Financial Performance - The Group recorded a loss of approximately US$21.8 million for the six months ended 30 June 2021, compared to a loss of approximately US$16.2 million for the same period in 2020, representing an increase in loss of about 34.6%[26]. - Loss per share for the six months ended 30 June 2021 was US6.04 cents, an improvement from US7.00 cents for the same period in 2020[26]. - Revenue for the period was approximately US$2.6 million, a decrease of approximately US$0.4 million from US$3.0 million in the same period of 2020, primarily due to a decrease in TV rental income of approximately US$1.0 million[31]. - Gross profit decreased from approximately US$1.4 million in the corresponding period in 2020 to approximately US$1.1 million in 2021, mainly due to lower broadcasting service income[31]. - Administrative expenses increased from approximately US$0.7 million to approximately US$1.1 million, primarily due to an increase in staff costs during the period[31]. - The Company shared a loss of approximately US$9.3 million from its 20% interest in Silkwave Holdings Limited, compared to a loss of approximately US$6.6 million in the same period of 2020, due to delays in regulatory approval and fundraising activities[34]. - Impairment loss on intangible assets for the period was approximately US$8.7 million, compared to approximately US$7.0 million in the same period of 2020, due to the pandemic's impact on business operations[35]. - Finance costs for the period amounted to approximately US$3.0 million, an increase from approximately US$2.7 million in the same period of 2020, primarily representing effective interest expense on convertible notes[31]. - The Group recorded a net loss of approximately US$21.8 million for the six months ended 30 June 2021[41]. - The Group's current liabilities exceeded its current assets by approximately US$0.3 million as of 30 June 2021, improving from approximately US$3.1 million as of 31 December 2020[41]. - The Group has not declared any interim dividend for the six months ended 30 June 2021, consistent with the previous year[41]. - The Group did not have any bank borrowings as of 30 June 2021, maintaining a sound financial position[44]. - The total comprehensive expenses for the period amounted to US$22.53 million, including a loss of US$17.956 million from foreign operations[168]. Share Capital and Financing - The Company completed a subscription of 58,342,055 new shares at a subscription price of HK$0.35 per share, raising approximately HK$20.42 million[23]. - The subscription was finalized on 1 June 2021, with no subscribers becoming substantial shareholders as a result[24]. - Convertible notes amounted to approximately US$56.4 million as of 30 June 2021, with a gearing ratio of approximately 33.7%[44]. - The subscription price for the 2021 convertible notes is US$65,000,000, which will be fully offset by existing convertible notes held by Chi Capital[49]. - If the conversion rights of the 2021 convertible notes are fully exercised, the number of issued shares will increase by approximately 1,444,857,142 shares, representing about 400.78% of the number of issued shares as of June 30, 2021[49]. - The company raised approximately HK$20.34 million from the subscription of 58,342,055 new shares, primarily for repaying shareholder advances and strengthening working capital[62]. - The total number of issued shares as of June 30, 2021, is 360,512,332 shares[74]. - Chi Capital holds convertible notes with a principal amount of US$87,000,000, representing approximately 23.15% of the total issued shares of 360,512,332[78]. - The company issued US dollar denominated convertible notes with a principal amount of US$96,000,000 for the acquisition of a 20% equity interest in Silkwave Holdings Limited[112]. Business Operations and Strategy - The principal activities of the Group include investment holding and the provision of Convergent Mobile Multimedia Broadcasting (CMMB) and satellite infotainment multimedia technology and services[18]. - The Group's focus remains on expanding its multimedia broadcasting and infotainment services in both vehicle and maritime applications[18]. - The Company continues to explore new strategies for market expansion and technological advancements in its service offerings[18]. - The Group's reportable segments include the CMMB business, which focuses on the transmission and broadcasting of television programs, and the Trading business, which involves trading of printed circuit board materials[178]. - The Group has early adopted amendments to HKFRS 16, which allowed for the accounting of COVID-19 related rent concessions without treating them as lease modifications[176]. - The Group recognized US$43,000 in other income from rent concessions related to COVID-19, which was accounted for as negative variable lease payments[176]. - The Group has entered into a strategic partnership with major US LPTV operators to enhance programming and technical capabilities[51]. - The PCB trading business faced challenges due to the pandemic, including delayed production and shipment, but the Company is exploring new-generation auto electronics components and AI-based consumer digital electronic components[52]. - The company aims to expand into new automotive electronic components, leveraging its expertise in connected car multimedia to secure higher value business orders[55]. - The company is actively seeking local business partners in several ASEAN countries to establish an operational base for multimedia information and entertainment services in Southeast Asia[56]. Corporate Governance and Compliance - The Company has adopted a new Share Option Scheme on December 18, 2015, to incentivize selected participants for their contributions[86]. - The Company has maintained compliance with the Securities and Futures Ordinance regarding the registration of interests[79]. - The company has complied with all applicable code provisions of the Corporate Governance Code throughout the six months ended June 30, 2021, except for the separation of the roles of chairman and chief executive[137]. - The company has maintained high standards of corporate governance to safeguard shareholder interests and enhance group performance[137]. - The Audit Committee, comprising independent non-executive directors, reviewed the accounting principles and financial reporting for the period and recommended the adoption of the unaudited condensed consolidated financial statements[144]. - The Board approved the unaudited condensed consolidated financial statements for the period on August 26, 2021[145]. Employee and Operational Metrics - The average number of employees for the Group during the period was approximately 23, with staff costs amounting to approximately US$721,000, an increase from approximately US$507,000 in the same period last year[46]. - Four out of eight operated stations have completed the digital upgrade, with the remaining expected to finish by the second half of 2021[51]. - The effective interest on convertible notes amounted to US$3,016,000, up from US$2,708,000 in the prior year, indicating increased financing costs[183]. - Market development and promotion expenses totaled US$760,000, which is an increase from US$674,000 in the same period of the previous year[183]. Future Outlook - The Company expects significant improvement in business performance in the coming fiscal year due to anticipated economic recovery and media market growth[51]. - Future guidance suggests a positive outlook for revenue growth driven by market expansion initiatives[93]. - The company plans to implement a development plan to enhance efficiency and control costs, remaining optimistic about future growth[60].

Financial Performance - Revenue for the year ended December 31, 2020, was US$3,876,000, a decrease of 46.2% compared to US$7,153,000 in 2019[11] - Gross profit for 2020 was US$602,000, down 78.3% from US$2,774,000 in 2019[11] - Loss before tax for 2020 was US$133,192,000, compared to a loss of US$31,750,000 in 2019[11] - Total assets as of December 31, 2020, were US$185,609,000, a decrease from US$316,063,000 in 2019[11] - Net assets attributable to owners of the Company decreased to US$106,103,000 in 2020 from US$227,553,000 in 2019, representing a decline of 53.3%[11] - Earnings per share for 2020 was a loss of 52.75 US cents, compared to a loss of 17.36 US cents in 2019[11] - Non-current assets decreased to US$180,090,000 in 2020 from US$306,760,000 in 2019[11] - Current assets dropped to US$5,519,000 in 2020 from US$9,303,000 in 2019[11] - For the year ended December 31, 2020, the Group recorded a loss of approximately US$133,192,000, compared to a loss of US$31,867,000 in 2019, resulting in a loss per share of approximately US52.75 cents[65] - Revenue decreased by approximately US$3,277,000 or 45.8% to approximately US$3,876,000, primarily due to a decline in TV rental income and trading of PCB materials[65] - Gross profit decreased by approximately 78.3% from US$2,774,000 in 2019 to approximately US$602,000 in 2020, mainly attributed to a decrease in TV rental income by US$2,303,000[65] Asset and Liability Management - Total liabilities as of December 31, 2020, were US$61,984,000, compared to US$65,496,000 in 2019[11] - Current liabilities were approximately US$8,578,000 as at 31 December 2020, down from approximately US$17,440,000 in 2019[108] - The Group's current ratio improved to 0.64 as at 31 December 2020, compared to 0.53 in 2019[108] - Convertible notes amounted to approximately US$53,373,000 as at 31 December 2020, up from approximately US$47,773,000 in 2019[115] - The gearing ratio was approximately 28.8% as at 31 December 2020, compared to approximately 15.1% in 2019[115] Impairment and Asset Valuation - The Company experienced significant asset impairment due to reduced consumer spending and delays in new business launches during 2020[16] - The impairment loss recognized on intangible assets for the year ended December 31, 2020, was approximately US$24,275,000, an increase from US$16,933,000 in 2019[88] - The Group recognized an impairment loss of approximately US$574,000 from the Spectrum Disposal, reflecting the difference between the consideration for the Assignment Agreement and the carrying amount of the lease assets[90] - Management assessed and revised its commercial operations and expected cash flows due to disruptions from repacked station re-installation and COVID-19, leading to the impairment loss[88] - The Group's cash-generating units' recoverable amount was determined to be lower than their carrying amount, necessitating the recognition of impairment losses[88] Business Development and Strategy - The Company commenced satellite maritime media service in China through a partnership with Sino Satellite Communications Co., Ltd., which has shown rapid progress since inception[16] - The Company developed a Beidou high-precision navigation system utilizing AsiaStar's data distribution capabilities, positioning itself as a key service provider in the Beidou ecosystem[16] - The Company's patented Converged technology was approved by the International Telecommunication Union as a recommended standard for global adoption, enhancing its position as a technology supplier to auto-OEMs[16] - In 2021, the Company aims to accelerate regulatory approval for Silkwave's commercial deployment in China for satellite-based in-vehicle infotainment services[22] - The Company plans to enhance its low-power television business in the US with ATSC 3.0 standard equipment, allowing for more value-added services beyond traditional linear TV broadcasting[22] - The Company expects to enter technical service arrangements in Africa and the Middle East for satellite infotainment services, utilizing AsiaStar's capacity[22] - The Company will diversify into Southeast Asia by developing niche satellite applications such as maritime data delivery and remote education while awaiting regulatory approvals in China[22] - The Company is exploring business opportunities in Southeast Asia by providing turnkey solutions and creating franchising arrangements with regional operators[161] Fundraising and Financial Management - The Company raised approximately HK$24,700,000 (equivalent to approximately US$3,145,000) from the Rights Issue, with a subscription rate of about 40.18%[44] - The net proceeds from the Rights Issue after expenses were approximately HK$23,500,000 (equivalent to US$3,001,000) and the net price per rights share was approximately HK$0.62[44] - As of 31 December 2020, all proceeds from the Rights Issue had been fully utilized, primarily for administrative and operational expenses due to reduced cash inflow from operations[49][50] - The Company reallocated most of the net proceeds to cover administrative and marketing expenses due to temporary closures of certain LPTV stations and a drop in revenue caused by the pandemic[50] - The Company entered into subscription agreements on 2 July 2020 for the placement of 45,412,879 new shares at a price of HK$0.50 per share, raising approximately HK$22,706,439.50[52] - The net proceeds from the Placing amounted to approximately HK$22,630,000 after deducting related expenses, with a net issue price per subscription share of approximately HK$0.498[54] - The intended use of proceeds from the Placing included repayment of advances from shareholders and strengthening general working capital[60] Management and Governance - The board of directors consisted of 7 members as of December 31, 2020, including 2 executive directors, 2 non-executive directors, and 3 independent non-executive directors[169] - The company has adopted the Corporate Governance Code and is committed to maintaining high standards of corporate governance throughout the year ended December 31, 2020[198] - The roles of chairman and chief executive are not separated, which deviates from code provision A.2.1 of the Corporate Governance Code[200] - The board believes that the current structure, with Mr. Wong serving as both chairman and chief executive, will not impair the balance of power and authority within the group[200] Market Challenges and Outlook - The pandemic caused delays in fundraising activities for a new satellite and regulatory approvals for the satellite infotainment business in China, impacting operational timelines[40] - Revenue streams for PCB trading and US TV channel leasing decreased due to the overall poor economy and reduced consumption during the pandemic[40] - The company is cautiously managing operating expenses and reducing marketing budgets in response to market uncertainty[42] - The company is optimistic about future growth opportunities despite the challenges posed by COVID-19, focusing on business transformation demands[41] - The ongoing COVID-19 pandemic has slowed capital market activities, hindering Silkwave's efforts to raise funds for new satellite construction[83] - Management remains confident in obtaining regulatory approvals and revitalizing fundraising efforts, especially with new COVID-19 vaccination initiatives[84]

Rights Issue and Fundraising - The Group proposed a rights issue of one share for every two existing shares at a subscription price of HK$0.65, raising approximately HK$24.7 million (equivalent to US$3.145 million) before expenses, with a subscription acceptance rate of about 40.18%[10] - The gross proceeds from the rights issue are approximately HK$24.7 million, with the net proceeds expected to be used for operational and project development purposes[10] - The net proceeds from the rights issue, after deducting approximately HK$1.2 million in expenses, are estimated to be around HK$23.5 million, intended for general working capital and the development of the Maritime Project[10] - The rights issue was completed with 18 valid acceptances for a total of 37,984,428 rights shares[10] - The Company aims to allocate the net proceeds from the rights issue on a pro rata basis for its intended purposes[10] - The company completed a subscription of 45,412,879 new shares for approximately HK$22,706,440 on 13 July 2020, aimed at strengthening working capital[37] - On July 2, 2020, the Company entered into subscription agreements for 45,412,879 new shares at HK$0.50 per share, raising approximately HK$22,706,440 to strengthen working capital[52] - A rights issue resulted in the issuance of 37,984,428 new shares, generating approximately US$2,990,000, with funds allocated for administrative expenses, marketing development, and the maritime project[68] - A subsequent placement of 45,412,879 new shares raised approximately US$2,920,000, primarily for repayment of shareholder advances and general working capital[71] - The company raised approximately HK$24,700,000 (equivalent to approximately US$3,145,000) through the issuance of 37,984,428 new shares via a Rights Issue on 11 March 2020[191] - The proceeds from the Rights Issue are intended for general working capital and the development of the Maritime Project[191] - The proceeds from the subscription are aimed at repaying advances from shareholders and strengthening the company's general working capital[194] Financial Performance - The Group recorded a loss of US$16,165,000 for the six months ended 30 June 2020, compared to a loss of US$6,975,000 for the same period in 2019, resulting in a loss per share of US7.00 cents[14] - Revenue for the period was US$3,026,000, a decrease of US$291,000 or 8.8% from US$3,317,000 in the same period of 2019, primarily due to a US$453,000 decrease in PCB trading[15] - Gross profit increased by US$144,000 or 11.6% to US$1,386,000, driven mainly by higher TV rental income[17] - The Company shared a loss of US$6,578,000 from its 20% interest in Silkwave Holdings Limited, which included write-offs related to satellite construction and launching[24] - The company recognized an impairment loss on intangible assets of US$7,000,000 for the six months ended 30 June 2020, compared to nil for the same period in 2019[34] - The company reported an impairment loss on intangible assets of $7,000,000, which was not present in the previous year[106] - The loss for the period attributable to the owners of the Company was US$14,864,000 for the six months ended 30 June 2020, compared to US$7,033,000 for the same period in 2019, representing a 111.5% increase in loss[158] - The basic loss per share for the six months ended 30 June 2020 was US$0.0700, compared to US$0.0447 for the same period in 2019, reflecting a 56.5% increase in loss per share[158] - The total comprehensive expense for the period was $16,571,000, significantly higher than $6,805,000 in the previous year[110] - The Group incurred a total loss of US$16,165,000 for the period, with a segment loss of US$5,624,000 attributed to CMMB and trading businesses[133] - The company reported a loss for the period of US$6,975,000, compared to a loss of US$4,689,000 in the previous year[140] - The company incurred a total comprehensive loss of US$16,571,000 for the six months ended June 30, 2020, compared to a comprehensive loss of US$6,805,000 in the same period of 2019[118] Impact of COVID-19 - The unexpected outbreak of COVID-19 caused significant disruptions to operations and research activities, leading to temporary closures of offices and research centers in February and March 2020[10] - The impact of COVID-19 has led to extraordinary disruptions in business development in both the PRC and US markets[10] - The Company expects COVID-19 to structurally slow down global economic activities but also to create substantial demand for business transformations, focusing on growth opportunities[10] - The COVID-19 pandemic has significantly disrupted the economy, with the U.S. GDP decreasing by 5.0% in Q1 and an annual rate of 32.9% in Q2 2020[27] - Ongoing cancellations of traditional cable and satellite TV subscriptions are impacting the TV and video market, with 8% of pay TV subscribers indicating they are "very likely" to cut their subscriptions in the next 12 months[29] - The Group received rent concessions related to COVID-19 amounting to US$73,000, which were accounted for as negative variable lease payments[131] - The COVID-19 outbreak led to temporary closures of Silkwave's offices and research facilities, impacting financial results and liquidity in the first half of 2020[177] Assets and Liabilities - Total equity attributable to the owners of the company decreased to US$215,428,000 as at 30 June 2020, down from US$227,553,000 as at 31 December 2019[34] - Current assets amounted to US$5,998,000 as at 30 June 2020, a decrease from US$9,303,000 as at 31 December 2019[34] - Current liabilities decreased to US$11,226,000 as at 30 June 2020, down from US$17,440,000 as at 31 December 2019[34] - The group's current ratio remained stable at 0.5 as at 30 June 2020, consistent with the ratio as at 31 December 2019[34] - The gearing ratio was 16.9% as at 30 June 2020, up from 15.1% as at 31 December 2019, indicating a slight increase in leverage[39] - As of June 30, 2020, the company had net current liabilities of approximately US$5,228,000, raising concerns about liquidity[123] - The Group's net current liabilities as of June 30, 2020, were approximately US$5,228,000, prompting the Board to consider future liquidity measures[126] - Cash and bank balances increased to $1,724,000 from $342,000 at the end of 2019, indicating improved liquidity[114] - Net assets decreased to $237,141,000 from $250,567,000, reflecting a decline in overall financial health[114] - The average credit period granted by suppliers was 60 days, with trade payables aged 0-90 days totaling US$297,000 as of June 30, 2020, down from US$953,000 at the end of 2019[183] - Trade receivables as of June 30, 2020, totaled US$809,000, a decrease from US$1,220,000 at the end of 2019[181] - Amounts due from Chi Capital decreased to US$2,538,000 as of June 30, 2020, from US$6,662,000 at the end of 2019[185] - Amounts due to shareholders decreased to US$6,698,000 as of June 30, 2020, from US$12,992,000 at the end of 2019[185] Corporate Governance and Management - The company fully complied with the Corporate Governance Code, except for the separation of the roles of chairman and CEO[95] - The company plans to identify a suitable candidate for the position of independent non-executive director within three months following Dr. Wang's resignation[95] - The company has adopted a shareholder communication policy to enhance communication with shareholders and stakeholders[97] - The company has retained key management and technical personnel to support ongoing operations, ensuring consistency over time[171] Business Development and Future Prospects - The Company remains optimistic about the mid-term future despite the challenges posed by the pandemic[10] - The trading business is expected to face challenges in the upcoming year due to product life cycle stages, consumer demand, and ongoing trade tensions between the US and China[65] - The company is developing a maritime satellite multimedia service targeting millions of fishing boats, commercial freighters, and cruise liners across an area of 9 million square miles, with commercial services anticipated to start in 2021[65] - Silkwave has developed technology that integrates satellite broadcast with 4G/5G cellular deliveries, positioning the platform as part of the 5G ecosystem[60] - Silkwave is raising funds through a top-tier investment bank to finance the construction of next-generation satellites and related infrastructure[61] - A framework contract has been signed with China Great Wall Industries Corporation to procure 2 new generation satellites for the Belt and Road initiative[61] - Silkwave has signed a Memorandum of Understanding with a Saudi partner to jointly invest in new satellites and develop connected-car services for the Middle East and Africa[61] Employee and Operational Metrics - The average number of employees for the Period was approximately 25, down from 30 in the same period of 2019, with total staff costs amounting to US$507,000 compared to US$757,000 in the prior year[47] - Staff costs decreased to US$507,000 for the six months ended 30 June 2020, down 33.0% from US$757,000 in 2019[156] - Depreciation of property, plant, and equipment was US$90,000 for the six months ended 30 June 2020, a decrease of 21.1% from US$114,000 in 2019[156] - Legal and professional fees amounted to US$99,000 for the six months ended 30 June 2020, a decrease of 16.8% from US$119,000 in 2019[156] Share Options and Capital Structure - The company granted 54,956,892 share options at an exercise price of HK$0.075 per share on 17 May 2019, which were adjusted to 2,718,843 options at an exercise price of HK$1.516 due to a Rights Issue[199] - No share options were granted, exercised, cancelled, or lapsed during the Interim Period, with 2,718,843 outstanding share options remaining under the Share Option Scheme[51] - The share options scheme allows the company to grant options to various participants as incentives for their contributions[195]

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].