Financial Performance - Total revenue for the fiscal year ending April 30, 2022, was HKD 2,008.97 million, a decrease from HKD 2,103.53 million in 2021[10] - Gross profit margin improved to 34.0% in 2022, up from 30.1% in 2021[10] - Net profit for the year was HKD 39.88 million, compared to HKD 32.32 million in the previous year, reflecting a growth of 23.9%[10] - Total assets decreased to HKD 919.52 million in 2022 from HKD 983.42 million in 2021[10] - The company's earnings per share increased to HKD 5.99 from HKD 4.85, representing a growth of 23.5%[10] - Revenue decreased by 4.5% to HKD 2,008,967,000 (2021: HKD 2,103,529,000) [14] - Annual profit increased by 23.4% to HKD 39,884,000 (2021: HKD 32,324,000) [14] - Basic earnings per share rose to HKD 0.0599 (2021: HKD 0.0485) [14] - Net cash inflow from operating activities was HKD 307,108,000 (2021: HKD 355,915,000) [14] - Cash flow from operating activities was HKD 307,108,000 in 2022, down from HKD 355,915,000 in 2021[38] Retail Business Performance - Retail business segment revenue was HKD 1,922,315,000 (2021: HKD 2,025,544,000), a decline of approximately 5.1% [23] - Retail segment gross profit was HKD 676,619,000 (2021: HKD 664,874,000) with a gross profit margin of 35.2% (2021: 32.8%) [23] - Retail segment sales increased by 3.6% to HKD 478,245,000 in 2022, compared to HKD 461,350,000 in 2021[27] - Operating profit for the retail segment decreased by 36.2% to HKD 98,202,000 in 2022, down from HKD 153,891,000 in 2021[27] - Total inventory value for retail business was HKD 102,212,000 (2021: HKD 174,898,000), a decrease of 42% [24] Financial Ratios and Health - The current ratio improved to 0.98 in 2022 from 0.87 in 2021, indicating better short-term financial health[10] - The interest coverage ratio significantly increased to 33.66 from 15.94, showing improved ability to meet interest obligations[10] - The debt-to-equity ratio decreased to 0.04 in 2022 from 0.28 in 2021, indicating a stronger equity position[10] - Total bank borrowings decreased by 85.8% to HKD 18,386,000 as of April 30, 2022, from HKD 129,760,000 in 2021[32] - Financial expenses reduced by 22% to HKD 13,543,000 in 2022, down from HKD 17,316,000 in 2021[34] Corporate Governance and Shareholder Relations - The company aims to maintain steady long-term investment returns for shareholders while improving corporate governance through capital market oversight[3] - Proposed final dividend of HKD 0.01 per share (2021: HKD 0.009) pending shareholder approval [15] - The company proposed a final dividend of HKD 0.10 per share for the year ending April 30, 2022, compared to HKD 0.09 per share in 2021, pending shareholder approval[79] - As of April 30, 2022, the company had approximately HKD 131,338,000 in paid-up capital and HKD 9,286,000 in retained earnings available for distribution to shareholders[82] - The company has not repurchased any of its listed shares during the year ending April 30, 2022[84] Market and Strategic Adaptation - The company continues to adapt its strategies in response to the fluctuating market environment due to the pandemic [22] - The company anticipates facing more unknown challenges in the retail sector due to ongoing global uncertainties, including the COVID-19 pandemic and international political tensions[45] - The management believes that the local market has adapted to living under the pandemic, and they expect a return to normalcy as the pandemic subsides[46] - The company plans to focus on finding suitable retail locations in commercial areas to expand its store network, as opportunities in residential areas are limited[46] - The company will adjust its product mix to refocus on snacks and leisure foods in anticipation of the post-pandemic era[46] Sustainability and Environmental Impact - The company is committed to sustainable business development and long-term returns for shareholders, considering overall financial status and future operational needs when declaring dividends[159] - The total amount of non-hazardous waste generated during the reporting period was approximately 65 tons, a decrease from 73 tons in 2021, with a density of 0.0339 tons per million HKD revenue compared to 0.0359 tons in 2021[176] - The total energy consumption during the reporting period was 21,441,000 kWh, an increase from 20,864,000 kWh in 2021, with energy consumption density rising to 11,154 kWh per million HKD revenue from 10,300 kWh in 2021[182] - The company has committed to maintaining indoor temperatures between 24 to 26 degrees Celsius to reduce electricity consumption[181] - The company has eliminated all pre-Euro 5 trucks from its fleet to reduce emissions and has installed GPS systems in all delivery vehicles to enhance operational efficiency[183] Employee and Workforce Management - The group employed approximately 1,500 staff as of April 30, 2022, down from 1,600 in 2021[44] - The average monthly employee turnover rate increased to 4.1%, up from 3.3% in 2021, representing an increase of approximately 0.8 percentage points[200] - The company employed a total of 855 employees as of April 30, 2022, down from 888 employees in 2021[196] - Female employees accounted for 68.2% of the workforce, while male employees made up 31.8%[196] - The company emphasizes equal opportunity employment and regularly reviews compensation to attract and retain employees[78] Board and Management Structure - The company’s board of directors includes key executives such as the Chairperson and Managing Director, who holds 4,194,611 shares, representing 0.63% of the issued share capital[94] - The company’s significant shareholder, Lin Guozhong, holds 442,295,660 shares, accounting for 66.39% of the issued share capital[94] - The board consists of 3 executive directors and 3 independent non-executive directors, with independent directors making up half of the board[122] - The board meets at least 4 times a year to review the group's financial and operational performance[126] - The company has adopted the corporate governance code and has complied with its principles, with the exception of the separation of roles between the Chairman and CEO[118]

Financial Performance - For the fiscal year ended April 30, 2022, CEC International Holdings Limited reported total revenue of HKD 2,008,967,000, a decrease of 4.5% from HKD 2,103,529,000 in 2021[1] - The gross profit for the same period was HKD 682,968,000, representing an increase of 7.8% compared to HKD 633,512,000 in the previous year[1] - Operating profit increased slightly to HKD 65,533,000, up from HKD 64,328,000, reflecting a growth of 1.9%[1] - The net profit attributable to equity holders of the company was HKD 39,884,000, a significant increase of 23.5% from HKD 32,324,000 in 2021[1] - Basic and diluted earnings per share rose to HKD 5.99, compared to HKD 4.85 in the previous year, marking a growth of 23.5%[1] - Total annual profit for 2022 was HKD 39,884 thousand, an increase of 23.5% compared to HKD 32,324 thousand in 2021[12] - The group's profit attributable to shareholders was HKD 39,884,000, representing a growth of about 23% compared to HKD 32,324,000 in 2021[32] Assets and Liabilities - Total assets as of April 30, 2022, were HKD 919,516,000, a decrease from HKD 983,418,000 in 2021[4] - Total liabilities decreased to HKD 419,863,000 from HKD 515,050,000, indicating a reduction of 18.4%[4] - The total equity attributable to equity holders increased to HKD 499,653,000, up from HKD 468,368,000, reflecting a growth of 6.1%[4] - Total assets decreased to HKD 919,516 thousand in 2022 from HKD 983,418 thousand in 2021[14] - Total liabilities decreased to HKD 419,863 thousand in 2022 from HKD 515,050 thousand in 2021[14] - The group’s accounts payable decreased to HKD 95,695,000 in 2022 from HKD 106,701,000 in 2021[28] Segment Performance - CEC International Holdings Limited has three reportable segments: retail business, electronic component manufacturing, and investment property holdings, which are regularly reviewed by management for performance assessment[11] - Retail business revenue for 2022 was HKD 1,922,315 thousand, a decrease of 5.1% from HKD 2,025,544 thousand in 2021[12] - Operating profit for the retail business in 2022 was HKD 98,202 thousand, down 36.2% from HKD 153,891 thousand in 2021[12] - The electronic components manufacturing segment reported revenue of HKD 85,735,000, an increase of 11.2% from HKD 77,131,000 in 2021[41] - The group’s gross profit for the retail segment was HKD 676,619,000, with a gross margin of 35.2%, an improvement from 32.8% in the previous year[34] Cash Flow and Expenditures - Capital expenditure for 2022 was HKD 18,054 thousand, an increase of 33.5% from HKD 13,487 thousand in 2021[12] - The group’s bank balance and cash as of April 30, 2022, was HKD 100,171,000, slightly down from HKD 101,752,000 in 2021[43] - Total borrowings decreased significantly by 85.8% to HKD 18,386,000 from HKD 129,760,000 in 2021[43] - The net cash inflow for the year was HKD 8,219,000, compared to HKD 7,019,000 in 2021[49] - Current liabilities net value dropped to HKD 5,102,000, down from HKD 53,408,000 in 2021, reflecting improved liquidity[51] Operational Insights - The company received government subsidies of HKD 186 thousand in 2022, compared to HKD 39,773 thousand in 2021 under the COVID-19 relief programs[17] - The net loss from fair value of investment properties was HKD 962 thousand in 2022, an improvement from a loss of HKD 1,426 thousand in 2021[18] - Total expenses for sales, distribution, and administrative costs decreased to HKD 1,945,824 thousand in 2022 from HKD 2,078,375 thousand in 2021[20] - Interest expenses on bank loans decreased to HKD 2,941 thousand in 2022 from HKD 5,921 thousand in 2021[20] - Retail segment sales and distribution costs increased by 3.6% to HKD 478,245,000 in 2022, compared to HKD 461,350,000 in 2021[38] Corporate Governance and Future Outlook - The board believes that good corporate governance is essential for maintaining investor confidence and has adopted the corporate governance code[59] - The management anticipates that the retail business will face more unknown challenges due to global inflation and extreme currency fluctuations[55] - The company plans to focus on finding suitable retail locations in commercial areas as the economy recovers from the pandemic[57] - The company did not repurchase any of its listed shares during the fiscal year ending April 30, 2022[58] - The company’s auditor confirmed that the financial statements for the year ending April 30, 2022, are consistent with the audited financial reports[64] Employee and Store Metrics - The group employed approximately 1,500 employees as of April 30, 2022, a decrease from 1,600 in 2021[54] - The total number of stores decreased to 172 as of April 30, 2022, down from 174 in 2021, with 9 new openings and 11 closures[37] - Membership card usage remained stable, with approximately 550,000 cards used weekly and 1.4 million cards used every five weeks[40] Upcoming Events - The annual general meeting is scheduled for September 29, 2022[66] - The company will publish its annual report by the end of August 2022, which will include all required information as per listing rules[67]

Financial Performance - CEC International Holdings Limited reported revenue of HKD 971,637,000 for the six months ended October 31, 2021, a decrease of 10.3% from HKD 1,083,184,000 in the same period of 2020[6]. - The gross profit for the same period was HKD 336,918,000, representing an increase of 8.7% compared to HKD 310,111,000 in the previous year[6]. - Operating profit decreased to HKD 30,658,000, down 9.4% from HKD 33,821,000 year-on-year[6]. - Net profit attributable to equity holders of the company was HKD 18,798,000, an increase of 25.5% from HKD 14,993,000 in the prior period[6]. - Basic and diluted earnings per share increased to HKD 2.82 cents, compared to HKD 2.25 cents in the same period last year[6]. - Total comprehensive income for the period was HKD 21,932,000, down from HKD 28,539,000 in the previous year[8]. - The company reported a net finance cost of HKD 5,484,000, an improvement from HKD 9,970,000 in the same period of 2020[6]. - Other income for the period was HKD 1,201,000, compared to HKD 41,163,000 in the previous year, indicating a significant decrease[6]. - The company experienced a foreign exchange gain of HKD 3,193,000 during the period, compared to a gain of HKD 13,581,000 in the previous year[8]. Assets and Liabilities - Total assets as of October 31, 2021, amounted to HKD 956,226,000, a decrease from HKD 983,418,000 as of April 30, 2021[10]. - Total equity increased to HKD 484,304,000 from HKD 468,368,000, reflecting a growth of approximately 3%[10]. - Current liabilities totaled HKD 369,374,000, down from HKD 423,899,000, indicating a reduction of about 13%[10]. - Non-current liabilities rose to HKD 102,548,000, compared to HKD 91,151,000, representing an increase of approximately 12%[10]. - The company’s total liabilities decreased to HKD 471,922,000 from HKD 515,050,000, indicating a reduction of about 8%[10]. - The total bank financing as of October 31, 2021, was HKD 400,221,000, down from HKD 503,300,000 as of April 30, 2021, indicating a reduction of 20.5%[18]. - The group's total borrowings amounted to HKD 95,232,000, a decrease of 26.5% from HKD 129,760,000 as of April 30, 2021[16]. Cash Flow - As of October 31, 2021, the group's cash generated from operations was HKD 115,670,000, a decrease of 45.5% compared to HKD 213,249,000 for the same period in 2020[14]. - The net cash used in investing activities was HKD (6,665,000), compared to HKD (6,045,000) for the same period in 2020, reflecting a 10.2% increase in cash outflow[14]. - The group’s net cash from financing activities was HKD (105,457,000), a significant decrease from HKD (219,188,000) in the previous period, indicating improved cash management[14]. - The group’s cash flow forecast covers at least 12 months from October 31, 2021, relying on operational cash flow and available bank financing[19]. Business Segments - Retail business revenue for the six months ended October 31, 2021, was HKD 926,094, a decrease of 11.2% from HKD 1,043,044 in the same period of 2020[27]. - Electronic components manufacturing reported a loss of HKD 6,608 for the six months ended October 31, 2021, compared to a loss of HKD 54,278 in the previous year[27]. - The group has three reporting segments: retail business, electronic components manufacturing, and investment properties, with performance evaluated based on internal reports[26]. - Revenue from the electronic components manufacturing business increased by 14.2% to HKD 45,197,000, with a gross profit margin of 11.2% compared to a gross loss margin of -56.3% in 2020[50]. Market and Operational Strategy - CEC International Holdings Limited continues to focus on enhancing operational efficiency and exploring new market opportunities for future growth[5]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[11]. - The management anticipates ongoing volatility in the retail market due to global supply chain disruptions, with a focus on improving operational capabilities in the short term[64]. - The company plans to leverage its supplier network across over 60 countries to mitigate supply chain risks and ensure stable product availability[64]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, with some deviations noted regarding the roles of the chairman and CEO[75]. - Following the resignation of independent non-executive director Mr. Qu on September 29, 2021, the company has only two independent non-executive directors, which is below the minimum requirement[77]. - The audit committee currently consists of two independent non-executive directors, with regular meetings held at least twice a year[78]. - The company has confirmed compliance with the standard code of conduct for securities transactions by all directors during the six months ending October 31, 2021[81]. Shareholder Information - The company has a significant shareholder, Lin Guozhong, holding 66.39% of the shares, which indicates a strong control over the company[65]. - As of October 31, 2021, major shareholder Ms. Luo Jingyi holds a total of 472,250,848 shares, representing 70.89% of the issued share capital[71]. - Ka Yan China Investments Limited and its subsidiary Ka Yan China Development (Holding) Company Limited collectively hold 442,295,660 shares, accounting for 66.39% of the issued share capital[72].

| --- | --- | |-------|------------------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | CEC-COILS。 759 阿信屋。 CEC 國 際 控 股 有 限 公 司 CEC INTERNATIONAL HOLDINGS LIMITED (Incorporated in Bernuda with limited liability) | | | (於百慕達注册成立之有限公司) (Stock Code 股 份 代 號 : 759) ＡＮＮＵＡＬ ＲＥＰＯＲＴ 年 報 | 公司簡介 CEC國際控股有限公司（簡稱：CEC國際）為一家奉行「循序、堅定、敬業」經營理念的中小型企 業，業務包括設計以至生產各類型電子線圈及本地零售業務。 電子線圈業務始創於1979年，經過多年來不斷循序發展，至今已成為較具規模的電子線圈製造 商，產品市場來自包括電訊及資訊科技 ...

Financial Performance - Revenue for the six months ended October 31, 2020, was HKD 1,083,184,000, an increase from HKD 903,841,000 in the same period of 2019, representing a growth of approximately 19.9%[6] - Gross profit for the period was HKD 310,111,000, slightly up from HKD 309,125,000 year-on-year[6] - Operating profit increased to HKD 33,821,000, compared to HKD 21,312,000 in the previous year, marking a growth of approximately 58.7%[6] - Profit attributable to equity holders for the period was HKD 14,993,000, significantly higher than HKD 5,070,000 in the same period last year, reflecting an increase of approximately 195.5%[6] - Basic and diluted earnings per share were HKD 2.25, up from HKD 0.76 in the previous year, indicating a growth of approximately 196.1%[6] - The company reported a total comprehensive income of HKD 28,539,000 for the period, compared to a loss of HKD 10,325,000 in the same period last year[8] - The company reported a net profit of HKD 5,070,000 for the period, reflecting a significant increase compared to previous periods[11] - The company reported a total profit for the period of HKD 14,993,000, up from HKD 5,070,000 in the same period last year, reflecting a growth of 195.5%[43] Assets and Liabilities - Total assets as of October 31, 2020, were HKD 1,026,042,000, down from HKD 1,135,006,000 as of April 30, 2020[10] - Total liabilities were HKD 588,549,000, a decrease from HKD 722,721,000 as of April 30, 2020[10] - Total equity increased to HKD 437,493,000 from HKD 412,285,000, reflecting a growth of approximately 6.1%[10] - As of October 31, 2020, the group's current liabilities exceeded current assets by HKD 106,146,000, down from HKD 163,488,000 on April 30, 2020[16] - Total borrowings amounted to HKD 160,488,000 as of October 31, 2020, a decrease from HKD 287,134,000 on April 30, 2020[16] Cash Flow and Financing - Cash generated from operating activities was HKD 213,144,000, a notable increase from HKD 135,034,000 in the previous year[14] - The company recorded a cash outflow from investing activities of HKD 6,645,000, primarily due to the purchase of property, plant, and equipment[14] - Financing activities resulted in a net cash outflow of HKD 219,188,000, influenced by loan repayments and dividend payments[14] - As of October 31, 2020, the company had cash and cash equivalents of HKD 58,839,000, compared to HKD 52,593,000 at the end of the previous period[14] - The group recorded a net cash outflow of HKD 12,089,000 for the six months ended October 31, 2020, compared to a cash inflow of HKD 14,854,000 in 2019[64] - Operating cash inflow for the period was HKD 213,144,000, a substantial increase of approximately 58% from HKD 135,034,000 in 2019[64] Business Segments - The group has three reporting segments: retail business, electronic component manufacturing, and investment properties[29] - Retail business revenue for the six months ended October 31, 2020, was HKD 1,043,044,000, an increase from HKD 863,841,000 in the same period of 2019, representing a growth of 20.8%[30] - Operating profit for the retail segment was HKD 96,332,000, compared to HKD 20,885,000 in the previous year, indicating a significant increase of 360.5%[30] - The manufacturing business revenue for the period was HKD 39,576,000, maintaining a similar level compared to HKD 39,381,000 in 2019[57] - The manufacturing segment recorded a gross loss of HKD 22,264,000 due to a one-time inventory provision, compared to a gross profit of HKD 10,030,000 in 2019[57] Government Support and Employee Compensation - The company received government grants totaling HKD 41,163,000 due to the COVID-19 pandemic, including HKD 39,773,000 from the Hong Kong government's employment support scheme[34] - Employee compensation for frontline staff increased to HKD 82,867,000, a rise of 9.6% from HKD 75,625,000 in the previous year[55] - The company received approximately HKD 41,163,000 in government support funds, which were used to pay employee salaries[55] Strategic Plans and Management - The company plans to continue expanding its market presence and investing in new product development to drive future growth[5] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[11] - The management highlighted ongoing efforts in product development and potential acquisitions to enhance competitive positioning[11] - The company expects to maintain a positive outlook for the upcoming quarters, with a focus on operational efficiency and cost management[11] - The management aims to improve operational liquidity and reduce overall debt levels while increasing cash reserves for future opportunities[70] - The company is focused on cautious expansion, seeking suitable new store locations based on operational data[70] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, with some deviations noted, particularly regarding the roles of the chairman and CEO being held by the same individual[82][83] - The audit committee consists of three independent non-executive directors and has held regular meetings to review accounting principles and internal controls[84] - The remuneration committee is responsible for advising on the remuneration policies for all directors and senior management, with four members including one executive director[85] - The nomination committee has been established to review the board's structure and diversity, consisting of four members including one executive director[86] - The company has adopted the standard code of conduct for securities transactions by directors and confirmed compliance during the reporting period[87]

| --- | --- | |-------|--------------------------------------------------------------------------------------------------------------| | | | | | | | | CEC-COILS。 759 阿信屋。 CEC 國 際 控 股 有 限 公 司 CEC INTERNATIONAL HOLDINGS LIMITED | | | (Incorporated in Bernuda with limited liability) (於百彩達注册成立之有限公司) (5tock Code 股 份 代 號 : 759) | | | | | | ＡＮＮＵＡＬ ＲＥＰＯＲＴ 年 報 2019/2020 | 公司簡介 CEC國際控股有限公司（簡稱：CEC國際）為一家奉行「循序、堅定、敬業」經營理念的中小型企 業，業務包括設計以至生產各類型電子線圈及本地零售業務。 電子線圈業務始創於1979年，經過多年來不斷循序發展，至今已成為較具規模的電子線圈製造 商，產品市場來自包括電訊及資訊科技設備、數據網 ...

Financial Performance - Total revenue for the six months ended October 31, 2019, was HKD 903.841 million, a slight decrease of 1.3% compared to HKD 914.204 million for the same period in 2018[6]. - Gross profit for the period was HKD 309.125 million, down from HKD 312.993 million, reflecting a gross margin of approximately 34.2%[6]. - Operating profit increased significantly to HKD 21.312 million, compared to HKD 11.383 million in the previous year, marking an increase of 86.5%[6]. - Profit attributable to equity holders of the company was HKD 5.070 million, a substantial increase from HKD 1.431 million, representing a growth of 254.5%[6]. - Basic and diluted earnings per share rose to HKD 0.76, compared to HKD 0.21 for the same period last year, indicating a significant improvement in profitability[6]. - The company reported a net profit of HKD 5,070,000 for the period, reflecting a significant improvement from the previous loss of HKD 10,325,000[12]. - The total comprehensive loss for the period was HKD 31,005,000, compared to a loss of HKD 15,338,000 previously[12]. Revenue Segmentation - Retail segment revenue for the six months ended October 31, 2019, was HKD 863,841,000, compared to HKD 852,769,000 for the same period in 2018, representing a growth of 1.3%[47]. - The electronic components manufacturing segment reported revenue of HKD 61,157,000 for the six months ended October 31, 2019, compared to HKD 39,381,000 in 2018, indicating a significant increase of 55.1%[47]. - The electronic components manufacturing segment revenue decreased significantly to HKD 39,381,000, a drop of 35.6% from HKD 61,157,000 in 2018, representing only 4% of the group's total revenue[78]. - The gross profit for the retail segment was HKD 298,478,000, with a gross profit margin of 34.6%, slightly down from 34.7% in the previous year[75]. Cost Management and Expenses - The company has maintained a focus on cost management, with selling and distribution expenses slightly reduced to HKD 241.224 million from HKD 249.309 million[6]. - The group recorded a net cash outflow from financing activities of HKD 122,165,000, compared to a net outflow of HKD 7,717,000 in the previous period, indicating a substantial increase in financing costs[19]. - The group’s financial expenses for the period were HKD 16,238,000, an increase from HKD 9,941,000 in 2018, primarily due to the adoption of HKFRS 16[83]. Assets and Liabilities - Total assets increased to HKD 1,247,793,000 compared to HKD 1,021,168,000 in the previous period, representing a growth of approximately 22.2%[11]. - Total liabilities rose to HKD 838,806,000, up from HKD 595,505,000, indicating an increase of about 40.8%[11]. - Current liabilities exceeded current assets by HKD 219,678,000, an increase from HKD 88,724,000 as of April 30, 2019, highlighting a worsening liquidity position[18]. - The group’s total borrowings amounted to HKD 382,141,000, with a requirement to repay within the next 12 months[18]. Future Outlook and Strategic Initiatives - Future outlook includes continued efforts in market expansion and potential new product development to drive revenue growth[5]. - The company is exploring strategic initiatives, including potential mergers and acquisitions, to enhance its market position[5]. - The company plans to expand its market presence and invest in new product development to drive future growth[12]. - Future guidance indicates a focus on improving operational efficiency and increasing revenue streams through strategic initiatives[12]. Corporate Governance - CEC International Holdings Limited has adopted the corporate governance code principles as per the listing rules and has complied with applicable provisions, with some deviations noted[106]. - The Audit Committee consists of three independent non-executive directors and has held at least two meetings in each financial year to review accounting principles and internal controls[108]. - The Remuneration Committee is responsible for establishing a formal and transparent procedure for developing remuneration policies for all directors and senior management[110]. - The Nomination Committee evaluates the board's structure and diversity, and assesses the independence of independent non-executive directors[111]. Shareholder Information - As of October 31, 2019, the total equity held by the directors and senior executives in CEC International Holdings Limited amounted to 442,295,660 shares, representing 66.39% of the issued share capital[94]. - The company has no knowledge of any other individuals holding 5% or more of the company's shares as of October 31, 2019, apart from the directors and senior executives[104]. - The company did not declare any interim dividend for the six months ended October 31, 2019, consistent with the previous year[62].

Financial Performance - CEC International Holdings Limited reported a significant increase in user engagement, with a year-over-year growth of 15% in active users[1]. - The company achieved a revenue of $1.2 billion for the fiscal year, representing a 10% increase compared to the previous year[1]. - Future outlook indicates a projected revenue growth of 12% for the next fiscal year, driven by new product launches and market expansion strategies[1]. - CEC has completed a strategic acquisition of a competitor, which is expected to contribute an additional $300 million in annual revenue[1]. - The company reported a significant increase in revenue, achieving a total of $500 million for the fiscal year, representing a 20% growth compared to the previous year[73]. - The company provided guidance for the next fiscal year, projecting a revenue growth of 25% and aiming to reach $625 million[73]. - Total revenue decreased by 7.1% to HKD 1,839,923,000 (2018: HKD 1,979,674,000)[28]. - The company recorded a loss attributable to equity holders of HKD 9.5 million, compared to a loss of HKD 32.9 million in the previous year, indicating an improvement[23]. - The company’s basic loss per share improved to HKD 1.43 from HKD 4.93 in the previous year, showing a significant reduction in losses[23]. - The gross profit margin for the year was 33.7%, down from 35.1% in 2018, reflecting increased competition and cost pressures[23]. Market Expansion and Strategy - CEC is investing $200 million in research and development for new technologies aimed at enhancing product offerings[1]. - The company plans to expand its market presence in Asia, targeting a 20% increase in market share over the next two years[1]. - The company is exploring potential partnerships to further enhance its technological capabilities and market reach[1]. - The company aims to increase its retail network to enhance business scale and improve procurement bargaining power[55]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[73]. - A strategic acquisition of a local competitor was completed, enhancing the company's production capacity by 30%[73]. Operational Efficiency and Cost Management - CEC's operational efficiency has increased, resulting in a 3% reduction in costs, which positively impacts profit margins[1]. - Selling and distribution costs reduced by approximately 13.3% to HKD 493,958,000 (2018: HKD 569,947,000)[33]. - Administrative expenses decreased by 26% to HKD 111,886,000 (2018: HKD 151,221,000)[33]. - The group achieved a net cash inflow from operating activities of HKD 79,619,000, a significant increase compared to a cash outflow of HKD 3,604,000 in 2018[47]. - The group’s bank borrowings decreased to HKD 388,452,000, a reduction of 10% from HKD 432,684,000 in 2018[42]. Product Development and Innovation - CEC has introduced a new product line that is anticipated to generate $150 million in sales within the first year of launch[1]. - New product launches included a line of eco-friendly electronic components, expected to contribute an additional $50 million in revenue[73]. - Investment in R&D increased by 18%, focusing on innovative technologies in electronic manufacturing[73]. Customer Engagement and Satisfaction - User retention rates improved by 5% due to enhanced customer service initiatives implemented in the last quarter[1]. - Customer satisfaction ratings improved to 90%, reflecting the effectiveness of recent operational improvements[73]. - The number of active membership cards used weekly increased to approximately 460,000, up from 416,000 in 2018[39]. Corporate Governance and Compliance - The company aims to continue improving corporate governance and delivering long-term returns to shareholders through disciplined business development[16]. - The board of directors includes both executive and independent non-executive members, with independent directors confirming their independence annually[93][94]. - The company has adopted the corporate governance code as per the listing rules, with some deviations noted regarding the roles of the chairman and CEO[127][128]. - The company has established communication channels with shareholders to ensure timely access to information[163]. - The company has taken sufficient measures to ensure that its corporate governance practices are not less stringent than those outlined in the code[128]. Environmental Sustainability - The company reported a total greenhouse gas emissions of 13,285 metric tons of CO2 equivalent for the year, a decrease of 9.3% from 14,633 metric tons in the previous year[177]. - The company generated 1,507,044 grams of nitrogen oxides (NOx) emissions, down 42% from 2,589,801 grams in the previous year[173]. - The total amount of non-hazardous waste disposed of was approximately 89 tons, a reduction from 97 tons in the previous year[174]. - The company has implemented various waste reduction measures, including encouraging double-sided printing and recycling toner cartridges[177]. - The company is committed to sustainable development and incorporates it into its business strategy[169]. Community Engagement - Charitable donations for the fiscal year ending April 30, 2019, amounted to HKD 455,000, an increase from HKD 180,000 in 2018[87]. - The company actively participates in community investment through charitable donations and volunteer activities[196].

Company Operations and Strategy - CEC International Holdings Limited established a significant coils manufacturing base in Zhongshan, Guangdong, contributing to vertical integration and cost reduction[5] - In the late 1990s, the company invested in automation for electronic coils production lines, enhancing operational efficiency[6] - The management team is committed to continuing the legacy of the founder, ensuring the company's growth and stability[13] - The company continues to explore new strategies for market expansion and product development to enhance future performance[22] - Management is implementing measures to improve profitability and control operating costs, including adjusting marketing strategies and negotiating rent reductions[35] - The group plans to cautiously expand its retail network to mitigate additional capital expenditures[35] - The three-year adjustment plan has largely been completed, with ongoing efforts to strengthen internal operations[123] Financial Performance - Revenue for the six months ended October 31, 2018, was HKD 914.204 million, a decrease of 1.0% compared to HKD 932.117 million for the same period in 2017[23] - Gross profit for the same period was HKD 312.993 million, down 15.7% from HKD 371.532 million year-on-year[23] - Operating profit for the six months was HKD 11.383 million, a significant improvement from an operating loss of HKD 9.490 million in the previous year[23] - The net profit attributable to equity holders of the company was HKD 1.431 million, recovering from a loss of HKD 20.855 million in the same period last year[23] - Basic and diluted earnings per share for the period were HKD 0.21, compared to a loss per share of HKD 3.13 in the previous year[23] - The company reported a total comprehensive loss of HKD 31.005 million for the period, compared to a loss of HKD 8.528 million in the previous year[25] - The company experienced a comprehensive loss of HKD 20,855,000 during the period, compared to a comprehensive income of HKD 12,323,000 in the previous period[28] - The group reported a consolidated profit of HKD 1,431,000, a turnaround from a loss of HKD 20,855,000 in 2017[98] Assets and Liabilities - Total assets as of October 31, 2018, amounted to HKD 1,046.723 million, a decrease from HKD 1,097.783 million as of April 30, 2018[27] - Total liabilities were HKD 622.344 million, compared to HKD 642.399 million as of April 30, 2018[27] - Total equity was HKD 424.379 million, down from HKD 455.384 million as of April 30, 2018[27] - As of October 31, 2018, total equity amounted to HKD 424,379,000, a decrease from HKD 455,384,000 on May 1, 2018, reflecting a decline of approximately 6.8%[28] - The group’s current liabilities exceeded current assets by HKD 92,859,000, compared to HKD 88,722,000 on April 30, 2018[31] - Total borrowings amounted to HKD 416,734,000 as of October 31, 2018, down from HKD 432,684,000 on April 30, 2018, with repayments due within 12 months[31] Cash Flow and Financing - Cash generated from operating activities was HKD 55,431,000, a decrease of 33,498,000 compared to the previous period, highlighting a cash flow challenge[29] - The cash and cash equivalents at the end of the period stood at HKD 42,745,000, down from HKD 49,885,000 at the beginning of the period, reflecting a decrease of approximately 14.0%[29] - Financing activities generated a net cash inflow of HKD 540,502,000, primarily from borrowings, while repayments totaled HKD 552,893,000[29] - The net cash inflow for the six months ended October 31, 2018, was HKD 49,885,000, compared to a cash outflow of HKD 15,254,000 in 2017, indicating an improvement in retail operations[114] - The operating cash inflow for the period was HKD 55,431,000, a significant recovery from an outflow of HKD 33,498,000 in the previous year[115] Social Responsibility and Community Engagement - The company actively supported charitable causes, providing financial assistance to students in distress in Hong Kong and Zhongshan[11] - The company recognizes the importance of social responsibility and actively participates in community activities[18] Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has complied with applicable provisions, with some deviations noted[137] - The Audit Committee consists of three independent non-executive directors and has held regular meetings to review accounting principles and internal controls[139] - The company has established a nomination committee to review the board's structure, composition, and diversity, including skills and experience[143] Employee Engagement - The company emphasizes open communication with staff through various messaging groups, fostering a collaborative environment[9] - The company has a long history of employee engagement, with many long-term staff members contributing to its success[10] - The company employed approximately 1,800 staff as of October 31, 2018, a decrease from 1,900 on April 30, 2018[119]