Financial Performance - In 2019, the company's revenue was US$7,153,000, a slight increase from US$6,470,000 in 2018, representing an increase of approximately 10.6%[11] - The gross profit for 2019 was US$2,774,000, up from US$2,455,000 in 2018, indicating a growth of about 13%[11] - The company reported a loss before tax of US$31,750,000 in 2019, compared to a profit of US$22,751,000 in 2018, marking a significant decline[11] - The earnings per share for 2019 was a loss of 17.36 US cents, compared to a profit of 18.75 US cents in 2018[11] - The Group recorded a loss of US$31,867,000 for the year ended December 31, 2019, compared to a profit of US$22,751,000 in 2018, resulting in a loss per share of approximately US17.36 cents[32] - Revenue increased by US$683,000 or 10.6% to US$7,153,000, primarily due to an increase in TV rental income and trading of PCB materials by US$400,000 and US$283,000 respectively[32] - Cost of sales rose by US$364,000 or 9.1%, attributed to increases in direct costs and cost of goods sold of US$206,000 and operating lease payments of US$92,000[35] - Gross profit increased by 13.0% from US$2,455,000 in 2018 to US$2,774,000 in 2019, mainly due to higher TV rental income[36] - The Group's cash and cash equivalents as at 31 December 2019 were mainly denominated in United States Dollars, Hong Kong Dollars, and Renminbi[60] Assets and Liabilities - The total assets as of December 31, 2019, were US$316,063,000, down from US$345,732,000 in 2018, reflecting a decrease of approximately 8.6%[11] - The net assets decreased to US$250,567,000 in 2019 from US$285,833,000 in 2018, a decline of about 12.3%[11] - Current assets amounted to US$9,303,000 as at 31 December 2019, down from US$13,042,000 in 2018, with cash and cash equivalents significantly reduced to US$342,000 from US$2,360,000[56] - Current liabilities increased to US$17,440,000 as at 31 December 2019 from US$8,231,000 in 2018, resulting in a current ratio of 0.53 compared to 1.58 in the previous year[57] - Total equity attributable to the owners of the Company decreased to US$227,553,000 as at 31 December 2019 from US$259,356,000 in 2018, primarily due to operating losses for the year[57] Acquisitions and Strategic Initiatives - The company completed the acquisition of Silkwave Holdings Limited, which is expected to enhance its capabilities in satellite-mobile infotainment services[16] - The company aims to leverage the acquisition of Silkwave to minimize capital outlay while maximizing revenue potential in future business opportunities[16] - The company completed the acquisition of Silkwave Holdings Limited, enhancing its satellite mobile infotainment service capabilities[19] - The company has completed the acquisition of a 20% equity interest in Silkwave, with a call option for an additional 31% equity interest[70] Market and Economic Environment - The economic environment in Hong Kong in 2019 was challenging, with the region experiencing its first recession in a decade due to social unrest and trade tensions[15] - The company anticipates challenges in its trading business due to mobile device saturation in Western countries and ongoing trade tensions between the US and China[74] - The company expects to face challenging times in the upcoming year due to various factors affecting its trading business[74] Technology and Innovation - The company launched the XingYun connected-car multimedia service app, providing audio and video programming trial services throughout China[17] - The company is preparing for the commercial deployment of maritime multimedia services in the South China Sea, diversifying its market[17] - The company received two major US patents for its converged technologies, indicating global recognition of its technological superiority[17] - Successful L-Frequency coordination at WRC-19 reaffirmed the company's priority landing rights globally, validating its spectrum value[17] - The Group's convergent satellite-mobile broadcasting technology completed initial trials covering over 21 cities in China, accumulating more than 1 million kilometers and 87,900 hours of testing[32] - The company aims to leverage its technology and partnerships to create a complete ecosystem for infotainment services, primarily targeting the rapidly growing automobile market in China[70] Corporate Governance - The company has adopted the Corporate Governance Code provisions and is committed to continuously improving its governance practices to maximize shareholder benefits[111] - The Board consists of two executive directors and five non-executive directors, with three being independent, ensuring over one-third independence[122] - The company emphasizes the importance of good corporate governance to safeguard shareholder interests and enhance group performance[111] - The Board will regularly review the effectiveness of the current governance structure to ensure a balance of power and authority[112] - The Company has complied with Listing Rules requiring a sufficient number of independent non-executive directors, with at least one possessing appropriate professional qualifications[127] Board Composition and Responsibilities - The board of directors consists of 7 members, including 2 executive directors, 2 non-executive directors, and 3 independent non-executive directors[86] - The chairman and CEO, Mr. Wong, is responsible for the overall business development and operational strategy of the Group[144] - Each non-executive and independent non-executive director has an initial appointment term of one year, automatically renewable for successive one-year terms[145] - The Company has implemented formal procedures for the appointment of new directors and plans for orderly succession[128] - The Audit Committee has reviewed the audited annual results and consolidated financial statements for the year ended December 31, 2019, discussing accounting policies and internal controls with management[166] Financial Management and Fundraising - The Company raised approximately US$3,720,000 from share placements on 21 January 2019 and 21 October 2019 to provide general working capital[57] - The Company raised approximately HK$24,700,000 (equivalent to approximately US$3,145,000) through the issuance of 37,984,428 new shares pursuant to the Rights Issue completed on March 11, 2020[68] - The company raised approximately US$2,810,000 from the placement of 630,266,440 new shares for general working capital and business development[82] - From the rights issue, the company raised approximately US$3,145,000, with US$121,000 allocated for administrative expenses and US$100,000 for marketing development[82] Employee and Management Information - The average number of employees for the year ended December 31, 2019, was approximately 30, with total staff costs of US$1,353,000[66] - The Group recognized share-based payments expense of US$193,000 related to equity-settled share-based payment transactions for the year ended December 31, 2019[68] - The remuneration policy of the Group is reviewed annually and aligns with prevailing market practices[66]

Financial Performance - For the six months ended June 30, 2019, the company recorded a loss of $6,975,000 compared to a profit of $40,492,000 for the same period in 2018, resulting in a loss per share of $0.22[16] - Revenue for the period was $3,317,000, an increase of $489,000 or 17.3% from $2,828,000 in the same period last year, primarily due to an increase in printed circuit board trading and television rental income[17] - Gross profit increased by $250,000 or 25.2% to $1,242,000, attributed to higher television rental income[19] - The company reported a loss before tax of $(6,906,000) for the six months ended June 30, 2019, compared to a profit of $40,492,000 in the same period of 2018[74] - The total comprehensive loss for the period was $(6,805,000), a significant decrease from the comprehensive income of $40,606,000 in 2018[78] - Basic loss per share for the period was $(0.22), compared to earnings of $1.67 per share in the previous year[78] - The company reported a net loss attributable to shareholders of $(7,033,000) for the six months ended June 30, 2019, compared to a profit of $40,455,000 in the same period of 2018[114] Expenses and Costs - Administrative expenses rose by 2.5% to $1,080,000, mainly due to slight increases in employee costs and office rental expenses[20] - Market development and promotion expenses decreased by 53.6% to $1,028,000, due to cost control measures on business development activities and travel expenses[21] - Financial expenses for the period were $2,798,000, significantly higher than $1,101,000 in the same period last year, primarily due to actual interest expenses on convertible bonds[24] - The average number of employees during the period was approximately 30, with total employee costs amounting to $757,000, an increase from $668,000 in the same period last year[40] - The company incurred employee costs of $757,000 for the six months ended June 30, 2019, compared to $668,000 in the same period of 2018, reflecting an increase of 13.3%[113] - The company reported a total salary and other benefits for key management personnel of $106,000 for the six months ended June 30, 2019, compared to $88,000 for the same period in 2018, reflecting a 20.45% increase[140] Assets and Liabilities - As of June 30, 2019, the company's equity attributable to owners decreased to $249,709,000 from $259,356,000 as of December 31, 2018, due to losses incurred during the period[29] - The group’s convertible bonds amounted to $48,794,000 as of June 30, 2019, down from $51,668,000 as of December 31, 2018, with a debt-to-asset ratio of 14.6%[33] - Non-current assets as of June 30, 2019, totaled $327,888,000, a slight decrease from $332,690,000 as of December 31, 2018[82] - Current liabilities increased to $10,139,000 from $8,231,000 in the previous period, indicating a rise of 23.2%[84] - The company's total equity as of June 30, 2019, was $276,244,000, down from $285,833,000 at the end of 2018[91] - The net current liabilities as of June 30, 2019, were $2,850,000[98] Cash Flow and Financing - The operating cash flow for the six months ended June 30, 2019, was $(2,746,000), compared to $(1,673,000) for the same period in 2018[96] - The financing activities generated a net cash inflow of $1,817,000 for the six months ended June 30, 2019[96] - The cash and cash equivalents at the end of the period were $1,601,000, down from $2,279,000 at the end of the same period in 2018[96] - Chi Capital Holdings Ltd has agreed to provide financial assistance to ensure the group can meet its financial obligations in the foreseeable future[98] - The group’s financial statements were prepared on a going concern basis despite the reported loss[98] Business Operations and Strategy - The company is actively seeking to combine television, telecommunications, and internet technologies in China, focusing on promoting CMMB-based services and solutions globally[11] - The company has completed preliminary experimental tests of its integrated satellite-mobile broadcasting technology, with over 1 million kilometers of road testing conducted[12] - The application "Nebula Audio-Visual" has been launched on Android and iOS platforms, allowing users to enjoy live entertainment broadcasting services for free[12] - The company aims to establish partnerships with OEMs to design and pre-install its technology in new vehicles, enhancing its market presence in the automotive sector[12] - The company anticipates new opportunities and synergies for television operators due to the potential decline trend caused by FCC spectrum reallocation[47] - The company anticipates challenges in its trading business over the next year due to the saturation of mobile devices in Western countries and ongoing trade tensions between the US and China[49] Investments and Acquisitions - The company completed the acquisition of 20% of Silkwave Holdings for a total consideration of $240 million, which included $94 million in cash and $96 million in convertible bonds[120] - The company holds a 20% stake in Silkwave Holdings and has an option to acquire an additional 31% stake, aiming to create a complete industry ecosystem for information and entertainment services[48] - Silkwave Holdings has selected a leading investment bank to lead its fundraising activities, with proceeds intended for the construction of next-generation satellites and related infrastructure[48] Shareholder Information - As of June 30, 2019, Mr. Huang Qiu Zhi holds 780,070,003 shares, representing approximately 24.75% of the company's ordinary shares[54] - Chi Capital holds 738,310,003 shares, accounting for approximately 23.43% of the company's ordinary shares[62] - The company has not engaged in any share buybacks or redemptions during the reporting period[66] - The company did not declare any dividends for the six months ended June 30, 2019, and 2018[117] Compliance and Governance - The company has fully complied with the corporate governance code, although it deviated from the code regarding the separation of the roles of Chairman and CEO[68] - The Audit Committee, chaired by Dr. Li Shan, has reviewed the accounting principles and internal controls during the period[70] - The company has adopted a strict code of conduct for directors' securities transactions, ensuring compliance with the established standards[67] Miscellaneous - The company has not made any significant investments as of June 30, 2019, and there are no major post-reporting date events[43] - The company has not engaged in any significant off-balance sheet transactions as of June 30, 2019[36] - The company has not encountered significant legal or regulatory obstacles in obtaining necessary broadcasting licenses for its operations[121] - There were no significant capital expenditures contracted but not provided for in the financial statements as of June 30, 2019[141]

Financial Performance - The company achieved a turnaround with a profit of $22.751 million in 2018, compared to a loss of $6.443 million in 2017, marking a significant improvement[9]. - Revenue for 2018 was $6.470 million, a decrease of 8.0% from $7.034 million in 2017[9]. - Gross profit for 2018 was $2.455 million, down from $2.730 million in 2017, resulting in a gross margin of approximately 38.0%[9]. - The company recorded a profit of approximately $22,751,000 for the fiscal year ending December 31, 2018, compared to a loss of $6,443,000 in 2017, marking a turnaround from loss to profit[25]. - Earnings per share for the fiscal year were approximately $0.94, up from a loss of $0.32 per share in 2017[25]. - Revenue for the year was $6,470,000, a decrease of $564,000 or 8.0% from $7,034,000 in 2017, primarily due to a reduction in printed circuit board trading[25]. - The company’s gross profit decreased by 10.1% from $2,730,000 in 2017 to $2,455,000 in 2018, attributed to low margins from television rentals[25]. Assets and Equity - Total assets increased to $345.732 million in 2018, up from $220.545 million in 2017[9]. - Total equity increased to approximately $259,356,000 as of December 31, 2018, compared to $172,110,000 in 2017, primarily due to funds raised from share placements[38]. - Current assets were approximately $13,042,000 as of December 31, 2018, down from $19,259,000 in 2017, with cash and bank balances at $2,360,000 compared to $1,181,000 in 2017[38]. - The company reported a significant increase in convertible bonds to $51,668,000 as of December 31, 2018, up from $16,145,000 in 2017, with a debt-to-asset ratio of 14.9%[40]. Corporate Governance - The board consists of seven members, including two executive directors and five non-executive directors, with three independent non-executive directors, representing over one-third of the board[79]. - The company has adopted the corporate governance code as per the listing rules, ensuring high standards of corporate governance to protect shareholder interests[75]. - The chairman and CEO roles are held by the same individual, which deviates from the corporate governance code, but the board believes this structure benefits the company due to the chairman's extensive experience[75]. - The company has confirmed that all directors complied with the securities trading standards during the fiscal year ending December 31, 2018[77]. - The independent non-executive directors were unable to attend the annual general meeting held on May 28, 2018, which may affect shareholder engagement[76]. - The company emphasizes the importance of a balanced board composition to ensure independent and objective judgment[79]. - The management team includes experienced professionals with over 20 years in CMMB/DTH chipset design and network system integration[72]. - The company is committed to continuously reviewing and improving its corporate governance practices[75]. Risk Management - The company has established a risk management framework to identify, measure, manage, and control various risks, including operational and financial risks[128]. - The internal audit department ensures the effectiveness of internal controls to protect shareholder investments and company assets[125]. - The board is responsible for monitoring the overall risk management framework and evaluating the effectiveness of risk control measures[128]. Environmental and Social Responsibility - The company emphasizes corporate social responsibility, integrating environmental, social, and governance standards into daily operations[129]. - The company is committed to sustainable development, integrating environmental, social, and governance factors into its overall business strategy[150]. - The company has adopted a "Reduce, Reuse, Restore, and Recycle" policy to support its environmental goals[151]. - The company aims to minimize its operational impact on the environment, health, and safety while complying with relevant environmental laws[151]. - The company is focused on improving energy efficiency as a major challenge due to high energy consumption in production and broadcasting[151]. - The company successfully reduced CO2 emissions by 5.5 kg through a new aluminum can and plastic bottle recycling initiative[156]. - The company achieved a 15% reduction in CO2 emissions from electricity usage, totaling 40,244 kg in 2018 compared to 47,339 kg in 2017[162]. - The total CO2 emissions from transportation decreased by 34% to 20,887 kg in 2018, down from 31,823 kg in 2017, attributed to reduced private car usage[154]. Employee and Workforce Management - The average number of employees remained stable at approximately 30, with total employee costs around $1,432,000 for the year ended December 31, 2018[48]. - Employee turnover rate improved to 9% in 2018, down from 17% in 2017, primarily due to the closure and relocation of one office[169]. - The workforce consists of approximately 30 employees, with 67% male and 33% female representation, compared to 71% male and 29% female in 2017[169]. - Full-time employees account for 70% of the workforce, while consultants and part-time employees make up 30%, a shift from 44% and 56% respectively in 2017[169]. - The average training hours per employee in Hong Kong increased to 25 hours in 2018, a 56% improvement from 16 hours in 2017[175]. - The company encourages employee participation in professional training and technical enhancement activities, sponsoring attendance at relevant conferences and exhibitions[175]. Business Development and Strategy - The company signed memorandums of understanding with 7 major automobile manufacturers to pre-install TM-Box in their distribution networks[13]. - A total of 11 standards for satellite mobile multimedia vehicle network integration and transmission technology were released, leading the ecosystem development[14]. - The company conducted technology testing with 400 concept cars, covering over 1 million kilometers and 87,900 hours of testing across 16 cities and 14 provinces[14]. - The launch of the "Star Cloud Audio-Visual" application for Android and iOS allows users to access over 150 audio and video channels[14]. - The company plans to focus on developing value-added services in 2019, including live and on-demand in-vehicle multimedia information entertainment services[14]. - The company aims to expand its business overseas, replicating its ecosystem model from China to rapidly grow in international markets[14]. - China is expected to become the first major market for the company's services, given its rapid development as the world's largest automotive market[54]. Shareholder Engagement - The company emphasizes the importance of establishing two-way communication channels with investors and shareholders through various platforms[136]. - The annual general meeting serves as a significant discussion platform for shareholders to engage with the management team[139]. - Shareholders holding at least 10% of the voting rights can request the board to convene a general meeting[145]. - The company provides regular updates to investors through annual and interim reports, as well as announcements of significant events[142].