Financial Performance - The Group's revenue for 2023 was approximately HK$15.59 billion, a decrease of 19.2% compared to 2022, primarily due to reduced revenue from the smartphone business[4] - Profit attributable to owners of the Company decreased by approximately 17.4% to HK$263 million in 2023[4] - Earnings per share for 2023 were HK$8.31, down from HK$9.77 in 2022[27] - Revenue for 2023 decreased by 19.2% to approximately HK$15.59 billion, down from HK$19.29 billion in 2022, primarily due to a significant decrease in smartphone-related sales in the PRC[30] - Profit attributable to owners of the Company decreased by approximately 17.4% to approximately HK$263 million, compared to approximately HK$318 million in 2022[30] - Basic earnings per share decreased to 8.31 HK cents from 9.77 HK cents in 2022[30] - Gross profit for 2023 was HK$1,322,293, down 11.0% from HK$1,484,972 in the previous year[78] - EBITDA for the year was HK$2,057,669, representing a decrease of 12.6% from HK$2,354,462 in 2022[78] - The overall financial performance indicates a need for strategic adjustments to address declining revenues and profits[70] Revenue Breakdown - External sales of LCD products amounted to HK$13.38 billion, while electronic consumer products generated HK$2.21 billion, totaling HK$15.59 billion in revenue[18] - The Group's LCD business, including touch products, accounted for approximately 86% of total revenue in 2023, compared to 81% in 2022[30] - Other businesses, including compact camera modules and fingerprint identification products, contributed 14% to total revenue in 2023, down from 19% in 2022[30] - Revenue from external customers in China for 2023 was HK$10,133,308, down from HK$13,528,016 in 2022, indicating a decrease of about 25%[112] - Revenue from South Korea was HK$1,147,860 in 2023, down from HK$1,421,249 in 2022, a decline of approximately 19%[112] Profitability Metrics - The gross profit margin increased to approximately 8.5%, which is 0.8% higher than in 2022[4] - Gross profit margin increased to approximately 8.5% in 2023, up from 7.7% in 2022, while net profit margin attributable to owners increased to 1.7% from 1.6%[30] - The operating profit margin for 2023 was 6.5%, down from 7.3% in 2022[81] Cost Management - The management plans to tighten control over costs and expenses to improve product competitiveness[7] - Distribution and selling expenses decreased by approximately 29.9% or approximately HK$137 million to approximately HK$321 million compared to 2022[153] - Administrative expenses decreased by approximately 23.1% or approximately HK$135 million to approximately HK$449 million compared to 2022[153] Future Outlook - The management anticipates steady growth in 2024, supported by a significant increase in sales in the first two months compared to the same period in 2023[7] - The management maintains a cautiously optimistic outlook for 2024, focusing on R&D and cost control to drive growth[137][151] - The company plans to focus on market expansion and new product development in the upcoming year[70] Research and Development - The Group invested approximately HK$658 million in research and development in 2023, compared to HK$796 million in 2022[30] - The Group will continue to focus on display module products and invest in human resources and technology R&D to enhance product design and manufacturing capabilities[7] Corporate Governance - The Board is responsible for formulating and approving the Company's business strategies, objectives, policies, and plans, as well as monitoring their execution[193] - The Board oversees the Company's operating and financial performance and establishes risk control policies to ensure strategic objectives are met[198] - The total number of meetings held by the Board was 4, with all directors attending all meetings[190] - The management team, led by Managing Director Mr. Lam Wai Wah, is responsible for executing strategies and day-to-day operations[194] - The Company aims to improve its corporate governance structure and enhance communication with shareholders[192] - The remuneration committee advises on the compensation policies for directors and senior management, with details provided in the financial statements[200] Asset and Liability Management - Total assets decreased to approximately HK$24.51 billion in 2023 from HK$26.49 billion in 2022[33] - Total liabilities decreased to approximately HK$14.68 billion in 2023 from HK$16.15 billion in 2022[33] - Equity attributable to owners of the Company decreased to approximately HK$9.60 billion in 2023 from HK$9.99 billion in 2022[33] Other Financial Information - Other income for the Year was approximately HK$110 million, a decrease of approximately 53.2% or approximately HK$125 million compared to 2022[153] - The Group recorded net other losses of approximately HK$18 million, an increase from net other gains of approximately HK$78,000 in 2022, primarily due to a net loss on disposal of obsolete machineries increasing to approximately HK$75 million[153] - The reversal of impairment losses under the expected credit loss model was approximately HK$2 million, down from approximately HK$36 million in 2022[153] - For the year ended 31 December 2023, audit fees amounted to HK$4,800,000 and non-audit fees were HK$205,000[191]

Financial Performance - The group reported revenue of HKD 13,382,037 thousand for the year 2023, a decrease from HKD 15,693,468 thousand in 2022, representing a decline of approximately 14.8%[28]. - Total revenue for the fiscal year 2023 was HKD 15,588,143, a decrease of 19.2% compared to HKD 19,287,434 in 2022[32]. - Revenue from electronic consumer products was HKD 15,588,143 thousand in 2023, down from HKD 19,287,434 thousand in 2022, reflecting a decline of approximately 19.5%[28]. - The group recorded a revenue decrease of 19.2% to approximately HKD 15.59 billion for the year, down from HKD 19.29 billion in 2022, primarily due to a significant reduction in sales of smartphone-related products in China[89][96]. - The liquid crystal display business accounted for approximately 86% of the group's revenue in 2023, up from 81% in 2022[121]. Profitability - The basic earnings per share for the year were HKD 8.31, down from HKD 9.77 in the previous year, indicating a decrease of about 15%[25]. - Net profit attributable to shareholders for the fiscal year 2023 was HKD 262,799, a decline of 17.4% from HKD 318,233 in 2022[32]. - The gross profit for the fiscal year 2023 was HKD 1,322,293, down 11.0% from HKD 1,484,972 in 2022[32]. - The pre-tax profit for the year was HKD 249,385, down from HKD 376,565 in 2022, reflecting a decrease of about 33.8%[52]. - The gross profit margin increased to approximately 8.5% for the year, compared to 7.7% in 2022, while the net profit margin rose to 1.7%, up from 1.6% in the previous year[90]. Assets and Liabilities - Total non-current assets decreased from HKD 17,226,793 thousand in 2022 to HKD 15,708,771 thousand in 2023, a decline of approximately 8.8%[5]. - Current assets increased from HKD 9,264,330 thousand in 2022 to HKD 8,796,863 thousand in 2023, a decrease of about 5.0%[5]. - Total liabilities decreased from HKD 14,017,536 thousand in 2022 to HKD 12,929,914 thousand in 2023, a reduction of approximately 7.8%[12]. - The company’s total equity attributable to owners decreased from HKD 9,985,685 thousand in 2022 to HKD 9,598,086 thousand in 2023, a decline of approximately 3.9%[12]. - The company’s liabilities to assets ratio improved from 57.5% in 2022 to 56.2% in 2023, indicating a stronger balance sheet position[12]. Cash Flow and Expenses - The company reported a decrease in cash and cash equivalents from HKD 858,759 thousand in 2022 to HKD 802,291 thousand in 2023, a drop of approximately 6.6%[5]. - The company incurred financial expenses of HKD 742,205, compared to HKD 831,891 in the previous year, showing a reduction of about 10.7%[52]. - The interest expense on bank loans and other borrowings for 2023 was HKD 362,866,000, up from HKD 309,345,000 in 2022, representing an increase of approximately 17.3%[73]. - Other income for the fiscal year 2023 was HKD 109,537, down from HKD 234,084 in 2022[34]. - Distribution and selling expenses decreased by approximately 29.9% or HKD 137 million to about HKD 321 million, mainly due to reduced freight costs[100]. Research and Development - The company reported a net research expense of HKD 657,738,000 for 2023, compared to HKD 795,989,000 in 2022, indicating a reduction of approximately 17.4%[64]. - The group invested approximately HKD 658 million in research and development during the year, down from HKD 796 million in 2022[91]. Market Strategy and Outlook - The company plans to enhance its market expansion strategies and invest in new product development to drive future revenue growth[13]. - The group continues to maintain a cautious yet optimistic outlook for 2024, with significant sales increases noted in the first two months compared to 2023, indicating confidence in stable growth for the upcoming year[93]. - The company plans to continue focusing on display products, including smartphones and smart wearables, while enhancing product design and manufacturing capabilities[117]. Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.05 per share for the fiscal year 2023, consistent with the previous year[32]. - The total dividend payout ratio for the year is approximately 120%[142]. - The company recognized a dividend of HKD 158,055,000 for the year, consistent with the previous year's dividend of HKD 164,461,000[81]. Accounting and Compliance - The application of new accounting standards did not have a significant impact on the group's financial position and performance[22]. - The group has adopted the revised Hong Kong Financial Reporting Standards, which clarified the definition of significant accounting policy information[21]. - The group has implemented new accounting policies effective from January 1, 2022, related to lease transactions and deferred tax assets[17].

智通财经APP获悉，信利国际(00732)午后涨近6%，截至发稿，涨5.8%，报0.73港元，成交额258.57万港元。 消息面上，2月22日下午，华为正式发布新款竖折旗舰Pocket 2。上海证券分析，折叠屏手机产业链有望持续延伸。中金则认为，随着OLED性能优势带来的需求增长逐渐扩散至全尺寸领域，叠加供给侧国内本土产能布局逐步完善，OLED有望进一步提升其在各个尺寸应用场景下的渗透率，同时助推OLED产业链上中下游国产化替代进程。 值得注意的是，信利国际此前公布，集团于2024年1月未经审核综合营业净额约为16.37亿港元，较2023年1月未经审核综合营业净额约8.87亿港元增加约84.6%。 ...

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 7,258,234 thousand, a decrease of 32.5% compared to HKD 10,794,366 thousand in the same period of 2022[7] - Gross profit for the same period was HKD 660,320 thousand, down 38.3% from HKD 1,069,900 thousand year-on-year[7] - Profit before tax decreased to HKD 161,055 thousand, a decline of 74.0% from HKD 620,051 thousand in the previous year[7] - Net profit for the period was HKD 130,692 thousand, representing a 75.2% decrease compared to HKD 528,014 thousand in the prior year[7] - Profit attributable to the company's owners for the period was HKD 167,578, representing a decline of 70.1% from HKD 560,422 in the previous year[29] - EBITDA for the six months was HKD 1,070,667, a decrease of 34.0% compared to HKD 1,622,106 in the prior year[29] - Basic earnings per share for the period were HKD 5.30, down 68.9% from HKD 17.05 in the same period last year[29] - The total comprehensive income attributable to the company's owners for the period was HKD 130,692, compared to HKD 528,014 in the previous year[33] - The total comprehensive loss for the period was HKD 821,929, reflecting the impact of foreign exchange differences[39] Assets and Liabilities - Total assets as of June 30, 2023, were HKD 15,911,356 thousand, down from HKD 17,226,793 thousand as of December 31, 2022[16] - Non-current assets decreased to HKD 15,911,356 thousand from HKD 17,226,793 thousand, indicating a reduction in asset value[16] - Current liabilities amounted to HKD 13,188,990 thousand, compared to HKD 14,017,536 thousand in the previous audited period[19] - The company reported a net asset value of HKD 9,729,318 thousand, down from HKD 10,336,903 thousand[19] - The group’s total borrowings as of June 30, 2023, were HKD 7,188,806,000, reflecting an increase from previous periods[13] - The total accounts payable and other payables as of June 30, 2023, amounted to HKD 5,021,096,000, compared to HKD 5,860,163,000 as of December 31, 2022[13] Cash Flow and Investments - Cash generated from operating activities for the six months was HKD 1,704,394, indicating a strong cash flow position[56] - The net cash increase for the period was HKD 268,204, with cash and cash equivalents at the end of the period totaling HKD 1,103,443[56] - The group incurred a net cash outflow from investing activities of HKD (188,669) primarily due to purchases of property, plant, and equipment[56] - Financing activities resulted in a net cash outflow of HKD (5,902,154), largely due to repayment of bank loans and share buybacks[56] Market and Strategic Initiatives - The company plans to focus on market expansion and new product development to improve future performance[17] - The financial outlook remains cautious due to ongoing market challenges and economic conditions[17] - The smartphone industry remains in a downward trend, with intense competition in the market impacting the group’s performance[135] - The group continues to enhance its R&D capabilities and strengthen collaboration with customers to develop new products[135] - The company is facing challenges in the smartphone-related product business due to uncertainties in the global economic environment affecting demand[156] Accounting and Compliance - The group has applied new accounting standards effective from January 1, 2023, which include updates on insurance contracts and deferred tax related to single transactions[58] - The company has established an audit committee composed of three independent non-executive directors to review and monitor financial reporting and internal controls, meeting at least four times a year[199] - The roles of the Chairman and CEO are not separated, with the same individual holding both positions, which the board believes enhances efficiency in business strategy formulation and execution[200] Dividends and Shareholder Information - The company declared an interim dividend of HKD 5 per share, consistent with the previous year[29] - The company declared an interim dividend of HKD 0.05 per share for the six months ended June 30, 2023, consistent with the previous year[107] Other Financial Metrics - The group reported a significant foreign exchange loss of HKD 580,200 during the period[24] - The group reported a decrease in employee costs to HKD 731,588,000 for the six months ended June 30, 2023, down from HKD 1,071,071,000 in the previous year, reflecting a reduction of 31.7%[107] - Distribution and selling expenses decreased by approximately 22.3% or HKD 51.7 million to about HKD 1.8 billion for the six months ended June 30, 2023[154] - Administrative expenses decreased by approximately 8.2% or HKD 19.6 million to about HKD 218.5 million for the six months ended June 30, 2023, primarily due to reductions in salaries and allowances[137]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 7,258,234 thousand, a decrease of 32.8% compared to HKD 10,794,366 thousand for the same period in 2022[5] - Gross profit for the same period was HKD 660,320 thousand, down 38.3% from HKD 1,069,900 thousand year-on-year[5] - Profit attributable to equity holders for the period was HKD 167,578 thousand, reflecting a significant decline of 70.1% from HKD 560,422 thousand in the previous year[5] - EBITDA for the six months was HKD 1,070,667 thousand, a decrease of 34.0% compared to HKD 1,622,106 thousand in the prior period[5] - Basic earnings per share decreased to HKD 5.30, down 68.9% from HKD 17.05 in the same period last year[5] - Total comprehensive income for the period was HKD (449,508) thousand, a significant change from HKD 14,837 thousand in the same period last year[3] - The company reported other comprehensive expenses of HKD (580,200) thousand for the period, compared to HKD (512,981) thousand in the previous year[3] - The total comprehensive income attributable to the company's owners for the current period was HKD 130,692 thousand, down from HKD 528,014 thousand in the previous year[27] - Other income for the period was approximately HKD 76.0 million, a decrease of about 52.3% or HKD 83.3 million compared to the same period in 2022[76] - Profit attributable to owners decreased by approximately 70.1% to about HKD 167.6 million, mainly due to a decrease in revenue and gross margin of approximately HKD 3.536 billion and about 0.8% respectively compared to the same period in 2022[79] Expenses and Costs - Administrative expenses for the period were HKD (218,491) thousand, slightly reduced from HKD (238,092) thousand in the previous year[7] - Distribution and selling expenses decreased by approximately 22.3% or HKD 51.7 million to about HKD 180.0 million compared to the same period in 2022, primarily due to lower freight rates and salary costs[78] - The company recorded a decrease in employee costs, which amounted to HKD 731,588 thousand compared to HKD 1,071,071 thousand in the previous year[21] - The group’s total employee costs for the period were approximately HKD 732 million, with around 15,000 workers and employees employed in factories in China and about 60 employees in the Hong Kong office[102] Assets and Liabilities - Non-current assets decreased from HKD 14,023,037 thousand in 2022 to HKD 12,909,508 thousand in 2023, a decline of approximately 7.9%[28] - Current assets, specifically inventory, decreased from HKD 3,164,254 thousand in 2022 to HKD 2,922,709 thousand in 2023, representing a reduction of about 7.6%[28] - Total liabilities decreased from HKD 14,017,536 thousand in 2022 to HKD 13,188,990 thousand in 2023, a decrease of approximately 5.9%[29] - Net assets decreased from HKD 10,336,903 thousand in 2022 to HKD 9,729,318 thousand in 2023, reflecting a decline of about 5.9%[29] - The company's cash and cash equivalents increased from HKD 858,759 thousand in 2022 to HKD 1,103,443 thousand in 2023, an increase of approximately 28.5%[28] - The total value of assets minus current liabilities decreased from HKD 12,473,587 thousand in 2022 to HKD 11,288,826 thousand in 2023, a decline of about 9.5%[28] - The company's equity attributable to owners decreased from HKD 9,985,685 thousand in 2022 to HKD 9,479,510 thousand in 2023, a decrease of approximately 5.1%[29] - The total current liabilities decreased from HKD 7,529,208 thousand in 2022 to HKD 6,758,114 thousand in 2023, a decrease of about 10.3%[28] - The net current liabilities as of June 30, 2023, were approximately HKD 4.623 billion, a decrease from HKD 4.753 billion as of December 31, 2022[57] Revenue Segmentation - Revenue from LCD products reached HKD 8,908,851 thousand, while revenue from electronic consumer products was HKD 1,885,515 thousand, totaling HKD 10,794,366 thousand[17] - The company's total revenue for the first half of 2023 is not explicitly stated but is implied to be lower than the previous year's figures based on the overall asset and liability reductions[30] - The group's revenue for the six months ending June 30, 2023, was HKD 7.26 billion, a decrease of approximately 32.8% compared to the same period in 2022[72] Corporate Governance and Compliance - The company has applied new accounting standards effective from January 1, 2023, which did not have a significant impact on its financial position[12] - The audit committee has reviewed the unaudited interim condensed consolidated financial statements for the period and confirmed they were prepared in accordance with applicable accounting standards[110] - The company has adhered to all applicable corporate governance code provisions, except for the significant deviation where the roles of Chairman and CEO are held by the same person, Mr. Lin Wei Hua[111] Future Plans and Investments - The company plans to invest HKD 2 billion in a joint venture for the establishment of an AMOLED production facility in Renshou County, Sichuan Province, with a total investment of RMB 27.9 billion[55] - The group is currently in discussions regarding the establishment of an AMOLED joint venture, with no specified deadline for the agreement[98] - The group has capital expenditure commitments of approximately HKD 347 million for the purchase of properties, plants, and equipment as of June 30, 2023[60] Market Conditions and Challenges - The company is facing challenges in the smartphone-related products business due to high interest rates and geopolitical conflicts affecting global economic growth[46] - Management will closely monitor developments in the display screen market and supply chain management to deliver high-quality products and solutions[52] - The gross profit margin decreased to 9.1%, down approximately 0.8% year-on-year, due to intense competition in the smartphone-related product business[72] Shareholder Information - The company maintained an interim dividend of HKD 5 cents per share, unchanged from the previous year[5] - The group plans to declare an interim dividend of HKD 0.05 per ordinary share, consistent with the previous year[62] - The company will suspend share transfer registration procedures on November 14, 2023, with the record date for interim dividend entitlement being the same date[106] - The company and its subsidiaries did not purchase, redeem, or sell any listed securities during the six months ending June 30, 2023[107]

Share Repurchase - The company repurchased a total of 128,124,000 ordinary shares during the period, with the highest price at HK$2.54 and the lowest at HK$1.30, totaling HK$187,441,000 in expenditure [56]. - The company repurchased a total of 128,124,000 ordinary shares for an aggregate consideration of HK$187,441,000 during the year ended December 31, 2022 [84]. - All repurchased shares were subsequently cancelled during the year [84]. - The board believes that the current financial resources will allow the company to continue its operations while executing the share repurchase program [61]. - There were no purchases, redemptions, or sales of any listed securities by the company during the year ended December 31, 2022 [62]. Audit and Compliance - The Audit Committee reviewed the Group's annual results for the year ended December 31, 2022, ensuring compliance with financial reporting standards [45]. - The company incurred audit and non-audit service fees of HK$4,800,000 and HK$374,000, respectively, for the external auditor during the year [37]. - The Audit Committee comprises independent non-executive directors and meets at least four times a year to review financial matters [46]. - The board engaged an external compliance consultancy to conduct an annual review of the risk management and internal control systems [85]. - The board and audit committee found no material internal control deficiencies during the review [85]. - The audit was conducted in accordance with Hong Kong Standards on Auditing, ensuring independence and ethical compliance [116]. - The auditor's report emphasizes the importance of professional judgment and skepticism throughout the audit process [170]. - The audit identified key audit matters that were significant in the audit of the consolidated financial statements [140]. - The auditor's responsibilities include evaluating the appropriateness of accounting policies and the reasonableness of estimates made by the directors [152]. Financial Performance - Revenue for the year ended December 31, 2022, was HK$19,287,434, a decrease of 14.5% from HK$22,543,455 in 2021 [184]. - Gross profit for the year was HK$1,484,972, down 43.1% from HK$2,612,976 in the previous year [184]. - Profit before tax decreased significantly to HK$376,565, a decline of 76.6% compared to HK$1,595,850 in 2021 [184]. - Profit for the year attributable to owners of the company was HK$318,233, down 76.9% from HK$1,377,998 in 2021 [184]. - Basic earnings per share decreased to 9.77 HK cents, down 76.7% from 41.89 HK cents in the previous year [184]. - Other comprehensive expenses for the year amounted to HK$1,126,293, compared to an income of HK$368,011 in 2021 [184]. - Total comprehensive expenses for the year were HK$807,092, a significant decrease from total comprehensive income of HK$1,799,602 in 2021 [184]. - The company reported a reversal of impairment losses under the expected credit loss model, netting HK$35,740, compared to a loss of HK$49,439 in 2021 [184]. Risk Management - The Board is responsible for risk management and internal controls, with regular assessments conducted to identify and manage significant risks [54]. - The company has implemented internal monitoring procedures to ensure effective risk management [42]. - The board is responsible for evaluating significant events that may impact share price or trading volume [86]. - The board aims to balance immediate returns to shareholders through dividends while retaining adequate reserves for future growth [111]. - The Group's liquidity assessment included the preparation of cash flow forecasts and comparisons against the budget approved by the board of directors [127]. Governance and Board Structure - The company has established a Remuneration Committee and a Nomination Committee to oversee director remuneration and board composition, respectively [46]. - The independent non-executive directors confirmed their independence, ensuring compliance with the Listing Rules [46]. - The company has adopted a board diversity policy aimed at enhancing the effectiveness of the Board [29]. - The Group's management provides monthly updates to the Board, ensuring a balanced assessment of the Company's performance and prospects [100]. - The Group emphasizes the importance of gender diversity in the workplace but currently does not set specific gender targets for its employees [115]. - The Group's employee gender distribution as of December 31, 2022, was 57% male and 43% female, showing a slight shift from 58% and 42% in 2021 [115]. Dividend Policy - The company has a dividend policy that allows the board to declare dividends from distributable reserves at its discretion [92]. - The board will periodically review the dividend policy and may amend it as deemed necessary [94]. - The Board's dividend policy allows for the declaration and payment of dividends at its discretion, considering the Group's financial performance and liquidity position [107]. - The company proposed a final dividend of 5 HK cents per share, unchanged from the previous year, pending shareholder approval [195]. Going Concern and Financial Position - The Group's financial statements for the year ended December 31, 2022, reflect a fair and true view of its financial position and performance in accordance with Hong Kong Financial Reporting Standards [117]. - The Board considers that the Group has adequate resources to continue operational existence for the foreseeable future, adopting the going concern basis for preparing financial statements [100]. - The Group's financial statements were prepared on a going concern basis, considering its cash balance and unutilized bank facilities [130]. - The Group's ability to continue as a going concern was assessed, with disclosures made regarding any material uncertainties [173]. - The carrying amount of goodwill from the acquisition of Truly HZ as of December 31, 2022, was HK$587,424,000, representing 2.2% of the Group's total assets [124].

Financial Performance - Gross profit for the year 2022 was HKD 1,484,972, a decrease from HKD 2,612,976 in 2021[3] - Total revenue for the year 2022 was HKD 376,565, down from HKD 1,595,850 in 2021, indicating a significant decline[10] - The company reported a net loss of HKD 807,092 for the year 2022 compared to a net income of HKD 1,799,602 in 2021[11] - The company’s equity attributable to owners decreased to HKD 9,985,685 in 2022 from HKD 11,282,383 in 2021, reflecting a decline in shareholder value[5] - The company's net profit for the year decreased by approximately 76.9% to about HKD 318.23 million, down from HKD 1.38 billion in the previous year[51] - Basic earnings per share dropped from HKD 0.4189 to HKD 0.0977, reflecting a significant decline in profitability[51] - The gross profit margin fell to approximately 7.7% from 11.6% in the previous year, indicating challenges in maintaining profitability[64] - The company reported a total tax expense of HKD 57.36 million for the year, a decrease from HKD 165.2 million in the previous year[51] - The total comprehensive income attributable to equity holders was HKD (781,184) thousand, compared to HKD 1,737,751 thousand in 2021[68] - The company’s total revenue for the year was significantly impacted by a one-time income reduction of approximately HKD 241 million from the acquisition of a major joint venture[51] Assets and Liabilities - Current liabilities decreased to HKD 14,017,536 in 2022 from HKD 17,017,402 in 2021, reflecting a reduction in financial obligations[5] - Non-current assets decreased to HKD 17,226,793 in 2022 from HKD 18,653,459 in 2021, indicating a decline in long-term investments[12] - Cash and cash equivalents decreased to HKD 858,759 in 2022 from HKD 1,208,068 in 2021, showing a reduction in liquidity[12] - The company’s total liabilities decreased to HKD 16,150,220 in 2022 from HKD 18,000,000 in 2021, indicating improved financial health[5] - Total accounts receivable as of 2022 amounted to HKD 990,645,000, a decrease from HKD 534,847,000 in 2021[93] - Total accounts payable reached HKD 5,860,163,000 in 2022, compared to HKD 7,946,025,000 in 2021, indicating a reduction in liabilities[93] - As of December 31, 2022, the company's net current liabilities decreased to approximately HKD 4.753 billion from HKD 5.938 billion a year earlier, with the current ratio increasing from 0.65 to 0.66[132] - The company's impairment losses decreased to approximately HKD 0.36 billion from HKD 0.49 billion in the previous year, primarily due to recoveries of certain impaired financial assets[139] Revenue and Growth Strategies - The company plans to focus on expanding its electronic consumer products segment, which includes new product development and market expansion strategies[15] - The company plans to continue investing in talent and technology development to support product growth and maintain competitive advantage[28] - The company aims to control costs and expenditures to enhance product competitiveness moving forward[28] - The company expects revenue and net profit attributable to shareholders to grow in 2023, driven by economic recovery and supply chain improvements[115] - The company plans to expand in the vehicle display sector and focus on emerging markets such as new energy vehicles[115] Research and Development - Research and development expenditure for the year was approximately HKD 796 million, slightly down from HKD 811 million in the previous year[52] - The company continues to invest in R&D to enhance its product offerings and maintain competitiveness in the market[52] Corporate Governance - The company has established an audit committee to review and supervise financial reporting and internal controls[155] - The board emphasizes that good corporate governance is crucial for safeguarding shareholder interests and enhancing group performance[170] - As of December 31, 2022, the group has complied with all applicable corporate governance code provisions, except for specific deviations noted in the interim report[170] - The board will continuously review and improve the company's corporate governance practices and principles[171] Other Financial Information - The company reported interest expenses on bank and other borrowings of HKD 309,345,000 in 2022, an increase from HKD 293,891,000 in 2021[101] - Distribution and selling expenses increased by approximately 4.8% or HKD 0.21 billion to about HKD 4.58 billion, mainly due to increased freight costs[140] - Financial expenses rose by approximately 3.9% or HKD 0.13 billion to about HKD 3.55 billion, attributed to increased bank and other borrowings[141] - The total dividend payout ratio for the year was approximately 102%[162] - The company repurchased a total of 128,124,000 ordinary shares at a total price of HKD 187.441 million, representing about 3.9% of the total issued share capital as of December 31, 2022[154]

Financial Performance - For the nine months ended September 30, 2022, the company's unaudited revenue was approximately HKD 15.15 billion, a decrease of about 9.2% compared to HKD 16.68 billion in the same period last year[6] - The gross profit for the same period was HKD 1.48 billion, representing a decline of 23.9% from HKD 1.94 billion year-on-year[6] - The profit attributable to the company's owners for the period was HKD 654.29 million, down 28.6% from HKD 916.19 million in the previous year[6] - The basic earnings per share for the period were HKD 19.95, a decrease of 28.4% compared to HKD 27.85 in the same period last year[7] - The gross profit margin for the period was approximately 9.8%, down from 11.7% in the previous year[6] - The net profit margin for the period was approximately 4.3%, down from 5.5% in the same period last year[6] Other Income and Dividends - Other income and gains for the period amounted to approximately HKD 256 million, significantly up from HKD 128 million in the previous year, mainly due to foreign exchange gains and increased government subsidies[6] - The company did not recommend the payment of an interim dividend for the nine months ended September 30, 2022, consistent with the previous year[8] Foreign Exchange Impact - The company reported a loss from foreign exchange translation of approximately HKD 1.37 billion for the period[4] Share Information - The average number of issued ordinary shares during the period was 3,278,947,581 shares, slightly down from 3,289,229,398 shares in the previous year[7]

Revenue and Profit Performance - Revenue for the first half of 2022 decreased by 2.1% to HKD 11,031.458 million compared to HKD 10,794.336 million in the same period last year[24] - Revenue for the six months ended June 30, 2022, was HK$10.794 billion, a decrease of 2.1% compared to the same period in 2021[74][75] - Gross profit declined by 19% to HKD 1,321.008 million from HKD 1,069.900 million year-over-year[24] - Gross profit margin decreased to 9.9% from 12.0% in the same period last year, primarily due to lower average selling prices of certain smartphone-related products[74][76] - Profit attributable to the company's owners decreased by 15.8% to HKD 665.473 million from HKD 560.422 million[24] - Net profit attributable to the company's owners decreased by 15.8% to HK$560.4 million, primarily due to the decline in gross profit margin[81] - Net profit for the six months ended June 30, 2022 was HK$560,422 thousand, a decrease from HK$665,473 thousand in the same period in 2021[50] - Pre-tax profit for the six months ended June 30, 2022, was HKD 620,051 thousand, compared to HKD 881,463 thousand in the same period in 2021[43] - Profit for the period was HKD 528,014 thousand[34] EBITDA and Earnings Per Share - EBITDA dropped by 7.3% to HKD 1,748.911 million compared to HKD 1,622.106 million in the previous year[24] - Basic earnings per share fell by 15.7% to 20.23 HK cents from 17.05 HK cents[24] - The weighted average number of shares for basic earnings per share calculation was 3,287,149 thousand in 2022, slightly down from 3,289,229 thousand in 2021[51] Tax and Other Income - The company reported a tax expense of HKD 157.477 million, up from HKD 92.037 million in the prior year[27] - Other income increased to HKD 104.608 million from HKD 159.239 million year-over-year[27] - Other income increased by 52.2% to HK$159.2 million, mainly due to government subsidies of HK$123.8 million received during the period[77] Associates and Comprehensive Income - The company's share of profit from associates was HKD 50.009 million, compared to HKD 6.460 million in the previous year[27] - Total comprehensive income for the period was HKD 845.438 million, down from HKD 14.837 million[28] - Total comprehensive income for the period was HKD 14,837 thousand[34] - Other comprehensive expenses for the period were HKD 513,177 thousand, mainly due to foreign exchange differences from overseas operations[34] Assets and Liabilities - Non-current assets decreased to HKD 18,653.459 million from HKD 17,384.236 million as of June 30, 2022[30] - Total current liabilities decreased to HKD 17,017,402 thousand in 2022 from HKD 15,449,899 thousand in 2021[31] - Total assets minus current liabilities slightly decreased to HKD 12,446,794 thousand in 2022 from HKD 12,715,942 thousand in 2021[31] - Net asset value increased to HKD 11,484,324 thousand in 2022 from HKD 11,659,509 thousand in 2021[31] - Total equity increased to HKD 11,484,324 thousand in 2022 from HKD 11,659,509 thousand in 2021[31] - Non-controlling interests decreased to HKD 330,750 thousand in 2022 from HKD 377,126 thousand in 2021[31] - Accounts receivable decreased to HK$3,425,938 thousand in 2022 from HK$4,103,787 thousand in 2021[54] - Accounts receivable within 60 days decreased to HK$2,363,667 thousand in 2022 from HK$3,052,566 thousand in 2021[55] - Fair value of accounts receivable and notes receivable increased to HK$837,523 thousand in 2022 from HK$534,847 thousand in 2021[58] - Accounts payable within 60 days decreased to HKD 2,811,623K (unaudited) from HKD 4,404,430K (audited) as of June 30, 2022[60] Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2022, was HKD 3,000,059 thousand, compared to HKD 3,695,282 thousand in the same period in 2021[37] - Net cash used in investing activities for the six months ended June 30, 2022, was HKD 1,089,994 thousand, primarily for the purchase of property, plant, and equipment[37] - Net cash used in financing activities for the six months ended June 30, 2022, was HKD 6,472,406 thousand, mainly due to the repayment of bank and other borrowings[37] - Cash and cash equivalents increased by HKD 137,246 thousand during the six months ended June 30, 2022, compared to an increase of HKD 235,997 thousand in the same period in 2021[37] - Total bank and other borrowings increased to HKD 6,090,329K (unaudited) as of June 30, 2022, compared to HKD 6,116,506K (audited) as of December 31, 2021[61] - New bank borrowings during the interim period amounted to approximately HKD 4,641,496K, up from HKD 3,338,820K in the same period last year[63] - Fixed-rate bank borrowings as of June 30, 2022, stood at HKD 4,547,240K, with an effective annual interest rate ranging from 1.65% to 7.13%[63] - The company's net debt decreased by 12% or HK$594 million compared to December 31, 2021, with total borrowings standing at HK$4.542 billion as of June 30, 2022[85] - The capital-to-debt ratio decreased from 46% as of December 31, 2021, to 41% as of June 30, 2022[86] Expenses and Costs - Financial expenses for the six months ended June 30, 2022, were HKD 176,376 thousand, a decrease from HKD 185,789 thousand in the same period in 2021[45] - Administrative expenses increased by 22% to HK$238.1 million, mainly due to business consolidation and increased salaries and allowances[79] - Distribution and selling expenses increased by 2.9% to HK$231.8 million, primarily due to higher freight costs[80] - Cost of inventory recognized as expenses was HK$8,074,479 thousand in 2022, compared to HK$8,262,111 thousand in 2021[48] - Depreciation of property, plant, and equipment increased to HK$789,291 thousand in 2022 from HK$647,670 thousand in 2021[48] - The company acquired property, plant, and equipment worth HK$338,257 thousand in 2022, down from HK$413,471 thousand in 2021[52] - Fair value loss on listed equity securities was HK$1,110 thousand in 2022, compared to HK$3,580 thousand in 2021[53] Dividends and Share Repurchases - The company declared an interim dividend of HK$0.05 per share for 2022, the same as in 2021[49] - The company declared an interim dividend of 5 HK cents per ordinary share, payable on December 1, 2022, to shareholders on the register as of September 20, 2022[92] - The company repurchased and canceled shares worth HKD 11,220K, reducing the issued and fully paid share capital to HKD 3,278,009,398K as of June 30, 2022[64] - As of June 30, 2022, the company repurchased a total of 11.22 million ordinary shares with a nominal value of HKD 0.02 each for a total consideration of HKD 25.75956 million (before expenses), with 5.944 million shares canceled during the period and the remaining 5.276 million shares canceled on July 25, 2022[103] Subsidiaries and Investments - The company's four Chinese subsidiaries are approved as high-tech enterprises, enjoying a reduced corporate income tax rate of 15% for three years starting from 2020 or 2021[47] - The company holds a 7.1% equity interest in Truly (Renshou) High-End Display Technology Co., Ltd., which is accounted for using the equity method[82] - Acquired approximately 16.77% equity in Truly Huizhou for RMB 450 million (approximately HKD 550.35 million), with RMB 50 million (approximately HKD 61.15 million) settled in 2021 and the remaining RMB 400 million (approximately HKD 489.2 million) to be settled in two installments in 2022[87] - Truly Huizhou became an indirect non-wholly owned subsidiary, with the company holding approximately 76.5% equity and an independent third party holding approximately 23.5% equity[87] - The company is in discussions to potentially acquire additional equity in Truly Renshou from Renshou Ji'an No. 1 Limited Partnership[88] - As of June 30, 2022, the company had HKD 475.788 million in borrowings secured by buildings with a face value of HKD 564.078 million in Truly Huizhou[90] - Sales to associated company Truly (Renshou) High-End Display Technology Co., Ltd. increased to HKD 296K (unaudited) for the six months ended June 30, 2022, from HKD 5,509K (unaudited) in the same period last year[67] Employee and Capital Expenditure - The company employs approximately 16,200 workers and employees in its factories in China and about 100 employees in its Hong Kong office, with total employee costs of approximately HKD 1.071 billion[91] - Short-term employee benefits for directors and key management personnel increased to HKD 8,835K (unaudited) for the six months ended June 30, 2022, from HKD 7,749K (unaudited) in the same period last year[68] - As of June 30, 2022, the company had committed but unprovided capital expenditure for the acquisition of property, plant, and equipment of approximately HKD 218 million[91] - Capital commitments for the acquisition of property, plant, and equipment decreased to HKD 217,672K (unaudited) as of June 30, 2022, from HKD 308,121K (audited) as of December 31, 2021[65] Financial Assets and Liabilities - The fair value of financial assets measured at fair value through profit or loss decreased to HKD 3,423K (unaudited) as of June 30, 2022, from HKD 4,533K (audited) as of December 31, 2021[70] - The company reported no significant contingent liabilities as of June 30, 2022[71] Corporate Governance and Shareholding - The roles of Chairman and CEO are not separated, both held by Mr. Lam Wai Wah, to enhance efficiency and effectiveness in business strategy and execution[107] - The Chairman did not attend the Annual General Meeting on May 26, 2022, due to being stationed at the company's Shanwei factory since February 2020[108] - Independent non-executive directors Mr. Lai Cho Ting and Mr. Heung Kai Shing did not attend the Annual General Meeting on May 26, 2022, due to prior business commitments[109] - The company disclosed the tenure of all independent non-executive directors in a supplementary announcement on April 26, 2022, after initially misunderstanding the disclosure requirements[110] - The company's largest shareholder, Lin Weihua, beneficially owns 1,441,852,000 ordinary shares, representing 43.91% of the issued share capital, and is deemed to own an additional 74,844,000 shares held by his spouse, totaling 46.19%[93] - No purchase, redemption, or sale of any listed securities by the company or its subsidiaries during the six months ended June 30, 2022[104] - The company's audit committee reviewed the unaudited interim condensed consolidated financial statements and confirmed compliance with applicable accounting standards[106] Other Information - No significant events affecting the group occurred between June 30, 2022, and the date of the report[111] - The 2023 interim report was published on the HKEXnews website and the company's website[112]

Financial Performance - The company's unaudited revenue for the three months ended March 31, 2022, was approximately HKD 5.34 billion, an increase of about 0.3% compared to HKD 5.33 billion in the same period last year [2]. - The gross profit for the same period was HKD 571 million, representing a decrease of 6.0% from HKD 608 million in the previous year, resulting in a gross margin of approximately 10.7% compared to 11.4% last year [5]. - The profit attributable to the company's owners for the period was HKD 315 million, an increase of 19.9% from HKD 263 million in the same period last year [2]. - Basic earnings per share for the period were HKD 0.0958, up 19.9% from HKD 0.0799 in the previous year [5]. - The total comprehensive income for the period attributable to the company's owners was HKD 479 million, compared to HKD 244 million in the previous year [5]. - The company’s net profit margin for the period was approximately 5.9%, compared to 4.9% in the same period last year [5]. Government Support - The company recorded government subsidies of approximately HKD 84 million during the period, compared to about HKD 3 million in the same period last year [5]. Dividends - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2022, as the unaudited results may not reflect the performance for the six months ending June 30, 2022, and the full year ending December 31, 2022 [7]. Expenses - The company’s administrative expenses increased slightly to HKD 234 million from HKD 231 million in the previous year [3]. Foreign Exchange - The company reported a foreign exchange gain of HKD 166 million for the period, compared to a loss of HKD 26 million in the previous year [4].