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

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

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