致：香港交易及結算所有限公司 公司名稱: 瑞鑫國際集團有限公司 呈交日期: 2025年7月31日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00724 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 6,000,000,000 | HKD | | 0.1 | HKD | | 600,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 6,000,000,000 | HKD | | 0.1 | HKD | | 600,000,000 | 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 本月底法定/註冊股 ...

Financial Performance - Revenue for the year ended December 31, 2023, was approximately HKD 74 million, a decrease of 61.6% from HKD 192.7 million for the year ended December 31, 2022[5]. - Loss attributable to owners increased to approximately HKD 74.9 million from HKD 58.2 million in the previous year, primarily due to operational losses and increased estimated interest expenses[5]. - The gross loss for the reporting period was approximately HKD 10.3 million, with inventory impairment recognized at approximately HKD 12.9 million[10]. - Estimated interest expenses related to convertible bonds amounted to HKD 17.5 million, compared to HKD 15.7 million in the previous year[7]. - The company recorded a loss of approximately HKD 55 million before accounting for non-cash items, compared to HKD 41 million in the previous year[6]. - The group incurred a loss of approximately HKD 74.9 million during the reporting period, with a net current liability of about HKD 23.1 million as of December 31, 2023[15]. Cash Flow and Liquidity - The net cash used in operating activities decreased significantly by approximately 53.1% year-on-year to about HKD 3.8 million[16]. - As of December 31, 2023, the group's bank balances and cash were approximately HKD 7.2 million, an improvement from HKD 6.4 million as of December 31, 2022[19]. - The current ratio was 0.4 times as of December 31, 2023, compared to 1.3 times in 2022[25]. - The group received a total of approximately HKD 5.9 million in shareholder loans during the reporting period, with an additional HKD 1.9 million received post-reporting period[19]. - The board believes that with the support of shareholder loans and proposed equity financing, the group will have sufficient operating funds to meet its financial obligations due within the next twelve months[21]. - The group plans to explore equity financing options to improve its financial condition and support future development, aiming to complete this by December 31, 2024[123]. Economic Environment - The overall economic environment, including rising interest rates and rapid industry advancements, contributed to the significant decline in revenue[10]. - The global economic growth rate is projected to be 3.1% in 2024 and slightly increase to 3.2% in 2025, which is below the historical average of 3.8% from 2000 to 2019[37]. - China's economy grew by 5.2% in 2023, surpassing the official target of around 5%, but is expected to slow down to 4.6% in 2024 and 4.0% in 2025 due to ongoing challenges in the real estate sector[40]. Corporate Governance - The board believes that the group will have sufficient working capital to meet its financial obligations due within the next twelve months, based on received shareholder loans and proposed equity financing[124]. - The company has committed to maintaining high standards of corporate governance, adhering to the principles and code provisions of the Corporate Governance Code[87]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced composition with diverse skills and experience[88]. - The company has established procedures for directors to seek independent professional advice at the company's expense when fulfilling their duties[96]. - The company has adopted a new share option scheme, replacing the old scheme that was terminated in June 2022[79]. Risk Management - The group is committed to maintaining a robust risk management and internal control system to mitigate significant risks and achieve its business objectives[125]. - The company has adopted a three-tier risk management approach to identify, assess, and manage various types of risks[127]. - An independent review of the company's risk management and internal control systems was conducted, with no significant weaknesses or deficiencies found[128]. - The board believes that the risk management and internal control systems are effective and adequate during the reporting period[128]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report outlines the company's commitment to sustainable development and its management policies[141]. - The ESG report aims to reflect the group's commitment to corporate social responsibility and environmental protection[156]. - The group conducted a materiality assessment to identify significant sustainability factors impacting business operations, ensuring the ESG report covers key issues[157]. - The company achieved a 71% reduction in greenhouse gas emissions compared to 2021[165]. - The company has implemented measures to promote responsible energy consumption among employees[162]. Employee Management - The total number of employees as of December 31, 2023, is 22, a decrease from 34 in 2022, indicating a reduction of 35.29%[198]. - The overall employee turnover rate for 2023 is 59.09%, significantly higher than the previous year's rates, particularly for female employees at 59.09% compared to 13.04% in 2022[199]. - The company maintains a strict compliance with labor laws, with no known violations reported during the reporting period[199]. - The company offers various employee benefits, including annual leave, sick leave, and retirement plans, to support employee well-being[196].

Financial Performance - The company reported revenue of approximately HKD 74,031,000 for the year ended December 31, 2023, a decrease of 61.6% compared to HKD 192,741,000 for the year ended December 31, 2022[3]. - The net loss for the reporting period increased to approximately HKD 74,915,000 from HKD 58,178,000 in the previous year[6]. - The gross loss for the year was HKD 10,317,000, compared to a gross profit of HKD 4,885,000 in the previous year[6]. - Revenue from external customers for the year ended December 31, 2023, was HKD 74,031,000, a decrease from HKD 192,741,000 in 2022, representing a decline of approximately 61.5%[23]. - Major customer A contributed HKD 67,500,000 to total revenue in 2023, down from HKD 134,534,000 in 2022, indicating a reduction of about 50%[24]. - The company reported a loss of approximately HKD 74,915,000 for the year ended December 31, 2023, compared to a loss of HKD 58,178,000 in 2022, indicating an increase in losses of about 28.8%[30]. - The cost of inventory recognized as expenses decreased significantly to HKD 71,660,000 in 2023 from HKD 176,668,000 in 2022, representing a reduction of approximately 59.5%[6]. - The group recorded a gross loss of approximately HKD 10.3 million and an inventory impairment of about HKD 12.9 million during the reporting period[52]. - The net loss for the group during the reporting period was approximately HKD 74.9 million, with current liabilities net amounting to about HKD 23.1 million[56]. Liquidity and Financial Position - The company’s current liabilities exceeded current assets by approximately HKD 23,112,000 as of December 31, 2023[13]. - The company recorded a cash balance of HKD 7,182,000 as of December 31, 2023, compared to HKD 6,449,000 in the previous year[13]. - The total liabilities of the company amounted to approximately HKD 175,849,000 as of December 31, 2023[13]. - The net current liabilities amounted to approximately HKD 23,112,000, indicating significant uncertainty regarding the company's ability to continue as a going concern[49]. - The company has plans and measures in place to alleviate liquidity pressure and improve financial performance, but these are subject to multiple uncertainties[49]. - The current ratio as of December 31, 2023, was 0.4, down from 1.3 in 2022, indicating a decline in liquidity[66]. - The group believes it can meet its short-term obligations with the support of shareholder loans and proposed equity financing[57]. Financing and Shareholder Support - Major shareholder Mr. Li provided approximately HKD 5,879,000 in shareholder loans for the year ended December 31, 2023, with an additional HKD 1,943,000 loaned post-reporting period for operational funding[17]. - The company is actively seeking alternative financing through capital markets, including potential share placements[17]. - The company plans to continue seeking additional financing from Mr. Li and other sources as necessary to meet operational cash flow requirements[18]. - The maturity date of the shareholder loans has been extended by an additional two years to March 30, 2026[53]. - Loans from a major shareholder amounted to approximately HKD 28,812,000 as of December 31, 2023, up from HKD 25,863,000 in 2022[66]. Auditor's Opinion and Going Concern - The independent auditor expressed an inability to issue an opinion on the consolidated financial statements due to uncertainties related to going concern[48]. - The auditor expressed a disclaimer of opinion on the consolidated financial statements due to significant uncertainties regarding the group's ability to continue as a going concern[56]. Market Conditions and Economic Outlook - The operating loss was primarily due to a decrease in revenue caused by rapid industry development and a weak global economic environment, leading to order losses[3]. - The International Monetary Fund projects global economic growth of 3.1% in 2024 and 3.2% in 2025, which is below the historical average of 3.8%[76]. - Global inflation is expected to decrease to 5.8% in 2024 and 4.4% in 2025, reflecting a faster-than-expected decline in inflation rates across most regions[76]. - China's economy grew by 5.2% in 2023, surpassing the official target of around 5% and outperforming the 3.0% growth in 2022[77]. - The economic growth rate is expected to slow to 4.6% in 2024 and further to 4.0% in 2025 due to ongoing weakness in the real estate sector and low external demand[77]. Business Strategy and Future Prospects - The company is actively seeking and exploring business opportunities in Vietnam to improve its prospects amid high uncertainty in the electronic products sector[77]. - The company has not proposed any new product launches or market expansions during the reporting period[29]. - There were no significant mergers or acquisitions reported in the current financial year[29]. - The group is exploring equity financing options to improve its financial situation and support future development, with discussions ongoing with potential investors[60].

Financial Performance - The company reported revenue of approximately HKD 56,200,000 for the six months ended June 30, 2023, a decrease of about 54.8% compared to HKD 124,300,000 for the same period in 2022[4] - The loss for the reporting period increased to approximately HKD 34,800,000 from about HKD 25,400,000 in the previous period, primarily due to increased operational losses in the electronic products business[4] - Gross profit decreased significantly to HKD 146,000 from HKD 8,541,000 in the prior period, reflecting challenges in meeting customer specifications and additional compensation costs[5] - The total comprehensive loss for the six months ended June 30, 2023, was HKD 34,496,000, compared to a total comprehensive loss of HKD 26,064,000 for the same period in 2022, reflecting an increase of 32.5%[59] - For the six months ended June 30, 2023, the company reported a loss of approximately HKD 34,785,000, compared to a loss of HKD 25,357,000 for the same period in 2022[84] Liquidity and Financial Position - As of June 30, 2023, the company had a net current liability of approximately HKD 13,400,000 and total liabilities of about HKD 140,800,000, with cash and bank balances of approximately HKD 5,500,000[12] - The company's current ratio decreased to 0.8 times as of June 30, 2023, down from 1.3 times as of December 31, 2022[21] - The company’s current ratio, excluding the current portion of shareholder loans, is approximately 1.6, indicating sufficient current assets to cover short-term liabilities[14] - The company believes it will have sufficient working capital to meet its financial obligations over the next twelve months, contingent on the timely receipt of shareholder loans and successful equity financing[68] - The company's liquidity position is considered low, with a current ratio of approximately 1.6 times when excluding shareholder loans from current liabilities[65] Shareholder Loans and Financing - The company received a total of HKD 20,000,000 in unsecured and interest-free loans from a major shareholder, with HKD 8,600,000 already received and HKD 11,400,000 remaining[11] - The company is seeking to extend the repayment schedule for the remaining shareholder loans, with expected receipts of HKD 5,400,000 by September 2023 and HKD 6,000,000 by March 2024[11] - The company has outstanding convertible bonds amounting to HKD 158,400,000, which can be converted into 158,400,000 shares at a conversion price of HKD 1.00 per share[9] - The company plans to explore equity financing options to improve its financial condition and support future development, with a target to complete this by December 31, 2023[67] - The company is in ongoing discussions with bondholders regarding the potential conversion of unexercised convertible bonds[17] Economic Environment - Global economic growth is projected to decline from 3.5% in 2022 to 3.0% in both 2023 and 2024, significantly below the historical average of 3.8%[31] - China's economy grew by 5.5% year-on-year in the first half of 2023, but the second quarter saw only a 0.8% quarter-on-quarter growth, below market expectations[33] - The youth unemployment rate in China reached a record high of 21.3% in June 2023, indicating significant economic challenges[33] - The International Monetary Fund forecasts that global trade growth will decrease from 5.2% in 2022 to 2.0% in 2023, before rising to 3.7% in 2024[31] - The company anticipates a very challenging and urgent environment in the coming years due to lost customer orders and global inflation risks[33] Operational Challenges - The company has faced order losses from major consumer goods manufacturers due to its products not keeping pace with industry developments[33] - The company is responding to changing customer demands by adopting more cautious measures[33] - The company recorded employee costs totaling approximately HKD 8,000,000 during the reporting period, compared to HKD 8,700,000 for the same period in 2022[30] - The company has not made any significant investments or acquisitions during the reporting period[24][25] - The company continues to seek alternative funding sources to improve its cash and financial position amid economic uncertainties[20] Related Party Transactions - As of June 30, 2023, the company reported related party payables of 12,235 thousand HKD for directors' remuneration, an increase from 10,744 thousand HKD as of December 31, 2022[105] - The company has a loan payable to a major shareholder amounting to 30,763 thousand HKD as of June 30, 2023, compared to 27,329 thousand HKD at the end of 2022[105] - Total short-term benefits for related parties were reported at 2,265 thousand HKD for the six months ended June 30, 2023, slightly up from 2,220 thousand HKD in the same period of 2022[109] Legal and Compliance - The company has contingent liabilities related to a legal case involving Classic Line International Limited, with a potential claim amounting to 13,500,000 USD[110] - The company believes it has valid grounds to oppose any judgments related to the aforementioned case, thus no provisions have been made in the financial statements[112] - The company applied new Hong Kong Financial Reporting Standards during the reporting period, but it did not have a significant impact on the financial performance or disclosures[71] Capital Structure - The company’s capital structure underwent significant changes due to the share consolidation and split, impacting the number of shares and their par value[104] - The total issued and paid-up ordinary shares amounted to 84,017 thousand shares, with a total capital of 8,402 thousand HKD[101] - The company underwent a share consolidation on November 9, 2022, merging every ten shares with a par value of 0.20 HKD into one share with a par value of 2.00 HKD[103] - Following the consolidation, a share split was executed, resulting in twenty new shares with a par value of 0.10 HKD for each previously issued consolidated share[104]

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，概不對因本公告全部或任何部份內 容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 RUIXIN INTERNATIONAL HOLDINGS LIMITED 瑞 鑫 國 際 集 團 有 限 公司 （於百慕達註冊成立之有限公司） 724 （股份代號： ） 截至二零二三年六月三十日止六個月之 中期業績 瑞鑫國際集團有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司及其 附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月之未經審核綜合中期業 績，連同相關期間之比較數字及經挑選之解釋附註載列如下。 業績概覽 56,200,000 截至二零二三年六月三十日止六個月（「呈報期間」），本集團呈報收入約 港 124,300,000 元，較截至二零二二年六月三十日止六個月（「相關期間」）之約 港元減少約 54.8% 。 ...

Financial Performance - Revenue for the year ended December 31, 2022, was approximately HKD 192.7 million, a decrease of 36.5% compared to HKD 303.5 million for the year ended December 31, 2021[6]. - The net loss for the reporting period increased to approximately HKD 58.2 million from HKD 54.2 million in the previous period, primarily due to increased operational losses and reduced net gains from the sale of properties, plants, and equipment[6]. - Gross profit margin decreased from approximately 4.4% in the previous period to about 2.5% in the reporting period, mainly due to inventory impairment[11]. - The company recorded a loss of approximately HKD 41 million before accounting for non-cash items, compared to a loss of about HKD 36.3 million in the previous period[7]. - The company experienced a significant reduction in revenue due to major electronic consumer manufacturers halting purchase orders amid rising inventory levels[11]. - The company’s operational losses were exacerbated by its products failing to meet specific customer requirements due to technological advancements[6]. - The company’s inventory write-down provisions increased, contributing to reduced revenue and gross profit[6]. - The company reported a loss of approximately HKD 58.2 million during the reporting period, with a net liability of about HKD 106.6 million as of December 31, 2022[22]. Liquidity and Financial Position - The company's cash and bank balance was approximately HKD 6.4 million, indicating a low liquidity level[25]. - The net current assets were approximately HKD 15.6 million, with a current ratio of about 1.3 times, sufficient to cover short-term liabilities[24]. - The company has not incurred any bank borrowings as of the reporting date, with unexercised convertible bonds and shareholder loans accounting for about 86.6% of total liabilities[24]. - The group recorded a net debt of approximately HKD 25,863,000 from a major shareholder, an increase from HKD 20,646,000 in 2021[34]. - The group has no outstanding bank borrowings as of December 31, 2022[34]. - The group has no capital expenditure commitments as of December 31, 2022[35]. - The company received a total of approximately HKD 6.7 million in shareholder loans during the reporting period, with an additional HKD 3.1 million received post-reporting[25]. - The company plans to explore equity financing options to improve its financial situation, with a goal to complete this by December 31, 2023, depending on feasibility and market conditions[26]. Corporate Governance - The company has established five board committees: Audit Committee, Remuneration Committee, Nomination Committee, Investment Committee, and Environmental, Social and Governance Committee[99]. - The auditor, Shinewing (HK) CPA Limited, is eligible and willing to be reappointed at the 2023 annual general meeting[96]. - The board of directors consists of three executive directors and three independent non-executive directors, ensuring a balanced composition with relevant skills and experience[99]. - The company has complied with the Corporate Governance Code, except for the separation of roles between the Chairman and the CEO[98]. - The company has arranged appropriate insurance coverage for legal actions against directors[110]. - The board has adopted a policy for regular updates on governance and compliance matters for all directors[109]. - The company has established a governance framework to ensure compliance with relevant laws and regulations, and to monitor the effectiveness of its governance policies[134]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report highlights the company's commitment to sustainability and transparency in its operations, covering activities and challenges during the reporting period[157]. - The ESG report emphasizes the importance of stakeholder engagement and materiality assessments to identify significant environmental, social, and governance issues[160]. - The company established an ESG committee to oversee governance and ensure compliance with relevant laws and regulations, enhancing its overall ESG performance[163]. - The company aims to integrate sustainability into its business operations and fulfill its corporate responsibility commitments[163]. - The company is committed to reducing its operational impact on the environment by setting specific goals and indicators related to sustainability[163]. - The company has implemented energy-saving measures, including the use of energy-efficient appliances and LED lighting systems, to improve energy efficiency[187]. - The company has prioritized local suppliers and those certified with ISO 14001 for environmental management in its procurement processes[193]. Challenges and Market Conditions - The company anticipates significant challenges in the coming years due to rapid technological advancements and high inflation, which are squeezing profit margins[46]. - The ongoing real estate market crisis and uncertainties surrounding the evolution of COVID-19 pose major economic challenges for China[46]. - The International Monetary Fund forecasts global economic growth to slow from 3.4% in 2022 to 2.9% in 2023[44]. - Global inflation is expected to decrease from 8.8% in 2022 to 6.6% in 2023, but remain above pre-pandemic levels of around 3.5%[44]. Shareholder Information - The company did not recommend the distribution of a final dividend for the reporting period, consistent with the previous year[60]. - The company has a share premium account of approximately HKD 2,374,265,000 available for distribution in the form of scrip dividends[66]. - As of December 31, 2022, the company had no distributable reserves, similar to the previous year[66]. - The total principal amount of the convertible bonds issued by the company is HKD 158,400,000, held by Mr. Li, with the conversion price adjusted to HKD 1.00 per share[91]. - Mr. Li holds approximately 27.72% of the company's issued share capital, making him a major shareholder[94]. Risk Management - The board has confirmed the effectiveness and adequacy of the risk management and internal control systems during the reporting period[141]. - The company has implemented mitigation measures to manage significant risks and has not identified any major control weaknesses or deficiencies[143]. - The company recognizes the importance of identifying and mitigating significant climate-related issues, monitoring potential impacts on its business and operations[196]. - The company has incorporated climate-related risks into its existing risk management system, including both physical and transition risks[196].

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，概不對因本公告全部或任何部份內 容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 RUIXIN INTERNATIONAL HOLDINGS LIMITED 瑞 鑫 國 際 集 團 有 限 公司 （於百慕達註冊成立之有限公司） 724 （股份代號： ） 截至二零二二年十二月三十一日止年度 全年業績 瑞鑫國際集團有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本公司及其附 屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度之經審核綜合財務業績。 業績概覽 截至二零二二年十二月三十一日止年度（「呈報期間」），本集團呈報收入約為 192,700,000 303,500,000 港元，較截至二零二一年十二月三十一日止年度（「相關期間」）約 36.5% 港元減少 。 54,200,000 58,200,000 於呈報期間，虧損由相關期間約 港元增加至約 港元。於呈報期間， ...

Financial Performance - The group's revenue for the six months ended June 30, 2022, was approximately HKD 124.3 million, a decrease of about 25.5% compared to approximately HKD 166.9 million for the same period in 2021[4] - The operating loss for the reporting period increased to approximately HKD 25.4 million from approximately HKD 23.8 million in the corresponding period, primarily due to increased operational losses in the electronic products business[4] - The electronic products business revenue decreased by approximately 25.5% to about HKD 124.3 million, attributed to reduced order volumes amid rising global inflation concerns and inventory issues among major consumer goods manufacturers[9] - The company reported a loss of approximately HKD 25.4 million during the reporting period[23] - The company reported a loss attributable to owners of HKD 25,357,000, compared to a loss of HKD 23,769,000 in the previous year, representing an increase in loss of 6.6%[72] - The group incurred a loss of approximately HKD 25,357,000 during the reporting period[84] Financial Position - As of June 30, 2022, the net current liabilities were approximately HKD 109.8 million, and the net liabilities were about HKD 128.7 million[23] - The total liabilities exceeded total assets by HKD (128,666,000), compared to HKD (102,602,000) in the previous year, indicating increased financial strain[76] - The company’s current ratio was reported at 3.4 times, indicating that its current assets are sufficient to cover its short-term liabilities[59] - The unexercised principal amount of convertible bonds was HKD 158.4 million, convertible into 720 million shares at a conversion price of HKD 0.22 per share[10] - The outstanding amount of the 2021 Hong Kong shareholder loan is approximately HKD 18.1 million, with a revised disbursement schedule for the remaining amounts[20] - The company’s total receivables as of June 30, 2022, were HKD 27,020,000, a significant decrease from HKD 68,828,000 as of December 31, 2021[107] Cash Flow and Liquidity - The bank balance and cash amounted to approximately HKD 8.7 million, slightly down from about HKD 9.2 million as of December 31, 2021[26] - The company’s cash and bank balances were approximately HKD 8,724,000, a decrease of about HKD 524,000 from approximately HKD 9,248,000 as of December 31, 2021[87] - The net cash used in operating activities was HKD (1,881,000), an improvement from HKD (6,266,000) in the prior year[80] - The company’s financing activities generated a net cash inflow of HKD 2,515,000, down from HKD 9,276,000 in the previous year[80] - The company believes it will have sufficient working capital to meet its financial obligations due within the next twelve months, based on received shareholder loans and proposed equity financing[64] Shareholder and Capital Management - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the previous period[8] - The company proposed a capital reorganization, including a share consolidation and a capital reduction, expected to take effect on November 9, 2022, subject to certain conditions[12] - The proposed amendments to the terms of the convertible bonds include extending the maturity date to January 31, 2025, and adjusting the conversion price to HKD 1.00 per new share[15] - The company is exploring equity financing options to improve its financial condition and support future development[27] - The company is in discussions with convertible bondholders regarding a fourth amendment to the terms of the convertible bonds, which are set to mature on January 31, 2022[116] Operational Challenges - The company emphasizes the uncertainty surrounding its ability to raise funds due to the ongoing impact of the COVID-19 pandemic[30] - The global economic outlook has significantly deteriorated, with the IMF projecting global growth to decline from 6.1% in 2021 to 3.6% in both 2022 and 2023[43] - The group’s electronic products business is facing difficulties due to global inflation risks and chip shortages, prompting a more cautious approach to the market[46] - The ongoing COVID-19 pandemic has impacted the disbursement of shareholder loans, creating uncertainties regarding liquidity and ongoing operations[89] Employee and Operational Costs - The total employee costs during the reporting period were approximately HKD 8,700,000, a decrease from HKD 13,200,000 for the same period last year[41] - Short-term benefits for the six months ended June 30, 2022, were HKD 2,220,000, a decrease of 50.3% compared to HKD 4,465,000 for the same period in 2021[127] Legal and Compliance Issues - The company is involved in a legal case with a potential liability of USD 13,500,000 related to a subsidiary, but no provision has been made in the financial statements[129]

Financial Performance - The company reported revenue of approximately HKD 124.3 million for the six months ended June 30, 2022, a decrease of about 25.5% compared to HKD 166.9 million for the same period in 2021[3]. - The loss for the reporting period increased to approximately HKD 25.4 million from about HKD 23.8 million in the corresponding period, primarily due to increased operational losses in the electronic products business[3]. - The gross profit for the six months ended June 30, 2022, was HKD 8.5 million, down from HKD 11.2 million in the previous year[6]. - The company recorded a loss of approximately HKD 15.7 million excluding the estimated interest expense on convertible bonds, compared to a loss of HKD 15.2 million in the prior period[5]. - Basic loss per share for the six months ending June 30, 2022, was approximately HKD 0.030 (25,357,000 HKD loss) compared to HKD 0.028 (23,769,000 HKD loss) for the same period in 2021[29]. - The group recorded a loss for the period, which included a provision for inventory write-down of HKD 4,121,000[27]. Dividends and Shareholder Loans - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2022[7]. - No dividends were declared or proposed for the interim period ending June 30, 2022, consistent with the same period in 2021[28]. - The total amount of shareholder loans received during the reporting period was approximately HKD 3,400,000, with an additional HKD 1,600,000 received after the reporting period[19]. - The company has received a total of HKD 20,000,000 from a shareholder loan, with the maturity extended to October 2023[59]. - The company has outstanding loans from shareholders amounting to approximately HKD 18,100,000, with a revised disbursement schedule[59]. - The company has received HKD 1,400,000 from a shareholder loan in Vietnam, with remaining undisbursed amounts of approximately HKD 300,000[61]. Current Financial Position - As of June 30, 2022, the company had a net current liability of approximately HKD 109.8 million and total liabilities of about HKD 128.7 million[16]. - The company’s cash and bank balances were approximately HKD 8.7 million as of June 30, 2022[16]. - The company’s current ratio was 3.4 times, indicating sufficient current assets to cover its liabilities due within one year[16]. - As of June 30, 2022, the group's net current assets were approximately HKD 60,400,000, with a current ratio of 3.4, indicating sufficient current assets to cover short-term liabilities[63]. - The group's bank balance and cash were approximately HKD 8,700,000 as of June 30, 2022, a decrease of about HKD 500,000 from approximately HKD 9,200,000 on December 31, 2021[65]. - As of June 30, 2022, the group had no bank borrowings, and the loans from a major shareholder amounted to approximately HKD 24,020,000, an increase from approximately HKD 20,646,000 on December 31, 2021[73]. Convertible Bonds and Capital Restructuring - The company has extended the maturity date of the convertible bonds to January 31, 2025[16]. - The total principal amount of unexercised convertible bonds was HKD 158,400,000 as of June 30, 2022[41]. - The proposed adjustment of the conversion price for the unexercised convertible bonds is set to HKD 1.00 per share, with the maturity date extended to January 31, 2025[43]. - The estimated interest expense for convertible bonds was HKD 9,687,000 for the six months ended June 30, 2022, compared to HKD 8,584,000 for the same period in 2021[24]. - The company plans to implement a capital reorganization, including a share consolidation where every 10 shares of HKD 0.20 will be consolidated into 1 share of HKD 2.00[52]. - The company has received an irrevocable commitment from the bondholders not to exercise any rights under the convertible bonds from February 1, 2022, to January 31, 2023[43]. - The company is currently discussing modifications to the terms and conditions of the unexercised convertible bonds with the bondholders[51]. - The proposed adjustments to the convertible bonds are subject to independent valuation and audit by the company's auditors[44]. Operational Challenges and Market Conditions - The operational losses in the electronic products business were attributed to reduced order volumes due to inflation concerns and inventory issues among major consumer goods manufacturers[3]. - The group plans to adopt a more cautious approach to the global economy and the electronics market to ensure competitiveness amid uncertainties[83]. - The International Monetary Fund (IMF) forecasts global growth to decline from an estimated 6.1% in 2021 to 3.6% in both 2022 and 2023, with inflation rates projected at 5.7% for developed economies and 8.7% for emerging markets in 2022[81]. - China's economy grew by only 0.4% year-on-year in Q2 2022, significantly lower than the 6.8% growth in Q1, resulting in a half-year growth rate of 2.5%[83]. - The official manufacturing Purchasing Managers' Index (PMI) in China fell from 50.2 in June 2022 to 49.0 in July 2022, indicating a contraction in the manufacturing sector[83]. Compliance and Reporting - The group has not reported segment financial information due to the integration of resources and the shift in its operational model to trading electronic and electrical components[23]. - The company has not applied any new or revised Hong Kong Financial Reporting Standards that are not yet effective during the reporting period[22]. - The audit committee has reviewed the accounting principles and practices adopted by the group, including the unaudited interim financial statements for the reporting period[90]. - The interim report for the six months ending June 30, 2022, will be sent to shareholders and published on the company's website in due course[91]. - The company's shares were suspended from trading on September 1, 2022, until the earnings announcement is published[92]. - The company has applied for the resumption of trading on September 30, 2022, at 9:00 AM[92].

Financial Performance - The company reported revenue of approximately HKD 303,500,000 for the year ended December 31, 2021, a decrease of 15.3% compared to HKD 358,500,000 for the year ended December 31, 2020[6]. - The net loss for the reporting period was approximately HKD 54,200,000, a slight improvement from a net loss of approximately HKD 56,400,000 in the previous year[6]. - The gross profit for the year was HKD 13,321,000, down from HKD 21,888,000 in the previous year[8]. - The group incurred a loss of approximately HKD 54,200,000 during the reporting period[16]. - As of December 31, 2021, the net current liabilities were approximately HKD 87,400,000, and the net liabilities were approximately HKD 102,600,000[16]. - The current ratio was approximately 2.9 times, indicating sufficient current assets to cover current liabilities[19]. - The group’s current liabilities (excluding convertible bonds and shareholder loans) decreased significantly by approximately 68.9% year-on-year[19]. - The group has no bank borrowings as of December 31, 2021, with convertible bonds accounting for approximately 72.7% of total liabilities[19]. - The company reported a loss of approximately HKD 54,200,000 during the reporting period[124]. - As of December 31, 2021, the company's net current liabilities were approximately HKD 87,400,000, and total liabilities were about HKD 102,600,000[124]. - The company had bank deposits and cash amounting to approximately HKD 9,200,000 as of the reporting date[124]. Operational Changes - The electronic products business adjusted its operational model from manufacturing and trading to trading electronic components, reducing supply chain risks amid ongoing COVID-19 challenges[6]. - Revenue from the electronic products business decreased by approximately 32.1% in the second half of 2021 due to a shortage of wafers, impacting supply to customers[11]. - The company has transitioned its operational model from manufacturing to trading electronic and electrical components, focusing on its business operations in Hong Kong and Vietnam[143]. Shareholder Loans and Financing - The company received a total of HKD 20,000,000 in unsecured and interest-free loans from a major shareholder, with the repayment date extended to October 2023[14]. - The remaining amount of the 2021 Hong Kong shareholder loan is approximately HKD 19,700,000, with a revised disbursement schedule for the remaining funds[14]. - The group received approximately HKD 10,800,000 and HKD 900,000 from the 2019 and 2021 shareholder loans, respectively, during the reporting period[20]. - The company has not yet exercised convertible bonds amounting to HKD 158,400,000, which are due on January 31, 2022[12]. - The company is in discussions with a major shareholder regarding the fourth amendment of the convertible bond terms, which have been extended three times previously[125]. Employee and Workforce Changes - The total employee cost for the reporting period was approximately HKD 24,000,000, down from HKD 28,400,000 in 2020[36]. - The group had 35 full-time employees as of December 31, 2021, a significant decrease from 468 in 2020[36]. - The company has a total of 35 employees as of December 31, 2021, down from 39 in 2020, indicating a decrease of approximately 10.26% in total headcount[195]. - The employee turnover rate for males increased significantly to 58.33% in 2021 from 37.80% in 2020, while the turnover rate for females rose to 40.00% from 11.80%[197]. - The company has a total of 21 employees in Hong Kong, down from 32 in 2020, reflecting a decrease of approximately 34.38% in that region[195]. Economic Outlook - The International Monetary Fund projected global economic growth to slow from 5.9% in 2021 to 4.4% in 2022[39]. - China's GDP growth for 2021 was 8.1%, with a slowdown noted in the fourth quarter at 4.0%[41]. - The economic growth forecast for China in 2022 has been downgraded from 5.6% to 4.8% due to pandemic disruptions and pressures in the real estate sector[43]. - Retail sales in China increased by only 1.7% in December 2021, marking the slowest growth in 14 months, indicating ongoing consumer concerns[43]. - The semiconductor shortage and rising prices in the electronics industry are expected to create supply-demand uncertainties in 2022, making it a challenging year[43]. Corporate Governance - The company has committed to maintaining high standards of corporate governance and has applied the principles of the Corporate Governance Code during the reporting period[89]. - The board consists of three executive directors and two independent non-executive directors, ensuring a balanced composition with diverse skills and experience[92]. - The company has established five board committees, including the Audit Committee and the Nomination Committee, to oversee various aspects of governance[92]. - The independent non-executive directors confirmed their independence as of December 31, 2021, and the company believes their independence has not been affected[99]. - The company has arranged appropriate insurance coverage for legal claims against directors[102]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report emphasizes the company's commitment to sustainability and transparency in its operations[142]. - The ESG committee is responsible for monitoring and evaluating the company's performance in environmental, social, and governance matters, ensuring compliance with relevant laws and regulations[149]. - The company aims to integrate sustainability into its business operations and fulfill its corporate responsibilities by setting specific goals and indicators to minimize environmental impact[149]. - The company is committed to enhancing the transparency of its data disclosures and taking responsibility for its ESG performance[147]. - The company has established a stakeholder engagement process to gather feedback on environmental, social, and governance (ESG) issues, focusing on areas such as anti-corruption and product responsibility[155]. Sustainability Goals - The company aims to reduce total greenhouse gas emissions below the reporting period levels within the next five years[166]. - The company has set a target to reduce total energy consumption below the levels reported during the current period over the next five years[173]. - The company has implemented measures to promote water conservation, including posting water-saving slogans in visible areas[177]. - The company has prioritized the use of energy-efficient appliances and LED lighting systems to enhance energy efficiency[173]. - The company has integrated climate-related risks into its existing risk management system and developed relevant mitigation measures[182].