Revenue and Profit Performance - Revenue for the period decreased by approximately $0.5 million to $3.1 million, primarily due to a $1.3 million decrease in PCB and AI materials trading, offset by an $0.8 million increase in TV rental income[4] - Gross profit increased from $1.2 million in 2023 to $1.5 million in 2024, driven by higher margins from TV rental income[4] - The Group recorded a loss of approximately $0.1 million for the six months ended 30 June 2024, compared to a loss of $2.2 million in the same period in 2023[4] - Loss per share for the period was $0.02 cents, compared to $0.19 cents in the same period in 2023[4] - Revenue for the six months ended 30 June 2024 decreased to $3,132 thousand, compared to $3,588 thousand in the same period in 2023, representing a decline of 12.7%[89] - Gross profit increased to $1,452 thousand in H1 2024, up from $1,178 thousand in H1 2023, reflecting a 23.3% growth[89] - Loss for the period improved significantly to $134 thousand in H1 2024, compared to a loss of $2,201 thousand in H1 2023[89] - Total comprehensive expense for the period was $1,557 thousand in H1 2024, down from $2,958 thousand in H1 2023[89] - Loss attributable to owners of the company was $498 thousand in H1 2024, a significant improvement from $2,059 thousand in H1 2023[90] - Net loss for the six months ended 30 June 2024 was approximately $0.1 million[96] - Revenue from major products and services for the six months ended 30 June 2024 was $3.132 million, with $1.385 million from trading of PCB and AI-related products and $1.747 million from transmission and broadcasting services[108] - Segment revenue for the six months ended 30 June 2024 was $3.132 million, with $1.385 million from the trading business and $1.747 million from the CMMB business[104] - Segment profit for the six months ended 30 June 2024 was $750,000, with a loss of $57,000 in the trading business and a profit of $807,000 in the CMMB business[104] - Revenue from major products and services for the six months ended 30 June 2023 was $3.588 million, with $2.659 million from trading of PCB and AI-related products and $929,000 from transmission and broadcasting services[108] - Segment revenue for the six months ended 30 June 2023 was $3.588 million, with $2.659 million from the trading business and $929,000 from the CMMB business[106] - Segment profit for the six months ended 30 June 2023 was $203,000, with a profit of $221,000 in the trading business and a loss of $18,000 in the CMMB business[106] Cost and Expense Management - Cost of sales decreased by approximately $0.7 million due to lower direct costs and sales costs[4] - Administrative expenses remained steady at approximately $0.5 million compared to the same period in 2023[4] - Market development and promotion expenses decreased from approximately US$0.4 million to US$0.1 million due to tighter cost control[5][10] - Finance costs for the period amounted to approximately US$0.4 million, mainly from effective interest expense on convertible notes[6][11] - Staff costs for the period amounted to approximately US$0.3 million, compared to US$0.4 million in the six months ended 30 June 2023[32] - Market development and promotion expenses for the six months ended 30 June 2024 were $41,000, compared to $450,000 for the same period in 2023[104][106] - Unallocated expenses for the six months ended 30 June 2024 were $190,000, compared to $251,000 for the same period in 2023[104][106] - Staff costs, including Directors' remuneration, were $306,000 for the six months ended 30 June 2024, down from $386,000 in the same period in 2023[115] - Legal and professional fees increased to $76,000 for the six months ended 30 June 2024, up from $25,000 in the same period in 2023[115] Financial Position and Assets - The Group recorded a net loss of approximately US$0.1 million during the period, with net current assets of approximately US$6.5 million as of 30 June 2024[15][18] - Convertible notes as of 30 June 2024 amounted to approximately US$9.2 million, with a gearing ratio of approximately 21.0%[20][26] - The Group maintained cash and cash equivalents of approximately US$0.7 million as of 30 June 2024[15][18] - Non-current assets decreased slightly to $34,313 thousand as of 30 June 2024, compared to $34,763 thousand as of 31 December 2023[91] - Current assets decreased to $9,538 thousand as of 30 June 2024, down from $10,022 thousand as of 31 December 2023[91] - Net current assets stood at $6,467 thousand as of 30 June 2024, compared to $7,281 thousand as of 31 December 2023[91] - Total equity decreased to $31,565 thousand as of 30 June 2024, down from $33,119 thousand as of 31 December 2023[92] - Equity attributable to owners of the company decreased to $25,922 thousand as of 30 June 2024, compared to $27,840 thousand as of 31 December 2023[92] - Net current assets as of 30 June 2024 were approximately $6.5 million[96] - Net cash generated from operating activities for the six months ended 30 June 2024 was $510,000, compared to a net cash used of $2.127 million in the same period in 2023[94] - Net cash used in financing activities for the six months ended 30 June 2024 was $516,000, compared to net cash generated of $688,000 in the same period in 2023[94] - Cash and cash equivalents at the end of the period were $722,000, down from $727,000 at the beginning of the period[94] - Accumulated losses as of 30 June 2024 were $266.275 million, compared to $265.777 million at the end of 2023[93] - Total comprehensive expense for the six months ended 30 June 2024 was $2.629 million, compared to $2.71 million in the same period in 2023[93] - The company's share capital remained unchanged at $46.012 million as of 30 June 2024[93] - The carrying value of spectrum usage rights was $23,807,000 as of 30 June 2024, with no impairment loss recognized for the period[117][118][119] - The recoverable amount of spectrum usage rights is determined using a VIU calculation with a discount rate of 15.26% (up from 14.16% in the previous period)[120] - The cost of equity for the year is 13.43%, calculated using a risk-free rate of 3.87%, equity beta of 0.91, and market risk premium of 7.17%[120] - The cost of debt for the year is estimated at 8.5%, based on the US Prime Lending Rate[120] - The weight of debt and equity is estimated at 72% and 28% respectively, compared to 47% and 53% in the previous period[120] - The specific risk premium for the year is 3.5%, up from 3% in the previous period[120] - Cash flow projections for spectrum usage rights beyond the three-year period use a steady growth rate of 2.18% per annum[120] - Trade receivables decreased from $3.8 million in December 2023 to $2.3 million in June 2024, with over 120 days receivables dropping from $1.7 million to $606,000[124] - Trade payables decreased from $797,000 in December 2023 to $532,000 in June 2024, while accruals increased from $767,000 to $1.5 million[126] - The liability component of 2028 Convertible Notes increased from $8.9 million in December 2023 to $9.2 million in June 2024[128] - As of 30 June 2024, the amount due from CCH, a related company controlled by the Chairman, was USD 5,867,000, compared to USD 5,509,000 as of 31 December 2023[139] Convertible Notes and Share Issuance - CCH holds convertible notes with a principal amount of US$12,000,000, convertible into 266,742,857 shares, representing 14.88% of the total issued shares as of 30 June 2024[46][52] - The company issued USD 96,000,000 convertible notes (2025 CN) on 29 May 2018, with a maturity date of 28 May 2025, convertible at HK$0.4 per share, representing 41.5% of the total issued shares on a fully diluted basis[58][59] - The 2025 CN was split into a liability component of USD 44,137,000 and an equity component of USD 51,863,000, with the liability component measured at an effective interest rate of 11.41% per annum[60][63] - The conversion price and number of shares for the 2025 CN were adjusted to HK$8 and 84,390,000 shares respectively after a share consolidation on 12 November 2019, and further adjusted to HK$8.088 and 83,471,810 shares retrospectively from 18 February 2020[60][63] - On 29 June 2021, the company entered into a subscription agreement to issue USD 65,000,000 convertible notes (2028 CN), which will mature on the seventh anniversary of the issue date, offsetting the 2025 CN[61][63] - The conversion price of HK$0.35 per share for the 2028 CN represents a premium of 22.81% to the closing price on 29 June 2021, with a maximum of 1,444,857,142 shares issuable upon full conversion[62][63] - As of 30 June 2024, the outstanding principal amount of the 2028 CN is USD 12,000,000, which, if fully converted, would increase the issued shares by 266,742,857, representing 14.88% of the issued shares as of 30 June 2024[65][68] - The conversion of the 2028 CN would dilute the equity interest of substantial shareholders, with CCH's shareholding decreasing from 56.42% to 49.93% upon full conversion[67] - The conversion of the 2028 convertible notes will not result in the number of shares held by the public falling below 25% of the issued shares[70][76] - The total number of issued shares as of 30 June 2024 is 1,792,389,888[46][50][51] - The 2023 Share Option Scheme had 103,998,988 options available for grant as of 1 January 2024, increasing to 179,238,988 by 30 June 2024[53][55] - No shares were issued under the 2023 Share Option Scheme during the period, representing 0% of the weighted average number of shares[57] - No share options were granted, exercised, lapsed, or canceled under the 2023 Share Option Scheme during the period[57] - The number of share options available for grant under the 2023 Share Option Scheme increased from 103,998,988 as of 1 January 2024 to 179,238,988 as of 30 June 2024[141] Strategic Initiatives and Partnerships - The company plans to deploy a Low-Earth-Orbit (LEO) satellite constellation to deliver low-latency voice and broadband internet services across Asia[40] - The company will utilize a geostationary satellite platform to distribute popular content, digital infotainment, enterprise data services, and essential government information with minimal data cost for users[40] - The satellite network will provide robust broadband solutions, utilizing advanced data analytics to enhance network performance and user experience[40] - Strategic partnerships with governments, technology providers, and local stakeholders will be crucial for the company's success[41] - The company aims to address the increasing demand for high-speed, reliable internet in underserved and remote areas[39] - The company holds a 20% equity interest in Silkwave Holdings Limited, with a call option to acquire an additional 31%[121] - Silkwave indirectly holds a geosynchronous L-band satellite operating platform with 40MHz spectrum frequency covering China and Asia[121][122] - The platform includes the AsiaStar satellite capacity, network solutions, terminal applications, and a Silkwave-1 satellite design under procurement[121][122] - The satellite platform aims to deliver digital multimedia and internet-based content services to vehicles and mobile devices across China and the Asia-Pacific region[121][122] - Silkwave's satellite-related assets were impaired to approximately $1.2 million due to lower value in use compared to carrying amount[123] Corporate Governance and Compliance - The company did not declare any interim dividend for the six months ended 30 June 2024[138] - The company has not purchased, sold, or redeemed any of its listed securities during the period[74][80] - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the Model Code for Securities Transactions by Directors of Listed Issuers[75][81] - The company has deviated from the CG Code provision C.2.1, as the roles of chairman and chief executive are not separate, with Mr. Wong Chau Chi holding both positions[82][84] - The Audit Committee, comprising independent non-executive directors, reviewed and recommended the adoption of the unaudited condensed consolidated financial statements for the period[83][85] - The company has a shareholder communication policy in place to facilitate efficient and sound communication with shareholders and other stakeholders[87][88] - The company's remuneration policy is reviewed annually and is in line with prevailing market practices[32] - The total compensation for key management personnel remained unchanged at USD 40,000 for the six months ended 30 June 2024 compared to the same period in 2023[143] Legal and Regulatory Matters - The group faces potential litigation in the US related to satellite assets in Asia and Africa, with claims including breach of contract and fraud[134] - The company proposed a share consolidation (20:1), capital reduction (HK$4.00 to HK$0.01), and share subdivision (1:400) on 8 August 2024[133] - The company has proposed a share consolidation, capital reduction, and share subdivision, with a ratio of 20 existing shares with a par value of HKD 0.20 each to be consolidated into 1 share with a par value of HKD 4.00, followed by a capital reduction of HKD 3.99 per share, reducing the par value to HKD 0.01, and then subdividing each unissued share into 400 new shares with a par value of HKD 0.01[136] Related Party Transactions - The company paid USD 12,000 in rental fees to CCH, a related party, during the six months ended 30 June 2024, the same amount as in the corresponding period in 2023[142] - As of 30 June 2024, the amount due from CCH, a related company controlled by the Chairman, was USD 5,867,000, compared to USD 5,509,000 as of 31 December 2023[139] Taxation - Hong Kong Profits Tax is calculated at 16.5% for the period, with the first HK$2,000,000 of assessable profit taxed at 8.25% under the two-tiered profits tax rates regime[111][112] - US Income Tax is charged at 24% on estimated assessable profits for the six months ended 30 June 2024[113][114] - Taiwan Income Tax is charged at 20% on estimated assessable profits, but no provision was made as the Group had no assessable profit in Taiwan for both periods[113][114] - PRC subsidiaries are subject to a 25% tax rate under the EIT Law, but no provision for PRC income tax was made as there was no taxable income for both periods[113][114] Employee and Management - The average number of employees for the period was approximately 23, down from 25 in the six months ended 30 June 2023[32] - Staff costs for the period amounted to approximately US$0.3 million, compared to US$0.4 million in the six months ended 30 June 2023[32] - Staff costs, including Directors' remuneration, were $306,000 for the six months ended 30 June 2024, down from $386,000 in the same period in 2023[115] - The total compensation for key management personnel remained unchanged at USD 40,000 for the six months ended 30 June 2024 compared to the same period in 2023[143] Investments and Acquisitions - The company did not make any significant investments as of 30 June 2024[38] - The company did not have any material acquisitions or disposals of subsidiaries, associates, and joint ventures during the period[34] - The company holds a 20% equity interest in Silkwave Holdings Limited, with a call option to acquire an additional 31%[121] - Silkwave indirectly holds a geosynchronous L-band satellite operating platform with 40MHz spectrum frequency covering China and Asia[121][122] - The platform includes the AsiaStar satellite capacity, network solutions, terminal applications, and a Silkwave-1 satellite design under procurement[121][122] - The satellite platform aims to deliver digital multimedia and internet-based content services to vehicles and mobile devices across China and the Asia-Pacific region[121][122] - Silkwave's satellite-related assets were impaired to approximately $1.2 million due to lower value in use compared to carrying amount

Financial Performance - Revenue decreased by approximately 12.7% to about $3.1 million[1] - Loss attributable to owners for the period was approximately $0.5 million, with a total comprehensive loss of about $1.9 million[1] - Basic and diluted loss per share was approximately $0.02[1] - Total comprehensive loss for the period was $1.557 million compared to $2.958 million in the previous year[3] - The group reported a net loss of $134,000 for the six months ended June 30, 2024, compared to a net loss of $2,201,000 in the same period of 2023[10] - Basic and diluted loss per share for the six months ended June 30, 2024, was $(0.28), compared to $(1.88) for the same period in 2023[16] - Revenue for the period was approximately $3.1 million, a decrease of about $0.5 million from $3.6 million in the same period last year, primarily due to a reduction in printed circuit board and AI material trading by approximately $1.3 million[33] Profitability and Expenses - Gross profit increased to $1.452 million from $1.178 million year-on-year, reflecting a significant improvement[2] - Administrative expenses were $548,000, slightly up from $540,000 in the previous year[2] - Financial costs decreased to $323,000 from $492,000, indicating improved cost management[2] - Employee costs, including directors' remuneration and retirement benefits, amounted to $306,000, a decrease from $386,000 in the prior year[14] - The company incurred legal and professional fees of $76,000 during the period, compared to $25,000 in the previous year[14] - The group’s financial costs for the period were approximately $0.4 million, compared to about $0.5 million in the same period last year[38] - The company incurred an impairment loss of approximately $0.6 million on intangible assets due to delays in the upgrade of certain LPTV stations[40] Assets and Liabilities - Non-current assets remained stable at approximately $34.313 million[4] - Current assets decreased to $9.538 million from $10.022 million, indicating a reduction in liquidity[4] - Total equity decreased to $31.572 million from $33.119 million, reflecting a decline in shareholder value[5] - The total trade receivables decreased to $2.326 million as of June 30, 2024, from $3.838 million as of December 31, 2023[22] - Trade payables totaled $2.003 million as of June 30, 2024, compared to $1.564 million as of December 31, 2023[23] - The group’s convertible bonds amounted to approximately $9.2 million as of June 30, 2024, compared to $8.9 million as of December 31, 2023[45] - The asset-liability ratio was approximately 21.0% as of June 30, 2024, reflecting a stable financial condition[45] Business Segments - The trading business segment generated revenue of $1,385,000, down 47.9% from $2,659,000 in the prior year[11] - The CMMB business segment saw revenue increase to $1,747,000, up 88.0% from $929,000 in the previous year[11] Future Plans and Strategies - The company plans to lease spare satellite bandwidth to other aerospace operators instead of developing satellite internet services in China[20] - The management remains confident in the regulatory approval process and is exploring the possibility of launching satellite data transmission services in the ASEAN region[21] - The company plans to deploy a Low Earth Orbit (LEO) satellite constellation to provide low-latency voice and broadband internet services across Asia, addressing the growing demand for high-speed, reliable internet in underserved and remote areas[55] - The company aims to enhance network performance and user experience through advanced data analytics in its satellite network solutions[55] - The company is actively seeking to improve its financial situation by refinancing its debts and broadening its revenue sources[43] Governance and Compliance - The board has adopted a corporate governance code and is committed to maintaining high standards of governance, although it has deviated from the code regarding the separation of the roles of Chairman and CEO[58] - The company has established a shareholder communication policy to facilitate effective communication between the company, shareholders, and other stakeholders[60] - The audit committee has reviewed and discussed the accounting principles and policies adopted by the group, recommending the board to approve the unaudited consolidated financial statements for the period[59] Miscellaneous - The company did not declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[30] - The group has not engaged in any significant off-balance sheet transactions as of June 30, 2024, consistent with the previous year[48] - The company has no significant investments as of June 30, 2024, and no major acquisitions or disposals of subsidiaries, associates, or joint ventures during the period[54][53] - The group believes that foreign exchange risk has minimal impact, as most assets, liabilities, and transactions are denominated in USD, and no hedging arrangements were made during the period[49]

Financial Performance - In 2023, Silkwave Inc. reported revenue of $7,338,000, a decrease of 14.2% compared to $8,551,000 in 2022[10]. - The gross profit for 2023 was $2,524,000, slightly down from $2,462,000 in the previous year, indicating a gross margin of approximately 34.4%[10]. - The loss before tax for the year was $74,448,000, compared to a loss of $29,510,000 in 2022, reflecting a significant increase in losses[10]. - The net assets of Silkwave Inc. fell to $33,119,000 in 2023, down from $97,014,000 in 2022, indicating a significant reduction in equity[10]. - For the year ended December 31, 2023, the Group recorded a loss of approximately US$75.0 million, compared to a loss of approximately US$29.5 million in 2022[33]. - Revenue for the year was approximately US$7.3 million, a decrease of approximately US$1.3 million from US$8.6 million in 2022, primarily due to sluggish economic conditions[34]. - Gross profit increased from approximately US$2.5 million in 2022 to approximately US$2.6 million in 2023, mainly driven by higher broadcasting service income[36]. - The Group's net assets per share decreased to approximately US$0.02 in 2023 from approximately US$0.06 in 2022[33]. - The Group recorded a loss of approximately US$75.0 million for the year ended December 31, 2023, compared to a loss of approximately US$29.5 million in 2022, resulting in a loss per share of approximately US$0.04[38]. - Revenue for the year was approximately US$7.3 million, a decrease of approximately US$1.3 million from US$8.6 million in 2022, primarily due to a decline in trade and CMMB business amid a sluggish economic environment[39]. - Administrative expenses decreased from approximately US$3.5 million in 2022 to approximately US$3.0 million in 2023, attributed to cost control measures implemented during the year[44]. - Finance costs decreased significantly to approximately US$0.8 million in 2023 from approximately US$2.4 million in 2022, as the Group did not incur any bank or other borrowings during the year[46]. - An impairment loss of approximately US$20.2 million was recognized on intangible assets for the year, compared to approximately US$3.6 million in 2022, due to a decline in the recoverable amount of cash-generating units[58]. - Total equity attributable to the owners of the Company decreased to approximately US$27.8 million as of December 31, 2023, from approximately US$83.6 million in 2022, mainly due to the loss incurred during the year[66]. - Current assets amounted to approximately US$10.0 million, slightly increasing from approximately US$9.9 million in 2022, with cash and cash equivalents decreasing to approximately US$0.7 million[67]. - Current liabilities decreased to approximately US$2.7 million from approximately US$3.8 million in 2022, resulting in a current ratio of approximately 3.66, up from 2.58 in 2022[68]. - The gearing ratio as of December 31, 2023, was approximately 19.9%, an increase from 11.9% in 2022, indicating a stable financial position[75]. Business Strategy and Operations - The company is exploring data connectivity projects for remote areas, anticipating a pivotal role for satellite platforms in future connectivity technology[15]. - Silkwave Inc. aims to adopt an asset-light model to enhance profitability while expanding its trading activities[16]. - The company expects ongoing challenges in the business environment due to global economic conditions and unstable monetary policies[17]. - Technological advancements, including AI and next-generation connectivity, are transforming consumer and commercial devices, which the company plans to leverage[17]. - The Trading business remains steady, with a focus on diversifying PCB trading with more sophisticated technology components used in AI applications[31]. - The Group aims to enhance profitability and margins in the Trading Business by diversifying the range of products, particularly in high-tech components and connectivity devices[32]. - The Group is optimistic about the potential use of satellite-based in-vehicle infotainment systems, especially with the transition to electric vehicles[26]. - The Group is exploring alternative use cases for its satellite platform, including renting out spare satellite capacity and providing satellite-related services[26]. - The Group is actively exploring new business opportunities to diversify its revenue streams and enhance returns for shareholders[91]. - The Group has initiated a new trading division focused on AI products and aims to expand its trading operations to other Asian cities[101]. - The development of satellite connected-car multimedia services is promising, with significant market potential driven by increasing consumer demand for in-car entertainment and connectivity[109][110]. - Satellite connectivity offers advantages such as broader coverage and reliable connectivity in remote areas, enhancing the multimedia experience within vehicles[109][114]. - The Group is adopting a cautious approach to navigate regulatory requirements and privacy concerns associated with satellite connected-car multimedia services[113][115]. - The focus on expanding trade operations into other Asian cities is part of the Group's strategy to enhance its market presence[105]. Corporate Governance - The Board of Directors consists of 10 members, including 4 executive directors, 3 non-executive directors, and 3 independent non-executive directors[117][123]. - The company emphasizes the importance of corporate governance and strategic execution in its operations[138]. - The directors collectively bring a wealth of knowledge from various sectors, enhancing the company's strategic decision-making capabilities[130][140]. - The company is committed to establishing good corporate governance practices to ensure transparency and accountability to shareholders[152]. - The Board has adopted corporate governance practices that align with or are more restrictive than the requirements set out in the Corporate Governance Code, with compliance noted for the year ended December 31, 2023[153]. - The current organizational structure allows Mr. Wong to serve as both chairman and chief executive, which the Board believes provides strong and consistent leadership[154]. - The Board comprises ten Directors, including four executive Directors and three independent non-executive Directors, ensuring a balanced governance structure[159]. - The management is responsible for day-to-day operations, while the Board monitors financial performance and sets strategic directions for the Group's business[161]. - The Board reserves matters such as material investment decisions and approving financial statements, which are implemented by management[162]. - The company has a clear division of responsibilities between the Board and management, ensuring effective internal control and check-and-balance mechanisms[160]. - The Board will continue to review and improve corporate governance practices to optimize returns for shareholders[155]. - The Company has received confirmations of independence from all independent non-executive Directors, meeting the criteria set out in Rule 3.13 of the Listing Rules[172]. - The Audit Committee, comprising independent non-executive Directors, reviewed and discussed the annual report for the year ended December 31, 2023[182]. - The Company has established three Board committees to assist in executing its duties and facilitate effective management[180]. - The Audit Committee reviewed the effectiveness of the Group's risk management and internal control systems[189]. - The Audit Committee recommended the reappointment of the external auditor[189]. - The Company adopted a Nomination Policy to enhance board diversity and effectiveness, considering factors such as qualifications, skills, and experience[196]. - The Nomination Policy includes a succession plan to identify potential candidates for Board vacancies due to various circumstances[198]. - The Company Secretary ensures compliance with Board procedures and advises on compliance matters[165]. - Board papers are dispatched to Directors at least three days before meetings to ensure adequate preparation[164]. - The Chairman ensures equal opportunities for all Directors to express their views during meetings[165]. - All Directors confirmed they dedicated sufficient time and attention to the Company's affairs during the reporting period[175]. - The Audit Committee held 3 meetings during the year ended December 31, 2023, with all members attending all meetings except for one member who resigned[188]. - The Nomination Committee held 1 meeting during the year ended December 31, 2023, with full attendance from all members[192]. - The Nomination Committee assessed the independence of independent non-executive Directors and reviewed the structure and composition of the Board[194]. - The Company is focused on identifying potential candidates for key positions through recommendations from board members, professional search firms, and shareholders[200]. - Evaluation of candidates is based on approved selection criteria, including resume reviews and background checks[200]. - Shortlisted candidates' profiles are reviewed, and interviews are conducted as part of the selection process[200]. - Recommendations on selected candidates are made to the board for final approval[200].

Financial Performance - Revenue for the year ended December 31, 2023, was $7,338,000, a decrease of 14.2% from $8,551,000 in 2022[3] - Gross profit increased by 2.5% to $2,524,000 compared to $2,462,000 in the previous year[3] - Operating loss improved by 53.0%, reducing from $5,387,000 in 2022 to $2,531,000 in 2023[3] - The company reported a total comprehensive loss of $75,041,000 for the year, compared to $31,655,000 in 2022[7] - Basic and diluted loss per share increased to $4.0 from $2.3 in the previous year[7] - The total loss for the year was $74,968,000, compared to a loss of $29,527,000 in the previous year, indicating a significant increase in losses[23] - The group recorded a loss of approximately $75.0 million for the year ended December 31, 2023, compared to a loss of about $29.5 million in 2022[51] - Revenue for the year was approximately $7.3 million, a decrease of about $1.3 million from $8.6 million in 2022, primarily due to reduced income from printed circuit boards and AI materials trading[52] Asset and Liability Management - Total assets decreased by 61.0% to $44,785,000, down from $114,821,000 in the previous year[3] - Total liabilities decreased by 34.5% to $11,666,000 compared to $17,807,000 in 2022[3] - Net asset value fell by 65.9% to $33,119,000 from $97,014,000 in the previous year[3] - CMMB business segment assets decreased to $26,378,000 from $45,510,000, a reduction of 42%[24] - Trade business segment assets increased slightly to $1,188,000 from $947,000, a growth of 25.5%[24] - Current assets were approximately $10.0 million, slightly up from $9.9 million in 2022, with cash and cash equivalents decreasing to about $0.7 million from $1.7 million[65] - Current liabilities decreased to approximately $2.7 million from $3.8 million in 2022, resulting in a current ratio of approximately 3.66, up from 2.58 in the previous year[67] - The asset-liability ratio was approximately 19.9%, reflecting a solid financial position, with no bank borrowings reported as of December 31, 2023[69] Impairment and Losses - The company reported a significant increase in losses attributable to joint ventures, rising 144.7% to $49,599,000 from $20,269,000[3] - Impairment losses recognized on intangible assets surged by 454.4%, from $3,648,000 in 2022 to $20,224,000 in 2023[3] - The group reported an impairment loss on intangible assets of approximately $20.2 million for the year, compared to $3.6 million in 2022, due to challenges in the LPTV market[63] - The group holds a 20% stake in Silkwave Holdings, which incurred a share of losses of approximately $49.6 million, up from $20.3 million in 2022, primarily due to delays in regulatory approvals in China[59] Revenue Sources - CMMB business segment revenue was $2,352,000, down from $2,722,000, representing a decline of 13.6%[23] - Trade business segment revenue was $4,986,000, down from $5,829,000, a decrease of 14.5%[23] - Revenue from external customers in the United States was $2,304,000, down from $2,433,000, a decline of 5.3%[28] - Revenue from external customers in Taiwan was $3,591,000, down from $4,067,000, a decrease of 11.7%[28] Cost Management - The company's material costs decreased from $5,640 thousand in 2022 to $4,719 thousand in 2023, indicating a reduction in overall expenses[34] - The company reported a significant decrease in market development expenses from $1,268 thousand in 2022 to $137 thousand in 2023[34] - The company’s interest expenses on convertible bonds decreased from $2,363 thousand in 2022 to $835 thousand in 2023[5] - Administrative expenses decreased from approximately $3.5 million in 2022 to about $3.0 million in the current year, mainly due to cost control measures[55] - Employee costs for the year were approximately $2.3 million, down from $2.8 million in 2022, with an average employee count of about 22[76] Shareholder Information - The company did not recommend any final dividend for the year ended December 31, 2023[44] - The board does not recommend the declaration of a final dividend for the year ended December 31, 2023[64] - The group issued 891,714,258 new shares through the conversion of convertible bonds during the year, increasing the total issued shares to 1,792,389,888 by December 31, 2023[40] - The group issued 72,700,000 new shares through stock options and 177,828,570 new shares through convertible bonds during the year[80] Corporate Governance - The company has adopted the revised standard code for securities trading by directors, confirming compliance for the year ending December 31, 2023[86] - The audit committee, consisting of three members, has reviewed the annual performance and consolidated financial statements for the year ending December 31, 2023[87] - The group's auditor confirmed that the unaudited consolidated financial statements align with the draft consolidated financial statements for the year ending December 31, 2023[88] - The company has adopted the corporate governance code and has complied with all applicable provisions, except for the separation of the roles of Chairman and CEO[89] - The company believes that the dual role of the Chairman and CEO, held by Mr. Huang since May 19, 2008, is beneficial for overseeing operations and strategic planning[89] Business Development - The group is actively exploring new business opportunities and diversifying revenue sources to enhance shareholder returns[78] - The group established a new trading department focused on artificial intelligence products to expand its trading business into other "Belt and Road" cities in Asia[81] - The group aims to diversify its trade business product range, focusing on high-tech components and products, particularly in data connectivity devices[50] - The group is cautiously optimistic about the development of satellite-connected automotive multimedia services, recognizing significant market potential due to increasing consumer demand for in-car entertainment[83] - The group is optimistic about the potential applications of satellite-based in-car infotainment systems, despite regional limitations affecting service development[48]

Financial Performance - The Group recorded a loss of approximately US$2.2 million for the six months ended June 30, 2023, compared to a loss of approximately US$16.3 million in the same period of 2022, resulting in a loss per share of US0.19 cents[12]. - Revenue for the period was approximately US$3.6 million, an increase of approximately US$0.4 million from US$3.2 million in the same period of 2022, primarily due to a US$0.9 million increase in trading of PCB and AI materials[13]. - Gross profit decreased from approximately US$1.4 million in 2022 to approximately US$1.2 million in 2023, attributed to lower trading margins[15]. - The Group recorded a net loss of approximately US$2.2 million for the six months ended 30 June 2023, compared to a net current asset of approximately US$4.5 million, down from US$6.1 million as of 31 December 2022[37][41]. - Loss before tax for the period was $2,201,000, significantly improved from a loss of $16,321,000 in the previous year[184]. - Loss for the period attributable to owners of the Company was $2,059,000, compared to $14,725,000 in 2022, reflecting a reduction of 86%[186]. - Total comprehensive expense for the period was $2,958,000, down from $16,910,000 in the same period last year[186]. - Basic and diluted loss per share was $0.19, a significant improvement from $1.54 in the previous year[186]. Expenses and Costs - Administrative expenses decreased from approximately US$0.8 million to approximately US$0.5 million, mainly due to a reduction in staff costs[16]. - Finance costs for the period amounted to approximately US$0.5 million, down from approximately US$0.9 million in the same period of 2022, with no bank borrowings during the period[26]. - The increase in cost of sales was approximately US$0.6 million, driven by higher direct costs and sales expenses during the period[14]. - Market development and promotion expenses remained steady compared to the previous year, including consultancy fees and research and development costs[25]. Assets and Liabilities - As of June 30, 2023, total assets less current liabilities amounted to US$107,436,000, a decrease of 3.1% from US$110,980,000 as of December 31, 2022[189]. - Current assets decreased to US$8,599,000 from US$9,913,000, reflecting a decline of 13.2%[191]. - Net current assets were reported at US$4,483,000, down 26.2% from US$6,072,000 at the end of 2022[191]. - Non-current liabilities decreased significantly to US$8,609,000, a reduction of 38.2% from US$13,966,000[191]. - The company's net assets increased to US$98,827,000, up 1.9% from US$97,014,000[191]. - Share capital rose to US$44,240,000, an increase of 11.7% from US$39,597,000[191]. - Cash and bank balances decreased to US$280,000 from US$1,718,000, indicating a decline of 83.7%[191]. Cash Flow - For the six months ended June 30, 2023, the net cash generated from operating activities was a negative US$1,611,000, compared to a negative US$1,370,000 in the same period of 2022[196]. - The net cash used in investing activities remained unchanged at US$1,000 for both the six months ended June 30, 2023, and 2022[196]. - The net cash from financing activities decreased to US$688,000 in 2023 from US$2,630,000 in 2022, indicating a significant decline in financing inflows[196]. - The total cash and cash equivalents at the end of the period were US$280,000, a decrease from US$1,717,000 at the end of June 2022[196]. - The cash and cash equivalents at the beginning of the period were US$1,718,000, indicating a decrease in liquidity over the six months[196]. Investments and Future Plans - The Company aims to diversify its revenue by venturing into AI trading due to promising demand for AI applications and related devices[68][73]. - The Village Internet Project is seeking a soft launch in the second half of 2023, focusing on cost-effective solutions for stable connectivity in developing countries[77][79]. - The LPTV market remains challenging due to the shift towards online streaming platforms, prompting the Company to explore strategies to revitalize its offerings[75][78]. - There were no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the period, and no future plans for material investment were disclosed[61]. Shareholder Information - The Company holds 58.65% of the issued shares, with Mr. Wong being the beneficial owner of 1,011,058,872 shares[85]. - As of June 30, 2023, CCH holds 916,281,730 shares, representing approximately 53.15% of the total issued shares[93]. - The convertible notes issued to CCH amount to US$12,000,000, convertible into 266,742,857 shares at a conversion price of HK$0.35 per share, representing approximately 15.47% of the issued shares[95]. - The total number of issued shares as of June 30, 2023, is 1,723,989,888 shares[93]. - The share option scheme was adopted on December 18, 2015, to incentivize contributions to the Group[98]. - The percentages of shareholdings are calculated based on the total number of issued shares as of June 30, 2023[99]. Governance and Compliance - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the period and recommended their adoption by the Board[175]. - The Company has maintained compliance with the Corporate Governance Code, except for the separation of the roles of chairman and chief executive[171]. - The Company has adopted a shareholder communication policy to enhance communication with shareholders and stakeholders[177]. - The Board approved the unaudited financial statements on August 30, 2023[176]. Risk Management - Management considers the impact of foreign exchange risk to be insignificant, as most assets and liabilities are denominated in US dollars[50]. - The effect of foreign exchange rate changes resulted in a loss of US$516,000 during the period, impacting overall cash position[196]. - The Group has taken measures to mitigate liquidity pressure, including refinancing debts and broadening income sources[38][41]. - The Directors believe the Group can continue as a going concern, supported by measures to ensure sufficient financial resources[200].

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告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何 部份內容所產生或因依賴該等內容而引致的任何損失承擔任何責任。 SILKWAVE INC (cid:1117)(cid:1117) (cid:6877)(cid:6877) (cid:7080)(cid:7080) (cid:6922)(cid:6922) (cid:7481)(cid:7481) (cid:19584)(cid:19584) (cid:1948)(cid:1948) (cid:2600)(cid:2600) (cid:708)(cid:7148)(cid:19387)(cid:7468)(cid:13780)(cid:4902)(cid:16491)(cid:1978)(cid:6208)(cid:12539)(cid:1147)(cid:7481)(cid:19584)(cid:1948)(cid:2600)(cid:709) （股份代號：471） 截至二零二三年六月三十日止六個月中期業績公告 財務概要 (a) 收入增加約11.3%至約3.6百萬美 ...

Financial Performance - In 2022, Silkwave Inc. reported a revenue of USD 8.551 million, an increase of 49.5% compared to USD 5.723 million in 2021[11]. - The company's gross profit for 2022 was USD 2.462 million, up from USD 1.508 million in 2021, reflecting a gross margin improvement[11]. - Loss before tax narrowed to approximately USD 29.5 million in 2022 from USD 38.0 million in 2021, indicating a positive trend in financial performance[16]. - The company's loss was reduced from approximately $38 million in FY2021 to about $29.5 million in FY2022, indicating a significant improvement in financial performance[19]. - Revenue for the year was approximately US$8.6 million, an increase of approximately US$2.9 million from US$5.7 million in 2021, primarily due to increased trading of PCB and AI materials[50]. - Gross profit increased from approximately US$1.5 million in 2021 to approximately US$2.5 million in 2022, driven by higher broadcasting service income[52]. - Administrative expenses rose from approximately US$1.8 million in 2021 to approximately US$3.5 million in 2022, mainly due to increased share-based payments[53]. - Finance costs decreased to approximately US$2.4 million in 2022 from approximately US$5.1 million in 2021, as the Group did not incur any bank or other borrowings during the year[55]. - The impairment loss recognized on intangible assets for the year ended 31 December 2022 was approximately US$3.6 million, down from approximately US$5.1 million in 2021[74]. - The total equity attributable to the owners of the Company increased to approximately US$83.6 million as at 31 December 2022, compared to approximately US$78.7 million in 2021[78]. - Current assets amounted to approximately US$9.9 million as at 31 December 2022, an increase from approximately US$7.5 million in 2021[84]. - Current liabilities decreased to approximately US$3.8 million as at 31 December 2022, down from approximately US$6.6 million in 2021[85]. - The Group's current ratio improved to approximately 2.58 as at 31 December 2022, compared to approximately 1.13 in 2021[85]. - As of December 31, 2022, convertible notes amounted to approximately US$13.7 million, down from US$35.6 million in 2021, with a gearing ratio of approximately 11.9% compared to 26.2% in 2021, indicating a strong financial position[92]. - The Group did not have any significant contingent liabilities, capital commitments, or off-balance sheet transactions as of December 31, 2022, maintaining a clean financial slate[93][94][96]. Business Strategy and Expansion - The company is focusing on expanding its Artificial Intelligence business, which contributed to new revenue streams in 2022[16]. - The company is optimistic about its presence in the US TV market and aims to enhance viewer experience through high-quality digital content[25]. - The satellite-based in-vehicle infotainment business is in the trial stage to meet regulatory requirements for commercial service launch, with strong prospects supported by government initiatives[26]. - The company is targeting the ASEAN market, which has a population of about 700 million, to deploy services combining vehicles, ships, and remote mobile access[30]. - The trading business has seen steady growth in 2022, particularly in PCB trading with advanced technology components used in AI applications[31]. - The company plans to launch pilot services in Malaysia within the coming year as part of its regional infotainment development strategy[30]. - The Company expects to upgrade PCB trading to smart electronic components trading through the acquisition of IITH, targeting the growing demand for AI applications and related devices[133][136]. - The Company is expanding its satellite multimedia services in the ASEAN region, targeting remote villages in Indonesia and the Philippines, with a potential market of 700 million people[135][138]. - The satellite-to-vehicle infotainment services are being developed in China, with a market of 300 million cars and 30 million new cars entering the market annually[141]. - The Company is integrating satellite services into mobile phones as part of the 6G era, positioning itself as a leader in providing satellite-integrated smartphones[142]. - The Company anticipates that certain activities will yield results in 2023, reflecting confidence in its satellite assets and technologies[143]. - The company accelerated its business activities in China by the end of 2022, aiming to enhance development and operations, with 300 million vehicles on the road annually and 30 million new vehicles entering the market each year, indicating a promising outlook for the connected vehicle infotainment business[144]. - The company is optimistic about several business segments in 2023, confirming the strength of its satellite assets, technology, and business vision[145]. Corporate Governance and Management - The company has a strong board with members holding advanced degrees and extensive industry experience, enhancing governance and strategic direction[168][173][174]. - The company emphasizes community service and involvement, with board members participating in various local organizations and initiatives[164][173]. - The independent non-executive directors bring diverse backgrounds in finance, law, and technology, contributing to a well-rounded leadership team[168][170]. - The management team is well-equipped with a mix of technical and financial expertise, positioning the company for future growth and innovation[174]. - The company has adopted the Corporate Governance Code and complied with all applicable provisions throughout the year ended December 31, 2022, except for the separation of the roles of chairman and chief executive[180]. - As of December 31, 2022, the Board consisted of one executive director (who is also the chairman) and seven non-executive directors, with three independent non-executive directors, representing over one-third of the Board[190]. - The Board focuses on the overall strategic development of the Group and monitors financial performance and internal controls[191]. - All directors confirmed full compliance with the Model Code for Securities Transactions throughout the year ended December 31, 2022[185]. - The company has implemented formal procedures for the appointment of new directors and plans for orderly succession of the Board[193]. - The independent non-executive directors ensure effective corporate governance and meet the independence criteria as required by the Listing Rules[192]. - The company recognizes the importance of good corporate governance to maximize shareholder benefits and ensure accountability[180]. - The Board will regularly review the effectiveness of the current governance structure, particularly the combined roles of chairman and chief executive[180]. - The company has maintained a balanced composition of executive and non-executive directors to ensure independent assessments on strategic issues[186]. - The directors are kept informed of regulatory changes and the company's business developments to ensure compliance and effective governance[195]. - The company has implemented a formal and transparent procedure for appointing new board members, ensuring orderly succession with a minimum three-year term for each director[197]. - There are no relationships among board members that could influence their decisions, including financial, business, or familial ties[198]. - Directors are aware of their responsibility to dedicate sufficient time and effort to the company's affairs and are kept updated on regulatory changes and business developments[199].

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告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何 部分內容所產生或因依賴該等內容而引致的任何損失承擔任何責任。 SILKWAVE INC (cid:1117)(cid:1117) (cid:6877)(cid:6877) (cid:7080)(cid:7080) (cid:6922)(cid:6922) (cid:7481)(cid:7481) (cid:19584)(cid:19584) (cid:1948)(cid:1948) (cid:2600)(cid:2600) (cid:708)(cid:7148)(cid:19387)(cid:7468)(cid:13780)(cid:4902)(cid:16491)(cid:1978)(cid:6208)(cid:12539)(cid:1147)(cid:7481)(cid:19584)(cid:1948)(cid:2600)(cid:709) （股份代號：471） 截至二零二二年十二月三十一日止年度全年業績公告 業績摘要 截至十二月三十一日止年度 二零二二年 二零 ...

Company Overview - Silkwave Inc's principal activity is investment holding, with subsidiaries providing Convergent Mobile Multimedia Broadcasting (CMMB) and satellite infotainment technology for vehicles and maritime applications[8]. - The company is engaged in trading printed circuit boards (PCB) and Artificial Intelligence (AI) related products[8]. - The interim report indicates a focus on expanding multimedia technology services in the automotive and maritime sectors[8]. - The company is actively pursuing strategic acquisitions to enhance its technological capabilities and market presence[8]. - Silkwave Inc's management emphasizes the importance of connected transactions for future growth and operational efficiency[8]. - The company aims to leverage its acquisitions to strengthen its position in the convergent multimedia broadcasting market[8]. Acquisitions and Transactions - The company agreed to acquire a complete geostationary satellite system operating over Asia for HK$1.00, constituting a connected transaction[8]. - The acquisition of Asiastar is fully exempt from reporting and shareholder approval requirements as all applicable percentage ratios are below 5% and total consideration is less than HK$3,000,000[8]. - On May 27, 2022, the company entered into an acquisition agreement to acquire 51% interest in International IT Hub Limited for an undisclosed consideration[8]. - The vendor of the Asiastar acquisition owns approximately 74.64% of the issued shares of Silkwave Inc, making it a connected person under the Listing Rules[8]. - The total consideration for the Acquisition of IITH is less than HK$10,000,000, which is subject to reporting and announcement requirements but exempt from circular and independent financial advice requirements[10]. Financial Performance - The Group recorded a loss of approximately US$16.3 million for the six months ended 30 June 2022, compared to a loss of approximately US$21.8 million for the same period in 2021, representing a decrease of about 25.5%[10]. - Revenue for the Group increased to approximately US$3.2 million for the six months ended 30 June 2022, up from approximately US$2.6 million in the same period of 2021, marking an increase of about 23.1%[12]. - Gross profit rose from approximately US$1.1 million in the corresponding period in 2021 to approximately US$1.4 million in 2022, primarily due to higher broadcasting service income[12]. - Administrative expenses decreased from approximately US$1.1 million to approximately US$0.8 million, a reduction of about 27.3% due to decreased staff costs[12]. - Finance costs for the Group amounted to approximately US$0.9 million, down from approximately US$3.0 million in the same period of 2021, indicating a decrease of about 70%[12]. - The Company shared a loss of approximately US$9.5 million from its 20% interest in Silkwave Holdings Limited, slightly higher than the loss of approximately US$9.3 million in the same period of 2021[15]. - The impairment loss recognized on intangible assets for the Period was approximately US$6.0 million, compared to approximately US$8.7 million in the same period of 2021, reflecting a decrease of about 30.9%[16]. - The Group recorded a net loss of approximately US$16.3 million for the six months ended 30 June 2022, compared to a net current asset of approximately US$0.9 million as of 31 December 2021[24][28]. - The Group's current liabilities exceeded its current assets by approximately US$0.8 million as of 30 June 2022[24][28]. - Cash and cash equivalents increased to approximately US$1.8 million as of 30 June 2022, up from approximately US$1.0 million as of 31 December 2021[24][28]. - The Group's convertible notes amounted to approximately US$14.3 million as of 30 June 2022, with a gearing ratio of approximately 11.6%[31]. Employee and Operational Metrics - The average number of employees increased to approximately 26 for the Period, with staff costs amounting to approximately US$0.4 million[33]. - The Group did not declare any interim dividend for the six months ended 30 June 2022, consistent with the previous year[23][27]. - The average number of employees in the group during the period was approximately 26, with employee costs around $0.4 million[37]. Share Capital and Financing - The subscription of 87,728,000 new ordinary shares at a price of HK$0.40 per share raised approximately HK$35,091,200[34][35]. - The net proceeds from the subscription amounted to approximately HK$34,891,200 after deducting expenses, resulting in a net issue price of approximately HK$0.398 per share[36]. - All proceeds from the subscription have been fully utilized, including HK$34.79 million for repayment of advances from shareholders and strengthening general working capital[40]. - The company expects to upgrade PCB trading to smart electronic components trading following the acquisition of IITH, targeting the growing demand for AI applications[43]. - The company is facing challenges in the CMMB/LPTV business due to COVID-19 restrictions and trade friction between China and the US[44]. - Following the completion of a general offer, the company has transformed into a satellite multimedia operator with a focus on connected cars and remote communities[45]. - The company is deploying pilot services in the Greater Bay Area and has formed a joint venture in Malaysia for satellite-related services in ASEAN[45]. Governance and Compliance - The Company has adopted a shareholder communication policy to promote effective communication with shareholders and stakeholders[141]. - The Company has complied with all applicable code provisions of the Corporate Governance Code throughout the six months ended June 30, 2022, except for the separation of the roles of chairman and chief executive[136]. - The unaudited condensed consolidated financial statements for the period were approved by the Board on August 30, 2022[143]. - The Audit Committee reviewed the accounting principles and policies, internal controls, and financial reporting adopted by the Group during the period[142]. Future Outlook - The company will continue to monitor industry developments and review business expansion plans regularly[40]. - The company aims to strengthen its financial position and expand its business operations through the issuance of convertible notes[94].

Financial Performance - Revenue for the year ended December 31, 2021, was US$5,723,000, a decrease of 27.8% compared to US$7,153,000 in 2019[10] - Gross profit for 2021 was US$1,508,000, representing a gross margin of 26.4%[10] - The company reported a loss for the year of US$37,971,000, compared to a profit of US$22,751,000 in 2018[10] - Total assets as of December 31, 2021, were US$135,876,000, down from US$316,063,000 in 2019[10] - Non-current assets decreased to US$128,400,000 in 2021 from US$306,760,000 in 2019[10] - Total liabilities were US$42,198,000 as of December 31, 2021, compared to US$65,496,000 in 2020[10] - Net assets for the company were US$93,678,000 in 2021, a decline from US$250,567,000 in 2019[10] - Earnings per share for 2021 was a loss of 10.38 US cents, compared to a loss of 52.75 US cents in 2020[10] - The Company narrowed its loss from approximately USD 133 million in 2020 to approximately USD 38 million in 2021, a reduction of almost 70%[14] - For the year ended 31 December 2021, the Group recorded a loss of approximately US$38.0 million, a significant improvement from a loss of approximately US$133.2 million in 2020[34] - Revenue increased by approximately US$1.8 million or approximately 46% to approximately US$5.7 million, driven by the completion of TV station upgrades and increased trading of PCB materials[34] - Gross profit rose from approximately US$0.6 million in 2020 to approximately US$1.5 million in 2021, primarily due to an increase in TV rental income by US$0.7 million[34] - Administrative expenses increased by approximately 36.4% to approximately US$1.8 million compared to approximately US$1.3 million in 2020[34] - Finance costs for the year amounted to approximately US$5.1 million, a decrease from approximately US$5.6 million in 2020, primarily representing effective interest expense on convertible notes[37] Business Strategy and Market Opportunities - The company has been focusing on improving its financial position and exploring new market opportunities[10] - Future strategies include potential market expansion and the development of new technologies[10] - The Company has resumed operations of several TV stations in the US, contributing to the recovery of its revenue in the PCB trading business[14] - The upgrade to the LPTV portfolio is expected to enhance spectrum efficiency and capacity, allowing for more channel space and programming opportunities[22] - The transition to the ATSC 3.0 digital media technology standard will enable the Company to engage in new business models, including IP-based Internet broadcasting[22] - A significant market trend is the return to free-to-air TV as consumers "cut the cord" on cable and pay TV, which the Company aims to capitalize on[22] - The Company has entered a content partnership in New York to develop niche channels focused on movies and sports, competing with major networks[22] - The Company is targeting the ASEAN market, which has a population of approximately 700 million, to deploy services combining vehicles, ships, and remote mobile access, with plans for pilot services in Malaysia within the coming year[24] - The Company expects revenue and profit margins in its PCB business to improve due to technology upgrades and entry into niche products like artificial intelligence and IoT components[27] - The company plans to accelerate technology upgrades through internal growth and acquisitions to access higher margin PCB electronic products, with a focus on artificial intelligence and Internet of Things markets[93][97] Asset Management and Financial Position - Current assets amounted to approximately US$7.5 million as of December 31, 2021, an increase from approximately US$5.5 million in 2020[51] - Current liabilities decreased to approximately US$6.6 million as of December 31, 2021, from approximately US$8.6 million in 2020[52] - The Group's current ratio improved to approximately 1.13 as of December 31, 2021, compared to approximately 0.64 in 2020[52] - Total equity attributable to the owners of the Company decreased to approximately US$78.7 million as of December 31, 2021, compared to approximately US$106.1 million in 2020, primarily due to operating losses during the year[50] - The gearing ratio was approximately 26.2% as of December 31, 2021, compared to 28.8% in 2020, indicating a stable financial position[58] - The impairment loss on intangible assets for the year ended December 31, 2021, was approximately US$5.1 million, a decrease from approximately US$24.3 million in 2020[47] Corporate Governance and Management - The Company has adopted the Corporate Governance Code provisions and is committed to maintaining high standards of corporate governance throughout the year ended December 31, 2021[144] - The roles of chairman and chief executive are not separated, which deviates from code provision C.2.1 of the CG Code, but the board believes this structure benefits the group[144] - The Company has established a nomination committee as per the amendments to the Listing Rules effective January 1, 2022[148] - The Board consists of one executive Director and six non-executive Directors, with three independent non-executive Directors, representing over one-third of the Board[157] - The Company has confirmed that all Directors complied with the revised Model Code for Securities Transactions throughout the year ended December 31, 2021[150] - The Board is committed to maintaining a balanced composition of executive and non-executive Directors to ensure independent and objective judgments[155] - The Company has implemented a formal and transparent procedure for the appointment of new Directors, ensuring all Directors are subject to retirement by rotation at least once every three years[166] - The Company recognizes the importance of good corporate governance to safeguard shareholder interests and enhance group performance[143] Research and Development - The company has a strong focus on research and development in broadband wireless networks, satellite communications, and IoT technologies[116] - The company is ramping up R&D to develop higher value-added products, including upcoming satellite and connected-car electronics[105] - The maritime multimedia business has shown steady performance despite travel restrictions, with expectations for growth as sea travel resumes[94][98] - The Company is exploring business opportunities in Southeast Asia by providing turnkey solutions and creating franchising arrangements with regional operators[109] Key Personnel - Dr. Liu, the Chief Technology Officer, is a key inventor with over 70 communication patents, including more than 20 related to LTE and Mobile WIMAX technologies[116] - Mr. Yang has over 28 years of experience in finance and management, previously holding senior positions at J.P. Morgan and Goldman Sachs[120] - Mr. Lui, appointed in February 2022, has over 30 years of experience in finance and property, currently serving as COO of Kingston Financial Group[124] - Dr. Li, an independent non-executive director, has extensive experience in international financial markets and previously held senior roles in securities and investment companies[132] - Mr. Chow has over 13 years of experience in financial management and was previously CFO of China Fortune Investments[133]