Financial Performance - Revenue for the six months ended December 31, 2023, was HK$83,563,000, representing an increase of 57.5% compared to HK$52,992,000 in the previous period[5]. - Gross profit for the same period was HK$50,860,000, up 68.5% from HK$30,141,000 in the previous period[5]. - Profit for the period increased to HK$5,682,000, a rise of 35.3% from HK$4,199,000 in the previous period[8]. - Earnings per share for the period were HK2.18 cents, compared to HK1.61 cents in the previous period, reflecting a growth of 35.4%[8]. - Total comprehensive income for the period was HK$6,292,000, compared to a comprehensive loss of HK$4,862,000 in the previous period[8]. - The profit before taxation for the six months ended December 31, 2023, was HK$6,777,000, an increase of 59.5% from HK$4,245,000 in 2022[17]. - Net cash generated from operating activities was HK$11,115,000, a significant recovery from a net cash outflow of HK$28,907,000 in the previous year[17]. - The Group's revenue for the six months ended December 31, 2023, was HK$83,563,000, representing an increase from HK$52,992,000 in the same period of 2022, reflecting a growth of approximately 58%[36]. - Profit for the period attributable to owners of the Company increased to HK$5,682,000 for the six months ended 31 December 2023, compared to HK$4,199,000 for the same period in 2022, representing a growth of approximately 35.3%[53]. Assets and Liabilities - Non-current assets increased to HK$53,812,000 as of December 31, 2023, from HK$48,388,000 as of June 30, 2023[12]. - Current assets decreased to HK$163,555,000 from HK$175,563,000, indicating a decline of 6.9%[12]. - Net assets rose to HK$140,885,000 as of December 31, 2023, compared to HK$134,593,000 as of June 30, 2023, an increase of 4.3%[12]. - Cash and cash equivalents increased to HK$105,760,000 from HK$100,760,000, showing a growth of 5%[12]. - The total equity at December 31, 2023, was reported at (HK$140,885,000), a slight improvement from (HK$128,417,000) at the end of 2022[14]. - The total amount of trade payables decreased to HK$46,896,000 as of December 31, 2023, from HK$51,743,000 as of June 30, 2023, a reduction of approximately 9.4%[93]. - Contract liabilities from receipts in advance decreased to HK$22,038,000 as of December 31, 2023, from HK$31,402,000 as of June 30, 2023, representing a decline of about 29.9%[97]. Expenses - Distribution costs for the period were HK$13,826,000, up from HK$11,793,000 in the previous period, reflecting an increase of 17.2%[5]. - General and administrative expenses increased by approximately 17.6% to approximately HK$20 million for the six months ended 31 December 2023, compared to approximately HK$17 million in the previous period, driven by higher administrative staff costs and legal fees[112][117]. - The company incurred finance costs of HK$294,000, up from HK$35,000 in the previous year, indicating increased borrowing costs[17]. Revenue Segments - Revenue from technology system sales, including software licensing, amounted to HK$48,083,000 for the period, up from HK$21,967,000 in the previous year, indicating a growth of about 119%[36]. - The segment result for technology system sales was HK$20,137,000, compared to HK$3,333,000 in the prior period, showing a significant improvement in performance[39]. - The Group's leasing of system products generated revenue of HK$12,130,000, compared to HK$10,557,000 in the previous year, marking an increase of approximately 15%[36]. Taxation - Current tax expenses increased to HK$1,095,000 for the six months ended December 31, 2023, compared to HK$89,000 in the same period of 2022, primarily due to higher corporate income tax in Germany[47]. - The estimated corporate income tax rate for the Group's subsidiary in Germany is 31.45% for the current year, up from 31% in the previous year[50]. Investments and Fair Value - The Group recorded a fair value loss on financial assets at fair value through profit or loss of approximately HK$12.2 million during the period, attributed to changes in market sentiment[119][125]. - The fair value of listed equity investments in Hong Kong classified as financial assets at fair value through profit or loss was approximately HK$1.4 million as of 31 December 2023, down from approximately HK$14.0 million[120][121]. Strategic Initiatives - The company aims to expand its business through mergers and acquisitions, indicating a strategic focus on growth despite recent challenges[126]. - Continuous investment in R&D has led to improvements in the structure and management of the R&D function, aiding in reducing time to market for key projects[165]. - Development of the Multitone Aurora™ platform is ongoing, aimed at delivering a secure messaging application compatible with various devices, with a release expected towards the end of the fiscal year[167]. Market Performance - The UK market remains the largest for the company, exceeding revenue and sales intake targets by the end of December 2023[174]. - Sales in Oceania, particularly in Australia, showed significant improvement, making it the third largest market outside the UK, following Germany and the Irish Republic[177]. - The US market continues to underperform, with no substantial revenue growth expected in the short term, but long-term strategies are being developed[178].

Financial Performance - Revenue for the six months ended December 31, 2023, was HK$83,563,000, representing an increase of 58.5% compared to HK$52,992,000 for the same period in 2022[8]. - Gross profit for the period was HK$50,860,000, up 68.5% from HK$30,141,000 in the previous period[8]. - Profit for the period increased to HK$5,682,000, a rise of 35.3% from HK$4,199,000 in the previous period[11]. - Basic and diluted earnings per share were HK2.18 cents, compared to HK1.61 cents for the same period last year, reflecting a growth of 35.4%[11]. - Total comprehensive income for the period was HK$6,292,000, compared to a comprehensive expense of HK$4,862,000 in the previous period[11]. - Profit before taxation for the six months ended December 31, 2023, was HK$6,777,000, an increase from HK$4,245,000 in 2022, representing a growth of approximately 59.5%[20]. - Profit for the period attributable to owners of the Company increased to HK$5,682,000 for the six months ended 31 December 2023, compared to HK$4,199,000 in 2022, representing a growth of approximately 35.3%[56]. Assets and Liabilities - Non-current assets increased to HK$53,812,000 as of December 31, 2023, from HK$48,388,000 as of June 30, 2023[15]. - Current assets decreased to HK$163,555,000 from HK$175,563,000 as of June 30, 2023, primarily due to a reduction in inventories[15]. - Net assets rose to HK$140,885,000 as of December 31, 2023, compared to HK$134,583,000 as of June 30, 2023[15]. - The total equity as of December 31, 2023, was negative HK$140,885,000, a slight improvement from negative HK$128,417,000 at the end of 2022[17]. - Current liabilities decreased to approximately HK$73 million from HK$87 million[191]. - The company maintained a healthy level of financial liquidity with net current assets of approximately HK$89 million as of December 31, 2023[191]. Cash Flow - Net cash generated from operating activities for the six months ended December 31, 2023, was HK$11,115,000, compared to a net cash outflow of HK$28,907,000 in the previous year[20]. - Cash and cash equivalents at the end of the period increased to HK$105,760,000 from HK$72,646,000, marking an increase of approximately 45.5%[20]. - The effect of foreign exchange rate changes resulted in an increase of HK$1,569,000 in cash and cash equivalents during the period[20]. Expenses - Distribution costs increased to HK$13,826,000 from HK$11,793,000, reflecting a rise of 17.2% year-on-year[8]. - General and administrative expenses increased by approximately 17.6% to approximately HK$20 million for the six months ended 31 December 2023, compared to approximately HK$17 million in the previous year[115][120]. - The company incurred finance costs of HK$294,000 for the period, up from HK$35,000 in the previous year, indicating increased borrowing costs[20]. Revenue Segmentation - Revenue from technology system sales, including software licensing, was HK$48,083,000 for the period, up from HK$21,967,000 in the previous year, marking a significant increase of about 119.5%[39]. - The segment result for technology system sales was HK$20,137,000, compared to HK$3,333,000 in the prior period, indicating a substantial improvement in performance[42]. - The total revenue recognized at a point in time was HK$48,083,000, while revenue recognized over time amounted to HK$35,480,000 for the period[42]. Investments and Fair Value - The company reported a fair value loss on financial assets of HK$12,248,000 during the period, compared to a gain of HK$3,153,000 in the previous period[8]. - The fair value of investment property as of 31 December 2023 was HK$6,001,000, which was valued using the direct comparison method[71]. - As of 31 December 2023, the fair value of listed equity investments in Hong Kong classified as financial assets at fair value through profit or loss was approximately HK$1.4 million, down from approximately HK$14.0 million[123][124]. Market and Strategic Developments - The UK remains the largest market for the company, exceeding revenue and sales intake targets by the end of December 2023[177]. - The subsidiary in Germany achieved record revenue levels in the first half of the fiscal year, attributed to fulfilling order backlogs and a contract with Klinikum der Universität München[179]. - Sales in Oceania, particularly in Australia, showed significant improvement, making it the third largest market outside the UK, following Germany and the Irish Republic[180]. - The US market continues to underperform, with no substantial revenue growth expected in the short term, but the company is working on a strategy for long-term improvement[181]. Corporate Governance - The Board of directors resolved not to pay any interim dividend for the six months ended 31 December 2023, consistent with the decision in 2022[59]. - Key management personnel remuneration for the six months ended 31 December 2023 totaled approximately HK$5.8 million, an increase from approximately HK$3.1 million in the previous period[109][118].

Financial Performance - Revenue for the year ended June 30, 2023, was HK$128,737,000, a slight increase from HK$127,755,000 in 2022, representing a growth of 0.85%[3] - Adjusted profit for 2023 was HK$9,694,000, up from HK$4,558,000 in 2022, marking an increase of 113.4%[3] - Attributable profit for 2023 was HK$9,694,000 compared to HK$4,558,000 in 2022, reflecting a growth of 113.4%[3] - Earnings per share increased to 3.72 HK cents in 2023 from 2.06 HK cents in 2022, representing an increase of 80.6%[3] - Profit attributable to owners for the year ended June 30, 2023, was approximately HK$9.7 million, an increase from approximately HK$4.6 million for the previous year, with earnings per share rising to HK3.72 cents from HK2.06 cents[37] - The profit attributable to owners for the year ended June 30, 2023, was approximately HK$9.7 million, up from HK$4.6 million in the previous year, representing an increase of about 110.9%[40] - Earnings per share increased to HK$3.72 from HK$2.06, reflecting a growth of approximately 80.8% year-over-year[40] Assets and Liabilities - Cash and cash equivalents as of June 30, 2023, were HK$100,760,000, down from HK$108,260,000 in 2022, a decrease of 6.9%[3] - Total assets increased to HK$223,951,000 in 2023 from HK$210,187,000 in 2022, an increase of 6.5%[3] - Equity attributable to owners of the Company rose to HK$134,593,000 in 2023 from HK$133,279,000 in 2022, a marginal increase of 0.98%[3] - The Group's liquid assets as of June 30, 2023, amounted to approximately HK$101 million, a decrease from HK$108 million in 2022[118] - Current assets were approximately HK$176 million, up from HK$159 million in 2022, while current liabilities increased to approximately HK$87 million from HK$75 million[118] - The Group maintained a net current asset position of approximately HK$89 million, compared to HK$84 million in 2022, indicating healthy financial liquidity[118] - The Group had no borrowings as of June 30, 2023, maintaining a zero-gearing ratio, consistent with the previous year[118] Strategic Initiatives - Project Aurora is highlighted as a key strategic initiative aimed at sustainable urbanization and enhancing community quality of life[12] - Future focus will remain on the completion of Project Aurora, which is expected to be a transformative milestone for the Group[16] - The company has established strategic partnerships with international organizations to incorporate cutting-edge technologies and sustainable practices in product development[15] - The company aims to expand its market share while aligning with government strategies to protect vulnerable populations and maintain economic stability[22] Product Development and Innovation - The company continued to invest in the development of next-generation products, including Cloud and Internet of Things solutions, to enhance critical messaging capabilities[27] - The Multitone i-Message® platform successfully migrated to Cloud computing, with sales to the UK public sector healthcare and interest from international markets[29] - The EkoTek® personal security platform saw increased sales in the UK mental healthcare sector, driven by new product developments[34] - The company launched the MaBLE wander alarm wristband solution for elderly and dementia patient care, which integrates with the EkoTek Management System[35] - The next generation EkoTek Hub was released in Q1 2022, enabling larger deployments and supporting more devices in the Mental Healthcare market[64] - The development of a vandal and ligature resistant call point device for the EkoTek range led to the largest deployment of EkoTek solutions in the UK at Camden & Islington Mental Healthcare NHS Trust[65] - The Multitone Digital Alerter ("MDA") is under development, featuring an e-ink display and expected to be released for sales by the end of 2023[98] - The company plans to address market feedback with the launch of both Multitone Aurora™ and MDA in the forthcoming fiscal year, enhancing available solutions and opening new markets[106] Market Performance - The UK sales operation exceeded targets for the fiscal year despite significant challenges, with a focus on achieving increased sales targets in the new fiscal year[105] - The EU market is recovering post-COVID-19, with key distributors in France and Scandinavia increasing their sales[107] - In Oceania, sales have recovered and exceeded pre-pandemic levels, aided by a new distributor in New Zealand[108] - The US market remains behind expectations, although revenue has surpassed the previous period[109] - Component shortages and supply chain interruptions are easing, leading to a recovery in the second half of the fiscal year[91] Financial Management and Compliance - The Group has consistently followed prudent financial management principles, maintaining positive liquidity[133] - The Group does not engage in speculative derivative transactions or structured products, managing foreign exchange risk directly[134] - The Group has complied with all relevant laws and regulations that significantly impact its business and operations during the review year[183] - Compliance procedures are in place to ensure adherence to applicable laws and regulations, with no significant disputes reported with distributors or customers during the year[177][179] Governance and Leadership - The company in 2023 continued to expand its board, enhancing governance structure[155] - The management team includes experienced professionals with extensive backgrounds in finance, technology, and international markets[161][162][163][164] - Employee training and development opportunities are provided to enhance professional knowledge and skills[184] - An Environmental, Social and Governance (ESG) Report will be published alongside the annual report to comply with listing rules[171][175] Dividend Policy - No dividend will be paid for the year ended June 30, 2023, with capital reserved for business expansion and future investment opportunities[181] - The Company has established a dividend policy that allows for the declaration and distribution of dividends, subject to financial performance and other factors[188] - The Board will continually review the dividend policy, with no assurance of specific dividend payments in any given period[190]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失 承擔任何責任。 KANTONE HOLDINGS LIMITED 看 通 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1059） 截至2023年6月30日止年度 全年業績之公佈 全年業績 看通集團有限公司（「本公司」），連同其附屬公司，統稱（「本集團」）之董事（「董事」）會（「董 事會」）宣佈，本集團截至2023年6月30日止年度之綜合業績連同去年之比較數字如下： 綜合損益及其他全面收益表 截至2023年6月30日止年度 2023年 2022年 附註 千港元 千港元 收益 3 128,737 127,755 銷售成本 (54,438) (54,696) 毛利 74,299 73,059 其他收入、收益及虧損 3,551 2,985 按公平值計入損益之金融資產之公平值收益 10,582 — ...

Revenue and Profitability - Revenue for the six months ended December 31, 2022, was HK$52,992,000, a decrease of 15.8% compared to HK$62,870,000 in the previous period[5] - Gross profit for the same period was HK$30,141,000, down 17.3% from HK$36,432,000 in the previous period[5] - Profit for the period increased to HK$4,199,000, representing a 25.8% increase from HK$3,337,000 in the previous period[8] - Total comprehensive income for the period was a loss of HK$4,862,000, compared to a gain of HK$4,924,000 in the previous period[8] - Basic and diluted earnings per share were HK1.61 cents, slightly up from HK1.54 cents in the previous period[8] - Profit before taxation for the six months ended December 31, 2022, was HK$4,245,000, an increase of 19.7% compared to HK$3,545,000 in 2021[18] - The segment result for the technology segment was HK$3,333,000 for the six months ended December 31, 2022, down from HK$6,780,000 in the same period of 2021, reflecting a decrease of approximately 50.9%[44] - Profit attributable to owners of the Company for the six months ended December 31, 2022, was HK$4,199,000, up from HK$3,337,000 in 2021, representing an increase of approximately 25.9%[56] Cash Flow and Financial Position - Cash and cash equivalents decreased to HK$72,646,000 from HK$108,260,000 as of June 30, 2022[11] - Total assets less current liabilities amounted to HK$129,703,000, down from HK$135,672,000 as of June 30, 2022[11] - Net assets decreased to HK$128,417,000 from HK$133,279,000 as of June 30, 2022[11] - Net cash used in operating activities was HK$28,907,000, significantly higher than HK$4,392,000 in the previous year[18] - Cash and cash equivalents at the end of the period were HK$72,646,000, down from HK$102,169,000 at the end of the previous period[18] - The Group incurred finance costs of HK$35,000, a decrease of 90.1% from HK$352,000 in the previous year[18] - The repayment of loans to third parties amounted to HK$5,971,000, slightly lower than HK$6,135,000 in the previous year[18] - The Group's cash used in investing activities was HK$3,481,000, a decrease from HK$10,563,000 in the previous year[18] - The group maintained liquid assets of approximately HK$73 million as of December 31, 2022, down from HK$108 million on June 30, 2022[195] - Current assets were approximately HK$140 million, while current liabilities amounted to approximately HK$61 million, resulting in net current assets of approximately HK$79 million[195] - The group's gearing ratio was 2.7% as of December 31, 2022, compared to zero on June 30, 2022, indicating a shift towards leveraging for business expansion[195][198] Revenue Breakdown - Revenue from technology system sales, including software licensing, was HK$21,967,000, down 17.5% from HK$26,513,000 in the previous year[38] - Revenue from installation and maintenance services decreased to HK$20,468,000, a decline of 15.0% from HK$24,168,000 in 2021[38] - Total revenue for the Group was HK$52,992,000, representing a decrease of 15.8% compared to HK$62,870,000 in the same period last year[38] - Total revenue for the six months ended December 31, 2022, was HK$52,992,000, a decrease from HK$62,870,000 in the same period of 2021, representing a decline of approximately 15.7%[41] - The Group reported total revenue of approximately HK$53 million for the six months ended 31 December 2022, a decrease of approximately 15.9% compared to approximately HK$63 million in the previous period, primarily due to an 11.9% devaluation of the pound sterling[105] Expenses and Cost Management - Distribution costs decreased to HK$11,793,000 from HK$12,901,000 in the previous period, reflecting a reduction of 8.6%[5] - General and administrative expenses decreased by approximately 19% to approximately HK$17 million for the six months ended December 31, 2022, down from approximately HK$21 million in 2021, due to reduced administrative staff costs and legal fees[108] - Key management personnel remuneration for the six months ended December 31, 2022 totaled approximately HK$3.137 million, down from approximately HK$5.543 million in the previous period[101] Asset Management - As of December 31, 2022, the carrying value of property, plant, and equipment was HK$33,846,000, down from HK$38,811,000 as of July 1, 2022, indicating a decrease of approximately 12.8%[61] - The Group's finished goods inventory was HK$11,223,000 as of December 31, 2022, an increase of 7.3% from HK$10,463,000 as of June 30, 2022[70] - The Group's total trade and other receivables reached HK$24,242,000 as of December 31, 2022, compared to HK$23,837,000 as of June 30, 2022, reflecting a slight increase of 1.7%[70] - The Group's trade receivables amounted to HK$12,556,000, a decrease of 5.3% from HK$13,261,000 as of June 30, 2022[70] - The ageing analysis of trade receivables showed that HK$12,059,000 (96.0%) were within 0-60 days past due as of December 31, 2022, compared to HK$10,658,000 (80.5%) as of June 30, 2022[72] Investments and Fair Value - The company reported a fair value gain on financial assets of HK$3,153,000 for the period[5] - The Group recorded an overall fair value gain on financial assets at fair value through profit or loss of approximately HK$4.3 million during the period, attributed to changes in market sentiment on certain stocks[114] - As of December 31, 2022, the fair value of listed equity investments in Hong Kong classified as financial assets at fair value through profit or loss amounted to approximately HK$11 million, consisting of two equity securities listed on the main board of The Stock Exchange of Hong Kong Limited[115] - The Group held 5,700,000 shares in Yuan Heng Gas Holdings Limited, recording an accumulated unrealized loss of HK$1,881,000 as of December 31, 2022[122] - The Group held 180,000 shares in STAR CM Holdings Limited, with an accumulated unrealized gain of HK$4,293,000 as of December 31, 2022[129] Strategic Initiatives and Future Outlook - The company is focusing on R&D to support Cloud and IoT solutions, aiming to develop a competitive advantage despite challenges from the Ukraine conflict[134] - The Multitone i-Message™ platform has been successfully migrated to a Cloud computing instance, leading to increased sales in the UK public sector healthcare[136] - The new Cloud-optimized service architecture for the Multitone i-Message™ platform, under development as "Aurora," is a major focus for R&D[137] - The company is investing in the development of the Multitone Digital Alerter ("MDA"), which will feature an e-ink display, rapid charging, two-way communication, and is scheduled for sale release towards the end of 2023[171] - The management team faces challenges from component shortages, supply chain interruptions, and rising costs due to the ongoing conflict in Ukraine and predicted global economic slump[168][172] Loan Management and Credit Policy - The company maintains a credit assessment process for loans, which includes verifying the identity and financial status of borrowers and guarantors[155][160] - All loans are made using idle funds and are only granted to individuals known to the directors of the subsidiary[154][155] - The company has established procedures for handling delinquent loans, including sending demand letters and potentially taking legal action if necessary[165] - The company’s PRC directors maintain personal contact with borrowers and remind them of repayment obligations one month before due dates[161]

Financial Performance - Revenue for the year ended June 30, 2022, was HK$127,755,000, a decrease of 8.6% from HK$139,069,000 in 2021[6] - Adjusted profit for the year was HK$4,558,000, down 19.6% from HK$5,669,000 in the previous year[6] - Attributable profit for the year was HK$4,558,000, compared to HK$5,689,000 in 2021, reflecting a decrease of 19.9%[6] - Earnings per share for the year was 2.06 HK cents, down from 2.62 HK cents in 2021, representing a decline of 21.4%[6] - Profit attributable to owners of the Company for the year ended June 30, 2022, was approximately HK$4.6 million, down from approximately HK$5.7 million in the previous year, reflecting an 8% decrease in revenue despite an 11% reduction in general and administrative expenses[30] - Earnings per share decreased to HK2.06 cents from HK2.62 cents in the previous year[30] Cash and Assets - Cash and cash equivalents as of June 30, 2022, were HK$108,260,000, a decrease from HK$118,848,000 in 2021[6] - Total assets as of June 30, 2022, were HK$210,187,000, while total equity was HK$133,279,000[6] - Current assets were approximately HK$159 million, a decrease from approximately HK$178 million in 2021, representing a decline of about 10.67%[158] - Current liabilities amounted to approximately HK$75 million, down from approximately HK$91 million in 2021, indicating a reduction of about 17.58%[158] - The Group maintained net current assets of approximately HK$84 million, slightly down from approximately HK$87 million in 2021, a decrease of about 3.45%[158] - The Group had no borrowings as of June 30, 2022, maintaining a zero gearing ratio[158] Cost Management - Distribution costs for the year were approximately HK$24.4 million, a decrease of about 5% from approximately HK$25.7 million in the previous year, primarily due to the negative impact of COVID-19 on travel and the cancellation of trade shows[30] - General and administrative expenses decreased by approximately 11% to approximately HK$46 million from approximately HK$51.8 million in the previous year, attributed to prudent cost control measures[30] - Finance costs decreased to approximately HK$629,000 from approximately HK$1.1 million in the previous fiscal year[31] Strategic Focus and Development - The company is focusing on software development and enhancement, transitioning existing customers from traditional RF solutions to smartphone-based secure messaging[17] - The company aims to adapt to the challenges posed by the pandemic and rising inflation through active measures and strategic adjustments[17] - The management is committed to creating more revenue in a low growth environment, indicating a focus on resilience and innovation[17] - The Group is focusing on expanding its market share and aligning with government strategies to protect vulnerable populations and maintain economic stability[21] - The Group is investing in R&D, particularly in cloud-based solutions, to enhance its competitive advantage in the healthcare sector[35] Partnerships and Innovations - The partnership with Amazon Web Services (AWS) has enabled the Group to offer a reliable cloud platform with over 99.9% availability, supporting the migration of its i-Message solution to the cloud[38] - The company has successfully transitioned its Multitone i-Message solution to the cloud, leveraging a partnership with Amazon Web Services (AWS) to provide a reliable cloud platform for existing healthcare clients[41] - The next generation EkoTek Hub was released in Q1 2022, enabling the deployment of larger EkoTek solutions that support a greater number of devices[46] - The largest EkoTek solution ever deployed in the UK was successfully implemented at Camden & Islington Mental Healthcare NHS Trust, leading to recognition as the Best Mental Health Solution at the Health Tech Digital Awards 2022[47] - The successful innovation in the EkoTek and EkoCare product lines has led to high-profile contracts in the mental healthcare market[45] Economic Outlook - Global economic growth is forecasted to slow from 6.1% in 2021 to 3.2% in 2022, with significant downgrades in Europe due to the war in Ukraine and tighter monetary policy[132][134] - Global inflation is anticipated to reach 6.6% in advanced economies and 9.5% in emerging markets in 2022, reflecting upward revisions of 0.9 and 0.8 percentage points respectively[132][134] - The risks to the economic outlook are overwhelmingly tilted to the downside, indicating potential challenges ahead[132][134] Property Acquisition - The company has acquired a property in the UK for £575,000 through its wholly-owned subsidiary, Multitone Electronics PLC[123] - The acquisition allows Multitone to better control the development of the area around its head office and provides an opportunity to expand office premises[131][133] - Multitone plans to hold the property for investment purposes, leasing it out for rental income while retaining a small portion for its own use[131][134] Management and Governance - Mr. Chan has held 52.46% equity interest in the company through his controlled entity, Cheng Chuang Investment Limited, with 136,628,444 shares as of the report date[186] - Mr. Liu has over 35 years of professional experience in finance and accounting, serving as a non-executive director since October 2020[189] - Ms. To has approximately 10 years of legal experience and has been a non-executive director since July 2017[190] - Mr. Leung has extensive experience in accounting and finance, currently serving as an independent non-executive director since October 2017[193] - The CEO, Mr. Edward Paterson, prioritizes the development of new technologies and solutions in the Multitone product portfolio[200]

Financial Performance - Revenue for the six months ended December 31, 2021, was HK$62,870,000, a decrease of 6.3% compared to HK$66,993,000 in the previous period[6]. - Gross profit for the same period was HK$36,432,000, down 7.1% from HK$39,218,000 in the previous period[6]. - Profit before taxation decreased to HK$3,545,000, representing a decline of 50.1% from HK$7,076,000 in the previous period[10]. - Profit for the period was HK$3,337,000, down 51.6% compared to HK$6,884,000 in the previous period[10]. - Total comprehensive income for the period was HK$4,924,000, a decrease of 62.9% from HK$13,252,000 in the previous period[10]. - Basic and diluted earnings per share were HK1.54 cents, down from HK3.17 cents in the previous period[10]. - The profit for the period ended December 31, 2021, was HK$3,337,000, compared to HK$6,884,000 for the same period in 2020[20]. - Profit attributable to owners of the Company was approximately HK$3.3 million, down from approximately HK$6.9 million in the previous period, primarily due to a decrease in turnover and a significant drop in interest income from money lending activities, which decreased by HK$1.4 million, or about 87.5%[118]. Assets and Liabilities - Non-current assets increased to HK$44,472,000 as of December 31, 2021, compared to HK$38,885,000 as of June 30, 2021[15]. - Current assets decreased to HK$156,169,000 from HK$177,105,000 as of June 30, 2021[15]. - Net assets increased to HK$112,587,000 from HK$107,663,000 as of June 30, 2021[15]. - Total equity remained stable at HK$112,587,000 as of December 31, 2021, compared to HK$107,663,000 as of June 30, 2021[15]. - As of December 31, 2021, total equity amounted to HK$112,587,000, an increase from HK$107,663,000 as of July 1, 2021[20]. - The Group's trade receivables as at 31 December 2021 were HK$14,809,000, slightly down from HK$14,822,000 as at 30 June 2021[77]. - Total inventories as at 31 December 2021 amounted to HK$22,190,000, a decrease from HK$23,105,000 as at 30 June 2021[72]. - The carrying value of property, plant, and equipment increased to HK$41,445,000 as at 31 December 2021 from HK$34,582,000 as at 1 July 2021[67]. - As of December 31, 2021, trade payables amounted to HK$50,458,000, an increase from HK$48,601,000 as of June 30, 2021[94]. - Receipts in advance from customers for the provision of services were HK$22,034,000 as of December 31, 2021, down from HK$24,970,000 as of June 30, 2021[101]. Cash Flow - Cash and cash equivalents at the end of the period were HK$102,169,000, a decrease from HK$118,689,000 at the end of 2020[26]. - Net cash used in operating activities for the six months ended December 31, 2021, was HK$4,392,000, compared to a net cash generated of HK$17,551,000 for the same period in 2020[26]. - The company reported a net cash used in investing activities of HK$10,563,000 for the six months ended December 31, 2021[26]. - The company experienced a decrease in cash and cash equivalents of HK$16,719,000 during the period[26]. Segment Performance - Revenue from technology system sales, including software licensing and maintenance services, was HK$50,681,000, down from HK$55,542,000, representing a decline of 8.3%[39]. - Revenue from technology installation and maintenance services increased to HK$24,168,000, up 11.5% from HK$21,681,000 in the previous year[39]. - The segment result for technology system sales was HK$4,816,000, while the segment result for leasing of system products was HK$1,926,000, contributing to a consolidated segment result of HK$6,780,000[44]. - The Group's performance in the first half of the fiscal year indicates a focus on technology and service offerings, with a notable increase in installation and maintenance services revenue[39]. Corporate Governance and Management - The Group did not declare any interim dividend for the six months ended 31 December 2021, consistent with the previous year[64]. - The Group has resolved not to declare an interim dividend for the six months ended December 31, 2021, consistent with the previous year[116]. - The Company complied with the Corporate Governance Code during the six months ended December 31, 2021, except for the non-executive Director not being appointed for a specific term[195]. - Mr. Liu Ka Lim received a special one-off bonus of HK$540,000 as of December 31, 2021[196]. Strategic Initiatives - The Group's adaptive market strategies helped maintain revenue levels despite pandemic challenges by adjusting the product mix to meet changing market needs[117]. - The Group's future income from rental contracts has been pledged as collateral for defined benefit retirement schemes of certain subsidiaries in the UK[111]. - The Offeror plans to review the existing principal businesses and financial position to formulate future business strategies, which may include asset disposals, acquisitions, and business diversification[136]. - The Company is exploring the possibility of introducing Multitone's products to Hong Kong and other Asian markets, which may require additional working capital[136]. - The Offeror's acquisition strategy may enhance the long-term growth potential of the Group[136]. Market Conditions - The UK economy is projected to grow by 4.7% in 2022 and 2.3% in 2023, with potential deceleration in growth thereafter[156]. - Increased border controls and additional import/export requirements due to Brexit have caused short-term disruptions in the supply chain[156]. - The emergence of new virus variants remains a downside risk, although the economy has adapted to social distancing measures[156]. Employee and Operational Insights - The Group employed about 170 staff globally, with staff costs amounting to approximately HK$32.5 million for the six months ended December 31, 2021, compared to HK$27.3 million for the same period in 2020[181]. - The remuneration and promotion of employees are determined by senior management based on business needs and market terms[181].

Financial Performance - Revenue for the year ended June 30, 2021, was HK$139,069,000, a decrease of 5.9% from HK$146,944,000 in 2020[7] - Adjusted profit for the year was HK$5,669,000, an increase of 45.5% compared to HK$3,897,000 in 2020[7] - Attributable profit for the year was HK$5,689,000, up from HK$3,875,000 in 2020, representing a 46.7% increase[7] - The Group reported total revenue of approximately HK$139 million for the twelve months ended June 30, 2021, a decrease of approximately 5.4% compared to HK$147 million in the previous year due to changes in product mix and reduced marketing activities due to COVID-19[53] - Profit attributable to owners of the Company for the year ended June 30, 2021, was approximately HK$5.7 million, an increase from approximately HK$3.9 million in the previous year, primarily due to a 13.6% decrease in general and administrative expenses to HK$51.8 million[54] - Earnings per share increased to HK$2.62 cents compared to HK$1.94 cents for the previous year, reflecting improved profitability[54] Assets and Liabilities - Cash and cash equivalents as of June 30, 2021, were HK$118,848,000, an increase of 24.5% from HK$95,472,000 in 2020[7] - Total assets as of June 30, 2021, amounted to HK$216,680,000, up 16.3% from HK$186,243,000 in 2020[7] - Equity as of June 30, 2021, was HK$107,663,000, a significant increase from HK$52,821,000 in 2020[7] - Current assets to current liabilities ratio improved to 1.95 from 1.91 in 2020[7] - As of June 30, 2021, the Group had approximately HK$119 million in liquid assets, an increase from approximately HK$95 million in 2020, reflecting a growth of about 25.3%[106] - Current assets were approximately HK$178 million, up from approximately HK$154 million in 2020, indicating a growth of about 15.6%[106] - The Group maintained net current assets of approximately HK$87 million, compared to HK$74 million in 2020, representing an increase of approximately 17.6%[106] - The Group had no borrowings as of June 30, 2021, maintaining a zero gearing ratio, consistent with the previous year[106] Cost Management - Distribution costs for the year were approximately HK$25.7 million, a decrease of about 5.5% from approximately HK$27.2 million in the previous year, impacted by COVID-19 restrictions on travel and the cancellation of trade shows[54] - General and administrative expenses decreased by approximately 13.6% to about HK$51.8 million, down from approximately HK$59.9 million in the previous year, due to prudent cost control and unfilled vacant positions[54] - The decrease in distribution and administrative costs reflects the Group's strategic focus on cost management during challenging market conditions[54] - The Group's performance highlights resilience in profitability despite a decline in revenue, showcasing effective expense management strategies[54] Business Strategy and Outlook - The company plans to focus on multi-directional business expansion as a strategy to adapt to ongoing challenges[18] - The company has taken active measures to overcome difficulties posed by the global pandemic[18] - The management anticipates a negative impact on sales order intake performance due to the COVID pandemic, despite a projected UK economic growth of 6.6% in 2021 and 5.4% in 2022[19] - The Group anticipates business normalization as the pandemic subsides, suggesting a positive outlook for future operations[53] - Future growth may be supported by potential market expansion and new product developments as conditions improve post-pandemic[53] Product Development and Innovation - The company is developing "Project Aurora," a microservices platform expected to launch "Aurora Messaging" in 2022, providing a device-agnostic messaging solution[25] - The initial deliverable from "Project Aurora" will be a cloud-first solution optimized for deployment across multiple regions[25] - Continuous investment in new product development includes the introduction of the ATEX variant to EkoSecure Pager, enhancing safety in explosive risk environments[61] - The new generation of EkoTek® Hubs is set to be released in Q4 2021, increasing the potential size and capability of EkoTek® installations[61] - Multitone's i-Message platform offers a proven ecosystem for critical and non-critical integrated communications, improving efficiencies and response times significantly[61] - The company is adding new features to its RF paging solutions, including Wi-Fi call acknowledgment, to extend the life of legacy products, with a release planned for Q2 2022[76] Market Position and Expansion - Multitone is a market leader in radio security systems and lone-worker solutions, particularly in Germany, Europe's largest economy[39] - The company is expanding its successful German solutions to other European countries with similar market characteristics[40] - The UK market outlook remains positive, benefiting from a robust vaccination program and the removal of many restrictions, allowing businesses to thrive[27] - The UK public sector, including the NHS, is seeing increased funding commitments from the government, enhancing opportunities for Multitone[78] - Multitone is well-positioned to support NHS customers with cloud-first and hybrid solutions as part of the NHS long-term plan[79] Risks and Challenges - The emergence of new virus variants remains a downside risk, although the economy has adapted to social distancing measures[24] - The economic forecasts predict that the UK economy will be several percentage points smaller in 2030 due to Brexit-related impacts[19] - Brexit has caused short-term disruptions in the supply chain due to increased border controls, with long-term economic impacts expected for the UK[68][71] Governance and Management - The Group's financial results for the year ended June 30, 2021, are detailed in the consolidated statement of profit or loss and other comprehensive income[191] - No dividend was recommended for the year ended June 30, 2021, with capital reserved for business expansion and future investment opportunities[191] - The Group emphasizes environmental protection and energy conservation to enhance sustainable development capabilities[178] - The Company will publish an Environmental, Social and Governance (ESG) Report within five months after the end of the financial year[179] - The Group provides on-the-job training and development opportunities to enhance employees' career progression[189] - The Group's financial risk management objectives and policies are outlined in note 5 to the consolidated financial statements[177]

Financial Performance - Revenue for the six months ended December 31, 2020, was HK$66,993,000, a decrease of 13.4% compared to HK$77,444,000 in the previous period[5] - Gross profit for the same period was HK$39,218,000, down from HK$43,905,000, reflecting a gross margin of approximately 58.6%[5] - Profit before taxation increased to HK$7,076,000, up 11.9% from HK$6,320,000 in the previous period[8] - Profit for the period was HK$6,884,000, compared to HK$6,133,000, representing an increase of 12.2%[8] - Total comprehensive income for the period was HK$13,252,000, significantly higher than HK$6,479,000 in the previous period, marking a 104.0% increase[8] - The total comprehensive income for the period ended 31 December 2020 was HK$13,252,000, compared to HK$1,256,000 for the same period in 2019, indicating a significant increase[18] - Profit before taxation for the Group was HK$7,076,000, compared to HK$6,320,000 for the same period in 2019, indicating an increase of 12.0%[41] - Profit attributable to owners of the Company for the six months ended 31 December 2020 was approximately HK$6.9 million, an increase from HK$6.1 million for the previous period, with earnings per share remaining at HK$0.03[107] Cash Flow and Liquidity - Net cash generated from operating activities for the six months ended 31 December 2020 was HK$17,551,000, compared to a net cash used of HK$3,638,000 in the same period of 2019[24] - Cash and cash equivalents at the end of the period were HK$118,689,000, an increase from HK$79,570,000 at the end of December 2019[24] - Net current assets increased to HK$83,327,000 from HK$73,643,000, reflecting improved liquidity[13] - Current assets were approximately HK$160 million, up from approximately HK$154 million as of June 30, 2020, while current liabilities decreased to approximately HK$76 million from approximately HK$81 million[134] - The Group's net current assets stood at approximately HK$83 million, compared to approximately HK$74 million as of June 30, 2020, indicating a healthy level of financial liquidity[134] - As of December 31, 2020, the Group had approximately HK$119 million in liquid assets, an increase from approximately HK$95 million as of June 30, 2020[134] Equity and Assets - Total equity rose to HK$66,073,000, up from HK$52,821,000, indicating a stronger financial position[13] - The company had a total equity of HK$66,073,000 as of 31 December 2020, an increase from HK$69,658,000 at the end of 2019[18] - The Group's trade receivables decreased to HK$11,185,000 as at 31 December 2020, down from HK$14,299,000 as at 30 June 2020, indicating a reduction of approximately 21.5%[71] - The total inventories increased to HK$24,391,000 as at 31 December 2020, compared to HK$20,721,000 as at 30 June 2020, reflecting an increase of approximately 17.9%[66] - The carrying value of property, plant, and equipment as at 31 December 2020 was HK$31,745,000, up from HK$27,921,000 as at 1 July 2020, representing an increase of approximately 13.5%[62] Expenses and Costs - Research and development costs expensed were HK$222,000, a decrease from HK$1,162,000 in the previous period, indicating a focus on cost management[5] - Distribution costs for the six months ended December 31, 2020 were approximately HK$12.9 million, a decrease of about 10.42% from approximately HK$14.4 million for the previous period[107] - General and administrative expenses decreased by approximately 2.68% to approximately HK$21.8 million for the six months ended December 31, 2020, compared to approximately HK$22.4 million in 2019[107] - The Group's finance costs were HK$436,000, a slight increase from HK$341,000 in the previous year[41] Business Operations and Strategy - The Group aims to develop new system solution products focusing on IoT applications for potential customers in the Mainland China market[111] - The pandemic has prompted the Group to explore new business opportunities in high-tech and smart products, indicating ample future business prospects[110] - The company is developing new smart communication solutions, including IoT applications, targeting potential customers in mainland China, although progress has been delayed due to the pandemic[115] - Despite the pandemic, the company has maintained stable business operations, with a modest growth in demand during the review period[118] - The Group anticipates continued constraints on site installations and business discussions due to the ongoing pandemic, impacting short-term revenue[131] Shareholder and Corporate Governance - The Company has a share option scheme for eligible persons, including directors, to subscribe for shares[167] - The Company complied with the Corporate Governance Code provisions, except for the non-specific term appointment of one non-executive director[172] - The Audit Committee consists of three independent non-executive Directors as of December 31, 2020[178] - The Company has established an Audit Committee to oversee financial practices[181] - All Directors confirmed adherence to the required standards set out in the Model Code during the period[180] Market and Economic Conditions - The management anticipates a negative impact on sales order intake due to the COVID pandemic and has set a prudent budget for the 2020/21 financial year[122] - The German subsidiary is experiencing a significant impact from the pandemic, with sales intake slowing down due to lockdowns and travel restrictions[123] - Economic forecasts predict a reduction in UK GDP by as much as 6% during 2021 compared to forecasts if the UK had remained within the EU[125] - The impact of Brexit is expected to cause long-term effects on the UK economy, with predictions of several percentage points reduction in GDP by 2030[128]

Financial Performance - Revenue for the year ended June 30, 2020, was HK$146,944,000, an increase of 2.1% from HK$143,966,000 in 2019[3] - Adjusted profit for the year was HK$3,897,000, compared to HK$1,793,000 in 2019, reflecting a significant improvement[3] - Attributable profit for the year was HK$3,875,000, up from HK$2,437,000 in 2019, indicating a positive trend in profitability[3] - The Group reported a revenue of approximately HK$147 million for the year, an increase of approximately HK$3 million compared to HK$144 million in the previous year[25] - Profit attributable to owners of the Company was approximately HK$3.9 million, representing an increase of approximately 62.5% from HK$2.4 million in the previous fiscal year[25] - Earnings per share increased to HK$1.94 cents from HK$1.24 cents in the previous year[25] Assets and Liabilities - Cash and cash equivalents as of June 30, 2020, were HK$95,472,000, an increase from HK$83,365,000 in 2019[3] - Total assets as of June 30, 2020, amounted to HK$186,243,000, compared to HK$162,438,000 in 2019, showing growth in asset base[3] - The company maintained a current assets to current liabilities ratio of 1.91 as of June 30, 2020, slightly down from 1.92 in 2019[3] - Current assets were approximately HK$154 million, up from HK$134 million in 2019, while current liabilities amounted to approximately HK$81 million, compared to HK$70 million in 2019[64] - The Group maintained net current assets of approximately HK$74 million, an increase from HK$64 million in 2019, indicating a healthy level of financial liquidity[64] - The Group had no borrowings as of June 30, 2020, maintaining a zero gearing ratio, consistent with the previous year[64] Business Strategy and Operations - The company plans to actively expand its business in response to the challenges posed by the COVID-19 pandemic[15] - The company aims to overcome difficulties and adversity through multi-directional business expansion strategies[15] - The Group's strategy focused on creating revenue and expanding business to address the challenges posed by the pandemic[18] - The Group is developing a new business model for potential customers in mainland China and Hong Kong, focusing on IoT integration as a key development area[32] - The Group aims to leverage technology and smart products to address the changing business environment and societal needs[32] - The company is exploring new market opportunities and potential expansions to enhance its competitive position[86] Impact of COVID-19 - The pandemic has led to an unprecedented demand for smart communication solutions, particularly in the medical industry[20] - Multitone UK provided critical communications equipment on a non-profit basis to 4 temporary hospitals in the UK to support COVID-19 patients[17] - The company maintained normal operations across all business units, including maintenance centers, ensuring continuous support for medical and public services during the pandemic[20] - Automated solutions for tracking hospital beds and medical equipment significantly improved resource utilization efficiency and reduced infection risks for frontline personnel[20] - The Group aims to assist customers with stable smart communication technology during the ongoing COVID-19 crisis[47] Technology and Innovation - The Group's messaging app for NHS Trusts in the UK meets all requirements for a communications tool, providing secure messaging and complying with data protection regulations[32] - The integration of Multitone UK i-Message with existing critical paging systems allows NHS Trusts to streamline communications, reducing complexity in clinical workflows[35] - Multitone UK's asset tracking and management system, utilizing RFID or Bluetooth Low Energy tags, enhances efficiency by digitizing the management of hundreds or thousands of movable items[35] - The personal alarm system provided by Multitone UK enables staff to call for help from anywhere on the premises, including areas with weak signal reception, improving staff safety and confidence[38] - The Group is committed to promoting IoT solutions as a means to revolutionize business operations and mitigate the impacts of the COVID-19 pandemic[38] Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance and transparency in its operations[85] - The Group's compliance procedures ensure adherence to all applicable laws and regulations, with no material disputes reported with distributors or customers during the year[95] - The Group will publish an Environmental, Social and Governance (ESG) Report within five months after the end of the financial year, in compliance with the Listing Rules[92] - The Group's financial results for the year ended June 30, 2020, are detailed in the consolidated statement of profit or loss and other comprehensive income[95] Shareholder Information - The Group aims to create greater benefits and a better future for its shareholders[22] - The Group does not recommend any payment of final dividend for the year ended June 30, 2020, maintaining a dividend of Nil for 2019[95] - The Board established a dividend policy in December 2018, which allows for the declaration and distribution of dividends based on various financial factors[98] - The Group's retained earnings and distributable reserves are considered when evaluating dividend payments, alongside cash flow and future expansion plans[99] Employee and Management - The Group provides on-the-job training and development opportunities to enhance employees' career progression and values their health and well-being[95] - The management team is focused on strategic growth and operational efficiency, leveraging their extensive industry experience[86] - The company has a diverse board with members holding qualifications from recognized accounting bodies, ensuring robust financial management[85] Market and Customer Relations - For the year ended June 30, 2020, sales to the five largest customers accounted for approximately 32.2% of total revenue, with the largest customer contributing about 18.6%[189] - Purchases from the five largest suppliers accounted for approximately 14.8% of total purchases, with the largest supplier contributing about 4.0%[189] - The company employed about 175 full-time and part-time staff globally as of June 30, 2020[189]