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]

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]