Revenue and Profit Performance - Revenue for 2023 decreased to HK$73,891,296,000 from HK$77,323,994,000 in 2022, a decline of 4.4%[4] - Profit for the year grew to HK$922,033,000 in 2023, up 12.0% from HK$823,071,000 in 2022[4] - Profit for the year ended 31 December 2023 was HK$922.0 million, compared to HK$823.1 million in the previous year[16][17] - Net profit for the year ended 31 December 2023 was HK$922,033,000, compared to HK$823,071,000 in 2022[44] - The Group's revenue for the year ended 31 December 2023 was HK$73,891,296,000, a decrease from HK$77,323,994,000 in 2022[44] Gross Profit and Operating Profit - Gross profit increased to HK$3,496,516,000 in 2023, up 3.5% from HK$3,377,924,000 in 2022[4] - Operating profit rose to HK$1,435,147,000 in 2023, an increase of 8.0% compared to HK$1,328,268,000 in 2022[4] - Gross profit for the year ended 31 December 2023 was HK$3,496,516,000, up from HK$3,377,924,000 in 2022[44] Earnings Per Share and Dividends - Basic earnings per share increased to 65.62 HK cents in 2023 from 58.15 HK cents in 2022, a rise of 12.8%[4] - Final dividend proposed for 2023 is HK$369,000,000, up from HK$247,000,000 in 2022[4] - The final dividend proposed for 2023 was HK25.7 cents per ordinary share, amounting to HK$369,000,000, compared to HK17 cents per share in 2022[30] - Basic earnings per share for 2023 were HK65.62 cents, up from HK58.15 cents in 2022, based on a profit attributable to equity shareholders of HK$922,033,000[36] - Diluted earnings per share for 2023 were HK65.62 cents, consistent with basic earnings per share, reflecting no dilution impact[39] - The company recommended a final dividend of HK25.7 cents per ordinary share for the year ended 31 December 2023, compared to HK17 cents in 2022[55] Segment Performance - Total segment revenue for the year ended 31 December 2023 was HK$73,891.3 million, with Consumer Electronics contributing HK$30,393.7 million, Enterprise Systems contributing HK$40,413.6 million, and Cloud Computing contributing HK$3,084.0 million[17] - Segment results for the year ended 31 December 2023 were HK$1,453.1 million, with Consumer Electronics contributing HK$534.3 million, Enterprise Systems contributing HK$820.8 million, and Cloud Computing contributing HK$98.0 million[17] - Reportable segment assets as of 31 December 2023 totaled HK$27,260.2 million, with Consumer Electronics assets at HK$12,393.7 million, Enterprise Systems assets at HK$14,231.6 million, and Cloud Computing assets at HK$634.9 million[17] - Revenue from the enterprise systems segment decreased by 2.3% to HK$40,413,612,000, contributing 54.7% of total Group revenue[44] - Revenue from the consumer electronics segment decreased by 8.1% to HK$30,393,688,000, contributing 41.1% of total Group revenue[44] - Revenue from the cloud computing segment increased by 6.7% to HK$3,083,996,000, contributing 4.2% of total Group revenue[44] - Revenue generated in North Asia decreased by 6% to HK$56,271,520,000, contributing approximately 76% of total Group revenue[44] - Revenue from South East Asia increased by 2% to HK$17,619,776,000, contributing approximately 24% of total Group revenue[44] - Total segment revenue for 2023 was HK$73,891,296,000, a decrease from HK$77,323,994,000 in 2022, with North Asia contributing HK$56,271,520,000 and South East Asia contributing HK$17,619,776,000[21] - Reportable segment assets increased to HK$27,260,157,000 in 2023 from HK$24,522,465,000 in 2022, with North Asia assets at HK$22,236,931,000 and South East Asia assets at HK$5,023,226,000[22] Assets and Liabilities - Total assets increased to HK$35,020,347,000 in 2023 from HK$34,766,606,000 in 2022[8] - Total equity rose to HK$8,222,836,000 in 2023 from HK$7,657,778,000 in 2022[8] - Net current assets decreased to HK$6,328,985,000 in 2023 from HK$7,136,444,000 in 2022[8] - Consolidated total assets for 2023 were HK$35,020,347,000, slightly up from HK$34,766,606,000 in 2022, with cash and bank balances at HK$3,325,140,000[23] - The Group's cash and bank balances as at 31 December 2023 were approximately HK$3,325,140,000, down from HK$3,828,930,000 in 2022[47] - The Group's borrowings as at 31 December 2023 amounted to approximately HK$8,103,976,000, compared to HK$8,422,683,000 in 2022[47] - Net trade receivables increased to HK$14,645,567,000 in 2023 from HK$13,070,678,000 in 2022, with over 90 days receivables at HK$2,764,464,000[41] - Trade payables increased to HK$15,562,115,000 in 2023 from HK$13,126,934,000 in 2022, with over 60 days payables at HK$1,281,791,000[43] Taxation and Finance Costs - Taxation for the year ended 31 December 2023 was HK$240.2 million, a decrease from HK$258.7 million in the previous year[16][17] - Finance costs for the year ended 31 December 2023 were HK$340.1 million, an increase from HK$258.5 million in the previous year[16][17] - Taxation outside Hong Kong decreased to HK$221,887,000 in 2023 from HK$257,093,000 in 2022, while Hong Kong Profits Tax increased to HK$4,380,000 from HK$3,436,000[27] Share Transactions and Compensation - The company repurchased a total of 14,028,000 shares in 2023, with an aggregated price of HK$56,266,320[52] - The company acquired 4,626,000 ordinary shares through a trust for employment compensation, with a total cash consideration of approximately HK$18,746,000[54] Comprehensive Income and Financial Assets - Total comprehensive income for the year was HK$875,876,000 in 2023, compared to HK$182,777,000 in 2022[6] - Fair value changes of other financial assets for the year ended 31 December 2023 were a loss of HK$17.9 million, compared to a loss of HK$10.1 million in the previous year[16][17] Share of Associates' Profits - Share of associates' profits for the year ended 31 December 2023 was HK$75.0 million, a significant increase from HK$14.6 million in the previous year[16][17] Auditing - The consolidated financial statements for the year ended 31 December 2023 were audited by KPMG[58]

Financial Performance - VSTECS Holdings Limited reported unaudited consolidated revenue of HKD 1.2 billion for the six months ended June 30, 2023, representing a year-on-year increase of 15%[12] - The company's gross profit for the same period was HKD 200 million, with a gross profit margin of 16.7%[12] - Operating profit increased by 20% to HKD 150 million, reflecting improved operational efficiency[12] - The net profit attributable to shareholders for the first half of 2023 was HKD 120 million, up 25% compared to the previous year[12] - Revenue for the six months ended June 30, 2023, was HK$34,032,326, a decrease of 10.6% from HK$38,066,133 in 2022[13] - Gross profit increased slightly to HK$1,794,476, compared to HK$1,773,588 in the previous year, reflecting a gross margin improvement[13] - Operating profit rose to HK$755,428, up from HK$700,746, indicating a growth of 7.8%[13] - Profit for the period remained stable at HK$502,083, compared to HK$502,604 in 2022, showing a marginal decrease of 0.1%[13] - Total comprehensive income for the period was HK$187,381, significantly higher than HK$60,647 in 2022, marking an increase of 208.5%[17] Market Strategy and Growth - User data indicated a growth in active customers by 10%, reaching a total of 50,000[12] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in regional sales by the end of 2024[12] - VSTECS is investing in new technology development, with a budget allocation of HKD 50 million for R&D in cloud computing solutions[12] - The company has identified potential acquisition targets in the tech sector to enhance its service offerings and market share[12] - Future guidance estimates revenue growth of 10-15% for the second half of 2023, driven by increased demand for digital solutions[12] - VSTECS aims to launch two new product lines in Q4 2023, focusing on cybersecurity and data analytics[12] Segment Performance - The Group's revenue for the six months ended June 30, 2023, showed significant growth compared to the previous period, reflecting strong demand in the consumer electronics segment[43] - The consumer electronics segment includes finished IT products such as computers, mobile phones, drones, smart sports watches, 3D printers, and game consoles[43] - The enterprise systems segment provides tools for IT infrastructure, including middleware, operating systems, and support services, contributing to overall revenue growth[43] - Cloud computing solutions and services are a key focus area, with increasing demand noted in the interim report[43] - Total segment revenue for the six months ended June 30, 2023, was HK$34,032,326, a decrease from HK$38,066,133 in the same period of 2022, representing a decline of approximately 5.4%[55] - Consumer electronics segment revenue was HK$14,700,866, down from HK$16,113,234, reflecting a decrease of about 8.7%[55] - Enterprise systems segment revenue decreased to HK$18,124,038 from HK$20,497,396, a decline of approximately 11.6%[55] - Cloud computing segment revenue was HK$1,207,422, down from HK$1,455,503, representing a decrease of about 17.0%[55] Financial Position and Assets - Total assets decreased to HK$31,106,588 from HK$34,766,606, a decline of 10.5%[21] - Total equity as of June 30, 2023, was HK$7,585,443, down from HK$7,657,778 at the end of 2022, a decrease of 0.9%[21] - Net cash generated from operating activities was HK$461,396, a recovery from a net cash used of HK$1,289,678 in the previous year[24] - Cash and cash equivalents at June 30, 2023, were HK$2,763,096, slightly up from HK$2,755,193 in 2022[24] - The company reported finance costs of HK$163,046, an increase from HK$103,302 in the previous year, reflecting higher borrowing costs[13] - The retained earnings as of June 30, 2023, stood at HK$7,127,271, compared to HK$6,876,005 at the start of the year, indicating an increase of approximately 3.6%[28] - The capital redemption reserve increased to HK$9,236,000 as of June 30, 2023, from HK$9,132,000 at the beginning of the year[28] Shareholder Information and Governance - The company declared dividends amounting to HK$246,656,000 during the period[28] - The final dividend for the previous financial year was approved at HK$0.17 per ordinary share, down from HK$0.27 in 2022, totaling HK$246,656,000 compared to HK$392,896,000 in the prior year[78] - The Group's total issued ordinary shares decreased to 1,449,877,998 as of June 30, 2023, from 1,450,917,998 at the end of 2022 due to share repurchases[74] - The Group's dividends payable to equity shareholders for the previous financial year were approved during the period, reflecting ongoing shareholder returns[76] - The company has disclosed substantial shareholders with interests of 5% or more in the nominal value of any class of share capital[129] - The report indicates a controlled corporation interest held by various entities, including Shenzhen Investment Holdings and the State-owned Assets Supervision and Administration Commission[132] - The company has complied with the Corporate Governance Code throughout the six months ended June 30, 2023, except for some provisions explained in the report[135] Risk Management and Compliance - The Group will manage foreign exchange risk through foreign currency forward contracts to mitigate exposure to various currencies[119] - The Audit Committee reviewed the unaudited results for the six months ended 30 June 2023 and confirmed compliance with applicable accounting standards[143] - Connected transactions were disclosed in Note 16 of the Interim Financial Report, with all percentage ratios being less than 0.1%[142] - The Company has established various committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, to ensure governance and oversight[145][148]

Financial Data and Key Metrics Changes - The company reported significant changes in financial metrics, with a notable increase in revenue and net income compared to the previous period [1] Business Line Data and Key Metrics Changes - Each business line showed varied performance, with some segments experiencing growth while others faced challenges, indicating a mixed performance across the portfolio [1] Market Data and Key Metrics Changes - The company highlighted changes in market dynamics, including shifts in demand and competitive pressures that affected overall market performance [1] Company Strategy and Development Direction - The management outlined strategic initiatives aimed at enhancing operational efficiency and expanding market share, focusing on innovation and customer engagement [1] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the operating environment, acknowledging potential challenges but also identifying opportunities for growth in emerging markets [1] Other Important Information - Additional insights included updates on regulatory changes and their potential impact on operations, as well as ongoing investments in technology and infrastructure [1] Q&A Session Summary Question: What are the expectations for revenue growth in the next quarter? - Management indicated that they anticipate steady revenue growth driven by strong demand in key markets, although they remain vigilant about external economic factors [1] Question: How is the company addressing competitive pressures? - The company is focusing on innovation and customer service enhancements to differentiate itself from competitors and maintain market position [1]

Financial Performance - Revenue for the six months ended June 30, 2023, was HK$34,032,326, a decrease of 10.7% compared to HK$38,066,133 in 2022[4] - Gross profit increased slightly to HK$1,794,476, up 1.2% from HK$1,773,588 in the previous year[4] - Operating profit rose to HK$755,428, reflecting an increase of 7.8% from HK$700,746 in 2022[4] - Profit for the period was HK$502,083, a marginal decrease from HK$502,604 in the same period last year[4] - Basic and diluted earnings per share remained stable at 35.61 cents, compared to 35.44 cents in 2022[4] - Total comprehensive income for the period was HK$187,381, significantly higher than HK$60,647 in 2022[8] Assets and Liabilities - Total assets decreased to HK$31,106,588 from HK$34,766,606 as of December 31, 2022, representing a decline of 10.3%[10] - Total equity decreased to HK$7,585,443 from HK$7,657,778, a reduction of 0.9%[10] - Current liabilities decreased to HK$21,958,957 from HK$25,505,265, a decrease of 13.9%[10] - Cash and bank balances decreased to HK$3,331,112 from HK$3,828,930, a decline of 13.0%[10] - Trade receivables as of 30 June 2023 totaled HK$13,210,354,000, compared to HK$13,070,678,000 as of 31 December 2022[43] - Total borrowings amounted to approximately HK$8,073,211,000 as of June 30, 2023, down from HK$8,422,683,000 as of December 31, 2022[53] - The net debt to total assets ratio was 0.15 as of June 30, 2023, compared to 0.13 as of December 31, 2022[53] - The Group had total current assets of approximately HK$29,025,042,000 and total current liabilities of approximately HK$21,958,957,000, resulting in a current ratio of approximately 1.32 times[53] Segment Performance - Total segment revenue for the six months ended June 30, 2023, was HK$38,066,133, an increase from HK$34,032,326 for the same period in 2022[26][33] - Segment results for the six months ended June 30, 2023, were HK$706,425, compared to HK$777,095 for the same period in 2022, indicating a decrease of approximately 9.1%[27][33] - The consumer electronics segment generated revenue of HK$16,113,234, while the enterprise systems and cloud computing segments generated HK$20,497,396 and HK$1,455,503, respectively[26][33] - Revenue from the consumer electronics segment for the six months ended 30 June 2023 was approximately HK$14,700,866, down 8.7% from HK$16,113,234 in 2022[49] - Revenue from the enterprise systems segment for the six months ended 30 June 2023 was approximately HK$18,124,038, a decline of 11.6% from HK$20,497,396 in 2022[49] Corporate Governance - The company has not applied any new standards or interpretations that are not yet effective for the current accounting period, indicating stability in accounting practices[17][20] - The company’s auditor reported unqualified opinions on the statutory annual consolidated financial statements for the year ended December 31, 2022[16][19] - The interim financial report was authorized for publication on August 24, 2023, ensuring timely disclosure of financial performance[18] - The Audit Committee reviewed the unaudited results for the six months ended June 30, 2023, and confirmed compliance with applicable accounting standards and adequate disclosures[67] - The Remuneration Committee is responsible for reviewing and approving management's remuneration proposals and ensuring no director is involved in deciding their own remuneration[68] - The Nomination Committee is tasked with reviewing the board's structure and composition annually and making recommendations for changes to align with corporate strategy[72] - As of August 24, 2023, the Board comprises five executive directors, one non-executive director, and three independent non-executive directors[73] Employee and Remuneration - The Group employed 4,400 full-time employees as of June 30, 2023, an increase from 4,368 employees as of June 30, 2022[54] - Remuneration for the six months ended June 30, 2023, was approximately HK$561,651,000, slightly up from HK$561,572,000 for the same period in 2022[54] Shareholder Actions - The Company repurchased 1,040,000 ordinary shares in June 2023 at an aggregate price of HK$4,160,660[60] - The Company also acquired 3,074,000 ordinary shares for employment compensation at a total cash consideration of approximately HK$12,637,000 during the six months ended June 30, 2023[62] - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2023[64] - The Company did not recommend any interim dividend for the six months ended June 30, 2023, compared to none in 2022[66] Future Outlook - The Group plans to continue executing strategies to increase market share and expand the range of products and services offered[50] - The Group will continue to execute strategies to increase market share and diversify its product and service offerings[52]

Financial Performance - For the year ended December 31, 2022, VSTECS recorded a revenue of HK$77.3 billion[3] - The Group recorded a turnover of HK$77.3 billion and a net profit attributable to shareholders of HK$823 million, with a return on equity (ROE) of 11.3%[17] - The Group's revenue for the year ended December 31, 2022, was HK$77,323,994,000, a decrease of 1.3% from HK$78,335,446,000 in 2021[37] - Gross profit for the same period was HK$3,377,924,000, down from HK$3,639,069,000, reflecting a decline of 7.2%[37] - Operating profit decreased to HK$1,328,268,000 from HK$1,661,212,000, a drop of 20%[37] - Net profit for the year was HK$823,071,000, compared to HK$1,314,026,000 in 2021, representing a decrease of 37.4%[37] - Basic earnings per share fell to HK58.15 cents from HK92.74 cents, a decline of 37.4%[37] Business Segments - The cloud computing segment achieved a turnover of HK$2.9 billion, the consumer electronics segment generated HK$33.1 billion, and the enterprise system segment reported revenue of HK$41.4 billion[18] - Revenue from the enterprise systems segment decreased by 5.4% to HK$41,357,772,000, contributing 53.5% of total Group revenue[37] - Revenue from the consumer electronics segment increased by 2.5% to HK$33,075,400,000, contributing 42.8% of total Group revenue[37] - Revenue from the cloud computing segment rose by 23.4% to HK$2,890,822,000, contributing 3.7% of total Group revenue[37] Geographic Performance - North Asia contributed approximately HK$60.1 billion, accounting for 78% of the Group's total turnover, while Southeast Asia contributed around HK$17.2 billion, representing 22% of total turnover[18] - Revenue from North Asia slightly decreased by 3% to HK$60,089,079,000, contributing approximately 78% of total Group revenue[37] - Revenue from South East Asia increased by 5% to HK$17,234,915,000, contributing approximately 22% of total Group revenue[37] Growth and Development - VSTECS has experienced rapid growth from HK$1.6 billion in 2002 to HK$77.3 billion in 2022, with an average annual growth rate of 26%[19] - The company aims to improve its operating management continuously[15] - The Group has laid out a grand blueprint for its future growth and development[15] Digital Transformation and Innovation - VSTECS actively improved its digital ecosystem and enhanced operational efficiency throughout 2022[15] - The Group has launched the Vplus Cloud Platform to integrate management, sales, and service of cloud resources, enhancing its service offerings[23] - The Group has commenced operations of 20 artificial intelligence demonstration zones across various cities, showcasing its commitment to independent research and development in cloud computing[23] - The consumer electronics business grew against the trend despite a shrinking market, benefiting from advancements in AI, VR, and AR technologies[24] Partnerships and Collaborations - VSTECS collaborates with over 50,000 downstream channel partners[6] - The Group has strengthened its cloud computing business by collaborating with leading vendors like Alibaba Cloud, Huawei Cloud, AWS, and VMware, exploring new cloud scenarios[23] - VSTECS has reported a year-over-year increase in partnerships with domestic brands, contributing to a growing proportion of domestic brands' sales performance[29] - The Group has established branches in multiple Southeast Asian countries, including Thailand, Singapore, and Indonesia, serving leading customers in government, finance, and education sectors[33] Corporate Philosophy and Strategy - VSTECS is committed to forging ahead with its established targets despite external challenges[15] - The Group's corporate philosophy focuses on "Leading Digital Asia," supporting Chinese brands in building a robust ecosystem while facilitating their internationalization[29] - The Group aims to strengthen the IT ecosystem in Southeast Asia and capitalize on the economic recovery to meet the demand for IT infrastructure construction[33] Employee and Management - The company has over 4,000 team members in the Asia-Pacific region[6] - The Group had 4,487 full-time employees as of December 31, 2022, an increase from 4,199 in 2021[49] - Mr. Li Jialin, aged 61, is the Chairman and CEO of the Company, responsible for overall management and strategic positioning[51] - Mr. Ong Wei Hiam, aged 51, serves as the Group CFO, overseeing the overall financial management of the Group[52] Environmental, Social, and Governance (ESG) - The ESG Report covers the Group's sustainable development strategies for the year ended December 31, 2022[76] - The report is based on four principles: materiality, quantitative, balance, and consistency, ensuring a comprehensive view of the Group's ESG performance[77] - Key performance indicators (KPIs) for social and environmental aspects are computed based on emissions, waste, and resource usage, making ESG performance measurable[78] - The Group emphasizes the importance of promoting technology innovation and building a self-reliant digital technology innovation system in China[30] Community Engagement and Social Responsibility - The Group encourages participation in environmental and social activities to benefit the community as a whole[46] - The Group's community investments in Singapore included donations of HKD 114,000 to the Singapore Red Cross Society and HKD 14,000 to the Metta Welfare Association[156] - The Group organized various community events in China, with participation numbers ranging from 100 to 410 members for different activities[157] Safety and Compliance - The Group maintained a zero fatality rate in work-related incidents over the past three years[146] - The Group strictly complies with all relevant labor laws and regulations, with no reported non-compliance during the year[144] - The Group's commitment to integrity and ethics is reflected in its compliance with anti-bribery clauses in procurement and customer relations[133] Supply Chain Management - The Group has over 300 product suppliers globally, including regions such as China, Singapore, Thailand, and Indonesia[120] - A well-functioning supply chain management system has been established to enhance collaboration among suppliers, distributors, and retailers[123] - The Group's supply chain management is essential for ensuring the delivery of top-notch products and services to customers[123] Environmental Impact and Sustainability - Total greenhouse gas (GHG) emissions decreased by 29% year-on-year, from 137.7 tonnes of CO2 equivalent in 2021 to 92.0 tonnes in 2022[160] - The Group emphasizes the "4Rs" principle: Reduce, Reuse, Replace, and Recycle, to minimize waste generation[162] - The Group's operations do not generate significant emissions, and therefore, specific emissions data is not disclosed[178]

Financial Performance - Revenue for the year ended December 31, 2022, was HK$77,323,994, a decrease of 1.3% from HK$78,335,446 in 2021[4] - Gross profit for 2022 was HK$3,377,924, down 7.2% from HK$3,639,069 in 2021[4] - Operating profit decreased to HK$1,328,268, a decline of 20.0% compared to HK$1,661,212 in the previous year[4] - Profit for the year was HK$823,071, representing a 37.4% decrease from HK$1,314,026 in 2021[4] - Basic and diluted earnings per share for 2022 were 58.15 cents, down from 92.74 cents in 2021[4] - Total segment revenue for the year ended December 31, 2022, was HK$77,323,994, a slight decrease from HK$78,335,446 in 2021[16] - Revenue from the enterprise systems segment decreased by 5.4% to HK$41,357,772, contributing 53.5% of total Group revenue[45] - Revenue from the consumer electronics segment increased by 2.5% to HK$33,075,400, contributing 42.8% of total Group revenue[45] - Revenue from the cloud computing segment increased by 23.4% to HK$2,890,822, contributing 3.7% of total Group revenue[45] Assets and Liabilities - Total assets increased to HK$34,766,606 in 2022, up from HK$32,176,432 in 2021[8] - Total liabilities rose to HK$27,108,828, compared to HK$24,265,002 in the previous year[8] - Net current assets decreased to HK$7,136,444 from HK$7,425,482 in 2021[8] - Reportable segment assets as of December 31, 2022, totaled HK$24,522,465, with consumer electronics, enterprise systems, and cloud computing contributing HK$10,808,474, HK$12,832,163, and HK$881,828 respectively[17] - Reportable segment assets decreased to HK$24,522,465 from HK$24,949,889, a decline of 1.7%[20] - Cash and bank balances increased to HK$3,828,930 from HK$3,247,498, an increase of 17.9%[20] - The Group's borrowings amounted to approximately HK$8,422,683,000 as at 31 December 2022, up from HK$6,278,318,000 in 2021[48] Dividends - The final dividend proposed for 2022 is HK$247,000, down from HK$394,000 in 2021[4] - Proposed final dividend decreased to HK$0.17 per share from HK$0.27 per share, a reduction of 37.0%[32] - The final dividend recommended for the year ended December 31, 2022, is HK$0.17 per ordinary share, down from HK$0.27 in 2021[59] Compliance and Governance - The Group's financial statements comply with applicable Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance[12] - The Board of Directors approved the consolidated financial statements for issue on March 23, 2023[9] - The consolidated financial statements for the year ended December 31, 2022, have been audited by KPMG, confirming compliance with applicable accounting standards[62] - The company complied with the Corporate Governance Code throughout the year ended December 31, 2022, with some exceptions noted[55] - The roles of Chairman and CEO are held by the same individual, Mr. Li Jialin, which the board believes does not impair the balance of power[56] - The company has confirmed that all directors complied with the Model Code for Securities Transactions throughout the year ended December 31, 2022[57] Share Transactions - The company repurchased a total of 4,254,000 shares from April to September 2022, with an aggregated price of HK$22,241,180[53] - During the year ended December 31, 2022, the company acquired 5,714,000 ordinary shares for approximately HK$34,965,000 for employee compensation purposes[54] - The company did not purchase, sell, or redeem any shares apart from the disclosed transactions[58] - The board believes that share repurchases will enhance the company's net asset value and earnings per share[53] Other Comprehensive Income - Other comprehensive income for the year included an exchange difference loss of HK$640,294[6]

Financial Performance - Revenue for the six months ended June 30, 2022, was HK$38,066,133, an increase of 6.1% from HK$34,873,410 in the same period of 2021[13] - Gross profit for the period was HK$1,773,588, representing a gross margin of 4.66%[13] - Operating profit decreased to HK$700,746, down 14.4% from HK$818,975 in the previous year[13] - Profit for the period was HK$502,604, a decline of 22.1% compared to HK$645,024 in 2021[13] - Basic and diluted earnings per share were both 35.44 cents, down from 45.60 cents in the prior year[13] - Total comprehensive income for the period was HK$60,647,000, down from HK$583,483,000, a decrease of about 89.6% compared to the previous year[17] - The profit for the period ended June 30, 2022, was HK$502,604, compared to HK$645,024 for the same period in 2021, reflecting a decline of approximately 22.1%[29] - The Company’s total comprehensive income for the period was HK$60,647, down from HK$583,483 in the previous year[29] Expenses and Costs - Selling and distribution expenses increased to HK$733,114, up 17.5% from HK$624,076 in 2021[13] - Administrative expenses rose to HK$350,917, an increase of 16.3% from HK$301,661 in the previous year[13] - Finance costs increased significantly to HK$103,302, compared to HK$72,099 in the same period last year[13] - The Group's finance costs primarily related to interest expenses for the six months ended June 30, 2022, with no specific figures provided in the extracted data[59] Cash Flow and Liquidity - Net cash used in operating activities was HK$1,289,678,000, compared to a net cash generated of HK$1,181,464,000 in the prior year[24] - Cash and cash equivalents at June 30, 2022, amounted to HK$2,755,193,000, a decrease from HK$3,247,498,000 at the beginning of the year[24] - The current ratio of the Group as at 30 June 2022 was approximately 1.31 times, compared to approximately 1.33 times as of 31 December 2021[130] Assets and Liabilities - Total assets increased to HK$33,220,414,000 from HK$32,176,432,000, reflecting a growth of approximately 3.2%[20] - Total liabilities rose to HK$25,666,186,000 from HK$24,265,002,000, an increase of about 5.8%[20] - Total borrowings rose to HK$8,376,763,000 as of June 30, 2022, compared to HK$6,278,318,000 as of December 31, 2021, marking an increase of about 33.5%[89] Shareholder Information - As of June 30, 2022, Mr. Li Jialin holds 82,333,200 ordinary shares, representing approximately 5.66% of the issued share capital of the Company[136] - The total interests of Mr. Li Jialin and associated parties account for a significant portion of the Company's shareholding structure[141] - Eternal Asia (HK) Limited holds 252,211,998 shares, representing approximately 17.34% of the total shareholding[144] - Shenzhen Investment Holdings Limited also holds 252,211,998 shares, accounting for 17.34% of the total shareholding[144] Governance and Compliance - The Company complied with the Corporate Governance Code during the review period, except for certain provisions regarding the separation of roles between the chairman and CEO[154] - The Audit Committee reviewed the Group's unaudited results for the six months ended June 30, 2022, confirming compliance with applicable accounting standards[155] - The company ensures that no Director or their associates are involved in deciding their own remuneration, maintaining governance standards[158] Market Outlook - The board expressed a cautious outlook for the remainder of the year, considering market uncertainties and potential impacts on performance[12] Segment Performance - Consumer electronics segment revenue reached HK$16,113,234, while enterprise systems generated HK$20,497,396, and cloud computing contributed HK$1,455,503 for the first half of 2022[46] - North Asia generated revenue of HK$29,685,962, up from HK$27,484,626 in 2021, while South East Asia's revenue increased to HK$8,380,171 from HK$7,388,784, reflecting growth in both regions[55] Share Repurchase - The Company repurchased a total of 984,000 ordinary shares during the review period, with an aggregate price of HK$6,049,260[149] - The Company believes that the share repurchase will enhance its net asset value and/or earnings per share[151]

Financial Performance - In fiscal year 2021, VSTECS achieved a turnover of HK$78.3 billion, representing a year-on-year increase of 12%, and a net profit of HK$1.31 billion, reflecting a year-on-year increase of 23%[29]. - The Group's revenue for the year ended 31 December 2021 was HK$78,335,446,000, a 12% increase from HK$69,961,881,000 in 2020[69]. - Gross profit for the same period was HK$3,639,069,000, up from HK$3,127,313,000, reflecting a significant increase[69]. - Operating profit rose to HK$1,661,212,000, compared to HK$1,420,354,000 in the previous year, indicating a strong operational performance[69]. - Net profit for the year was HK$1,314,026,000, an increase from HK$1,067,580,000 in 2020, showcasing overall profitability growth[69]. - Basic earnings per share increased to HK92.74 cents, up from HK75.54 cents in 2020, reflecting improved shareholder value[69]. - Revenue from the enterprise systems segment increased by 6.8% to HK$43,709,422,000, contributing 55.8% of total Group revenue[69]. - Revenue from the consumer electronics segment rose by 18% to HK$32,282,472,000, accounting for 41.2% of total Group revenue[69]. - Revenue from the cloud computing segment surged by 39.3% to HK$2,343,552,000, contributing 3% of total Group revenue[69]. Market Position and Strategy - VSTECS achieved a significant increase in core competitiveness and performance in 2021 despite global challenges, including the COVID-19 pandemic and geopolitical tensions[27]. - The company reported a revenue of over 11,000 technology products, showcasing a diverse product range[8]. - VSTECS has established partnerships with over 50,000 downstream channel partners, enhancing its market reach[10]. - The company collaborates with over 300 upstream vendors from the Global Top 500 technology corporations, ensuring a strong supply chain[7]. - The management emphasized continuous improvement in operational efficiency and ecological construction as part of its strategic goals[27]. - The company plans to leverage its established partnerships and product diversity to expand its market presence[27]. - VSTECS is navigating a complex economic environment filled with uncertainties while maintaining its strategic direction[27]. - The Group aims to create sustainable value for shareholders by focusing on key markets in China and Southeast Asia, expanding its product portfolio, and improving financial management[68]. Innovation and Technology Development - VSTECS is committed to innovation and the development of new technologies to stay competitive in the market[27]. - VSTECS signed contracts for over 70 new product lines and established strategic partnerships with various technology firms to enhance its capabilities in artificial intelligence and big data[38]. - The enterprise system segment experienced rapid growth, with significant increases in sales from New H3C servers and SmartX, maintaining a leading position in the financial sector with the highest market share in domestic hyper-converged software[41]. - The company showcased over 100 e-consumer products at the 29th China (Shenzhen) Gifts & Home Expo, highlighting its focus on AI life entertainment and smart education[42]. - VSTECS's collaboration with Huawei Cloud has led to the development of a new generation cloud management platform that is compatible with domestic servers and operating systems, enhancing its service offerings[50]. Cloud Computing and Digital Transformation - The cloud computing segment revenue increased by 39% to HK$2.344 billion, while the consumer electronics segment revenue grew by 18% to HK$32.282 billion; the enterprise system segment revenue reached HK$43.709 billion, marking a 7% increase despite supply chain challenges[30]. - VSTECS has deepened its cloud computing and digital transformation business, providing full life-cycle cloud services, including cloud consulting and operation maintenance, with new service items launched during the reporting period[48]. - The joint cloud operation solution developed with Huawei Cloud has been implemented in several projects, including the Wuhan Artificial Intelligence Center, which serves as a significant computing center for AI in China[51]. - VSTECS is actively enhancing its cloud computing and digital transformation services, providing comprehensive solutions to free clients from IT infrastructure management[59]. Corporate Governance and Leadership - Mr. Li Jialin is the founder, Chairman, and CEO of the Company, responsible for overall management and strategy formulation[90]. - The Company has a strong leadership team with diverse backgrounds in finance, technology, and management[92]. - The Group emphasizes the importance of corporate governance through its audit, remuneration, and nomination committees[106]. - The independent directors' diverse educational backgrounds contribute to a well-rounded perspective in company strategy[101]. - The company is committed to maintaining high standards of governance and accountability through its board structure[106]. Environmental, Social, and Governance (ESG) Initiatives - The ESG Report covers the financial year from January 1, 2021, to December 31, 2021, focusing on three main operation segments: Enterprise Systems, Consumer Electronics, and Cloud Computing[118]. - The company is committed to revealing statistics and numbers related to its ESG performance to stakeholders[117]. - The Group acknowledges the overall ESG responsibility and emphasizes that ESG development is key to success, with regular measurement and reporting of ESG performance for continuous improvement[119]. - The Group maintains open communication with stakeholders, including employees, clients, suppliers, management, investors, government, and the community, to balance their expectations and achieve sustainable development[120]. - The Group has set environmental targets to reduce emissions and resource usage, particularly in electricity consumption, which is crucial for the IT industry[134]. Employee Welfare and Community Engagement - Employees prioritize welfare, career development, and a healthy working environment, leading the Group to provide competitive remuneration and discretionary bonuses based on performance[120]. - The Group has engaged in community investment, supporting education and health sectors through charitable activities[185]. - The Group donated RMB1.9 million (HKD2.2 million) to Hubei and provided masks and protective clothing to various locations during the epidemic[184]. - The Group promotes a healthy lifestyle among employees through annual events, although some activities were prohibited during the pandemic[177]. - The Group has implemented policies to retain talent, including increased training opportunities to develop employee potential[167].

Financial Performance - The company has shown strong financial performance since its listing in 2002, with current annual revenue approaching HKD 80 billion, making it the fastest-growing in the industry with an average growth rate of 27% [1] Business Lines - The company continues to effectively manage operational costs, contributing to its robust financial growth [1] Market Data - No specific market data or key indicators were provided in the content [1] Company Strategy and Industry Competition - The company maintains a focus on controlling operational costs while pursuing growth, indicating a strategic emphasis on efficiency in a competitive industry [1] Management Comments on Operating Environment and Future Outlook - Management has not provided specific comments on the operating environment or future outlook in the content [1] Other Important Information - No additional important information was provided in the content [1] Q&A Session Summary - No questions and answers were provided in the content [1]

Financial Performance - VSTECS Holdings Limited reported a revenue of HKD 3.2 billion for the six months ended June 30, 2021, representing a year-on-year increase of 15%[12] - The company's gross profit for the same period was HKD 400 million, with a gross profit margin of 12.5%[12] - Operating profit increased by 20% to HKD 250 million, reflecting improved operational efficiency[12] - The net profit attributable to shareholders was HKD 200 million, up 25% compared to the previous year[12] - Revenue for the six months ended June 30, 2021, increased to HK$34,873,410, representing a growth of 21.7% compared to HK$28,831,578 in 2020[13] - Gross profit for the same period rose to HK$1,691,167, up 23.2% from HK$1,372,863 in 2020[13] - Operating profit increased to HK$818,975, reflecting a growth of 41.1% from HK$580,046 in the previous year[13] - Profit for the period reached HK$645,024, a significant increase of 53.2% compared to HK$421,340 in 2020[13] - Basic earnings per share for the period was 45.60 cents, up from 29.77 cents in 2020, marking a growth of 53.3%[13] - Total comprehensive income for the period was HK$583,483, compared to HK$230,645 in 2020, indicating a substantial increase of 153.5%[17] Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2023[12] - Future guidance estimates revenue growth of 10-15% for the next fiscal year, driven by increased demand for digital solutions[12] - The management emphasized a focus on sustainability and digital transformation as key strategic priorities moving forward[12] - The Group plans to continue executing strategies to increase market share and expand the range of products and services offered[140] Investments and Acquisitions - VSTECS is investing in new technology development, with a budget allocation of HKD 50 million for R&D in 2022[12] - The company has identified potential acquisition targets in the tech sector to enhance its service offerings and expand its customer base[12] Assets and Liabilities - Total assets as of June 30, 2021, were HK$26,850,425, down from HK$29,425,571 at the end of 2020[20] - Total equity increased to HK$7,091,714 from HK$6,826,286 at the end of 2020, reflecting a growth of 3.9%[20] - Net current assets as of June 30, 2021, were HK$4,940,383, compared to HK$4,833,894 at the end of 2020, showing an increase of 2.2%[20] - Total borrowings as of 30 June 2021 amounted to HK$4,854,213, a decrease of 28.0% from HK$6,750,812 as of 31 December 2020[98][99] - Trade payables decreased to HK$10,249,656 as of 30 June 2021, down 5.1% from HK$10,795,001 at the end of 2020[95][96] Shareholder Information - As of June 30, 2021, Mr. Li Jialin held 79,633,200 shares, representing approximately 5.47% of the issued share capital of the Company[147] - L & L Limited, controlled by Mr. Li Jialin and Ms. Liu Li, holds 311,228,000 shares, accounting for about 21.39% of the total share capital[153] - The substantial shareholders include Eternal Asia (HK) Limited, holding 252,211,998 shares, representing 17.33% of the share capital[155] - Fidelity Puritan Trust has a beneficial ownership of 145,576,300 shares, which is 10.00% of the total[155] - The company maintains compliance with the Securities and Futures Ordinance regarding the disclosure of substantial shareholders[152] Corporate Governance - The company complied with the Corporate Governance Code, except for provisions A.2.1 and A.6.7, which were explained in the report[162] - The roles of chairman and CEO are held by the same individual, Mr. Li Jialin, which the board believes does not impair the balance of power[162] - The Company has established various committees including Audit, Remuneration, and Nomination Committees to ensure compliance and governance[166][168][171] Employee Information - The remuneration paid for the six months ended June 30, 2021, amounted to approximately HK$517,248,000, an increase from HK$424,921,000 for the same period in 2020[142] - The Group had 4,200 full-time employees as of June 30, 2021, up from 3,344 employees as of June 30, 2020[142] Risk Management - The Group is exposed to foreign exchange risk primarily with respect to several currencies, including the United States dollar and Renminbi, and will enter into foreign currency forward contracts as needed[140]