Financial Performance - The company reported total revenue of approximately HKD 30.9 million for the six months ended June 30, 2022, representing a 121% increase compared to the previous period, which is equivalent to an increase of HKD 16.9 million[7]. - The net loss for the same period was HKD 38.5 million, with a gross profit margin of 20.6%[7]. - The operating loss for the six months was HKD 39,416,000, compared to an operating loss of HKD 15,761,000 in the previous year, reflecting increased operational challenges[51]. - The net loss before tax was HKD 38,471,000, which is a substantial increase from the net loss of HKD 14,279,000 in the prior year[51]. - Basic and diluted loss per share for the period was HKD 0.62, compared to HKD 0.23 in the same period last year, indicating a worsening financial performance[51]. - Total comprehensive loss for the period reached HKD 508,828,000, up from HKD 54,539,000 in the previous year, indicating a substantial decline in financial performance[52]. - The company reported a loss of HKD 38,471,000 for the six months ended June 30, 2022, compared to a loss of HKD 14,279,000 in the same period of 2021, representing a significant increase in losses[52]. Revenue Breakdown - Revenue from the sale of AI systems and related products reached HKD 22,353,000 in the first half of 2022, up from HKD 7,412,000 in the previous year, indicating a significant increase of about 201%[79]. - The company generated HKD 20,404,000 in revenue from Hong Kong, a substantial rise from HKD 2,121,000 in the prior year, reflecting an increase of approximately 867%[81]. - The cost of sales for the first half of 2022 was HKD 24,554,000, compared to HKD 7,878,000 in the same period of 2021, resulting in a significant increase of about 211%[85]. Assets and Liabilities - As of June 30, 2022, the total shareholder equity was approximately HKD 1,715,780,000, down from HKD 2,224,046,000 as of December 31, 2021[18]. - The total assets amounted to approximately HKD 2,120,039,000, down from HKD 2,769,720,000 as of December 31, 2021[18]. - The group has a total bank borrowing of approximately HKD 158,564,000 as of June 30, 2022, with interest rates ranging from 6.7% to 7.4%[18]. - The company’s total liabilities amounted to HKD 404,259,000, down from HKD 545,674,000, indicating a decrease of approximately 26%[55]. - Non-current assets decreased to HKD 1,778,328,000 as of June 30, 2022, down from HKD 2,320,263,000 at the end of 2021, reflecting a reduction of approximately 23.4%[54]. Cash Flow - The net cash outflow from operating activities for the six months ended June 30, 2022, was HKD (56,506) thousand, compared to HKD (128,513) thousand for the same period in 2021, indicating an improvement of 56%[60]. - The net cash outflow from investing activities was HKD (7,641) thousand for the six months ended June 30, 2022, significantly lower than HKD 401,584 thousand in the previous year, reflecting a reduction of over 98%[60]. - The cash and cash equivalents at the end of the period were HKD 213,048 thousand, up from HKD 101,542 thousand at the end of the previous year, representing a growth of 109%[60]. Employee and Shareholder Information - As of June 30, 2022, the group had 86 employees, with approximately 19.1% holding a master's degree or higher, supporting innovation and development in core areas[15]. - The company’s major shareholder, Ms. Huang Weizi, holds 2,618,500,000 shares, representing approximately 42.53% of the issued share capital[41]. - Central Faith International Ltd. holds 972,981,013 shares, accounting for 15.80% of the total issued shares[41]. Investments and Acquisitions - As of June 30, 2022, the company held 56,282,860 shares of Guangqi Technology, representing approximately 2.61% of its issued shares[26]. - The book value of Guangqi Technology shares was HKD 1,138,607,000 as of June 30, 2022, accounting for 53.7% of the company's total assets[26]. - The company completed the acquisition of Guangqi Technology shares for a total consideration of HKD 300 million[24]. Research and Development - The company continues to focus on the research and development of core artificial intelligence technologies to provide integrated solutions for various vertical industries[8]. - The company has developed a series of core algorithms, smart wearable products, and system management platforms for vertical industry applications[10]. - The company aims to expand its applications into industrial testing, smart production management, and intelligent data analysis[10]. Financial Reporting and Compliance - The financial data presented is unaudited and was approved for publication by the board on August 30, 2022[62]. - The financial information is prepared in accordance with Hong Kong Financial Reporting Standards and is based on historical cost, except for certain financial assets measured at fair value[63]. - The company has adopted new accounting standards effective from January 1, 2022, but these did not have a significant impact on the financial position and performance[66]. Other Information - The company did not declare any interim dividends for the current period, consistent with the previous year[16]. - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[47]. - There were no significant events occurring after the period ended June 30, 2022[135].

Financial Performance - The company's revenue increased from approximately HKD 99.5 million in FY2020 to approximately HKD 114.0 million in FY2021, representing a growth of about 14.6%[4] - The gross profit margin for FY2021 was reported at 36.6%[4] - The net loss decreased from approximately HKD 79.4 million in FY2020 to approximately HKD 40.6 million in FY2021, a reduction of about 48.9%[4] - The company's gross profit margin for the year ended December 31, 2021, was 36.6%, a slight decrease from 38.8% in 2020[134] - EBITDA for the year remained stable, with an increase of HKD 218,902,000 in 2020[135] - The debt-to-equity ratio as of December 31, 2021, was 0.08, a significant improvement from 0.26 in 2020[135] - The company does not recommend any dividend payment for the year ended December 31, 2021, consistent with 2020[133] Assets and Equity - As of December 31, 2021, the total shareholder equity was approximately HKD 2,224.0 million, an increase from HKD 1,938.3 million on December 31, 2020[14] - The total assets amounted to approximately HKD 2,769.7 million as of December 31, 2021, compared to HKD 2,843.0 million on December 31, 2020[14] - The company had cash and cash equivalents of approximately HKD 297.2 million as of December 31, 2021, an increase of HKD 149.4 million from HKD 147.8 million on December 31, 2020[13] Employee and Talent Management - The company aims to enhance its talent pool by attracting high-tech talent in artificial intelligence and electronic information, with 21% of its 90 employees holding master's degrees or higher as of December 31, 2021[11] - The number of employees decreased to approximately 90 as of December 31, 2021, down from 110 in the previous year[26] - The overall employee turnover rate increased to 28% in 2021 from 19% in 2020, with a significant rise in female turnover to 52%[99] - 88% of employees received training in 2021, a slight decrease from 91% in 2020[103] - The average training hours per employee in 2021 were 2.0 hours, consistent with the previous year[103] - The company has a strict policy against discrimination based on various characteristics, ensuring equal opportunities in employment decisions[96] - The company emphasizes a harassment-free work environment, promoting mutual respect among employees[97] - The company has implemented a health and safety management system to enhance workplace safety and employee well-being[100] Research and Development - The company continues to invest heavily in research and development for future technologies to maintain its market leadership[142] - The company has submitted over 828 patent applications, showcasing its commitment to innovation and technology leadership[107] - The company is focused on expanding its market presence and developing new technologies in the field of metamaterials and space technology[120][121][123] - The company aims to leverage its R&D capabilities to drive innovation and maintain a competitive edge in the market[123] Environmental, Social, and Governance (ESG) - The company has formed an ESG working group to oversee ESG processes and risk management[44] - The company conducts annual materiality assessments to understand stakeholder expectations and concerns regarding ESG issues[45] - The company aims to reduce air pollutant emissions by 10% in 2022 compared to 2021[50] - Total air pollutant emissions in 2021 were 3.25 kg, a decrease from 3.97 kg in 2020[51] - Greenhouse gas emissions in 2021 totaled 165.96 tons of CO2 equivalent, down from 176.10 tons in 2020[53] - The company plans to reduce greenhouse gas emissions by 15% in 2022[52] - The company has implemented a waste management policy to classify waste into general, industrial, and hazardous categories[54] - The company is committed to enhancing resource conservation and has established an energy resource control management guideline[57] - The company has established an environmental policy to identify and manage environmental risks, aiming to enhance environmental sustainability through eco-friendly practices[66] - Climate change is recognized as a significant operational risk, with the company’s ESG working group regularly monitoring climate-related issues and integrating them into strategic planning[67] Corporate Governance - The company has a diverse board with members holding advanced degrees from prestigious universities, enhancing its governance and strategic oversight[122][125][126][127] - The board includes independent directors with significant experience in finance and accounting, ensuring robust financial oversight[124][126][127] - The board's composition reflects a balance of technical expertise and financial acumen, supporting the company's strategic initiatives[125][126] Supplier and Customer Relations - The company has established long-term relationships with multiple suppliers, ensuring compliance with quality and ethical commitments[148] - The top five suppliers accounted for approximately 89.3% of total procurement, with the largest supplier representing 24.8%[130] - The top five customers contributed about 62.6% of total sales, with the largest customer accounting for 14.9%[131] - The company has established a customer complaint handling mechanism to enhance service quality and address customer feedback[147] Shareholder Information - As of December 31, 2021, the company had 6,156,928,860 shares issued[177] - Dr. Liu Ruopeng holds 2,618,500,000 shares, representing approximately 42.53% of the total issued shares[175] - Major shareholder Huang Weizi holds 2,618,500,000 shares, also representing approximately 42.53% of the total issued shares[179] - Central Faith International Ltd. holds 972,981,013 shares, representing approximately 15.80% of the total issued shares[179] - World Treasure Global Limited holds 618,981,013 shares, representing approximately 10.05% of the total issued shares[179] - Ye Cheng holds 347,471,988 shares, representing approximately 5.64% of the total issued shares[179] Compliance and Risk Management - The company conducted 1-2 on-site inspections annually as part of its compliance with government regulations[35] - The company emphasizes low risk and transparency in its communications with shareholders, ensuring all channels are effective and available[35] - The company adheres to regulatory requirements and timely disclosure of the latest corporate information to financial institutions[36] - The company has not faced any government penalties or lawsuits related to employment issues in 2021[98] - The external auditor has issued an unqualified opinion letter regarding the company's related party transactions[171] Future Outlook - The company anticipates an unexpected increase in demand for wearable smart helmets, leading to a proposal to amend the existing annual cap for procurement agreements[169] - The company plans to invest in innovative energy-saving products and assess the feasibility and benefits of applying the latest low-carbon technologies[91] - The company is actively monitoring its carbon and energy footprint, although there remains a lack of understanding regarding the impact of climate risks and opportunities on operations and profits[74]

Financial Performance - The company recorded total revenue of approximately HKD 14.8 million for the six months ended June 30, 2021, a decrease of 75.9% from HKD 61.4 million in the comparative period[7]. - The net loss for the period was HKD 14.3 million, with a gross profit margin of 46.8%[7]. - Revenue for the six months ended June 30, 2021, was HKD 14,812,000, a decrease of 76.1% compared to HKD 61,379,000 for the same period in 2020[62]. - Gross profit for the same period was HKD 6,934,000, down 61.0% from HKD 17,812,000 in 2020[62]. - Operating loss for the six months ended June 30, 2021, was HKD 13,368,000, an improvement from a loss of HKD 24,283,000 in 2020[62]. - Loss before tax was HKD 14,279,000, compared to a loss of HKD 10,786,000 in the previous year[62]. - The company reported a total comprehensive loss of HKD 54,539,000 for the six months ended June 30, 2021, compared to HKD 147,625,000 in 2020[65]. - Basic and diluted loss per share from continuing operations was HKD 0.23, compared to HKD 0.18 in the previous year[63]. Assets and Liabilities - Current assets exceeded current liabilities by HKD 176 million, with net debt reduced to HKD 78 million from HKD 348 million at the end of 2020[7]. - The total assets were approximately HKD 2,451,010,000, a decrease from HKD 2,843,044,000 as of December 31, 2020, while total liabilities were approximately HKD 566,955,000, down from HKD 904,759,000[18]. - The company's asset-liability ratio was approximately 9.6% as of June 30, 2021, compared to 25.70% as of December 31, 2020[18]. - The total lease liabilities amounted to HKD 532 million, a decrease from HKD 1,130 million as of December 31, 2020[112]. - The net trade receivables as of June 30, 2021, were HKD 269.6 million, compared to HKD 194.6 million as of December 31, 2020, indicating a significant increase[120]. Revenue Sources - The decline in revenue was primarily due to reduced sales of smart helmets, although demand for intelligent epidemic prevention helmets remains due to ongoing pandemic conditions[8]. - Revenue from sales of wearable smart helmets was HKD 1,356 thousand, down from HKD 46,429 thousand in the previous year[92]. - Revenue from sales of artificial intelligence systems and related products was HKD 7,412 thousand, compared to HKD 14,950 thousand in 2020[92]. - Revenue from external customers in China was HKD 12,609 thousand, a decrease from HKD 41,444 thousand in 2020[95]. Corporate Governance - The company emphasizes high standards of corporate governance to enhance shareholder value and protect shareholder interests[51]. - The company has adopted sound corporate governance principles and complies with the relevant rules of the Hong Kong Stock Exchange[51]. - The company regularly reviews its corporate governance practices to ensure compliance with the corporate governance code[53]. Shareholder Information - As of June 30, 2021, the total shareholder equity was approximately HKD 1,884,055,000, down from HKD 1,938,285,000 as of December 31, 2020[18]. - As of June 30, 2021, the company had a total of 6,156,928,860 shares issued[45]. - Dr. Liu Ruopeng holds 2,618,500,000 shares, representing approximately 42.53% of the total issued shares[40]. - New Horizon holds 2,618,000,000 shares, accounting for about 42.52% of the total issued shares[48]. - Central Faith International Ltd. owns 972,981,013 shares, which is approximately 15.80% of the total issued shares[48]. - World Treasure Global Limited has 618,981,013 shares, representing about 10.05% of the total issued shares[49]. Cash Flow and Investments - The net cash outflow from operating activities for the six months ended June 30, 2021, was HKD (128,513) thousand, compared to HKD (116,003) thousand for the same period in 2020[73]. - The company reported a net cash inflow from investing activities of HKD 401,584 thousand, a significant increase compared to a net cash outflow of HKD (15,181) thousand in the prior year[73]. - The company’s financing activities resulted in a net cash outflow of HKD (318,882) thousand, compared to a net cash inflow of HKD 2,098 thousand in the same period last year[73]. Research and Development - The company plans to continue R&D to produce AI technology and big data analysis products for various vertical industries, anticipating gradual recovery in its AI business in the second half of 2021[8]. - The company has developed a range of AI algorithms and big data analysis platforms tailored to meet the needs of different industries, including public safety and education[10]. - New innovations in algorithms for infrared-visible light dual fusion temperature measurement have been made for smart epidemic prevention helmets, which continue to see demand in domestic and Southeast Asian markets[11]. - The company is expanding its applications in various sectors, including internet commerce and industrial inspection, with ongoing development and testing of systems[12]. - The company is focused on providing integrated solutions that combine AI algorithms with hardware access for various applications in public safety and epidemic prevention[9]. Financial Risks - The company faces various financial risks, including market risk, credit risk, and liquidity risk[85]. - The company has not generated taxable profits in Hong Kong for the six months ended June 30, 2021, resulting in no provision for Hong Kong profits tax[100]. Other Information - The company did not declare any interim dividend for the period, consistent with the previous year[16]. - The company has not disclosed any other individuals holding shares or related interests that require notification under the Securities and Futures Ordinance[46]. - No significant events occurred after the period ended June 30, 2021[145].

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 K KUANGCHI 光啟科學 2020年度報告 I I | | | 目錄 公司資料2 | --- | |------------------------| | | | | | 管理層討論與分析 | | 環境、社會及管治報告 | | 董事及高層管理人員履歷 | | 董事會報告 | | 企業管治報告 | | 獨立核數師報告 | | 綜合損益表 | | 綜合全面收益表 | | 綜合財務狀況表 | | 綜合權益變動表 | | 綜合現金流量表 | | 綜合財務報表附註 | | 五年財務摘要 | 3 7 30 33 47 59 64 66 67 69 70 71 154 111 光啟科學有限公司 2 439 公司資料 | --- | --- | |----------------------------------------------------|--------------------------------------------------------------| | 董事會 | 註冊辦事處 | | 執行董事 | Clarendon Hou ...

光啟科學有限公司 於百慕逵註冊成立之有限公司 股份代號: 439 2020 中期報告 + KUANGCHI 光放科學 | --- | --- | --- | --- | --- | --- | |--------------------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | 目 錄 | | | | | | | 公司資料 | | | | | 2 | | 管理層討論與分析 | | | | | 4 | | 董事及最高行政人員於股份之權益 | | | | | 11 | | 主要股東於股份之權益 | | | | | 13 | | 企業管治及其他資料 | | | | | 17 | | 簡明綜合損益表 | | | | | 19 | | 簡明綜合全面收益表 | | | | | 21 | | 簡明綜合財務狀況表 | | | | | 22 | | 簡明綜合權益變動表 | | | | | 24 | | 簡明綜合現金流量表 | | | | | 26 | | | | | | | | ...

Financial Performance - The company recorded total revenue of approximately HKD 61 million and a net loss of approximately HKD 294 million for the year ended December 31, 2019[5]. - The group's revenue decreased from approximately HKD 158 million for the year ended December 31, 2018, to approximately HKD 61 million for the year ended December 31, 2019, a decline of about HKD 97 million or 61.4%[13]. - The net loss of the group reduced from approximately HKD 498 million for the year ended December 31, 2018, to approximately HKD 294 million for the year ended December 31, 2019, a decrease of about HKD 204 million or 41%[13]. - The group's gross profit margin for the year ended December 31, 2019, was 16%, an increase from 12% in 2018, primarily due to higher sales of more profitable products[101]. - EBITDA and share-based payment increased by HKD 138,229,000 in 2019, compared to a decrease of HKD 769,075,000 in 2018, reflecting a reduction in other operating expenses[102]. - The debt-to-equity ratio as of December 31, 2019, was 0.48, up from 0.33 in 2018, indicating a solid level of financial stability[102]. - The group’s financial performance details are available in the audited consolidated financial statements[98]. Technology and Innovation - The company is focusing on future technology business, particularly in artificial intelligence and future space technologies, with significant applications in various industries[6]. - The artificial intelligence system has been deployed in key areas of Shanghai and Chongqing, with a partnership established with the Huangpu District government to promote AI technology applications[7]. - The company successfully won a project for an AI coverage system in Shunde District, Foshan, integrating smart helmets and big data analysis to enhance operational efficiency[8]. - The company believes that the development of 5G networks will accelerate the application of its AI technology across more vertical industries, particularly in smart city construction[8]. - The company submitted over 828 patent applications, showcasing its commitment to innovation and technology leadership[69]. - The company has a strong management team with extensive experience in advanced technology research and development[88][89]. - The company has been recognized for its contributions to technology and innovation, with several team members receiving awards[88][89]. - The main business of the company involves innovation in future technology products and providing innovative technology service solutions[95]. - The company is focused on expanding its market presence and developing new technologies[95]. Environmental Responsibility - The report outlines the group's commitment to sustainable development, focusing on environmental, employment, operational practices, and community engagement[26]. - In 2019, the company reported a significant reduction in air pollutant emissions, with nitrogen oxides decreasing from 8.94 kg in 2018 to 2.67 kg in 2019, a reduction of approximately 70%[40]. - The total greenhouse gas emissions for 2019 were 140.18 tons of CO2 equivalent, down from 330.52 tons in 2018, representing a reduction of about 58%[42]. - The company’s Scope 1 greenhouse gas emissions decreased from 64.46 tons of CO2 equivalent in 2018 to 43.02 tons in 2019, a reduction of approximately 33%[42]. - The Scope 2 emissions also saw a significant drop from 266.06 tons of CO2 equivalent in 2018 to 97.16 tons in 2019, a decrease of around 63%[42]. - The company has implemented an environmental and waste policy aimed at reducing operational impacts on the environment[37]. - The reduction in emissions was attributed to decreased sales of the super smart tracking system chips and "Cloud Number" products during the reporting period[39][41]. - The company is committed to maintaining compliance with environmental regulations, including the Air Pollution Control Ordinance in Hong Kong and the Environmental Protection Law in China[38]. - The company has established procedures to monitor air pollutants, waste, wastewater, and noise emissions[38]. Stakeholder Engagement - The group recognizes the importance of stakeholder support for business success and has established various communication channels to engage with key stakeholders[29]. - The group acknowledges the significance of stakeholder insights and has identified key stakeholders critical to its business activities[29]. - The company engages stakeholders through various channels to understand their expectations and concerns regarding ESG issues[32]. - The company emphasizes the importance of a healthy work environment and employee rights as part of its corporate social responsibility initiatives[37]. Employee Welfare and Development - As of December 31, 2019, the group had approximately 239 employees and provided competitive compensation packages, including stock option plans and discretionary bonuses for outstanding performance[22]. - The company emphasizes employee welfare and development through competitive compensation and performance evaluation programs[113]. - The company focuses on employee training, particularly in safety, to enhance safety awareness and reduce workplace accidents[66]. - The company has a diverse workforce, with 31% male and 69% female employees, and various age groups represented[60]. - The company maintains high labor standards and strictly adheres to labor laws, with no incidents of child or forced labor reported in 2019[67]. - The company has implemented a "Work Stress and Fatigue Management Policy" to identify and manage workplace stress and fatigue[64]. - The company recorded zero work-related fatalities and zero lost workdays due to injuries[17]. - The percentage of trained employees was F%, indicating a strong commitment to employee development[17]. Corporate Governance - The company has adopted sound corporate governance principles to enhance shareholder value and protect shareholder interests[173]. - The company did not comply with certain corporate governance code provisions during the review year, specifically regarding the notice period for board meetings and attendance at the annual general meeting[174]. - The board of directors includes both executive and non-executive members, with specific appointments and resignations noted[125]. - The company has established a diversity policy to enhance corporate governance and ensure a diverse board composition[177]. - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, bringing valuable business and professional knowledge[193]. - The company complies with the listing rules requiring at least three independent non-executive directors, with one possessing appropriate professional qualifications or experience in accounting or financial management[197]. - The board retains the authority to decide on all major matters, including policies, overall strategy, budgets, internal controls, risk management, and significant transactions[198]. Risk Management - The company is actively monitoring foreign exchange risks, particularly due to its sales transactions being primarily denominated in RMB while financial statements are presented in HKD[111]. - The impact of the COVID-19 pandemic on the group's operations remains uncertain, and the overall financial impact cannot be reliably estimated as of the report date[168]. Shareholder Information - The company did not recommend any dividend payment for the year ended December 31, 2019[99]. - The company has a stock option plan that allows for the issuance of options up to 10% of the issued shares[154]. - The company can only declare dividends from legally distributable profits and reserves, ensuring compliance with regulations[187]. - The board will continuously review the dividend policy and retains the right to amend it at any time[189]. - The company has made arrangements for directors and senior management to purchase appropriate liability insurance[130].

Financial Performance - The company reported a revenue of HKD 35,252,000 for the six months ended June 30, 2019, a decrease of 61.29% compared to the same period in 2018[7]. - The net loss for the period was HKD 90,328,000, a reduction from a net loss of HKD 181,524,000 in 2018, primarily due to significant reductions in R&D and administrative expenses[7]. - Revenue for the six months ended June 30, 2019, was HKD 35,252 thousand, a decrease from HKD 91,070 thousand in the same period of 2018, representing a decline of 61.3%[67]. - Gross profit for the same period was HKD 2,819 thousand, down from HKD 6,311 thousand in 2018, indicating a decrease of 55.3%[67]. - Operating loss for the six months ended June 30, 2019, was HKD 63,535 thousand, compared to a loss of HKD 178,454 thousand in 2018, showing an improvement of 64.4%[67]. - The net loss for the period was HKD 90,328 thousand, significantly reduced from HKD 181,524 thousand in the previous year, reflecting a decrease of 50.2%[70]. - Research and development expenses were HKD 37,354 thousand, down from HKD 94,988 thousand in 2018, a reduction of 60.7%[67]. - The company reported a basic loss per share from continuing operations of HKD 1.47, compared to HKD 2.65 in the same period of 2018, showing an improvement of 44.4%[68]. - The company reported a loss attributable to owners of approximately HKD 91,659,000 for the six months ended June 30, 2019, compared to a loss of HKD 162,867,000 for the same period in 2018[139]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2019, amounted to HKD 498,176 thousand, an increase from HKD 429,611 thousand at the end of 2018, representing a growth of 16.0%[72]. - The cash flow from operating activities for the six months ended June 30, 2019, was HKD 58,439,000, a significant improvement from a cash outflow of HKD 252,179,000 in the previous year[82]. - The total cash and cash equivalents at the end of the period were HKD 498,176,000, down from HKD 730,058,000 at the end of June 2018[82]. - The net cash used in investing activities was HKD 14,498,000, compared to a cash inflow of HKD 145,477,000 in the previous year[82]. - Financing activities generated a net cash inflow of HKD 26,430,000, down from HKD 55,135,000 in the same period last year[82]. Assets and Liabilities - As of June 30, 2019, the company's total shareholder equity was approximately HKD 1,305.99 million, down from HKD 1,431.92 million as of December 31, 2018[21]. - The company's total assets were approximately HKD 2,041.71 million, a decrease from HKD 2,148.82 million as of December 31, 2018[21]. - The asset-liability ratio as of June 30, 2019, was approximately 37.85%, compared to 32.58% as of December 31, 2018[21]. - The company's trade receivables net amount was HKD 114,617,000 as of June 30, 2019, down from HKD 344,856,000 as of December 31, 2018[154]. - The expected credit loss provision for trade receivables was HKD 12,756,000 as of June 30, 2019, compared to HKD 25,788,000 as of December 31, 2018[156]. - The company’s total assets as of June 30, 2019, included significant investments in construction in progress amounting to HKD 311,698,000[140]. Shareholder Information - As of June 30, 2019, the company had a total of 6,156,928,860 issued shares[42]. - Dr. Liu holds 3,078,500,000 shares, representing 50.00% of the total issued shares, and has a short position of 1,067,862,045 shares, representing 17.34%[34]. - Major shareholders include New Horizon and Wireless Connection Innovative Technology Limited, each holding 3,078,000,000 shares, representing approximately 49.99% of the total issued shares[43]. - The company has adopted sound corporate governance principles to enhance shareholder value and protect shareholder interests[54]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules during the review period[54]. Technology and Innovation - The company is focusing on future technology business, particularly in "Artificial Intelligence Coverage" and "Future Space" technologies, aiming to create smart cities and improve service efficiency[11]. - The "Matrix Intelligent Engine" achieved a peak concurrent processing capacity of 70,000 users per second, demonstrating the effectiveness of the "Artificial Intelligence Coverage Network" in practical applications[11]. - The company has developed a leading "Artificial Intelligence Coverage" technology, achieving real-time dynamic tracking of massive targets, significantly enhancing security capabilities in urban governance and public safety[13]. - The company is actively constructing demonstration zones for the "Artificial Intelligence Coverage Network" in various cities, including Shanghai and Chongqing, to promote nationwide applications[11]. - The company continues to focus on innovative product development and technology solutions primarily in China and Hong Kong[84]. Corporate Governance and Compliance - The audit committee regularly meets with management and external auditors to discuss accounting principles and financial reporting matters[63]. - The company is committed to filling the vacancies of independent non-executive directors to comply with listing rules[60]. - The company has maintained sufficient public float as required by listing rules[62]. - The company’s internal control and risk management systems are regularly reviewed by the audit committee[63]. Changes in Accounting Policies - The group has adopted significant changes in accounting policies due to the application of Hong Kong Financial Reporting Standard No. 16, which affects the treatment of lease assets and liabilities[96]. - Lease liabilities are recognized at the present value of unpaid lease payments, discounted using the group's incremental borrowing rate of approximately 6.5%[104]. - The transition to Hong Kong Financial Reporting Standard No. 16 resulted in the recognition of lease liabilities of HKD 2,592,000 and HKD 33,652,000 for current and non-current liabilities respectively[105]. - The group will recognize lease payments related to short-term leases and low-value assets on a straight-line basis in the income statement[98].