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。 ...

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].