Financial Performance - The Group's revenue for 2018 was approximately HK$252,363,000, an increase of about HK$32,847,000 compared to 2017[18]. - The loss attributable to shareholders for 2018 was approximately HK$34,901,000, representing an increase of approximately HK$25,788,000 from 2017[18]. - The basic loss per share for 2018 was HK$0.12, compared to HK$0.03 in 2017[5]. - The group's total revenue for the fiscal year ended 31 December 2018 was approximately HK$252,363,000, representing a 15.0% increase from 2017[72]. - Gross profit margin increased from 9.8% in 2017 to 11.0% in 2018 due to higher production volume of household products and the high profit margin from the money lending business[73]. - Employee remuneration, including Directors' emoluments, increased by approximately HK$23,239,000 to approximately HK$69,437,000 for the fiscal year of 2018[96]. - The Group's gearing ratio decreased from 19.6% in 2017 to 18.2% in 2018, attributed to a reduction in bank borrowings in the PRC[85]. Business Segments - Revenue from the household products business was approximately HK$238,848,000 in 2018, reflecting a 13.8% increase from approximately HK$209,877,000 in 2017[25]. - The segmental loss for the household products business was approximately HK$947,000 in 2018, a significant improvement from a loss of approximately HK$7,921,000 in 2017[25]. - Revenue from the mobile game business was approximately HK$5,081,000 during the reporting period, with a segment loss of approximately HK$27,906,000, compared to a loss of approximately HK$5,835,000 in 2017[28]. - The money lending business generated revenue of approximately HK$7,105,000 in 2018, down from HK$8,745,000 in 2017, with a segment profit of approximately HK$2,393,000 compared to HK$5,683,000 in 2017[34]. - Revenue from the property investment business was approximately HK$1,329,000 in 2018, an increase from approximately HK$895,000 in 2017, with a segment profit of approximately HK$3,521,000 compared to HK$1,324,000 in 2017[35]. Investments and Acquisitions - The Group completed the acquisition of Cubinet Interactive in July 2018 to expand its mobile game business in Southeast Asia[27]. - The Group invested approximately HK$9,500,000 in capital expenditure to enhance its environmental, social, and governance (ESG) standards, with an additional estimated investment of HK$6,000,000 required[52]. Market Trends and Strategy - The global games market size increased by 13.3% to US$137.9 billion in 2018, with the Asia Pacific market growing by 16.8% and representing 52% of the global market[56]. - Mobile gaming generated approximately US$70.2 billion in 2018, accounting for 51% of all global game revenues, with US$56.4 billion from smartphone gaming and US$13.9 billion from tablet games[56]. - The Group plans to focus on the mobile game business as a key growth driver, with intentions to publish more new titles in 2019 and invest in research and development[44]. - The Group believes that the mobile game business will become the major contributor to its financial performance in the near future[121]. - The mobile game industry is rapidly growing, with the Group having established a strong foundation for accelerated growth since entering the segment in the second half of 2017[112]. Risks and Challenges - The household products business is heavily concentrated, with the largest customer contributing over 95% of the segment's revenue, posing a risk to sales performance[104]. - The mobile games industry is highly competitive, requiring significant marketing campaigns and financial resources for commercial success[117]. - External interruptions, such as hacking, could adversely affect the Group's sales performance and financial position if not addressed[118]. - Changes in legal and regulatory requirements across different countries may disrupt the Group's financial performance and operational model[119]. Operational Insights - The Group has established a strong foundation for its mobile business, aligning with its strategy to broaden its income base[19]. - The Group has not entered into any derivative contracts to hedge against foreign exchange risks, which may affect performance due to fluctuations in RMB[95]. - The implementation of appropriate internal control measures has been established to monitor business performance[120]. - The Group aims to expand its network in the mobile game industry through partnerships with studios and investors[120]. Customer and Supplier Concentration - The largest customer accounted for 93.17% of the group's total sales during the financial year[186]. - The aggregate sales from the five largest customers represented 95.03% of the group's total sales[186]. - The largest supplier contributed 21.91% to the group's total purchases[186]. - The aggregate purchases from the five largest suppliers accounted for 56.23% of the group's total purchases[186].