Financial Performance - The group's revenue for the year ended December 31, 2024, was HKD 3,841,472,000, representing an increase of 11.3% compared to HKD 3,450,954,000 in 2023[4] - Gross profit for the year was HKD 807,854,000, up 15.3% from HKD 700,717,000 in the previous year[4] - The company reported a net loss of HKD 83,853,000 for the year, compared to a loss of HKD 1,765,000 in 2023[5] - The earnings per share for the year were a loss of HKD 0.13, compared to a loss of HKD 1.73 in 2023[5] - The group reported a pre-tax loss of HKD 53,307,000 for 2024, compared to a profit of HKD 4,047,000 in 2023, indicating a substantial decline in profitability[21] - The loss attributable to shareholders was HKD 53,307,000, a substantial change from the profit of HKD 4,047,000 in 2023[34] Expenses and Costs - Research and development expenses increased to HKD 189,661,000, a rise of 16.8% from HKD 162,388,000 in 2023[4] - The company incurred finance costs of HKD 53,409,000, down from HKD 60,818,000 in the previous year, indicating a decrease of 12.3%[4] - Total comprehensive expenses for the year amounted to HKD 354,671,000, compared to HKD 252,003,000 in 2023, reflecting an increase of 40.7%[6] - The company's administrative expenses were HKD 401,471,000, slightly up from HKD 394,991,000 in the previous year, reflecting a 1.4% increase[4] - The group’s employee costs, including director remuneration, amounted to HKD 839,757,000 in 2024, compared to HKD 818,854,000 in 2023, indicating a slight increase in labor expenses[17] Assets and Liabilities - Total assets decreased from HKD 13,155,636 thousand in 2023 to HKD 12,632,132 thousand in 2024, a decline of approximately 4.0%[7] - Total liabilities increased from HKD 1,427,648 thousand in 2023 to HKD 1,649,182 thousand in 2024, representing a rise of about 15.5%[8] - The company's equity attributable to shareholders decreased from HKD 7,411,477 thousand in 2023 to HKD 7,154,386 thousand in 2024, a decrease of approximately 3.5%[8] - Cash and cash equivalents decreased from HKD 1,509,144 thousand in 2023 to HKD 1,154,546 thousand in 2024, a decline of about 23.5%[7] - The total liabilities as of December 31, 2024, were HKD 5,165,025,000, reflecting a 1.03% increase from HKD 5,112,324,000 in 2023[52] Revenue Segmentation - The technology segment generated revenue of HKD 3,673,852 thousand, with significant contributions from injection molding products (HKD 1,685,836 thousand) and LCD displays (HKD 651,193 thousand)[12] - The aerospace services segment reported revenue of HKD 218,894 thousand, which includes property investments in the Shenzhen Aerospace Technology Plaza[12] - The intelligent charging segment reported a revenue of HKD 286,389 thousand, showing a strong market demand despite a slight loss of HKD 178 thousand[12] - The intelligent power module segment generated revenue of HKD 17,424 thousand, but faced a significant loss of HKD 30,912 thousand, indicating potential issues in cost management[12] - The company's revenue for 2024 increased by 11.32% compared to 2023, reaching HKD 3,841,472,000[26] Market and Strategic Initiatives - The company plans to continue expanding its market presence and investing in new technologies to enhance future growth prospects[12] - The company is focusing on business transformation and exploring new economic growth points to enhance core competitiveness and sustainable development[32] - The company is actively investing in product development and technology research to improve product quality and future profitability[40] - The company is actively expanding its market presence and optimizing its rental strategy to enhance brand influence despite challenges in the Shenzhen office market[29] - New capability construction projects, including the integrated circuit packaging plant, are progressing well, with the construction completed by May 2024[30] Legal and Compliance - The company has resolved legal disputes related to minority interests in subsidiaries, resulting in a reversal of previously accrued provisions, which is expected to have no impact in 2024[16] - The company is actively pursuing litigation to protect its rights, with expected payments from litigation amounting to approximately RMB 22,000,000 and RMB 11,000,000 from various parties[45][46] - The company has submitted its annual consolidated financial statements for the year ending December 31, 2023, and will submit the statements for the year ending December 31, 2024, before the deadline set by the Hong Kong Companies Registry[66] Dividend Policy - The company decided not to declare a final dividend for the year ending December 31, 2024, following no dividend declared for 2023[26] - The board of directors decided not to recommend a final dividend for the year ended December 31, 2024, maintaining the same stance as the previous year[65] Auditor and Governance - The company’s auditor has issued an unqualified opinion on the financial statements for the years ending December 31, 2023, and December 31, 2024[66] - The company has expressed gratitude to its employees for their hard work and loyalty, as well as to shareholders, banks, business partners, and the community for their support[73] - The company has announced changes in its board of directors, with new appointments following the resignations of several members due to personal and retirement reasons[72]

[Chairman's Report](index=4&type=section&id=Chairman%27s%20Report) [Performance Summary](index=4&type=section&id=Performance%20Summary) In the first half of 2024, the company's operating revenue increased by 5.26% year-on-year, but due to factors like fair value changes of investment properties, the company turned from profit to loss, with loss attributable to shareholders of **HKD 28.58 million**; the Board decided not to declare an interim dividend to meet future capital needs 2024 First Half Key Performance Indicators | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (HKD billion) | 1.825 | 1.734 | +5.26% | | Net (Loss)/Profit (HKD million) | (59.09) | 55.07 | Turned from profit to loss | | (Loss)/Profit Attributable to Shareholders (HKD million) | (28.58) | 45.51 | Turned from profit to loss | | Basic (Loss)/Earnings Per Share (HKD cents) | (0.93) | 1.48 | Turned from profit to loss | | Interim Dividend | None | None | Unchanged | [Business Review and Project Progress](index=4&type=section&id=Business%20Review%20and%20Project%20Progress) Despite a decline in overseas markets, the company's technology industrial business significantly increased operating profit by expanding domestic and international markets, while property leasing maintained occupancy and pursued rent arrears litigation, with new capacity projects like Nantong Kangyuan, IPM, and Huizhou Industrial Park progressing orderly - The technology industrial business achieved a significant increase in operating profit by stabilizing existing customers and expanding into new markets[8](index=8&type=chunk) - Shenzhen Aerospace Hi-Tech Investment Management Co., Ltd. maintained a certain occupancy rate despite increased office supply challenges and actively pursued rent arrears through legal channels[8](index=8&type=chunk) - Three major new capacity construction projects are progressing orderly: civil works for Nantong Kangyuan Integrated Circuit Packaging Substrate Plant were completed by end of May 2024; Intelligent Power Module (IPM) continues product and technology R&D; Huizhou Industrial Park Phase V plant has been completed and put into operation[8](index=8&type=chunk) [Outlook](index=6&type=section&id=Outlook) For the second half of 2024, the company anticipates challenges from rising protectionism due to trade wars and regional conflicts, and supply chain regional shifts, with the Board closely monitoring impacts on core businesses to drive high-quality development - In the second half of 2024, major economies are expected to lean towards protectionism, and supply chains and production lines will continue to shift regionally, posing challenges for enterprises[9](index=9&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) [Performance Overview](index=7&type=section&id=Performance%20Overview) In the first half of 2024, the company's operating revenue increased by 5.26% to **HKD 1.825 billion**; however, a **HKD 200 million** loss from fair value changes of investment properties resulted in a net loss of **HKD 59.09 million**, turning from a net profit in the prior year - The company's turn from profit to loss was primarily due to a **HKD 200.457 million** loss from fair value changes of investment properties due to revaluation decreases[13](index=13&type=chunk) 2024 First Half Performance Overview | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Operating Revenue (HKD thousand) | 1,824,756 | 1,733,548 | | Net (Loss)/Profit (HKD thousand) | (59,093) | 55,065 | | (Loss)/Profit Attributable to Shareholders (HKD thousand) | (28,578) | 45,506 | | Basic (Loss)/Earnings Per Share (HKD cents) | (0.93) | 1.48 | [Performance of Major Businesses](index=8&type=section&id=Performance%20of%20Major%20Businesses) The company's main businesses are technology industrial and property operations; technology industrial, as the revenue cornerstone, saw growth in both revenue and profit in the first half, with injection molding and PCB businesses doubling profits, while Shenzhen Aerospace Science and Technology Plaza property operations turned from profit to loss due to significant fair value losses on investment properties [Technology Industrial](index=9&type=section&id=Technology%20Industrial) The technology industrial business's operating revenue increased by 5.77% year-on-year to **HKD 1.725 billion** in the first half, with segment profit significantly up 64.88% to **HKD 59.69 million**, driven by strong performance in injection molding and PCB businesses, which saw operating profits increase by 178.27% and 331.39% respectively, while LCD business revenue and profit sharply declined due to weak market demand Technology Industrial Segment Performance (H1 2024) | Business Segment | Operating Revenue (HKD thousand) | YoY Change (%) | Operating Profit/(Loss) (HKD thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Injection Molding Products | 794,838 | +20.10% | 36,832 | +178.27% | | Printed Circuit Boards (PCBs) | 456,418 | +8.27% | 19,335 | +331.39% | | Smart Chargers | 137,580 | +20.63% | (1,872) | Loss narrowed | | Liquid Crystal Displays (LCDs) | 323,594 | -24.00% | 29,015 | -34.12% | | Intelligent Power Modules (IPM) | 7,764 | +134.14% | (13,676) | Loss narrowed | | **Total** | **1,725,355** | **+5.77%** | **59,688** | **+64.88%** | - The injection molding products business achieved a significant increase in profit by expanding domestic and international markets and a substantial turnaround by Vietnam Zhiyuan[17](index=17&type=chunk) - Civil works for Nantong Kangyuan Phase I plant have been completed, with trial production expected to commence by year-end, and further financing needs are being studied[18](index=18&type=chunk) [Shenzhen Aerospace Science and Technology Plaza](index=12&type=section&id=Shenzhen%20Aerospace%20Science%20and%20Technology%20Plaza) In the first half, Shenzhen Aerospace Science and Technology Plaza recorded operating revenue of **HKD 95.59 million**, a slight year-on-year decrease, and was severely impacted by a **HKD 185 million** loss from fair value changes of investment properties, leading to a segment loss of **HKD 127 million** from a profit in the prior year, with office occupancy improving but commercial occupancy declining at period-end Shenzhen Aerospace Science and Technology Plaza Performance and Operational Data | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Operating Revenue (HKD million) | 95.59 | 99.26 | | Segment (Loss)/Profit (HKD million) | (127) | 48.80 | | Loss from Fair Value Change of Investment Properties (HKD million) | 185 | - | | **Occupancy Rate (Period-End)** | **June 30, 2024** | **December 31, 2023** | | Commercial Portion | 66.45% | 72.90% | | Office Portion | 50.87% | 41.00% | - Various lawsuits with major tenants Aerospace Houhai and Huabaorun have successively received first-instance judgments; the company has appealed parts not supported and will actively protect its rights and interests[19](index=19&type=chunk) [Other Businesses](index=13&type=section&id=Other%20Businesses) The company's associate, Shenzhen Ruihuatai Film Technology Co., Ltd., in which it holds a 23.38% stake, did not declare dividends during the reporting period, whereas in the prior year, the company received approximately **RMB 2.95 million** in dividends - Associate company Ruihuatai did not declare dividends during the period, compared to dividend income in the prior year[21](index=21&type=chunk) [Financial Position Analysis](index=13&type=section&id=Financial%20Position%20Analysis) As of June 30, 2024, the company's total assets and total liabilities both slightly decreased from end of 2023, with the gearing ratio remaining largely stable; asset decrease was mainly due to lower investment property valuations and exchange rate effects, while liability decrease was primarily due to repayment of some related party loans, and finance costs decreased by nearly 20% year-on-year [Asset Position](index=13&type=section&id=Asset%20Position) As of June 30, 2024, the company's total assets were **HKD 14.193 billion**, a 2.68% decrease from the beginning of the year, primarily due to the decline in investment property valuations and reduced translation due to RMB exchange rate changes; shareholders' equity was **HKD 7.230 billion**, and net asset value per share was **HKD 2.34** Changes in Asset Position | Asset Item (HKD thousand) | June 30, 2024 | December 31, 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 11,058,616 | 11,319,869 | -2.31% | | Current Assets | 3,134,498 | 3,263,415 | -3.95% | | **Total Assets** | **14,193,114** | **14,583,284** | **-2.68%** | - Net asset value per share attributable to shareholders was **HKD 2.34**[22](index=22&type=chunk) [Debt Position](index=14&type=section&id=Debt%20Position) As of June 30, 2024, the company's total liabilities were **HKD 4.981 billion**, a 2.58% decrease from the beginning of the year; non-current liabilities decreased due to repayment of some related party loans and exchange rate effects, while current liabilities increased due to higher trade payables Changes in Debt Position | Liability Item (HKD thousand) | June 30, 2024 | December 31, 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Liabilities | 3,501,222 | 3,684,676 | -4.98% | | Current Liabilities | 1,479,347 | 1,427,648 | +3.62% | | **Total Liabilities** | **4,980,569** | **5,112,324** | **-2.58%** | [Operating Expenses](index=14&type=section&id=Operating%20Expenses) In the first half of 2024, the company's administrative expenses were largely flat year-on-year at **HKD 198 million**; finance costs were **HKD 26.51 million**, a 19.57% year-on-year decrease - Administrative expenses were approximately **HKD 198 million**, similar to the prior year[25](index=25&type=chunk) - Finance costs were **HKD 26.51 million**, a **19.57%** year-on-year decrease[25](index=25&type=chunk) [Financial Ratios and Risk Management](index=15&type=section&id=Financial%20Ratios%20and%20Risk%20Management) The company's gearing ratio remained stable at around 35%, but current and quick ratios decreased; the company faces litigation with former major tenant Aerospace Houhai, with related claims classified as contingent liabilities and no provision made; the company currently does not use derivative instruments to hedge financial risks [Financial Ratios](index=15&type=section&id=Financial%20Ratios) As of June 30, 2024, the company's gearing ratio was 35.09%, largely stable compared to the beginning of the year; gross profit margin slightly increased to 20.18%; current and quick ratios decreased to 2.12 and 1.76 respectively Key Financial Ratios | Ratio | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Gearing Ratio | 35.09% | 35.06% | | Current Ratio | 2.12 | 2.29 | | Quick Ratio | 1.76 | 1.95 | | **Ratio** | **H1 2024** | **H1 2023** | | Gross Profit Margin | 20.18% | 20.13% | [Contingent Liabilities](index=15&type=section&id=Contingent%20Liabilities) The company faces claims of approximately **RMB 119 million** from former tenant Aerospace Houhai due to litigation (Aerospace Houhai Litigation II); despite losing at first instance, the company has appealed, and based on lawyer assessment, believes it has a high probability of winning and can net off with other successful cases, thus disclosing it as a contingent liability without provision - Aerospace Hi-Tech is facing claims of approximately **RMB 119 million** from its former tenant Aerospace Houhai, and has appealed after losing at first instance[26](index=26&type=chunk) - Based on lawyer assessment, the company believes there is a high probability of winning the appeal, and the claims can be netted off with other successful judgments, thus no provision has been made, and it is disclosed as a contingent liability[26](index=26&type=chunk) [Human Resources](index=16&type=section&id=Human%20Resources) As of June 30, 2024, the company and its subsidiaries had approximately **7,100 employees** across mainland China, Hong Kong, and Vietnam; the company's remuneration policy is based on employee qualifications, experience, performance, and market benchmarks, implementing a performance-centric appraisal system - As of June 30, 2024, the Group had approximately **7,100 employees** in total, distributed across mainland China, Hong Kong, and Vietnam[31](index=31&type=chunk) [Other Disclosures](index=18&type=section&id=Other%20Disclosures) [Major Shareholders](index=18&type=section&id=Major%20Shareholders) As of June 30, 2024, China Aerospace Science and Technology Corporation, through its wholly-owned subsidiary Burhill Company Limited, held **38.37%** of the company's issued share capital, making it the company's major controlling shareholder Major Shareholder Holdings | Shareholder Name | Capacity | Number of Shares Held | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | China Aerospace Science and Technology Corporation | Interests in controlled corporations | 1,183,598,636 | 38.37% | | Burhill Company Limited | Beneficial owner | 1,183,598,636 | 38.37% | [Corporate Governance and Litigation](index=19&type=section&id=Corporate%20Governance%20and%20Litigation) During the reporting period, the company complied with the Corporate Governance Code; apart from the disclosed leasing litigation related to Aerospace Hi-Tech, the company had no other significant litigation, arbitration, or claims - The company has complied with the code provisions of Appendix C1 of the Listing Rules, the Corporate Governance Code, during the reporting period[37](index=37&type=chunk) - Apart from the publicly disclosed litigation between Aerospace Hi-Tech and its tenants, the company has no other significant litigation or arbitration[38](index=38&type=chunk) [Condensed Consolidated Financial Statements](index=22&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss](index=24&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) In the first half of 2024, the company recorded revenue of **HKD 1.825 billion**, a 5.3% year-on-year increase; however, a **HKD 200 million** loss from fair value changes of investment properties led to a pre-tax loss of **HKD 127 million**, resulting in a net loss of **HKD 59.09 million** for the period, with loss attributable to shareholders of **HKD 28.58 million** Condensed Consolidated Statement of Profit or Loss Summary | Item | H1 2024 (Unaudited, HKD thousand) | H1 2023 (Unaudited, HKD thousand) | | :--- | :--- | :--- | | Revenue | 1,824,756 | 1,733,548 | | Gross Profit | 368,238 | 349,016 | | Fair Value Change of Investment Properties | (200,457) | - | | (Loss)/Profit Before Tax | (127,228) | 57,254 | | (Loss)/Profit for the Period | (59,093) | 55,065 | | (Loss) Attributable to Company Shareholders | (28,578) | 45,506 | [Condensed Consolidated Statement of Financial Position](index=26&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the company's total assets were **HKD 14.193 billion**, and total liabilities were **HKD 4.981 billion**; shareholders' equity was **HKD 7.230 billion**, a 2.45% decrease from the beginning of the year, mainly due to a reduction in exchange fluctuation reserve caused by the depreciation of RMB during the period Condensed Consolidated Statement of Financial Position Summary | Item | June 30, 2024 (Unaudited, HKD thousand) | December 31, 2023 (Audited, HKD thousand) | | :--- | :--- | :--- | | Non-current Assets | 11,058,616 | 11,319,869 | | Current Assets | 3,134,498 | 3,263,415 | | **Total Assets** | **14,193,114** | **14,583,284** | | Current Liabilities | 1,479,347 | 1,427,648 | | Non-current Liabilities | 3,501,222 | 3,684,676 | | **Total Liabilities** | **4,980,569** | **5,112,324** | | **Equity Attributable to Company Shareholders** | **7,229,548** | **7,411,477** | [Condensed Consolidated Statement of Cash Flows](index=30&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In the first half of 2024, the company generated **HKD 138 million** net cash from operating activities; net cash outflow from investing activities was **HKD 468 million**, primarily for property, plant, and equipment acquisition; net cash outflow from financing activities was **HKD 54.57 million**; cash and cash equivalents decreased to **HKD 1.115 billion** at period-end Condensed Consolidated Statement of Cash Flows Summary | Item | H1 2024 (Unaudited, HKD thousand) | H1 2023 (Unaudited, HKD thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 138,011 | 150,961 | | Net Cash Used in Investing Activities | (468,015) | (207,782) | | Net Cash Used in Financing Activities | (54,570) | (54,768) | | Net Decrease in Cash and Cash Equivalents | (384,574) | (111,589) | | Cash and Cash Equivalents at Period-End | 1,115,049 | 1,491,421 | [Summary of Notes to Financial Statements](index=32&type=section&id=Summary%20of%20Notes%20to%20Financial%20Statements) The notes to the financial statements detail accounting policies and data, highlighting that technology industrial business dominates segment revenue, a **HKD 200 million** fair value decrease in investment properties caused the loss, ongoing litigation with former tenants led to significant impairment provisions for lease receivables but contingent liability classification for counterclaims due to high probability of success, and significant related party loan transactions with major shareholder China Aerospace and its subsidiaries - Segment information shows that the technology industrial business contributed the vast majority of external sales revenue (**HKD 1.725 billion**), while aerospace services (Science and Technology Plaza) contributed **HKD 95.59 million**[63](index=63&type=chunk) - A **HKD 200.457 million** decrease in the fair value of investment properties, recognized directly in the statement of profit or loss, was a key factor contributing to the loss for the period[90](index=90&type=chunk) - As of June 30, 2024, total lease receivables were **HKD 298 million**, with a credit loss provision of **HKD 272 million**, primarily related to litigation with Aerospace Houhai and Huabaorun[92](index=92&type=chunk)[96](index=96&type=chunk) - The company has significant loans with related parties (major shareholder China Aerospace and its subsidiary Aerospace Finance), including a **HKD 107 million** long-term loan and a **HKD 1.092 billion** drawn financing facility[109](index=109&type=chunk)

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 1,824,756,000, an increase of 5.3% compared to HKD 1,733,548,000 for the same period in 2023[1] - The gross profit for the same period was HKD 368,238,000, representing a gross margin of approximately 20.2%[1] - The company incurred a loss before tax of HKD 59,093,000, compared to a profit before tax of HKD 55,065,000 in the previous year[2] - The basic and diluted loss per share was HKD 0.93 cents, a decrease from HKD 1.48 cents earnings per share in the prior year[2] - The company reported a net loss attributable to shareholders of HKD 28,578,000 for the six months ended June 30, 2024[16] - The company reported a pre-tax loss of HKD 127,228 thousand for the period, indicating challenges in operational performance[9] - The net loss for the period was HKD 59,093,000, a shift from a net profit of HKD 55,065,000 in the same period of 2023[20] - The loss attributable to shareholders was HKD 28,578,000, compared to a profit of HKD 45,506,000 in the same period of 2023[20] Assets and Liabilities - Non-current assets increased to HKD 11,058,616,000 as of June 30, 2024, compared to HKD 11,319,869,000 at the end of 2023[4] - Current assets rose to HKD 3,134,498,000, up from HKD 3,263,415,000 at the end of 2023[4] - Total assets decreased to HKD 12,713,767,000 from HKD 13,155,636,000 at the end of 2023[4] - The company’s liabilities increased to HKD 1,479,347,000, compared to HKD 1,427,648,000 at the end of 2023[4] - As of June 30, 2024, the company's total non-current liabilities decreased to HKD 3,501,222 thousand from HKD 3,684,676 thousand as of December 31, 2023, representing a reduction of approximately 4.95%[5] - The company's total equity attributable to shareholders decreased to HKD 7,229,548 thousand as of June 30, 2024, down from HKD 7,411,477 thousand as of December 31, 2023, reflecting a decline of about 2.45%[5] - The bank loans increased to HKD 122,449 thousand as of June 30, 2024, compared to HKD 101,612 thousand as of December 31, 2023, marking an increase of approximately 20.4%[5] - The deferred tax liabilities decreased to HKD 2,098,281 thousand from HKD 2,223,096 thousand, a reduction of about 5.62%[5] Revenue Segments - Revenue from the technology industry segment reached HKD 1,754,362 thousand for the six months ended June 30, 2024, with a segment profit of HKD 59,688 thousand[9] - The sales of injection molded products generated HKD 810,527 thousand in total revenue, contributing HKD 36,832 thousand to segment performance[9] - The sales revenue from the smart charging devices segment was HKD 115,354,000, showing a loss of HKD 7,645,000[10] - The revenue from the liquid crystal display segment was HKD 425,772,000, with a segment profit of HKD 44,043,000[10] - The total segment sales for the aerospace services segment amounted to HKD 99,630,000, with a segment profit of HKD 48,800,000[10] - The company's technology segment generated revenue of HKD 1,725,355,000, an increase of 5.77% compared to HKD 1,631,275,000 in the same period of 2023[27] - The operating profit for the technology segment was HKD 59,688,000, reflecting a significant increase of 64.88% from HKD 36,201,000 in the previous year[27] - The injection molding products segment saw a revenue increase of 20.10% to HKD 794,838,000, with operating profit rising 178.27% to HKD 36,832,000[27] - The PCB segment recorded a revenue increase of 8.27% to HKD 456,418,000, with operating profit soaring 331.39% to HKD 19,335,000[27] Dividends and Shareholder Returns - The company did not propose a final dividend for the year ending December 31, 2023, and no interim dividend for 2024[17] - The company decided not to declare an interim dividend for 2024, compared to no dividend declared in the interim of 2023[20] - The company will not declare an interim dividend for 2024 and does not recommend a final dividend for 2023[25] Strategic Focus and Initiatives - The company is focusing on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[1] - The company is focusing on expanding its operations in the aerospace services sector, particularly in Shenzhen Aerospace Technology Park[9] - The company is exploring new strategies for market expansion and product development in the technology sector[9] - The company is actively exploring new business opportunities to create value for shareholders[26] - The company is investing in the development of new technologies, including 5G millimeter wave filter chips, to enhance manufacturing capabilities[29] - The company plans to enhance production automation and optimize product quality while managing risks and expanding customer base in the second half of 2024[30] - The company aims to maintain production scale and capacity while focusing on energy conservation and emissions reduction[30] - The company is focusing on enhancing internal management efficiency and promoting information management and energy-saving measures[22] - The company plans to continue expanding both domestic and international markets to respond to intense industry competition[21] Management and Governance - Mr. Wang Xiaojun resigned as an independent non-executive director on March 26, 2024, to focus on personal business, with Ms. Xue Lan succeeding him[50] - Mr. Zhou Limin resigned as chairman and executive director on July 23, 2024, due to retirement from the company[50] - The board expressed gratitude to all employees for their hard work and loyalty, as well as to shareholders, banks, business partners, and the community for their support[50] Audit and Compliance - The company received an unqualified audit opinion on its financial statements, indicating no significant issues were raised by the auditors[49] - The mid-term report will be published on the company's website and the Hong Kong Stock Exchange's disclosure platform at an appropriate time[49] Employee and Operational Metrics - The company employs approximately 7,100 staff across mainland China, Hong Kong, and Vietnam as of June 30, 2024[42] - Administrative expenses for the first half of 2024 were HKD 198,333,000, approximately the same as in the same period of 2023[36] - Financial expenses decreased by 19.57% to HKD 26,512,000 in the first half of 2024 compared to the same period in 2023[36] Market Conditions and Risks - The board is closely monitoring the impact of trade wars and regional conflicts on core business development[23] - The company has no significant contingent liabilities apart from the ongoing litigation with Hangke Houhai[37] - The company has not engaged in any significant litigation or arbitration apart from the disclosed cases[45]

審核委員會 於2023年，審核委員會由獨立非執行董事羅振邦先生（主席）、陳靜茹女士，以及非執行董事彭建國先生（於2023 年3月2日獲委任）及毛以金先生（於2023年3月2日辭任）組成。審核委員會的主要職責為充當董事及外聘核數師之 間的溝通橋樑、審閱公司的財務資料，以及監察公司的財務申報制度、風險管理及內部監控程序。 審核委員會於2023年內召開了兩次會議，以評核和檢視公司的內部監控、風險管理、半年度和全年業績、以及企 業管治事宜，包括每年審視《舉報政策》的有效性等。核數師、總會計師、財務部高級總監、審計與風險管理部總 經理和公司秘書均有出席該等會議，而財務部副總經理出席當中一次會議。 審核委員會亦已審閱、討論及通過本公司截止2023年12月31日的年度財務報表。 審核委員會成員於2023年期間出席會議的情況如下： | --- | --- | --- | |--------|--------------|----------| | | 有權出席次數 | 出席次數 | | | | | | 羅振邦 | 2 | 2 | | 陳靜茹 | 2 | 2 | | 彭建國 | 2 | 2 | | 毛以金 | 0 | 0 | ...

Financial Performance - The company's revenue and profit both recorded a double-digit decline due to geopolitical tensions, persistent inflation, and multiple interest rate hikes, leading to a challenging overall performance in 2023 [2]. - The company's revenue for the fiscal year ending December 31, 2023, was HKD 3,450,954,000, a decrease of 23.3% from HKD 4,501,532,000 in 2022 [45]. - Gross profit for 2023 was HKD 700,717,000, down from HKD 989,106,000 in the previous year, reflecting a decline of 29.1% [45]. - The net loss for the year was HKD 1,765,000, significantly improved from a loss of HKD 252,722,000 in 2022 [47]. - Basic and diluted earnings per share for 2023 were HKD 0.13 cents, compared to a loss of HKD 3.89 cents per share in 2022 [47]. - The total comprehensive loss for the year was HKD 252,003,000, compared to HKD 962,109,000 in 2022, indicating a significant reduction in losses [52]. - The overall business revenue decreased by 30.65% compared to last year, with a significant drop in profit margin exceeding 83% [104]. - The company reported a basic earnings per share of HKD 0.13, compared to a basic loss per share of HKD 3.89 in 2022 [131]. Dividends - The company decided not to recommend a final dividend for the year ending 2023, compared to a dividend of HKD 0.02 per share in 2022 [18]. - The company decided not to recommend a final dividend for the year ending December 31, 2023, compared to a dividend of HKD 0.02 for the year ending 2022 [23]. - The company will not declare an interim dividend for 2023, compared to an interim dividend of HKD 0.5 per share in 2022 [132]. Assets and Liabilities - The company's equity attributable to shareholders decreased by 3.23% to HKD 7,411,477,000 compared to HKD 7,658,694,000 at the end of 2022 [7]. - Non-current liabilities increased significantly due to new loans from major shareholders and banks, while current liabilities decreased due to repayments [8]. - The company's liquidity position as of December 31, 2023, included cash and short-term bank deposits of HKD 1,713,152,000 [160]. - The company's bank and other borrowings amounted to HKD 1,388,558,000 [109]. - The total trade and other receivables amounted to HKD 899,827,000, net of credit loss provisions of HKD 57,374,000, compared to HKD 946,632,000 and HKD 54,684,000 in 2022 [123]. Operational Performance - The rental rates for Shenzhen Aerospace Technology Plaza improved significantly, with commercial space at 72.90% and office space at 41.00% as of December 31, 2023, compared to 39.40% and 32.70% respectively in 2022 [19]. - The company has made significant investments in technology innovation and R&D, achieving breakthroughs in various fields, including 3D touch technology and 5G millimeter-wave filter development [17]. - The company is actively managing risks and expanding its customer base to navigate the ongoing economic challenges [4]. - The company plans to enhance production automation, optimize product quality, and reduce costs to improve profitability in the challenging operating environment of 2024 [4]. - The company is actively optimizing its business and product structure to respond to market demands and trends amid intense industry competition [126]. Research and Development - The company is actively involved in R&D for high-tech products, including the development of 5G millimeter wave filter chips [167]. - The company continues to assist industrial enterprises in upgrading manufacturing capabilities and smart factory transformations [167]. - Research and development expenses increased to HKD 162,388,000 from HKD 155,523,000, reflecting a growth of 4.4% [45]. Employee and Governance - As of December 31, 2023, the company and its subsidiaries had approximately 7,200 employees distributed across Mainland China, Hong Kong, and Vietnam [32]. - The company has maintained compliance with the Corporate Governance Code throughout 2023 [34]. - The Audit Committee consists of independent non-executive directors and is responsible for reviewing the company's financial information and monitoring internal controls [38]. - The company has established an Environmental, Social, and Governance Committee to formulate relevant policies and report matters [22]. Market and Segment Performance - The company's revenue from the technology sector for the year ending December 31, 2023, was HKD 3,234,653,000, a decrease of 22.63% compared to the previous year [103]. - Operating profit from the technology sector was HKD 57,773,000, a significant decrease of 72.81% year-on-year [103]. - Total external sales for the technology industry injection products reached HKD 1,412,413, with a segment performance of HKD 37,196 [61]. - The LCD segment generated external sales of HKD 716,845, contributing HKD 63,498 to segment performance [61]. - The PCB segment reported external sales of HKD 872,700, with a segment performance of HKD 22,438 [61]. - The smart charger segment had external sales of HKD 216,605, resulting in a segment loss of HKD 17,876 [61]. - The aerospace services segment, specifically the Shenzhen Aerospace Technology Plaza property investment, generated external sales of HKD 310,268, contributing HKD 389,340 to segment performance [62]. Future Plans - The company plans to strengthen market development and adjust market expansion strategies in response to ongoing economic challenges [98]. - The company will continue to enhance innovation investments to ensure major projects progress in an orderly manner [98]. - The company plans to continue exploring and implementing new business development opportunities to create value for shareholders [151]. - The company is advancing its "14th Five-Year" development plan, focusing on high-quality development and innovation-driven strategies [125].

Financial Performance - The company's unaudited revenue for the six months ended June 30, 2023, was HKD 1,733,548,000, a decrease of 29.58% compared to HKD 2,461,773,000 in the same period of 2022[7]. - The company reported a profit of HKD 55,065,000 for the period, compared to a loss of HKD 164,662,000 in the same period of 2022[7]. - The company's earnings per share for shareholders was HKD 0.0148, recovering from a loss of HKD 0.0233 per share in the same period of 2022[7]. - The profit attributable to shareholders was HKD 45,506,000, recovering from a loss of HKD 71,994,000 in the same period of 2022[14]. - The revenue from the technology industry was HKD 1,631,275,000, a decrease of 27.02% from HKD 2,235,234,000 in the same period of 2022[19]. - The operating profit from the technology industry was HKD 36,201,000, down 66.50% from HKD 108,072,000 in the same period of 2022[19]. - The revenue from the circuit board business decreased by 38.61%, with major customer orders dropping by approximately 30%[22]. - The company reported a total revenue of HKD 99,260,000 for the first half of 2023, a decrease from HKD 222,384,000 in the same period of 2022[27]. - Gross profit for the same period was HKD 349,016, down 40.9% from HKD 589,531 year-over-year[39]. - The net profit for the six months ended June 30, 2023, was HKD 55,065, a significant recovery from a loss of HKD 164,662 in the prior year[40]. - The company's total assets decreased by 5.04% to HKD 14,495,698,000 as of June 30, 2023, from HKD 15,265,828,000 at the end of 2022[29]. - Shareholders' equity attributable to the company decreased by 4.17% to HKD 7,339,492,000 compared to HKD 7,658,694,000 at the end of 2022[33]. - The company's total liabilities decreased to HKD 2,040,878 from HKD 2,125,969 year-over-year[48]. - The company recorded a pre-tax profit of HKD 6,000,000 for the six months ended June 30, 2023, compared to a pre-tax loss of HKD 112,268,000 for the same period in 2022, indicating a turnaround[78]. - The company reported a total comprehensive expense of HKD 397,658,000 for the six months ended June 30, 2023, compared to HKD 407,024,000 for the same period in 2022, reflecting a decrease of approximately 1.0%[63]. Operational Developments - The company is focusing on advanced manufacturing, modern services, and high-tech industries, optimizing resource allocation and developing new projects[11]. - The company plans to increase production capacity for high-density printed circuit boards by 240,000 square meters annually by 2025[11]. - The company is actively engaging with multiple clients for its smart power module packaging business, achieving expected product quality rates[11]. - The company plans to enhance market development efforts and adjust market expansion directions to meet its operational goals set at the beginning of the year[12]. - The company will continue to focus on the construction of the Nantong Kangyuan integrated circuit packaging board capacity project and the industrial park phase five factory construction, expected to be completed in October 2023[12][23]. - The company aims to improve operational efficiency and return value to shareholders amid a challenging external environment[12]. - The company has initiated a new reporting segment focused on smart power module business, expanding its operational divisions from 6 to 7[74]. - The company plans to continue its market expansion and product development strategies in the aerospace services sector[74]. Rental and Property Management - The rental income for the group is recognized after accounting for rent-free periods and is expected to be realized after the effective rent payment exceeds the actual rent[4]. - The rental rate for Shenzhen Aerospace Technology Plaza was 43.87% as of June 30, 2023, an increase of 11.17% compared to the end of the previous year[9]. - In the first half of 2023, Shenzhen Aerospace recorded a rental rate of 73.81% for commercial properties and 43.87% for office buildings, compared to 39.40% and 32.70% respectively at the end of 2022[27]. - As of June 30, 2023, the estimated value of Shenzhen Aerospace Technology Park was approximately RMB 7,851,000,000, slightly down from RMB 7,860,000,000 at the end of 2022[28]. - The company signed a construction contract for a factory project with a cost of RMB 316,859,999.99 (approximately HKD 358,889,556), expected to be completed by late May 2024[23]. Governance and Compliance - The Audit Committee consists of two independent non-executive directors and one non-executive director, responsible for overseeing financial reporting and risk management[104]. - The company has established an Environment, Social, and Governance Committee to formulate relevant policies[107]. - The company has adhered to the Corporate Governance Code as of June 30, 2023, with no significant litigation or arbitration involving the company or its subsidiaries[121]. - The audit committee has reviewed and approved the unaudited condensed consolidated financial statements for the six months ended June 30, 2023[124]. Employee and Community Engagement - The company expresses gratitude to all employees for their hard work and loyalty, as well as to shareholders, banks, business partners, and the community for their support[131]. - As of June 30, 2023, the company and its subsidiaries employed approximately 7,100 staff across mainland China, Hong Kong, and Vietnam[118]. Legal Matters - The company has received court rulings related to multiple lawsuits, including a judgment requiring payment of approximately RMB 98.65 million in rental fees[110]. - The company is appealing court decisions regarding the lawsuits, believing the likelihood of winning is high[115]. - Shenzhen Aerospace withdrew a claim for property vacancy loss of approximately RMB 76 million in a lawsuit against Hangke Houhai[128]. - The court ruled that Hangke Houhai must return rental payments totaling RMB 4,935,516.58 to Shenzhen Aerospace[128].

Financial Performance - In 2022, the company recorded a revenue of approximately HKD 310,268,000 from property leasing and management, a decrease from HKD 440,370,000 in 2021[13] - For the year ended December 31, 2022, the company's revenue was HKD 4,501,532,000, a decrease of 5.14% compared to HKD 4,745,367,000 in 2021[24] - The company reported a loss of HKD 252,722,000 for the year, a significant decline from a profit of HKD 403,214,000 in 2021[24] - The loss attributable to shareholders was HKD 119,918,000, compared to a profit of HKD 345,764,000 in the previous year[24] - Basic loss per share was HKD 0.0389, a substantial decrease from earnings of HKD 0.1121 per share in 2021[24] - The decrease in revenue was primarily due to reduced rental income from Shenzhen Aerospace, resulting in impairment losses totaling approximately HKD 718,138,000[38] - The technology industry segment generated revenue of HKD 4,180,912,000, a decrease of 2.51% from HKD 4,288,768,000 in 2021, while operating profit increased by 12.12% to HKD 212,488,000[26] - The PCB business saw a significant profit increase of 58.25%, despite a revenue decline of 5.71% to HKD 1,258,426,000[45] - The smart charger business experienced a revenue drop of 10.15% to HKD 378,380,000, but profit increased by 43.46% to HKD 10,372,000 due to improved cost management[45] - The LCD business revenue grew nearly 4% to HKD 1,104,540,000, but profit decreased by approximately 11% to HKD 51,265,000 due to industry cycle changes and geopolitical factors[45] Investment and Innovation - The company invested in technology innovation and R&D, achieving notable results, including advancements in 3D touch modules and fingerprint recognition technology[15] - The company is investing in advanced manufacturing capabilities, including the construction of a new factory in Huizhou with a total area of approximately 41,000 square meters, expected to be completed by October 2023[29] - The company emphasized the importance of technological innovation as a key driver for future growth and development[15] - The company’s smart research institute has made progress in developing 5G millimeter-wave filter chips, moving towards industrialization[42] - The company plans to enhance production automation and R&D capabilities while actively exploring new markets and managing risks in 2023[44] Environmental Impact - In 2022, the company's direct greenhouse gas emissions (Scope 1) were 1,059 tons of CO2 equivalent, a significant decrease from 63,273 tons in 2021[67] - The company's energy indirect emissions (Scope 2) increased to 148,933 tons of CO2 equivalent in 2022, up from 103,703 tons in 2021[67] - The density of greenhouse gas emissions per employee decreased slightly from 26.7 tons to 26.2 tons of CO2 equivalent per employee[67] - The company strictly adheres to environmental regulations regarding waste management, pollutant discharge, and noise emissions, implementing energy management systems and waste management controls[63][64] - The company has established measures to ensure compliance with various environmental laws, including the Air Pollution Prevention Law and the Solid Waste Pollution Prevention Law[65] - The company emphasizes the importance of proper waste management to prevent negative impacts on the local ecological environment and stakeholder interests[70] - The company has implemented a wastewater treatment system to increase water reuse rates and reduce wastewater discharge[63] - In 2022, sulfur oxide emissions increased to 18.02 kg, up from 8.13 kg in 2021, indicating a need for improved emissions management[66] - The company aims to reduce greenhouse gas emissions by 3% compared to the previous year and to recycle 10% of waste originally destined for landfills[72] - The total electricity consumption decreased from 167,225.9 thousand kWh in 2021 to 147,573.0 thousand kWh in 2022, a decrease of 11.7%[79] - The use of natural gas increased from 1,766.9 thousand kWh in 2021 to 1,989.4 thousand kWh in 2022, an increase of 12.6%[79] - The company has achieved ISO 14001 environmental management system certification and conducts regular third-party audits[80] - The density of hazardous waste per employee increased from 0.43 tons in 2021 to 0.60 tons in 2022, a rise of 39.5%[76] - The company has implemented measures to improve waste gas collection efficiency, resulting in increased monitoring capabilities[72] - The company is committed to disclosing key performance indicators related to emissions and waste generation in annual reports[76] - Total water consumption decreased from 2,003,926 tons in 2021 to 1,536,353 tons in 2022, representing a reduction of approximately 23.3%[88] - Water consumption density per employee improved from 320.8 tons/employee in 2021 to 268.8 tons/employee in 2022, a decrease of about 16.2%[88] - Total packaging material used increased from 2,715 tons in 2021 to 5,351 tons in 2022, an increase of approximately 97.5%[88] Workforce and Employment - The number of male employees decreased from 3,726 in 2021 to 3,332 in 2022, a reduction of approximately 10.6%[100] - The number of female employees decreased from 2,520 in 2021 to 2,383 in 2022, a decline of about 5.4%[100] - In 2022, the total number of employees decreased to 5,715 from 6,246 in 2021, indicating a significant reduction in workforce[121] - The number of workdays lost due to work-related injuries increased to 663 days in 2022, compared to 323 days in 2021[117] - Employee diversity and equal opportunity are emphasized, with a focus on fair recruitment practices regardless of age, gender, or background[91] - Employee training participation remained high, with 100% of employees trained in both 2021 and 2022, although the average training hours varied across employee categories[108] - The employee turnover rate increased significantly in 2022, attributed to challenges in recruitment and an aging workforce in the traditional manufacturing sector[112] - The company has implemented a comprehensive occupational health and safety management system, with regular assessments and training for safety protocols[107] - No fatalities occurred due to work-related incidents over the past three years, maintaining a strong safety record[117] - The company adheres to labor standards, ensuring no employment of child labor and compliance with relevant labor laws[120] Governance and Compliance - The company plans to increase the proportion of female directors on its board from 12.5% to over 20% by 2025[165] - The company held five board meetings in 2022, adhering to its governance policies[164] - The company has established measurable targets for gender diversity in its board composition[165] - The company is committed to maintaining compliance with listing rules regarding board composition and independent directors[173] - The company has implemented measures to review recruitment practices to avoid child and forced labor[43] - The company is focused on enhancing its environmental and social governance practices, including waste reduction and resource efficiency[171] - The company is actively monitoring and managing its environmental impact, including greenhouse gas emissions and waste management[171] - The company has implemented mechanisms to prevent bribery, extortion, fraud, and money laundering, ensuring compliance with various laws related to supply chain management[143] - The company has established a product quality inspection method that includes incoming inspection, in-process inspection, and outgoing inspection to ensure product safety[137] - The company has committed to using environmentally friendly materials in its supply chain to mitigate environmental and social risks[127] - The company’s subsidiaries have received various international certifications, including ISO9001 and ISO14001, demonstrating their commitment to quality and environmental management[137] Shareholder Returns - A final dividend of HKD 0.02 per share was declared for the year 2022 to reward shareholders[25] - The company plans to distribute a final dividend of HKD 0.02 per share for the year 2022, pending approval at the annual general meeting on June 21, 2023[113] - The company received dividends totaling approximately RMB 2,945,800 from its associate company, Shenzhen Ruihua Tai Film Technology Co., Ltd., which it holds a 23.38% stake in[167] Assets and Liabilities - Total assets decreased by 9.50% to HKD 15,265,828,000 as of December 31, 2022, compared to HKD 16,869,162,000 in 2021[182] - Non-current liabilities decreased significantly by 21.94% to HKD 3,321,318,000, while current liabilities increased by 21.90% to HKD 2,159,847,000[185] - The company's net asset value per share is HKD 2.48, reflecting a decrease due to losses incurred during the year[183] - Gross profit margin declined to 21.97% from 22.65% year-on-year[189] - Cash and bank balances as of December 31, 2022, amounted to HKD 2,021,327,000, primarily in HKD and RMB[190] - Administrative expenses increased by 8.37% to HKD 451,894,000, mainly due to rising labor costs and depreciation[196] - The company has no significant contingent liabilities other than those mentioned, related to a claim from a major tenant[186] - The company is actively working on improving property rental rates through partnerships and enhanced marketing efforts[180] - The company has pledged properties valued at approximately RMB 1,900,000,000 to secure a loan of RMB 1,300,000,000[193] - Return on equity decreased to -2.58% from 3.72% year-on-year[199]

Financial Performance - The company's revenue for the fiscal year ended December 31, 2022, was HKD 4,501,532, a decrease of 5.1% compared to HKD 4,745,367 in 2021[2] - Gross profit for the same period was HKD 989,106, down from HKD 1,074,660, reflecting a gross margin decline[2] - The company reported a net loss attributable to shareholders of HKD 652,295, compared to a profit of HKD 523,839 in 2021[3] - The company reported a pre-tax loss of HKD 325,723,000 for 2022, compared to a profit of HKD 486,102,000 in 2021[21] - The net loss attributable to shareholders for the year was HKD 119,918,000, down from a profit of HKD 345,764,000 in 2021[21] - The company reported a comprehensive income of HKD (962,109,000) for the year, compared to HKD 642,623,000 in 2021[22] - The company reported a loss of HKD 252,722,000 for the year, a significant decline from a profit of HKD 403,214,000 in 2021[38] - Basic loss per share was HKD 3.89 cents, down from earnings of HKD 11.21 cents per share in 2021[38] Assets and Liabilities - Total assets decreased to HKD 13,105,981 from HKD 15,097,341, while current liabilities increased to HKD 2,159,847 from HKD 1,771,821[4] - The company’s total equity attributable to shareholders decreased to HKD 7,658,694,000 in 2022 from HKD 8,388,114,000 in 2021[24] - The total liabilities decreased by 9.05% from HKD 6,026,396,000 in 2021 to HKD 5,481,165,000 in 2022[79] - The company's reserves decreased to HKD 6,504,183,000 in 2022 from HKD 7,233,603,000 in 2021[135] - The company's debt-to-asset ratio increased slightly to 35.90% in 2022 from 35.72% in 2021[119] Income and Revenue Streams - The company received government subsidies related to COVID-19 amounting to HKD 2,272, which was not present in the previous year[9] - The rental income from Shenzhen Aerospace Technology Plaza decreased significantly due to the impact of the COVID-19 pandemic[42] - Revenue from injection molding products was HKD 1,430,081,000, a decrease of 2.02% from HKD 1,459,512,000 in 2021[100] - Revenue from PCB (printed circuit board) was HKD 1,258,426,000, a decrease of 5.71% from HKD 1,334,669,000 in 2021[100] - Revenue from smart chargers was HKD 378,380,000, a decrease of 10.15% from HKD 421,123,000 in 2021[100] Research and Development - Research and development expenses rose to HKD 155,523 from HKD 140,236, indicating increased investment in innovation[2] - The company emphasized ongoing investment in technology innovation and R&D, achieving significant results in 2022[19] - The company established a wholly-owned subsidiary, Zhizhao Microelectronics, to develop packaging production lines for intelligent power modules (IPM)[74] - The company established the Smart Research Institute in 2021, focusing on high-tech product development, achieving significant progress in the R&D of 5G millimeter wave filter chips[173] Legal and Compliance Issues - The company is currently involved in litigation with a claim amounting to approximately RMB 119 million related to delayed property delivery[11] - The company is actively pursuing legal claims related to rental income and damages, totaling approximately RMB 252.91 million across multiple lawsuits[92][93] - The company believes that the litigation claims can be successfully defended without significant economic resource outflow[97] - The company has complied with all relevant listing rules and corporate governance codes as of December 31, 2022[128] Future Outlook and Strategy - The company anticipates economic recovery in 2023, but faces uncertainties due to geopolitical changes and ongoing inflationary pressures[47] - The company aims to enhance production automation and R&D capabilities to adapt to the changing market environment[47] - The company plans to focus on high-value-added products and modern manufacturing, including advanced PCB and LCD technologies[67] - The company plans to build a high-precision PCB factory on a 131,666 square meter industrial site in Jiangsu Province to further enhance production capacity[74] - The company plans to invest in advanced manufacturing capabilities, including the construction of a new factory in Huizhou with a contract value of approximately HKD 104,381,458, expected to be completed by October 2023[172] Operational Challenges - The company faced significant challenges in 2022 due to the ongoing COVID-19 pandemic and economic instability, impacting operations[17] - The injection molding business faced challenges due to the pandemic and global inflation, leading to a substantial decline in overall operating profit[85] - The intelligent charger business experienced a significant revenue decline due to major customers reducing orders, but overall profitability improved by 43.46% through cost control measures[74] - The smart charger business, despite negative impacts from COVID-19 and trade disputes, managed to increase operational profit through product structure adjustments and increased R&D investment[85] Dividend and Shareholder Information - The company proposed a final dividend of HKD 0.02 per share for the year ended December 31, 2022, pending approval at the upcoming annual general meeting[35] - The company declared a final dividend of HKD 0.02 per share for the year ended 2021, with interim dividends of HKD 0.005 per share for the first half of 2022[170] - The company’s basic and diluted earnings per share were calculated based on the financial data provided, with dividends declared amounting to HKD 77,125,000 for the year[146]

Financial Performance - For the first half of 2022, the company's unaudited revenue was HKD 2,461,773,000, an increase of 14.11% compared to HKD 2,157,342,000 in the same period of 2021[4]. - The company reported a loss of HKD 164,662,000 for the period, a significant decrease from a profit of HKD 315,028,000 in the same period of 2021[4]. - The revenue from industrial enterprises was HKD 2,235,234,000, up 15.70% from HKD 1,931,854,000 in the same period of 2021[6]. - Operating profit for industrial enterprises was HKD 108,072,000, an increase of 52.68% compared to HKD 70,784,000 in the same period of 2021[6]. - The company reported a segment profit of HKD 220,781,000, up 34.06% from HKD 164,796,000 in the first half of 2021, primarily driven by rental and property management fee income[21]. - The company reported a pre-tax loss of HKD 276,930,000 for the six months ended June 30, 2022, compared to a pre-tax profit in the previous year[88]. - The group reported a loss attributable to shareholders of HKD (71,994) for the six months ended June 30, 2022, compared to a profit of HKD 258,768 in the same period of 2021[107]. - The net loss for the period was HKD 164,662,000, compared to a profit of HKD 315,028,000 in the previous year, indicating a significant decline in profitability[64]. Revenue Breakdown - The revenue from the technology industry segment was HKD 2,235,234,000, representing a 15.70% increase compared to HKD 1,931,854,000 in the same period of 2021[18]. - The aerospace services segment generated revenue of HKD 222,827,000, with a substantial profit of HKD 220,781,000, indicating strong performance in property investments[88]. - Revenue from external sales in Hong Kong was HKD 1,356,583,000, while revenue from mainland China was HKD 903,424,000, showing a diversified revenue stream[98]. - The revenue from customer contracts amounted to HKD 2,273,345,000, with rental income contributing an additional HKD 188,428,000[96]. - The company's profit from the technology industry segment included HKD 61,164,000 from circuit boards and HKD 27,540,000 from LCD displays[88]. Dividends and Shareholder Returns - The interim dividend declared is HKD 0.005 per share[4]. - The company announced an interim dividend of HKD 0.005 per share, considering its financial and cash position[16]. - The company declared an interim dividend of HKD 0.5 per share for the six months ended June 30, 2022, totaling HKD 15,425,000, compared to no interim dividend in 2021[108]. Assets and Liabilities - As of June 30, 2022, the total assets amounted to HKD 15,800,952,000, a decrease of 6.33% from HKD 16,869,162,000 at the end of 2021[24]. - The company's equity attributable to shareholders decreased by 5.24% to HKD 7,948,323,000 from HKD 8,388,114,000 at the end of 2021, mainly due to losses incurred during the period[25]. - Non-current liabilities decreased significantly by 20.89% to HKD 3,365,613,000, while current liabilities increased by 26.74% to HKD 2,245,590,000[28]. - The total liabilities decreased to HKD 10,189,749 from HKD 10,842,766, a reduction of 6.0%[70]. - The group’s total liabilities for trade and other payables were HKD 1,482,288,000 as of June 30, 2022, compared to HKD 1,495,937,000 as of December 31, 2021[129]. Expenses - The administrative expenses for the first half of 2022 were HKD 258,598,000, an increase of 18.66% compared to the same period in 2021, primarily due to rising labor costs and depreciation[30]. - Research and development expenses rose to HKD 77,472,000, compared to HKD 70,062,000, marking an increase of 10.5%[63]. - The group’s depreciation expense for property, plant, and equipment increased to HKD 119,545 for the six months ended June 30, 2022, compared to HKD 94,263 in the same period of 2021[103]. Impairment and Losses - The company reported a significant loss from terminated leases amounting to HKD 444,226,000, compared to a gain of HKD 200,861,000 in the previous year[63]. - An additional impairment loss of HKD 175,882,000 was recognized for receivables from Hangke Houhai, reflecting a shift in internal credit risk assessment from doubtful to loss[80]. - The group recognized an additional impairment loss of HKD 175,882,000 for expected credit losses related to receivables from Hangke Houhai, which was classified as a loss due to internal credit risk rating changes[124]. Market Conditions and Future Outlook - The company anticipates ongoing challenges from the COVID-19 pandemic, inflation, and geopolitical uncertainties in the second half of 2022[20]. - The company aims to enhance its market presence and explore new strategies for growth in the upcoming periods[88]. - The company continues to focus on market expansion and risk management while controlling production costs and maintaining production scale and capacity[20]. Governance and Compliance - The company has complied with the Corporate Governance Code as of June 30, 2022, despite a temporary reduction in the number of independent non-executive directors[45]. - The audit committee reviewed and approved the unaudited condensed consolidated financial statements for the six months ended June 30, 2022[49]. - The company has appointed Ms. Chen Jingru as an independent non-executive director, enhancing its governance structure[56].

Financial Performance - For the year ended December 31, 2021, the company's revenue was HKD 4,745,367,000, an increase of 32.55% compared to HKD 3,580,121,000 in 2020[12]. - The net profit attributable to shareholders was HKD 345,764,000, representing a 16.54% increase from HKD 296,681,000 in 2020[12]. - The gross profit margin decreased from 27.02% in 2020 to 22.65% in 2021 due to rising production costs[12]. - Basic earnings per share for the year were HKD 0.1121, representing a 16.53% increase from HKD 0.0962 in 2020[27]. - The company recorded an increase in total liabilities of 3.35% to HKD 6,026,396,000, with current liabilities rising by 9.21% to HKD 1,771,821,000[39]. - The company's equity attributable to shareholders increased by 5.83% to HKD 8,388,114,000, with a net asset value per share of HKD 2.72 based on 3,085,022,000 shares issued[38]. - The company reported a final dividend of HKD 0.02 per share for the year ended December 31, 2021, consistent with the previous year[167]. Revenue Segments - The technology industry segment recorded revenue of HKD 4,288,768,000, a 34.67% increase from HKD 3,184,620,000 in 2020[15]. - The Shenzhen Aerospace Technology Plaza's revenue was HKD 440,370,000, up 14.30% from HKD 385,261,000 in 2020[17]. - The company's revenue for the technology industry reached HKD 4,288,768,000, an increase of 34.67% compared to the previous year, while operating profit decreased by 13.14% to HKD 189,519,000[32]. Challenges and Strategies - The company faced challenges such as supply chain disruptions and rising commodity prices but managed to achieve significant revenue growth through market expansion efforts[15]. - The company aims to enhance its market expansion efforts and increase investment in R&D and production capacity to improve competitiveness[21]. - The company is focusing on developing advanced manufacturing, modern services, and high-tech industries as part of its five-year strategic plan[29]. Human Resources and Employee Management - The company had a total of approximately 6,811 employees distributed across mainland China, Hong Kong, and Vietnam as of December 31, 2021[48]. - The company is committed to enhancing human resource management and implementing a performance-based assessment system to improve employee performance[47]. - The employee turnover rate for those under 30 years old increased significantly, with many young employees opting for emerging industries like IT[126]. - The percentage of trained employees remained at 100% for both male and female employees in 2021, with average training hours per employee decreasing significantly across various categories[131]. Corporate Governance - The board of directors consists of both executive and non-executive members, ensuring compliance with the corporate governance code as per the Hong Kong Stock Exchange[52]. - The company has adopted the standard code for securities trading by directors and employees, prohibiting trading during specified periods before financial results announcements[58]. - The company has a structured approach to board meetings, with attendance records indicating active participation by directors[59]. - The company has implemented a risk management and internal control system, regularly evaluating its effectiveness and making necessary adjustments[79]. Environmental, Social, and Governance (ESG) Initiatives - The Environmental, Social, and Governance (ESG) Committee was established on March 30, 2021, and held two meetings to discuss ESG policies and reporting matters[73]. - The company has achieved ISO 14001 environmental management system certification to systematically manage and improve environmental impacts[119]. - The company has implemented measures to minimize waste and pollution, focusing on resource efficiency and the use of renewable energy[116]. - The company reported a total emissions of sulfur oxides decreased significantly to 8.13 kg from 145.24 kg in 2020, representing a reduction of approximately 94.4%[110]. Community Engagement and Social Responsibility - The company allocated RMB 6,000 for community investment and dedicated 300 hours to charitable activities in 2021[147]. - The company emphasizes the importance of anti-corruption training for employees, including directors and senior management, to foster a healthy corporate culture[146]. - The report includes key performance indicators related to emissions, resource usage, and community engagement[150]. Audit and Financial Reporting - The independent auditor has issued an unqualified opinion on the consolidated financial statements, affirming they present a true and fair view of the company's financial position as of December 31, 2021[189]. - The auditors assessed the appropriateness of accounting policies adopted by the directors and the reasonableness of accounting estimates and related disclosures[200]. - The company is responsible for preparing consolidated financial statements that are true and fair in accordance with Hong Kong Financial Reporting Standards[197].