Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 14,996,092 thousand, a decrease of 12.7% compared to HKD 17,180,654 thousand in 2021[2] - Profit attributable to owners of the company was HKD 300,663 thousand, down 29.5% from HKD 426,571 thousand in the previous year[2] - Basic earnings per share decreased to HKD 48.04, a decline of 29.5% from HKD 68.16 in 2021[2] - Total comprehensive income for the period was HKD 391,192 thousand, down from HKD 546,446 thousand in 2021[5] - Gross profit for the period was HKD 723,126 thousand, compared to HKD 847,486 thousand in the same period last year[3] - The company reported a net loss of HKD 36,741 thousand from other gains and losses, compared to a gain of HKD 35,690 thousand in the previous year[3] - The company incurred a total tax expense of HKD 70,339 thousand for the six months ended June 30, 2022, compared to HKD 110,419 thousand in the same period of 2021, representing a decrease of approximately 36.3%[22] - The group recorded a net cash outflow from operating activities of HKD 1,169,795,000 for the six months ended June 30, 2022, compared to a net cash outflow of HKD 124,531,000 in the same period last year[46] Dividends - The interim dividend per share was HKD 10.00, down 33.3% from HKD 15.00 in the previous year[2] - The company declared an interim dividend of HKD 0.10 per share for 2022, down from HKD 0.15 per share in 2021[34] Assets and Liabilities - Current assets as of June 30, 2022, totaled HKD 7,739,244 thousand, compared to HKD 7,836,642 thousand at the end of 2021[7] - Current liabilities decreased to HKD 5,967,391 thousand as of June 30, 2022, from HKD 6,216,080 thousand at the end of 2021, showing a reduction of about 4%[8] - The company's total liabilities were HKD 5,967,391 thousand as of June 30, 2022, down from HKD 6,216,080 thousand at the end of 2021, indicating a decrease of approximately 4%[8] - The company's total assets less current liabilities amounted to HKD 3,249,577 thousand as of June 30, 2022, an increase from HKD 3,117,869 thousand at the end of 2021, marking a growth of about 4.22%[8] - Total equity increased to HKD 2,984,228 thousand as of June 30, 2022, up from HKD 2,843,287 thousand at the end of 2021, representing a growth of approximately 4.95%[8] Cash Flow - The net cash increase for the period was HKD 103,925 thousand, a significant drop from HKD 928,943 thousand in the same period of the previous year[11] - Financing activities generated a net cash inflow of HKD 1,278,913 thousand for the six months ended June 30, 2022, compared to HKD 1,055,541 thousand in the previous year, reflecting a growth of approximately 21.1%[11] - The cash and cash equivalents at the end of the period were HKD 1,862,902 thousand, down from HKD 2,095,925 thousand at the end of 2021, reflecting a decrease of approximately 11.1%[11] Revenue Breakdown - Customer contract revenue for the six months ended June 30, 2022, was HKD 14,982,682 thousand, down from HKD 17,167,897 thousand in the previous year, indicating a decrease of about 12.5%[20] - Revenue from the sale of electronic components and semiconductors was HKD 14,919,387 thousand for the six months ended June 30, 2022, compared to HKD 17,111,032 thousand in 2021, reflecting a decline of approximately 12.9%[16] - The company reported a significant contribution from a major customer, with revenue of HKD 5,845,034 thousand for the six months ended June 30, 2022, down from HKD 9,200,559 thousand in the same period of 2021, a decrease of about 36.5%[21] - Revenue from LED lighting and display products was HKD 30,855 thousand for the six months ended June 30, 2022, compared to HKD 20,053 thousand in the previous year, indicating an increase of approximately 53.5%[16] - The company reported a rental income of HKD 1,397 thousand from LED lighting and display products for the six months ended June 30, 2022, up from HKD 692 thousand in the same period of 2021, reflecting an increase of about 102.6%[20] Inventory and Receivables - Inventory increased to HKD 2,892,841 thousand from HKD 2,654,073 thousand in the previous year[7] - Trade and other receivables decreased to HKD 1,554,732 thousand from HKD 2,125,160 thousand in 2021[7] - Trade receivables as of June 30, 2022, amounted to HKD 1.443 billion, a decrease from HKD 1.851 billion as of December 31, 2021[28] - The total amount of trade and other receivables was HKD 1.555 billion as of June 30, 2022, down from HKD 2.125 billion at the end of 2021[30] Corporate Governance and Compliance - The company has complied with the corporate governance code, with specific deviations noted regarding insurance arrangements for directors and the separation of the roles of chairman and CEO[60] - The audit committee has reviewed the accounting principles, internal controls, risk management, and the unaudited interim financial statements for the six months ended June 30, 2022[61] - The company has adopted the standard code for securities transactions by directors, confirming that all directors complied with the code during the six-month period[62] Market and Strategic Outlook - The global smartphone shipment is expected to decline by 5.8% year-on-year in 2022, impacting demand for mobile phones[37] - The company plans to expand its semiconductor supplier base and regional sales network to provide comprehensive design and supply chain services to target customers in Greater China[36] - The group is monitoring inventory levels and managing operating costs in response to challenges such as high inflation and supply chain disruptions, aiming to maintain competitiveness in the Greater China region[42] - The group ranked as the 9th largest semiconductor distributor globally and the largest in China and Hong Kong based on revenue, according to Gartner data[42] Employee and Community Engagement - The board expresses gratitude to all employees for their contributions during challenging times and thanks shareholders, customers, suppliers, and business partners for their continued support[63] - The group employed approximately 450 employees in the Greater China region as of June 30, 2022, ensuring competitive compensation and benefits[49]

Financial Performance - The group's revenue for the year ended December 31, 2021, reached HKD 35,298 million, a 75% increase from HKD 20,164 million in 2020[7] - The profit attributable to shareholders for the same period was HKD 713 million, representing a 172% increase compared to HKD 262 million in the previous year[7] - The basic earnings per share rose to HKD 113.96, up 172% from HKD 41.85 in 2020[7] - The gross profit for the year was HKD 1,587 million, an increase of 82.1% from HKD 871 million in 2020, with a gross margin of 4.5%[13] - In 2021, the company recorded sales revenue of HKD 35.14 billion, an increase of 76% compared to HKD 19.95 billion in the previous year[15] - Total revenue for the year ended December 31, 2021, was HKD 35,297,778, an increase of 75.0% from HKD 20,164,341 in 2020[117] - Net profit for the year was HKD 925,134, up 164.5% from HKD 349,883 in 2020[117] - Total comprehensive income for the year was HKD 944,944, compared to HKD 455,225 in 2020, marking a rise of 107.5%[118] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.30 per share, bringing the total dividend for the year to HKD 0.45, a 114% increase from HKD 0.21 in 2020[14] - The company has adopted a dividend policy prioritizing cash dividends and sharing profits with shareholders, subject to board discretion and shareholder approval[63] - The company proposed a final dividend of HKD 0.30 per share for shareholders listed on the register as of May 30, 2022[62] Customer and Market Position - The company serves over 10,000 customers, including more than 100 well-known semiconductor suppliers[1] - The group ranked as the 9th largest semiconductor distributor globally and the largest in China and Hong Kong by revenue according to Gartner[1] - The company achieved significant revenue growth in the mobile phone segment by providing competitive products to major Chinese smartphone manufacturers[17] Financial Health and Ratios - The company's current ratio improved to 126% as of December 31, 2021, compared to 117% in the previous year[26] - The net capital debt ratio decreased to 21% from 38% year-on-year, with net borrowings of approximately HKD 596.66 million[26] - Operating cash inflow for 2021 was HKD 348.3 million, compared to HKD 332.0 million in 2020[27] - The company's distributable reserves as of December 31, 2021, amounted to HKD 225,446,000, a decrease from HKD 400,950,000 in 2020[68] Governance and Management - The group has a strong management team with over 20 years of experience in the electronics industry, including key executives responsible for overall administration and sales[36] - The group has a diverse board of directors, including independent non-executive directors with extensive experience in finance and accounting[35] - The board consists of 5 executive directors, 1 non-executive director, and 4 independent non-executive directors, with a total of 11 directors[38] - The company adhered to the corporate governance code as per the Hong Kong Stock Exchange rules for the year ending December 31, 2021, with specific deviations noted[37] Risk Management - The company faced various risks, including exchange rate risk, interest rate risk, credit risk, and liquidity risk, which are monitored closely[75] - The group has established foreign exchange forward contracts to hedge against foreign currency risks associated with sales, procurement, and bank deposits primarily in USD and RMB[28] Charitable Contributions - The company actively contributed HKD 1.5 million to charitable organizations in Hong Kong and China in 2021[23] - The company made charitable donations of approximately HKD 1,507,000 during the year[104] Inventory and Assets - The carrying amount of inventory as of December 31, 2021, was HKD 2,654,073,000, with a provision for obsolete and slow-moving inventory of HKD 132,155,000[108] - Total assets increased to HKD 7,836,642,000 in 2021 from HKD 5,692,336,000 in 2020, representing a growth of approximately 37.6%[119] - Inventory rose significantly to HKD 2,654,073,000 in 2021, up from HKD 1,801,012,000 in 2020, marking an increase of about 47.4%[119] Financial Reporting and Compliance - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2021[105] - The company is committed to high levels of corporate governance as a key to business development and shareholder protection[37] - The group’s financial statements include appropriate disclosures as required by the Listing Rules and the Hong Kong Companies Ordinance[142] Future Outlook - The company plans to focus on the long-term demand for complex electronic components supporting 5G and data centers as a key growth market[22] - The group anticipates that the application of new and revised Hong Kong Financial Reporting Standards will not have a significant impact on the consolidated financial statements in the foreseeable future[140]

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 17,180,654, representing a 105.7% increase compared to HKD 8,350,516 in the same period of 2020[4] - Profit attributable to owners of the company for the same period was HKD 426,571, a significant increase of 227.2% from HKD 130,377 in 2020[4] - Basic earnings per share rose to HKD 68.16, up 227.2% from HKD 20.83 in the previous year[6] - Gross profit for the six months was HKD 847,486, compared to HKD 400,490 in the same period last year[5] - Total comprehensive income for the period was HKD 546,446, up from HKD 170,935 in 2020[6] - The company reported a net profit before tax of HKD 656,573, compared to HKD 204,444 in the previous year[5] - The total comprehensive income attributable to owners for the six months ended June 30, 2021, was HKD 1,834,554, compared to HKD 1,622,350 in the same period of 2020, reflecting an increase of approximately 13.1%[10] - Customer contract revenue reached HKD 17,167,897, up 105.0% from HKD 8,341,857 in the previous year[19] - Sales of electronic components and semiconductors amounted to HKD 17,111,032, a significant increase from HKD 8,228,426, representing a growth of 107.5%[15] Dividends and Shareholder Returns - The interim dividend per share increased to HKD 15.00, reflecting a 233.3% rise from HKD 4.50 in 2020[4] - The company declared an interim dividend of HKD 0.15 per share, significantly higher than HKD 0.045 per share in 2020[33] Assets and Liabilities - Cash and cash equivalents increased to HKD 2,095,925 as of June 30, 2021, compared to HKD 1,166,982 at the end of 2020[7] - Total assets of the company as of June 30, 2021, were HKD 7,340,176, an increase from HKD 5,692,336 at the end of 2020[7] - Total liabilities increased to HKD 6,055,066 as of June 30, 2021, compared to HKD 4,847,615 at the end of 2020, marking an increase of approximately 24.9%[8] - The equity attributable to owners of the company rose to HKD 2,179,582 as of June 30, 2021, up from HKD 1,855,757 at the end of 2020, indicating a growth of about 17.4%[8] - The company’s retained earnings stood at HKD 1,442,953 as of June 30, 2021, compared to HKD 1,570,295 in the previous period, showing a decrease of approximately 8.1%[10] Cash Flow and Operating Activities - The company reported a net cash outflow from operating activities of HKD (124,531) for the six months ended June 30, 2021, an improvement from HKD (890,888) in the prior year[11] - The financing activities generated a net cash inflow of HKD 1,055,541 for the six months ended June 30, 2021, compared to HKD 999,532 in the same period of 2020, reflecting a slight increase of 5.6%[11] - The group recorded a net operating cash outflow of HKD 124,531,000 for the six months ended June 30, 2021, compared to a net outflow of HKD 890,888,000 in the same period last year[42] Customer and Market Insights - Major customer A contributed HKD 9,200,559, accounting for over 10% of total revenue, compared to HKD 4,653,253 in the prior period[20] - The company’s five largest customers accounted for 65% of total revenue during the review period, consistent with the previous year[27] Operational Efficiency - Inventory turnover period and average accounts payable turnover period were 20 days and 29 days respectively, compared to 44 days and 35 days in 2020[42] - The company maintained a current ratio of 121% as of June 30, 2021, compared to 117% at the end of 2020[41] Employee and Community Engagement - The vaccination rate of employees in Hong Kong has exceeded 90% to mitigate the impact of COVID-19 on public health and society[59] - The chairman wishes good health to all stakeholders, reflecting the company's commitment to employee and community well-being[59] - The company expresses gratitude to shareholders, customers, suppliers, and business partners for their long-term support and trust[59] Corporate Governance - The board believes that the current arrangement of having the same individual serve as both chairman and CEO is acceptable and in the best interest of the group[56] - The audit committee has reviewed the accounting principles and policies, internal controls, and risk management for the six months ended June 30, 2021[57]

Financial Performance - Revenue for 2020 was HKD 20,164 million, representing a 10% increase from HKD 18,403 million in 2019[27]. - Profit attributable to owners for 2020 was HKD 262 million, an 11% increase from HKD 236 million in 2019[27]. - Basic earnings per share for 2020 were HKD 41.85, up 11% from HKD 37.78 in 2019[27]. - The group's revenue increased by 9.6% to HKD 20,164,341,000 for the year ended December 31, 2020, compared to HKD 18,402,901,000 in the previous year[34]. - Shareholders' profit attributable to the company increased by 10.8% to HKD 261,897,000, compared to HKD 236,435,000 in the previous year[34]. - The component team recorded sales revenue of HKD 19.95 billion, an increase of 11% from HKD 18.02 billion in the previous year[37]. - The net profit for the year was HKD 349,883 thousand, compared to HKD 316,997 thousand in 2019, reflecting an increase of approximately 10.3%[155]. - The total comprehensive income for the year was HKD 455,225 thousand, significantly higher than HKD 293,150 thousand in 2019, representing an increase of approximately 55.3%[155]. Dividends and Shareholder Returns - The company maintained a total dividend of HKD 21.00 per share, unchanged from the previous year[27]. - The total dividend for the year is proposed to be HKD 21.00 per share, consistent with the previous year[35]. - The company has adopted a dividend policy prioritizing cash dividends while considering overall business conditions, financial performance, and capital needs[97]. - The company proposed a final dividend of HKD 0.165 per share for shareholders on the register as of May 27, 2021[96]. Market Position and Strategy - The company has served over 100 well-known semiconductor suppliers and more than 10,000 customers in the Greater China region[32]. - The company has been ranked among the top 10 global semiconductor distributors by Gartner since 2018 and is the largest semiconductor distributor in China and Hong Kong[32]. - The group plans to focus on the automotive electronics market, which is expected to be the fastest-growing segment in the semiconductor industry[45]. - The group aims to leverage its strong financial position and local sales teams to maintain a competitive edge in the Greater China region[45]. Operational Highlights - Despite challenges from the global pandemic, the company achieved growth in both revenue and profit in 2020[33]. - The company focuses on electronic supply chain management services, including product design, development, procurement, quality assurance, and logistics management[20]. - The group employed around 450 employees in the Greater China region as of December 31, 2020, ensuring competitive compensation and benefits[52]. Financial Position and Ratios - As of December 31, 2020, the group's current ratio was 117%, slightly down from 118% on December 31, 2019[49]. - The net capital debt ratio decreased to 38% from 53% year-on-year, with net borrowings of approximately HKD 802,125,000 compared to HKD 970,612,000 in 2019[49]. - The accounts receivable turnover period increased to approximately 47 days from 38 days in 2019[49]. - The inventory turnover period and average accounts payable turnover period were approximately 34 days and 54 days, respectively, compared to 18 days and 27 days in 2019[49]. Corporate Governance - The board consists of 5 executive directors and 4 independent non-executive directors, with a total of 12 directors responsible for the company's strategic direction and financial performance[63]. - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance throughout the review year[67]. - The company believes that all independent non-executive directors meet the independence criteria as defined by the listing rules[64]. - The board is responsible for ensuring that the company adheres to high standards of corporate governance, which is deemed essential for business development and shareholder protection[62]. Risk Management - The company faces various risks, including exchange rate risk, interest rate risk, credit risk, and liquidity risk[109]. - The company has established short-term foreign exchange forward contracts to hedge against foreign currency risks related to sales and procurement[51]. Environmental Responsibility - The company is committed to environmental responsibility by using LED lighting and eco-friendly materials[104]. Related Party Transactions - The total value of the group's ongoing related party transactions with Foxconn for the year ended December 31, 2020, includes purchases of electronic products amounting to HKD 1,986,605,000 and sales of electronic products amounting to HKD 1,671,841,000[134]. Audit and Compliance - The independent auditor confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2020[143]. - The audit committee held two meetings in 2020 to review the group's interim and annual performance, financial reports, compliance procedures, and risk management systems[69]. Employee Compensation - The company continues to prioritize employee performance-based discretionary bonuses linked to financial results[52]. - For the fiscal year ending December 31, 2020, the remuneration for key management personnel ranged from HKD 1,000,000 or below (5 individuals), HKD 1,000,001 to HKD 1,500,000 (3 individuals), and over HKD 1,500,000 (3 individuals)[63].

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 8,350,516, slightly up from HKD 8,350,449 in 2019[4] - Profit attributable to owners of the company increased by 25.9% to HKD 130,377 compared to HKD 103,515 in the previous year[4] - Basic earnings per share rose by 25.9% to HKD 20.83 from HKD 16.54 in 2019[6] - Total comprehensive income for the period was HKD 170,935, compared to HKD 138,975 in 2019[6] - The company reported a profit of HKD 130,377,000, an increase from HKD 103,515,000 in the same period of 2019, representing a growth of approximately 26%[25] - Gross profit decreased by 3.8% to HKD 400,490,000, with a gross margin of 4.8%, down from 5.0% year-on-year[39] - Net profit increased by 25.9% to HKD 130,377,000, attributed to cost control measures that reduced operating costs[39] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 4.50 per share, up 12.5% from HKD 4.00 in the previous year[4] - The company declared an interim dividend of HKD 0.045 per share, up from HKD 0.040 per share in 2019[30] Assets and Liabilities - Non-current assets as of June 30, 2020, totaled HKD 1,569,821, slightly down from HKD 1,583,364 at the end of 2019[7] - As of June 30, 2020, current liabilities increased to HKD 4,654,486 thousand from HKD 3,418,105 thousand, representing a 36.2% increase year-over-year[8] - Total assets minus current liabilities amounted to HKD 2,322,923 thousand as of June 30, 2020, up from HKD 2,194,666 thousand at the end of 2019, reflecting a 5.8% increase[8] - The total liabilities as of June 30, 2020, were HKD 4,654,486 thousand, which is a substantial increase compared to the previous year[8] - The company’s bank borrowings due within one year increased significantly to HKD 2,898,702 thousand from HKD 1,799,638 thousand, reflecting a 61.2% increase[8] - The current ratio as of June 30, 2020, was 116%, down from 118% at the end of 2019[40] - The net debt-to-equity ratio increased to 99% from 53% at the end of 2019, with net borrowings of approximately HKD 1,956,561,000[40] Cash Flow - The net cash used in operating activities for the six months ended June 30, 2020, was HKD (890,888) thousand, compared to HKD 544,454 thousand in the same period of 2019, indicating a significant decline[11] - The company reported a cash outflow from operating activities of HKD 890,888,000 for the six months ended June 30, 2020, compared to a cash inflow of HKD 544,454,000 in the same period last year[41] - The company reported a net cash inflow from financing activities of HKD 999,532 thousand for the six months ended June 30, 2020, compared to a cash outflow of HKD (484,834) thousand in the same period of 2019[11] Revenue Breakdown - Customer contract revenue reached HKD 8,341,857 for the six months ended June 30, 2020, compared to HKD 8,336,368 in the previous year, indicating a marginal increase[18] - Sales of electronic components and semiconductors amounted to HKD 8,228,426, up from HKD 8,134,614 year-on-year, reflecting a growth of approximately 1.15%[15] - Revenue from LED lighting and display products decreased to HKD 20,096 from HKD 48,253, representing a decline of about 58.3%[15] - Rental income from investment properties was HKD 8,305, down from HKD 8,806, showing a decrease of approximately 5.7%[20] - The revenue from household appliances and commercial equipment sales was HKD 42,694, down from HKD 96,129, indicating a decrease of about 55.6%[15] - Major customer A contributed HKD 4,653,253 to revenue, slightly increasing from HKD 4,648,607 in the previous year, indicating stable reliance on key clients[19] - The company noted that five major customers accounted for 65% of total revenue during the review period, consistent with the previous year[27] Inventory and Receivables - Inventory increased significantly to HKD 1,943,606 from HKD 841,591 in the previous year[7] - Trade and other receivables decreased to HKD 1,082,104 from HKD 1,272,100 in 2019[7] - Trade receivables as of June 30, 2020, amounted to HKD 1,007,960,000, down from HKD 1,187,720,000 as of December 31, 2019, indicating a decrease of approximately 15%[27] - The company provided trade customers with credit terms ranging from 30 to 120 days[23] Other Financial Metrics - The company’s retained earnings stood at HKD 1,442,953 thousand as of June 30, 2020, compared to HKD 1,573,330 thousand previously, indicating a decrease in retained earnings[9] - The company’s non-controlling interests increased to HKD 221,762 thousand from HKD 212,204 thousand, showing a growth of 4.0%[9] - The company’s depreciation of property, plant, and equipment increased to HKD 20,193,000 from HKD 19,892,000 year-over-year[24] - The company’s other income increased significantly to HKD 9,729,000 from HKD 7,271,000, reflecting a growth of approximately 33.8%[26] - The company’s trade payables as of June 30, 2020, were HKD 1,507,438,000, an increase from HKD 1,305,802,000 as of December 31, 2019, representing a growth of approximately 15.5%[29] Strategic Initiatives - The company plans to monitor the ongoing impact of COVID-19 and the US-China conflict, adjusting strategies as necessary to ensure sustainable growth[38] - The company launched LED UV-C health care products under the brand Life In Motion, responding to strong market demand during the pandemic[34] Corporate Governance - The company has complied with the corporate governance code, with specific deviations noted regarding the separation of the roles of Chairman and CEO[53] - The audit committee reviewed the accounting principles, internal controls, and risk management for the six months ending June 30, 2020[54]

Financial Performance - The group's revenue for the year ended December 31, 2019, decreased by 27% to HKD 18,403 million from HKD 25,274 million in 2018[24]. - The profit attributable to shareholders for 2019 was HKD 236 million, a decrease of 25% compared to HKD 313 million in 2018[28]. - The basic earnings per share for 2019 were HKD 37.80, down from HKD 50.03 in 2018, representing a 25% decline[24]. - The gross profit for the year was HKD 898 million, a slight decrease of 2.8% from HKD 924 million in the previous year, with a gross margin of 4.9%[28]. - The semiconductor distribution segment recorded sales revenue of HKD 18.02 billion, a decrease of 27% compared to HKD 24.83 billion in the previous year[30]. - The group achieved significant revenue growth in the consumer electronics segment by providing competitive chip systems and solutions, driven by increased demand for true wireless stereo headphones and 5G base stations[33]. - The group recorded a revaluation surplus of HKD 29,757,000 for investment properties, with a total valuation of HKD 733,900,000 as of December 31, 2019[83]. - The group’s distributable reserves amounted to HKD 392,942,000 as of December 31, 2019, an increase from HKD 251,301,000 in 2018[86]. - The company reported a profit of HKD 236,435,000 for the year, contributing to a total comprehensive income of HKD 293,150,000[148]. - The company's profit attributable to owners for the year ended December 31, 2019, was HKD 236,435,000, a decrease of 24.5% from HKD 313,095,000 in 2018[142]. - Total comprehensive income attributable to owners was HKD 212,588,000, down 40.5% from HKD 357,463,000 in the previous year[142]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.17 per share, maintaining the total dividend for the year at HKD 0.21 per share, unchanged from 2018[29]. - The board proposed a final dividend of HKD 0.17 per share to shareholders listed on June 29, 2020[78]. - The company has adopted a dividend policy prioritizing cash distributions to shareholders while considering overall business conditions and financial performance[79]. Market and Economic Conditions - The impact of the US-China trade dispute and weak economic growth in China significantly affected the group's performance in 2019[28]. - The global smartphone market shipment volume was 1.37 billion units in 2019, a decline of 2% from 2018, with consumers awaiting competitively priced 5G smartphones[31]. - The company anticipates significant market demand for memory chips and display solutions in the 5G smartphone market in China[37]. Corporate Governance - The board consists of four executive directors and four independent non-executive directors, with a focus on corporate strategy and internal controls[52]. - The company continues to adhere to high standards of corporate governance, believing it is key to business development and shareholder protection[51]. - The audit committee held two meetings in 2019 to review the group's interim and annual performance, financial reports, compliance procedures, and the effectiveness of risk management and internal controls[57]. - The board consists of eight members, with four being independent non-executive directors, promoting critical review and control of management processes[63]. - The company has adopted a board diversity policy to enhance performance quality by considering various factors such as gender, age, and professional experience in board member selection[63]. - All independent non-executive directors have confirmed their independence according to the listing rules[54]. - The company has received annual confirmations from four independent non-executive directors regarding their independence[54]. - The board believes that the separation of the roles of chairman and CEO is acceptable given the current business scale[54]. - The company ensures compliance with the standards for securities trading by its directors throughout the review year[55]. - The board has achieved measurable diversity goals, with at least one-third of members being independent non-executive directors and at least one member holding accounting or other professional qualifications[65]. - The board held four meetings during the year, with all directors attending 100% of the meetings[67]. Risk Management and Compliance - The risk management and internal control systems were reviewed and deemed effective, with no significant issues reported in financial, operational, or compliance controls[69]. - The company has established a management structure to assist in achieving business objectives and protecting assets from unauthorized use[68]. - The group has no significant violations of applicable laws and regulations, ensuring compliance with local and international regulations[90]. - The company faces foreign exchange risks due to sales and procurement in foreign currencies, primarily USD and RMB, and has established forward foreign exchange contracts to mitigate these risks[93]. Employee and Management Information - The company employed approximately 500 staff in the Greater China region, ensuring competitive compensation and benefits[41]. - The board of directors has established a compensation policy based on employee performance, qualifications, and job nature[124]. Financial Position and Cash Flow - The current ratio as of December 31, 2019, was 118%, an increase from 110% in the previous year, indicating improved liquidity[39]. - The net capital debt ratio decreased to 53% from 121% in the previous year, with net borrowings of approximately HKD 970.61 million[39]. - The operating cash inflow for the year was HKD 1.33 billion, compared to HKD 1.01 billion in 2018, indicating improved cash flow management[40]. - The company’s cash and cash equivalents increased to HKD 1,103,211,000 from HKD 932,640,000, an increase of 18.3%[143]. - The net cash generated from operating activities for 2019 was HKD 1,326,573,000, compared to HKD 1,009,119,000 in 2018, reflecting a significant increase of 31%[151]. - The total cash outflow from investing activities was HKD 16,409,000, a decrease of 93% from HKD 245,467,000 in 2018, indicating reduced investment expenditures[152]. - The net cash outflow from financing activities was HKD 1,137,227,000, compared to HKD 411,293,000 in 2018, showing a substantial increase in financing costs[152]. Inventory and Asset Management - The carrying amount of inventory as of December 31, 2019, was HKD 841,591,000, with a provision for inventory of HKD 96,798,000 recognized in the income statement[133]. - The estimated provision for obsolete and slow-moving inventory was HKD 39,696,000 for the year ended December 31, 2019[133]. - The company reported a significant reduction in inventory, which decreased to HKD 841,591,000 from HKD 1,589,318,000, a decline of 47%[143]. Accounting Standards and Financial Reporting - The company adopted the new and revised Hong Kong Financial Reporting Standards (HKFRS), specifically HKFRS 16 "Leases," which became mandatory this year[155]. - The transition to HKFRS 16 did not have a significant impact on the company's financial position as of January 1, 2019[164]. - The company applied HKFRS 15 "Revenue from Contracts with Customers" to allocate consideration to lease and non-lease components[166]. - The group recognizes revenue upon the transfer of control of goods or services to customers when performance obligations are fulfilled[187]. - Right-of-use assets are measured at cost, including initial direct costs and estimated costs for dismantling and restoring the asset[197]. Related Party Transactions - The company has engaged in related party transactions with its major shareholder Foxconn during the fiscal year ending December 31, 2019[118]. - The total value of related party transactions for the year ended December 31, 2019, included purchases of electronic products amounting to HKD 1,342,565,000 and sales of electronic products totaling HKD 1,867,647,000[119].

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 8,350,449, a decrease of 35.8% compared to HKD 13,008,736 in 2018[4] - Profit attributable to owners of the company for the same period was HKD 103,515, down 29.1% from HKD 146,074 in 2018[4] - Basic earnings per share decreased to 16.54 HKD cents, down 29.1% from 23.34 HKD cents in the previous year[4] - Gross profit for the period was HKD 416,510, compared to HKD 462,676 in the previous year[6] - Total comprehensive income for the period was HKD 138,975, down from HKD 175,914 in 2018[7] - The total income tax expense for the six months ended June 30, 2019, was HKD 31,388 thousand, compared to HKD 34,561 thousand in the previous year, indicating a decrease of 9.5%[45] - Net profit for the period was HKD 103,515,000, a decrease of 29.1% compared to HKD 146,074,000 in the previous year[66] Dividends and Shareholder Returns - The interim dividend per share was declared at 4.00 HKD cents, a reduction of 20.0% from 5.00 HKD cents in 2018[4] - Basic earnings per share for the six months ended June 30, 2019, were HKD 0.165 based on a profit attributable to shareholders of approximately HKD 103.5 million, compared to HKD 0.233 for the same period in 2018[50] - The company declared an interim dividend of HKD 0.04 per share, down from HKD 0.05 per share in the previous year[59] Cash Flow and Liquidity - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 544,454,000, compared to HKD 173,172,000 for the same period in 2018, representing a significant increase[21] - The net cash used in investing activities for the six months ended June 30, 2019, was HKD 14,314,000, an improvement from a cash outflow of HKD 57,948,000 in the previous year[21] - The net cash used in financing activities for the six months ended June 30, 2019, was HKD 484,834,000, compared to a cash inflow of HKD 320,485,000 in the same period of 2018, indicating a shift in financing strategy[21] - The company's current ratio improved to 116% as of June 30, 2019, compared to 110% at the end of 2018[67] - The net capital debt ratio decreased to 87% from 121% at the end of 2018, attributed to improved working capital efficiency[67] Assets and Liabilities - The company reported a decrease in inventory to HKD 850,104 from HKD 1,589,318 in the previous year[11] - Trade and other receivables decreased to HKD 1,045,329 from HKD 1,742,784 in 2018[11] - The total current liabilities decreased to HKD 3,515,333,000 as of June 30, 2019, from HKD 4,568,681,000 as of December 31, 2018, indicating improved liquidity[13] - The bank borrowings due within one year decreased to HKD 2,289,694,000 as of June 30, 2019, from HKD 2,687,644,000 at the end of 2018, indicating a reduction in short-term debt[13] - The total assets less current liabilities as of June 30, 2019, amounted to HKD 2,154,201,000, up from HKD 2,039,755,000 as of December 31, 2018[13] - The company's equity attributable to owners increased to HKD 1,635,974,000 as of June 30, 2019, from HKD 1,534,005,000 at the end of 2018, reflecting a growth in shareholder value[13] - The total equity as of June 30, 2019, was HKD 1,803,045,000, an increase from HKD 1,690,343,000 as of December 31, 2018, demonstrating overall financial growth[13] Revenue Breakdown - Customer contract revenue for the six months ended June 30, 2019, was HKD 8,321,867 thousand, down from HKD 12,975,281 thousand in the prior year, representing a decline of 35.8%[35] - Revenue from sales of electronic components and semiconductors was HKD 8,134,614 thousand, a decrease of 36.5% from HKD 12,800,651 thousand in the previous year[35] - Revenue from rental activities, including financing leases for home appliances and commercial equipment, was HKD 14,501 thousand, slightly down from HKD 15,345 thousand in the prior year[35] - The company reported a significant drop in revenue from LED lighting products, which fell to HKD 5,275 thousand from HKD 10,413 thousand, a decline of 49.3%[35] - Major customer A contributed HKD 4,648,607 thousand to revenue for the six months ended June 30, 2019, down from HKD 7,038,933 thousand in the same period of 2018, reflecting a decrease of 33.5%[44] Lease Accounting - The group has adopted the Hong Kong Financial Reporting Standard No. 16 (HKFRS 16) for the first time, replacing HKAS 17, which is expected to have no significant impact on the financial data[25] - The initial measurement of lease liabilities includes fixed payments and variable lease payments based on indices or rates[29] - The cost of right-of-use assets includes the initial measurement amount of lease liabilities and any direct costs incurred[27] - The group will assess whether a contract contains a lease based on the definition provided in HKFRS 16 at the date of contract formation or modification[30] - The group will recognize right-of-use assets at the commencement date, measured at cost less any accumulated depreciation and impairment losses[27] - Lease liabilities will be measured at the present value of unpaid lease payments at the lease commencement date[29] - The group has not early adopted any new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[25] - The application of HKFRS 16 is expected to result in changes to accounting policies related to leases[24] - The group will not reassess contracts unless the terms and conditions of the contract change[27] - The group has chosen to apply practical expedients for leases previously identified under HKAS 17[30] Strategic Initiatives - The company plans to focus on market expansion and new product development to improve future performance[12] - The company continues to develop competitive solutions, including high-performance memory storage and advanced smartphone camera lenses, despite a challenging business environment[61] - The company is capturing new business opportunities in Belt and Road countries, contributing to stable and sustainable results in the LED lighting B2B segment[62] - The company plans to closely monitor the trade war and its impacts, preparing to implement countermeasures as necessary[64] - The introduction of 5G technology is expected to drive a new smartphone replacement cycle by the end of 2019, boosting demand for new generation products[64] Employment and Governance - The company employed approximately 600 staff in the Greater China region, ensuring competitive compensation and benefits[71] - Foxconn Holding Limited holds 124,000,000 shares, representing 19.81% of the company's issued share capital[80] - As of June 30, 2019, the maximum number of shares available for issuance under the company's share option scheme is 24,658,072, equivalent to approximately 3.9% of the existing issued shares[83] - The company did not purchase, sell, or redeem any of its listed securities during the review period[85] - The company has complied with the corporate governance code, with some deviations noted regarding the separation of roles between the chairman and CEO[86] - The audit committee reviewed the accounting principles, internal controls, and risk management for the six months ending June 30, 2019[88]

Financial Performance - The company's revenue for the year ended December 31, 2018, increased to HKD 25,273.9 million, representing a 30% growth compared to HKD 19,461.9 million in 2017[6]. - The profit attributable to shareholders for 2018 was HKD 313.1 million, a 3% increase from HKD 303.0 million in the previous year[6]. - Basic earnings per share rose to 50.03 HKD cents, up 3% from 48.50 HKD cents in 2017[6]. - The gross profit for the year was HKD 923.9 million, a 14% increase from HKD 809.6 million in 2017, with a gross margin of 3.7%[12]. - The group recorded a record sales revenue of HKD 24.99 billion in 2018, an increase of 30% from HKD 19.17 billion in the previous year[14]. - The global smartphone market saw a total shipment of 1.4 billion units in 2018, a decline of 4% compared to 2017, while the group achieved significant revenue growth in the mobile phone segment[15]. - The company reported a decrease in distribution and selling expenses to HKD 100,400 thousand from HKD 110,894 thousand, a reduction of approximately 9.5%[110]. - Administrative expenses increased to HKD 307,568 thousand from HKD 273,501 thousand, representing an increase of about 12.5%[110]. - The company's profit before tax for 2018 was HKD 459,987,000, an increase of 8.3% from HKD 424,291,000 in 2017[123]. - The company reported a significant increase in investment properties, which rose to HKD 738,270,000 in 2018 from HKD 580,660,000 in 2017, a growth of 27.14%[112]. Dividends and Shareholder Returns - The board proposed a final dividend of 16 HKD cents per share, bringing the total dividend for the year to 21 HKD cents, up from 20 HKD cents in 2017[13]. - The board proposed a final dividend of HKD 0.16 per share to shareholders listed on June 26, 2019[57]. - The company has adopted a dividend policy prioritizing cash distributions to shareholders, subject to board discretion and shareholder approval[58]. - The company declared dividends amounting to HKD 101,832,000 for the year[115]. - The company declared dividends amounting to HKD 126,419,000 for the year[121]. Corporate Governance - The board consists of four executive directors and four independent non-executive directors, with the chairman being Mr. Yim Yu-lin[33]. - The company is committed to high-level corporate governance, adhering to the applicable code provisions of the Corporate Governance Code as of December 31, 2018[32]. - The board is responsible for monitoring the group's operational and financial performance, ensuring accountability to shareholders[33]. - The company has received annual confirmations of independence from all four independent non-executive directors as per the Listing Rules[34]. - The board consists of eight directors, with four being independent non-executive directors, promoting critical review and control of management processes[44]. - The board has achieved measurable diversity goals, with at least one-third of members being independent non-executive directors and at least one member possessing accounting or other professional qualifications[45]. - The board held four meetings during the year, with all directors attending at least 75% of the meetings[47]. - The company emphasizes the importance of corporate strategy formulation and internal controls to ensure sustainable development[33]. Operational Efficiency and Market Presence - The company expanded its sales network and improved operational efficiency, contributing to strong performance in its components team[12]. - The company serves over 100 well-known semiconductor suppliers and more than 10,000 customers across various sectors[3]. - The company has over 20 sales offices in China, Hong Kong, Taiwan, and Japan, enhancing its market presence[3]. - The group successfully signed bulk procurement agreements with a leading luxury hotel group managing over 100 hotels globally, expanding its footprint beyond Greater China[17]. - The group launched a series of new products, including a 120-inch 4K display and a new generation of washing machines, which received positive market feedback[18]. Risk Management and Compliance - The group’s current ratio improved to 110% as of December 31, 2018, compared to 104% in the previous year, while the net capital debt ratio decreased to 121% from 175%[22]. - The risk management and internal control systems were reviewed and deemed effective, with no significant issues reported in financial, operational, or compliance controls[49]. - The company has established a management structure to protect assets and ensure compliance with relevant laws and regulations[48]. - The board is responsible for reviewing and monitoring the company's compliance with legal and regulatory requirements[45]. - The company faces foreign exchange risks due to sales and purchases in foreign currencies, primarily USD and RMB, and has established forward contracts to hedge these risks[69]. Employee and Management Structure - The group employed approximately 650 employees in Greater China as of December 31, 2018, ensuring competitive compensation and benefits[24]. - The management team regularly reviews overall business performance and coordinates resources for financial and operational decisions[34]. - The executive directors and senior management have over 20 years of experience in the electronics industry, contributing to operational and management expertise[31]. - The company has a diverse management team with educational backgrounds in business administration, law, and engineering, enhancing its operational capabilities[31]. Financial Position and Assets - Non-current assets increased to HKD 1,603,557,000 in 2018 from HKD 1,323,448,000 in 2017, marking a growth of 21.14%[112]. - The company's net asset value increased to HKD 1,690,343,000 in 2018 from HKD 1,453,855,000 in 2017, reflecting a growth of 16.24%[113]. - The group’s total assets reached HKD 1,690,343,000, an increase from HKD 1,534,005,000 in the previous year[118]. - The group reported a non-current asset value of HKD 61,027,000 for financial assets measured at fair value through profit or loss as of January 1, 2018[150]. - The group recognized contract liabilities of HKD 22,931,000 as part of the adjustments made to the financial statements[150]. Accounting Policies and Standards - The group has adopted Hong Kong Financial Reporting Standard 15, which replaces HKAS 18 and HKAS 11, with cumulative effects recognized on January 1, 2018[129]. - The group has also applied HKFRS 9, which introduces new requirements for the classification and measurement of financial assets and liabilities[137]. - The application of HKFRS 16 may lead to changes in measurement, presentation, and disclosure, with the group opting for a practical expedient method[157]. - The financial statements are prepared based on historical cost, except for certain properties and financial instruments measured at revalued amounts or fair value[158]. - The group will recognize the cumulative impact of the initial application of HKFRS 16 on retained earnings without restating comparative information[157]. Environmental Responsibility - The company emphasizes environmental responsibility by implementing energy-efficient practices and using eco-friendly materials[66].