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]

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]