Financial Performance - Revenue from continuing operations for the six months ended June 30, 2021, was HKD 1,283,336,000, representing an increase of 48.7% compared to HKD 862,997,000 for the same period in 2020[18]. - Gross profit from continuing operations for the same period was HKD 226,886,000, up 48.5% from HKD 152,758,000 in 2020, maintaining a gross margin of 17.7%[18]. - Profit for the period was HKD 52,256,000, a 45.7% increase from HKD 35,863,000 in the previous year[18]. - Basic earnings per share for the six months ended June 30, 2021, was HKD 0.0275, compared to HKD 0.0187 for the same period in 2020, reflecting a growth of 47.1%[18]. - The total comprehensive income for the period was HKD 73,956, significantly higher than HKD 3,307 in the same period last year[34]. - The company reported a net profit attributable to owners of HKD 52,256,000 for the six months ended June 30, 2021, compared to HKD 35,863,000 in 2020, reflecting a strong performance[91]. Assets and Liabilities - Net assets as of June 30, 2021, were HKD 1,719,423,000, with a debt ratio of 28.7%, slightly down from 29.4% in 2020[18]. - Total assets as of June 30, 2021, amounted to HKD 3,739,716, an increase from HKD 3,371,907 as of December 31, 2020[36]. - Current liabilities increased to HKD 1,972,668 thousand as of June 30, 2021, up from HKD 1,705,738 thousand as of December 31, 2020, representing a growth of 15.6%[38]. - Total liabilities rose to HKD 2,020,293 thousand, compared to HKD 1,726,336 thousand in the previous period, marking an increase of 17.0%[38]. - The total equity as of June 30, 2021, was HKD 1,719,423 thousand, up from HKD 1,645,571 thousand, reflecting a growth of 4.5%[40]. Cash Flow and Financing - The net cash generated from operating activities was HKD 128,510 thousand for the six months ended June 30, 2021, compared to HKD 203,415 thousand in the same period of the previous year, indicating a decrease of 36.8%[46]. - The net cash generated from financing activities for the six months ended June 30, 2021, was HKD 35,277, compared to a net cash outflow of HKD 187,323 for the same period in 2020[49]. - Cash and cash equivalents increased to HKD 127,236 as of June 30, 2021, up from HKD 67,651 at the end of 2020[49]. - The company reported a decrease in interest paid, which was HKD 9,105 in 2021 compared to HKD 19,307 in 2020[49]. Operational Highlights - The sales volume of steel cord for tires increased by approximately 27.0% to 105,947 tons, up from 83,405 tons in the previous year[152]. - Sales of cut steel wire products surged approximately 76.2% to 252 tons, compared to 143 tons in the same period last year[152]. - The steel cord division's revenue accounted for 99.9% of total revenue, with a reported figure of HKD 1,282,582,000, reflecting an increase of 48.8% from the previous year[156]. - The management team emphasized efforts to capture market opportunities despite rising raw material and production costs[157]. Future Outlook and Strategy - The company aims to become one of the top three manufacturers in the steel cord industry in China, with a target annual production capacity exceeding 300,000 tons[5]. - The company plans to invest in a new production line with an annual capacity of 100,000 tons for steel wire, which is expected to enhance performance and competitiveness[171]. - The company plans to explore other businesses in 2021 that may create synergies with its main operations[177]. - The macroeconomic environment in China is anticipated to improve in infrastructure investment, benefiting the automotive and tire industries[177]. Shareholder Information - The company did not declare any dividends in the first half of 2021, while HKD 19,064 was paid in dividends in the same period of 2020[49]. - The company proposed a final dividend of HKD 0.015 per share, totaling approximately HKD 28,480,000, to be paid in July 2021[98]. - As of June 30, 2021, the company had significant shareholder interests, with one entity holding approximately 71.70% of the shares[183]. Corporate Governance - The board believes that the current arrangement of having the same individual serve as both Chairman and CEO is effective for timely decision-making despite deviating from corporate governance code A.2.1[193]. - The audit committee consists of three independent non-executive directors, overseeing financial reporting and risk management processes[198].

Financial Performance - Revenue from continuing operations for 2020 was HK$2,041,553,000, a decrease of 4.7% compared to HK$2,141,380,000 in 2019[15]. - Gross profit from continuing operations increased by 4.3% to HK$394,322,000, with a gross profit margin of 19.3%, up from 17.6% in the previous year[15]. - Profit for the year rose by 36.8% to HK$148,254,000, compared to HK$108,344,000 in 2019[15]. - Basic earnings per share increased by 37.8% to 7.76 HK cents, while diluted earnings per share rose by 29.7% to 6.77 HK cents[15]. - Total equity increased by 16.3% to HK$1,645,571,000 from HK$1,415,072,000 in 2019[15]. - The Group's total sales volumes slightly grew by 1% year-on-year in 2020 despite challenges, with net profit increasing by 36.8% from HK$108,344,000 to HK$148,254,000[84]. - Basic earnings per Share rose by 37.8% to HK7.76 cents for the year, up from HK5.63 cents the previous year[90]. - The Group's net profit increased by 36.8% to HK$148,254,000, compared to HK$108,344,000 in the previous year[111]. Dividends - Proposed final dividend per share was increased by 50.0% to 1.5 HK cents, up from 1 HK cent in the previous year[15]. - The final dividend for 2020 was declared at HK1.5 cents per share, while the interim dividend was nil[18]. - The Board recommended a final dividend of HK1.5 cents per Share for the year ended 31 December 2020[94]. - The payment date for the final dividend is set for July 9, 2021[18]. Shareholder Information - As of the last trading day of 2020, the company had 1,899,024,556 shares outstanding and a market capitalization of HK$421,583,451[18]. - The closing share price on the last trading day of 2020 was HK$0.222[18]. - The total number of issued shares decreased to 1,899,024,556 shares as of December 31, 2020[153][155]. Management and Governance - The chairman of the company, Mr. Su Fanrong, has over 25 years of experience in the steel industry[22]. - Mr. Su's current monthly salary is HK$220,000, with remuneration based on company performance and market conditions[23]. - The Company’s directors are subject to retirement by rotation and re-election at the annual general meetings[31][37]. - Mr. Adam Touhig was appointed as a non-executive Director on January 15, 2021, and has over 30 years of experience in the tier 1 automotive industry[42][43]. - Mr. Lam has over 40 years of extensive experience in accounting, auditing, and business consulting, contributing to the Company's governance[58]. - The company emphasizes that the emoluments of directors are aligned with the company's profitability and market conditions[72]. Operational Highlights - The company aims to achieve an annual manufacturing capacity exceeding 300,000 tonnes of high-quality steel cords[7]. - The Group aims to add an additional 100,000 tonnes of steel cord production capacity through expansion plans at its Tengzhou plant[89]. - New brass wire production facilities commenced operation during the year, enhancing productivity and competitiveness[89]. - The Group is committed to implementing green practices in production to achieve sustainable development and fulfill social responsibilities[98]. Market Outlook - The Group expects promising business prospects in 2021, driven by increased global demand for logistics and tyres due to the mitigation of the COVID-19 pandemic[95]. - The sales of steel cords are anticipated to bloom, supported by the Chinese government's domestic circulation policy and rising demand for electric vehicle tyres[95]. - The macro-economic environment in the PRC is expected to improve, leading to continuous sales growth in the automotive and tyre industry[194]. - Key tyre customers are ramping up production capacities, either by leasing unused machinery or expanding within or outside the PRC[194]. Financial Position - Gearing ratio improved significantly to 29.4%, down from 50.8% in 2019, indicating a reduction in financial leverage[15][16]. - The Group's net asset value increased by 17.8% to HK$0.867 per Share as at 31 December 2020, compared to HK$0.736 per Share at the end of 2019[90]. - The current ratio was 1.15 times at December 31, 2020, compared to 1.28 times at December 31, 2019[167]. - The Group had capital commitments of HK$223.16 million related to property, plant, and equipment as of December 31, 2020[174]. Challenges and Risks - The Group ceased operations of the copper and brass products segment, which contributed no revenue in 2020 and recorded a loss of HK$711,000[126]. - Other losses, net increased by 350.5% to HK$59,377,000, driven by impairment losses and fair value losses on Convertible Bonds[141][146]. - Distribution and selling expenses decreased by 6.5% to HK$84,149,000, primarily due to a decline in export sales of the steel cord segment[135]. - Administrative expenses rose by 2.8% to HK$55,956,000, mainly due to increased amortization of land use rights[137].

Financial Performance - The company's revenue for the six months ended June 30, 2020, was HKD 862,997,000, a decrease of 21.2% compared to HKD 1,095,773,000 for the same period in 2019[26]. - Gross profit for the same period was HKD 152,758,000, down 16.0% from HKD 181,821,000 in 2019, with a gross margin of 17.7%, an increase of 1.1 percentage points year-on-year[26]. - Adjusted EBITDA for the six months was HKD 101,562,000, representing an 18.0% decline from HKD 123,816,000 in the previous year[26]. - Basic earnings per share for the period were HKD 1.87 cents, a 2.2% increase from HKD 1.83 cents for the year ended December 31, 2019[26]. - The net profit attributable to the company for the period was HKD 35,863,000, slightly up from HKD 35,201,000 in the previous year[40]. - The total comprehensive income for the period was HKD 3,307 thousand, down from HKD 28,749 thousand in the previous year, reflecting a decrease of approximately 88.5%[45]. - The company reported a profit of HKD 35,863 thousand for the period, compared to a loss in the previous period, indicating a significant turnaround[45]. - The company reported a loss from discontinued operations of HKD (142,000) for the six months ended June 30, 2020, compared to a loss of HKD (4,370,000) in the same period of 2019, indicating a significant reduction in losses[149]. Assets and Liabilities - Net assets as of June 30, 2020, were HKD 1,396,219,000, a decrease of 1.3% from HKD 1,415,072,000 in 2019[26]. - Total assets as of June 30, 2020, amounted to HKD 3,143,918,000, compared to HKD 2,746,096,000 as of December 31, 2019[42]. - The company’s non-current liabilities decreased significantly from HKD 236,985,000 to HKD 26,368,000, indicating improved financial stability[42]. - Total current liabilities decreased from HKD 1,491,861 thousand in December 2019 to HKD 1,323,509 thousand in June 2020, representing a reduction of approximately 11.3%[43]. - Total liabilities decreased from HKD 1,728,846 thousand in December 2019 to HKD 1,349,877 thousand in June 2020, a decline of about 22%[43]. - The company’s accumulated losses stood at HKD 225,335 thousand as of June 30, 2020, compared to HKD 233,547 thousand at the beginning of the year, showing a reduction of approximately 3.5%[45]. - The company had no contingent liabilities as of June 30, 2020[192]. Cash Flow and Financing - Cash generated from operating activities for the six months ended June 30, 2020, was HKD 204,898 thousand, compared to HKD 106,369 thousand for the same period in 2019, reflecting an increase of about 92%[59]. - The net cash generated from operating activities was HKD 203,415 thousand for the six months ended June 30, 2020, up from HKD 106,835 thousand in 2019, marking an increase of approximately 90.5%[59]. - The company’s cash and cash equivalents decreased to HKD 30,300,000 from HKD 53,921,000 at the end of 2019[42]. - The company’s bank loans increased from HKD 400,461 thousand in December 2019 to HKD 508,193 thousand in June 2020, an increase of about 27%[43]. - The net cash outflow from financing activities related to discontinued operations was HKD (18) thousand, consistent with the previous year[61]. - The company reported a cash inflow from discounted bills of HKD 162,946 thousand, which is an increase of 30.6% compared to HKD 124,800 thousand in the prior year[61]. - The company incurred a net impairment loss of HKD (209,000) in 2020, a significant improvement from HKD (2,719,000) in 2019, suggesting better asset management[149]. Operational Highlights - The company aims to become one of the top three independent manufacturers in the steel cord industry in China[4]. - The company is focused on expanding its brand recognition in the steel cord industry as a successful "Eastern" brand[4]. - The company continues to diversify its product offerings in the metal products manufacturing sector[4]. - The company managed to maintain mid-year performance in 2020 at the same level as 2019 despite a significant decline in sales, attributed to timely financial and fiscal support from the government[193]. - The company has implemented strict epidemic prevention measures to ensure compliance with local government requirements and maintain uninterrupted production, with no recorded infections in its factories and offices[193]. - The company is focusing on automating production processes to reduce health risks associated with infections[193]. Shareholder Information - The company proposed a final dividend of HKD 0.01 per ordinary share, totaling approximately HKD 19,064,000, to be paid in June 2020[115]. - The board decided not to declare an interim dividend for the six months ended June 30, 2020, compared to no dividend declared for the same period in 2019[195]. - A total of 14,594,000 shares were repurchased at a total cost of approximately HKD 3,095,536, with all repurchased shares being cancelled[196]. Market and Sales Performance - The sales revenue from the steel wire segment was HKD 862,235,000 for the six months ended June 30, 2020, down from HKD 1,094,905,000 in the same period of 2019, representing a decrease of approximately 21.2%[92][101]. - The overall sales volume for the period was 87,958 tons, down 14.7% from 103,124 tons in the same period last year[166]. - Sales volume of steel cord decreased by 15.3% to 83,405 tons, down from 98,482 tons in the same period last year[165]. - Export sales volume decreased by 21.2% to 16,742 tons, compared to 21,250 tons in the previous year[168].

Financial Performance - Revenue from continuing operations for 2019 was HK$2,141,380,000, representing a 0.9% increase from HK$2,122,933,000 in 2018[17] - Gross profit from continuing operations increased by 41.5% to HK$377,944,000, up from HK$267,104,000 in the previous year[17] - Gross profit margin improved to 17.6%, an increase of 5.0 percentage points from 12.6%[17] - Adjusted EBITDA rose by 49.5% to HK$273,740,000, compared to HK$183,114,000 in 2018[17] - The company reported a profit for the year of HK$108,344,000, a significant turnaround from a loss of HK$8,681,000 in 2018[17] - Basic earnings per share increased to 5.63 HK cents, compared to a loss of 0.45 HK cents per share in the previous year[18] - Total equity increased by 5.7% to HK$1,415,072,000 from HK$1,339,150,000[18] - The Group's net profit for the year ended December 31, 2019, was HK$108,344,000, a significant improvement from a net loss of HK$8,681,000 in the previous year[91] - Basic earnings per share for the year were HK5.63 cents, compared to a loss per share of HK0.45 cent in the previous year[92] Dividends and Shareholder Information - Proposed final dividend per share is 1 HK cent, with no previous dividend reported[18] - The final dividend for 2019 was declared at HK1 cent per share[22] - The payment date for the final dividend is set for June 26, 2020[22] - The company has not declared any interim dividend for 2019[22] - The annual general meeting is scheduled for May 27, 2020[22] - The closure of the register of members for the annual general meeting will be from May 21 to May 27, 2020[22] Market and Sales Performance - The total national car sales in China fell by 8.2% to approximately 25,769,000 units in 2019, marking a decline for the second consecutive year since 1990[90] - The Group's sales tonnage in steel cords increased during the year, contributing to a drop in production costs[91] - The sales volume of Steel cords increased by 4.9% to 194,006 tonnes from 184,910 tonnes in the previous year[112] - Export sales volume of Steel cords rose by 13.3% to 40,134 tonnes, representing 20.7% of total sales volume for the year, compared to 19.2% in the previous year[118] - The sales of "off the road" Steel cords increased by 50.2% for the year, indicating successful market expansion efforts[116] Operational Efficiency and Cost Management - The Group's turnaround from loss to profit was primarily attributable to an increase in gross profit driven by sales volume growth and reduced production costs[110] - The Group aims to further reduce production costs by streamlining manufacturing processes and increasing automation[6] - Distribution and selling expenses increased by 32.8% to HK$90,033,000, primarily due to higher sales in export markets despite a 25% tariff imposed by the United States[135][136] - Research and development expenses decreased by 3.2% to HK$74,493,000, aligning with the requirements from tyre manufacturing customers[139][143] Management and Directors - Mr. Su currently receives a monthly salary of HK$220,000[33] - Mr. Tang holds 10,480,000 shares, with 200,000 shares jointly owned with his wife[37] - Mr. Tang's current monthly salary is HK$165,000[40] - Mr. Ye was appointed as a non-executive Director on June 28, 2019, and re-designated as an executive Director on January 1, 2020[43] - Mr. Li was appointed as an executive Director effective January 1, 2020[49] - The emoluments of Directors are determined based on the Company's performance and profitability, as well as industry benchmarks and prevailing market conditions[62] Financial Position and Ratios - Gearing ratio improved significantly to 50.8%, down from 71.4%, a decrease of 20.6 percentage points[18] - The Group's bank balances and cash decreased by 30.0% to HK$101,732,000 as of December 31, 2019, down from HK$145,312,000 in 2018[155] - Total interest-bearing borrowings decreased by 25.4% to HK$821,290,000 as of December 31, 2019, compared to HK$1,100,809,000 in 2018[155] - The current ratio improved to 1.28 times at December 31, 2019, compared to 1.19 times at December 31, 2018[159][162] Future Plans and Challenges - The Group anticipates a lagging performance in Q1 2020 compared to strong results in 2019 due to challenges such as the coronavirus crisis and trade disputes[3] - The Group plans to expand its Steel cord manufacturing capacity by an additional 100,000 tonnes as part of the "14th Five Year Plan"[4] - The Group aims to enhance its competitive edge through product innovation and research and development efforts[98] Other Financial Information - Other income surged by 349.7% to HK$16,891,000, mainly due to increased government grants[140] - Other losses, net, rose by 229.3% to HK$13,179,000, attributed to impairment losses and fair value losses on Convertible Bonds[141] - The Copper and brass products segment was discontinued in September 2019, contributing no revenue in 2019 compared to HK$131,177,000 in 2018[125][129]

Financial Performance - For the six months ended June 30, 2019, the company reported a revenue of HKD 1,095,773,000, a decrease of 4.1% compared to HKD 1,142,797,000 in the same period of 2018[19] - The gross profit for the same period increased by 56.0% to HKD 181,821,000 from HKD 116,547,000 year-on-year[19] - Adjusted EBITDA for the first half of 2019 was HKD 119,479,000, reflecting a significant increase of 59.9% from HKD 74,740,000 in the previous year[19] - The net profit for the period was HKD 35,201,000, compared to a loss of HKD 22,543,000 in the same period of 2018[19] - The basic earnings per share for the first half of 2019 were HKD 0.183, compared to a loss per share of HKD 0.117 in the same period of 2018[19] - The company reported a total revenue of HKD 1,094,905,000 for the six months ended June 30, 2019, compared to HKD 1,141,742,000 for the same period in 2018, indicating a decrease of approximately 4.1%[105] - The company achieved a net profit of HKD 35,201,000 for the six months ended June 30, 2019, reversing a net loss of HKD 22,543,000 in the same period last year[184] - The company's total assets as of June 30, 2019, were HKD 3,280,743,000, a decrease of 3.9% from HKD 3,414,467,000 at the end of 2018[21] - Shareholders' equity increased by 2.1% to HKD 1,367,899,000 from HKD 1,339,150,000 at the end of 2018[21] Cash Flow and Liquidity - The company reported a net cash flow from operating activities of HKD 106,835,000 for the six months ended June 30, 2019, compared to a net cash outflow of HKD 178,342,000 in the same period of 2018[49] - The company generated a net cash inflow from investing activities of HKD 62,543,000 for the six months ended June 30, 2019, while it had a net cash outflow of HKD 29,539,000 in the previous year[49] - Financing activities resulted in a net cash outflow of HKD 104,065,000 for the six months ended June 30, 2019, compared to a net cash inflow of HKD 106,981,000 in the same period of 2018[52] - The company reported a decrease in cash and cash equivalents of HKD 65,313,000 for the six months ended June 30, 2019, while the cash and cash equivalents at the beginning of the period were HKD 66,682,000[52] - Current liabilities decreased to HKD 1,672,585 from HKD 1,776,727 at the end of 2018, indicating improved liquidity[41] Segment Performance - The steel wire division generated a profit of HKD 82,396,000, while the brass materials division incurred a loss of HKD 4,350,000, resulting in a total segment profit of HKD 78,046,000[96] - The sales volume of steel cord increased significantly by 15.5% compared to the same period last year, despite the trade tensions between China and the United States[185] - Export sales volume experienced a substantial growth of 35.7% during the reporting period, reflecting the company's ability to adapt to customer needs[185] - Gross profit for the steel cord segment increased significantly from HKD 113,807,000 in the first half of last year to HKD 180,997,000 in the current period[185] - The steel cord division sold 98,482 tons of steel cord, an increase of 15.5% compared to 85,274 tons in the same period last year[188] - The division's revenue rose by 7.1% to HKD 1,094,905,000, up from HKD 1,022,758,000 in the previous year[191] - Gross profit for the steel cord division increased by 59.0% to HKD 180,997,000, with a gross margin improvement from 11.1% to 16.5%[192] - Total sales volume for the steel cord division included 65,182 tons for heavy truck tires, representing 66.2% of total sales, and a 16.5% increase from the previous year[190] - Export sales volume reached 21,250 tons, a 35.7% increase from 15,656 tons in the same period last year, accounting for 21.6% of total sales[191] - The copper and brass materials division reported a loss of HKD 4,350,000, up from a loss of HKD 84,000 in the previous year, due to the cessation of operations[196] Cost Management - Research and development expenses were HKD 36,854, down from HKD 40,220 in the same period last year, reflecting cost management efforts[34] - Employee benefits expenses, including directors' remuneration, decreased to HKD 107,053,000 in 2019 from HKD 113,675,000 in 2018, a decline of about 5.8%[108] - The depreciation expense for property, plant, and equipment was HKD 51,920,000 for the six months ended June 30, 2019, down from HKD 67,909,000 in 2018, a decrease of about 23.5%[108] - The net financial cost for the six months ended June 30, 2019, was HKD (33,011,000), slightly higher than HKD (32,658,000) in 2018, indicating a marginal increase of 1.1%[111] Debt and Financing - The company issued convertible bonds amounting to HKD 150,000,000, with a fair value loss recognized in profit or loss of HKD 1,763,000 for the period[88] - The actual interest rate used for the valuation of the convertible bonds was 11.15% as of June 30, 2019, down from 12.04% on the issuance date[91] - As of June 30, 2019, the group's bank loans amounted to HKD 682,450,000, a decrease of 22% from HKD 874,451,000 as of December 31, 2018[151] - The current portion of bank loans due within one year is HKD 473,271,000, down 22% from HKD 606,044,000 in the previous period[154] - Fixed-rate loans as of June 30, 2019, totaled HKD 399,814,000, a decrease of 31% from HKD 577,587,000 as of December 31, 2018[155] - The actual interest rates for fixed-rate loans range from 3.39% to 6.50%, while floating-rate loans range from 4.82% to 5.24% as of June 30, 2019[159] Regulatory and Compliance - The company is required to transfer at least 10% of its after-tax profits to a statutory reserve fund according to the regulations in the People's Republic of China until the reserve reaches 50% of the registered capital[46] - The adoption of HKFRS 16 resulted in the recognition of right-of-use assets and lease liabilities amounting to HKD 2,803,000 as of January 1, 2019[71] - The group has not experienced significant changes in accounting treatment for leases as a lessor[79] - The new standards and amendments expected to be adopted in the future are not anticipated to have a significant impact on the group's interim financial information[81] Management and Governance - The company made payments of HKD 480,000 in consultancy fees to Shougang Hong Kong Group during the reporting period, consistent with the previous year[176] - The company repaid loans amounting to HKD 33,428,000 to Shougang Hong Kong Group, an increase from HKD 14,344,000 in the same period last year[176] - The company’s management compensation for the six months ended June 30, 2019, was HKD 1,908,000, a decrease from HKD 3,512,000 in the same period last year[180]

Financial Performance - Revenue for the year ended December 31, 2018, was HK$2,254,170,000, representing a 6.7% increase from HK$2,113,258,000 in 2017[13] - Gross profit increased by 36.4% to HK$267,467,000 from HK$196,065,000 in the previous year[13] - EBITDA for 2018 was HK$179,293,000, a significant increase of 72.2% compared to HK$104,096,000 in 2017[13] - The company reported a loss for the year of HK$8,681,000, a substantial improvement of 87.3% from a loss of HK$68,518,000 in 2017[13] - Operating profit for the year was HK$89,404,000, compared to an operating loss of HK$44,979,000 in the previous year[88] - The Group recorded a net loss of HK$8,681,000, which is a decrease of HK$49,837,000 compared to the previous year's loss[88] - Loss per share narrowed to HK$0.45 cents from HK$3.56 cents in the previous year[89] - The Group reported a net loss of HK$8,681,000 for the year, significantly improved from a net loss of HK$68,518,000 in the previous year, marking an 87.3% reduction in losses[182] Assets and Liabilities - Total assets as of December 31, 2018, were HK$3,414,467,000, a slight decrease of 0.9% from HK$3,444,076,000 in 2017[14] - The Group's total assets decreased by 0.9% to HK$3,414,467,000, while total liabilities increased by 1.1% to HK$2,075,317,000[184] - The net current assets increased by 13.4% to HK$335,348,000, compared to HK$295,752,000 in 2017[184] Shareholder Information - The market capitalization as of the last trading day of 2018 was HK$361,505,305[19] - The closing share price on the last trading day of 2018 was HK$0.188[20] - Shareholders' equity decreased by 3.8% to HK$1,339,150,000 from HK$1,391,528,000 in the previous year[14] Segment Performance - The steel cord segment achieved a sales volume growth of 7.9% over last year, reflecting successful strategies to expand coverage among large-scale tyre manufacturers[123] - Revenue for the steel cord segment increased by 17.5% to HK$2,121,189,000, up from HK$1,805,523,000 last year[135] - The gross profit margin for the steel cord segment increased to 12.5% from 10.3% last year, indicating improved profitability[115] - Sales revenue for the steel cord segment grew significantly, with a gross profit of HK$265,397,000, representing a 42.3% increase from HK$186,543,000 last year[124] - The copper and brass products segment incurred an operating loss of HK$3,860,000, down from an operating profit of HK$2,127,000 last year, due to declining sales volume[116] Director Compensation and Experience - The company reported a monthly salary of HK$150,000 for the chairman under his service contract[46] - The deputy managing director is entitled to a monthly salary of HK$165,000[53] - Mr. Yip receives an annual director's fee of HK$240,000, determined by the company's performance and market conditions[67] - Mr. Liao's current annual director's fee is HK$150,000, also based on the company's performance and industry benchmarks[61] - Mr. Deng's monthly salary is HK$165,000, with a service contract that can be terminated with three months' notice[56] - Mr. Yip has served as an independent non-executive director since 1993 and chairs the audit and remuneration committees[66] - Mr. Law has over 30 years of extensive professional experience in auditing, accounting, corporate taxation, and financial advisory[71] Research and Development - Research and development expenses amounted to HK$76,941,000, a significant increase of 23.3% compared to HK$62,385,000 in 2017[149] - The Group aims to optimize its product mix and improve product quality to meet customer demands in 2019[97] - The Group will enhance product innovation and research and development efforts to maintain competitive advantages[97] Market Conditions - The production of new vehicles in the PRC decreased by 4.2% in 2018, marking the first negative annual growth in 30 years[122] - The PRC economy grew by 6.6% in 2018, the weakest pace since 1990, influenced by trade disputes and weakening domestic demand[107] Customer and Supplier Concentration - The revenue from the top five customers accounted for 48.3% of total revenue, with the largest customer contributing 16.5%[165][172] - Purchases from the five largest suppliers represented approximately 61.8% of total purchases, with the largest supplier accounting for 17.1%[173] Other Financial Information - Other income increased by 9.9% to HK$3,756,000, primarily due to an increase in government grants[137] - The Group recognized a full impairment of prepaid lease payments amounting to HK$72,523,000 for the year 2017[141] - A loss on disposal of fixed assets amounted to HK$569,000 due to the closure of the copper and brass products segment's factory[169]