Automotive Industry Trends - The global automotive industry is rapidly changing, with a significant trend towards outsourcing to enhance efficiency and reduce production costs[8] - In 2018, China accounted for approximately 56% of global sales of plug-in electric vehicles, with new energy vehicle sales reaching 1.256 million units, a year-on-year increase of about 61.7%[9] - The company anticipates strong demand for advanced processes and technologies from small and medium-sized automotive brands in China and Asia, as the market opens up[21] Company Strategy and Partnerships - The company aims to become a leading automotive technology solution provider by focusing on new energy solutions and services[9] - A strategic partnership was established with Agile Group to promote the development of new energy vehicle-related technology industrial zones in China[12] - The partnership with Agile Group is expected to leverage the company's expertise in the new energy vehicle supply chain and Agile's experience in the Chinese real estate market[12] - The company is implementing a series of innovative measures to expand its business in the new energy vehicle sector[9] - The company agreed to acquire an 86.06% stake in Apollo, a European supercar brand, enhancing its strategy to become a global leader in automotive technology solutions[14] - The acquisition of Apollo is anticipated to create substantial synergies with the company's future automotive business investments[14] - The company plans to acquire 100% equity of Ideenion Automobil AG, a leading German automotive solutions provider, to enhance its capabilities in high-end technology solutions for internal combustion and new energy vehicles[15] - A joint venture has been established in China with GLM and Jiangsu Jimai New Energy Vehicle Co., Ltd., where the company holds approximately 14% equity, focusing on the design, R&D, and production of new energy vehicles and related components[16] Financial Performance - The company's revenue decreased by approximately 25.2% year-on-year to about HKD 536.4 million, down from HKD 717 million in the previous year, primarily due to a decline in jewelry and watch sales[23] - Gross profit for the year was approximately HKD 142.6 million, with a gross margin of about 26.6%, down from 30.0% in the previous year, attributed to reduced margins from jewelry and watch sales[23] - The company reported a loss of approximately HKD 619.3 million for the year, an increase from last year's loss of about HKD 110.3 million, primarily due to goodwill impairment and reduced gross profit in the jewelry and watch segment[28] - The operating loss for the year was HKD (621,564,000), worsening from a loss of HKD (103,522,000) in the previous year[93] - The pre-tax loss was HKD (625,603,000), compared to a loss of HKD (109,107,000) in 2018, indicating a significant decline in financial performance[93] - The total assets increased slightly to HKD 4,553,309,000 from HKD 4,497,816,000 in 2018, while total liabilities rose to HKD 509,644,000 from HKD 462,577,000[96] - The net asset value remained stable at HKD 4,043,665,000, compared to HKD 4,035,239,000 in 2018[96] Cost Management and Expenses - General and administrative expenses decreased by approximately 33.8% to about HKD 166.7 million, down from HKD 252 million in the previous year, due to reduced share-based payment expenses[24] - R&D costs were reduced to approximately HKD 21.2 million from HKD 87.8 million, as the company strategically reallocated resources to more promising projects[24] - Employee costs for the year amounted to approximately HKD 87,659,000, a decrease from HKD 173,031,000 in the previous year, with a total of 221 employees as of September 30, 2019[54] Corporate Governance and Management - The company has a strong management team with over 28 years of accounting and finance experience represented in the board[65] - The company is focused on expanding its market presence and enhancing corporate governance through its various committees[66] - The company has been involved in mergers and acquisitions to drive growth and strategic development in the market[59] - The board includes members with significant international experience, particularly in the satellite and telecommunications sectors[69] - The company aims to leverage its diverse board expertise to navigate market challenges and capitalize on growth opportunities[69] - The company has established a corporate governance committee responsible for developing and reviewing corporate governance policies and practices since November 24, 2017[188] - The company has a clear division of responsibilities between the Chairman and the CEO, with the Chairman focusing on overall leadership and business strategy, while the CEO manages overall operations and development, including mergers and acquisitions[191] Risk Management and Compliance - The company has identified various risks and uncertainties that may impact its financial condition and operational performance[85] - The company has a financial risk management strategy outlined in the financial statements[87] - The audit committee is responsible for assisting the board in providing independent opinions on the effectiveness of the company's financial controls, internal controls, and risk management systems[170] - The company has a structured approach to board member appointments, with specific terms for non-executive directors, ensuring governance and accountability[192] Share Capital and Dividends - The company did not recommend any dividend payment for the year, consistent with the previous year[39] - The total number of shares issued by the company as of September 30, 2019, is 7,170,198,562 shares[122] - The company reported no dividends for the fiscal year, consistent with the previous year[80] Environmental and Social Responsibility - The group is committed to environmental sustainability and efficient resource utilization[168] - The company is committed to maintaining strong relationships with employees, customers, and business partners to ensure sustainable development[81]

Electric Vehicle (EV) Strategy - The company aims to transform into a comprehensive electric vehicle (EV) technology solutions provider, leveraging the growth momentum of China's new energy vehicle market[7]. - The acquisition of GLM Co., Ltd. in 2017 marked the company's entry into the EV sector, focusing on powertrain technology and engineering solutions[8]. - Investment in Divergent Technologies, Inc. established 3D metal printing technology as an innovative method for automotive manufacturing, significantly reducing capital expenditure and improving profit margins[9]. - The company recognizes a significant shortage in EV charging infrastructure in China, with plans to invest in EV Power Holding Limited to capitalize on this market potential[10]. - A joint venture with Shanghai United Investment Co., Ltd. aims to produce at least 10,000 electric vehicles annually using Divergent's design and 3D printing technology[12]. - The company plans to expand its EV-related business, including charging solutions, in response to supportive government policies in China[14]. - The company aims to leverage synergies from its investments to enhance its position in the electric vehicle market and expand its value chain[24]. - The company plans to establish a joint venture in Shanghai to design and assemble electric vehicles, targeting an annual production capacity of at least 10,000 vehicles[23]. - The company plans to leverage the investment in TOM Group Limited to create synergies and potential collaboration opportunities in the electric vehicle charging business across China[53]. - Approximately 90% of the net proceeds from the December 2018 subscription, estimated at HKD 152,300,000, will be used for potential acquisitions or investments in electric vehicle-related businesses or technologies[56]. Financial Performance - The company's revenue increased by approximately 31.4% year-on-year to about HKD 717 million, compared to HKD 545.5 million in the previous year[27]. - The gross profit for the year was approximately HKD 215 million, with a gross margin of about 30.0%, down from 41.0% in 2017[27]. - The operating loss for the year was HKD (103,522,000), an improvement from a loss of HKD (698,162,000) in the previous year[92]. - The pre-tax loss for the year was HKD (109,107,000), compared to a loss of HKD (702,280,000) in 2017, indicating a significant reduction in losses[92]. - The net loss attributable to the company's owners was HKD (94,096,000), down from HKD (700,128,000) in the prior year, reflecting a 86.6% improvement[92]. - Other income and net gains increased by approximately 34.1% to about HKD 86,900,000 from approximately HKD 64,800,000 last year, mainly due to fair value gains on financial assets[28]. - Sales and distribution expenses decreased by approximately 21.2% to about HKD 36,300,000 from approximately HKD 46,100,000 last year, attributed to stricter cost control measures[28]. - General and administrative expenses increased by approximately 109.4% to about HKD 252,000,000 from approximately HKD 120,300,000 last year, primarily due to an increase in share-based payments related to the company's share option plan[28]. Investments and Acquisitions - The company invested in EV Power, acquiring a total of 9,019,918 ordinary shares and 81,700,524 preferred shares, holding approximately 35.79% of EV Power's issued share capital[22]. - The company also invested in Divergent, holding about 30% of its issued share capital, which focuses on 3D printing technology for automotive structures[20]. - The net proceeds from the December 2017 subscription amounted to approximately HKD 376,000,000, with about HKD 273,000,000 allocated for the investment in Divergent[50]. - The remaining net proceeds from the December 2017 subscription are intended for general working capital and future investment opportunities[50]. - The company aims to solidify its foundation in the electric vehicle industry through the funds raised from the December 2018 subscription[56]. Corporate Governance and Management - The company has appointed Mr. He Zhijie as the CEO since October 9, 2017, responsible for overall management, business strategy, and M&A activities[64]. - The company has a strong board with members holding significant experience in finance and corporate governance, including Mr. Zhang Zhenming, who has over 21 years of accounting and finance experience[69]. - The company emphasizes corporate governance, with multiple committees in place, including audit and remuneration committees[69]. - The company has a diverse management team with expertise across various industries, including consumer products, retail, and telecommunications[65]. - The company has been actively involved in mergers and acquisitions, with Mr. He leading acquisition activities in the Greater China region[65]. - The company has established an Investment Committee to oversee investment strategies and decisions[191]. - The board consists of six members, three of whom are independent non-executive directors, contributing to a diverse governance structure[187]. - The company has adopted a board diversity policy since September 1, 2013, considering various factors such as age, cultural background, and professional experience[187]. Employee and Operational Insights - The total employee count as of September 30, 2018, was 240, an increase from 215 in the previous year[58]. - Employee costs for the year amounted to approximately HKD 173,000,000, significantly up from HKD 49,100,000 in the previous year[58]. - The company is committed to providing a safe and fair working environment, promoting employee development, and ensuring competitive compensation and benefits[80]. - The company emphasizes the importance of maintaining strong relationships with employees, customers, and business partners to support ongoing development[80]. Risk Management and Compliance - The company continues to face significant business risks primarily due to its operations being concentrated in China, which may impact future performance[84]. - Financial risk management details are provided in the financial statements, indicating a structured approach to managing potential financial uncertainties[85]. - The company has confirmed compliance with applicable laws and regulations without significant violations impacting operations[151]. - The company has complied with the code regarding risk management and internal control systems, ensuring their effectiveness and sufficiency[195]. Shareholder Relations - The management team is committed to seizing market opportunities to deliver optimal returns for shareholders[14]. - The company expresses gratitude to shareholders and partners for their continued support and trust[14]. - The company did not recommend any dividend payment for the year, consistent with last year[40]. - The company has not engaged in any purchases, sales, or redemptions of its listed securities during the year[102].