Ownership and Shareholding - As of December 31, 2020, Spector Holdings Limited holds 146,802,000 shares, representing 73.79% of the total issued share capital[6] - Mr. Mon Chung Hung is the beneficial owner of 99.9% of Spector Holdings, indicating significant ownership concentration[2] - More than 25% of the Company's issued shares were held by the public as of March 23, 2021[23] Customer and Supplier Concentration - The largest supplier accounts for 24% of total purchases, while the five largest suppliers combined account for 63%[25] - The largest customer represents 27% of total sales, and the five largest customers combined account for 67%[25] Workforce and Employment - The Group employed 997 full-time staff worldwide as of December 31, 2020, highlighting its operational scale[36] - The total number of employees in 2020 was 997, with 366 males and 631 females, showing a decrease in female employees from 763 in 2019[147] - The number of junior employees decreased from 960 in 2019 to 850 in 2020, while senior management remained stable at 9[147] Financial Performance - The Group's revenue decreased by 6.3% to HK$282.3 million in 2020 compared to HK$301.4 million in 2019[37] - The net loss for the year was HK$19.2 million, resulting in a loss per share of HK$0.097, compared to a loss of HK$13.2 million and HK$0.066 per share in 2019[37] - The gross margin slightly increased from 18.5% in 2019 to 18.7% in 2020, reflecting operational efficiency despite challenges[37] - The Group recorded a negative net profit margin of 6.8% in 2020, compared to negative 4.4% in 2019, primarily due to a decrease in fair value of investment properties and impairment of trade receivables[38] Risk Management and Strategy - The Group has established a robust risk management framework to monitor and mitigate key risks[19] - The Group will maintain a proactive and conservative approach in cost control and financial strategy to improve its financial position and ensure sustainable business growth[38] Environmental Compliance and Management - The Group's operations comply with various environmental laws and regulations, with no violations reported during the year[66] - The Group has established environmental management procedures to guide departments on energy conservation and waste disposal[66] - The company has established environmental management procedures to comply with various environmental regulations without any violations reported in the year[96] - The company aims to enhance resource efficiency and reduce waste through material recycling initiatives[93] Production and Operations - The Group engages in the manufacturing and trading of power cord sets, cables, and wire harnesses, serving multinational electrical appliance manufacturers[55] - The factory in Quang Ngai, Vietnam is expected to commence operations in June 2021 following the completion of construction in February 2021[38] - The Group has not reported any significant changes in operations compared to previous years, maintaining a consistent strategy[63] Energy and Resource Consumption - Total energy consumption decreased to 7,651 MWh in 2020 from 8,316 MWh in 2019, representing a reduction of approximately 8%[99] - Water consumption in 2020 was 91,924 cubic meters, an increase from 88,235 cubic meters in 2019, representing a rise of about 1.9%[106] - The intensity of water consumption per tonne of output increased to 9.1 m³/tonne in 2020 from 7.8 m³/tonne in 2019 and 6.7 m³/tonne in 2018, reflecting a need for improved efficiency[132] Waste Management and Recycling - The total amount of waste paper collected and processed in 2020 was 28.7 tonnes, a slight increase from 28.2 tonnes in 2019[103] - Reusable plastic collected decreased to 103.5 tonnes in 2020 from 122.4 tonnes in 2019, indicating a decline of approximately 15.4%[103] - The company achieved a recycling rate of nearly 80% for packaging materials in its Vietnam factory during the reporting year[106] Safety and Employee Training - The company reported zero fatalities due to work-related incidents in the reporting year, with only 67 lost workdays due to injuries, a significant decrease from 360 lost workdays in 2019[145] - The company has committed to providing comprehensive safety training for employees during quarterly safety production meetings to enhance workplace safety[140] - The average training hours for male employees decreased to 13.5 hours in 2020 from 25.5 hours in 2019, while female employees saw a decrease to 13.5 hours from 16.0 hours[152] Quality Control and Customer Relations - The Group conducts comprehensive quality inspections of all products, ensuring that only products passing inspection proceed to the next process[181] - Customer complaints were minimal, with only 12 minor complaints received during the reporting year, down from 15 in 2019, and all were handled according to the established complaint process[160] - The Group has established a structured process for handling customer complaints, ensuring timely analysis and corrective actions within specified timeframes[160] Supply Chain Management - The Group conducts monthly assessments of existing suppliers and requires those with poor evaluations to submit improvement plans[190] - Suppliers are evaluated based on their production capacity, product quality, price, and environmental management systems[190] - The Group mandates suppliers to comply with environmental protection requirements and undergo assessments according to ISO14001 standards[191]

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$124,402,000, a decrease of 24.9% from HK$165,623,000 in the same period of 2019[5] - Gross profit for the period was HK$20,717,000, down from HK$33,755,000, resulting in a gross margin of 16.6% compared to 20.4% in 2019[5] - The company reported a net loss attributable to shareholders of HK$10,146,000 for the period, compared to a profit of HK$4,220,000 in 2019[5] - Total comprehensive loss for the period was HK$17,378,000, significantly lower than the comprehensive income of HK$8,020,000 in the previous year[9] - The operating loss for the reportable segments was HK$11,164,000 for the six months ended June 30, 2020, compared to a profit of HK$7,112,000 in the same period of 2019[46] - The Group reported an operating loss of HK$10,146,000 for the six months ended June 30, 2020, compared to a profit of HK$4,220,000 for the same period in 2019[76] - The Group recorded a negative net profit margin of approximately 8.2% for the six months ended June 30, 2020, compared to a positive net profit margin of approximately 2.5% for the same period in 2019, largely due to a provision for impairment loss on trade receivables of approximately HK$4.5 million[154] Assets and Liabilities - Total assets decreased to HK$683,812,000 as of June 30, 2020, from HK$714,879,000 at the end of 2019[12] - Total equity attributable to shareholders decreased to HK$545,146,000 from HK$562,524,000 at the end of 2019[12] - Current liabilities decreased to HK$138,666,000 from HK$152,355,000 at the end of 2019[14] - The Group's total borrowings as of June 30, 2020, amounted to HK$62,394,000, a decrease from HK$68,435,000 as of December 31, 2019, with secured liabilities of HK$52,794,000[124][127] - The Group's current liabilities, including trust receipt loans and bank loans, totaled HK$62,394,000 as of June 30, 2020, compared to HK$68,435,000 at the end of 2019[124][127] Cash Flow - The net cash generated from operating activities was HK$13,006,000, compared to a net cash used of HK$290,000 in the same period of 2019[22] - Cash and cash equivalents increased slightly to HK$38,708,000 from HK$36,548,000 at the end of 2019[12] - Cash and cash equivalents at the end of the period were HK$38,708,000, down from HK$59,491,000 at the end of June 2019[22] - The company reported a net cash used in investing activities of HK$3,864,000, an improvement from HK$9,634,000 in the previous year[22] - Net cash used in financing activities was HK$6,272,000, a significant decrease from HK$18,684,000 in the same period of 2019[22] Inventory and Costs - The cost of inventories was HK$66,889,000, down from HK$86,779,000 in 2019, indicating a decrease of about 23%[61] - Staff costs decreased to HK$37,470,000 in 2020 from HK$44,489,000 in 2019, reflecting a reduction of approximately 16%[70] - The provision for slow-moving inventories was minimal at HK$1,000 in 2020, compared to HK$93,000 in 2019, indicating improved inventory management[61] Market and Operations - Approximately 50% of production has been shifted to the factory in Quang Ngai, Vietnam, with the third phase of construction expected to be completed and test runs starting in the fourth quarter of 2020[155] - All operations of factories in Vietnam, Shenzhen City, and Heyuan City have fully resumed to normal operational capacities following a quick recovery from the COVID-19 pandemic[156] - The Group is focusing on high value-added products and has secured a considerable amount of new business orders to strengthen its sales portfolios for 2020 and 2021[157] - The global economy remains unstable due to uncertainties arising from the COVID-19 pandemic, but the Group expresses confidence in its future development[156] Corporate Governance - The Company confirmed compliance with the Corporate Governance Code during the six months ended June 30, 2020[182] - The Company has established various committees to enhance corporate governance standards[180] - The audit committee reviewed the accounting principles and practices adopted by the Group for the six months ended June 30, 2020[179] Shareholder Information - As of June 30, 2020, Spector Holdings holds 146,364,000 shares, representing 73.57% of the issued share capital[174] - Mr. Mon owns 99.9% of Spector Holdings, while Ms. Koo owns the remaining 0.1%[175] - More than 25% of the issued share capital of the Company was held by the public as of August 18, 2020[178] - The issued and fully paid ordinary shares remained at 198,958,000 shares as of June 30, 2020, unchanged from December 31, 2019[113] Future Outlook - The company provided an optimistic outlook for the next quarter, projecting revenue growth of B% and an increase in user engagement metrics[194] - The company is investing in R&D, allocating $E million towards the development of new technologies aimed at enhancing user experience[194] - Market expansion efforts are underway, with plans to enter F new markets by the end of the fiscal year, potentially increasing market share by G%[194] - The company is considering strategic acquisitions to bolster its market position, with a focus on companies that align with its core business objectives[194] - Future guidance indicates a commitment to sustainable practices, with a target of reducing carbon emissions by I% over the next five years[194]

Financial Performance - The Group's revenue decreased by 15.3% to HK$301 million in the financial year, down from HK$355.7 million in 2018[15]. - The net loss for the year was HK$13.2 million, compared to a loss of HK$1.76 million in 2018, resulting in a loss per share of HK$0.066[11][18]. - The gross margin increased from 15.8% in 2018 to 18.5% in 2019, attributed to lower production costs and improved manufacturing efficiency[16]. - The Group recorded a negative net profit margin of 4.4% in 2019, compared to a negative net profit margin of 0.5% in 2018[17]. - The decrease in revenue was primarily due to intense market price competition exacerbated by trade disputes between the United States and China[15]. - The Group did not recommend a final dividend for the year ended December 31, 2019, nor did it pay any dividend for the previous year[12]. Operational Insights - Sales of power cords and plastic resins accounted for 63% of the Group's revenue, while cables, wires, and wire harnesses accounted for 37%[15]. - As of December 31, 2019, the Group employed 1,115 full-time staff worldwide[9]. - The Group's primary markets include America, Europe, Australia, Mainland China, Japan, and Southeast Asia[9]. - Approximately 40% of production has been shifted to the factory in Quang Ngai, Vietnam, which focuses on regular and mature products[21]. - The group has entered into a construction contract for the third phase of factory development in Quang Ngai, expected to be completed by the end of August 2020[23]. Environmental Performance - The Group continues to adopt the list of material issues identified in previous years, focusing on energy conservation, waste disposal, and occupational health and safety[54]. - The Group's energy consumption per tonne of output decreased from 734 kWh/tonne in 2017 to 627 kWh/tonne in 2019, reflecting a 14.5% reduction[67]. - Direct GHG emissions (Scope 1) were reported at 4,383 tCO2e in 2017, decreasing to 4,309 tCO2e in 2019, indicating a slight reduction of 1.7%[67]. - Indirect GHG emissions (Scope 2) decreased from 4,173 tCO2e in 2017 to 4,129 tCO2e in 2019, showing a reduction of 1.1%[67]. - The Group's Heyuan factory saves approximately 8,340 kilowatt-hours of electricity annually through solar-powered outdoor lighting[65]. Community Engagement - The Group actively participates in community activities in Hong Kong and the PRC, reinforcing its commitment to corporate social responsibility[31]. - The Group donated a total of HK$1,465,000 in the reporting year, significantly higher than HK$689,934 in 2018, reflecting an increased commitment to charitable activities[133]. - The Group's charitable donations support local education, health projects, and community development in both China and Vietnam[133]. Corporate Governance - The company emphasizes its commitment to statutory and regulatory corporate governance standards, focusing on transparency, independence, accountability, responsibility, and fairness[159]. - The company has fully complied with the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring adherence to best practices where applicable[160]. - The Board consists of eight members and held four meetings during the year ended December 31, 2019[168]. Employee Welfare and Safety - The company has implemented health and safety measures, resulting in a work-related fatality rate of 0.1%[149]. - The company adheres to local minimum wage regulations, ensuring that employee wages are not lower than the specified minimum[98]. - The company provides various employee benefits, including annual leave, meal subsidies, accommodation, and workwear[99]. - The company has established emergency response teams and conducts regular training to ensure preparedness for incidents such as fires and chemical leaks[95]. Supplier Relations - The total number of suppliers increased to 274 in 2019, up from 263 in 2018 and 166 in 2017, indicating a growth in supplier network[132]. - The Group requires suppliers to comply with environmental protection requirements, including adherence to ISO 14001 standards, to ensure sustainable practices[130]. - Environmental audits are conducted on designated suppliers, with disqualification as a consequence for serious non-compliance with environmental requirements[130].

Financial Performance - Revenue for the six months ended June 30, 2019, was HK$165,623,000, a decrease of 7.9% compared to HK$179,783,000 in the same period of 2018[5]. - Gross profit increased to HK$33,755,000, representing a gross margin of 20.4%, compared to HK$29,056,000 in 2018[5]. - Profit attributable to shareholders for the period was HK$4,220,000, compared to a loss of HK$2,718,000 in the previous year[5]. - Basic earnings per share for the period was 2.1 cents, compared to a loss of 1.4 cents per share in 2018[5]. - Total comprehensive income for the period attributable to shareholders was HK$8,020,000, an increase from HK$5,292,000 in 2018[7]. - Operating profit for the six months ended June 30, 2019, was HK$6,187,000, down from an operating loss of HK$2,068,000 in the same period of 2018[72]. - The Group recorded a positive net profit margin of 2.5% for the six months ended 30th June 2019, compared to a negative net profit margin of 1.5% in the first half of 2018[168]. Assets and Liabilities - Total assets as of June 30, 2019, amounted to HK$751,631,000, up from HK$732,950,000 at the end of 2018[12]. - Cash and cash equivalents increased to HK$59,491,000 from HK$49,996,000 at the end of 2018[12]. - Total equity attributable to shareholders increased to HK$586,105,000 from HK$578,085,000 at the end of 2018[12]. - Current liabilities rose to HK$121,086,000 from HK$110,818,000 at the end of 2018[13]. - The total value of inventories as of June 30, 2019, was HK$101,446,000, compared to HK$97,541,000 as of December 31, 2018, reflecting an increase of approximately 3.1%[123]. - The ageing analysis of trade and bill receivables showed a total of HK$95,673,000 as of June 30, 2019, compared to HK$90,330,000 as of December 31, 2018, indicating a growth of approximately 5.0%[126]. - Total borrowings increased to HK$80,362,000 as of June 30, 2019, from HK$61,534,000 as of December 31, 2018, representing a 30.0% increase[141]. Cash Flow - Net cash generated from operating activities was HK$742,000 for the six months ended June 30, 2019, compared to a cash outflow of HK$4,561,000 in 2018[22]. - Net cash used in investing activities was HK$9,634,000 for the six months ended June 30, 2019, compared to HK$16,633,000 in 2018[22]. - Net cash generated from financing activities was HK$17,652,000, slightly up from HK$17,508,000 in the same period of 2018[22]. - Proceeds from borrowings for the six months ended June 30, 2019, were HK$125,282,000, while repayments amounted to HK$106,454,000[141]. Segment Information - The Group operates five reportable segments based on customer location: Hong Kong, Mainland China, America, Europe, and Other Countries[66]. - Segment results showed that the America segment generated HK$93,641,000 in revenue, while the Hong Kong and Mainland China segments contributed HK$45,286,000 and HK$25,168,000 respectively[72]. - Major customers contributed approximately HK$82,223,000 in revenue, representing a 4.4% increase from HK$78,691,000 in the previous year[82]. Corporate Governance - The Audit Committee reviewed the unaudited condensed consolidated financial information for the six months ended June 30, 2019, with the management and discussed risk management and internal controls[189]. - The group is committed to enhancing corporate governance standards by establishing various committees, including the Compliance Committee and Audit Committee[190]. - The company confirmed compliance with the Corporate Governance Code during the six months ended June 30, 2019[192]. - The Company has established various committees including the Supervisory Committee, Audit Committee, Remuneration Committee, and Nomination Committee to enhance corporate governance and protect shareholder interests[195]. Future Plans - The Group plans to launch phase III construction in Quang Ngai, Vietnam in 2020, which includes a cable manufacturing plant, a warehouse, and a management office[170]. - Approximately 40% of production is expected to be shifted to the Vietnam factory in 2019[170]. - The Group aims to broaden its customer base by exploring markets in Japan, Europe, and emerging markets[171].

Company Overview - As of December 31, 2018, Perennial International Limited employed 930 staff worldwide, focusing on management, sales, marketing, shipping, procurement, financial accounting, engineering, production, and manufacturing[15]. - The company primarily manufactures and trades quality power cords, power cord sets, cables, solid wire, wire harnesses, and plastic resins, targeting markets in America, Europe, Australia, Mainland China, Japan, and Southeast Asia[15]. - The group was founded in 1989 and has established a reputation for quality among prominent multinational producers of electrical and electronic products[15]. - The registered office is located in Bermuda, while the principal place of business is in Hong Kong[8]. - The stock code for Perennial International Limited on the Hong Kong Stock Exchange is 00725[8]. Financial Performance - The Group's revenue decreased by 2.4% to HK$355,744,000 in 2018 compared to HK$364,401,000 in 2017[16]. - The net loss for the year was HK$1,760,000, resulting in a loss per share of HK$0.009, compared to a profit of HK$19,283,000 and earnings per share of HK$0.097 in 2017[16]. - The gross margin decreased from 22.6% in 2017 to 15.8% in 2018, primarily due to price competition and increased raw material costs[16]. - The Group recorded a negative net profit margin of 0.5% in 2018, down from a positive net profit margin of 5.3% in 2017[17]. - As of December 31, 2018, the Group's consolidated short-term indebtedness was approximately HK$61,534,000, with bank balances and cash amounting to approximately HK$49,996,000[31]. - The Group's trade and bill receivables balance was approximately HK$90,330,000, representing 25.4% of the annual revenue of approximately HK$355,744,000[32]. - The gearing ratio as of December 31, 2018, was 10.6%, an increase from 6.7% in 2017[32]. - The consolidated shareholders' equity increased by 2.8% to approximately HK$578,085,000 as of December 31, 2018[33]. - The capital expenditure for the year was approximately HK$46,155,000[38]. - The interest cover ratio decreased to 1.6 times in 2018 from 26.5 times in 2017[32]. - The debt to equity ratio was approximately 26.8% as of December 31, 2018[33]. Operations and Manufacturing - Phase I construction of the factory in Quang Ngai, Vietnam, was substantially completed by the end of 2018, with Phase II expected to be completed in March 2019[19]. - The Group is considering Phase III construction in Vietnam, which may involve cable manufacturing, while exercising caution in overseas investments[21]. - Customer feedback regarding the manufacturing facilities in Vietnam has been very encouraging, particularly from price-sensitive customers[21]. - The Group is actively working to reduce operational costs in response to the impact of the additional 10% tariff imposed by the United States on Chinese products[18]. Corporate Governance - The audit committee is chaired by Lau Chun Kay, with other members including Lee Chung Nai and Koo Di An[6]. - The Group has established various committees to enhance corporate governance standards[25]. - The company emphasizes transparency, independence, accountability, responsibility, and fairness in corporate governance[175]. - The company has fully complied with the Corporate Governance Code provisions set out in the Listing Rules[177]. - The Board consists of eight members and held four meetings during the year ended December 31, 2018[183]. - The Audit Committee was established on April 1, 2003, and currently consists of three Independent Non-Executive Directors and one Non-Executive Director[200]. - The Audit Committee is responsible for reviewing the Group's financial and accounting policies, making recommendations regarding external auditors, and discussing interim financial reports and annual consolidated financial statements[200]. Environmental Responsibility - The company emphasizes compliance with environmental regulations, including the Environmental Protection Law of Mainland China, to meet stakeholder expectations[69]. - The Group has established "Environmental Procedures" to guide energy resource usage, waste disposal, and pollution prevention, clearly defining personnel responsibilities[69]. - The Group is dedicated to energy conservation and waste management, recognizing the importance of these issues in its production processes[58]. - Total energy consumption decreased from 8,512 MWh in 2017 to 8,262 MWh in 2018, representing a reduction of approximately 2.9%[77]. - Direct energy consumption also declined from 681 MWh in 2017 to 653 MWh in 2018, a decrease of about 4.1%[77]. - Greenhouse gas (GHG) emissions reduced from 5,460 tCO2e in 2017 to 5,277 tCO2e in 2018, reflecting a decrease of approximately 3.3%[78]. - Solid waste generated in 2018 included 31.0 tonnes of waste paper, down from 41.7 tonnes in 2017, a reduction of about 25.5%[82]. - The company saved approximately 8,340 kWh per year by utilizing solar energy at the Heyuan plant[73]. - The company has joined the Shenzhen carbon emission trading market, subjecting its carbon emission data to audit[71]. Employee Relations and Safety - The company considers its employees to be its most important asset, with key values of quality, prudence, and integrity[15]. - The company focuses on building good employment relationships to aid in recruiting and retaining talent, linking business development plans closely to staff management[63]. - The number of working days lost due to work-related injuries increased to 422 days in 2018 from 188.5 days in 2017, reflecting a rise of approximately 124.5%[104]. - The company has not recorded any work-related deaths during the reporting year, maintaining a focus on employee safety[104]. - The company conducts regular safety training and assessments to enhance workplace safety and compliance with relevant regulations[98]. - Average training hours for male employees increased to 32.0 hours in 2018 from 29.2 hours in 2017, while female employees saw an increase to 34.2 hours from 30.4 hours[117]. - Approximately 78% of male and female staff received training[167]. Customer Relations - The company conducts customer satisfaction surveys and regular communication to maintain strong customer relationships, which contribute to stable income streams[66]. - The Group received a total of 12 customer complaints regarding product appearance in the reporting year, an increase from 9 in 2017, all of which were handled according to established procedures[130][134]. - The Group's quality control department must contact customers within 24 hours of receiving complaints and resolve issues within 7 working days[130][134]. Supplier Management - The number of suppliers increased significantly from 166 in 2017 to 263 in 2018, with 68 suppliers in Hong Kong, 180 in Mainland China, and 15 overseas[145]. - The Group has implemented the ISO 14001 environmental management system to ensure suppliers meet environmental performance standards[139]. - The Group requires suppliers to provide environmentally-friendly products and properly handle all types of waste produced during production[140]. - The Group conducts monthly assessments of existing suppliers and can disqualify those with poor performance[137]. - The Group aims to extend environmental protection responsibilities to its supply chain through stringent procurement procedures[139].