Financial Performance - The company reported a revenue of HKD 961.1 million for the fiscal year ending March 31, 2020, down 38% from HKD 1.545 billion in 2019[30]. - The net loss attributable to shareholders was HKD 599 million, compared to a net loss of HKD 563 million in 2019[30]. - The decline in sales was primarily due to uncertainties from the ongoing US-China trade war and the impact of COVID-19 on production and delivery in February and March[30]. - The company recognized an additional impairment of HKD 24 million on inventory, in addition to a provision of HKD 153 million made in previous years[32]. - A further impairment provision of HKD 136 million was made on various properties, plant and equipment, right-of-use assets, intangible assets, and receivables due to business losses[32]. - The fair value loss on investment properties was approximately HKD 18 million[32]. - The company does not recommend the payment of a final dividend for the fiscal year ending March 31, 2020[32]. Supply Chain and Market Challenges - The ongoing trade war and global economic weakness have led retailers to adopt smaller, more frequent orders, impacting production costs and sales[35]. - The company faced significant disruptions in its supply chain due to COVID-19, affecting its ability to deliver products to customers[36]. - The company faced significant challenges due to COVID-19, leading to a decline in consumer demand and economic downturn, particularly affecting its audio-visual products[39]. Growth Strategy and Market Expansion - Despite the challenges, the company continued to implement a long-term growth strategy, focusing on the development and promotion of over 20 laptop models under the AVITA, Nexstgo, Venturer, and Vaio brands[40]. - The company entered new markets including Bangladesh, the Middle East, the UK, Ireland, the US, Africa, Australia, and Papua New Guinea during the review year[40]. - The company received positive feedback on new laptop models launched in Q1 of the 2020/2021 fiscal year, with expected shipments in Q2 projected to be at least double that of the entire previous fiscal year[46]. - The surge in demand for laptops is attributed to the increase in remote work and online learning due to the pandemic[46]. - The company is collaborating closely with large distributors and international chains to meet the anticipated growth in laptop business and is negotiating bulk discounts with suppliers to improve gross margins[49]. - The company is increasing its online sales efforts, aiming for online sales to become a major contributor to total revenue in the near future[49]. - The company is investing in automation to enhance production efficiency and product quality, with over 100 robots currently in operation[52]. - The company is developing a range of smart furniture that integrates audio and video elements, targeting tech-savvy consumers[52]. - The company remains confident in its long-term business prospects despite ongoing challenges from the pandemic and geopolitical tensions[55]. - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[62]. - The company is investing in R&D for new technologies, with an allocated budget of $10 million for the upcoming year[62]. - Market expansion efforts include entering two new international markets, aiming for a 20% increase in market share by the end of the next fiscal year[62]. - The company has completed a strategic acquisition of a competitor, which is expected to enhance its product offerings and increase revenue by approximately 30%[62]. Corporate Governance and Management - The management team has a combined experience of over 150 years in the industry, ensuring strong leadership and strategic direction[62]. - The company has maintained a high board meeting attendance rate, with all directors present for 100% of the meetings held in the past year[69]. - The compensation committee has reviewed and approved a performance-based bonus structure, aligning with market standards and company objectives[78]. - The company has adhered to corporate governance codes, ensuring compliance with all relevant regulations and standards[67]. - The chairman and CEO roles are held by the same individual, which the board believes is beneficial due to his extensive industry experience[67]. - The audit committee held two meetings during the year ended March 31, 2020, with all members attending both meetings, resulting in a 100% attendance rate[82]. - The company paid HKD 2,380,000 for audit-related services and HKD 233,000 for tax compliance services to its auditor for the year ended March 31, 2020[91]. - The nomination committee held three meetings during the year ended March 31, 2020, with all members attending at least two meetings, achieving a high attendance rate[85]. - The board confirmed that it is responsible for preparing the financial statements in accordance with Hong Kong Financial Reporting Standards, ensuring the use of appropriate accounting policies[89]. - The internal audit department reviewed the effectiveness of internal controls related to the sales cycle, inventory, payroll, and fixed asset management during the year[96]. - The company has no predetermined dividend payout ratio, and the board considers various factors, including financial condition and operating performance, when declaring dividends[98]. Environmental, Social, and Governance (ESG) Initiatives - The company’s ESG report covers its performance in environmental, social, and governance aspects during the year ended March 31, 2020, focusing on its operations in Hong Kong and China[107]. - The company maintains a commitment to good corporate governance to ensure effective resource allocation and protect shareholder interests[101]. - The board of directors participated in professional training related to business development and regulatory updates during the review year[97]. - The company has established a shareholder communication policy to facilitate inquiries and feedback from shareholders and potential investors[99]. - The company reported a direct greenhouse gas emission of 64,284 kg in 2020, a decrease of 46.6% from 120,770 kg in 2019[122]. - Indirect greenhouse gas emissions (Scope 2) were recorded at 4,867,154 kg in 2020, down from 5,359,698 kg in 2019, representing a reduction of 9.2%[122]. - Water consumption decreased to 151,000 kg in 2020 from 199,275 kg in 2019, marking a reduction of 24.2%[122]. - The company achieved a significant reduction in nitrogen oxides (NOx) emissions, which fell to 259,250 kg in 2020 from 571,580 kg in 2019, a decrease of 54.6%[122]. - The company maintained compliance with local environmental laws, with no significant incidents reported during the reporting period[113]. - The company has implemented a resource and energy-saving management guideline to enhance operational efficiency and reduce carbon emissions[127]. - The company has established a dedicated environmental management committee to oversee environmental protection efforts, ensuring adherence to ISO 14001:2015 standards[113]. - The company encourages recycling and reusing waste materials, with hazardous and non-hazardous waste managed by qualified collectors[119]. - The company has committed to a paperless office initiative to reduce resource consumption and promote sustainability[127]. - The company has not set specific targets for key performance indicators during the reporting period but aims to align with industry standards and government regulations[111]. - In 2020, electricity consumption decreased to 6,083,942 kWh from 6,699,623 kWh in 2019, representing a reduction of approximately 9.2%[131]. - Paper consumption dropped significantly from 3,580 kg in 2019 to 1,390 kg in 2020, a decrease of about 61.2%[131]. - Water usage decreased from 249,094 tons in 2019 to 188,789 tons in 2020, reflecting a reduction of approximately 24.1%[131]. - Fuel consumption for vehicles reduced from 47,828 liters in 2019 to 25,612 liters in 2020, a decrease of about 46.6%[131]. Workforce and Training - The total number of employees decreased from 1,296 in 2019 to 961 in 2020, a reduction of approximately 25.9%[141]. - The percentage of male employees increased slightly from 58.6% in 2019 to 59.0% in 2020, while female employees decreased from 41.4% to 41.0%[141]. - The average service years for administrative staff decreased from 11.8 years in 2019 to 11.2 years in 2020[145]. - The company maintained a 100% rate of long-term employees, with no temporary or part-time staff reported[141]. - Employee turnover was noted to be high due to rapid economic development in certain regions, but the company considers the turnover rate to be within industry norms[149]. - In 2020, the number of employees participating in training was 723, representing 75.2% of the total workforce, an increase from 72.2% in 2019[163]. - Total training hours for male employees decreased to 15,300 from 20,698 in 2019, while female employees' training hours decreased to 10,728 from 15,245[163]. - The average training hours per employee for both male and female employees was 36 hours in 2020, down from 38.4 hours in 2019[163]. - The company provided at least 32 hours of annual training for employees at the manufacturing facility[166]. - The company emphasizes continuous learning and encourages employees to obtain professional qualifications in relevant fields[166]. Supplier and Community Engagement - The company conducted annual assessments of suppliers' working conditions and social responsibilities to ensure alignment with corporate values[159]. - The company maintained a supplier base of approximately 300, primarily from China, Hong Kong, and Taiwan, with no significant changes in supplier locations[172]. - The company has not employed any child labor or forced labor during the reporting period[168]. - There were no major safety incidents or injuries reported during the reporting period, indicating a strong safety record[160]. - The company has a strict internal policy to comply with labor laws and regulations, monitoring recruitment and promotion processes closely[167]. - No significant customer complaints or compensation claims were received regarding the quality of products and services during the reporting period[176]. - The company has implemented strict guidelines to prevent the dishonest or inappropriate use of intellectual property, ensuring compliance with relevant laws and regulations[177]. - The company actively participates in community activities, including blood donation and youth volunteer activities, and has employed 20 individuals from the local community[185]. - The company has established a whistleblowing policy encouraging employees, suppliers, and stakeholders to report any misconduct, with no significant violations reported during the period[184]. - The company adheres to all relevant anti-corruption laws and regulations, including the Prevention of Bribery Ordinance and the Criminal Law of the People's Republic of China[183]. - The company has a clear policy for handling and protecting data privacy, which all employees must comply with[178]. - The company ensures that all sales and marketing activities comply with applicable laws and standards related to health and safety, advertising, labeling, and privacy[179]. - The company is committed to corporate social responsibility and seeks to enhance its community engagement through various initiatives[185]. - The company has established an audit committee to strengthen corporate governance and regularly reviews internal controls and compliance issues[183]. - The company has not reported any significant incidents of fraud, bribery, or money laundering during the reporting period[184].

Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 346.2 million, a decrease of 58.6% compared to HKD 836.1 million in the same period of 2018[3] - Gross loss for the period was HKD 89.9 million, compared to a gross loss of HKD 31.7 million in the previous year, indicating a significant decline in profitability[3] - Operating loss increased to HKD 208.5 million from HKD 181.7 million year-on-year, reflecting ongoing challenges in the business[3] - The net loss attributable to shareholders was HKD 216.8 million, compared to HKD 180.6 million in the same period last year, representing a 20% increase in losses[4] - The total comprehensive loss for the period was HKD 204.1 million, compared to HKD 131.9 million in the same period of 2018, indicating worsening financial health[6] - For the six months ended September 30, 2019, total revenue was HKD 462,113,000, a decrease of 44.7% compared to HKD 836,096,000 for the same period in 2018[46] - The company reported a net loss attributable to shareholders of HKD 216,786,000 for the six months ended September 30, 2019, compared to a loss of HKD 180,598,000 in 2018[54] - Basic loss per share was HKD 0.30, slightly improved from HKD 0.312 in the previous year[54] - Total other income for the six months was HKD 1,697,000, down 70.5% from HKD 5,767,000 in 2018[47] Assets and Liabilities - Total assets as of September 30, 2019, were HKD 1,381.9 million, up from HKD 1,310.1 million at the end of March 2019[8] - Inventory increased to HKD 651.3 million from HKD 480.2 million, indicating a 35.6% rise, which may suggest overstocking or declining sales[8] - Cash and cash equivalents decreased significantly to HKD 102.5 million from HKD 277.5 million, a decline of 63.0%[8] - Non-current assets decreased to HKD 645.1 million from HKD 416.8 million, reflecting changes in property and equipment valuations[8] - The total equity reserve decreased to HKD 1,233,095 thousand from HKD 1,257,744 thousand, reflecting a reduction of 1.9% due to the adjustments from the new accounting standards[32] - The group had cash and deposits of HKD 102 million as of September 30, 2019, with a net borrowing of HKD 256 million, compared to a net cash position of HKD 93 million as of March 31, 2019[100] - The total borrowings amounted to HKD 358,666 thousand, significantly higher than HKD 183,913 thousand in the previous period, reflecting an increase of about 95%[75] - The company’s current borrowings were HKD 301,200 thousand, compared to HKD 143,397 thousand, indicating a rise of approximately 109%[75] Cash Flow - Net cash used in operating activities for the six months ended September 30, 2019, was HKD (339,146) thousand, a decrease from HKD (571,134) thousand in the same period of 2018, representing a 40.5% improvement[15] - Net cash used in investing activities for the same period was HKD (10,627) thousand, down from HKD (34,509) thousand, indicating a 69.1% reduction[16] - Net cash generated from financing activities was HKD 174,754 thousand, compared to HKD 523,419 thousand in the previous year, reflecting a 66.7% decline[17] - The net decrease in cash and cash equivalents was HKD (175,019) thousand, compared to HKD (82,224) thousand in the prior year, showing a 113.3% increase in cash outflow[18] - Cash and cash equivalents at the beginning of the period were HKD 277,474 thousand, while at the end of the period, they decreased to HKD 102,455 thousand, a drop of 63.0%[19][20] Accounting and Reporting - The adoption of HKFRS 16 resulted in a recognition of lease liabilities amounting to HKD 302,918 thousand as of April 1, 2019, which includes current lease liabilities of HKD 27,076 thousand and non-current lease liabilities of HKD 275,842 thousand[37][38] - The company transitioned to recognizing lease liabilities and right-of-use assets starting April 1, 2019, impacting financial reporting[41] - The company has not made significant changes to its accounting policies except for the adoption of new standards effective from April 1, 2019, which did not have a major impact on the group[26] - The group has chosen not to reassess contracts for leases at the date of initial application, relying instead on previous assessments made under HKAS 17[30] Market and Business Environment - The decline in performance was primarily attributed to the ongoing US-China trade war, which significantly impacted the company's audio-visual business[82] - The group’s audio-visual business has been severely impacted by the adverse trade environment, leading to a significant decrease in revenue and gross margin due to increased tariffs on products[86] - The company faced challenges in passing on additional tariffs to retail customers, leading to increased costs that could not be transferred, affecting order acceptance[82] - The negative trade environment is expected to persist, prompting the group to continuously evaluate methods to reduce fixed costs and restructure as necessary[99] - The group is assessing new market opportunities while strengthening its presence in existing markets, particularly in response to the ongoing trade tensions[93] Product Development and Sales - As of September 30, 2019, the group launched 13 consumer and commercial laptops under the AVITA and Nexstgo brands, including flagship models introduced at COMPUTEX 2019[87] - Despite a growth in laptop sales units compared to the previous year, the growth rate was below expectations due to weak economic conditions in China and reduced consumer spending in key markets like Hong Kong and Taiwan[89] - The group plans to leverage its experience in audio-visual technology to develop higher value-added smart home products, with some products set to debut at the Consumer Electronics Show in January 2020[90] - The latest AVITA consumer laptops and Nexstgo B2B laptops will be showcased at the same exhibition, with a formal market launch expected in the last fiscal quarter of 2020[92] - The group has recently launched AVITA and VAIO laptops in the Middle East and is seeking distributors in Pakistan, Bangladesh, and Australia[98] - The group has expanded its distribution product line to six models under the Nexstgo brand, including newly launched models aimed at enhancing market share[87] Governance and Management - The company has adhered to corporate governance codes, except for the separation of the roles of Chairman and CEO, which are held by the same individual[112] - The audit committee has reviewed the accounting principles and practices adopted by the group, discussing internal controls and financial reporting matters, including the financial statements for the six months ended September 30, 2019[114] - The board of directors consists of four executive directors and three independent non-executive directors, ensuring a diverse governance structure[115] - Major shareholders included Mr. Liang Jianwen with 293 million shares (40.51%) and Shundean Investments Limited with 267.81 million shares (37.03%) as of September 30, 2019[108] Employment and Compensation - The group employed approximately 1,100 staff across Hong Kong, China, and Taiwan as of September 30, 2019, with compensation reviewed annually based on performance[102]

Financial Performance - The company reported a revenue of HKD 1.5 billion for the fiscal year ending March 31, 2019, down 26% from HKD 2.1 billion in 2018[45]. - The net loss attributable to shareholders was HKD 563 million, compared to a net loss of HKD 86 million in the previous year[45]. - The company reported a total revenue of HKD 1.2 billion for the fiscal year ending March 31, 2019, representing a year-on-year increase of 15%[88]. - The company has set a revenue guidance of HKD 1.5 billion for the next fiscal year, projecting a growth rate of 25%[88]. - New product development includes the launch of a next-generation laptop, expected to contribute an additional HKD 300 million in revenue[87]. Market Challenges - The decline in sales was partly due to a global shortage of processors used in laptops and tablets, impacting production[45]. - The company faced significant pressure on gross margins due to aggressive pricing strategies within the industry[45]. - The macroeconomic environment was described as one of the most challenging in decades, influenced by the US-China trade dispute[54]. - The total revenue from the RCA brand's Windows tablets significantly decreased due to global CPU shortages, impacting profitability[61]. Production and Development - The group launched 10 consumer and commercial laptops under the AVITA and Nexstgo brands, expanding its market presence in 10 major Asian cities including Hong Kong, Taiwan, and Singapore[56]. - The group plans to continue developing consumer and commercial laptops, with new products like the AVITA ADMIROR and Nexstgo PRIMUS NX301 launched at the Taipei International Computer Show[66]. - The production of laptops is expected to increase in the 2019/2020 fiscal year, leading to improved economies of scale in production efficiency and material costs[71]. - The group is investing in automation to control production costs and enhance flexibility, especially during peak production periods[61]. - The group is actively evaluating laptops equipped with 5G technology, graphics processors, and blockchain security for future product launches[66]. Corporate Governance - The board of directors held eight meetings during the fiscal year, with a 100% attendance rate from all members[94]. - The company has established a remuneration committee to review and approve the compensation policies for executives, ensuring alignment with market standards[101]. - The audit committee reviewed the financial statements for the year, confirming compliance with accounting principles and internal controls[106]. - The company has maintained compliance with the corporate governance code, with all independent directors confirming their independence[92]. - The Nomination Committee held one meeting during the year ending March 31, 2019, with a 100% attendance rate from its members[110]. Environmental Responsibility - The company reported direct greenhouse gas emissions of 120,770 kg and indirect emissions from fuel consumption of 5,359,698 kg CO2 equivalent[148]. - The total electricity consumption was 6,699,623 kWh, with water consumption at 249,094 tons and paper consumption at 3,580 kg[156]. - The company generated 2 tons of hazardous waste and 218 tons of non-hazardous waste during the reporting period[148]. - The company implemented energy-saving measures that resulted in an annual saving of 80,000 kWh by replacing old air compressors with new variable frequency models[155]. - The company has established an energy management center to monitor energy consumption in real-time, enhancing operational efficiency[155]. - The company aims to reduce carbon emissions by improving resource utilization across various business segments[152]. - The company encourages recycling and reusing waste wherever feasible, adhering strictly to internal waste management guidelines[143]. - The company has not faced any significant incidents of non-compliance with local environmental laws during the reporting period[139]. - The company uses bubble wrap instead of corrugated packaging to reduce material usage, contributing to sustainability efforts[155]. Employee Management - Total number of employees is 1,296, with 58.6% male and 41.4% female[166]. - Employee turnover rate is considered acceptable and aligns with industry standards, with no significant legal compliance issues reported[174]. - The minimum wage for employees was adjusted from RMB 1,510 to RMB 1,720 starting July 1, 2018, in compliance with local regulations[170]. - The company maintains a 100% long-term employment rate, with no temporary or part-time employees[166]. - The average service period for male and female employees is 8.3 years[166]. - The company provides health and safety training to ensure a safe working environment for employees[179]. - The factory is equipped with sufficient protective gear and equipment, including first aid supplies, helmets, gloves, goggles, fire extinguishers, ear protection, and masks[180]. - The company conducts regular safety inspections and provides annual health checks for designated workers, ensuring a low injury rate[185]. - During the reporting period, 936 employees participated in training programs, representing 72.2% of the total workforce[189]. - Male employees logged a total of 20,698 training hours, while female employees logged 15,245 hours, with an average of 38.4 hours per employee for both genders[189]. Supplier Management - The company has approximately 300 suppliers, primarily from China, Hong Kong, and Taiwan, with no significant changes in supplier locations[197]. - The company maintains long-term relationships with suppliers, emphasizing strict evaluations based on cost, quality, and delivery performance[197]. - The company has a robust supplier management program to ensure compliance with legal, social responsibility, and environmental standards[197]. - The company is committed to providing high-quality products and ensures compliance with safety and environmental standards during production[198].