[0 -> 19] 欢迎各位投资者来到2023年中期路演季上市公司路演现场本次路演由智通财经与第一上海联合主办路演即将开始请各位投资者将手机调至静音接下来有请韦石佳杰进行路演及投资者交流时长40分钟 [20 -> 43] 非常感谢啊我觉得今天因为刚才我在来的路上其实是一公里堵了二十多分钟我发现深圳这个路确实是比北京还要堵感觉所以我觉得今天大家能来又暴力大雨天我首先表示非常的欢迎啊也非常的感谢那我们也下面也是介绍一下我们公司的一个情况 [46 -> 57] 我分为四个部分,第一部分是公司简介,第二部分是我们公司的商业模式介绍,第三是我们财务的一个状况,第四是我们公司发展的一个战略。 [59 -> 81] 美食佳节其实是我们1991年就成立了我们总部在香港我们现在整个集团的员工有4000多人目前我们的业务除了在中国之外我们其实在东南亚地区像什么印尼、泰国、菲律宾等等我们还有八个国家我们覆盖了整个东南亚的市场 [81 -> 103] 同时我们在上游的合作伙伴当中我们有世界的客体500强有超过300家同时跟我们有非常长年的这样的一个战略的合作那么目前我们服务的下游的客户服务过的是5万个现在正常的维护的是上万个那么目前 ...

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 - 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]

[Corporate Information](index=4&type=section&id=Corporate%20Information) [Chairman's Statement](index=8&type=section&id=Chairman's%20Statement) The Group achieved record revenue and net profit in 2020, driven by improved operational efficiency, reduced financial costs, and strong demand for IT infrastructure and cloud services, alongside strategic expansion in emerging technologies and key markets [Overall Performance](index=8&type=section&id=Overall%20Performance) In FY2020, the company achieved record revenue and net profit, with revenue up **6%** and net profit attributable to shareholders up **32%**, driven by operational efficiency and strong IT infrastructure and cloud service demand Key Financial Indicators for FY2020 | Indicator | FY2020 | Y-o-Y Change | | :--- | :--- | :--- | | Revenue | HKD 70 billion | +6% | | Net Profit Attributable to Shareholders | HKD 1.07 billion | +32% | | Return on Equity (ROE) | 16.5% | - | - Key drivers for performance growth include: - Enhanced operational management, effectively reducing financial costs and administrative expense ratios[27](index=27&type=chunk) - Robust demand for IT infrastructure and cloud services in China and Southeast Asia[27](index=27&type=chunk) - Strengthened company service capabilities, successfully assisting enterprises in digital transformation[28](index=28&type=chunk) [Performance by Segment](index=9&type=section&id=Performance%20by%20Segment) Cloud computing and enterprise systems businesses experienced rapid, double-digit growth, collectively accounting for over **60%** of the company's total revenue Revenue Performance by Business Segment for FY2020 | Business Segment | Revenue (HKD) | Y-o-Y Growth (%) | | :--- | :--- | :--- | | Cloud Computing | 1.7 billion | +40 | | Enterprise Systems | 40.9 billion | +15 | [Performance by Region](index=9&type=section&id=Performance%20by%20Region) Both North Asia and Southeast Asia businesses achieved steady growth, with market demand rebounding significantly in the second half of the year after initial pandemic impacts Revenue Performance by Region for FY2020 | Region | Y-o-Y Growth (%) | | :--- | :--- | | North Asia | +6 | | Southeast Asia | +3 | [Strategic Progress](index=10&type=section&id=Strategic%20Progress) During the reporting period, the company made significant progress in expanding its emerging technology product portfolio, strengthening multi-cloud management capabilities, deepening its presence in Southeast Asia, and strategically positioning itself in China's Xinchuang industry - The company continues to expand cooperation with major global technology product suppliers, focusing on emerging technologies like cloud computing, big data, and AI, deepening partnerships with leading cloud vendors such as Alibaba Cloud, Huawei Cloud, and AWS[37](index=37&type=chunk) - Through the acquisition of Cloud Star Data, the company strengthened its capabilities in multi-cloud management platform software and services, saving customers **20%-30%** on public cloud usage costs[46](index=46&type=chunk) - In Southeast Asia, the company transitioned from a distributor to a service partner, providing ICT infrastructure services to government, finance, and telecommunications sectors, with VSTECS (Thailand) winning the **2020 Microsoft Partner of the Year Award**[50](index=50&type=chunk)[52](index=52&type=chunk) - In the inaugural year of China's Xinchuang industry, the company secured multiple large orders in basic hardware, software, and industry application software, establishing partnerships with numerous leading Xinchuang vendors including PowerLeader, Primeton Middleware, and Sangfor Technologies[54](index=54&type=chunk) [Business Model and Strategic Direction](index=16&type=section&id=Business%20Model%20and%20Strategic%20Direction) The Group, a leading ICT product and service provider with over **50,000** channel partners across China and Southeast Asia, focuses on enterprise systems, consumer electronics, and cloud computing, pursuing sustainable value through market focus, product expansion, and operational efficiency - The company's three main businesses are: - **Enterprise Systems**: Designing, installing, and implementing IT infrastructure for enterprises[56](index=56&type=chunk) - **Consumer Electronics**: Providing various IT finished products[56](index=56&type=chunk) - **Cloud Computing**: Offering cloud computing solutions and services[56](index=56&type=chunk) - The Group's core development strategies include: - Focusing on key markets in China and Southeast Asia[56](index=56&type=chunk) - Expanding the product portfolio by leveraging numerous suppliers[56](index=56&type=chunk) - Enhancing working capital and financial management[56](index=56&type=chunk) - Improving operational efficiency and cost management[56](index=56&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's 2020 performance, analyzing financial data, segment and regional revenue contributions, liquidity, risks, and outlook, noting record revenue and strong growth in enterprise systems and cloud computing [Business Review](index=17&type=section&id=Business%20Review) In 2020, the Group achieved record-high revenue, gross profit, operating profit, and net profit, with enterprise systems and cloud computing as key growth drivers, increasing by **15%** and **40%** respectively, while North Asia and Southeast Asia markets also performed well with **6%** and **3%** revenue growth FY2020 Financial Performance Summary (HKD Thousands) | Indicator | 2020 | 2019 | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 69,961,881 | 66,209,921 | +5.7 | | Gross Profit | 3,127,313 | 2,967,854 | +5.4 | | Operating Profit | 1,420,354 | 1,260,212 | +12.7 | | Net Profit | 1,067,580 | 809,948 | +31.8 | | Basic Earnings Per Share | 75.54 HK cents | 57.03 HK cents | +32.5 | FY2020 Revenue Contribution by Business Segment | Business Segment | Revenue (HKD Thousands) | Y-o-Y Change (%) | Share of Total Revenue (%) | | :--- | :--- | :--- | :--- | | Enterprise Systems | 40,914,823 | +15 | 58.5 | | Consumer Electronics | 27,364,638 | -7 | 39.1 | | Cloud Computing | 1,682,420 | +40 | 2.4 | FY2020 Revenue Contribution by Region | Region | Revenue (HKD Thousands) | Y-o-Y Change (%) | Share of Total Revenue (%) | | :--- | :--- | :--- | :--- | | North Asia | 55,354,208 | +6 | 79 | | Southeast Asia | 14,607,673 | +3 | 21 | [Prospects](index=19&type=section&id=Prospects) The Group plans to drive growth by leveraging its product portfolio and network, expanding market share and service scope, continuing expansion in China and Southeast Asia, improving operational efficiency for better margins, and developing consumer electronics and cloud computing - Strategic priorities include: - Continuous expansion in the China and Southeast Asia markets[71](index=71&type=chunk) - Improving internal operational and financial efficiency to enhance profit margins[71](index=71&type=chunk) - Expanding consumer electronics and cloud computing businesses[71](index=71&type=chunk) [Liquidity and Financial Resources](index=20&type=section&id=Liquidity%20and%20Financial%20Resources) As of year-end 2020, the Group's financial position was robust, marked by increased cash, reduced borrowings, an improved net debt-to-total assets ratio of **0.11**, a healthy current ratio of **1.22 times**, and growing shareholders' equity Key Liquidity and Financial Resources Indicators (As of December 31) | Indicator | 2020 (HKD Thousands) | 2019 (HKD Thousands) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 3,559,192 | 2,327,702 | | Total Borrowings | 6,750,812 | 8,017,112 | | Net Debt to Total Assets Ratio | 0.11 | 0.23 | | Current Ratio | 1.22 times | 1.30 times | | Shareholders' Equity | 6,826,286 | 5,654,472 | [Employees](index=21&type=section&id=Employees) As of the end of 2020, the Group's full-time employee count slightly increased to **3,414**, with total annual net remuneration approximately **HKD 863 million** - As of December 31, 2020, the Group had **3,414** full-time employees (2019: 3,352 employees)[78](index=78&type=chunk) - Total net remuneration paid for 2020 was approximately **HKD 863 million** (2019: approximately HKD 910 million)[78](index=78&type=chunk) [Biographical Details of Directors and Company Secretary](index=22&type=section&id=Biographical%20Details%20of%20Directors%20and%20Company%20Secretary) [Environmental, Social and Governance Report](index=28&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) This report details the Group's ESG policies, practices, and performance, covering environmental impact minimization, employee welfare, robust operational practices including supply chain and anti-corruption, and active community engagement [Environmental Protection](index=28&type=section&id=A.%20Environmental%20Protection) As a trading company, the Group's operations have minimal environmental impact with no significant emissions or hazardous waste, focusing efforts on managing electricity and paper consumption in offices and warehouses through energy-saving measures and eco-friendly printing habits - Due to the nature of its business, the Group's operations have no significant impact on exhaust gas, greenhouse gas emissions, water and soil pollution, or waste generation[110](index=110&type=chunk) - Resource consumption primarily involves electricity and paper in offices and warehouses, with the Group implementing measures such as encouraging energy saving and eco-friendly printing to reduce consumption[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) [Social Responsibility](index=30&type=section&id=B.%20Social) The Group's social responsibility covers employment, labor practices, operational conduct, and social engagement, valuing employees, ensuring health and safety, robust supply chain management, product responsibility, and anti-corruption policies, while encouraging community service - **Employment and Labor**: The Group strictly adheres to relevant labor laws, provides equal treatment and competitive compensation and benefits, prohibits child and forced labor, and offers both on-the-job and external training to employees[119](index=119&type=chunk)[123](index=123&type=chunk) - **Operational Practices**: - **Supply Chain Management**: Collaborating with renowned brands like Huawei, HP, and Apple, implementing an efficient supply chain management system[125](index=125&type=chunk) - **Product Responsibility**: Prudently selecting suppliers, ensuring product quality, and protecting customer personal data and intellectual property rights[126](index=126&type=chunk) - **Anti-Corruption**: Maintaining a compliance department and whistleblowing policy, with strict codes of conduct and anti-corruption training for employees and business partners[127](index=127&type=chunk) - **Community Investment**: The Group supports and participates in community and charitable activities, encouraging employee volunteerism to foster harmonious development between the enterprise and the community[130](index=130&type=chunk) [Corporate Governance Report](index=35&type=section&id=Corporate%20Governance%20Report) This report outlines the company's 2020 corporate governance practices, confirming compliance with listing rules (except for the combined Chairman/CEO role), detailing board composition, committee operations, risk management, internal controls, and shareholder communication [Board of Directors](index=35&type=section&id=Board%20of%20Directors) The Board comprises **10** members, including **4** executive, **2** non-executive, and **4** independent non-executive directors, meeting listing rule requirements, responsible for overall management and strategy, with the Chairman and CEO roles combined to enhance decision-making efficiency, and generally high attendance at board meetings - The Board of Directors consists of **10** members, including **4** independent non-executive directors, meeting listing rule requirements[136](index=136&type=chunk)[137](index=137&type=chunk) - The company deviates from the Corporate Governance Code's provision for separate Chairman and Chief Executive roles, with Mr. Li Jialin holding both positions, which the Board believes enhances the timeliness and effectiveness of decision-making[146](index=146&type=chunk) [Board Committees](index=43&type=section&id=Board%20Committees) The Board has three committees—Audit, Remuneration, and Nomination—each predominantly composed of independent non-executive directors, responsible for reviewing financial reports, internal controls, executive remuneration, and board composition, all of which held meetings and fulfilled their duties during the year - **Audit Committee**: Composed of four independent non-executive directors, held two meetings during the year, reviewing financial reports, risk management, and internal control systems[153](index=153&type=chunk)[154](index=154&type=chunk) - **Remuneration Committee**: Composed of four independent non-executive directors, held one meeting during the year, reviewing the remuneration of directors and senior management[157](index=157&type=chunk)[159](index=159&type=chunk) - **Nomination Committee**: Composed of one executive director and four independent non-executive directors, held one meeting during the year, reviewing board composition and director appointments[160](index=160&type=chunk)[161](index=161&type=chunk) [Risk Management and Internal Control](index=47&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board is responsible for maintaining and annually reviewing effective risk management and internal control systems, which management designs, implements, and monitors across financial, operational, and compliance controls, with the Board confirming the system's effectiveness and adequacy for 2020 - The Board is ultimately responsible for the Group's risk management and internal control systems, conducting annual reviews of their effectiveness[163](index=163&type=chunk) - The Board has completed its annual review and considers the Group's existing risk management and internal control systems to be effective and adequate[164](index=164&type=chunk) [Directors' Report](index=51&type=section&id=Directors'%20Report) This report covers the company's principal activities, performance, major customers and suppliers, dividend policy, share repurchases, and director/shareholder interests, highlighting IT product channel development, a proposed final dividend of **22 HK cents** per share, and share repurchases [Principal Activities](index=51&type=section&id=Principal%20Activities) As an investment holding company, the Group's subsidiaries primarily engage in IT product channel development and technical solution integration services, categorized into three main segments: enterprise systems, consumer electronics, and cloud computing - The company's three main business segments are: - **Enterprise Systems**: Providing IT infrastructure tools, design, implementation, training, and maintenance services[173](index=173&type=chunk) - **Consumer Electronics**: Supplying complete IT products[173](index=173&type=chunk) - **Cloud Computing**: Offering cloud computing solutions and services[173](index=173&type=chunk) [Major Customers and Suppliers](index=52&type=section&id=Major%20Customers%20and%20Suppliers) In 2020, the Group maintained reasonable customer and supplier concentration, with the largest customer accounting for approximately **9%** of total revenue and the top five customers for **18%**, while the largest supplier accounted for approximately **21%** of total purchases and the top five for **63%** 2020 Customer and Supplier Concentration | Category | Share | 2020 (%) | 2019 (%) | | :--- | :--- | :--- | :--- | | Largest Customer | of total revenue | ~9 | ~9 | | Top Five Customers | of total revenue | ~18 | ~22 | | Largest Supplier | of total purchases | ~21 | ~18.8 | | Top Five Suppliers | of total purchases | ~63 | ~61 | [Results and Appropriations](index=52&type=section&id=Results%20and%20Appropriations) The Board recommends a final dividend of **22 HK cents** per ordinary share for the year ended December 31, 2020, an increase from **16.7 HK cents** in 2019 - A final dividend of **22 HK cents** per share is proposed for 2020, higher than **16.7 HK cents** in 2019[178](index=178&type=chunk) [Purchase, Sale or Redemption of Securities](index=54&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Securities) During the year, the company repurchased and cancelled **1,770,000** ordinary shares on the Stock Exchange and acquired **11,372,000** shares in the open market through a trust for its employee remuneration scheme 2020 Share Repurchase Details | Month of Repurchase | Number of Shares Repurchased | Price Range Per Share (HKD) | Total Price Paid (HKD) | | :--- | :--- | :--- | :--- | | March 2020 | 1,488,000 | 3.30 | 4,910,400 | | April 2020 | 282,000 | 3.52 | 992,640 | | **Total** | **1,770,000** | **-** | **5,903,040** | - **11,372,000** ordinary shares were acquired in the open market through a trust established for employee remuneration, at a total cost of approximately **HKD 44.212 million**[183](index=183&type=chunk) [Independent Auditor's Report](index=65&type=section&id=Independent%20Auditor's%20Report) KPMG issued an unmodified opinion on the company's 2020 consolidated financial statements, affirming they present a true and fair view of the Group's financial position and operating results, with inventory valuation and trade receivables valuation highlighted as key audit matters involving significant management judgment [Auditor's Opinion](index=65&type=section&id=Auditor's%20Opinion) KPMG believes the Group's consolidated financial statements for the year ended December 31, 2020, present a true and fair view of its financial position, performance, and cash flows in accordance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance - The auditor issued a standard unmodified opinion on the financial statements[206](index=206&type=chunk)[208](index=208&type=chunk) [Key Audit Matters](index=66&type=section&id=Key%20Audit%20Matters) Auditors identified inventory valuation and trade receivables valuation as key audit matters due to significant management judgment and inherent uncertainty involved in estimating future market changes, customer credit, and forward-looking information - **Inventory Valuation**: As of year-end, inventory amounted to **HKD 5.5 billion**, and its net realizable value estimation involves significant management judgment due to the susceptibility of technology product demand and prices to technological changes and customer preferences, thus identified as a key audit matter[212](index=212&type=chunk)[213](index=213&type=chunk)[215](index=215&type=chunk) - **Trade Receivables Valuation**: As of year-end, trade receivables totaled **HKD 13.2 billion** after a loss allowance of **HKD 672 million**, with the recognition of expected credit losses involving significant, subjective, and uncertain judgments on customer-specific factors, current economic conditions, and forward-looking information, thus identified as a key audit matter[215](index=215&type=chunk)[216](index=216&type=chunk)[218](index=218&type=chunk) [Consolidated Financial Statements](index=73&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Financial Position](index=73&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2020, total assets rose to **HKD 29.43 billion** and total equity to **HKD 6.83 billion**, primarily due to increased receivables and cash, maintaining a robust financial structure despite higher current liabilities offset by reduced non-current borrowings Statement of Financial Position Summary (As of December 31) | Indicator (HKD Thousands) | 2020 | 2019 | | :--- | :--- | :--- | | **Total Assets** | **29,425,571** | **24,936,069** | | Non-current Assets | 2,199,058 | 2,068,734 | | Current Assets | 27,226,513 | 22,867,335 | | **Total Liabilities** | **22,599,285** | **19,281,597** | | Non-current Liabilities | 206,666 | 1,676,282 | | Current Liabilities | 22,392,619 | 17,605,315 | | **Total Equity** | **6,826,286** | **5,654,472** | | Net Current Assets | 4,833,894 | 5,262,020 | [Consolidated Statement of Profit or Loss](index=75&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For FY2020, the Group achieved revenue of **HKD 69.96 billion**, a **5.7%** year-on-year increase, with profit for the year (net profit) reaching **HKD 1.07 billion**, a significant **31.8%** year-on-year growth, attributed to effective cost control and a substantial **34%** reduction in finance costs Consolidated Statement of Profit or Loss Summary (For the year ended December 31) | Indicator (HKD Thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Revenue | 69,961,881 | 66,209,921 | | Gross Profit | 3,127,313 | 2,967,854 | | Operating Profit | 1,420,354 | 1,260,212 | | Finance Costs | (193,908) | (295,616) | | Profit Before Tax | 1,247,265 | 1,009,507 | | **Profit for the Year** | **1,067,580** | **809,948** | [Consolidated Cash Flow Statement](index=79&type=section&id=Consolidated%20Cash%20Flow%20Statement) For FY2020, the Group generated **HKD 2.62 billion** in net cash from operating activities, a significant increase, with net cash outflow of **HKD 7.51 million** from investing activities and **HKD 1.64 billion** from financing activities, resulting in a net increase of **HKD 967 million** in cash and cash equivalents for the year Cash Flow Statement Summary (For the year ended December 31) | Indicator (HKD Thousands) | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 2,616,286 | 1,146,904 | | Net Cash (Used in)/Generated from Investing Activities | (7,507) | 12,867 | | Net Cash Used in Financing Activities | (1,641,997) | (387,847) | | **Net Increase in Cash and Cash Equivalents** | **966,782** | **771,924** | | Cash and Cash Equivalents at Year-End | 3,559,192 | 2,327,702 | [Financial Summary](index=186&type=section&id=Financial%20Summary) This section provides a summary of the Group's key financial data for the past five fiscal years (2016-2020), illustrating a continuous growth trend in revenue, profit, total assets, and total equity Five-Year Financial Summary (HKD Thousands) | For the year ended December 31 | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Performance** | | | | | | | Revenue | 69,961,881 | 66,209,921 | 62,481,961 | 54,543,084 | 48,161,318 | | Profit Before Tax | 1,247,265 | 1,009,507 | 946,999 | 919,711 | 688,775 | | Profit for the Year | 1,067,580 | 809,948 | 740,827 | 716,441 | 551,915 | | **Assets and Liabilities** | | | | | | | Total Assets | 29,425,571 | 24,936,069 | 23,877,461 | 20,653,352 | 16,293,051 | | Total Liabilities | 22,599,285 | 19,281,597 | 18,830,739 | 15,818,638 | 12,429,413 | | Total Equity | 6,826,286 | 5,654,472 | 5,046,722 | 4,834,714 | 3,863,638 |

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$28,831,578, a decrease of 4.0% from HK$30,031,886 in the same period of 2019[12]. - Gross profit for the period was HK$1,372,863, down from HK$1,430,970, reflecting a gross margin of approximately 4.77%[12]. - Operating profit decreased to HK$580,046, compared to HK$594,650 in the previous year, representing a decline of 2.5%[12]. - Profit for the period increased to HK$421,340, up 7.5% from HK$392,012 in the same period last year[12]. - Basic earnings per share rose to 29.77 cents, compared to 27.56 cents in the prior year, indicating an increase of 8.0%[12]. - Total comprehensive income for the period decreased to HK$230,645,000, down from HK$420,746,000, reflecting a decline of 45.0%[14]. - Profit for the period increased to HK$421,340,000, up from HK$392,012,000, representing a growth of 7.5% year-over-year[14]. Expenses and Costs - Selling and distribution expenses increased to HK$526,900, up from HK$512,581, reflecting a rise of 2.5%[12]. - Administrative expenses decreased to HK$273,373 from HK$331,029, showing a reduction of 17.4%[12]. - Finance costs decreased to HK$110,148, down from HK$132,103, representing a decline of 16.6%[12]. - The finance costs for the six months ended June 30, 2020, were HK$132,103, compared to HK$110,148 in the previous period, indicating an increase of approximately 20%[37][54]. Cash Flow and Liquidity - Net cash generated from operations reached HK$1,134,979,000, significantly higher than HK$462,778,000 in the previous year, marking an increase of 145.0%[18]. - Cash and cash equivalents at 30 June 2020 amounted to HK$2,364,459,000, compared to HK$1,751,437,000 at the same time last year, an increase of 35.0%[18]. - The company reported a net cash used in financing activities of HK$806,177,000, compared to HK$80,287,000 in the previous year, indicating a significant increase in cash outflow[18]. Assets and Liabilities - Total assets decreased to HK$22,996,411,000 from HK$24,936,069,000, a reduction of 7.8%[16]. - Total liabilities decreased to HK$17,383,523,000 from HK$19,281,597,000, a decline of 9.8%[16]. - Net current assets stood at HK$5,232,444,000, slightly down from HK$5,262,020,000, a decrease of 0.6%[16]. - Total borrowings as of June 30, 2020, amounted to HK$7,323,381,000, a decrease from HK$8,017,112,000 as of December 31, 2019[85]. Segment Performance - The main business segments include consumer electronics, components products, enterprise systems, and cloud computing[30]. - Revenue from the consumer electronics segment decreased to approximately HK$11,107,920,000, down 8% from approximately HK$12,075,502,000 in the previous year[98]. - The enterprise systems segment saw an increase in revenue to approximately HK$12,418,041,000, up 15% from approximately HK$10,846,596,000 in the same period last year[98]. Employee and Shareholder Information - The Group had 3,344 full-time employees as of 30 June 2020, a decrease from 3,422 employees in the same period of 2019[103]. - Total salaries paid for the six months ended June 30, 2020, amounted to approximately HKD 424,921,000, down from HKD 443,195,000 for the same period in 2019, representing a decrease of about 4.5%[104]. - Mr. Li Jialin holds 79,633,200 ordinary shares, representing approximately 5.49% of the issued share capital of the company[107]. - A controlled corporation, L & L Limited, holds 311,228,000 shares, accounting for approximately 21.44% of the company's issued share capital[115]. Corporate Governance - The company complied with the Corporate Governance Code, except for provisions A.2.1 and A.6.7, which relate to the separation of roles between the chairman and CEO[126]. - The Audit Committee reviewed the unaudited results for the six months ended June 30, 2020, confirming compliance with applicable accounting standards[136]. - The company has established a Remuneration Committee to oversee the remuneration policies for directors and senior management[137].