Financial Performance - The company reported a revenue increase of HKD 7,697.3 million, representing a growth of 99.2%, from HKD 7,761.8 million in 2020 to HKD 15,459.1 million in 2021, primarily driven by a HKD 7,392.6 million increase in graphics card sales[21]. - The company achieved record high profits and gross margins, outpacing revenue growth, indicating strong operational efficiency[12]. - The gross profit for 2021 was HKD 4,287.2 million, an increase of HKD 3,491.8 million or 439.0% compared to HKD 795.4 million in 2020, with the gross margin rising from 10.2% to 27.7%[47]. - The group recorded a profit attributable to owners of the company of HKD 2,374.3 million in 2021, compared to HKD 207.3 million in 2020, reflecting strong sales performance[57]. - Earnings per share for 2021 were HKD 6.21 basic and HKD 6.14 diluted, compared to HKD 0.56 in 2020[58]. Sales and Revenue Growth - The demand for graphics cards remained robust, with the company’s own brand graphics cards leading sales throughout the year[12]. - Future sales growth is expected to be driven by the potential launch of next-generation products later in the year[15]. - Revenue from graphics cards rose by HKD 7,392.6 million, a growth of 119.7%, from HKD 6,177.4 million in 2020 to HKD 13,570.0 million in 2021, with the average selling price increasing by approximately 91.4%[42]. - Sales of proprietary brand graphics cards increased by HKD 5,739.8 million, a growth of 136.8%, from HKD 4,195.2 million in 2020 to HKD 9,935.0 million in 2021[9]. - ODM/OEM graphics card orders increased by HKD 1,652.8 million, an increase of 83.4%, from HKD 1,982.2 million in 2020 to HKD 3,635.0 million in 2021[23]. Regional Performance - The Asia-Pacific region's revenue increased by HKD 1,940.7 million, a growth of 61.4%, from HKD 3,159.0 million in 2020 to HKD 5,099.7 million in 2021[29]. - The EMEAI region's revenue was HKD 3,914.4 million, an increase of 114.5% from HKD 1,824.7 million in 2020[30]. - The NALA region's revenue was HKD 2,654.1 million, an increase of 132.9% from HKD 1,139.8 million in 2020[31]. - Revenue from China increased by HKD 2,152.6 million, a growth of 131.4%, from HKD 1,638.3 million in 2020 to HKD 3,790.9 million in 2021[32]. Operational Challenges - The company is closely monitoring the impact of global supply chain disruptions and inflationary pressures due to geopolitical tensions, particularly the conflict between Russia and Ukraine[16]. - The company faced inventory risks due to potential future declines in cryptocurrency prices, which could lead to further markdowns on graphics cards[40]. - The company noted that government policies regarding cryptocurrency could impact hardware demand, particularly for graphics cards[40]. Employee Welfare and ESG Commitment - The company continues to ensure a safe working environment for employees globally amid ongoing challenges from the COVID-19 pandemic[16]. - The company has identified 28 key ESG issues impacting its operations and stakeholder decisions[112]. - The report emphasizes the importance of stakeholder engagement to address concerns and expectations for sustainable development[101]. - The company has committed to enhancing employee welfare through competitive compensation and regular training programs[108]. - The company actively engages with stakeholders through various communication channels, including annual meetings and direct emails[105]. Environmental Initiatives - The total greenhouse gas emissions per million HKD of production cost decreased by 35.14% from 2.6153 tons of CO2 in 2020 to 1.6964 tons in 2021[133]. - The company aims to reduce greenhouse gas emissions by 1% per million HKD of production cost compared to 2020 levels[130]. - The company has implemented measures to enhance energy efficiency, including optimizing production equipment usage and upgrading high-energy-consuming devices[130]. - The company has established a series of environmental protection measures to mitigate its impact on the environment during daily operations[126]. - The company has not been accused of violating emission regulations during the reporting period[127]. Financial Position and Capital Management - Total equity increased by HKD 1,984.3 million, a rise of 179.9%, from HKD 1,103.1 million at the end of 2020 to HKD 3,087.4 million at the end of 2021[61]. - Non-current assets decreased by HKD 413.6 million, a decline of 60.5%, from HKD 683.2 million at the end of 2020 to HKD 269.6 million at the end of 2021[62]. - Cash and bank balances rose from HKD 1,124.6 million as of December 31, 2020, to HKD 3,765.1 million as of December 31, 2021, driven by strong sales growth[68]. - The current ratio improved from 1.2 as of December 31, 2020, to 1.8 as of December 31, 2021[67]. - The net debt-to-equity ratio improved from 8.0% as of December 31, 2020, to a net cash position of 95.2% as of December 31, 2021[68]. Corporate Governance and Compliance - The group emphasizes the importance of data protection and privacy, with no complaints received regarding data breaches during the reporting period[187]. - The group has a strict anti-corruption policy and has not made any financial or material political contributions during the reporting period[191]. - All employees are required to sign an annual declaration confirming compliance with the business ethics policy[192]. - The group encourages employees to report misconduct through established channels, ensuring confidentiality for whistleblowers[195]. - There were no complaints or lawsuits related to misconduct or corruption against the group or its employees during the reporting period[196].

Revenue Growth - Revenue for the first half of 2021 increased to HKD 6,849.3 million, representing a growth of 108.1% compared to HKD 3,290.8 million in the same period of 2020[12]. - Total revenue increased by HKD 3,558.5 million, a growth of 108.1%, from HKD 3,290.8 million in the first half of 2020 to HKD 6,849.3 million in the first half of 2021, primarily driven by strong sales of graphics cards[37]. - Revenue for the six months ended June 30, 2021, was HKD 6,849,280,000, a significant increase from HKD 3,290,773,000 for the same period in 2020, representing a growth of approximately 108.5%[107]. Graphics Card Sales - Sales of graphics cards rose by HKD 3,484.6 million, a growth of 140.8%, from HKD 2,474.3 million in the first half of 2020 to HKD 5,958.9 million in the first half of 2021[13]. - The average selling price of graphics cards increased by approximately 103.5% due to supply-demand imbalance and customer acceptance of price hikes[13]. - Own-brand graphics card sales surged by HKD 2,813.8 million, a growth of 175.9%, from HKD 1,600.1 million in the first half of 2020 to HKD 4,413.9 million in the first half of 2021[13]. - The company maintains strong demand for its RTX 3000 series graphics cards, which have been in short supply since their launch in September 2020[13]. - The company anticipates strong sales prospects for graphics cards, with supply shortages expected to continue driving performance in upcoming quarters[33]. EMS and ODM/OEM Revenue - EMS revenue increased by HKD 83.3 million compared to the same period last year, contributing to overall revenue growth[12]. - ODM/OEM image card orders increased by HKD 670.8 million, a growth of 76.7%, from HKD 874.2 million in the first half of 2020 to HKD 1,545.0 million in the first half of 2021[15]. - EMS business grew by HKD 83.3 million, an increase of 27.9%, from HKD 298.8 million in the first half of 2020 to HKD 382.1 million in the first half of 2021[15]. Regional Revenue Performance - Revenue from the EMEAI region in the first half of 2021 was HKD 1,700.7 million, an increase of 157.9% compared to HKD 659.5 million in the first half of 2020[20]. - Revenue from the NALA region in the first half of 2021 was HKD 1,099.9 million, a growth of 126.0% from HKD 486.6 million in the first half of 2020[21]. - Revenue from the China region in the first half of 2021 was HKD 1,811.1 million, an increase of 126.0% from HKD 801.4 million in the first half of 2020[22]. Profitability and Earnings - The group's gross profit for the first half of 2021 was HKD 1,864.1 million, an increase of HKD 1,566.6 million or 526.6% compared to HKD 297.5 million in the first half of 2020, with a gross margin rising from 9.0% to 27.2%[42]. - The group's profit attributable to owners for the first half of 2021 was HKD 932.2 million, a significant increase from HKD 31.7 million in the first half of 2020, reflecting strong sales performance[53]. - Basic and diluted earnings per share for the first half of 2021 were HKD 2.469 and HKD 2.430, respectively, compared to HKD 0.085 in the same period last year[54]. Cash Flow and Financial Position - Cash and bank balances increased from HKD 1,124.6 million to HKD 2,218.3 million, driven by strong sales growth during the first half of the year[61]. - The current ratio improved from 1.2 as of December 31, 2020, to 1.5 as of June 30, 2021[60]. - Net debt to equity ratio improved from 8.0% to 65.6%, reflecting significant cash inflow from increased sales revenue[61]. Challenges and Risks - The company faces risks related to rapid changes in the operating environment and competition, emphasizing the importance of timely product development and technological adoption[24]. - The ongoing COVID-19 pandemic continues to pose threats to supply chains, logistics, productivity, and consumer demand[26]. - The company may need to sell existing inventory at discounted prices if cryptocurrency prices decline again, increasing inventory risk[29]. Shareholder Returns and Dividends - The company declared an interim dividend of HKD 0.84 per share, totaling HKD 324,873,000 for the six months ended June 30, 2021, compared to zero in the previous year[96]. - The expected dividends are based on historical dividends, with the anticipated payout reflecting the company's performance and shareholder returns[93]. Corporate Governance - The company has maintained compliance with corporate governance codes, although the roles of Chairman and CEO are held by the same individual, which the board believes is beneficial for management[102]. - The audit committee has reviewed the unaudited interim results for the six months ended June 30, 2021, ensuring oversight of the financial reporting process[104].

CPartner® 香港聯合交易所：1263 相 能 集 團 有 限 公 司* PC Partner Group Limited 於 開 曼 群 島 註 冊 成 立 之 有 限 公司 2020 年 報 * 僅 供 議 別 | --- | --- | |----------------------|-------| | | | | 公司簡介 | 2 | | 公司資料 | 4 | | 主席報告 | 6 | | 管理層討論及分析 | 8 | | 環境、社會及管治報告 | 21 | | 企業管治報告 | 53 | | 董事及高級管理層 | 64 | | 董事會報告 | 68 | | 獨立核數師報告 | 77 | | 綜合全面收益表 | 82 | | 綜合財務狀況表 | 83 | | 綜合權益變動表 | 85 | | 綜合現金流量表 | 87 | | 綜合財務報表附註 | 89 | | 本集團持有之物業權益 | 176 | 目錄 栢能集團有限公司 2 公司簡介 栢能為電腦電子產品之領先製造商。我們 的主要產品為圖像顯示卡、主機板及迷你個 人電腦。我們亦為全球知名品牌提供一站式 電子製造服務。 作為行內領導者之一，我們利 ...

Revenue Performance - Total revenue for the first half of 2020 decreased by HKD 130.0 million, a decline of 3.8%, from HKD 3,420.8 million in the first half of 2019 to HKD 3,290.8 million[13]. - Graphics card sales dropped by HKD 232.9 million, a decrease of 8.6%, from HKD 2,707.2 million in the first half of 2019 to HKD 2,474.3 million in the first half of 2020[14]. - EMS revenue declined by HKD 20.6 million, a decrease of 6.4%, from HKD 319.4 million in the first half of 2019 to HKD 298.8 million in the first half of 2020[15]. - Revenue from other PC-related products and components increased by HKD 123.5 million, a growth of 31.3%, from HKD 394.2 million in the first half of 2019 to HKD 517.7 million in the first half of 2020[15]. - Sales in the Asia-Pacific region decreased by HKD 48.3 million, a decline of 3.5%, from HKD 1,391.6 million in the first half of 2019 to HKD 1,343.3 million in the first half of 2020[19]. - EMEAI region revenue for the first half of 2020 was HKD 659.5 million, an increase of HKD 48.0 million or 7.8% compared to HKD 611.5 million in the first half of 2019[20]. - NALA region revenue decreased by HKD 146.2 million, a decline of 23.1%, from HKD 632.8 million in the first half of 2019 to HKD 486.6 million in the first half of 2020[21]. - Revenue in the China region for the first half of 2020 was HKD 801.4 million, an increase of HKD 16.5 million or 2.1% compared to HKD 784.9 million in the first half of 2019[22]. - Revenue for the six months ended June 30, 2020, was HKD 3,290,773, a decrease of 3.8% compared to HKD 3,420,751 for the same period in 2019[82]. - Revenue from the Asia-Pacific region was HKD 1,343,314, a decrease from HKD 1,391,629 in the same period last year, representing a decline of approximately 3.4%[126]. - Revenue from North America and Latin America (NALA) dropped to HKD 486,546 from HKD 632,748, reflecting a significant decrease of about 23.1%[126]. - Revenue from China increased to HKD 801,398 from HKD 784,919, showing a growth of approximately 2.0%[126]. - Revenue from Europe, the Middle East, Africa, and India (EMEAI) rose to HKD 659,515 from HKD 611,455, indicating an increase of about 7.9%[126]. Profitability and Earnings - The company recorded a profit attributable to shareholders of HKD 31.7 million in the first half of 2020, compared to a loss of HKD 79.2 million in the same period of 2019, representing a significant turnaround[38]. - Earnings per share for the first half of 2020 were HKD 0.085, while the loss per share for the first half of 2019 was HKD 0.213[41]. - The net profit for the period was HKD 31,486, a significant recovery from a loss of HKD 79,820 in the same period last year[82]. - For the six months ended June 30, 2020, the company reported a profit attributable to shareholders of HKD 31,723,000, compared to a loss of HKD 79,197,000 for the same period in 2019[151]. Expenses and Costs - Gross profit increased by HKD 137.1 million or 85.5% to HKD 297.5 million in the first half of 2020, with a gross margin improvement from 4.7% to 9.0%[34]. - Operating expenses rose by HKD 11.9 million or 4.6% to HKD 268.8 million in the first half of 2020, primarily due to increased depreciation of property, plant, and equipment[36]. - Research and development expenses were HKD 22,607,000 for the six months ended June 30, 2020, down from HKD 25,640,000 in the same period of 2019, a decline of approximately 11.8%[141]. - Interest expenses on bank loans and other borrowings decreased to HKD 16,696,000 in June 2020 from HKD 25,512,000 in June 2019, a reduction of approximately 34.7%[137]. Financial Position - Total equity increased from HKD 879.8 million as of December 31, 2019, to HKD 905.7 million as of June 30, 2020, an increase of 2.9%[42]. - Total non-current assets decreased by 34.1% from HKD 771.0 million as of December 31, 2019, to HKD 507.8 million as of June 30, 2020[43]. - The current ratio improved from 1.1 as of December 31, 2019, to 1.2 as of June 30, 2020[44]. - Cash and bank balances decreased from HKD 906.9 million as of December 31, 2019, to HKD 725.7 million as of June 30, 2020[44]. - Trade and other receivables increased by 2.7% from HKD 1,403.5 million as of December 31, 2019, to HKD 1,441.7 million as of June 30, 2020[46]. - Trade payables decreased by 14.5% from HKD 1,311.2 million as of December 31, 2019, to HKD 1,120.6 million as of June 30, 2020[47]. - Total assets as of June 30, 2020, were HKD 3,707,646, down from HKD 4,031,773 as of December 31, 2019[84]. - Current liabilities decreased to HKD 2,679,387 from HKD 3,019,673, indicating improved liquidity[87]. - The company reported a decrease in retained earnings to HKD 567,625,000 as of June 30, 2020, down from HKD 647,107,000 as of January 1, 2019, representing a decline of approximately 12.3%[89]. Impact of COVID-19 - The decline in graphics card sales was primarily due to the temporary closure of factories in mainland China and supply chain disruptions caused by the COVID-19 pandemic[13]. - The COVID-19 pandemic has significantly impacted supply chains and production capabilities, posing risks to consumer and business demand[26]. - The ongoing pandemic is expected to sustain strong demand for personal computers and gaming hardware as more people rely on technology for work and entertainment[28]. - The group faced production disruptions due to factory closures and material supply issues caused by the COVID-19 pandemic[107]. - The impact of COVID-19 required significant judgments and estimates, particularly regarding the assessment of rent concessions and government subsidies[118]. Government Support and Subsidies - The group received government subsidies amounting to HKD 1,492,000 related to employee salaries and HKD 5,179,000 for cost exemptions during the six months ended June 30, 2020[115]. - The company recognized a government grant of HKD 2,999,000 related to wage subsidies for July and August 2020[200]. - The company received government subsidies amounting to HKD 2,075,000, which included HKD 1,492,000 for employee salaries, reflecting support from various local government agencies[136]. Corporate Governance - The board of directors confirmed compliance with the corporate governance code, with the chairman and CEO roles held by the same individual, Mr. Wang Xihao[77]. - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2020[80]. Shareholder Information - Major shareholders include Perfect Choice Limited with 14.76% and Mr. Wang Xihau with 14.65% of the shares[68]. - The company did not declare an interim dividend for the six months ended June 30, 2020[74]. - The company did not recommend an interim dividend for the six months ended June 30, 2020, and 2019[149].

Financial Performance - The company's revenue decreased by 17.2% compared to the previous year, primarily due to the oversupply of graphics cards since the cryptocurrency price crash in 2018[17]. - The company achieved a profit of HKD 17.4 million, indicating a significant decline in profitability[17]. - Total revenue decreased by 17.2% from HKD 9,122.3 million in 2018 to HKD 7,556.5 million in 2019, primarily due to an 18.5% drop in graphics card sales[24]. - Graphics card business revenue fell from HKD 7,273.6 million in 2018 to HKD 5,924.4 million in 2019, a decrease of HKD 1,349.2 million[24]. - EMS revenue declined by 10.3% from HKD 700.7 million in 2018 to HKD 628.5 million in 2019, mainly due to a reduction in customer orders[25]. - Revenue from other PC-related products decreased by 12.6% from HKD 1,148.0 million in 2018 to HKD 1,003.6 million in 2019, attributed to a decline in blockchain application system demand[25]. - EMEAI region revenue dropped by 42.3% from HKD 2,300.5 million in 2018 to HKD 1,326.9 million in 2019, impacted by excess inventory of graphics cards[29]. - NALA region revenue decreased by 9.6% from HKD 1,345.9 million in 2018 to HKD 1,216.6 million in 2019, due to reduced ODM/OEM customer orders[32]. - China region revenue increased by 6.6% from HKD 1,960.7 million in 2018 to HKD 2,090.1 million in 2019, driven by increased ODM/OEM orders[33]. - Gross profit for 2019 was HKD 516.3 million, down 46.1% from HKD 957.4 million in 2018, with a gross margin decline from 10.5% to 6.8%[41]. - The company recorded a profit attributable to owners of HKD 10.3 million in 2019, a significant drop from HKD 270.8 million in 2018[48]. Inventory and Supply Chain Management - The company is actively managing inventory and has taken measures to clear unsold stock, including selling older graphics cards at a loss[17]. - The company has taken proactive measures to clear excess inventory of graphics cards due to a market oversupply following the cryptocurrency price crash[41]. - The company is monitoring supply chain impacts and will take immediate action to mitigate material supply issues to avoid production disruptions[18]. Business Strategy and Future Outlook - The company plans to explore new business opportunities, including investments in joint ventures related to data centers and rental equipment for AI and deep learning applications[24]. - The company aims to launch more new products to drive revenue growth, especially in the traditionally strong second half of the year[24]. - The company remains cautious about the challenges posed by COVID-19 and unresolved U.S. tariff issues, prioritizing employee health and business performance[24]. - The company aims to strengthen strategic partnerships with technology leaders like AMD and NVIDIA to enhance product development[35]. - The company plans to continuously review human resources to attract talent for product development and maintain competitiveness[35]. Environmental Sustainability - The company is committed to sustainable business operations, focusing on environmental sustainability, product responsibility, and occupational health and safety[74]. - The company has established a green procurement and production philosophy throughout the product lifecycle to minimize environmental impact[76]. - The company aims to reduce energy use and GHG emissions based on every 1,000 yuan of revenue, establishing a benchmark for performance evaluation[82]. - The company has implemented four management systems: ISO9001, QC080000, ISO14001, and OHSAS18001, to ensure quality and environmental management[74]. - The company has been calculating greenhouse gas (GHG) emissions since 2013, with a downward trend in total emissions relative to revenue from 2018 to 2019[75]. - The company aims to achieve zero waste disposal by ensuring 100% of hazardous waste is transferred to qualified environmental companies[93]. - The company implemented measures to reduce emissions, including optimizing energy use and upgrading equipment, contributing to the overall reduction in greenhouse gas emissions[100]. Employee Management and Development - The total number of employees at the end of 2019 was approximately 2,027, with male employees accounting for about 56% (1,136) and female employees for about 44% (891)[126]. - The employee turnover rate in 2019 was 19.6%, an increase from 12.6% in 2018, primarily due to seasonal fluctuations in orders[129]. - The company has established a comprehensive occupational health and safety management system based on OHSAS18001 standards[135]. - The company provides financial support for employees to pursue cultural and technical certification courses, promoting self-improvement[137]. - The company has a comprehensive employee development training program that has received positive feedback from employees[140]. - All employees are required to complete at least 24 hours of annual training, with 100% compliance in 2019[141]. Corporate Governance - The board of directors consists of five executive directors, one non-executive director, and three independent non-executive directors, ensuring adequate independent oversight[167]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations, with a commitment to best practices[166]. - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Investment Committee to assist in effective governance[182]. - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and risk management[183]. - The board has delegated authority to senior management for daily operations, ensuring effective resource management[172]. - The company emphasizes continuous professional development for directors to enhance their knowledge and skills[179]. Social Responsibility - The company conducts annual internal audits to assess social responsibility performance and identify improvement opportunities[124]. - The company has implemented measures to prevent child labor and forced labor, ensuring compliance with local labor laws[124]. - The company provides training and guidance to suppliers to help them meet social responsibility requirements[149]. - The company adheres to local and international labor laws, ensuring that working hours do not exceed legal limits[145]. - The company has a strict policy against child labor and conducts thorough identity checks during the hiring process[145]. - The company continues to engage in community development through various initiatives, including partnerships with schools and donations to support underprivileged community members[164].

Revenue Performance - Total revenue for the first half of 2019 decreased by 38.2% to HKD 3,420.8 million from HKD 5,538.4 million in the same period of 2018, primarily due to a 40.1% decline in graphics card sales[14]. - Graphics card sales dropped from HKD 4,517.3 million in the first half of 2018 to HKD 2,707.2 million in the first half of 2019, a decrease of HKD 1,810.1 million[15]. - ODM/OEM orders for graphics cards fell by 41.5% from HKD 1,604.7 million to HKD 939.3 million, attributed to excess inventory in market channels[15]. - Own brand graphics card sales decreased by 39.3% from HKD 2,912.6 million to HKD 1,767.9 million, mainly due to poor market reception of NVIDIA's new generation graphics cards[15]. - EMS revenue declined by 13.3% from HKD 368.2 million to HKD 319.4 million, primarily due to reduced orders for ATM and POS systems[16]. - Revenue from other PC-related products and components fell by 39.6% from HKD 652.9 million to HKD 394.2 million, partly due to CPU supply issues affecting PC sales[16]. - Brand business sales fell from HKD 3,185.1 million in the first half of 2018 to HKD 1,864.0 million in the first half of 2019, a drop of 41.5%[29]. - Non-brand business revenue decreased from HKD 2,353.3 million in the first half of 2018 to HKD 1,556.8 million in the first half of 2019, a decline of 33.8%[29]. - Revenue in the EMEAI region dropped from HKD 1,395.9 million in the first half of 2018 to HKD 611.5 million in the first half of 2019, a decrease of 56.2%[19]. - Revenue in the China region fell from HKD 1,246.8 million in the first half of 2018 to HKD 784.9 million in the first half of 2019, a decline of 37.0%[22]. - Revenue in the NALA region decreased from HKD 707.7 million in the first half of 2018 to HKD 632.8 million in the first half of 2019, a drop of 10.6%[20]. - The revenue from the graphics card business decreased from HKD 4,517.3 million in the first half of 2018 to HKD 2,707.2 million in the first half of 2019, a decline of 40.1%[30]. - Total revenue for the six months ended June 30, 2019, was HKD 3,420,751,000, a decrease of 38.3% compared to HKD 5,538,381,000 for the same period in 2018[149]. - Revenue from the Asia-Pacific region was HKD 1,391,629,000, down 36.4% from HKD 2,187,988,000 in 2018[149]. Financial Performance - Gross profit for the first half of 2019 was HKD 160.4 million, a decrease of HKD 556.7 million or 77.6% from HKD 717.1 million in the first half of 2018, with gross margin dropping from 12.9% to 4.7%[33]. - The company recorded a loss attributable to shareholders of HKD 79.2 million in the first half of 2019, compared to a profit of HKD 340.0 million in the same period of 2018[34]. - The company reported a net loss for the period of HKD 79,820,000, compared to a profit of HKD 339,785,000 in the same period of 2018[83]. - The company recorded a loss before tax of HKD 96,104,000, contrasting with a profit of HKD 390,573,000 in the previous year[83]. - The basic and diluted loss per share for the six months ended June 30, 2019, was HKD (0.213), compared to earnings of HKD 0.764 per share for the same period in 2018, reflecting a substantial decline in profitability[182]. - The company did not recommend an interim dividend for the six months ended June 30, 2019, compared to an interim dividend of HKD 0.275 per share totaling HKD 102,326,000 in 2018[74]. - The company’s income tax expense for the six months ended June 30, 2019, was a credit of HKD 16,284,000, compared to an expense of HKD 50,788,000 for the same period in 2018, indicating a significant reduction in tax liabilities[172]. Operational Changes - The company continues to focus on developing high-performance products and solutions in collaboration with leading GPU suppliers NVIDIA and AMD[13]. - The decline in sales is expected to impact future performance, with the company monitoring market conditions closely[14]. - The company aims to maintain its competitive edge through innovation and advanced manufacturing capabilities[6]. - Future product launches and market strategies will be influenced by the evolving demand and technological advancements in the industry[13]. - The company plans to invest more resources in the cloud data center sector, which is one of the fastest-growing areas in the IT industry[27]. - The new series of mid to high-end graphics cards launched recently received positive feedback and may contribute more revenue in the second half of 2019[27]. - The company aims to enhance its long-term performance despite challenges posed by the global economic and political environment[28]. Asset and Liability Management - Total current assets as of June 30, 2019, were HKD 3,019.6 million, down from HKD 4,249.8 million on December 31, 2018[42]. - Total equity decreased by HKD 84.2 million or 9.6% from HKD 877.3 million on December 31, 2018, to HKD 793.1 million on June 30, 2019[41]. - The net debt-to-equity ratio increased from 102.2% on December 31, 2018, to 126.2% on June 30, 2019, due to losses during the period and the adoption of new accounting standards[44]. - Trade receivables decreased by HKD 7.1 million or 0.8% from HKD 875.1 million on December 31, 2018, to HKD 868.0 million on June 30, 2019[45]. - Trade payables decreased by 537.0 million HKD to 866.8 million HKD, a reduction of 38.3% due to decreased sales volume[51]. - Inventory value dropped by 961.3 million HKD to 1,536.2 million HKD, a decrease of 38.5%, with inventory turnover days increasing from 86 to 112 days[51]. - Total current liabilities reduced to HKD 2,586,484,000 from HKD 3,480,599,000, a decrease of around 26%[86]. - The group reported a total asset increase of HKD 168,493 thousand as of January 1, 2019, due to the adoption of HKFRS 16, with right-of-use assets recognized at HKD 168,529 thousand[110]. - The total liabilities increased by HKD 168,493 thousand, with non-current lease liabilities at HKD 144,680 thousand and current lease liabilities at HKD 23,813 thousand[110]. Cash Flow and Financing - Operating cash flow showed a net outflow of HKD 220,883,000 compared to HKD 157,933,000 in the previous period, indicating a worsening cash flow situation[94]. - The total cash outflow from financing activities was HKD 22,194,000, showing a shift in cash flow classification due to the new accounting standard[126]. - The estimated operating lease-related cash flow for 2019 was HKD 183,074,000, compared to HKD 197,747,000 in 2018[126]. - The total financing costs for the period were HKD 28,043,000, an increase from HKD 21,314,000 in the same period last year[162]. - Financing costs increased by HKD 6.7 million or 31.5% to HKD 28.0 million in the first half of 2019, with financing costs as a percentage of revenue rising from 0.4% to 0.8%[38]. Accounting Standards and Compliance - The company adopted HKFRS 16 on January 1, 2019, recognizing right-of-use assets and lease liabilities[132]. - The group’s interim financial statements were prepared in accordance with the applicable disclosure requirements of the Hong Kong Stock Exchange and HKAS 34[101]. - The adoption of HKFRS 16 resulted in significant changes in accounting treatment for leases, primarily affecting lessee accounting[109]. - The group’s interim financial statements have been reviewed by the audit committee but remain unaudited[104]. - The company assessed for impairment of right-of-use assets as of January 1, 2019, in accordance with HKAS 36[139].