Financial Performance - The company reported sales revenue of approximately HKD 75.5 million for the fiscal year ending December 31, 2024, a decrease of 9.2% compared to the previous year[4]. - The net loss for the period was HKD 47.4 million, significantly impacted by strategic investments in core R&D, which totaled approximately HKD 55.8 million[8]. - The total shareholder equity as of December 31, 2024, is approximately HKD 2,727,382,000, an increase from HKD 1,493,847,000 in 2023[26]. - The total assets as of December 31, 2024, amount to approximately HKD 3,201,631,000, compared to HKD 1,828,250,000 in 2023[26]. - The total liabilities as of December 31, 2024, are approximately HKD 474,249,000, up from HKD 334,403,000 in 2023[26]. - The bank borrowings as of December 31, 2024, total approximately HKD 90,493,000, down from HKD 115,499,000 in 2023[27]. - The group reported a post-tax fair value gain of HKD 1,329.8 million for the year, compared to a post-tax fair value loss of HKD 97.9 million in the fiscal year 2023[35]. - The group's gross profit margin for the year ended December 31, 2024, was 27.5%, an increase from 17.7% in 2023, primarily due to higher sales of metal components[130]. - The debt-to-equity ratio as of December 31, 2024, was 0.03, down from 0.08 in 2023, indicating a strong capital position[131]. Legal Matters - The company is required to repay RMB 103.5 million plus legal fees due to a court ruling against it, which overturned a previous favorable judgment[11]. - The company has filed for a final appeal with the Guangdong High People's Court regarding the unfavorable ruling, but the court has not yet decided whether to accept the appeal[11]. - The company has not made provisions for the legal claim as per HKAS 37, based on legal advice suggesting a high likelihood of a successful appeal[11]. - The company anticipates a retrial judgment by December 31, 2025, which could clarify uncertainties surrounding the litigation[19]. - The auditors are unable to determine when the litigation will be resolved or when a final judgment will be made[20]. Operational Strategy - The company aims to enhance operational efficiency in its high-end tooling business through optimized smart manufacturing processes and precise R&D based on customer needs[5]. - The company has established high-end tooling as a strategic growth area, aiming to increase market penetration through differentiated competition strategies[5]. - The company plans to accelerate market expansion in the smart firefighting helmet segment through dedicated development plans and resource allocation[6]. - Revenue from AI coverage systems and related products decreased, prompting the company to allocate additional resources to enhance competitiveness in commercial environments[8]. - The company is focusing on building a robust data platform and improving AI algorithms to provide innovative solutions that meet regulatory standards[5]. Employee and Workforce - The workforce consists of 179 employees and consultants, with competitive compensation packages including stock options and performance bonuses[7]. - The group employed approximately 179 employees as of December 31, 2024, an increase from 128 employees in 2023, and offers competitive compensation packages[38]. - Employee composition shows a significant increase in male employees to 92% in 2024 from 76% in 2023, while female employees decreased to 8% from 24%[88]. - The employee turnover rate rose to 53% in 2024 from 46% in 2023, with male turnover increasing to 56% from 20% and female turnover rising to 23% from 5%[88]. - The company maintained a 100% training participation rate for all employee categories in 2024, consistent with 2023[94]. Environmental, Social, and Governance (ESG) - The company aims to reduce air pollutant emissions by 10% by 2025, following an increase in emissions due to more operational vehicle trips in 2024[58]. - The company has established an Environmental and Waste Policy to continuously improve procedures and processes to minimize operational impacts on the environment[56]. - The company strictly complies with local regulations, including the Air Pollution Control Ordinance and the Environmental Protection Law of the People's Republic of China[57]. - The company has implemented monitoring procedures for air pollutants, waste, wastewater, and noise emissions[57]. - The board plays a key role in overseeing ESG issues and assessing related risks to operations[49]. - An ESG working group has been established to review and supervise ESG processes and risk management[52]. - The company engages stakeholders annually to assess the significance of ESG issues and prioritize them accordingly[53]. - The company emphasizes transparency and accountability through the establishment of the ESG working group, which includes independent directors[50]. Research and Development - The company submitted 828 patent applications, showcasing its commitment to innovation and product responsibility[99]. - The company continues to invest heavily in research and development for future technologies to maintain its business leadership position[138]. - The company is focused on advanced technology research and has participated in several key national projects, including the National High Technology Research and Development Program (863 Program)[114]. - The company is actively involved in the development of new technologies and products in the field of metamaterials and innovative space technology[115]. Shareholder and Corporate Governance - The company has undergone a share consolidation, merging every ten shares of HKD 0.01 into one share of HKD 0.10, effective January 31, 2024[149]. - The independent non-executive directors confirmed that all transactions conducted during the year were in the ordinary course of business and on normal commercial terms[168]. - The company has established a compensation policy based on employee performance, qualifications, and capabilities[163]. - The company has made arrangements for directors and senior management to purchase appropriate liability insurance[162]. - Major shareholder Huang Weizi holds 261,850,000 shares, representing approximately 42.53% of the total issued shares[175]. Community Engagement - The company has established a community investment policy to encourage employee participation in community activities[107]. - The company actively engages in promoting science, technology, and engineering education through community outreach and employee involvement[108].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of HKD 75,514,000, a decrease of 9.8% compared to HKD 83,139,000 in the previous year[3]. - The gross profit for the year was HKD 20,743,000, representing a significant increase of 41.4% from HKD 14,676,000 in the prior year[3]. - The company recorded a net loss attributable to shareholders of HKD 47,427,000, compared to a loss of HKD 7,295,000 in the previous year, reflecting increased operational challenges[4]. - Revenue from wearable smart helmet sales decreased to HKD 2,047,000 in 2024 from HKD 3,287,000 in 2023, a decline of 37.7%[16]. - Revenue from metal component products increased significantly to HKD 62,972,000 in 2024 from HKD 22,693,000 in 2023, representing a growth of 177.5%[16]. - Total revenue from AI coverage systems and related products dropped to HKD 10,321,000 in 2024 from HKD 56,526,000 in 2023, a decrease of 81.7%[16]. - The group recorded a loss of HKD 47,427,000 and HKD 7,295,000 for the years ending December 31, 2024, and December 31, 2023, respectively[10]. - The company reported a pre-tax loss of HKD 44,344,000 in 2024 compared to a loss of HKD 7,295,000 in 2023, indicating a worsening financial position[26]. - The net loss for the period was HKD 47.4 million, significantly influenced by strategic investments in core R&D capabilities[46]. - The group recorded sales revenue of approximately HKD 75.5 million for the year ending December 31, 2024, a slight decrease of 9.2% compared to the previous year[46]. Assets and Equity - Total assets increased to HKD 3,201,631,000 from HKD 1,828,250,000, showcasing significant growth in the company's asset base[5]. - The company's total equity rose to HKD 2,727,382,000, up from HKD 1,493,847,000, indicating improved financial stability[6]. - The fair value of listed equity securities increased significantly to HKD 2,264,752,000 in 2024 from HKD 724,119,000 in 2023[35]. - The total liabilities were approximately HKD 474,249,000, an increase of 42% from HKD 334,403,000 in 2023[61]. - The group had bank borrowings totaling approximately HKD 90,493,000, down 21.7% from HKD 115,499,000 in 2023[62]. - As of December 31, 2024, the total equity of the group was approximately HKD 2,727,382,000, an increase of 82.5% from HKD 1,493,847,000 in 2023[61]. Expenses and Investments - Research and development expenses surged to HKD 55,804,000, up from HKD 6,656,000, indicating a focus on innovation and product development[3]. - Employee benefits expenses rose to HKD 43,250,000 in 2024 from HKD 23,589,000 in 2023, an increase of 83.3%[23]. - The company has invested in a joint venture, resulting in a share of losses amounting to HKD 353,000, which was not present in the previous year[3]. - The company has prepaid a subscription deposit of HKD 49.3 million for the acquisition of additional equity in Zhongchengxin[30]. Legal and Governance - The maximum risk exposure related to ongoing litigation is RMB 103.5 million, plus legal fees and interest[10]. - A legal dispute regarding a sales contract with a former customer resulted in a favorable court ruling, with the customer ordered to repay RMB 44 million, although the customer has appealed[45]. - The group is involved in a legal dispute regarding a sales contract, with a court ruling requiring the group to repay RMB 103.5 million plus legal fees[53]. - The group has submitted a final appeal to the Guangdong High People's Court regarding the aforementioned legal ruling[54]. - The company has adopted sound corporate governance principles to enhance shareholder value and protect shareholder interests[75]. - The audit committee, composed of three independent non-executive directors, reviewed the group's audited performance and expressed satisfaction with internal control procedures and financial reporting disclosures[79]. Market and Strategic Focus - The company aims to expand its market presence through innovative technology solutions and product development, as indicated in its strategic focus[7]. - The group aims to strengthen its core business expansion through differentiated competitive strategies, focusing on market penetration in high-end tooling and AI solutions[47]. - The group has successfully upgraded its smart police helmet product, achieving recognition from customer authorities for multi-scenario customized solutions[48]. - The smart firefighting helmet has gained initial commercial orders, with a dedicated expansion plan in place to enhance market presence[48]. Shareholder Information - No dividends were declared or proposed for the year ended December 31, 2024, consistent with 2023[29]. - The company completed a share consolidation, merging every ten shares of HKD 0.01 into one share of HKD 0.10, effective January 31, 2024[58]. - As of December 31, 2024, the total issued ordinary shares amounted to 615,692,886 shares[59]. - The company will provide its annual report to shareholders at an appropriate time, which will also be available on the company's and the stock exchange's websites[81].

Financial Performance - The company recorded sales revenue of approximately HKD 32.0 million for the six months ended June 30, 2024, a slight decrease of 4.3% compared to the same period last year[2]. - The net loss for the period was approximately HKD 5.2 million, a reduction of 42.6% year-on-year[2]. - The gross profit for the same period was HKD 7,539 thousand, representing a significant increase of 61.5% compared to HKD 4,673 thousand in 2023[35]. - The operating loss narrowed to HKD 2,803 thousand from HKD 10,078 thousand year-over-year, indicating improved operational efficiency[35]. - The net loss for the period was HKD 5,226 thousand, a reduction from HKD 9,099 thousand in the previous year, reflecting a 42.5% improvement[36]. - The company reported a significant increase in financial income to HKD 5,292 thousand from HKD 1,093 thousand, marking a rise of 384.4%[35]. - For the six months ended June 30, 2024, the total comprehensive loss amounted to HKD 9,099,000, with a total equity of HKD 1,559,881,000[40]. - The company reported a loss of HKD 9,099,000 for the period, with a cumulative loss of HKD 504,231,000[41]. - The company reported a basic and diluted loss per share of HKD 5,226 for the six months ended June 30, 2024, compared to a loss of HKD 9,099 for the same period in 2023[64]. Assets and Liabilities - As of June 30, 2024, the total shareholder equity of the group was approximately HKD 1,560 million, with total assets valued at HKD 1,831 million and total liabilities of HKD 272 million[8]. - The company's bank and cash balance totaled HKD 132.9 million as of June 30, 2024, a decrease of HKD 125.2 million from December 31, 2023[7]. - The total bank borrowings of the group as of June 30, 2024, were approximately HKD 102.0 million, compared to HKD 115.5 million as of December 31, 2023[8]. - The company's total equity increased to HKD 1,559,881 thousand from HKD 1,493,847 thousand, showing a growth of 4.4%[38]. - The company's non-current assets as of June 30, 2024, were valued at HKD 611,400,000, down from HKD 653,756,000 as of December 31, 2023[58]. - The company’s total assets as of June 30, 2024, were not explicitly stated but can be inferred from the various asset categories reported[71]. Share Capital and Dividends - The company will not declare any interim dividend for the period, consistent with the previous year[6]. - As of June 30, 2024, the company had issued 615,692,886 ordinary shares following a share consolidation effective January 31, 2024[7]. - The total issued and paid-up ordinary shares as of June 30, 2024, were 615,692,886, reflecting a consolidation of shares that took effect on January 31, 2024[84]. - Dr. Liu Ruopeng holds 261,850,000 shares, representing approximately 42.53% of the total issued shares[23]. - New Horizon Communication holds 201,013,795 shares, accounting for approximately 32.65% of the total issued shares[23]. - Major shareholders include Huang Weizi, who holds 261,850,000 shares, also representing approximately 42.53%[23]. - Central Faith International Ltd. holds 97,298,101 shares, which is about 15.80% of the total issued shares[24]. Corporate Governance - The company emphasizes high standards of corporate governance to enhance shareholder value and protect shareholder interests[26]. - The board of directors has confirmed compliance with the trading code for directors throughout the reporting period[27]. - The company has adopted sound corporate governance principles, focusing on effective internal controls and accountability to all shareholders[26]. - The company has not granted any further stock options since July 31, 2022, due to the termination of the stock option grant rights on that date[20]. - No stock options were granted, exercised, or forfeited during the reporting period, apart from the disclosures mentioned[20]. Operational Developments - The company has strengthened its core business in high-end tooling and has developed a production capacity for mass manufacturing[3]. - The company is focusing on the development of smart police helmets and has received positive feedback from local public security departments[4]. - The company is primarily engaged in the research and development of artificial intelligence technologies and related innovative products[43]. Cash Flow and Investments - The cash flow from operating activities showed a net outflow of HKD 95,545,000, compared to a net outflow of HKD 26,121,000 for the same period in 2023[42]. - The total cash outflow from investing activities was HKD 18,791,000, significantly lower than the cash inflow of HKD 184,342,000 in the previous year[42]. - As of June 30, 2024, the cash and cash equivalents balance decreased to HKD 132,907,000 from HKD 321,129,000 a year earlier[42]. - The company has committed capital expenditures of HKD 24,922,000 as of June 30, 2024, compared to HKD 44,137,000 as of December 31, 2023, indicating a reduction of approximately 43.5%[93]. - The company has invested HKD 49,329,000 in an associate company, Zhong Cheng Xin, acquiring a 30% stake, with a total investment of HKD 45,000,000 in cash[79]. Financial Risks - The company faced various financial risks, including market risk, credit risk, and liquidity risk, which may impact future performance[52]. - The group has not entered into any foreign exchange risk hedging instruments but will monitor exchange rate fluctuations closely[9]. Other Financial Information - The company recognized other income of HKD 1,534,000 for the six months ended June 30, 2024, compared to HKD 892,000 in the same period of 2023[59]. - The company received government grants totaling HKD 39,000 during the six months ended June 30, 2024, compared to HKD 58,000 in the previous year[59]. - The income tax expense for the six months ended June 30, 2024, included a corporate income tax of HKD 7,568 in China, with a tax rate of 25% applicable to most subsidiaries[10]. - The company has not adopted any new accounting standards that would have a significant impact on its financial position and performance[47]. - The company is currently evaluating the impact of new accounting standards that will take effect in 2024, but has not yet reached a conclusion on their effects[50].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 32,028,000, compared to HKD 33,461,000 for the same period in 2023, representing a decrease of 4.3%[3] - Gross profit increased to HKD 7,539,000, up from HKD 4,673,000 in the previous year, marking a growth of 61.1%[3] - Operating loss narrowed to HKD 2,803,000 from HKD 10,078,000, indicating an improvement of 72.1%[3] - Net loss for the period was HKD 5,226,000, compared to HKD 9,099,000 in the same period last year, reflecting a reduction of 42.5%[3] - Other income for the six months ended June 30, 2024, totaled HKD 1,534,000, an increase of 72.2% from HKD 892,000 in 2023[22] - Net foreign exchange gain for the six months ended June 30, 2024, was HKD 453,000, a significant improvement from a loss of HKD 2,432,000 in 2023[23] - Operating loss for the six months ended June 30, 2024, was HKD 5,226,000, an improvement from a loss of HKD 9,099,000 in 2023[28] - The company reported a net gain from the sale of investment properties amounting to HKD 11,809,000 for the six months ended June 30, 2024[23] - The net loss for the period was approximately HKD 5.2 million, narrowing by 42.6% year-on-year[43] - The company confirmed a related gain of approximately HKD 11.8 million from the sale of investment properties during the period[43] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 1,831,480,000, slightly up from HKD 1,828,250,000 at the end of 2023[6] - Cash and cash equivalents decreased to HKD 132,907,000 from HKD 258,065,000, a decline of 48.7%[6] - The fair value of financial assets as of June 30, 2024, was HKD 835,065,000, compared to HKD 729,600,000 as of December 31, 2023, reflecting an increase[16] - The company’s total assets related to trade and other receivables amount to HKD 185,369 as of June 30, 2024, compared to HKD 185,977 as of December 31, 2023[32] - As of June 30, 2024, total bank borrowings amounted to HKD 102.039 million, down from HKD 115.499 million as of December 31, 2023[39] - Trade payables decreased to HKD 34.637 million as of June 30, 2024, compared to HKD 54.724 million as of December 31, 2023[40] - The group’s total liabilities were approximately HKD 272 million, a decrease from HKD 334 million as of December 31, 2023[50] Equity and Shareholder Information - The company’s equity increased to HKD 1,559,881,000 from HKD 1,493,847,000, showing a growth of 4.4%[6] - As of June 30, 2024, the total shareholder equity was approximately HKD 1,560 million, an increase from HKD 1,494 million as of December 31, 2023[50] - The weighted average number of ordinary shares for the calculation of basic and diluted loss per share was 615,693,000 for both 2024 and 2023[29] - The group has implemented a share consolidation, merging every ten shares of HKD 0.01 par value into one share of HKD 0.10 par value, effective January 31, 2024[49] Revenue Breakdown - For the six months ended June 30, 2024, the revenue from the sale of AI coverage systems and related products was HKD 2,506,000, compared to HKD 32,183,000 for the same period in 2023, representing a significant decline[19]. - Revenue from the sale of wearable smart helmets was HKD 256,000, down from HKD 399,000 in the previous year[19]. - Revenue from the sale of metal components was HKD 29,266,000, a decrease from HKD 879,000 in the prior year[19]. - Revenue from external customers in China for the six months ended June 30, 2024, was HKD 32,028,000, a decrease of 4.3% compared to HKD 33,461,000 in 2023[21] - Total revenue for the six months ended June 30, 2024, was HKD 32,028,000, compared to HKD 33,461,000 for the same period in 2023, indicating a slight decline[19]. Research and Development - The company is engaged in the research and development of artificial intelligence technologies and related products, focusing on innovation in various verticals[7] - The company is optimizing artificial intelligence algorithms and big data platforms based on industry client feedback to provide integrated solutions[44] - The company plans to further expand its applications in public safety and industrial production, focusing on upgrading existing products and solutions[44] - The group has developed and optimized smart police helmets, receiving recognition from local public security departments for meeting various customized needs[45] - The smart fire helmets have been positively reviewed by multiple fire units after on-site product testing, indicating strong future potential for this product line[45] Financial Risks and Governance - The group faces various financial risks, including market risk (currency and interest rate risk), credit risk, and liquidity risk[14]. - The group has not adopted any new accounting standards that would have a significant impact on its financial position and performance during the reporting period[11]. - Management is currently assessing the impact of new accounting standards that will become effective in the future, but no conclusions have been reached yet[12]. - The financial reporting team is responsible for the valuation of financial assets, including those classified under Level 3 of the fair value hierarchy[17]. - The company has adhered to all corporate governance codes during the reporting period[59] - There were no significant events affecting the company from the end of the reporting period until the announcement date[57] Investments - The company has made a prepayment of HKD 49.3 million for a 30% equity stake in Zhongchengxin Information Consulting (Shenzhen) Co., Ltd., which focuses on software development and AI solutions[35] - The company invested RMB 5 million in a non-listed entity with a buyback clause, which was not met by the investee by the deadline[36] - The company completed the sale of an investment property in China for HKD 60.3 million, with a deposit of HKD 30.1 million received as of December 31, 2023[37] - The company conditionally agreed to subscribe for 42,075,736 new shares of Glory Technology at a price of RMB 300 million (approximately HKD 345 million) in March 2015[55] - The average selling price of Glory Technology shares during the sale of 15,245,891 shares in early 2021 was approximately RMB 25.30, generating total proceeds of about RMB 385.72 million[56] - The company recognized a fair value gain of approximately HKD 57.53 million from the sale of Glory Technology shares for the year ending December 31, 2021[56] - As of June 30, 2024, the company held 44,693,660 shares of Glory Technology, representing approximately 2.07% of its issued shares, with a book value of about HKD 829.72 million[56] - The book value of Glory Technology shares increased from HKD 724.12 million as of December 31, 2023, to HKD 829.72 million as of June 30, 2024, accounting for 45.3% of the company's total assets[56] - The company sold a total of 11,589,200 shares of Glory Technology between February 9, 2023, and July 24, 2023, at an average price of RMB 17.48, resulting in net proceeds of approximately HKD 213.96 million[56] - The company received dividends of approximately RMB 7.60 million (equivalent to HKD 8.82 million) from Glory Technology on December 23, 2022[56] - No significant investments or capital asset acquisitions are planned by the company as of the announcement date[58]

Environmental Sustainability - The company aims to reduce greenhouse gas emissions by 15% by 2025, with a notable decrease in emissions during 2023 attributed to reduced business travel and effective energy-saving strategies[2]. - Energy consumption decreased during the reporting period, primarily due to fewer business trips and the implementation of energy-saving measures, with a target to reduce energy usage by 15% by 2025[7]. - The company is actively seeking ways to reduce water consumption in its offices, with a goal to decrease water usage by 5% by 2025[8]. - The company is committed to reducing carbon emissions through comprehensive energy-saving measures and the introduction of renewable energy sources[15]. - The company reported a total emission of nitrogen oxides at 1.96 kg in 2023, a decrease from 2.37 kg in 2022, representing a reduction of approximately 17.3%[132]. - The company recorded a total emission of sulfur dioxide at 0.25 kg in 2023, down from 0.65 kg in 2022, indicating a reduction of about 61.5%[132]. - The company has established an ESG working group to address ESG issues, including climate change, and to set operational emission targets[134]. - The company has a commitment to environmental protection through practices such as recycling and energy conservation[113]. Employee Development and Safety - The number of employees receiving training increased significantly from 84 in 2022 to 314 in 2023, indicating a focus on employee development and safety training[32]. - Employee turnover rate decreased significantly, with male turnover at 20% in 2023 compared to 67% in 2022, and female turnover at 5% compared to 32%[57]. - The workforce composition shifted, with the percentage of employees aged 30 or below increasing to 49% in 2023 from 14% in 2022[57]. - There were no health and safety-related government penalties or lawsuits during the reporting period, consistent with the previous year[59]. - The group has not recorded any work-related deaths or lost workdays due to injuries, demonstrating a strong focus on occupational health and safety[72]. - The company has implemented anti-corruption training for employees, with a focus on enhancing ethical standards within the organization[37]. Quality Management - The company has not received any significant product or service-related complaints during the reporting period, maintaining a strong quality assurance standard[34]. - The group maintained a strong commitment to quality management, achieving ISO-9001 certification, reflecting its ability to meet customer needs[63]. - The group has implemented a robust quality management system to monitor the entire production process, ensuring product safety and quality[65]. - The group actively seeks opportunities to improve product quality and environmental sustainability through supplier assessments and audits[63]. - The group has established a supplier evaluation and approval standard, hiring all new suppliers based on compliance, environmental, health and safety management, and quality management performance[63]. Corporate Governance - The company emphasizes high standards of corporate governance to enhance shareholder value and protect shareholder interests[171]. - The company has complied with the corporate governance code during the review year, except for deviations from specific provisions[172]. - No management contracts were established that would benefit directors or their associates through the purchase of the company's shares or bonds[187]. - The company maintains sufficient public float as required by listing rules[188]. - The company appointed Dr. Wu Zhi Li as an independent non-executive director and member of the audit, remuneration, and nomination committees[190]. - The company’s external auditor, Lo Shen Mei CPA, has been engaged to audit the financial statements for the year ending December 31, 2023[190]. - The audit committee has reviewed the audited performance for the year ending December 31, 2023, and agreed on the adopted accounting policies[190]. - The company has complied with or been exempted from the disclosure requirements under Chapter 14A of the Listing Rules for related party transactions during the year ending December 31, 2023[200]. Financial Performance - The group maintained stable EBITDA and share-based payment expenses for the year ending December 31, 2023, consistent with 2022[49]. - The group's gross profit margin for the year ended December 31, 2023, was 17.7%, down from 20.6% in 2022, primarily due to further optimization of internal operations[82]. - The top five customers accounted for approximately 97.9% of the group's total sales, with the largest customer representing about 39.2% of total sales[80]. - The business environment remains challenging due to various factors, including economic uncertainty and changes in consumer spending, which could impact product demand and profitability[116]. - The company has not utilized any financial instruments for hedging purposes during the year[117]. Strategic Goals and Investments - The company continues to invest heavily in research and development for future technologies to maintain its leadership position in the industry[87]. - The company has established strategic goals for the next three to five years to focus on achieving its vision[103]. - The company has a procurement management guideline to manage environmental and social risks in its supply chain[63]. Shareholder Information - The company approved a share consolidation on January 29, 2024, merging every ten shares of HKD 0.01 into one share of HKD 0.10, effective January 31, 2024[123]. - As of December 31, 2023, the company has 6,156,928,860 shares issued[177]. - Major shareholder Huang Weizi holds 2,618,500,000 shares, representing 42.53% of the total issued shares[180]. - Central Faith International Ltd. holds 972,981,013 shares, accounting for 15.80% of the total issued shares[180]. - The company has adopted a stock option plan that allows for the issuance of options not exceeding 10% of the issued shares as of July 31, 2012[158]. - No stock options were cancelled during the reporting period[165]. - The company has not issued any new shares during the fiscal year ending December 31, 2023[125]. - The company did not engage in any purchase, sale, or redemption of its listed securities during the fiscal year[125]. - The company has not entered into any significant contracts with any controlling shareholders or their subsidiaries during the fiscal year[150]. Community Engagement - The company encourages employees to participate in charitable activities to enhance community awareness and engagement[85]. - The company has not made any charitable donations or other contributions during the fiscal year ending December 31, 2023[145].

Financial Performance - The company reported a loss of HKD 7,295,000 for the year ended December 31, 2023, compared to a loss of HKD 67,912,000 in the previous year, indicating a significant improvement [3]. - The company reported a net loss of HKD 1,631,000 from foreign exchange losses in 2023, an improvement from HKD 4,362,000 in the previous year [17]. - The net loss for the same period was HKD 7.3 million, a significant reduction of 89.3% year-on-year [57]. - The net loss attributable to the company's owners was HKD 7,295,000, a substantial improvement from HKD 67,912,000 in the previous year [147]. - The operating loss decreased significantly to HKD 9,585,000 from HKD 70,221,000 in the prior year, reflecting a reduction of 86.3% [147]. - The loss per share for 2023 was HKD 43,838, compared to HKD 162,484 in 2022 [171]. Revenue and Sales - The company generated revenue of HKD 52,523,000 in 2023, a decrease from HKD 14,561,000 in 2022, indicating a significant drop in performance [11]. - Total revenue for the group was HKD 653,756,000 in 2023, up from HKD 626,742,000 in 2022, indicating a growth of approximately 4% [37]. - Revenue from China reached HKD 83,139,000 in 2023, compared to HKD 31,305,000 in 2022, representing a significant increase [37]. - The company's revenue increased from approximately HKD 52.5 million in the fiscal year 2022 to approximately HKD 83.1 million in the current year, representing an increase of about HKD 30.6 million or 58.3% [115]. - Revenue from AI-based technology support services was HKD 633,000, while sales of AI coverage systems and related products generated HKD 56,526,000 [157]. Assets and Liabilities - Total equity decreased to HKD 1,493,847,000 in 2023 from HKD 1,616,997,000 in 2022, reflecting a decline of approximately 7.6% [5]. - Total assets decreased to HKD 1,828,250,000 in 2023 from HKD 1,979,687,000 in 2022, a decline of about 7.6% [28]. - Current liabilities increased to HKD 163,033,000 in 2023 from HKD 121,678,000 in 2022, representing an increase of approximately 34% [5]. - Non-current liabilities decreased to HKD 171,370,000 in 2023 from HKD 241,012,000 in 2022, a reduction of about 28.9% [5]. - The total liabilities were approximately HKD 334,403,000, down from HKD 362,690,000 in the previous year [93]. Expenses - Employee benefit expenses rose to HKD 67,994,000 in 2023 from HKD 31,646,000 in 2022, marking an increase of approximately 114% [40]. - The impairment loss on trade receivables was HKD 5,872,000 in 2023, compared to HKD 3,328,000 in 2022, which is an increase of about 76% [40]. - Administrative expenses were significantly reduced by approximately HKD 10,025,000 due to enhanced internal controls and cost-cutting measures [88]. - Financial expenses decreased from HKD 11,607,000 in 2022 to HKD 9,217,000 in 2023 [167]. Investments and Acquisitions - The group has made a prepayment of HKD 49.3 million for the acquisition of a 30% stake in Zhongchengxin, a company focused on software development and data analysis [54]. - The group sold 11,589,200 shares of Guangqi Technology, raising net proceeds of HKD 213.96 million for operational funding [73]. - The company holds approximately 44,693,660 shares of Guangqi Technology, accounting for about 2.07% of its issued shares, with a book value of HKD 724.1 million as of December 31, 2023 [124]. Strategic Focus and Development - The group is focusing on the development of wearable smart products and customized smart system solutions, enhancing performance and functionality [82]. - The group has entered the industrial metal structure component business, which is expected to improve its design and integration capabilities in related industrial fields [82]. - The company aims to strengthen its internal management and marketing efforts to enhance competitiveness and market share, focusing on customer-centric and quality-driven principles [114]. - The company will continue to attract and cultivate innovative talent in AI algorithms, big data, and smart manufacturing engineering as a key strategic goal [114]. - The company is focused on innovation in future technology products and services, indicating ongoing investment in research and development [151]. Governance and Compliance - The company has maintained compliance with corporate governance codes and has not engaged in any buybacks or sales of its listed securities during the year [138][140]. - The board believes that the group has sufficient financial resources to continue its operations and meet its financial obligations in the foreseeable future [153]. Shareholder Information - The group has not declared or proposed any dividends for the fiscal year ending December 31, 2023 [70]. - No dividends were declared or proposed for the current year, consistent with the previous fiscal year [106].

Financial Performance - For the six months ended June 30, 2023, the company recorded sales revenue of approximately HKD 33.5 million, representing a slight increase of 8.18% compared to the same period last year[10]. - The net loss for the same period was HKD 9.1 million, a reduction of HKD 29.37 million, primarily due to effective control and optimization of operating expenses[10]. - The gross profit for the same period was HKD 4,673,000, down from HKD 6,377,000, indicating a decrease of about 26.6%[86]. - The operating loss narrowed to HKD 10,078,000 from HKD 39,416,000, showing an improvement of approximately 74.5%[86]. - The total comprehensive loss for the period was HKD 151,278,000, down from HKD 508,828,000, representing a decrease of about 70.3%[87]. - The company reported a basic and diluted loss per share of HKD 0.15, compared to HKD 0.62 in the previous year, indicating a reduction of approximately 75.8%[86]. - The company reported a total comprehensive loss of HKD 508,828,000 for the six months ended June 30, 2023, compared to a total comprehensive loss of HKD 474,790,000 for the same period in 2022[92]. Cash and Liquidity - As of June 30, 2023, the company's short-term deposits amounted to approximately HKD 227.9 million, up from HKD 90.25 million as of December 31, 2022[18]. - Cash and cash equivalents were approximately HKD 93.23 million, an increase from HKD 72.7 million as of December 31, 2022[18]. - The total cash and cash equivalents were HKD 321,129,000, an increase of HKD 158,181,000 compared to December 31, 2022[34]. - The cash and cash equivalents increased to HKD 321,129,000 as of June 30, 2023, compared to HKD 162,948,000 at the end of 2022, representing a growth of approximately 97%[114]. - The net cash outflow from operating activities for the six months ended June 30, 2023, was HKD 26,121,000, an improvement compared to HKD 56,506,000 for the same period in 2022[94]. Assets and Liabilities - The total assets were approximately HKD 1,808,151,000, a decrease from HKD 1,979,687,000 as of December 31, 2022[34]. - The total liabilities were approximately HKD 342,072,000, down from HKD 362,690,000 as of December 31, 2022[34]. - The total bank borrowings amounted to approximately HKD 135,191,000, a decrease from HKD 141,422,000 as of December 31, 2022[35]. - The non-current liabilities decreased to HKD 218,632,000 from HKD 241,012,000, indicating a decline of about 9.2%[89]. - The company has no significant or contingent liabilities as of June 30, 2023[37]. Share Transactions and Investments - The company sold a total of 930,500 shares of Guangqi Technology for approximately RMB 13,630,000, with an average selling price of RMB 14.65 per share during the period from July 21 to July 24, 2023[24]. - The company expects to recognize a fair value loss of approximately HKD 2,205,000 from the further sale of Guangqi Technology shares in the other comprehensive income for the year ending December 31, 2023[24]. - The company sold a total of 10,658,700 shares of Guangqi Technology for approximately RMB 188,937,000, with an average selling price of RMB 17.73 per share[62]. - The fair value gain recognized from the sale of Guangqi Technology shares was approximately HKD 7,088,000 for the six months ended June 30, 2023[62]. - The company currently holds approximately 3.2% of Guangqi Technology shares after completing the subscription on February 13, 2017[22]. Strategic Initiatives - The company plans to focus on upgrading existing products and solutions while expanding its customer base in related industries[11]. - The introduction of high-end metal component products and services is a new strategic direction aimed at enhancing the company's design and integration capabilities in relevant industrial sectors[11]. - The company has optimized its integrated solutions based on years of technical accumulation and customer feedback, enhancing recognition and tracking analysis algorithms[31]. - The company has been focusing on the research and development of AI technologies and related innovative products, aiming to enhance its market position in various verticals[122]. Governance and Management - The company will continue to strengthen internal governance and increase marketing efforts to enhance competitiveness and market share[13]. - The company has maintained its risk management policies without significant changes since the last fiscal year-end, ensuring effective business operations and further development[60]. - The company is committed to employee training and development, ensuring continuous skill maintenance through ongoing training programs[32]. Equity and Dividends - The board has decided not to declare any interim dividend for the current period, consistent with the previous year[16]. - The company did not declare or recommend any dividends for the six months ended June 30, 2023[177]. - The total equity as of June 30, 2023, was approximately HKD 1,466,079,000, down from HKD 1,616,997,000 as of December 31, 2022[34]. Market and Operational Insights - The smart helmet has been deployed in 22 provinces and municipalities, with applications completed in over 55 cities, meeting the customized needs of the public safety sector[31]. - The company has established deep cooperation with industrial application customers in Guangdong, achieving deployment and delivery of intelligent monitoring systems that significantly improve operational efficiency and quality control[31]. - The company operates primarily in two regions: China and Hong Kong, with revenue contributions from these areas being critical to its financial performance[175].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部 或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 KUANGCHI SCIENCE LIMITED 光啟科學有限公司 （於百慕達註冊成立之有限公司） （股份代號：439） 截至二零二三年六月三十日止六個月之 中期業績公佈 光啟科學有限公司（「本公司」）董事會（「董事會」）宣佈本公司及其附屬公司（「本集 團」）截至二零二三年六月三十日止六個月（「本期間」）之未經審核中期業績連同二 零二二年同期（「比較期間」）之比較數字如下： ...

Leadership and Management - The company appointed Dr. Liu Weiwen as CEO on December 5, 2022, who has extensive experience in materials science and engineering[8]. - Dr. Lan, the CEO, has a strong background in advanced technology R&D and business networks in electronic information and innovative technologies[1]. - Dr. Zhang, an executive director, has been with the company since 2014 and has significant experience in metamaterials and innovative technologies[2]. - Dr. Ji, the Chief Technology Officer, has rich R&D experience in statistics, metamaterials, and machine learning[3]. - The financial management and reporting were previously overseen by Mr. Li, who has over ten years of experience in auditing and finance[4]. - The company has a strong governance structure with independent non-executive directors overseeing key committees[5][6][7]. Financial Performance - The board presented the audited consolidated financial statements for the year ending December 31, 2022[9]. - The company's gross profit margin for the year ended December 31, 2022, was 20.6%, a decrease from 36.6% in 2021[15]. - The company's debt-to-equity ratio as of December 31, 2022, was 0.09, compared to 0.08 in 2021, indicating a stable financial position[16]. - No dividends were declared or proposed for the year ended December 31, 2022, consistent with the previous year[13]. - The company's sales revenue for the fiscal year ending December 31 was approximately HKD 52.5 million, a decrease of 53.9% compared to the previous year[115]. - The net loss increased by HKD 27.3 million or 67.2% to approximately HKD 67.9 million, primarily due to a loss of approximately HKD 19.5 million from the fair value change of the investment in Irisity AB[117]. - As of December 31, 2022, the total equity of the group was approximately HKD 1,616,997,000, a decrease from HKD 2,224,046,000 as of December 31, 2021[125]. - The total assets of the group were approximately HKD 1,979,687,000, down from HKD 2,769,720,000 in the previous year[125]. - The total liabilities of the group were approximately HKD 362,690,000, reduced from HKD 545,674,000 as of December 31, 2021[125]. Market and Customer Relations - The company has a focus on expanding its market presence and developing new technologies in the field of advanced materials[1][2][3]. - The top five customers accounted for approximately 90.0% of total sales, with the largest customer representing about 38.9% of total sales[12]. - The company maintains good relationships with its customers, focusing on providing excellent customer service and long-term profitability[28]. - The company has implemented a customer complaint handling mechanism to enhance service quality and address customer feedback effectively[28]. Research and Development - The company continues to invest heavily in research and development for future technologies to maintain its market leadership[25]. - The company aims to leverage its R&D capabilities to drive innovation and market expansion in the coming years[1][2][3]. - The company is actively involved in various projects related to global pandemic risk analysis and food safety risk assessment[7]. - The company has successfully expanded into smart industrial production management, leveraging AI core algorithms and big data analysis platforms[115]. - The company continues to focus on the development of AI technology and its integration into various vertical industry applications[116]. Sustainability and Environmental Practices - The company is committed to sustainable practices, including energy conservation and recycling initiatives[17]. - The company's greenhouse gas emissions for 2022 totaled 155.71 tons of CO2 equivalent, a decrease from 165.96 tons in 2021[90]. - The company aims to reduce greenhouse gas emissions by 15% by 2025[89]. - The company has implemented energy-saving policies to manage its carbon footprint[89]. - The company aims to reduce energy consumption by 15% by 2025[96]. - The company is committed to reducing non-renewable energy usage in daily operations and aims for zero carbon emissions through comprehensive energy-saving policies and the introduction of renewable energy[165]. - The company is participating in renewable energy programs and implementing energy efficiency measures to diversify its resource base[187]. Employee Welfare and Development - The company emphasizes the importance of employee welfare and development as a key asset[27]. - The total number of employees and consultants as of December 31 was 67, with 14 holding master's degrees or higher, representing approximately 20.9%[121]. - Employee costs for the year were approximately HKD 31,646,000, down from HKD 47,115,000 in the previous year[139]. - The company is committed to providing a safe working environment and fair promotion mechanisms for employees[154]. - Employee turnover rate increased significantly to 62% in 2022 from 28% in 2021[192]. Risk Management and Compliance - The company has established a system to monitor compliance related to environmental, health, safety, and quality management[151]. - The board plays a crucial role in overseeing ESG issues and has dedicated significant time to assessing ESG-related risks and formulating policies to address them[160]. - Climate-related risks are identified through a risk assessment process that utilizes national data, local information, and expert knowledge[166]. - The company recognizes the increasing severity and frequency of acute physical risks, such as hurricanes and floods, which may lead to financial losses[168]. - The company has not faced any government penalties or lawsuits related to employment issues in 2022[197]. Shareholder and Corporate Governance - The company has complied with or been exempted from the disclosure requirements under Chapter 14A of the Listing Rules for the year ended December 31, 2022[62]. - The external auditor has issued an unqualified opinion letter regarding the company's continuing connected transactions[59]. - The company's board of directors includes several members who have agreed to waive their remuneration, totaling approximately HKD 2,611,000[52]. - The company is dedicated to ensuring transparency and protecting shareholder interests through regular disclosures[153].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部 或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 KUANGCHI SCIENCE LIMITED 光啟科學有限公司 （於百慕達註冊成立之有限公司） （股份代號：439） 截至二零二二年十二月三十一日止年度之 全年業績公佈 光啟科學有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及其附屬公司截 至二零二二年十二月三十一日止年度（「本年度」）之經審核綜合業績，連同二零二 一年同期（「二零二一財年」）之比較數字。 ...