Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 13,639,486 thousand, representing a 46.9% increase compared to HKD 9,283,390 thousand in 2023[3] - Profit attributable to owners of the company for the same period was HKD 330,288 thousand, up 21.7% from HKD 271,351 thousand in 2023[4] - Basic earnings per share increased to HKD 52.78, a rise of 21.7% from HKD 43.36 in the previous year[6] - Gross profit for the six months was HKD 804,243 thousand, compared to HKD 700,456 thousand in 2023, indicating a positive trend[4] - Total comprehensive income for the period was HKD 442,720 thousand, compared to HKD 403,233 thousand in the previous year[5] - The company reported a total comprehensive income of HKD 3,257,220,000 for the six months ended June 30, 2024, compared to HKD 2,591,413,000 for the same period in 2023, indicating an increase of approximately 25.7%[10] - The company reported a profit of HKD 330,288,000 for the period, compared to HKD 271,351,000 in the same period last year, marking a growth of 21.7%[26] Dividends and Shareholder Returns - The interim dividend per share was raised to HKD 15.00, reflecting a 50.0% increase from HKD 10.00 in 2023[3] - The company plans to distribute an interim dividend of HKD 0.15 per share, up from HKD 0.10 per share in 2023[34] Assets and Liabilities - Non-current assets as of June 30, 2024, included investment properties valued at HKD 662,660 thousand, unchanged from December 31, 2023[7] - Current assets included inventories of HKD 2,052,555 thousand, an increase from HKD 1,780,168 thousand in 2023[8] - Cash and cash equivalents decreased to HKD 1,041,839 thousand from HKD 1,580,146 thousand in the previous year[8] - As of June 30, 2024, the total assets amounted to HKD 4,421,366,000, a decrease from HKD 4,872,046,000 as of December 31, 2023, representing a decline of approximately 9.2%[9] - The company reported a total equity of HKD 2,935,147,000 as of June 30, 2024, up from HKD 2,828,886,000 at the end of 2023, reflecting an increase of approximately 3.8%[9] - The company’s total liabilities increased to HKD 1,820,982,000 as of June 30, 2024, compared to HKD 1,708,246,000 at the end of 2023, representing an increase of approximately 6.6%[9] - The company’s retained earnings stood at HKD 2,236,349,000 as of June 30, 2024, compared to HKD 2,351,241,000 at the end of 2023, showing a decrease of approximately 4.9%[10] - The company’s non-controlling interests decreased to HKD 123,762,000 as of June 30, 2024, down from HKD 191,487,000 at the end of 2023, reflecting a decline of approximately 35.3%[9] Cash Flow and Financing - The net cash flow from operating activities for the six months ended June 30, 2024, was a negative HKD 898,414,000, compared to a positive HKD 2,371,858,000 for the same period in 2023, indicating a significant decrease in operational cash flow[11] - The financing activities generated a net cash inflow of HKD 365,518,000 for the six months ended June 30, 2024, down from HKD 720,686,000 in the same period of 2023, indicating a decline of about 49%[11] - The cash and cash equivalents decreased to HKD 1,041,839,000 as of June 30, 2024, down from HKD 4,560,907,000 at the end of June 2023, marking a decline of about 77%[11] - The group recorded a net operating cash outflow of HKD 898,414,000 for the six months ended June 30, 2024, compared to a net inflow of HKD 2,371,858,000 in the same period last year[44] Revenue Sources - Customer contract revenue reached HKD 13,630,638,000, up 47.5% from HKD 9,272,878,000 in the previous year[19] - Sales of electronic components and semiconductors amounted to HKD 13,569,461,000, a significant increase from HKD 9,207,622,000, representing a growth of 47.5%[15] - Major customer A contributed HKD 6,684,525,000 to revenue, up from HKD 3,709,691,000, representing an increase of 80.5%[20] - The company incurred tax expenses of HKD 82,614,000, compared to HKD 75,525,000 in the previous year, an increase of 9.1%[21] - Other income for the period was HKD 26,086,000, down from HKD 34,627,000, reflecting a decrease of 24.8%[24] Operational Metrics - The company’s trade receivables decreased to HKD 752,508,000 as of June 30, 2024, from HKD 839,379,000 as of December 31, 2023[29] - The total amount of trade and other receivables was HKD 849,663,000, down from HKD 983,047,000 in the previous period[29] - The company’s major customers accounted for 66.1% of total revenue, an increase from 61.5% as of December 31, 2023[31] - The accounts receivable turnover period was approximately 39 days, up from 32 days in the previous year[44] - The inventory turnover period was approximately 29 days, down from 52 days in the previous year, while the average accounts payable turnover period was 22 days, down from 77 days[44] Market Outlook and Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[18] - The company anticipates challenges from ongoing trade tensions between the US and China, low demand visibility, currency fluctuations, and high interest rates[42] Compliance and Governance - The audit committee reviewed the accounting principles, internal controls, and risk management for the six months ended June 30, 2024[58] - The company has adopted the standard code for securities trading by directors as per the listing rules, confirming compliance by all directors for the six months ending June 30, 2024[59] Employee and Shareholder Information - The group employed approximately 450 employees in the Greater China region, ensuring competitive compensation and benefits[47] - The major shareholder, Hon Hai Precision Industry Co., Ltd., held 124,000,000 shares, representing 19.81% of the issued share capital[53] New Developments - The company has a 46.3% stake in the newly appointed subsidiary, Shiteng Technology, which will be consolidated into the company's financial statements from July 1, 2024[60] - The group has considered entering into foreign exchange forward contracts to hedge against foreign currency risks related to payables[45]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 13,639,486 thousand, representing a 46.9% increase from HKD 9,283,390 thousand in the same period of 2023[1] - Profit attributable to owners of the company for the same period was HKD 330,288 thousand, up 21.7% from HKD 271,351 thousand in 2023[1] - Basic earnings per share increased to HKD 52.78, a rise of 21.7% compared to HKD 43.36 in the previous year[1] - Gross profit for the six months was HKD 804,243 thousand, compared to HKD 700,456 thousand in the same period last year[2] - The company reported a pre-tax profit of HKD 524,701 thousand, an increase from HKD 459,431 thousand in the previous year[2] - Total comprehensive income for the period was HKD 442,720 thousand, compared to HKD 403,233 thousand in 2023[3] - For the six months ended June 30, 2024, total revenue reached HKD 13,639,486,000, a significant increase from HKD 9,283,390,000 in the same period of 2023, representing a growth of approximately 46.5%[7][13] - Sales of electronic components and semiconductors amounted to HKD 13,569,461,000, up from HKD 9,207,622,000 in 2023, indicating a growth of about 47.5%[7][10] - The major customer contributed HKD 6,684,525,000 in revenue for the six months ended June 30, 2024, compared to HKD 3,709,691,000 in 2023, reflecting an increase of approximately 80.5%[14] - The company reported a profit of HKD 330,288,000 for the six months ended June 30, 2024, compared to HKD 271,351,000 in the same period of 2023, representing a growth of approximately 21.7%[20] - Basic earnings per share for the six months ended June 30, 2024, were HKD 0.528, compared to HKD 0.433 in 2023, marking an increase of about 22%[20] Dividends and Shareholder Returns - The interim dividend per share was declared at HKD 15.00, reflecting a 50.0% increase from HKD 10.00 in 2023[1] - The company plans to distribute an interim dividend of HKD 0.15 per share, compared to HKD 0.10 per share in 2023[25] Assets and Liabilities - Current assets as of June 30, 2024, totaled HKD 6,242,348 thousand, down from HKD 6,580,292 thousand at the end of 2023[4] - Current liabilities decreased to HKD 4,421,366 thousand from HKD 4,872,046 thousand at the end of 2023[4] - Net assets attributable to owners of the company increased to HKD 2,811,385 thousand from HKD 2,637,399 thousand at the end of 2023[4] - The company’s trade receivables amounted to HKD 849,663,000 as of June 30, 2024, down from HKD 983,047,000 as of December 31, 2023[22] - The company’s total liabilities were not significantly impacted by the application of the revised Hong Kong Financial Reporting Standards during the interim period[6] Operational Metrics - The company incurred tax expenses of HKD 82,614,000 for the six months ended June 30, 2024, compared to HKD 75,525,000 in 2023, an increase of about 9.1%[15] - The depreciation of property, plant, and equipment was HKD 14,243,000 for the six months ended June 30, 2024, down from HKD 19,698,000 in 2023, a decrease of approximately 27.7%[17] - The company’s interest income from bank deposits decreased to HKD 8,142,000 in 2024 from HKD 25,234,000 in 2023, a decline of approximately 67.7%[17] - The group recorded a net cash outflow from operating activities of HKD 898,414,000 for the six months ended June 30, 2024, compared to a net cash inflow of HKD 2,371,858,000 in the same period last year[35] - The accounts receivable turnover period increased to approximately 39 days, compared to 32 days in 2023[35] - The inventory turnover period decreased to approximately 29 days, down from 52 days in 2023, while the average accounts payable turnover period improved to 22 days from 77 days[35] Employee and Governance - The group employed approximately 450 employees in the Greater China region as of June 30, 2024, ensuring competitive compensation and benefits[38] - The group has adopted the standard code for securities trading by directors, confirming compliance by all directors during the six months ended June 30, 2024[42] Strategic Outlook - The company expects challenges from ongoing trade tensions between the US and China, low demand visibility, currency fluctuations, and high interest rates[33] - The group announced the appointment of Ms. Yan Jiwen as a non-executive director of Shiteng Technology on July 2, 2024, with Shijie Investment holding a 46.3% stake in Shiteng Technology[44] - The group expressed gratitude to all employees for their contributions during challenging times and acknowledged the support from shareholders, customers, suppliers, and business partners[45]

Financial Performance - Total revenue for 2023 was HKD 22,371 million, a decrease of 10.4% from HKD 24,969 million in 2022[17]. - Profit attributable to owners of the company was HKD 403.8 million, reflecting a slight increase of 0.9% compared to HKD 400.3 million in the previous year[17]. - Basic earnings per share rose to HKD 64.52, up 0.9% from HKD 63.97 in 2022[17]. - For the year ended December 31, 2023, the group's revenue decreased by 10.4% to HKD 22,370,616,000 from HKD 24,968,652,000 in the previous year[44]. - The group's gross profit was HKD 1,316,411,000, an increase of 2.4% compared to HKD 1,285,327,000 last year, resulting in a gross margin of 5.9% compared to 5.1% in the previous year[44]. - The net profit attributable to shareholders for the year was HKD 403,801,000, a slight increase of 0.9% from HKD 400,337,000 in the previous year[44]. - The net profit for the year was HKD 585,673, representing an increase of 3.9% compared to HKD 563,907 in 2022[112]. - The total comprehensive income for the year was HKD 577,483, an increase of 20.3% from HKD 479,994 in 2022[112]. - The company reported a total comprehensive income of HKD 479,994,000 for the year ended December 31, 2023, compared to HKD 563,907,000 in 2022, indicating a decrease of about 14.9%[115]. Operational Efficiency - The company successfully managed inventory levels and operating costs, improving cash flow management despite a challenging macroeconomic environment[19]. - The average collection period for receivables increased to approximately 48 days in 2023 from 40 days in 2022[29]. - The inventory turnover period decreased to approximately 31 days in 2023 from 37 days in 2022[55]. - The operating cash inflow for 2023 was HKD 1,039,637,000, up from HKD 995,292,000 in 2022[30]. - The company incurred a loss of HKD 24,657,538,000 in financing activities, a decrease from HKD 34,880,385,000 in 2022, indicating improved cash management[120]. Market Trends and Future Outlook - Global smartphone shipments decreased to 1.17 billion units in 2023, the lowest in a decade, but the smartphone market began to show growth in Q4 2023[19]. - Demand for traditional TV and PC markets was weak, but was offset by rising demand in AI PCs, electric vehicle displays, and 5G infrastructure[20]. - The company anticipates growth in 2024 driven by demand for next-generation AI smartphones, AI PCs, and GPU servers, despite facing challenges from economic uncertainties and high inflation[25]. - The company plans to expand its product offerings, including high-resolution displays and Bluetooth low-energy solutions, to enhance competitiveness in the consumer electronics sector[20]. - The company plans to continue focusing on market expansion and new product development to drive future growth[112]. Dividend and Shareholder Returns - The company maintained a final dividend of HKD 25.00 per share, consistent with the previous year[17]. - The board proposed a final dividend of HKD 0.25 per share, maintaining the total dividend for the year at HKD 0.35 per share[44]. - The company paid dividends totaling HKD 219,043,000 to non-controlling interests in 2023, down from HKD 250,335,000 in 2022[120]. Governance and Compliance - The group prepares its consolidated financial statements in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with the Hong Kong Stock Exchange Listing Rules and the Companies Ordinance[3]. - The board of directors includes 5 executive directors and 4 independent non-executive directors, ensuring a diverse governance structure[166]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations throughout the fiscal year ending December 31, 2023[166]. - The audit committee, consisting of 3 independent non-executive directors, held three meetings in 2023 to review the group's financial performance and compliance procedures[172]. - The company has engaged Deloitte as external auditors for the fiscal year, ensuring independent financial oversight[174]. - The company has adopted measurable targets for board diversity, including gender diversity[180]. - The company has implemented a board member diversity policy to improve performance quality[176]. - The company received annual confirmations of independence from four independent non-executive directors, affirming their compliance with listing rules[188]. Assets and Investments - The group held 18 commercial and industrial investment properties in Hong Kong and China, with a total book value of HKD 663,000,000 as of December 31, 2023, down from HKD 706,000,000 in 2022[23]. - The rental income from investment properties amounted to HKD 19,400,000, compared to HKD 20,000,000 in 2022, with an annual return rate of 2.9%[49]. - The company’s total assets as of December 31, 2023, were HKD 3,010,446,000, up from HKD 2,843,287,000 in 2022, marking an increase of approximately 5.9%[115]. - The company’s equity attributable to owners of the parent increased to HKD 2,637,399,000 as of December 31, 2023, from HKD 2,457,217,000 in 2022, representing an increase of approximately 7.3%[115]. - The company’s investment in a joint venture increased by HKD 26,931,000 in 2023, compared to HKD 1,153,000 in 2022, indicating a strategic focus on expanding joint ventures[120].

Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 22,371 million, a decrease of 10.4% compared to HKD 24,969 million in 2022[16] - Profit attributable to the company's owners was HKD 403.8 million, reflecting a slight increase of 0.9% from HKD 400.3 million in the previous year[16] - Basic earnings per share rose to HKD 64.52, up 0.9% from HKD 63.97 in 2022[16] - Gross profit for the year was HKD 1,316,411 thousand, compared to HKD 1,285,327 thousand in 2022, indicating a slight improvement[19] - The company reported a net profit of HKD 585,673 thousand for the year, an increase from HKD 563,907 thousand in the previous year[19] - The company experienced a decrease in sales costs, which amounted to HKD 21,054,205 thousand, down from HKD 23,683,325 thousand in 2022[19] - Other income increased significantly to HKD 62,284 thousand from HKD 30,191 thousand in the previous year[19] - The company reported a total comprehensive income of HKD 577,483 in 2023, up from HKD 479,994 in 2022, an increase of 20.3%[27] - The company achieved a net operating cash inflow of HKD 1.04 billion in 2023, compared to HKD 995.29 million in 2022[110] Dividends - The total proposed dividend remained unchanged at HKD 35.00 per share, with a final dividend of HKD 25.00 and an interim dividend of HKD 10.00[16] - The company declared a final dividend of HKD 0.25 per share for the year ending December 31, 2023, consistent with the previous year[69] - The company plans to distribute a final dividend of HKD 0.25 per share, totaling HKD 0.35 per share for the year, unchanged from 2022[92] Assets and Liabilities - Net current assets decreased to HKD 1,708,246 in 2023 from HKD 1,924,402 in 2022, reflecting a decline of 11.2%[23] - Total assets less current liabilities decreased to HKD 2,953,856 in 2023 from HKD 3,252,748 in 2022, a reduction of 9.2%[24] - The company's equity attributable to owners increased to HKD 2,637,399 in 2023 from HKD 2,457,217 in 2022, representing an increase of 7.3%[30] - Trade and other payables rose to HKD 3,704,524 in 2023 from HKD 3,086,560 in 2022, an increase of 20.0%[6] - The company's total liabilities increased to HKD 3,704,524,000 in 2023 from HKD 3,086,560,000 in 2022, reflecting an increase of approximately 20%[78] Revenue Streams - Revenue from LED lighting and display products increased to HKD 42,516 in 2023 from HKD 26,949 in 2022, a growth of 57.7%[47] - Rental income from investment properties was HKD 19,370 in 2023, down from HKD 20,061 in 2022, a decrease of 3.4%[39] - The total income from bank deposits increased significantly to HKD 48,193,000 in 2023 from HKD 2,421,000 in 2022, marking a substantial rise[74] Employee and Operational Costs - Employee costs decreased to HKD 181,356,000 in 2023 from HKD 200,362,000 in 2022, a reduction of approximately 9.5%[65] - The inventory turnover period was approximately 31 days, down from 37 days in 2022, while the average accounts payable turnover period was approximately 51 days, down from 42 days in 2022[110] Economic Outlook and Challenges - The company faces challenges from economic headwinds, including high inflation and interest rates, while focusing on cash flow management and capital expenditure[98] - The company is optimistic about future growth driven by demand for next-generation AI smartphones and AI PCs, despite ongoing trade tensions between the US and China[98] Corporate Governance - The company has adhered to the corporate governance code, with the board accepting the current structure of having the chairman and CEO roles held by the same individual, Dr. Yan Yulin, based on the group's business scale[116]

Financial Performance - For the six months ended June 30, 2023, the company recorded revenue of HKD 9,283,390,000, a decrease of 38.1% compared to HKD 14,996,092,000 in the same period last year[22] - The gross profit for the same period was HKD 700,456,000, down 3.1% from HKD 723,126,000 year-on-year, with a gross margin of 7.6% compared to 4.8% in the previous year[22] - The profit attributable to shareholders for the period was HKD 271,351,000, a decrease of 9.7% from HKD 300,663,000 in the prior year, resulting in basic earnings per share of HKD 0.4336, down from HKD 0.4804[22] - The company reported a net loss of HKD 1,448 for the six months ended June 30, 2023, compared to a profit of HKD 824 in the same period of 2022[48] - Total comprehensive income attributable to owners was HKD 403,233,000 for the six months ended June 30, 2023, compared to HKD 391,192,000 in the same period of 2022, representing an increase of approximately 3.0%[59] - Basic and diluted earnings per share were HKD 43.36 for the six months ended June 30, 2023, down from HKD 48.04 in the same period of 2022, reflecting a decrease of about 9.0%[59] Cash Flow and Liquidity - The company reported a net cash position of approximately HKD -2,180,986,000, compared to a net capital debt ratio of 1% as of December 31, 2022[23] - Net cash generated from operating activities was HKD 2,371,858, a significant improvement from a cash outflow of HKD 1,169,795 in the previous year[76] - The company reported a net increase in cash and cash equivalents of HKD 3,127,384, compared to an increase of HKD 103,925 in the same period last year[76] - The total cash and cash equivalents at the end of the period were HKD 4,560,907, up from HKD 1,862,902 at the end of the previous period[76] Assets and Liabilities - As of June 30, 2023, the company's current ratio was 132%, down from 139% as of December 31, 2022[23] - Current assets net value was HKD 2,169,726,000 as of June 30, 2023, compared to HKD 1,924,402,000 as of December 31, 2022, indicating an increase of around 12.8%[72] - Total assets less current liabilities amounted to HKD 3,494,503,000 as of June 30, 2023, up from HKD 3,252,748,000 as of December 31, 2022, representing a rise of approximately 7.4%[72] - Current liabilities rose to HKD 6,725,514,000 as of June 30, 2023, compared to HKD 4,886,120,000 as of December 31, 2022, representing an increase of about 37.6%[72] Inventory and Receivables - The accounts receivable turnover period was approximately 32 days, slightly improved from 33 days in 2022[12] - The inventory turnover period was approximately 52 days, up from 37 days in the previous year[24] - Trade and other receivables decreased to HKD 853,280,000 as of June 30, 2023, from HKD 1,113,014,000 as of December 31, 2022, indicating a decline of approximately 23.3%[71] - Inventory stood at HKD 2,460,210,000 as of June 30, 2023, compared to HKD 2,398,330,000 as of December 31, 2022, reflecting an increase of about 2.6%[71] Shareholder Information - The company maintained an interim dividend of HKD 10.00 per share, unchanged from the previous year[57] - Major shareholders include Dr. Yan Yulin with 114,800,000 shares (18.34%) and a controlled corporation holding 227,542,800 shares (36.36%), totaling 342,342,800 shares (54.70%)[137] - The company held 224,423,000 shares of Yangyu, representing approximately 34.4% of its issued share capital as of June 30, 2023[37] Market and Economic Conditions - The company is facing challenges such as slow economic growth, low demand visibility, high inflation, and elevated interest costs, but the global semiconductor industry's shift towards digital and green economies is expected to support growth in 2024[133] - The group managed to control inventory levels and operating costs despite ongoing macroeconomic challenges affecting consumer demand for mobile phones and electronics[105] Corporate Governance and Compliance - The company confirmed compliance with the corporate governance code during the six months ending June 30, 2023[144] - The company has no knowledge of any other relevant interests or short positions in its issued capital as of June 30, 2023[143] Future Plans and Strategies - The company plans to issue 224,423,000 rights shares at a subscription price of HKD 0.12 per share, with an expected investment of approximately HKD 26,900,000[146] - The company has entered into foreign exchange forward contracts to hedge against foreign exchange risks related to payables denominated in foreign currencies[135]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 9,283,390 thousand, a decrease of 38.1% compared to HKD 14,996,092 thousand in the same period of 2022[4] - Profit attributable to owners of the company for the same period was HKD 271,351 thousand, down 9.7% from HKD 300,663 thousand in 2022[4] - Basic earnings per share decreased to HKD 43.36, down 9.7% from HKD 48.04 in the previous year[4] - Gross profit for the period was HKD 700,456 thousand, slightly down from HKD 723,126 thousand in 2022[5] - Total revenue for the six months ended June 30, 2023, was HKD 9,283,390,000, compared to HKD 14,996,092,000 in the same period of 2022, representing a decline of about 38.2%[38] - Sales of electronic components and semiconductors amounted to HKD 9,207,622,000, down from HKD 14,919,387,000 in 2022, indicating a decrease of approximately 38.5%[38] - For the six months ended June 30, 2023, the total revenue was HKD 9,283,390,000, a decrease of 38.3% compared to HKD 14,996,092,000 for the same period in 2022[41] - Gross profit was HKD 700,456,000, down 3.1% from HKD 723,126,000 year-on-year, with a gross margin of 7.6% compared to 4.8% in the previous year[81] - Net profit attributable to shareholders was HKD 271,351,000, a decrease of 9.7% from HKD 300,663,000 in the same period last year, with basic earnings per share at HKD 0.4336 compared to HKD 0.4804 in 2022[81] Dividends and Shareholder Returns - The company maintained an interim dividend of HKD 10.00 per share, unchanged from the previous year[4] - The interim dividend declared is HKD 0.10 per share, consistent with the previous year[73] Assets and Liabilities - Total assets as of June 30, 2023, amounted to HKD 10,219,017 thousand, compared to HKD 8,138,868 thousand as of December 31, 2022[14] - The net asset value as of June 30, 2023, was HKD 3,257,220,000, compared to HKD 3,010,446,000 at the end of 2022, showing an increase of about 8.2%[33] - The company's current liabilities increased to HKD 6,725,514,000 from HKD 4,886,120,000, reflecting a rise of approximately 37.7%[33] - The total trade and other receivables amounted to HKD 853,280,000 as of June 30, 2023, down from HKD 1,113,014,000 at the end of 2022[48] - Trade payables increased to HKD 3,671,374,000 as of June 30, 2023, compared to HKD 2,695,849,000 at the end of 2022[72] Cash Flow and Financial Position - The group recorded a net operating cash inflow of HKD 2,371,858,000 for the six months ended June 30, 2023, compared to a net outflow of HKD 1,169,795,000 for the same period last year[61] - The group is in a net cash position with a net debt ratio of approximately -HKD 2,180,986,000 as of June 30, 2023, compared to a net capital debt ratio of 1% at the end of 2022[83] Other Income and Expenses - Other income increased to HKD 34,627 thousand from HKD 15,183 thousand in the previous period[5] - The company reported a net loss of HKD 17,801 thousand from other gains and losses, an improvement from a loss of HKD 36,741 thousand in 2022[5] - Other income, including bank interest and dividends, totaled HKD 34,627,000, significantly up from HKD 15,183,000 in the previous year, marking an increase of about 128.3%[25] - The company reported a loss from the sale of available-for-sale investments amounting to HKD 78,000, compared to a gain of HKD 6,228,000 in the previous year[25] Operational Metrics - The accounts receivable turnover period was approximately 32 days for the six months ended June 30, 2023, compared to 33 days for the same period in 2022[60] - The inventory turnover period and average accounts payable turnover period were approximately 52 days and 77 days, respectively, compared to 37 days and 20 days in 2022[84] Strategic Outlook - The company plans to continue facing challenges such as slow economic growth and high inflation, while the global semiconductor industry trends towards digital and green economic development[55] - The group believes it is better equipped to face challenges and aims for sustainable business growth, leveraging economies of scale and strong financial backing[79] - The group actively incorporates sustainability into its business operations, considering environmental, social, and governance issues[80] Investments and Projects - The group has completed several medium-sized LED lighting and display projects for hotels, real estate developers, and local government departments in the Asia-Pacific region[77] - The group has made an irrevocable commitment to subscribe for 224,423,000 rights shares at HKD 0.12 per share, expecting to invest approximately HKD 26,900,000[104] Corporate Governance - The board of directors consists of 5 executive directors, 1 non-executive director, and 4 independent non-executive directors[105]

Procurement and Customer Concentration - The largest supplier accounted for 64.2% of total procurement, while the top five suppliers represented 75.5% of total procurement[3]. - The largest customer contributed 41.6% to total sales, and the top five customers accounted for 58.7% of total sales[4]. Financial Performance - For the year ended December 31, 2022, the group's revenue decreased by 29.3% to HKD 24,968,652,000 from HKD 35,297,778,000 in the previous year[37]. - The group's gross profit was HKD 1,285,327,000, a decrease of 19.0% from HKD 1,587,248,000, with a gross margin of 5.1% compared to 4.5% last year[37]. - Shareholders' profit attributable to the company was HKD 400,337,000, down 43.9% from HKD 713,191,000, with basic earnings per share at HKD 0.6397 (2021: HKD 1.1396)[37]. - Total revenue for the year 2022 was HKD 24,968,652, a decrease of 29.5% from HKD 35,297,778 in 2021[172]. - Gross profit for 2022 was HKD 1,285,327, down 19.0% from HKD 1,587,248 in 2021[172]. - The net profit for the year was HKD 563,907, representing a decline of 39.1% compared to HKD 925,134 in 2021[172]. - The company reported a decrease in administrative expenses to HKD 207,817 from HKD 228,786, a reduction of 9.2%[172]. - The total comprehensive income for the year was HKD 479,994, down 49.3% from HKD 944,944 in 2021[172]. Inventory and Turnover - The inventory turnover period and average accounts payable turnover period were approximately 37 days and 42 days, respectively, compared to 29 days and 35 days in 2021[46]. - The group's inventory value as of December 31, 2022, was HKD 2,398,330,000, with a provision for inventory of HKD 193,194,000, representing 29.5% of the total assets[163]. Risk Management - The company faces various risks, including exchange rate risk, interest rate risk, credit risk, and liquidity risk, which are monitored closely[12]. - The company has established foreign exchange forward contracts to hedge against foreign currency risks related to payables[103]. Corporate Governance - The company has no significant violations of applicable laws and regulations, ensuring compliance with the Hong Kong Companies Ordinance and other relevant regulations[9]. - The company adhered to the corporate governance code as per the Hong Kong Stock Exchange Listing Rules for the fiscal year ending December 31, 2022[69]. - The board held a total of 5 meetings, with all executive directors attending 100% of the meetings[76]. - The company has a diversity policy for its board members, ensuring at least one-third are independent non-executive directors[85]. - The audit committee conducted a review of the group's risk management and internal control systems during the year[89]. - The company has adopted a standard code of conduct for securities trading by directors[72]. Shareholder Engagement - The company encourages shareholders to attend annual general meetings, providing at least 20 business days' notice[93]. - The company allows shareholders to propose resolutions at general meetings, requiring a minimum of 100 shareholders or 5% of voting rights[79]. Donations and Social Responsibility - The company donated HKD 3,513,000 to charitable and non-profit organizations in Hong Kong and China during the year[43]. - The group made charitable donations and other contributions of approximately HKD 3,513,000 during the fiscal year[157]. Future Outlook - The company anticipates facing significant challenges in 2023, including slow global economic recovery, low demand visibility, high inflation, and elevated interest costs[42]. - Demand for televisions, PCs, 5G network equipment, and data centers in China was weak, leading to a decline in revenue from the consumer electronics segment[39]. - The semiconductor industry is shifting towards digital and green economic development, which will remain a consistent trend[42]. Auditor and Financial Reporting - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2022[137]. - The company has engaged Deloitte as external auditors for the fiscal year, with fees disclosed in the report[73]. - The company plans to propose the reappointment of Deloitte as the auditor at the upcoming annual general meeting[158]. Major Shareholders - Major shareholder Foxconn holds 124 million shares, representing 19.81% of the company's issued share capital[108]. - The company has engaged in multiple related party transactions with major shareholder Foxconn and its subsidiaries during the fiscal year[130]. Environmental Initiatives - The company aims to enhance resource efficiency and reduce waste through various environmental initiatives, including the use of LED lighting and eco-friendly materials[119].

Financial Summary [Performance Overview](index=1&type=section&id=Performance%20Overview) The company experienced a 29.3% revenue decline to HKD 24.969 billion and a 43.9% drop in profit attributable to owners to HKD 400 million in 2022, with basic EPS and total dividends also significantly reduced 2022 Annual Financial Summary (Compared to 2021) | Indicator | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Revenue (HKD Million) | 24,969 | 35,298 | -29.3% | | Profit attributable to owners of the Company (HKD Million) | 400 | 713 | -43.9% | | Basic Earnings Per Share (HK Cents) | 63.97 | 113.96 | -43.9% | | Total Dividends Per Share (HK Cents) | 35.00 | 45.00 | -22.2% | Consolidated Financial Statements [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For 2022, the Group's revenue fell 29.3% to HKD 24.969 billion, with gross profit down 19.0% to HKD 1.285 billion due to disproportionate cost reductions, leading to a 38.8% drop in profit before tax to HKD 679 million and a 39.0% decline in profit for the year to HKD 564 million Key Items from Consolidated Statement of Profit or Loss (HKD Thousand) | Item | 2022 | 2021 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 24,968,652 | 35,297,778 | -29.3% | | Gross Profit | 1,285,327 | 1,587,248 | -19.0% | | Profit Before Tax | 678,865 | 1,109,018 | -38.8% | | Profit for the Year | 563,907 | 925,134 | -39.0% | | Profit Attributable to Owners of the Company | 400,337 | 713,191 | -43.9% | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2022, total assets decreased by 12.6% to HKD 8.139 billion, while total liabilities fell 21.2% to HKD 5.128 billion, resulting in a 5.9% increase in net assets (total equity) to HKD 3.010 billion Consolidated Statement of Financial Position Summary (As of December 31, HKD Thousand) | Item | 2022 | 2021 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 1,328,346 | 1,497,307 | -11.3% | | Current Assets | 6,810,522 | 7,836,642 | -13.1% | | **Total Assets** | **8,138,868** | **9,333,949** | **-12.8%** | | Current Liabilities | 4,886,120 | 6,216,080 | -21.4% | | Non-current Liabilities | 242,302 | 274,582 | -11.8% | | **Total Liabilities** | **5,128,422** | **6,490,662** | **-21.0%** | | **Net Assets (Total Equity)** | **3,010,446** | **2,843,287** | **+5.9%** | Notes to the Consolidated Financial Statements [Basis of Preparation and Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) The consolidated financial statements are prepared under HKFRS, with newly applied revised standards having no material impact, and the Group has not early adopted other new standards - The Group primarily engages in the **distribution of electronic components and semiconductor products**, **sale of commercial equipment and related services**, and **property investment**[7](index=7&type=chunk) - The financial statements are prepared in accordance with **Hong Kong Financial Reporting Standards (HKFRS)** and comply with disclosure requirements of the Listing Rules and Hong Kong Companies Ordinance[8](index=8&type=chunk) - Revised HKFRS applied for the first time this year had **no significant impact** on the Group's consolidated financial statements[9](index=9&type=chunk) [Revenue and Segment Information](index=8&type=section&id=Revenue%20and%20Segment%20Information) Total revenue is primarily from electronic components and semiconductor products, which saw a 29.4% decline, with Hong Kong as the largest market (67.6% of revenue, down 35.9%) and a single customer contributing 41.6% of total revenue Revenue by Type of Goods or Services (HKD Thousand) | Type of Goods or Services | 2022 | 2021 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sale of Electronic Components and Semiconductor Products | 24,818,008 | 35,140,829 | -29.4% | | Sale of Commercial Equipment and Provision of Related Ancillary Services | 69,144 | 72,594 | -4.8% | | Others | 59,026 | 57,852 | +2.0% | | **Total Revenue from Contracts with Customers** | **24,946,178** | **35,271,275** | **-29.3%** | Sales Revenue by Geographical Market (HKD Thousand) | Region | 2022 | 2021 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Hong Kong | 16,872,681 | 26,347,932 | -35.9% | | Mainland China | 6,381,942 | 6,988,900 | -8.7% | | Taiwan | 1,007,710 | 1,020,662 | -1.3% | | Other Regions | 706,219 | 739,984 | -4.6% | | **Total** | **24,968,652** | **35,297,778** | **-29.3%** | - Revenue from a **single largest customer A** was **HKD 10.386 billion**, accounting for **41.6%** of the Group's total revenue (2021: HKD 14.519 billion, 41.1%)[34](index=34&type=chunk)[56](index=56&type=chunk) [Income Tax Expense](index=10&type=section&id=Income%20Tax%20Expense) Income tax expense for 2022 decreased by 37.5% to HKD 115 million, mainly due to lower profit before tax, with the majority from Hong Kong and varying tax rates across regions Composition of Income Tax Expense (HKD Thousand) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Current Tax | 127,843 | 194,505 | | Deferred Tax Credit | (12,885) | (10,621) | | **Total Income Tax Expense** | **114,958** | **183,884** | - The Group's tax rates in different regions are: **Hong Kong at 16.5%**, **Mainland China at 25%**, and **Taiwan at 20%**[57](index=57&type=chunk)[58](index=58&type=chunk)[60](index=60&type=chunk) [Dividends](index=12&type=section&id=Dividends) The Board recommended a final dividend of HKD 25.00 cents per share, bringing the 2022 total annual dividend to HKD 35.00 cents per share, a 22.2% reduction from 2021 Dividends Per Share (HK Cents) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Interim Dividend | 10.00 | 15.00 | | Proposed Final Dividend | 25.00 | 30.00 | | **Total Annual Dividend** | **35.00** | **45.00** | - The **proposed final dividend** is subject to shareholders' approval at the upcoming Annual General Meeting[67](index=67&type=chunk) [Basic Earnings Per Share](index=13&type=section&id=Basic%20Earnings%20Per%20Share) Basic earnings per share for 2022 decreased by 43.9% to HKD 63.97 cents from HKD 113.96 cents in 2021, primarily due to lower profit with an unchanged number of ordinary shares Basic Earnings Per Share Calculation | Item | 2022 | 2021 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company for the Year (HKD Thousand) | 400,337 | 713,191 | | Number of Ordinary Shares (Thousand Shares) | 625,837 | 625,837 | | **Basic Earnings Per Share (HK Cents)** | **63.97** | **113.96** | Management Discussion and Analysis [Business Review](index=16&type=section&id=Business%20Review) In 2022, macroeconomic headwinds led to weak consumer demand and a significant revenue decline in electronic component distribution, particularly in mobile phones and consumer electronics, though LED lighting and display businesses achieved growth - Macroeconomic challenges including **geopolitical conflicts, trade protectionism, high inflation, and rising interest rates** weakened consumer confidence, creating downward pressure on the semiconductor industry[82](index=82&type=chunk) [Distribution of Electronic Components and Semiconductor Products](index=16&type=section&id=Distribution%20of%20Electronic%20Components%20and%20Semiconductor%20Products) The core electronic component distribution business saw a 29% revenue decrease to HKD 24.82 billion in 2022, primarily due to weak demand in mobile phone and consumer electronics segments - Electronic components segment sales revenue was **HKD 24.82 billion**, a **29% year-on-year decrease**[114](index=114&type=chunk) - Mobile phone segment revenue decreased as major Chinese brand phone customers adopted **conservative production plans** and focused on **inventory reduction**[115](index=115&type=chunk) - Consumer electronics segment revenue declined due to **sluggish demand** in the Chinese market for televisions, personal computers, 5G network equipment, and data centers[84](index=84&type=chunk) [LED Technology Solutions and Commercial Equipment](index=17&type=section&id=LED%20Technology%20Solutions%20and%20Commercial%20Equipment) LED lighting and display businesses achieved revenue growth through major project completions in Hong Kong and Singapore, while Sharp's B2B commercial equipment sales also performed satisfactorily due to recovering commercial spending - The LED lighting team completed **large-scale projects** with clients including HSBC, MTR, Hong Kong Disneyland, and Marina Bay Sands Singapore, recording **revenue growth**[85](index=85&type=chunk) - Sharp's B2B team achieved **satisfactory performance** driven by a **rebound in commercial spending**[97](index=97&type=chunk) [Property Investment](index=17&type=section&id=Property%20Investment) As of 2022, the Group held 18 investment properties in Hong Kong and China with a total book value of HKD 706 million (down from last year), generating HKD 20.1 million in rental income at a 2.8% annual return Property Investment Portfolio Overview | Indicator | 2022 | 2021 | | :--- | :--- | :--- | | Number of Investment Properties | 18 | 18 | | Total Book Value (HKD Million) | 706 | 810 | | Rental Income (HKD Million) | 20.1 | 24.2 | | Annual Return Rate | 2.8% | 3.0% | [Financial Review](index=18&type=section&id=Financial%20Review) In 2022, Group revenue and shareholder profit declined by 29.3% and 43.9% respectively, yet gross margin improved to 5.1%; financial health strengthened with current ratio rising to 139% and net gearing ratio dropping to 1%, though operating turnover periods lengthened 2022 Key Financial Performance | Indicator | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Revenue (HKD Million) | 24,968.7 | 35,297.8 | -29.3% | | Gross Profit (HKD Million) | 1,285.3 | 1,587.2 | -19.0% | | Gross Profit Margin | 5.1% | 4.5% | +0.6pp | | Profit Attributable to Shareholders (HKD Million) | 400.3 | 713.2 | -43.9% | Liquidity and Gearing Ratios (As of December 31) | Indicator | 2022 | 2021 | | :--- | :--- | :--- | | Current Ratio | 139% | 126% | | Net Gearing Ratio | 1% | 21% | Operating Efficiency (Turnover Days) | Indicator | 2022 | 2021 | | :--- | :--- | :--- | | Debtors Turnover Days | 40 | 31 | | Inventory Turnover Days | 37 | 29 | | Creditors Turnover Days | 42 | 35 | - Net cash inflow from operating activities significantly **increased to HKD 994 million** in 2022 from HKD 348 million in 2021[123](index=123&type=chunk) [Outlook](index=18&type=section&id=Outlook) For 2023, the Group anticipates ongoing challenges from slow global recovery, low demand visibility, and high inflation, but remains confident in its competitiveness and sustainable development through scale, strong customer relations, and experienced teams - Expected challenges for 2023 include **slow global economic recovery, low demand visibility, high inflation, and elevated interest costs**[99](index=99&type=chunk) - Core competencies include **economies of scale, robust customer relationships, strong financial strength, localized sales and engineering teams, and effective inventory management capabilities**[88](index=88&type=chunk) Other Information [Corporate Governance](index=19&type=section&id=Corporate%20Governance) The Group largely complied with the Corporate Governance Code in 2022, noting three deviations: combined Chairman and CEO roles, non-executive directors without specific terms, and no director liability insurance, though the company deems current measures adequate - Deviation from Code Provision C.2.1: The roles of **Chairman and Chief Executive Officer are not separated**, both held by Dr. Yim Yuk Lun[127](index=127&type=chunk) - Deviation from Code Provision B.2.2: **Non-executive directors are not appointed for specific terms** but are subject to retirement by rotation under the Company's articles[110](index=110&type=chunk) - Deviation from Code Provision C.1.8: The Company has **not made appropriate insurance arrangements** for potential legal actions against directors[109](index=109&type=chunk) [Employees and Remuneration Policy](index=19&type=section&id=Employees%20and%20Remuneration%20Policy) As of 2022, the Group employed approximately 450 staff in Greater China, offering competitive remuneration, provident fund, medical insurance, and performance-based discretionary bonuses - As of December 31, 2022, the Group employed approximately **450 staff** in the Greater China region, providing **competitive remuneration and benefits**[104](index=104&type=chunk) [Environmental, Social and Governance (ESG)](index=21&type=section&id=Environmental%2C%20Social%20and%20Governance%20(ESG)) The Group actively integrates ESG principles into its operations, demonstrating commitment to sustainability, and in 2022, donated HKD 3.513 million to charitable organizations in Hong Kong and China - In 2022, the Group **donated HKD 3,513,000** to charitable and other non-profit organizations in Hong Kong and China[112](index=112&type=chunk)

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]