Item 1. Legal Proceedings
ITEM 1. LEGAL PROCEEDINGS.
As at March 31, 2023, the Company involved with
various legal proceedings:-
Action Case: HCA702/2018 On March 27,
2018, the writ of summons was issued against the Company and seven related companies of the former shareholder by the Plaintiff. This
action alleged the infringement of certain registered trademarks currently registered under the Plaintiff. On February 28, 2023, the
Court granted leave for this action be set down for trial of 13 days, which the period has yet to be fixed. Legal counsel of the Company
will continue to handle in this matter. At this stage in the proceedings, it is unable to determine the probability of the outcome of
the matter or the range of reasonably possible loss, if any.
Action Case: HCA765/2019 On April 30,
2019, the writ of summons was issued against the Company’s subsidiary, three related companies and the former directors, shareholders
and financial consultant by the Plaintiff. This action alleged the deceit and misrepresentation from an inducement of the fund subscription
and claimed for compensatory damage of approximately $2 million (equal to HK$17.1million). The case is on-going and parties have yet
to attempt mediation. Legal counsel of the Company will continue to handle in this matter. At this stage in the proceedings, it is unable
to determine the probability of the outcome of the matter or the range of reasonably possible loss, if any.
Action Case : HCA2097 and 2098/2020
On December 15, 2020, the writs of summons were issued against the Company and the former consultant by the Plaintiff. This action
alleged the misrepresentation and conspiracy causing the loss from the investment in corporate bond and claimed for compensatory damage
of approximately $1.67 million (equal to HK$13 million). The Company previously made $0.84 million as contingency loss for the year ended
December 31, 2021. Parties participated in a mediation held on March 25, 2022 and negotiated for settlement through without prejudice
correspondence, no settlement was reached. The case is on-going and legal counsel of the Company will continue to handle this matter.
At this stage in the proceedings, it is unable to determine the probability of the outcome of the matter or any further potential loss,
if any.
ITEM 1A. RISK FACTORS.
As smaller reporting company we are not required
to make disclosures under this Item.
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