Financial Performance - The Group's total revenue for FY2024 amounted to approximately HK$173.3 million, a significant increase from approximately HK$1.2 million in FY2023, due to the resumption of business operations[21] - Gross profit for FY2024 was approximately HK$54.2 million, compared to a gross profit of approximately HK$0.1 million in FY2023, reflecting the increase in revenue[24] - Total operating expenses for FY2024 were approximately HK$27.2 million, an increase of approximately 149.5% from approximately HK$10.9 million in FY2023, attributed to the resumption of operations and professional fees for capital reorganization[24] - Profit for FY2024 was approximately HK$114.6 million, a significant turnaround from a loss of approximately HK$14.2 million in FY2023, marking FY2024 as a milestone year for the Group[24] - The gross profit for the fiscal year 2024 was approximately HK$54.2 million, a significant increase from HK$0.1 million in fiscal year 2023, primarily due to increased revenue[25] - Total operating expenses for fiscal year 2024 were approximately HK$27.2 million, up 149.5% from approximately HK$10.9 million in fiscal year 2023, attributed to the resumption of business operations and professional fees from capital restructuring[25] - The profit for fiscal year 2024 was approximately HK$114.6 million, a turnaround from a loss of approximately HK$14.2 million in fiscal year 2023, marking a milestone year for the group's business recovery[25] Business Operations and Strategy - The group resumed trading of shares in November 2024 and completed a subscription in March 2025 with net proceeds of approximately HK$230 million, entering into a settlement deed for a debt of HK$196.6 million[27] - The company plans to leverage growing market demand in AI, robotics, new energy vehicles, and energy storage in 2025, focusing on high-quality power supply products and high-end battery R&D[28] - The group aims to become a high-quality battery solution provider with core technological competitiveness, continuing to invest in capacity building and R&D[28] - The resumption of market sales in the export market and mainland China for consumer appliances under the "Oregon Scientific" brand occurred in 2024[27] - The significant improvement in profitability indicates a recovery in business operations, with 2024 being a pivotal year for the group[25] - The company is committed to sustainable development through investment in high-end battery technology and capacity building[28] Financial Position and Liabilities - Trade receivables as of December 31, 2024, were approximately HK$70.4 million, up from HK$1.2 million in FY2023, with turnover days increasing to 75 days from 5 days[66][71] - As of December 31, 2024, the Group's bank balances and cash amounted to approximately HK$2.2 million, an increase from approximately HK$0.6 million in FY2023[67] - The Group recorded net current liabilities of approximately HK$229.9 million, a decrease of approximately HK$111.0 million from approximately HK$340.9 million in FY2023, due to the resumption of business operations and deconsolidation of subsidiaries[68] - The total outstanding borrowings as of December 31, 2024, were approximately HK$1.2 million, significantly down from approximately HK$59.5 million in FY2023[74] - The gearing ratio improved to approximately 244.6% as of December 31, 2024, compared to approximately 14,216.7% in FY2023, due to an increase in total assets to approximately HK$80.9 million[77] - The Group's total liabilities as of December 31, 2024, were approximately HK$309.5 million, down from approximately HK$342.7 million in FY2023[80] - The net liabilities value per share improved to approximately HK$8.8 cents loss per share from approximately HK$13.1 cents loss per share in FY2023[75] Corporate Governance and Board Composition - The Company is committed to high standards of corporate governance, having complied with all code provisions of the Corporate Governance Code, except for deviations noted[116] - The Board currently consists of six Directors, including one Executive Director, two Non-Executive Directors, and three Independent Non-Executive Directors[123] - The Company has adopted guidelines to clearly define the responsibilities of the Board and management, including strategic importance, corporate governance, and financial authorizations[145] - The Board meets regularly at least four times a year, with additional meetings scheduled as necessary[159] - The Independent Non-Executive Directors contribute significantly to Board Committees, providing independent judgment on corporate strategy and performance[149] - The Company ensures that all Independent Non-Executive Directors are independent and have provided annual confirmations of independence as required by the Listing Rules[151] - The Board has established a balanced structure, allowing free discussion and expression of views among members[153] Director Appointments and Changes - Ms. Chen appointed as independent non-executive director of Tianyun International Holdings Limited effective April 30, 2024[45] - Mr. Mak appointed as independent non-executive director on September 25, 2024, with extensive experience in financial management[48] - Dr. Lowe appointed as independent non-executive director on September 25, 2024, with a strong academic background and experience in political philosophy and international relations[51] - Ms. Chen has over 12 years of experience in executive management, investment, and corporate finance[41] - Mr. Mak has served as CFO for multiple companies, including Nutryfarm International Limited and Sinocloud Group Limited, enhancing financial oversight[49] - Dr. Lowe has published research findings in international academic journals, contributing to the company's intellectual capital[51] - The Board diversity policy aims to enhance performance quality by considering various aspects such as cultural background, experience, and gender[131] Employee and Remuneration Policies - The total staff cost for the year ended December 31, 2024, was approximately HK$3.2 million, compared to approximately HK$3.1 million for FY2023[106] - The Group had a total of 33 employees as of December 31, 2024, down from 50 employees in FY2023[106] - The Group's remuneration policy aims to provide market-rate compensation packages that reward individual performance and attract high-quality employees[111] - Fixed salaries and benefits are benchmarked at the median market level against comparable companies, while performance-related bonuses are linked to predefined performance targets[114] Legal and Compliance Matters - The Group recognized a provision of approximately HK$2,874,000 related to legal claims from former employees, which was derecognized following the deconsolidation of IDTSZ[95] - As of December 31, 2024, the Group had no material litigation or arbitration pending against it, and any potential legal liabilities are not expected to materially impact the financial position[96] - The Company has not arranged insurance cover for Directors against legal actions during FY2024 due to financial distress, but management believes potential claims can be effectively handled[118] Future Outlook - The Group anticipates a gradual improvement in market conditions and expects sustainable business operations in the long run[65][70] - The Group is optimistic about improving its net current liabilities position following the resumption of business operations[98]

Financial Performance - Revenue for the fiscal year 2024 was approximately HKD 173.3 million, a significant increase from HKD 1.2 million in fiscal year 2023, representing a growth of over 14,400%[5] - Gross profit for the fiscal year 2024 was approximately HKD 54.2 million, compared to HKD 0.1 million in fiscal year 2023, indicating a substantial improvement[5] - The net profit for fiscal year 2024 was approximately HKD 114.6 million, a turnaround from a loss of HKD 14.2 million in fiscal year 2023[5] - The company reported a basic and diluted earnings per share of HKD 264.51 for fiscal year 2024, a significant recovery from a loss per share of HKD (32.67) in fiscal year 2023[6] - The company recorded a profit of HKD 114,621,000 for the year ending December 31, 2024, after a loss in the previous year[8] - The company reported a pre-tax profit of HKD 114,621, a substantial recovery from a loss of HKD 14,158 in 2023[41] Operating Expenses and Liabilities - The total operating expenses for fiscal year 2024 were approximately HKD 27.2 million, up from HKD 10.9 million in fiscal year 2023, reflecting an increase of about 149%[5] - The company’s total liabilities decreased from HKD 59,534,000 in 2023 to HKD 1,217,000 in 2024, indicating a reduction of 97.95%[48] - The company has a current liability exceeding current assets by approximately HKD 229,941,000 as of December 31, 2024[13] - The total liabilities exceeded total assets by approximately HKD 228,610,000 as of December 31, 2024[13] Equity and Assets - Total assets less current liabilities for fiscal year 2024 were approximately HKD (228,138) thousand, compared to HKD (340,916) thousand in fiscal year 2023, showing an improvement[7] - The company's equity attributable to owners was approximately HKD (228,703) thousand in fiscal year 2024, compared to HKD (341,009) thousand in fiscal year 2023, indicating a reduction in losses[7] - The total assets as of December 31, 2024, were approximately HKD 80.9 million, compared to HKD 1.8 million in the fiscal year 2023, while total liabilities were approximately HKD 309.5 million, down from HKD 342.7 million[69] Cash Flow and Liquidity - The company has cash and bank balances at a low level of approximately HKD 2,182,000 as of December 31, 2024[13] - The group's bank balance and cash were maintained at a low level of approximately HKD 2.18 million as of December 31, 2024[86] - The company has taken measures to alleviate liquidity issues and improve financial conditions, including seeking financial support from investors[13] Dividends and Share Capital - The board of directors does not recommend the payment of dividends for fiscal year 2024, consistent with the previous fiscal year[5] - The company did not declare or recommend any dividends for both 2024 and 2023, maintaining a consistent policy[38] - Following a special shareholders' meeting on February 18, 2025, the company will execute a capital reorganization effective February 20, 2025, which includes a consolidation of every 60 existing shares into 1 consolidated share[55] Business Strategy and Market Position - The company has not disclosed any new product developments or market expansion strategies in the current report[5] - The company has launched its own online retail platform and established two new stores on overseas platforms to enhance market competitiveness[58] - The group continues to expand its product portfolio to meet new customer demands and enhance market competitiveness[19] Debt Restructuring and Financial Strategy - The company is negotiating with creditors to restructure existing debts and has reached agreements on settlement plans[13] - The company completed a debt restructuring and share subscription on March 13, 2025, as part of its financial strategy[59] - The company plans to issue new shares to potential investors, with net proceeds expected to be approximately HKD 230 million by March 2025[13] Legal and Compliance Matters - The company is involved in several minor lawsuits but does not expect any significant impact on its financial condition or performance from these cases[54] - The audit committee consists of three independent non-executive directors, responsible for reviewing and supervising the group's financial reporting processes[81] - The group is committed to enhancing its corporate governance practices to ensure compliance with the corporate governance code[77] Employee and Operational Metrics - Employee costs totaled HKD 3,536,000 in 2024, slightly up from HKD 3,457,000 in 2023, indicating a 2.28% increase[35] - As of December 31, 2024, the group employed 33 staff members, a decrease from 50 in the previous fiscal year[80]

Financial Performance - Turnover for the six months ended June 30, 2024, was approximately HK$51.1 million, compared to nil for the same period in 2023[4] - Gross profit for 1H2024 was approximately HK$17.4 million, with no gross profit reported in 1H2023[4] - Profit for the period was approximately HK$5.6 million, a significant recovery from a loss of approximately HK$6.8 million in 1H2023[4] - The company reported a total comprehensive income of HK$6.1 million for the period, compared to a loss of HK$6.9 million in the previous year[6] - Basic and diluted earnings per share for the period was HK$0.22, an improvement from a loss of HK$0.26 per share in 2023[7] - The Group reported a profit attributable to owners of the Company of HK$5,619,000 for the six months ended June 30, 2024, compared to a loss of HK$6,807,000 in the same period of 2023[54] Operating Expenses - Total operating expenses amounted to approximately HK$6.4 million, an increase from approximately HK$5.2 million in 1H2023[4] - Research expenses for the period were HK$19, while distribution and selling expenses were HK$22[6] - The Group's research expenses decreased by approximately 86.5%, while distribution and selling expenses dropped by approximately 66.2% in 1H2024[84] - General administrative expenses increased by approximately 28.9% as the Group resumed operations[84] Current Liabilities and Financial Position - Current liabilities increased significantly to HK$388,511,000 as of June 30, 2024, compared to HK$342,736,000 at the end of 2023[8] - Net current liabilities were reported at HK$335,716,000, slightly improved from HK$340,916,000 in the previous period[8] - The Group reported a net deficit of HK$334,791,000 as of June 30, 2024, compared to HK$340,916,000 at the end of 2023[8] - As of 30 June 2024, the Group's current liabilities exceeded current assets by approximately HK$335,716,000, and total liabilities exceeded total assets by approximately HK$334,791,000[22] - The Group's bank balances and cash were at a low level of approximately HK$587,000 as of 30 June 2024[22] Cash Flow and Operating Activities - Net cash from operating activities for the six months was HK$320,000, a decrease from HK$725,000 in the same period last year[11] - Cash and cash equivalents at the end of the period were HK$587,000, down from HK$616,000 in 2023[11] Corporate Governance and Management Changes - The company has appointed a new CEO, Cheung Yuk Ki, effective February 1, 2024, following the resignation of Zhu Yongning[2] - Zhu Yongning has resigned as an executive director effective February 1, 2024[94] - The roles of chairman and CEO were held by Zhu Yongning until his resignation, with efforts ongoing to separate these roles[105] - The company is actively seeking suitable candidates to fill the independent non-executive director vacancies in compliance with the relevant Listing Rules[111] Legal and Financial Challenges - The Company received a statutory demand from a creditor for HK$15,000,000, requiring payment within 3 weeks, or face a winding-up petition[14] - There is a material uncertainty regarding the Group's ability to continue as a going concern due to financial difficulties[23] - The Group is involved in several legal proceedings, which have not been settled due to insufficient funds[22] - The Group's management is currently attempting to reach a settlement agreement regarding the HK$2,874,000 compensation but has not yet succeeded[75] Strategic Initiatives and Market Expansion - The company is focused on enhancing its electronic product offerings and expanding its market presence[5] - The Group established its own online retail platform and opened two online stores on foreign platforms to enhance market awareness of the "Oregon Scientific" brand[84] - The Group is continuously expanding its product portfolio to meet new customer demands and enhance market competitiveness[84] - The Group is implementing cost control measures and seeking new business opportunities to enhance profitability and improve future cash flow[29] Shareholder Information - As of June 30, 2024, Zhu Yongning holds 753,997,995 shares, representing 29.00% of the issued share capital[94] - Jiangsu Hongtu High Technology Co., Ltd. holds 556,898,770 shares, accounting for 21.42% of the issued share capital[98] Compliance and Corporate Governance - The Company confirmed compliance with the Corporate Governance Code throughout the six months ended June 30, 2024, except for deviations from provisions C.2.1 and C.1.8[104] - The company aims to enhance its corporate governance practices to ensure compliance with the corporate governance code[107] - The Audit Committee currently comprises only one independent non-executive director, Mr. Xu Jinwen, which does not meet the minimum requirements under Listing Rule 3.21[113]

Financial Performance - Turnover for the six months ended June 30, 2023, was nil, compared to HK$2.2 million for the same period in 2022[5] - Gross profit was nil for 1H2023, while there was a gross loss of HK$11.0 million in 1H2022[5] - Total operating expenses decreased to HK$5.2 million in 1H2023 from HK$37.1 million in 1H2022, representing a reduction of approximately 86%[5] - Loss for the period amounted to HK$6.8 million, significantly improved from a loss of HK$49.9 million in 1H2022[5] - Loss before taxation for the period was HK$6.8 million, compared to HK$49.9 million in the previous year[7] - Total comprehensive loss for the period was HK$6.9 million, down from HK$37.99 million in 1H2022[7] - The company reported no revenue from sales during the period, indicating a complete halt in operations compared to the previous year[5] - Basic and diluted loss per share decreased to HK$0.26 from HK$1.92 year-over-year[8] - Total comprehensive loss for the six months ended June 30, 2023, was HK$6,874,000, a significant improvement from a loss of HK$37,991,000 in the same period of 2022[8] Cash Flow and Liabilities - Net cash generated from operating activities was HK$725,000, compared to a net cash used of HK$30,573,000 in the prior year[14] - Cash and cash equivalents at the end of the period increased to HK$616,000 from HK$2,647,000 at the end of June 2022[14] - Current liabilities totaled HK$335,053,000 as of June 30, 2023, slightly up from HK$330,856,000 at the end of 2022[9] - Net liabilities stood at HK$334,437,000, compared to HK$327,563,000 at the end of 2022[9] - The company’s equity attributable to owners decreased to HK$334,530,000 from HK$327,656,000 at the end of 2022[9] - As of June 30, 2023, the Group's current liabilities exceeded current assets by approximately HK$334,437,000, and total liabilities exceeded total assets by the same amount[30] - The Group recorded net current liabilities of approximately HK$334.4 million, an increase of approximately HK$6.8 million compared to FY2022[100] - The total outstanding amount of borrowings as of June 30, 2023, was approximately HK$56.9 million, slightly down from approximately HK$57.6 million in FY2022[100] Operational Status and Future Plans - The company is engaged in investment holdings and the design, development, manufacturing, sales, and marketing of various electronic products[4] - The Group is implementing cost control measures and seeking new business opportunities to enhance profitability and improve future cash flow[32] - The Group is negotiating with creditors to restructure existing liabilities and exploring alternative financing sources to strengthen its capital base[34] - The Group is expanding its product portfolio to meet new customer demands, having launched its own online retail platform and established two online stores on foreign platforms in December 2023[34] - The Group's operations are gradually resuming in the first quarter of 2024, focusing on the sales of electronic products under the "Oregon Scientific" trademark[88] - The Group established its own online retail platform and new online stores on Noon and Mercado Libre to enhance market awareness of the "Oregon Scientific" brand[88] - The Group secured confirmed orders exceeding HK$70 million, expected to be fulfilled in the third quarter of 2024[98] Legal and Governance Issues - The Company received a statutory demand from a creditor for HK$15,000,000, with a deadline of three weeks to pay, or face a winding-up petition[17] - The Group is subjected to several legal proceedings, with many unresolved due to insufficient funds[30] - There is significant uncertainty regarding the Group's ability to continue as a going concern[31] - The management is working closely with professional advisors to formulate a restructuring plan to address the overall indebtedness of the Company[17] - The Group has been involved in several litigations, but management believes that any potential legal liabilities will not have a material impact on the financial position or results of the Group[87] - The Company has complied with all provisions of the Corporate Governance Code, except for deviations from Code Provision C.2.1 and C.1.8[116] - The roles of chairman and CEO are currently held by Zhu Yongning, following the retirement of the previous chairman in June 2019[117] - No insurance cover for legal actions against Directors was arranged during 1H2023 due to budget constraints[118] Shareholder Information - As of June 30, 2023, Zhu Yongning holds 753,997,995 shares, representing 29.00% of the issued share capital[111] - Jiangsu Hongtu High Technology Co., Ltd. also holds 556,898,770 shares, accounting for 21.42% of the issued share capital[113] - The issued and fully paid ordinary shares as of June 30, 2023, were 2,599,993,088 shares, amounting to HK$259,999,000[70] Audit and Compliance - The Audit Committee, comprising one independent non-executive director, has reviewed the unaudited financial results for 1H2023[121] - The preparation of the Interim Financial Statements requires management to make judgments and estimates that may differ from actual results[20] - The Interim Financial Statements have been prepared in accordance with the applicable disclosure requirements and accounting standards[20]

Financial Performance - The Group's total revenue for FY2022 was approximately HK$2.2 million, a decrease of approximately 87.1% compared to FY2021's revenue of approximately HK$17.1 million due to the suspension of operations following the closure of the Shenzhen factory[5]. - Gross loss for FY2022 totaled approximately HK$3.0 million, compared to a gross profit of approximately HK$1.9 million in FY2021, primarily due to a write-off of approximately HK$3.7 million in inventory[6]. - The total loss for FY2022 was approximately HK$21.8 million, compared to HK$84.2 million in FY2021, indicating a significant reduction in losses[8]. - Loss for FY2022 decreased by approximately 74.1% to approximately HK$21.8 million, down from approximately HK$84.2 million in FY2021, attributed to cost control efforts[21]. - The Group's operations were suspended since March 5, 2022, leading to significant net operating cash outflow for the year ended December 31, 2022[195]. - The Group resumed operations in December 2023, returning to profitability for the six months ended June 30, 2024[196]. Operating Expenses and Cost Management - Total operating expenses for FY2022 amounted to approximately HK$23.5 million, a decrease of approximately 63.7% from FY2021's approximately HK$64.8 million, driven by significant reductions in research and distribution expenses[6]. - Research expenses decreased by approximately 92.8%, while distribution and selling expenses dropped by approximately 88.9% in FY2022[6]. - General administrative expenses were reduced by approximately 52.0% as the Company is undergoing a downsizing process[6]. - The charge of loss allowance on financial assets for FY2022 was approximately HK$2.0 million, a decrease from HK$8.8 million in FY2021[8]. - Losses from impairment for FY2022 were approximately HK$6.2 million, down from HK$11.8 million in FY2021[8]. Assets and Liabilities - As of December 31, 2022, the Group's total assets amounted to approximately HK$3.3 million, a drastic decrease from approximately HK$81.3 million in FY2021[23]. - Total liabilities as of December 31, 2022, were approximately HK$330.9 million, down from approximately HK$386.8 million in FY2021[23]. - The Group recorded net current liabilities of approximately HK$327.6 million, an increase of approximately HK$75.3 million from approximately HK$252.3 million in FY2021[24]. - The Group's gearing ratio increased to approximately 7,342.4% as of December 31, 2022, compared to approximately 321.9% in FY2021, due to the drastic decrease in total assets[23]. Corporate Governance and Management - The company has a strong focus on corporate governance with multiple committees including remuneration, nomination, and audit[17]. - The management team includes individuals with extensive backgrounds in finance, law, and investment, enhancing the company's strategic capabilities[16][17]. - The company emphasizes the importance of tax planning and risk management, as highlighted by the experience of its directors[16]. - The new appointments are expected to strengthen the company's governance and strategic direction moving forward[15][17]. - The Company has complied with all code provisions of the Corporate Governance Code, except for deviations from provisions C.2.1, C.1.6, and C.1.8[42]. Shareholder Engagement and Communication - The Company communicates with shareholders through annual reports, interim reports, and press releases, ensuring timely and clear information dissemination[93]. - The AGM serves as a forum for shareholders to exchange views with the Board, with key committee chairs available to answer questions[93]. - Shareholders can propose resolutions at general meetings, with proper procedures in place for submission and verification[95]. Environmental and Social Responsibility - The Group is committed to enhancing its environmental, social, and governance standards in accordance with the Listing Rules[101]. - The Group aims to guarantee product quality and delivery through regular visits and communication with customers[107]. - The Group's initiatives aim to foster a culture of energy and resource conservation among employees[117]. - The Group has established a workers' union to provide employees with a platform for communication and to ensure timely payment of salaries and benefits[107]. - The Group conducts annual environmental training for employees to enhance awareness and ensure compliance with local regulations regarding hazardous waste emissions[126]. Legal and Compliance Matters - The Group has been involved in several legal actions, with potential liabilities not expected to materially impact its financial position[34]. - The Group has filed for appeals regarding certain court judgements, with ongoing attempts to reach settlement agreements[32]. - The Group has established a whistle-blowing mechanism allowing employees, customers, and suppliers to report fraud and corruption anonymously[167]. Future Outlook and Strategic Plans - The Group secured confirmed orders exceeding HK$70 million, expected to be fulfilled in the third quarter of 2024[9]. - The market situation is expected to improve significantly as the effects of the trade war diminish[9]. - The Group is formulating a corporate rescue plan to address indebtedness and secure necessary funding for ongoing operations[198].

Financial Performance - Revenue for the six months ended June 30, 2024, was approximately HKD 51.1 million, compared to HKD 0 for the same period in 2023[2] - Gross profit for the same period was approximately HKD 17.4 million, with no gross profit reported in the first half of 2023[2] - Profit for the period was approximately HKD 5.6 million, a significant recovery from a loss of approximately HKD 6.8 million in the first half of 2023[2] - Basic and diluted earnings per share for the period were HKD 0.22, compared to a loss per share of HKD 0.26 in the same period last year[3] - Total comprehensive income for the period was approximately HKD 6.1 million, compared to a loss of approximately HKD 6.9 million in the first half of 2023[3] - Total operating expenses for the first half of 2024 were approximately HKD 6.4 million, an increase of about 23.1% compared to approximately HKD 5.2 million in the first half of 2023[31] - The company reported a profit of HKD 5,619,000 for the six months ended June 30, 2024, compared to a loss of HKD 6,807,000 in the same period last year[19] Assets and Liabilities - Non-current assets as of June 30, 2024, included right-of-use assets valued at HKD 1.579 million[4] - Current assets included cash and cash equivalents of approximately HKD 51.066 million as of June 30, 2024[4] - Current liabilities increased to approximately HKD 388.5 million from HKD 342.7 million at the end of 2023[4] - The company reported a cumulative loss of HKD 691,257,000 as of June 30, 2024, compared to HKD 682,718,000 as of January 1, 2024[6] - The company’s total equity attributable to owners decreased to HKD (334,884,000) as of June 30, 2024, from HKD (327,656,000) as of January 1, 2024[6] - As of June 30, 2024, the group's current liabilities exceeded current assets by approximately HKD 335,716,000[11] - Total liabilities exceeded total assets by approximately HKD 334,791,000 as of June 30, 2024[11] - Total assets as of June 30, 2024, were approximately HKD 54.4 million, a significant increase from approximately HKD 1.8 million in the fiscal year 2023[36] - Total liabilities as of June 30, 2024, were approximately HKD 389.2 million, compared to approximately HKD 342.7 million in the fiscal year 2023[36] - The debt-to-asset ratio as of June 30, 2024, was approximately 471.3%, a decrease from 14,216.7% in the fiscal year 2023[36] Cash Flow and Financing - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 320,000, compared to HKD 725,000 in the same period of 2023[7] - The company had a net cash outflow from financing activities of HKD 332,000 for the six months ended June 30, 2024[7] - As of June 30, 2024, the company's cash and cash equivalents decreased to HKD 587,000 from HKD 599,000 at the beginning of the period[7] - The group's cash balance was maintained at a low level of approximately HKD 587,000 as of June 30, 2024[11] - The group identified potential investors to provide ongoing financial support as necessary to ensure daily operations[12] - The group is actively exploring other financing sources, including seeking new investments and business opportunities to strengthen its capital base[12] - The group has implemented cost control measures to tighten operational expenses and improve future cash flow[12] Debt and Restructuring - The company is currently in discussions with creditors regarding a restructuring plan to address its overall debt issues[8] - A statutory demand for repayment of HKD 15,000,000 was issued to the company on March 19, 2024, which could lead to a winding-up petition if not addressed[8] - The group is negotiating with various creditors for debt restructuring and settlement plans[12] - The company has engaged in loan transfer agreements with various parties, indicating ongoing financial restructuring efforts[23] Corporate Governance and Compliance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with applicable disclosure requirements[9] - The company has committed to maintaining high standards of corporate governance, adhering to all principles and rules of the corporate governance code[38] - The company continues to review and enhance its corporate governance practices to ensure compliance[38] - The audit committee reviewed the group's unaudited financial performance for the first half of 2024[42] Revenue and Customer Information - Revenue from China reached HKD 47,692,000 for the six months ended June 30, 2024, with total revenue of HKD 51,084,000[16] - Major customers contributing over 10% of total revenue include Customer A with HKD 7,501,000, Customer B with HKD 7,276,000, and Customer C with HKD 5,334,000[17] - Revenue is recognized when control of goods is transferred to customers, typically upon delivery, with a normal credit term of up to 90 days[15] Employee and Operational Information - Total employee costs amounted to HKD 1,840,000 for the six months ended June 30, 2024, compared to HKD 1,375,000 in the previous year, reflecting a 34% increase[18] - As of June 30, 2024, the group employed 26 staff members, a decrease from 50 in the same period of 2023[40] Inventory and Accounts Receivable - Inventory balance as of June 30, 2024, was approximately HKD 1.1 million, up from zero on December 31, 2023[33] - Accounts receivable from third parties increased to HKD 81,934,000 as of June 30, 2024, up from HKD 34,440,000 as of December 31, 2023[20] - Accounts receivable balance as of June 30, 2024, was approximately HKD 48.7 million, compared to approximately HKD 1.2 million for the fiscal year 2023[33] - The company has implemented strict controls on accounts receivable to minimize credit risk, with a maximum credit period of 90 days granted to customers[21] Shareholder Information - As of December 31, 2023, the company has issued 2,599,993,088 shares with a total value of HKD 259,999,000[25] - The board does not recommend any dividend payment for the first half of 2024, consistent with the previous year[37] - Trading of the company's shares has been suspended since April 3, 2023, pending compliance with the exchange's resumption guidelines[44] Management and Directors - The company is led by Executive Director Ms. Zhang Yuqi[45] - Non-executive directors include Mr. Cui Xiaoxian, Ms. Wu Guoning, and Mr. Tiger Charles Chen[45] - Independent non-executive director is Mr. Xu Jinwen[45]

Revenue and Profitability - Revenue for the fiscal year ended December 31, 2023, was approximately HKD 1.2 million, a decrease of 45.5% compared to HKD 2.2 million in the fiscal year 2022[1] - Gross profit for the fiscal year was approximately HKD 0.1 million, recovering from a gross loss of HKD 3.0 million in the previous fiscal year[2] - The group reported a loss of approximately HKD 14,158,000 for the year ending December 31, 2023[6] - The loss for fiscal year 2023 decreased by approximately 34.9% to about HKD 14.2 million, compared to a loss of approximately HKD 21.8 million in fiscal year 2022, due to staff streamlining and reduced financing costs[34] - Basic and diluted loss per share for the fiscal year was HKD 0.54, compared to HKD 0.84 in the fiscal year 2022[2] Operating Expenses and Cost Management - Total operating expenses decreased to approximately HKD 10.9 million from HKD 23.5 million in the fiscal year 2022, representing a reduction of 53.7%[1] - Total employee costs for the year ended December 31, 2023, amounted to HKD 3,457,000, a significant decrease from HKD 14,874,000 in 2022, reflecting a reduction of approximately 76.8%[16] - The group is implementing cost control measures to enhance profitability and improve future cash flow from operations[6] Financial Position and Liabilities - Current liabilities totaled HKD 342.7 million, slightly increasing from HKD 330.9 million in the previous year[3] - As of December 31, 2023, the group's current liabilities exceeded current assets by approximately HKD 340,916,000, and total liabilities exceeded total assets by the same amount[6] - The total liabilities were approximately HKD 342.7 million, compared to approximately HKD 330.9 million in the fiscal year 2022[41] - The company reported short-term borrowings of HKD 41,494,000 in 2023, a slight decrease from HKD 42,704,000 in 2022, with accrued interest rising from HKD 14,937,000 to HKD 18,040,000[26] Cash and Liquidity - The company had cash and cash equivalents of HKD 599,000 as of December 31, 2023, compared to HKD 430,000 in the previous year[3] - Cash and bank balances were maintained at a low level of approximately HKD 599,000 as of December 31, 2023[6] - Cash and bank balances decreased significantly from HKD 3,293,000 in 2022 to HKD 599,000 in 2023, with restricted cash balances of HKD (2,863,000) in 2022 no longer present in 2023[23] Dividend and Shareholder Returns - The board of directors does not recommend the payment of a dividend for the fiscal year 2023, consistent with the previous fiscal year[1] - There was no dividend declared or recommended for the years ended December 31, 2023, and December 31, 2022[19] Restructuring and Future Plans - The company is in discussions with creditors regarding a restructuring plan to address overall debt issues[4] - A restructuring plan has been committed by a counterparty to reorganize a loan of approximately HKD 196,398,000, with no repayment required for the next twelve months unless the group secures funding from other sources[6] - The company is implementing a corporate rescue plan to alleviate debt and secure necessary funding for ongoing operations[59] Operational Developments - In December 2023, the group launched its own online retail platform and established two online stores on overseas platforms[6] - The group is actively re-establishing connections with potential customers and suppliers to restart operations, with gradual recovery expected in the first quarter of fiscal year 2024[36] - The company resumed operations in December 2023 and has returned to profitability as of June 30, 2024, with sales of "Oregon Scientific" electronic products[58] Legal and Compliance Issues - The company has been involved in several legal disputes and has not resolved most of these due to insufficient funds[53] - The independent auditor did not express an opinion on the financial statements due to the inability to obtain sufficient appropriate audit evidence[55] - The board of directors acknowledged the significant uncertainties regarding the company's ability to continue as a going concern[56] Market and Customer Insights - The group had no significant customers contributing over 10% of total revenue for the year ended December 31, 2023, compared to 100% in 2022[15] - The group has received over HKD 70 million in orders, expected to be completed and delivered in Q3 2024[32]

Financial Performance - Revenue for the first half of 2023 was zero, compared to HKD 2.2 million in the first half of 2022[2] - Gross loss for the first half of 2023 was zero, compared to a gross loss of approximately HKD 11.0 million in the first half of 2022[2] - Total operating expenses were approximately HKD 5.2 million, down from approximately HKD 37.1 million in the first half of 2022, representing a decrease of about 86%[2] - Loss for the period was approximately HKD 6.8 million, significantly reduced from a loss of approximately HKD 49.9 million in the first half of 2022, marking a decrease of about 86%[2] - The total comprehensive loss for the first half of 2023 was HKD 6.9 million, down from HKD 38.0 million in the first half of 2022[4] - Basic and diluted loss per share for the first half of 2023 was HKD 0.26, compared to HKD 1.92 in the first half of 2022[5] - The company reported a loss before tax of HKD 6,807,000 for the six months ended June 30, 2023, compared to a loss of HKD 49,888,000 for the same period in 2022, indicating a significant improvement[19] - The company recorded a net loss attributable to shareholders of HKD 6,807,000 for the first half of 2023, compared to a net loss of HKD 49,888,000 in the same period of 2022, showing a reduction in losses[19] Cash Flow and Liquidity - Cash and cash equivalents at the end of June 2023 were HKD 616,000, compared to HKD 2.6 million at the end of June 2022[9] - Net cash used in operating activities was HKD 725,000, a significant improvement from HKD 30.6 million used in the same period of 2022[9] - Net cash used in financing activities was HKD 539,000, compared to HKD 16.3 million in the first half of 2022[9] - The group's cash balance as of June 30, 2023, was approximately HKD 616,000, indicating a low liquidity level[13] - As of June 30, 2023, the bank balance and cash amounted to approximately HKD 0.6 million, down from HKD 3.3 million at the end of the previous fiscal year[34] Liabilities and Financial Position - As of June 30, 2023, the group's current liabilities exceeded current assets by approximately HKD 334,437,000[13] - The total liabilities of the group exceeded total assets by approximately HKD 334,437,000, with a loss of approximately HKD 6,807,000 during the period[13] - Total liabilities as of June 30, 2023, were approximately HKD 335.1 million, compared to HKD 330.9 million at the end of the previous fiscal year[37] - The asset-liability ratio as of June 30, 2023, was approximately 41,750.0%, significantly increased from 7,342.4% at the end of the previous fiscal year due to a substantial decrease in total assets[37] Dividends and Shareholder Returns - The company does not recommend the payment of dividends for the first half of 2023, consistent with no dividends paid in the first half of 2022[2] - No dividends are recommended for the first half of 2023, consistent with no dividends in the first half of 2022[38] Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance and has adhered to the relevant rules and principles[39] - The company will continue to review and enhance its corporate governance practices to ensure compliance[39] - The audit committee has reviewed the unaudited financial performance for the first half of 2023[41] - The company's shares have been suspended from trading since April 3, 2023, pending compliance with the exchange's resumption guidance[42] Business Operations and Future Plans - The group launched its own online retail platform in December 2023 and established two online stores on overseas platforms[14] - The group is actively exploring other financing sources, including seeking new investments and business opportunities to strengthen its capital base[13] - The group is negotiating with various creditors for debt restructuring and settlement plans[13] - The company is actively re-establishing connections with potential customers and suppliers to restart its business, with operations gradually resuming in the first quarter of 2024[31] - The group plans to gradually resume operations in Q1 2024, focusing on the "Oregon Scientific" brand electronic products[26] Legal and Regulatory Matters - The company received a statutory demand for repayment of HKD 15,000,000 from a creditor, requiring payment within three weeks or face liquidation proceedings[10] - The company submitted a petition to the High Court of Hong Kong for a creditors' meeting to consider a restructuring plan on September 13, 2024[10] - The company has a total of 2,599,993,088 ordinary shares in issue, with a par value of HKD 0.10 per share[21] - The company’s litigation provision remained unchanged at HKD 2,874,000 as of June 30, 2023, compared to HKD 3,888,000 at the beginning of the reporting period[23] - The company’s total liabilities related to litigation were estimated at approximately HKD 1,014,000 after a settlement agreement was approved[23] - The group was ordered to pay approximately HKD 2,874,000 due to a lawsuit related to employment contract violations, which has been recognized in the financial statements[25] Employee and Operational Changes - As of June 30, 2023, the group employed 50 staff members, a decrease from 100 in the same period of 2022[40] - The Shenzhen factory was closed on May 31, 2022, due to the impact of COVID-19, leading to a significant halt in operations[29]

Financial Performance - Revenue for the fiscal year ended December 31, 2022, was approximately HKD 2.2 million, a decrease of 87.1% compared to HKD 17.1 million in the fiscal year 2021[1]. - Gross loss for the year was approximately HKD 3.0 million, compared to a gross profit of HKD 1.9 million in the previous fiscal year[1]. - The company reported a loss of approximately HKD 21.8 million for the year, an improvement from a loss of HKD 84.2 million in the fiscal year 2021[1]. - Other income increased to HKD 18.8 million from HKD 6.6 million in the previous year, indicating a positive trend in non-operating revenue[2]. - The group reported revenue from external corporate customers of HKD 2,218,000 for the year ended December 31, 2022, compared to HKD 17,144,000 for the year ended December 31, 2021, indicating a significant decline[20]. - The group’s loss for the fiscal year 2022 was approximately HKD 21.8 million, a significant reduction of about 74.1% from HKD 84.2 million in the fiscal year 2021[40]. - The company reported a pre-tax loss of HKD 21,750,000 for 2022, compared to a loss of HKD 84,234,000 in 2021, indicating a significant improvement[26]. Operating Expenses and Cost Management - Total operating expenses were approximately HKD 23.5 million, significantly reduced from HKD 64.8 million in the fiscal year 2021[1]. - Research expenses decreased significantly to HKD 1.0 million from HKD 13.8 million in the previous fiscal year, reflecting cost-cutting measures[2]. - Total employee costs decreased to HKD 14,874,000 in 2022 from HKD 62,282,000 in 2021, reflecting a reduction of approximately 76%[6]. - The total impairment loss amounted to HKD 6,223,000 in 2022, down from HKD 11,832,000 in 2021, showing a reduction of about 47%[6]. - The group is implementing cost control measures to enhance profitability and improve future cash flow from operations[7]. Liquidity and Financial Position - The company’s current liabilities increased to HKD 330.9 million from HKD 322.5 million in the previous year, indicating a potential liquidity concern[3]. - As of December 31, 2022, the group's current liabilities exceeded current assets by approximately HKD 327,563,000[7]. - The total liabilities exceeded total assets by approximately HKD 327,563,000, with a loss of approximately HKD 21,750,000 for the year[7]. - The group recorded a net cash outflow from operations of approximately HKD 25,357,000 as of December 31, 2022[7]. - The bank balance and cash were maintained at a low level of approximately HKD 430,000 as of December 31, 2022[7]. - The group’s net current liabilities increased to approximately HKD 327.6 million, up from HKD 252.3 million in the fiscal year 2021, due to a decrease in current assets and an increase in current liabilities[44]. - As of December 31, 2022, total outstanding loans amounted to approximately HKD 576 million, a slight decrease from HKD 580 million in the previous fiscal year[45]. Debt and Restructuring Efforts - The company is currently in discussions with creditors regarding a restructuring plan to address its overall debt issues[5]. - The group continues to negotiate with creditors to restructure existing debts and reach settlement agreements[7]. - The company is implementing a corporate rescue plan to alleviate debt and secure necessary funding for continued operations[65]. - Several non-core subsidiaries have ceased operations, leading to legal actions regarding unpaid debts, which the company plans to address through liquidation[66]. Dividend and Shareholder Information - The board of directors does not recommend the payment of dividends for the fiscal year 2022, consistent with the previous fiscal year[1]. - The company did not declare or recommend any dividends for the years ending December 31, 2022, and 2021[25]. - The average number of ordinary shares used to calculate basic loss per share remained constant at 2,599,993,088 for both years[26]. Business Operations and Future Outlook - The group launched its own online retail platform in December 2023 and established two online stores on overseas platforms[7]. - The company plans to gradually resume operations in Q1 2024, focusing on the "Oregon Scientific" brand electronic products[38]. - The company has received over HKD 70 million in orders expected to be completed and delivered in Q3 2024[38]. - The group is actively re-establishing connections with potential customers and suppliers to restart its business operations, with gradual recovery expected in the first quarter of 2024[42]. Compliance and Regulatory Matters - The company has adopted a securities trading code for directors, ensuring compliance with the standards set forth by the listing rules[50]. - Trading of the company's shares has been suspended since April 3, 2023, pending compliance with the stock exchange's resumption guidelines[69]. Changes in Accounting Standards - The group has adopted the revised Hong Kong Financial Reporting Standard No. 16, which allows tenants to account for COVID-19 related rent concessions as if they are not lease modifications, applicable to lease payments due on or before June 30, 2022[10]. - The revised Hong Kong Accounting Standard No. 16 clarifies the accounting treatment for proceeds from the sale of items produced during the testing period before intended use, confirming that such proceeds and costs should be recognized in profit or loss[11]. - The adoption of the revised standards is not expected to have a significant impact on the consolidated financial statements of the group[10][11][12][13][14][15].

Impairment Losses - The company reported an impairment of HKD 8.9 million for right-of-use assets and HKD 8.6 million for finance lease receivables as of December 31, 2021[3]. - The company recognized an investment property impairment loss of approximately HKD 1 million, right-of-use asset impairment loss of HKD 8.9 million, and finance lease receivables impairment loss of HKD 8.6 million due to shortened lease agreements[9]. - The company estimates that the recoverable amount of future lease receivables is zero, leading to an impairment loss of HKD 8.6 million[11]. - The company believes that the impairment assessment results are appropriately reflected in the financial statements published on May 31, 2022[11]. - The board confirmed that the additional information provided is solely for the purpose of supplementing the impairment of right-of-use assets and the impairment of finance lease receivables for the year 2021, and does not affect other information contained in the 2021 annual report[12]. - All other information in the 2021 annual report remains unchanged[12]. Rental Obligations - The company has not paid any rental payments to the landlord since August 2021, leading to overdue rental claims of approximately RMB 2 million per month[4]. - A memorandum of understanding was signed on May 31, 2022, to terminate the head lease agreement and relieve the company from overdue rental obligations[6]. Lease Agreements - The lease agreements have a term of two years, starting from February 1, 2021, and expiring on January 31, 2023[4]. - The company aims to sublet idle leased assets to minimize operational cost burdens[8]. Impact of COVID-19 - The company has been impacted by COVID-19 restrictions, which affected negotiations with the landlord[6]. Company Leadership - The executive director is Mr. Zhu Yongning, who serves as the Chief Executive Officer[12]. - The non-executive director is Mr. Cui Xiao[12]. - The independent non-executive directors include Mr. Zhou Meilin, Mr. Xu Jinwen, and Mr. Zhou Rui[12].