Item 1. Legal Proceedings
ITEM
1. LEGAL PROCEEDINGS.
As
at September 30, 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 23, 2023, the Court granted leave for this action be set down for trial of 13 days, and the trial will commence on November
25, 2024. 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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