今日早盘，A股小幅走强，北证50、科创50均涨超1%，创业板指则收复2000点大关，深证成指、沪深300等也终结连 续下跌的走势。近4500只个股上涨，成交呈小幅放大的趋势。 盘面上，EDA概念、消费电子、无人驾驶、创新药等板块涨幅居前，黄金、日用化工、调味品、航空机场等板块小幅 调整。 EDA概念放量大涨 EDA概念早间大幅高开高走，板块指数盘中一度放量飙涨逾6%，创2个多月来新高，并逼近年内最高点，仅1小时成 交就超过昨日（28日）全天成交。概伦电子20%涨停，申通地铁、粤电力Ａ均开盘涨停。 EDA工具作为集成电路领域的基础工具， 广泛应用于集成电路设计、制造、封装和测试等环节，实现电路设计、版 图设计、版图验证、性能分析等工作的计算机自动处理。 从全球EDA市场来看，美国厂商占据了垄断地位。根据TrendForce数据，2024年，Synopsys、Cadence和Siemens EDA 这三家美国公司分别占据全球EDA市场32%、29%和13%的市场份额，三者合计市场份额高达74%。并且三家公司合 共占中国EDA市场约八成。 中信证券表示，EDA国产化渐入深水区，数字IC设计EDA全流程能力持续完善， ...

Financial Performance - The adjusted revenue for the year increased by approximately 17.8%, while total revenue decreased by about 14.3% to approximately HKD 5,589.7 million from HKD 6,521.9 million in the previous year[8]. - The company recorded a loss of approximately HKD 3,904.0 million, an increase from the loss of about HKD 1,204.9 million in the previous year[8]. - The total revenue for the year was approximately HKD 5,589.7 million, a decrease of about 14.3% from approximately HKD 6,521.9 million in the previous year[23]. - The group recorded a loss of approximately HKD 3,904.0 million, an increase of about 220.6% compared to a loss of approximately HKD 1,204.9 million in the previous year[15]. - The group recorded a gross loss of approximately HKD 328.0 million with a gross loss margin of 5.9%, compared to a gross profit of HKD 345.8 million and a gross profit margin of 5.3% in the same period last year[26]. - The company reported a total available distributable reserve of HKD 1,827,745,000 as of December 31, 2024, which includes a share premium account of HKD 1,780,859,000[122]. - The total comprehensive loss for 2024 was HKD 4,052,095, compared to HKD 1,338,467 in 2023, indicating a significant increase in overall losses[181]. - The company reported a loss of HKD 3,942,177,000 for the year 2024, compared to a loss of HKD 1,229,656,000 in 2023[186]. Revenue Segmentation - In the consumer electronics components segment, adjusted revenue grew by approximately 17.5%, but total revenue decreased by about 19.5% to approximately HKD 4,536.0 million, accounting for about 81.1% of total revenue[9]. - The home and sports goods segment recorded a sales growth of approximately 19.0%, contributing about 18.9% to total revenue[11]. - Revenue from the consumer electronics components segment decreased by approximately 19.5% to about HKD 4,536.0 million, accounting for approximately 81.1% of total revenue[17]. - The home and sports goods segment saw sales rise by approximately 19.0% to about HKD 1,053.7 million, representing approximately 18.9% of total revenue[19]. Operational Strategies - The company plans to focus on optimizing technological innovation and selective customer groups while implementing prudent operational strategies[11]. - The company aims to enhance organizational resilience through R&D improvements in product quality and production processes[11]. - The group aims to enhance its manufacturing capabilities and product coverage through a focus on "product design + smart manufacturing" strategies[22]. - The group is reassessing its customer structure and is taking a more cautious approach to order risks to balance business growth with risk management[34]. Financial Management - The company is committed to maintaining robust financial management to improve flexibility in response to industry restructuring[11]. - The company emphasizes the importance of cash reserves and liquidity to ensure long-term business development[11]. - The company anticipates maintaining sufficient cash reserves to meet its operational needs, supported by cash flow from operations and available credit facilities[40]. - The company has a cash and cash equivalents balance of approximately HKD 1,615.7 million as of December 31, 2024, compared to HKD 1,676.9 million as of December 31, 2023[40]. Impairment and Provisions - Impairment provisions of approximately HKD 1,977.6 million and HKD 105.2 million were made for fixed assets and investments in associates, respectively[16]. - The group recognized an impairment provision of HKD 1,977.6 million for property, plant, and equipment, primarily due to macro challenges and increased competition in the market[32]. - The company recognized an impairment provision of HKD 1,977,624 for property, plant, and equipment in 2024, with no such provision in 2023[179]. Corporate Governance - The company has adopted corporate governance principles to enhance shareholder value and ensure accountability to stakeholders[67]. - The independent non-executive directors have extensive experience in finance and governance, contributing to the company's oversight[61][62][64]. - The company complies with the Listing Rules and has maintained high standards of corporate governance throughout the year[67]. - The board consists of five executive directors, one non-executive director, and four independent non-executive directors, responsible for creating shareholder value[69]. Risk Management - The group has identified various financial and operational risks, particularly related to its operations in China[110][111]. - The risk management committee was established in 2015, focusing on four core risks: compliance risk, financial risk, operational risk, and strategic risk[93]. - The board is responsible for establishing risk management and internal control systems, ensuring effective operation[71]. Shareholder Communication - The company emphasizes effective communication with shareholders and holds an annual general meeting to facilitate direct communication[100]. - The board will consider declaring dividends based on profitability, financial condition, debt repayment requirements, and capital expenditure plans[47]. Employee Management - The group regularly reviews its compensation policy and evaluates employee performance based on individual performance, qualifications, industry experience, and market trends[45]. - The company has a structured approach to attract and retain core talent through its share incentive plan[132]. Environmental Commitment - The company is committed to environmental protection and regularly reviews its environmental practices[112].

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 5,589,739, a decrease of 14.3% compared to HKD 6,521,928 in 2023[2] - The gross loss for the year was HKD 327,955, compared to a gross profit of HKD 345,783 in the previous year, representing a significant decline[3] - The net loss attributable to the company's owners was HKD 3,942,177, an increase of 220.6% from HKD 1,229,656 in 2023[2] - The net loss margin increased to 70.5% from 18.9%, reflecting a deterioration in financial performance[2] - Basic and diluted loss per share was HKD 40.49, compared to a profit of HKD 12.64 per share in the previous year, marking a 220.3% decline[2] - Total comprehensive loss for the year was HKD 4,052,095, compared to HKD 1,338,467 in 2023, highlighting increased financial strain[4] - The company reported a loss before tax of HKD 3,871,395, compared to HKD 1,153,144 in the previous year, indicating worsening operational challenges[3] - The company recorded a net loss of HKD 3,903,971 thousand in 2024, compared to a net loss of HKD 1,204,913 thousand in 2023, indicating a worsening loss situation[22] - The group reported a pre-tax loss of HKD 1,266,411,000 for 2024, a decrease from HKD 1,405,283,000 in 2023, reflecting a reduction of approximately 9.9%[36] Asset and Liability Management - Total non-current assets decreased from HKD 5,269,173 thousand in 2023 to HKD 2,716,395 thousand in 2024, a reduction of approximately 48.5%[5] - Current assets also saw a decline from HKD 8,033,557 thousand in 2023 to HKD 4,437,841 thousand in 2024, representing a decrease of about 44.5%[5] - The company's cash and cash equivalents decreased from HKD 1,160,490 thousand in 2023 to HKD 840,592 thousand in 2024, a drop of approximately 27.5%[5] - Total liabilities decreased from HKD 5,072,868 thousand in 2023 to HKD 3,660,518 thousand in 2024, a reduction of around 27.8%[6] - The net asset value dropped significantly from HKD 7,003,496 thousand in 2023 to HKD 2,904,843 thousand in 2024, a decline of approximately 58.6%[6] - The company's equity attributable to owners decreased from HKD 6,682,824 thousand in 2023 to HKD 2,605,518 thousand in 2024, a decrease of about 61.0%[6] - The company’s borrowings decreased from HKD 1,878,213 thousand in 2023 to HKD 547,963 thousand in 2024, a reduction of approximately 70.8%[6] - The group’s total assets decreased from HKD 13,739,092 thousand in 2023 to HKD 7,154,236 thousand in 2024, a decline of about 48.0%[5] Revenue Breakdown - Total revenue from external customers decreased to HKD 5,589,739 thousand in 2024 from HKD 6,521,928 thousand in 2023, representing a decline of approximately 14.3%[30] - Revenue from major customers A, B, and C contributed HKD 1,502,119 thousand in 2024, down from HKD 2,034,304 thousand in 2023, reflecting a decrease of approximately 26%[29] - Revenue from consumer electronics components decreased by approximately 19.5% to about HKD 4,536.0 million, accounting for approximately 81.1% of total revenue[62] - Revenue from the Asia-Pacific region (excluding China) was HKD 499,304 thousand in 2024, up from HKD 442,535 thousand in 2023, showing an increase of approximately 12.8%[25] - The home and sports products segment recorded a year-on-year sales growth of approximately 19.0%, contributing about 18.9% to the group's total revenue[63] Strategic Initiatives - The company plans to explore new strategies for market expansion and product development to improve future performance[3] - The group plans to focus on precision sales, having received proposals related to this strategy in April 2023[42] - The group aims to maintain strict monitoring of overdue receivables and has established credit terms of one to three months for customers[56] - The group plans to optimize its order strategy and customer structure to balance business stability and risk management amid increased competition[62] - The group plans to focus on optimizing technological innovation and carefully selecting customer groups to enhance operational resilience amid ongoing market challenges[63] - The group aims to maintain liquidity and strengthen cash reserves to navigate the industry's restructuring and ensure long-term business development[63] Acquisitions and Disposals - The company has agreed to acquire Credence Technology Limited for HKD 60,000,000, with the transaction expected to create synergies with its existing electrical business[44] - The acquisition is part of the company's strategy to expand and create synergies with its existing business, completed on January 3, 2024[45] - The target company contributed HKD 257,334,000 in revenue and HKD 917,000 in profit to the group from the acquisition date until December 31, 2024[48] - The company sold its precision business for HKD 2,015,000,000, with the transaction completed on April 3, 2024[49] - The sale of the precision business resulted in a net gain of HKD 146,420,000, while the sale of the subsidiary business resulted in a net loss of HKD 13,370,000[50] - The net cash inflow from the sale of subsidiaries, after tax, was HKD 1,762,222,000 for the precision business and a loss of HKD 3,501,000 for the subsidiary business[51] Employee and Governance Matters - The group has approximately 10,000 long-term employees as of December 31, 2024, down from 15,000 in 2023[90] - The group plans to consider dividend payments based on profitability, financial condition, and capital expenditure plans[92] - The company has adhered to all corporate governance codes as per the Hong Kong Stock Exchange, with four independent non-executive directors appointed[108] - The audit committee consists of three independent non-executive directors and is responsible for monitoring the independence of external auditors and reviewing the group's risk management and internal control systems[111] - The company has not repurchased or sold any of its listed securities during the year[112] Future Outlook - The consumer electronics segment is expected to face continued challenges due to intense competition and a complex international political and economic environment[72] - The group has implemented strategic adjustments, including business restructuring and improved asset-liability ratios, to ensure long-term stability[72] - The group anticipates more development opportunities in the industry, supported by stable operating cash flow and a healthy balance sheet[73]

TONGDA GROUP 2024 中期報告 通達集團控股有限公司 於開曼群島註冊成立之有限公司 股份代號：698 目錄 公司資料 2 有關前瞻性陳述的警告聲明 4 管理層討論及分析 5 簡明綜合中期財務報表審閱報告 17 簡明綜合收益表 19 簡明綜合全面收益表 20 簡明綜合財務狀況表 21 簡明綜合權益變動表 24 簡明綜合現金流量表 26 簡明綜合中期財務報表附註 28 補充資料 64 1 通達集團控股有限公司 中期報告2024 公司資料 | --- | --- | |-----------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------| | | | | 董事會 執行董事 王亞南先生 （主席） 王雄文先生 （副主席） 王明析先生 ...

Financial Performance - The group's revenue for the six months ended June 30, 2024, was approximately HKD 2,986,005,000, an increase of about 0.3% compared to HKD 2,975,627,000 for the same period in 2023[2] - The profit attributable to the company's owners for the six months ended June 30, 2024, was approximately HKD 12,842,000, a decrease of about 33.7% from HKD 19,377,000 for the same period in 2023[2] - Basic earnings per share for the six months ended June 30, 2024, were HKD 0.13, a decrease of about 35.0% compared to HKD 0.20 for the same period in 2023[3] - Gross profit for the six months ended June 30, 2024, was HKD 624,838,000, compared to HKD 588,240,000 for the same period in 2023[2] - The group reported a net profit of HKD 36,296,000 for the six months ended June 30, 2024, compared to HKD 32,378,000 for the same period in 2023[4] - The company's effective tax rate remains stable at 16.5% for Hong Kong profits tax, consistent with the previous year[20] - The group reported a total tax expense of HKD 20,680 for the six months ended June 30, 2024, compared to HKD 14,223 in 2023, indicating a year-over-year increase of approximately 45.5%[22] Dividends and Shareholder Returns - The board did not recommend any interim dividend for the six months ended June 30, 2024[1] - The company did not recommend any interim dividend for the period ending June 30, 2023[34] - No interim dividend will be paid for the year 2023, reflecting a cautious approach to cash distribution[68] Assets and Liabilities - The total non-current assets as of June 30, 2024, were HKD 4,999,500,000, a decrease from HKD 5,269,173,000 as of December 31, 2023[5] - Current liabilities totaled HKD 3,136,654,000 as of June 30, 2024, down from HKD 5,072,868,000 as of December 31, 2023[6] - The net asset value as of June 30, 2024, was HKD 6,876,870,000, compared to HKD 7,003,496,000 as of December 31, 2023[6] - Total assets as of June 30, 2024, amounted to HKD 10,533,790 thousand, while total liabilities were HKD 3,656,920 thousand, resulting in a net asset position of HKD 6,876,870 thousand[14] - The group had total assets of HKD 10,533.8 million as of June 30, 2024, a decrease from HKD 13,302.7 million as of December 31, 2023[52] Revenue Segmentation - The segment revenue from consumer electronic components was HKD 2,478,496 thousand, down 2.2% from HKD 2,533,899 thousand in the previous year[13] - The segment revenue from home and sports products increased by 14.9% to HKD 507,509 thousand, compared to HKD 441,728 thousand in the prior year[13] - Revenue from external customers in China for the six months ended June 30, 2024, was HKD 2,317,515, a slight decrease from HKD 2,323,887 in 2023[16] - Major customers A, B, and C contributed a total of HKD 685,239 in revenue, down from HKD 932,295 in the previous year, with customer A's revenue at HKD 381,029[18] Expenses and Cost Management - The group's financial expenses for the six months ended June 30, 2024, were HKD 75,001,000, down from HKD 86,654,000 for the same period in 2023[2] - General and administrative expenses rose by 30.2% to approximately HKD 655.5 million, accounting for 22.0% of total revenue, up from 16.9% in the previous year[49] - Financial expenses decreased by approximately 13.5% to about HKD 75.0 million, mainly due to a reduction in outstanding bank borrowings[51] Research and Development - Research and development costs increased significantly to HKD 372,080 for the six months ended June 30, 2024, compared to HKD 248,048 in 2023, reflecting a growth of approximately 49.9%[19] Acquisitions and Sales - The company completed the acquisition of Credence Technology Limited for HKD 60,000,000, with a guaranteed EBITDA of no less than HKD 12,000,000 for the fiscal year ending December 31, 2024[29] - The revenue contribution from the acquired company for the period up to June 30, 2024, was HKD 160,994,000, with a profit contribution of HKD 3,010,000[33] - The company agreed to sell its precision micro-component manufacturing business for HKD 2,015,000,000, with the transaction expected to complete on April 3, 2024[57] Employee and Corporate Governance - The group employed approximately 10,000 long-term employees as of June 30, 2024, down from 15,000 a year earlier[56] - The company has adhered to the corporate governance code as per the listing rules, with the roles of Chairman and CEO currently held by the same individual, Mr. Wang Yanan[72] - The audit committee consists of three independent non-executive directors and one non-executive director, ensuring compliance with the guidelines set by the Hong Kong Institute of Certified Public Accountants[74] Market Outlook and Strategy - The smartphone market appears to have emerged from its lowest point, but the outlook remains uncertain due to intense competition and shifting consumer preferences[66] - The company plans to strengthen its core competitiveness in three key areas: sports and outdoor, home living, and health care, while establishing new business relationships with major consumer brands[66] - The company aims to optimize its business portfolio and improve production processes to ensure long-term sustainable growth and effectively release asset value[67]

Incentive Shares - A total of 64,500,000 incentive shares were granted in 2022, with 1,000,000 shares returned due to the termination of employment of a selected employee[1] - As of December 31, 2023, the number of incentive shares available for grant was 917,425,764[1] - 16,350,000 incentive shares were vested during the fiscal year ending December 31, 2023, with a weighted average closing price of HKD 0.125 per share prior to vesting[1]

6 Aug 2024 Earnings Summary CMB International Global Markets | Equity Research | Company Update Tongda (698 HK) 1H24E preview: eyes on Android recovery and smart tech growth Tongda will report 1H24 results on 28 Aug. We estimate 1H24 revenue/net profit of HK$ 2.6bn/35mn (-10%/+82% YoY) mainly driven by Android smartphone recovery, inventory restocking from overseas household & sports goods customers, network communications router demand pick-up on Wifi-7 upgrade and stabilized GPM for each segment. Looking ...

2024 年 8 月 6 日 CMB 国际全球市场 | 股票研究 | 公司更新 通达 （ 698 香港 ） 1H24E 预览 ： 关注 Android 恢复和智能技术增长 目标价 0.13 港元 （ 先前 TP 为 0.14 港元 ） 涨 / 跌 73.6% 现价 0.08 港元中国科技 亚历克斯 NG (852) 3900 0881 李汉青 通达将于 8 月 28 日公布 1H24 业绩我们估计 2016 年上半年的收入 / 净利润为 26 亿港元 / 3500 万 港元 （ 同比 - 10% / + 82% ），主要受 Adroid 智能手机复苏、海外家用和体育用品客户的库存恢 复、网络通信路由器对 Wifi - 7 升级的需求回升以及每个细分市场的 GPM 稳定的推动。展望 2H24 / FY25E，我们预计手机复苏，ASP 稳定，家用和体育用品订单获胜。我们对马来西亚工厂的扩建 也持积极态度，以满足非手机客户的需求。我们将 FY24 - 25E 每股收益下调了 23 - 32%，以反映 苹果业务处置和 Adroid 市场竞争。维持买入，新 TP 为 0.13 港元，基于 2012 财年的 6.0 倍市 ...

Financial Performance - The company's revenue decreased by approximately 18.2% from about HKD 7,972.1 million in the previous year to approximately HKD 6,521.9 million for the year[29]. - Gross profit fell by about 71.9%, from approximately HKD 1,229.8 million to approximately HKD 345.8 million[29]. - The group's gross profit decreased from approximately HKD 1,229.8 million in the previous year to about HKD 345.8 million, a decline of approximately 71.9%[38]. - The group's sales revenue decreased by 18.2% to approximately HKD 6,521.9 million, down from HKD 7,972.1 million in the previous year[56]. - The mobile phone casing sales faced challenges, with revenue dropping about 18.1% to approximately HKD 5,636.4 million, accounting for about 86.4% of total sales[60]. - The gross profit fell by approximately 71.9% to about HKD 345.8 million, with a gross margin of approximately 5.3%, down from 15.4% in the previous year[70]. - Other income and net gains increased by approximately 21.6% or about HKD 24.3 million to approximately HKD 137.0 million, mainly due to government subsidies and changes in the fair value of structured deposits[96]. Operational Strategy - The company is undergoing operational restructuring to reduce financing costs and improve liquidity and debt-to-equity ratio amid challenging economic conditions[32]. - The group plans to sell its precision components business for HKD 2,015.0 million to reduce financing costs and improve liquidity and balance sheet strength[40]. - The company is focusing on expanding its mature and potential growth businesses, including mobile phone casings and smart appliance casings[62]. - The company will continue to review its strategic planning in response to the uncertain external economic environment and optimize its business portfolio[65]. - The company has established new business relationships with major consumer brands, which is expected to drive sales recovery in the coming year[63]. - The company anticipates increased demand for networking products due to the expected popularity of Wi-Fi 7 routers and the upcoming Paris Olympics[32]. - The home and sports goods business is expected to see rapid sales growth due to new partnerships with major consumer brands and the completion of new factories[46]. - The group aims to explore new products and materials with clients to enhance participation in new product lines as a medium to long-term strategic goal[35]. Financial Position - The company has sufficient cash reserves, and the recent losses from operational adjustments will not affect its ongoing business viability[29]. - The group has sufficient cash reserves, and the reported losses do not affect its ongoing business capabilities[38]. - The company's cash and cash equivalents amounted to HKD 1,676.9 million as of December 31, 2023, compared to HKD 1,518.4 million at the end of the previous year[102]. - The company's total assets were HKD 13,302.7 million as of December 31, 2023, down from HKD 14,228.9 million a year earlier[102]. - The debt-to-equity ratio was 18.1% as of December 31, 2023, compared to 19.1% at the end of the previous year[103]. - The group has agreed to sell its precision micro-component manufacturing business for HKD 2,015,000,000, with the transaction expected to be completed in the first half of 2024[109]. - The group's bank deposits pledged to banks amounted to HKD 194.6 million as of December 31, 2023, down from HKD 323.2 million as of December 31, 2022[106]. Corporate Governance - The company has maintained a high standard of corporate governance to enhance shareholder value and protect the interests of stakeholders[120]. - The board consists of five executive directors, one non-executive director, and four independent non-executive directors, ensuring accountability to shareholders[121]. - The board is responsible for managing the company's overall financial condition and ensuring timely disclosures of operational and financial status[123]. - The company adheres to the corporate governance code and has outlined deviations from the code in its report[144]. - The board structure is regularly reviewed to ensure it remains suitable for the company's operations and beneficial to shareholders[124]. - Independent non-executive directors have confirmed their independence according to the listing rules, ensuring unbiased oversight[128]. - The company has a clear delegation of responsibilities among executive directors to manage various operational aspects effectively[129]. - The board of directors held 8 meetings during the year, ensuring effective oversight of the group's operations[151]. - The audit committee, chaired by an independent non-executive director, held 3 meetings to monitor financial reporting and ensure auditor independence[162]. Risk Management - The company has identified four core risks: compliance risk, financial risk, operational risk, and strategic risk, which could adversely affect profitability[172]. - The risk management committee was established in 2015, including financial units and operational units from various production bases[197]. - The risk management and internal control systems are deemed sufficient and effective, with adequate resources, employee qualifications, training programs, and compliance budgets[200]. - The board is responsible for establishing risk management and internal control systems, with regular discussions with management[149]. Employee and Social Responsibility - As of December 31, 2023, the group employed approximately 15,000 long-term employees, a decrease from about 18,000 employees as of December 31, 2022[106]. - The group participates in social insurance plans operated by local government agencies in accordance with Chinese regulations[106]. - The company has adopted a diversity policy for the board, considering factors such as gender, age, and professional experience in its composition[187]. - The company has not established measurable gender diversity targets for the board but aims to maintain and increase female representation when suitable candidates are identified[164].

Financial Performance - The group's total revenue for the year was approximately HKD 6,521.9 million, a decrease of about HKD 1,450.2 million or approximately 18.2% compared to the previous year[5] - Total revenue for the year 2023 was HKD 5,636,950,000, a decrease of 18.0% compared to HKD 6,879,565,000 in 2022[24] - The company reported a loss before tax of HKD 1,153,144,000 for 2023, compared to a profit of HKD 219,003,000 in 2022[24] - The net loss for the year 2023 was HKD 1,204,913,000, compared to a profit of HKD 151,701,000 in 2022[24] - The net loss attributable to shareholders for 2023 was HKD 1,229,656 thousand, compared to a profit of HKD 137,287 thousand in 2022, representing a change of 995.7%[34] - The company reported a provision for impairment losses of HKD 342,781,000 in 2023, compared to HKD 248,791,000 in 2022, an increase of 37.8%[31] - The company recognized a significant foreign exchange loss of HKD 132,159 thousand related to its subsidiaries in 2023, compared to a loss of HKD 735,860 thousand in 2022[177] Gross Profit and Margins - The group's gross profit decreased by approximately 71.9% to about HKD 345.8 million, with a gross profit margin of approximately 5.3%, down about 10.1 percentage points from the previous year[6] - Gross profit for 2023 was HKD 345,783 thousand, down 71.9% from HKD 1,229,742 thousand in 2022[34] - Gross margin decreased to 5.3% in 2023 from 15.4% in 2022, a decline of 10.1 percentage points[34] Revenue Sources and Customer Relationships - Revenue from major customers A and B totaled HKD 2,034,304,000 in 2023, down from HKD 2,469,892,000 in 2022, a decrease of 17.7%[29] - The group’s largest customer accounted for 17.1% of total trade receivables and notes, down from 21.7% in 2022, indicating improved customer diversification[92] - The home and sports goods segment's revenue decreased approximately 18.1% to about HKD 5,636.4 million, contributing around 86.4% of total sales revenue[133] Operational Adjustments and Future Plans - The group expects to provide more diverse smartphone shells and accessories in the coming year as major customers' inventory pressure decreases, which will benefit overall sales and gross margin[1] - The group plans to invest more effort into expanding its smart appliance shell business, leveraging competitive advantages from mature technology amid improving market conditions due to government policies stimulating home appliance consumption[2] - The group aims to explore potential markets through various channels to increase capacity utilization and attract high-margin clients[1] - The group plans to divest its smart appliance casing business to free up operational capital for expanding its remaining businesses, including mobile phone casings and smart appliance casings[80] Inventory and Receivables - Inventory provisions increased from HKD 238.2 million in the previous year to HKD 336.7 million due to declining inventory turnover rates[7] - The total accounts receivable amounted to HKD 467,251,000, an increase from HKD 268,077,000 in the previous year, while notes receivable rose to HKD 129,268,000 from HKD 2,949,000[62] - The group’s trade receivables decreased to HKD 1,726,098,000 in 2023 from HKD 2,109,103,000 in 2022, a reduction of about 18.2%[91] Cost Management and Expenses - Employee benefits expenses, excluding directors' remuneration, decreased to HKD 1,534,050 thousand in 2023 from HKD 2,033,145 thousand in 2022[32] - Sales and distribution expenses increased by approximately 24.1% to about HKD 81.8 million, accounting for 1.3% of the group's revenue, up from 0.8% in the previous year[148] - General and administrative expenses rose by about 3.8% to approximately HKD 1,210.6 million, representing 18.6% of the group's revenue, an increase of 4.0 percentage points from the previous year[149] - Financial expenses increased by approximately 19.1% to about HKD 196.8 million, mainly due to rising average interest rates[151] Cash Flow and Financial Position - The group's cash and cash equivalents amounted to HKD 1,676.9 million as of December 31, 2023, up from HKD 1,518.4 million the previous year[153] - The debt-to-equity ratio as of December 31, 2023, was 18.1%, a slight decrease from 19.1% the previous year[154] - The group's net cash flow from operating activities was HKD 7,013 thousand, a significant decrease from HKD 743,435 thousand in the previous year[153] Strategic Initiatives and Market Outlook - The group is actively exploring applications for high-margin non-electronic consumer products using existing precision electronic component production equipment and technology, achieving initial positive results[1] - The overall smartphone market is expected to recover, with global shipments projected to reach 1.2 billion units in 2024, a year-on-year growth of 2.8%[1] - The group anticipates the widespread adoption of Wi-Fi 7 routers, with the Paris Olympics expected to boost demand for new product models among its network communication clients[104] - The group has established new business relationships with major consumer brands, including a top 50 Spanish retailer and a U.S. high-end consumer brand, which may drive sales recovery in the coming year[111]