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]

Share Incentive Plan Details - The total number of shares available for the share incentive plan as of December 31, 2022, was 916,425,764 shares, which increased to 917,425,764 shares by June 30, 2023[8]. - The number of shares granted under the share incentive plan for the fiscal year 2022 and the first half of 2023 was 55,500,000 shares and 38,150,000 shares, respectively, representing approximately 0.57% and 0.39% of the weighted average number of shares issued during each period[10]. - The total issuance price for the share incentive plan was HKD 7,946,400, with the issuance price per share set at HKD 0.1232[7]. - The company terminated a total issuance price of HKD 1,108,800 and HKD 123,200 for the fiscal year 2022 and the first half of 2023, respectively[7]. - The total number of shares issued under the share incentive plan as of the fiscal year 2022 was 16,650,000 shares, with a termination of 2,700,000 shares[5]. - The company has a share incentive plan that allows for a maximum of 10% of the total issued shares, equating to 971,925,764 shares[3]. - The share incentive plan was adopted on January 10, 2022, and is subject to the approval of shareholders[3]. - The company reported a total of 64,500,000 shares issued as incentive shares based on the general authorization granted at the annual general meeting held on May 14, 2021[6]. - The share incentive plan allows for the issuance of shares based on the higher of the par value, 50% of the closing price on the grant date, or 50% of the average closing price over the preceding five trading days[7]. - The company has not disclosed any other changes to the contents of the 2022 annual report and the 2023 interim report beyond what is provided in this announcement[11].

Financial Performance - Total comprehensive income for the six months ended June 30, 2023, was a loss of HKD 307,864,000 compared to a loss of HKD 327,477,000 for the same period in 2022, indicating a slight improvement [2][3]. - The company reported a net income of HKD 19,377,000 for the six months ended June 30, 2023, compared to HKD 13,001,000 for the same period in 2022, showing an increase of approximately 49% [7]. - Profit attributable to the company's owners decreased by 41.7% or HKD 13.8 million to approximately HKD 19.4 million, down from approximately HKD 33.2 million in the same period last year [71]. - Net profit attributable to the company's owners for the period was HKD 32,378 thousand, compared to HKD 42,904 thousand in 2022, reflecting a decline of approximately 24.4% [128]. - Earnings per share from continuing operations decreased to HKD 0.49 from HKD 0.88, a drop of about 44.3% [130]. Revenue and Sales - The group's revenue from continuing operations decreased by approximately 29.9% or HKD 1,207.3 million to about HKD 2,831.8 million compared to the same period last year [54]. - Total revenue from continuing operations for the six months ended June 30, 2023, was HKD 2,831.8 million, a decrease of 29.9% or HKD 1,207.3 million compared to HKD 4,039.1 million in the same period last year [71]. - Revenue from external customers for the first half of 2023 was HKD 2,831,767,000, compared to HKD 4,039,140,000 in the same period of 2022 [194]. - The smartphone casing and precision components business saw a decline of 26.5% from HKD 2,859.2 million to HKD 2,100.5 million, representing 74.2% of the group's total revenue from continuing operations [107]. - The home and sports goods business revenue dropped by 34.5% from HKD 674.0 million to HKD 441.7 million, making up 15.6% of the group's total revenue from continuing operations [108]. Assets and Liabilities - The total equity increased to HKD 8,031,740,000 as of June 30, 2023, up from HKD 7,630,836,000 as of June 30, 2022, reflecting a growth of approximately 5.3% [6]. - The total assets as of June 30, 2023, were HKD 13,708,052,000, reflecting a stable asset base compared to previous periods [31]. - Total liabilities decreased to HKD 4,588,894 thousand from HKD 5,444,365 thousand, a reduction of approximately 15.7% [133]. - The group reported total assets of HKD 14,228,885,000, with undistributed assets at HKD 1,955,180,000 [192]. Cash Flow and Investments - The net cash flow used in investing activities was HKD (526,826,000) for the six months ended June 30, 2023, compared to HKD (253,636,000) for the same period in 2022, indicating increased investment outflows [10]. - The cash and cash equivalents at the end of the period stood at HKD 1,424,498,000, an increase from HKD 1,130,885,000 as of June 30, 2022, representing a growth of approximately 26% [11]. - The net cash flow from operating activities for the six months ended June 30, 2023, was HKD 319,191,000, compared to HKD 90,399,000 in 2022, representing a significant increase of 253% [157]. - The company reported a net cash flow from financing activities of HKD 566,589 thousand, significantly higher than HKD 45,072 thousand in 2022 [148]. Expenses and Costs - The company’s financial expenses, excluding interest on lease liabilities, increased to HKD (79,343,000) from HKD (54,865,000) year-over-year, indicating rising costs [22]. - General and administrative expenses for continuing operations decreased by 6.2% or HKD 31.9 million to approximately HKD 483.8 million, accounting for about 17.1% of the group's continuing operations revenue [65]. - The total salary and wages for the six months ended June 30, 2023, amounted to HKD 644.4 million, a decrease from HKD 973.0 million for the same period last year [38]. Business Strategy and Outlook - The company plans to continue its market expansion and product development strategies to enhance future growth prospects [20]. - The group anticipates a slight recovery in smartphone shipments in the second half of 2023, despite ongoing challenges in the global smartphone market [102]. - The group is actively pursuing new business opportunities in emerging fields such as VR/AR, with a focus on developing components for related products [102]. - The group will continue to assess the development potential and risks of its main businesses, focusing on enhancing cash flow and exploring new industries and products [112]. Other Notable Points - The company completed a rights issue, raising approximately HKD 749 million to enhance financial stability and liquidity [189]. - The group is in the process of selling its smart appliance casing business, with the sale expected to be completed within 2023 [33]. - The company has entered into a financing agreement for a principal amount of up to HKD 866,666,000, which may increase to a maximum of HKD 1,066,666,000, to be utilized over a three-year term [168].

Financial Performance - The company's revenue from continuing operations decreased by approximately 29.9% or HKD 1,207.3 million to about HKD 2,831.8 million compared to HKD 4,039.1 million in the same period last year[25]. - The group reported a profit from continuing operations of HKD 47,628,000 for the six months ended June 30, 2023, down from HKD 85,864,000 in the same period last year[44]. - The profit attributable to the company's owners for the six months ended June 30, 2023, was approximately HKD 19,377,000, a decrease of about 41.7% compared to HKD 33,219,000 for the same period in 2022[107]. - Basic earnings per share for the six months ended June 30, 2023, was HKD 0.20, a decrease of about 41.2% compared to HKD 0.34 for the same period in 2022[107]. - The total comprehensive income for the period was HKD 32,378,000, down from HKD 42,904,000 in the previous year[100]. Revenue Breakdown - The group's revenue from mobile phone casings and precision components increased to 74.2% in 2023 from 70.8% in 2022[38]. - The group's revenue from home and sports products decreased to 15.6% in 2023 from 16.7% in 2022[38]. - The company's business segment supplying mobile phone cases and precision components saw revenue decline by 26.5% to HKD 2,100.5 million, accounting for 74.2% of total revenue from continuing operations[78]. - The home and sports goods business segment reported a revenue drop of 34.5% to HKD 441.7 million, representing 15.6% of total revenue from continuing operations[79]. - Revenue from external customers for the first half of 2023 was HKD 932,295, down 30% from HKD 1,332,193 in the same period of 2022[145]. Expenses and Costs - The total salary and wages for the six months ended June 30, 2023, amounted to HKD 644.4 million, down from HKD 973.0 million in the same period last year[31]. - The group’s financial expenses rose by approximately 44.4% to HKD 79.7 million due to an increase in average interest rates[53]. - General and administrative expenses for continuing operations decreased by 6.2% or HKD 31.9 million to approximately HKD 483.8 million, accounting for 17.1% of total revenue, an increase of 4.3 percentage points from 12.8% in the same period last year[163]. - The group incurred depreciation expenses of HKD 401,774 for the first half of 2023, down from HKD 462,408 in the same period of 2022[153]. - The group’s cash flow from operating activities showed a significant decline, reflecting the overall decrease in revenue and increased operational costs[151]. Assets and Liabilities - As of June 30, 2023, the total assets of the group were HKD 13,708.1 million, a decrease from HKD 14,228.9 million as of December 31, 2022[28]. - The group’s total liabilities as of June 30, 2023, were HKD 5,676,312, compared to HKD 6,598,049 as of December 31, 2022[142]. - The company's total assets less current liabilities increased to HKD 9,119,158 as of June 30, 2023, compared to HKD 8,784,520 at the end of 2022, an increase of about 3.8%[135]. - The net asset value increased to HKD 8,031,740 as of June 30, 2023, from HKD 7,630,836 at the end of 2022, representing an increase of approximately 5.3%[136]. - The group's asset-liability ratio as of June 30, 2023, was 13.5%, down from 19.1% as of December 31, 2022[170]. Cash and Financing - The net cash and bank balances as of June 30, 2023, included 72.9% in RMB, 20.1% in USD, and 7.0% in other currencies[28]. - Cash and bank balances amounted to HKD 1,678.0 million, an increase from HKD 1,518.4 million as of December 31, 2022, with HKD 261.2 million pledged as collateral for trade financing[190]. - The company expects to rely on net cash from operating activities, interest-bearing bank and other borrowings, and equity financing for its working capital and capital expenditure needs[27]. - The company’s bank borrowings are subject to interest rates ranging from 3.89% to 6.90%, compared to 1.16% to 6.90% as of December 31, 2022[76]. - The group’s financial expenses for the period were HKD 55,151,000, reflecting the cost of financing operations[98]. Strategic Initiatives - The group is exploring new markets and opportunities in high-margin non-electronic consumer goods, achieving initial positive results[39]. - The group plans to enhance R&D efforts and explore new industries, products, and materials, including renewable energy and industrial 5.0[40]. - The company plans to deepen cooperation with overseas customers and increase component participation in flagship products to maintain and enhance product pricing and overall sales[80]. - The company anticipates that the demand for networking products will grow with the popularization of Wi-Fi 7 routers and the upcoming Paris Olympics, which will benefit its networking customers[81]. - The group plans to complete the sale of its smart appliance casing business by the end of 2023[150]. Governance and Compliance - The company has maintained compliance with the corporate governance code throughout the reporting period[88]. - The board did not recommend any interim dividend for the six months ended June 30, 2023[107]. - No interim dividend is recommended for the period, consistent with the previous year[199]. - The company issued 16,350,000 shares under the share incentive plan for the six months ended June 30, 2023, compared to zero shares issued in the same period last year[70]. - The net expense for the share incentive plan for the six months ended June 30, 2023, was HKD 655,000, down from HKD 1,992,000 for the same period last year[87].

Smartphone Market Performance - The global smartphone shipment volume reached approximately 1.21 billion units, a year-on-year decline of 11.3%, marking a 10-year low[27]. - Domestic smartphone shipments in China totaled about 230 million units in 2022, representing a year-on-year decrease of 24.7%[27]. Financial Performance - The group's revenue from continuing operations decreased by 19.9% to HKD 7,559.2 million, down from HKD 9,443.0 million in the previous year[51]. - The gross profit margin improved by 2.5 percentage points to 18.4%, compared to 15.9% in the previous year, due to a shift in customer mix[51]. - Revenue from the mobile phone casing and precision components segment fell by 26.7% to HKD 5,334.6 million, accounting for 70.5% of total revenue from continuing operations[52]. - The home and sports goods segment saw an 11.6% increase in revenue to HKD 1,131.4 million, representing 15.0% of total revenue from continuing operations[55]. - The total revenue from continuing operations for the year was HKD 7,559.2 million, a decrease of HKD 1,873.8 million or 19.9% compared to HKD 9,433.0 million in the same period last year[63]. - The gross profit from continuing operations decreased by approximately 7.4% to HKD 1,392.4 million, with a gross margin of approximately 18.4%, up 2.5 percentage points from 15.9% in the previous year[64]. - The company reported a profit of HKD 97,193,000 for the fiscal year ending December 31, 2022, compared to HKD 1,777,033,000 in the previous year[145]. - Cash generated from operating activities was HKD 990,298,000, an increase from HKD 605,994,000 in the prior year[147]. - The pre-tax profit from continuing operations was HKD 490,578,000, up from HKD 303,271,000 year-over-year[148]. - The company recorded a loss from discontinued operations of HKD 271,575,000, compared to a loss of HKD 8,633,000 in the previous year[148]. - The company incurred a provision for inventory of HKD 238,154,000, significantly higher than HKD 20,364,000 in the previous year[148]. Business Strategy and Operations - The company aims to enhance its participation in new products and expand its product line through technological innovation, focusing on emerging products and new materials[21]. - The company is committed to improving production efficiency while ensuring safety and compliance through the re-engineering of management processes[24]. - The company plans to increase efforts in energy conservation and emission reduction by developing and promoting new technologies and equipment[24]. - The company acknowledges the importance of good corporate governance for sustainable high-quality development[24]. - The company is actively exploring new industries, products, and materials to enhance gross margins and cash flow, focusing on high-margin non-electronic consumer goods[74]. - The company anticipates continued growth in sales contributions from high-margin international clients, supported by improvements in operational management[74]. - The group is committed to optimizing its business portfolio and adjusting its operational structure in response to market conditions and opportunities[57]. - The group aims to leverage its existing production capacity and technology to focus on high-margin and high-growth potential businesses moving forward[57]. Corporate Governance - The company maintained compliance with the corporate governance code as per the listing rules[131]. - The board consists of five executive directors, one non-executive director, and three independent non-executive directors[133]. - The management team is responsible for the daily operations and reports to the board[133]. - The company has adopted a strict code of conduct for securities trading by directors[132]. - The company aims to enhance shareholder value through effective corporate governance practices[131]. Cash Flow and Capital Management - The group's cash flow from operating activities for the year was HKD 743.4 million, a significant increase from HKD 408.3 million in the previous year[95]. - Capital expenditures for the year amounted to HKD 594.1 million, down from HKD 1,268.2 million the previous year, focusing on expanding mobile phone casing and precision components[97]. - As of December 31, 2022, the group held cash and cash equivalents of HKD 1,518.4 million, a decrease from HKD 1,901.1 million the previous year[101]. - The total assets of the group as of December 31, 2022, were HKD 14,228.9 million, down from HKD 16,755.1 million the previous year[101]. Spin-offs and Divestitures - The company successfully spun off its home and sports goods business, which was listed on the Shenzhen Stock Exchange, raising a net amount of RMB 624.0 million[29]. - The group completed the spin-off of its home and sports goods business, raising a net amount of RMB 624.0 million, which will enhance the financial and financing capabilities of that business[48][60]. - The group sold 70% of its automotive business while retaining 30% ownership, aiming to focus resources on scalable and high-potential existing businesses[55]. - The company agreed to sell its 100% stake in Tong Da (Shanghai) Electrical Decoration Co., Ltd. for RMB 60,000,000, completed on November 3, 2022[108]. - The company conditionally agreed to sell 70% of its subsidiary Tongda Overseas Company Limited for HKD 385,000,000, with the sale completed on December 28, 2022[108]. - The company plans to sell its indirect wholly-owned subsidiary Stedfast Investments Holdings Limited, which is engaged in manufacturing and selling smart appliance casings, expected to complete in 2023[109]. Financial Reporting and Standards - The effective date for the revised Hong Kong Financial Reporting Standards will be postponed to January 1, 2024, or later for the 2020 amendments[1]. - The group will assess financial assets and liabilities based on the contractual terms and economic conditions at the acquisition date[167]. - Goodwill will be measured at cost less any accumulated impairment losses, with annual impairment testing conducted[169]. - The group has adopted valuation methods that utilize observable inputs to measure fair value, minimizing the use of unobservable inputs[174]. - The board is responsible for establishing the risk management system and internal controls, ensuring effective operation[178]. - The group has not identified any loss contracts under the revised accounting standards effective January 1, 2022, indicating no impact on financial performance[181]. - The group will recognize any contingent consideration at fair value on the acquisition date, with changes recognized in the profit and loss statement[168]. - The group’s investments in associates and joint ventures will be accounted for in the consolidated income statement and comprehensive income statement[163]. - The board will regularly review its structure to ensure it remains suitable for the group's operations and beneficial to shareholders[178]. - The group is currently assessing the impact of new and revised Hong Kong Financial Reporting Standards upon initial application, but has not yet determined if these will have any significant impact on the financial statements[185].

Financial Performance - The company's revenue for the year 2022 was HKD 7,559,205 thousand, a decrease of 19.9% compared to HKD 9,433,001 thousand in 2021[17]. - Gross profit for 2022 was HKD 1,392,370 thousand, down 7.4% from HKD 1,503,129 thousand in the previous year[17]. - The gross profit margin increased to 18.4% in 2022, up 2.5 percentage points from 15.9% in 2021[17]. - Net profit attributable to owners of the company from continuing operations was HKD 408,862 thousand, a significant increase of 72.6% compared to HKD 236,831 thousand in 2021[17]. - Basic earnings per share for the year was 1.41 HK cents, a decrease of 51.2% from 2.89 HK cents in the previous year[17]. - Earnings per share from continuing operations increased by 40.3% to 4.21 HK cents from 3.00 HK cents in 2021[17]. - The company reported a stable income from components related to new energy vehicle batteries and home and sports products despite challenging market conditions[55]. - The company reported cash and cash equivalents of HKD 1,195,166 thousand, down from HKD 1,365,993 thousand, a decrease of 12.5%[28]. - The financial expenses for the year 2022 amounted to HKD 137,831,000, a significant increase of 87% compared to HKD 73,689,000 in 2021[80]. - The total tax expense from continuing operations for 2022 was HKD 67,302,000, an increase from HKD 51,369,000 in 2021, reflecting higher earnings[90]. Operational Changes - The company successfully completed the spin-off of its home and sports products business, which was listed on the Shenzhen Stock Exchange on March 13, 2023, raising a net amount of RMB 624.0 million[55]. - The company sold 70% of its automotive business while retaining 30% ownership, indicating a strategic shift in its portfolio[55]. - The company plans to sell its entire smart appliance casing business to improve capital turnover efficiency[55]. - The company aims to increase participation in new products and expand its product line through technological innovation and collaboration with clients[53]. - The company is focusing on the development of AR/VR products, which are expected to become a new growth point in the consumer electronics industry[64]. - The group plans to explore new industries, products, materials, and fields to enhance profit margins and strengthen cash flow[150]. Market Conditions - The company experienced a year-on-year decline in sales due to weak sales from Chinese smartphone brands, but improved gross margins due to changes in customer composition[54]. - The global smartphone shipment volume decreased by 11.3% year-on-year to approximately 1.21 billion units, marking a 10-year low[62]. - The group faced a challenging external operating environment, including ongoing international disputes and global inflation, impacting consumer product sales[140]. - The largest customer accounted for approximately 17.9% of the group's total revenue, while the top five customers represented about 47.7%[168]. Asset and Liability Management - Total non-current assets decreased to HKD 6,235,924 thousand from HKD 7,401,561 thousand, a decline of approximately 15.8%[28]. - Current liabilities totaled HKD 5,444,365 thousand, down from HKD 7,719,965 thousand, indicating a reduction of 29.5%[28]. - The company's total equity decreased to HKD 7,630,836 thousand from HKD 8,221,492 thousand, a decline of 7.2%[30]. - The total accounts receivable and notes as of December 31, 2022, amounted to HKD 2,159,485,000, down from HKD 3,316,661,000 in 2021, reflecting a decrease of 34.8%[105]. - The asset-to-liability ratio as of December 31, 2022, was 19.1%, a slight decrease from 20.3% as of December 31, 2021[178]. Research and Development - Research and development costs for 2022 were HKD 514,879,000, slightly up from HKD 501,432,000 in 2021, highlighting continued investment in innovation[93]. - The group plans to allocate HKD 29 million for R&D to strengthen its competitive advantage in the mobile phone casing and precision components business[170]. Discontinued Operations - The revenue from discontinued operations for the year ended December 31, 2022, was HKD 412,858,000, a decrease of 23.1% from HKD 536,118,000 in 2021[103]. - The gross loss from discontinued operations for 2022 was HKD 162,628,000, compared to a gross profit of HKD 47,104,000 in 2021[103]. - The group reported a loss from discontinued operations of approximately HKD 271.6 million, a significant increase of about 3,058.1% compared to a loss of HKD 8.6 million in the previous year[175].

Financial Performance - The group's revenue decreased by approximately 16.6% from about HKD 5,115.2 million in the same period last year to about HKD 4,267.3 million[13]. - Profit attributable to the company's owners fell by approximately 38.7% from about HKD 54.2 million to about HKD 33.2 million[13]. - Total revenue declined by 16.6% from HKD 5,115.2 million in the previous year to HKD 4,267.3 million, primarily due to economic headwinds and weakened consumer demand[38]. - The company reported a profit of HKD 42.9 million, a significant decrease from HKD 62.2 million in the previous year[53]. - The group reported a profit before tax of HKD 33,219,000 for the six months ended June 30, 2022, down from HKD 54,241,000 in the previous year, indicating a decline of about 38.7%[118]. - Total comprehensive income for the period amounted to HKD (327,477,000), down from HKD 479,174,000 in the previous year, reflecting a significant decline[58]. Revenue Breakdown - The mobile casing and precision components segment reported a revenue decline of 22.2% year-on-year, from HKD 3,677.3 million to HKD 2,859.3 million, accounting for 67.0% of total revenue[40]. - The home and sports goods segment saw a revenue increase of 14.6% year-on-year, rising from HKD 587.9 million to HKD 674.0 million, representing 15.8% of total revenue[42]. - The network communication equipment and other segment's revenue decreased by 4.2% year-on-year, from HKD 527.8 million to HKD 505.8 million, making up 11.9% of total revenue[43]. - The smart appliance casing segment's revenue fell by 29.2% year-on-year, from HKD 322.2 million to HKD 228.2 million, contributing 5.3% to total revenue[47]. Expenses and Costs - Gross profit increased by approximately 0.4% from about HKD 769.5 million to about HKD 772.5 million, with a gross margin of approximately 18.1%, up about 3.1 percentage points from 15.0% in the same period last year[15]. - Other income and net gains decreased by approximately 26.8% or about HKD 24.9 million to about HKD 68.0 million, mainly due to reduced government subsidies[17]. - Selling and distribution expenses decreased by approximately 19.1% or about HKD 16.4 million to about HKD 69.3 million, accounting for about 1.6% of the group's revenue[18]. - General and administrative expenses decreased by approximately 8.5% or about HKD 50.1 million to about HKD 540.4 million, representing about 12.7% of the group's revenue[19]. - Other operating expenses net increased by approximately 324.4% or about HKD 42.5 million to about HKD 55.6 million, primarily due to increased foreign exchange losses from RMB depreciation[20]. - Financial expenses increased by approximately 14.5% or about HKD 9.5 million to about HKD 74.9 million, mainly due to an increase in average loan amounts[22]. Assets and Liabilities - As of June 30, 2022, the group held cash and cash equivalents of HKD 1,603.1 million, down from HKD 1,901.1 million as of December 31, 2021[26]. - The group's total assets amounted to HKD 15,411.6 million, a decrease from HKD 16,755.1 million as of December 31, 2021[26]. - The debt-to-equity ratio as of June 30, 2022, was 24.8%, up from 20.3% as of December 31, 2021[34]. - The group had bank borrowings of HKD 1,107.0 million, an increase from HKD 638.7 million as of December 31, 2021[35]. - Total liabilities decreased to HKD 7,515,556,000 from HKD 8,515,837,000, reflecting a reduction in overall debt levels[62]. - The company’s equity attributable to owners was HKD 7,833,195,000, down from HKD 8,160,182,000, indicating a decline in shareholder value[62]. Cash Flow and Investments - The net cash flow from operating activities for the six months ended June 30, 2022, was HKD 90,399 thousand, a significant improvement from a net outflow of HKD 147,220 thousand in the same period of 2021[75]. - The net cash used in investing activities was HKD (253,636) thousand, compared to HKD (759,000) thousand in the previous period, indicating a reduction in cash outflow[74]. - The company reported a decrease in cash and cash equivalents of HKD (118,165) thousand for the six months ended June 30, 2022, compared to a decrease of HKD (619,038) thousand in the same period of 2021[78]. - New bank loans amounted to HKD 1,984,481 thousand, while repayments of bank loans were HKD (1,933,534) thousand, indicating active financing activities[75]. Employee and Management - The group employed approximately 20,000 long-term employees as of June 30, 2022, down from 27,000 a year earlier[33]. - The group plans to focus on high-potential business segments and has applied for the independent listing of its home and sports goods business on the Shenzhen Stock Exchange[49]. - The group aims to enhance operational efficiency and maintain market share in the mobile casing segment while pursuing higher-margin orders in precision components[49]. - The company adopted a share incentive plan on January 17, 2022, allowing the board to grant shares to selected employees, with a total of 64,500,000 shares awarded to 14 selected employees[187][189]. Governance and Compliance - The audit committee consists of three independent non-executive directors and one non-executive director, ensuring compliance with governance standards[197]. - All independent non-executive directors have served for over nine years, and the company disclosed their tenure in a supplemental announcement[196]. - The company has adopted a standard code for securities trading by directors, confirming full compliance during the reporting period[200].

Financial Performance - The group's revenue increased by 28.2% from HKD 3,990.3 million in the previous year to HKD 5,115.2 million for the six months ended June 30, 2021[20]. - Profit attributable to the company's owners rose by 86.9% from HKD 29.0 million to HKD 54.2 million during the same period[30]. - Gross profit increased by approximately 26.7% to about HKD 769.5 million, with a gross margin of approximately 15.0%, a slight decrease of 0.2 percentage points compared to the previous year[22]. - Other income and net gains rose by 45.8% or HKD 29.2 million to HKD 92.9 million, primarily due to an increase in government subsidies[23]. - The company's attributable profit margin increased to 1.1% from 0.7% in the previous year, mainly due to increased gross profit[30]. - The net profit for the six months was HKD 62,169, a significant increase of 102.5% compared to HKD 30,811 in the previous year[57]. - The company reported a profit attributable to owners of HKD 54,241,000 for the six months ended June 30, 2021, compared to HKD 29,025,000 in the same period of 2020, representing an increase of 86.9%[112]. Expenses and Costs - Selling and distribution expenses increased by 38.4% or HKD 23.8 million to HKD 85.7 million, accounting for 1.7% of the group's revenue[25]. - General and administrative expenses rose by 30.7% or HKD 138.8 million to HKD 590.5 million, representing 11.5% of the group's revenue[26]. - Financial expenses decreased by 26.0% or HKD 23.0 million to HKD 65.4 million, mainly due to lower average interest rates during the period[28]. - The net operating expenses decreased by 55.9% or HKD 16.6 million to HKD 13.1 million, primarily due to a reduction in recorded exchange losses[27]. - Total tax expenses for the period amounted to HKD 28,096,000, significantly higher than HKD 6,851,000 in the previous year[1]. Assets and Liabilities - Total assets as of June 30, 2021, were HKD 15,645.0 million, compared to HKD 14,299.9 million as of December 31, 2020[38]. - Cash and cash equivalents decreased to HKD 1,302.5 million from HKD 1,757.4 million as of December 31, 2020[31]. - The asset-liability ratio increased to 36.1% from 26.6% as of December 31, 2020[38]. - The total liabilities of the group as of June 30, 2021, were HKD 8,505,848, an increase from HKD 7,633,833 as of December 31, 2020, reflecting a growth of approximately 11.4%[97]. - The company's inventory as of June 30, 2021, totaled HKD 2,589,556,000, an increase from HKD 2,204,257,000 as of December 31, 2020[117]. - Trade receivables increased to HKD 3,372,017,000 from HKD 2,881,635,000 year-over-year, with a provision for impairment of HKD 53,757,000[118]. - The company’s trade payables rose to HKD 2,084,974,000 from HKD 1,816,924,000 as of December 31, 2020[123]. Capital Expenditures and Investments - Capital expenditures for the period totaled HKD 438.3 million, down from HKD 1,206.5 million in the previous year[33]. - The company acquired property, plant, and equipment for approximately HKD 379,515,000 during the period, down from HKD 552,748,000 in the same period last year[114]. - The group has capital commitments of HKD 665,024,000 for property, plant, and equipment, and HKD 65,607,000 for the construction of rental buildings in mainland China as of June 30, 2021[139]. Market and Business Outlook - The smartphone casing and precision components business generated revenue of HKD 3,677.3 million, accounting for 71.9% of total revenue[41]. - The home and sports goods segment saw a 102.7% increase in sales to HKD 587.9 million, representing 11.5% of total revenue[46]. - The outlook includes plans to diversify the customer base and strengthen product capabilities[49]. - The company plans to enhance its market share by focusing on high-value metal frame orders and expanding its 3D and integrated Glastic shell business, which has a high technical barrier[51]. - The company is actively engaged in R&D for new products with major clients, anticipating the launch of a new flagship smartphone in the second half of the year[51]. - The group plans to continue expanding its market presence, particularly in the Asia-Pacific region, which contributed HKD 3,300,014 in revenue for the six months ended June 30, 2021[99]. Shareholder and Governance Information - The company plans to raise approximately HKD 752 million through a rights issue, offering 3,239,752,548 shares at HKD 0.232 per share[163]. - The board of directors includes five executive directors and three independent non-executive directors, with the roles of chairman and CEO held by the same individual, Mr. Wang Yanan[193]. - The company has complied with all applicable provisions of the corporate governance code during the reporting period[182]. - The audit committee consists of three independent non-executive directors and one non-executive director, ensuring compliance with financial regulations[184]. - The company has adopted a standard code of conduct for directors' securities transactions, confirming full compliance during the reporting period[187].