tax:	期內其他全面收益,扣除稅項:
Item that may be reclassified to profit or loss:	可能重新分類至損益之項目:
Exchange differences on translating foreign operations	換算海外業務時之匯兌差額		–	–
Total comprehensive income for	本公司擁有人應佔期內
the period attributable to the owners	全面收益總額
of the Company			(1,994)	(363)
Loss per share (HK cents)	每股虧損(港仙)
— Basic and diluted	— 基本及攤薄	8	(0.25)	(0.05)

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

					本公司擁有人應佔	Attributable to the owners of the Company Foreign currency
		Share capital	Share premium	Merger reserve	Legal reserve	translation reserve	Retained profits	Total reserve	Total equity
		股本 HK\$'000	股份溢價 HK\$'000	合併儲備 HK\$'000	法定儲備 HK\$'000	外幣換算 儲備 HK\$'000	保留溢利 HK\$'000	總儲備 HK\$'000	總權益 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 2020 (audited) Total comprehensive income	於2020年4月1日 的餘額(經審核) 期內全面收益總額	8,000	51,682	17,079	12	(689)	12,683	80,767	88,767
for the period (unaudited)	(未經審核)	–	–	–	–	–	(363)	(363)	(363)
Balance at 30 June 2020 (unaudited)	於2020年6月30日 的餘額(未經審核)	8,000	51,682	17,079	12	(689)	12,320	80,404	88,404
Balance at 1 April 2021 (audited) Total comprehensive income for the period (unaudited)	於2021年4月1日 的餘額(經審核) 期內全面收益總額 (未經審核)	8,000 –	51,682 –	17,079 –	12 –	(151) –	5,582 (1,994)	74,204 (1,994)	82,204 (1,994)
Balance at 30 June 2021 (unaudited)	於2021年6月30日 的餘額(未經審核)	8,000	51,682	17,079	12	(151)	3,588	72,210	80,210

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 Windward 3, Regatta Office Park, P.O. Box 1350, 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 months ended 30 June 2021 have been prepared in accordance with accounting principles generally accepted in Hong Kong and comply with Hong Kong Financial Reporting Standards ("HKFRSs") issued by Hong Kong Institute of Certified Public Accountants (the "HKICPA") and the applicable disclosure provisions of the Rules Governing the Listing of Securities on GEM of the Stock Exchange.

These unaudited condensed consolidated results are presented in Hong Kong dollars ("HK\$"), which is the functional currency of the Company.

These condensed consolidated results have not been audited but have been reviewed by the audit committee of the Company.

The unaudited condensed consolidated results of the Group for the three months ended 30 June 2021 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 2021 (the "2021 Consolidated Financial Statements"). The accounting policies and methods of computation used in the preparation of the unaudited condensed consolidated results are consistent with those used in the 2021 Consolidated Financial Statements, except for those new and revised HKFRSs and interpretation issued by the HKICPA that are adopted for the first time in the unaudited condensed consolidated financial statements for the three months ended 30 June 2021.

The adoption of these new and revised HKFRSs had no significant effects on the results and financial position of the Group for the current and prior periods.

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。本公 司 註 冊 辦 事 處 地 址 為Windward 3, Regatta Office Park, P.O. Box 1350, 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2021年6月30日止三個月未經審核簡明 綜合財務報表已遵照香港公認會計原則、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」)及聯交所GEM證券上市規則 之適用披露條文編製。

該等未經審核簡明綜合業績以港元(「港元」)呈列, 港元為本公司之功能貨幣。

該等簡明綜合業績未經審核,但已由本公司審核委員 會審閱。

本集團截至2021年6月30日止三個月的未經審核簡 明綜合業績並不包括本集團年度財務報表所要求的所 有資料及披露,並應與本集團截至2021年3月31日 止年度綜合財務報表(「2021綜合財務報表」)一併閱 讀。除於截至2021年6月30日止三個月的未經審核 簡明綜合財務報表中首次應用由香港會計師公會頒佈 的新訂及經修訂香港財務報告準則及詮釋外,編製未 經審核簡明綜合業績所用的會計政策及計算方法與 2021綜合財務報表所用者貫徹一致。

採納該等新訂及經修訂香港財務報告準則對本集團於 本期間及過往期間的業績及財務狀況並無重大影響。

3. REVENUE

1. 收益

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 30 June 截至6月30日止三個月
		2021	2020
		2021年	2020年
		HK\$'000	HK\$'000
		千港元	千港元
		(unaudited)	(unaudited)
		(未經審核)	(未經審核)
Sales of biometrics identification devices,	銷售生物特徵識別裝置、
security products and other accessories	保安產品及其他配件	9,096	6,769
Provision of auxiliary and other services	提供配套及其他服務	4,336	3,652
		13,432	10,421
			Three months ended 30 June

			截至6月30日止三個月
		2021	2020
		2021年	2020年
		HK\$'000	HK\$'000
		千港元	千港元
Revenue from contracts with customers within	香港財務報告準則第15號範圍內	(unaudited)	(unaudited)
the scope of HKFRS 15	的客戶合約收益	(未經審核)	(未經審核)
Recognised at a point in time	於某一時間點確認	10,135	7,378
Recognised over time	隨時間確認	3,297	3,043
		13,432	10,421

4. OTHER INCOME

4. 其他收入

			Three months ended 30 June 截至6月30日止三個月
		2021	2020
		2021年	2020年
		HK\$'000	HK\$'000
		千港元	千港元
		(unaudited)	(unaudited)
		(未經審核)	(未經審核)
Interest income	利息收入	1	123
Government subsidies	政府補助	–	320
Others	其他	2	129
		3	572

5. INCOME TAX EXPENSE

5. 所得稅開支

			Three months ended 30 June 截至6月30日止三個月
		2021	2020
		2021年	2020年
		HK\$'000	HK\$'000
		千港元	千港元
		(unaudited)	(unaudited)
		(未經審核)	(未經審核)
Provision for the period: Hong Kong Special Administrative Region ("Hong Kong") of the People's Republic of	期內撥備: 中華人民共和國(「中國」) 香港特別行政區(「香港」)
China ("PRC") Profits Tax	利得稅	224	240

The Group is not subject to taxation in the Cayman Islands and the British Virgin Islands.

Under the two-tiered Profits Tax Regime, one of the Company's Hong Kong subsidiaries is subject to Hong Kong Profits Tax at the rate of 8.25% (three months ended 30 June 2020: 8.25%) for the first HK\$2 million of its estimated assessable profits and at 16.5% (three months ended 30 June 2020: 16.5%) on its estimated assessable profits above HK\$2 million. Other Hong Kong subsidiaries not qualifying for the twotiered Profit Tax Regime are subject to Hong Kong Profits Tax at the rate of 16.5% (three months ended 30 June 2020: 16.5%) for the three months ended 30 June 2021.

本集團毋須繳納開曼群島及英屬處女群島的稅項。

根據兩級利得稅制度,本公司其中一間香港附屬公司 須就估計應課稅溢利的首2百萬港元按8.25%(截至 2020年6月30日止三個月:8.25%)稅率繳納香港利 得稅,並就超過2百萬港元的估計應課稅溢利按 16.5%(截至2020年6月30日止三個月:16.5%)的 稅率繳納香港利得稅。截至2021年6月30日止三個 月,本公司其他不符合兩級利得稅制度的香港附屬公 司 須 按16.5%( 截 至2020年6月30日 止 三 個 月: 16.5%)的稅率繳納香港利得稅。

5. INCOME TAX EXPENSE (continued)

The Group's subsidiary established and operated in the PRC is subject to PRC Enterprise Income Tax at the rate of 25% (three months ended 30 June 2020: 25%). No PRC Enterprise Income Tax has been provided for the three months ended 30 June 2021 (three months ended 30 June 2020: Nil) as the Group's PRC subsidiary did not generate any assessable profits during the reporting periods.

The Group's subsidiary established and operated in Macau Special Administrative Region ("Macau") of the PRC is subject to Macau Complementary Tax, under which taxable income of up to Macau Pataca ("MOP") 600,000 (three months ended 30 June 2020: MOP600,000) is exempted from taxation with taxable income beyond this amount to be taxed at the rate of 12% (three months ended 30 June 2020: 12%) for the three months ended 30 June 2021.

6. LOSS FOR THE PERIOD

5. 所得稅開支(續)

本集團在中國成立及經營的附屬公司須按稅率25% (截至2020年6月30日止三個月:25%)繳納中國企 業所得稅。截至2021年6月30日止三個月內概無計 提中國企業所得稅(截至2020年6月30日止三個月: 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。

本集團在中國澳門特別行政區(「澳門」)成立及經營 的附屬公司須繳納澳門所得補充稅,截至2021年6 月30日止三個月,應課稅收入最高600,000澳門幣 (「 澳 門 幣 」)( 截 至2020年6月30日 止 三 個 月: 600,000澳門幣)豁免納稅,超出該金額的應課稅收 入按12%(截至2020年6月30日止三個月:12%)的 稅率納稅。

1. 期內虧損

		Three months ended 30 June
			截至6月30日止三個月
		2021	2020
		2021年	2020年
		HK\$'000	HK\$'000
		千港元	千港元
		(unaudited)	(unaudited)
		(未經審核)	(未經審核)
Depreciation	折舊
— Owned assets	— 自有資產	92	152
— Right of use assets	— 使用權資產	350	401
Staff costs (including directors' emoluments)	員工成本(包括董事酬金)
— Salaries, bonus and allowances and	— 薪金、花紅、津貼及
other benefits in kind	其他實物利益	5,537	5,334
— Commission	— 佣金	164	112
— Retirement benefits scheme contributions	— 退休福利計劃供款	315	191
		6,016	5,637
Cost of inventories sold	已售存貨成本	4,747	3,877
Foreign exchange (gain)/loss, net	匯兌(收益)╱虧損淨額	29	(76)
Auditor's remuneration	核數師酬金	128	129

1. DIVIDENDS No dividend was declared or paid during the three months ended 30 June 2021 (three months ended 30 June 2020: Nil).

7. 股息

本公司並無於截至2021年6月30日止三個月宣派或 派付股息(截至2020年6月30日止三個月:無)。

8. LOSS PER SHARE

(a) Basic loss per share

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

1. 每股虧損

(a) 每股基本虧損

每股基本及攤薄虧損乃基於以下數據計算:

		Three months ended 30 June 截至6月30日止三個月
		2021	2020
		2021年	2020年
		HK\$'000	HK\$'000
		千港元	千港元
		(unaudited)	(unaudited)
		(未經審核)	(未經審核)
Loss for the purpose of calculating basic	用以計算每股基本及攤薄虧損
and diluted loss per share	的虧損	(1,994)	(363)
		Three months ended 30 June
		截至6月30日止三個月
		2021 2021年	2020 2020年
Number of shares	股份數目
Weighted average number of ordinary shares for the purpose of calculating basic loss	用以計算每股基本虧損 的普通股加權平均數

No diluted loss per share is presented as the Company did not have any dilutive potential ordinary shares outstanding during the three months ended 30 June 2021 and 2020.

並無可呈列的每股攤薄虧損,乃因本公司於截 至2021年及2020年6月30日止三個月並無任 何流通在外的潛在可攤薄普通股。

BUSINESS REVIEW

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 three months ended 30 June 2021 was approximately HK\$13.4 million, representing an increase by approximately 28.9% from approximately HK\$10.4 million for the three months ended 30 June 2020. The increase in revenue was mainly attributable to the net effect of (i) increase in sales of biometrics identification devices and other accessories by approximately HK\$2.3 million (or 34.3%) as compared with the corresponding period in 2020; and (ii) increase in revenue derived from provision of auxiliary and other services by approximately HK\$0.7 million (or 18.7%) as compared with the corresponding period in 2020.

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

業務概覽 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2021年6月30日止三個月,本集團的 收益約為13.4百萬港元,較截至2020年6月30日止三個月 約10.4百萬港元增加約28.9%。收益增加主要由於(i)生物特 徵識別裝置及其他配件銷售較2020年同期增加約2.3百萬港 元(或34.3%);及(ii)來自提供配套及其他服務的收益較 2020年同期增加約0.7百萬港元(或18.7%)的淨影響。

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 30 June
		截至6月30日止三個月
		2021	2020
		2021年	2020年
		HK\$'000	HK\$'000
		千港元	千港元
		(unaudited)	(unaudited)
		(未經審核)	(未經審核)
Sales of biometrics identification devices,	銷售生物特徵識別裝置、保安產品及
security products and other accessories	其他配件	9,096	6,769
Provision of auxiliary and other services	提供配套及其他服務	4,336	3,652
		13,432	10,421

Cost of Sales and Services Rendered and Gross Profit

The majority of the Group's cost of sales and services rendered was costs of inventories sold. The Group's costs of inventories sold increased by approximately 20.5% to approximately HK\$4.7 million for the three months ended 30 June 2021 (three months ended 30 June 2020: approximately 3.9 million). The gross profit margin dropped from approximately 49.5% for the three months ended 30 June 2020 to approximately 42.0% for the three months ended 30 June 2021. The gross profit also raised from approximately HK\$5.2 million for the three months ended 30 June 2020 to approximately HK\$5.6 million for the three months ended 30 June 2021. The increase in gross profit was mainly due to (i) the increase in sales of biometrics identification devices and other accessories; and (ii) the increase in provision of auxiliary and other services.

Expenses

Staff costs for the three months ended 30 June 2021 were approximately HK\$6.0 million (three months ended 30 June 2020: approximately HK\$5.6 million), representing an increase of approximately HK\$0.4 million, which was mainly due to the salary increment during the period.

Administrative expenses for the three months ended 30 June 2021 were approximately HK\$6.3 million (three months ended 30 June 2020: approximately HK\$4.9 million), representing an increase by approximately HK\$1.4 million as compared with the last corresponding period, which was mainly due to the increase in staff costs and legal and professional expenses.

Loss for the Period

The Group incurred a net loss of approximately HK\$2.0 million for the three months ended 30 June 2021, as compared with a net loss of approximately HK\$0.4 million for the three months ended 30 June 2020. The increase in net loss was mainly due to (i) an increase in administrative expenses mainly from the increase in staff costs and legal and professional expenses; and (ii) the measures implemented by the governments of the PRC and Macau including locking down to control the rapid spread and reduce the scale of infection of novel coronavirus disease (COVID-19), which have affected the usual business activities of the areas and disrupted the daily operations of the Group.

The Board does not recommend the payment of dividends for the three months ended 30 June 2021.

銷售及已提供服務成本及毛利

本集團大部分銷售及已提供服務成本為已售存貨成本。截至 2021年6月30日止三個月,本集團的已售存貨成本增加約 20.5%至約4.7百萬港元(截至2020年6月30日止三個月: 約3.9百萬港元)。毛利率由截至2020年6月30日止三個月 約49.5%下跌至截至2021年6月30日止三個月約42.0%。 毛利亦由截至2020年6月30日止三個月約5.2百萬港元增 加至截至2021年6月30日止三個月約5.6百萬港元。毛利 增加主要由於(i)生物特徵識別裝置及其他配件銷售增加;及 (ii)提供配套及其他服務增加。

開支

截至2021年6月30日止三個月,員工成本約為6.0百萬港 元(截至2020年6月30日止三個月:約5.6百萬港元),增 加約0.4百萬港元,主要由於期內加薪所致。

截至2021年6月30日止三個月,行政開支約為6.3百萬港 元(截至2020年6月30日止三個月:約4.9百萬港元),較 去年同期增加約1.4百萬港元,主要由於員工成本以及法律 及專業費用增加所致。

期內虧損

截至2021年6月30日止三個月,本集團產生淨虧損約2.0 百萬港元,而截至2020年6月30日止三個月則產生淨虧損 約0.4百萬港元。淨虧損增加主要由於(i)行政開支增加,主 要由於員工成本以及法律及專業費用增加;及(ii)中國及澳 門 政 府 推 行 封 城 等 措 施, 以 控 制 新 型 冠 狀 病 毒 肺 炎 (COVID-19)迅速蔓延並降低感染規模,該等措施對有關地 區的日常業務活動構成影響,並擾亂了本集團的日常運作。

董事會不建議就截至2021年6月30日止三個月派付股息。

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 Listing on (i) launching affordable locally manufactured fingerprint identification devices as part of the expansion plan of the business in the Southern China; (ii) enhancing the quality of aftersales services and strengthening the operation support as part of the expansion plan of the business in the Southern China; (iii) improving its information technology system; and (iv) setting up a new and separate software development centre in the PRC to further enhance and develop the Group's software.

With the latest spread of COVID-19 in Hong Kong, the Group plans to diversify its business to maintain a healthy portfolio. Leveraging on the experience of the Directors, the Group considers 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。

由於香港近期COVID-19疫情,本集團計劃多元化其業務, 維持穩健的組合。憑藉各董事的經驗,本集團考慮設立包括 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 30 June 2021, 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 (Chapter 571 of the Laws of Hong Kong) (the "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 Rules Governing the Listing of Securities on GEM of the Stock Exchange ("GEM Listing Rules") were as follows:

董事及最高行政人員於本公司或任何相聯法團 的股份、相關股份及債權證的權益及淡倉

於2021年6月30日,本公司董事及主要行政人員於本公司 或其任何相聯法團(定義見證券及期貨條例(香港法例第571 章)(「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,或根據聯交所GEM證券上市規則(「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
--	----------------	--	--

Ordinary Shares of the Company

好倉 本公司普通股

		Number of Shares	Percentage of the Company's issued
Name	Capacity and nature of interest	(note 1) 股份數目	share capital 佔本公司已發行
姓名	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)	Interest of controlled corporation	206,000,000 (L)	25.75%
阮國偉先生(「阮先生」()附註2)	受控制法團權益
Ms. Yuen Mei Ling, Pauline ("Ms. Pauline Yuen") (note 2)	Interest of controlled corporation	206,000,000 (L)	25.75%
阮美玲女士(「阮女士」()附註2)	受控制法團權益
Notes:	附註:

1. The letter "L" denotes a long position in the interest of the shareholder (the "Shareholder") of the Company in the share capital of the Company.

2. Delighting View Global Limited ("Delighting View") directly holds 206,000,000 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 Shares held by Delighting View under the SFO.

Save as disclosed above, as at the date of this report, 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 and 5.67 of the GEM Listing Rules to be notified to the Company and the Stock Exchange.

1. 英文字母「L」表示本公司股東(「股東」)於本公司股本的好倉。

1. Delighting View Global Limited(「Delighting View」)直接持有 206,000,000股股份。由於Delighting View分別由阮先生及阮 女士實益擁有85%及15%,且阮先生及阮女士為一致行動人 士,故根據證券及期貨條例阮先生及阮女士各自被視為於 Delighting View所持有的所有股份中擁有權益。

除上文所披露外,於本報告日期,概無本公司董事及主要行 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)的任何股 份、相關股份或債權證中,擁有任何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或淡倉(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或淡倉,或根據GEM上市規則 第5.46及5.67條須知會本公司及聯交所的權益或淡倉。

SUBSTANTIAL SHAREHOLDERS' AND OTHER PERSONS' INTERESTS AND SHORT POSITIONS IN THE SHARES AND UNDERLYING SHARES OF THE COMPANY

As at 30 June 2021, 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 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2021年6月30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;或須記錄於本公司根據證券及期貨條例 第336條所存置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		Capacity and nature of interest		Number of Shares (note 1)	Percentage of the Company's issued share capital
	姓名╱名稱	身份及權益性質		股份數目 (附註1)	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		206,000,000 (L)	25.75%
	Kailong Asia Limited ("Kailong") (note 3) Kailong Asia Limited(「Kailong」()附註 3)	Beneficial owner 實益擁有人		190,000,000 (L)	23.75%
	Soleil Capital Limited ("Soleil") (note 3) Soleil Capital Limited(「Soleil」()附註3)	Interest of controlled corporation 受控制法團權益		190,000,000 (L)	23.75%
	Teo Kian Huat ("Mr. Teo") (note 3) 張建發(「張先生」()附註3)	Interest of controlled corporation 受控制法團權益		190,000,000 (L)	23.75%
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.	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 Shares held by Delighting View under the SFO.		2.	由於Delighting View分別由阮先生及阮女士實益擁有85%及 15%,且阮先生及阮女士為一致行動人士,故根據證券及期 貨條例阮先生及阮女士各自被視為於Delighting View所持有 的所有股份中擁有權益。
3.	As Kailong is beneficially owned entirely by Soleil, which is in turn ultimately owned entirely by Mr. Teo, each of Soleil and Mr. Teo is deemed to be interested in all Shares held by Kailong under the SFO.		3.	由於Kailong由Soleil全資實益擁有,而Soleil最終由張先生全 資擁有,因此根據證券及期貨條例,Soleil及張先生各自均被 視為於Kailong持有的所有股份中擁有權益。

Save as disclosed above, as at the date of this report, the Directors are not aware of any other person, other than the 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.

PURCHASE, SALE 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 three months ended 30 June 2021.

Competing Interests

The Directors confirm that as at 30 June 2021, 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 a code of conduct regarding securities transactions by Directors (the "Model Code") on terms no less exacting than the required standard of dealings (the "Required Standard of Dealings") as set out in Rules 5.48 to 5.67 of the GEM Listing Rules.

Upon specific enquiry made to all Directors, the Company was not aware of any non-compliance with the Model Code and the Required Standard of Dealings from the date of Listing up to the date of this report.

CORPORATE GOVERNANCE PRACTICES

The Group has committed to upholding high standards of corporate governance. The Board considers that enhanced public accountability and corporate governance are beneficial to the healthy growth of the Group, improving customer and supplier confidence and safeguarding the interests of Shareholders.

The Company has adopted and complied with the Corporate Governance Code (the "CG Code") contained in Appendix 15 to the GEM Listing Rules as its own code and has complied with the CG Code from the date of Listing up to the date of this report, except for the following deviation.

除上文披露者外,於本報告日期,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;或須記錄於本 公司根據證券及期貨條例第336條所存置登記冊的權益或淡 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

本公司或任何附屬公司截至2021年6月30日止三個月內, 概無購買、銷售或贖回任何本公司上市證券。

競爭權益

董事確認,於2021年6月30日,概無董事、本公司控股股 東及彼等各自的聯繫人士(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規定準則

本公司就董事進行證券交易採納條款不遜於GEM上市規則 第5.48至5.67條所載交易規定準則(「交易規定準則」)之操 守守則(「標準守則」)。

經向全體董事進行具體查詢後,本公司並不知悉由上市日期 至本報告日期違反標準守則及交易規定準則。

企業管治常規

本集團致力維持高水準企業管治。董事會認為增加公眾問責 性及企業管治有利於本集團穩健增長、提高顧客及供應商的 信心,以及保障股東的利益。

本公司已採納及遵守GEM上市規則附錄15所載之企業管治 守則(「企業管治守則」)作為其自身之守則,並自上市日期 直至本報告日期為止遵守企業管治守則,惟下列偏離事項除 外。

Chairman and Chief Executive Officer

CG Code provision A.2.1 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 that 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 CG Code provision A.2.1 is appropriate in such circumstance.

The Board has continued to monitor and review the corporate governance principles and practices to ensure compliance.

AUDIT COMMITTEE

The Company has established an audit committee (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. Poon Wai Hung Richard.

The unaudited condensed consolidated financial statements of the Company for the three months ended 30 June 2021 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

Hong Kong, 10 August 2021

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

主席及行政總裁

企業管治守則條文第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。阮先生為本公司主席兼行 政總裁。鑒於阮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條文 第A.2.1條實屬恰當。

董事會已持續監察及審閱企業管治原則及常規以確保合規。

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 則條文第C.3.3及C.3.7條成立審核委員會(「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)、許文浩先生及潘偉雄先生。

本公司截至2021年6月30日止三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

香港,2021年8月10日

於本報告日期,執行董事為阮國偉先生、阮美玲女士、孫毅 珠女士及梅栢權先生;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、鍾定縉先生及潘偉雄先生。