Financial Performance - The company's profit attributable to shareholders for 2023 was HKD 60.8 million, a decrease of 91.3% from HKD 702.5 million in 2022[2]. - Financial asset impairment losses increased from HKD 0.5 million in 2022 to HKD 3.1 million in 2023, representing a growth of 520.0%[1]. - Total equity decreased from HKD 2,848.8 million as of December 31, 2022, to HKD 2,772.8 million as of December 31, 2023, a decline of 2.7%[4]. - Total current assets as of December 31, 2023, were HKD 4,627.9 million, down from HKD 5,428.4 million as of December 31, 2022[5]. - The production cost for 2023 was HKD 6,886.23 million, a decrease from HKD 8,331.53 million in 2022, reflecting a reduction of approximately 17.3%[170]. Employee Statistics - The number of employees decreased from 2,714 in 2022 to 2,490 in 2023[17]. - The total number of employees in the group reached 2,490 as of December 31, 2023, a decrease from 2,714 in 2022[138]. - The number of employees aged 30 and below decreased to 756 in 2023 from 899 in 2022, showing a decline of approximately 16%[174]. - Full-time employees numbered 2,484 in 2023, down from 2,714 in 2022, indicating a decrease of 8.5%[174]. - During the reporting period, 92.36% of employees received training, with an average of 14.04 hours of training per employee[120]. Environmental Impact - The total greenhouse gas emissions increased in 2023 due to higher consumption from new factories and increased vehicle usage as activities resumed post-pandemic[42]. - Dongguan Baoneng's energy consumption per million HKD of product production cost was 2,556.32 kWh, an increase of 29.89% compared to 2022, primarily due to increased direct energy usage[76]. - In 2023, the greenhouse gas emissions per million HKD of production cost increased by 29.79% to 1.4455 tons of CO2, compared to 1.1137 tons in 2022, due to the inclusion of new facilities' natural gas and electricity consumption[88]. - The total amount of non-hazardous waste generated per million HKD of production cost increased by 27.12% to 0.0075 tons, attributed to the additional waste from new facilities[91]. - The company has implemented various policies to minimize environmental impact, including greenhouse gas management guidelines and waste management procedures[81]. Corporate Governance and Compliance - The board is responsible for overseeing ESG matters and ensuring effective management and internal control systems are in place[45]. - The ESG working team, led by the CFO, is tasked with collecting, analyzing, and verifying ESG data to assist the board in addressing ESG-related issues[46]. - The company emphasizes the importance of employee rights and creating a work environment that fosters value and innovation[85]. - Dongguan Baoneng emphasizes compliance with labor laws, strictly prohibiting child labor and forced labor in its operations[122]. - The company has not received any complaints regarding misconduct or illegal activities during the reporting period, indicating a strong ethical compliance framework[164]. Sustainability Initiatives - The company aims to continue efforts to reduce or maintain greenhouse gas emissions per million HKD of production cost by the end of the fiscal year 2024[42]. - The company has established an energy management program to comply with national energy-saving laws and promote resource conservation among employees[97]. - The company will continue to invest resources to improve water efficiency as part of its sustainable growth objectives[79]. - The group has committed to using environmentally friendly packaging materials and has redesigned packaging to reduce paper and plastic usage[132]. - The company has implemented various energy-saving measures, including installing solar panels and upgrading production and lighting systems, to optimize energy usage[98]. Product Quality and Safety - The company has not experienced any product returns or recalls due to safety and health issues in 2023, maintaining a strong product safety record[159]. - The group strictly controls product quality and conducts various safety and reliability tests to ensure consumer safety[183]. - The group has implemented a quality certification management system in accordance with ISO 9001 standards to ensure product safety and quality[159]. - The group has achieved ISO45001 certification for its occupational health and safety policies and procedures[147]. - The group processed a total of 4 customer complaints regarding products or services, all of which were handled according to the established procedures[186].

Financial Performance - Total revenue for 2023 was HKD 9,167,215,000, a decrease of 14.9% compared to HKD 10,775,308,000 in 2022[18] - Revenue for the year ended December 31, 2023, was HKD 9,167.2 million, a decrease of 14.9% from HKD 10,775.3 million in 2022[24] - The total comprehensive income for the year was HKD 58.5 million, down from HKD 694.6 million in 2022, highlighting the overall decline in financial performance[25] - The company's net profit attributable to shareholders for 2023 was HKD 60,843,000, a significant decrease from HKD 702,484,000 in 2022, representing a decline of approximately 91.3%[67] - Profit attributable to owners of the company decreased by 91.3% to HKD 60.8 million from HKD 702.5 million in 2022, with a net profit margin of 0.7% versus 6.5%[24] - The group's operating profit attributable to shareholders was HKD 60.8 million in 2023, a significant drop from HKD 702.5 million in 2022[149] Revenue Breakdown - Revenue from the Asia-Pacific region was HKD 3,274.2 million, down from HKD 3,733.9 million, while North America and Latin America revenue decreased to HKD 1,282.3 million from HKD 2,078.5 million[36] - Sales of graphics cards accounted for HKD 7,266.2 million, down from HKD 8,994.8 million in 2022, indicating a decline in this key product segment[36] - The EMS business revenue fell from HKD 828.9 million in 2022 to HKD 739.0 million in 2023, a decrease of 10.8%[82] - Brand business revenue decreased from HKD 7,047.3 million in 2022 to HKD 5,815.6 million in 2023, a decline of 17.5%[83] - Revenue from other PC-related products and components increased from HKD 951.6 million in 2022 to HKD 1,162.1 million in 2023, an increase of 22.1%[103] Asset and Liability Changes - Total current assets decreased to HKD 4,627,894,000 in 2023 from HKD 5,428,391,000 in 2022, a decline of 14.7%[5] - Total non-current assets decreased to HKD 667,473,000 in 2023 from HKD 733,619,000 in 2022, a decline of 9%[5] - Total liabilities decreased to HKD 2,521,152,000 in 2023 from HKD 3,213,671,000 in 2022, a decrease of 21.6%[5] - Net assets decreased to HKD 2,774,215,000 in 2023 from HKD 2,851,145,000 in 2022, a decrease of 2.7%[6] - The company's trade payables increased to HKD 1,046,866,000 in 2023 from HKD 965,382,000 in 2022, reflecting an increase of approximately 8%[54] Cash Flow and Financing - Cash and bank balances increased to HKD 2,491,217,000 in 2023 from HKD 2,207,323,000 in 2022, representing a growth of 12.9%[5] - The company experienced a significant increase in financing costs, which rose to HKD 59.3 million from HKD 32.6 million in the previous year[25] - The company’s income tax expense for 2023 was HKD 28,248,000, a decrease from HKD 141,311,000 in 2022, representing a decline of about 80%[64] - The net cash equity ratio rose from 11.9% as of December 31, 2022, to 50.8% as of December 31, 2023, driven by increased cash and bank balances and reduced borrowings[154] Inventory and Receivables - Inventory decreased significantly to HKD 1,135,492,000 in 2023 from HKD 1,831,959,000 in 2022, a reduction of 38%[5] - The company's inventory levels for raw materials decreased from HKD 1,106,830,000 in 2022 to HKD 639,171,000 in 2023[69] - The net trade receivables decreased to HKD 752,767,000 in 2023 from HKD 1,155,788,000 in 2022, reflecting a decline of approximately 35%[50] - Trade and other receivables decreased by 29.1% to HKD 894.1 million, with trade receivables down 34.9% to HKD 752.7 million[125] Research and Development - Research and development expenses increased to HKD 74,971,000 in 2023 from HKD 64,286,000 in 2022, an increase of 16.5%[23] - The company’s research and development expenses included depreciation of machinery and equipment, contributing to the overall expenditure for the year[63] Corporate Governance and Management - The company complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules, with some deviations noted[183] - The chairman and CEO roles were held by the same individual, Mr. Wang Xihao, during the fiscal year, which is a deviation from the governance code[184] - The audit committee consists of four independent non-executive directors, ensuring oversight of the financial reporting process[185] Future Outlook and Strategy - The company plans to continue its focus on expanding its market presence and developing new technologies to enhance its product offerings[56] - The company plans to launch a new line of GPU servers for AI and machine learning in Q1 2024, which is expected to contribute to future sales and profits[112] - The group plans to launch a new series of GPU gaming cards in January 2024, anticipating strong demand from gamers[139] - The company aims to continue investing in product innovation and operational excellence despite geopolitical uncertainties, positioning itself favorably for future growth[90]

Revenue Performance - Total revenue decreased from HKD 6,607.8 million in the first half of 2022 to HKD 4,175.4 million in the first half of 2023, a decline of 36.8%[15] - Brand business revenue fell from HKD 4,450.1 million in the first half of 2022 to HKD 2,842.5 million in the first half of 2023, a decline of 36.1%[8] - ODM/OEM graphics card sales dropped from HKD 1,417.9 million in the first half of 2022 to HKD 563.1 million in the first half of 2023, a decrease of 60.3%[7] - Revenue in the Asia-Pacific region decreased from HKD 2,424.7 million in the first half of 2022 to HKD 1,438.8 million in the first half of 2023, a drop of 40.7%[9] - Revenue in China was HKD 939.3 million in the first half of 2023, down from HKD 1,181.1 million in the first half of 2022, a decrease of 20.5%[10] - Revenue in the NALA region fell to HKD 638.0 million, down 54.7% from HKD 1,409.6 million in the first half of 2022, primarily due to declining sales in the US and high inflation[32] - Sales in all regions dropped significantly by 20.5% to 54.7% compared to the same period last year[31] - The EMEAI region reported revenue of HKD 1,159,322 thousand, a decline of 27.2% compared to HKD 1,592,376 thousand in the previous year[107] Financial Performance - Net profit for the period was HKD 19,175,000, a significant decline of 97.6% from HKD 801,876,000 in the same period last year[62] - Gross profit for the same period was HKD 323,752,000, down 76.4% from HKD 1,365,816,000 in the previous year[62] - For the six months ended June 30, 2023, the company reported revenue of HKD 4,175,441,000, a decrease of 37% compared to HKD 6,607,825,000 for the same period in 2022[62] - The company reported a profit of HKD 20.102 million for the six months ended June 30, 2023, compared to HKD 802.129 million for the same period in 2022, indicating a significant decline in profitability[92] - The company declared an interim dividend of HKD 0.10 per share, totaling HKD 38,788,000, compared to HKD 0.80 per share and HKD 310,147,000 in the prior year[55] Cost and Expenses - The total sales cost for the six months ended June 30, 2023, was HKD 3,851,689,000, down from HKD 5,242,009,000 in the same period of 2022, representing a reduction of approximately 26.5%[163] - Employee costs for the first half of 2023 were HKD 194,008,000, significantly lower than HKD 316,581,000 in the previous year, indicating a decrease of about 38.7%[163] - Research and development expenses rose to HKD 39,340,000 in the first half of 2023, compared to HKD 29,016,000 in the same period of 2022, reflecting an increase of about 35.7%[163] Cash Flow and Liquidity - Cash and bank balances increased from HKD 2,207.3 million as of December 31, 2022, to HKD 2,231.1 million as of June 30, 2023[20] - Operating cash generated was HKD 2,196,866 thousand, significantly up from HKD 913,538 thousand in the previous year, marking an increase of 140.5%[114] - The company reported a net decrease in cash and cash equivalents of HKD 157,323 thousand, compared to a much larger decrease of HKD 1,004,143 thousand in the same period last year[114] - The cash and cash equivalents at the end of the period stood at HKD 2,034,787 thousand, down from HKD 2,738,107 thousand a year earlier[114] Liabilities and Equity - Total assets decreased to HKD 5,054,549,000 from HKD 6,155,439,000, reflecting a reduction of approximately 17.9%[64] - Current liabilities were reported at HKD 2,202,143,000, down from HKD 3,207,100,000, indicating a decrease of 31.3%[66] - The total equity attributable to owners of the company was HKD 2,768,746,000, down from HKD 2,848,806,000, a decrease of 2.8%[66] - Total borrowings as of June 30, 2023, were HKD 954,586,000, a significant decrease of 45.1% from HKD 1,738,733,000 as of December 31, 2022[196] Tax and Financing - Financing costs increased from HKD 9.4 million in the first half of 2022 to HKD 35.2 million in the first half of 2023, an increase of 274.5%[16] - Income tax expense decreased from HKD 160.2 million in the first half of 2022 to HKD 10.5 million in the first half of 2023, a reduction of 93.4%[17] - The total tax expense for the six months ended June 30, 2023, was HKD 10,540, a decrease of 93.4% compared to HKD 160,217 for the same period in 2022[141] Market Conditions and Challenges - The ongoing geopolitical tensions and economic factors are expected to impact consumer spending and corporate investment, affecting market confidence[35] - The impact of US-China trade restrictions on technology and product imports may increase product costs and ultimately affect consumer demand[35] - The company anticipates challenges in the market due to the ongoing economic downturn and geopolitical issues[36] Corporate Governance and Compliance - The company continues to comply with various social responsibility standards, including ISO9001 and ISO14001[34] - The board confirmed compliance with the corporate governance code, except for specific deviations noted in the report[58] - The company has not established an internal audit function but has engaged an external auditor to assess its risk management and internal control systems, enhancing governance and oversight[82]

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of HKD 4,175.4 million, a decrease of 36.8% compared to HKD 6,607.8 million in the same period of 2022[5]. - Gross profit for the same period was HKD 323.7 million, down 76.3% from HKD 1,365.8 million, resulting in a gross margin of 7.8%, a decline of 62.3% year-over-year[5]. - The profit attributable to the company's owners was HKD 20.1 million, a significant drop of 97.5% from HKD 802.1 million, leading to a net profit margin of 0.5%, down 95.9% from the previous year[5]. - Revenue for the six months ended June 30, 2023, was HKD 4,175,441, a decrease of 37% compared to HKD 6,607,825 for the same period in 2022[23]. - The net profit for the period was HKD 19,175, a sharp decrease from HKD 801,876 in the previous year, indicating a decline of approximately 97.6%[24]. - Basic earnings per share for the six months ended June 30, 2023, was HKD 0.052, compared to HKD 2.070 in 2022, representing a decrease of 97.5%[24]. - The total comprehensive income for the period was HKD 15,662, a significant drop from HKD 794,720 in the same period last year[23]. Revenue Breakdown - Revenue from graphics cards was HKD 3,333.9 million, a decrease of 42.4% from HKD 5,781.5 million in the previous year[21]. - Brand business revenue was HKD 2,842.6 million, down from HKD 4,450.1 million, while non-brand business revenue was HKD 1,332.9 million[22]. - Revenue from the Asia-Pacific region decreased to HKD 1,438,821,000 in 2023 from HKD 2,424,655,000 in 2022, representing a decline of 40.7%[50]. - Revenue from the NALA region decreased by 54.7% to HKD 638.0 million from HKD 1,409.6 million, primarily due to declining sales in the U.S. and currency depreciation in Latin America[76]. - Revenue in China for the first half of 2023 was HKD 939.3 million, a decrease of HKD 241.8 million or 20.5% compared to HKD 1,181.1 million in the first half of 2022, attributed to slow economic recovery and RMB depreciation[89]. - ODM/OEM revenue dropped by 38.2% to HKD 1,332.9 million from HKD 2,157.7 million year-on-year, primarily due to geopolitical and economic instability affecting consumer spending[74]. Cost and Expenses - The cost of sales for the six months ended June 30, 2023, was HKD 3,851,689,000, down from HKD 5,242,009,000 in 2022, reflecting a decrease of 26.5%[59]. - Material costs as a percentage of sales increased from 77.3% in the first half of 2022 to 89.3% in the first half of 2023, an increase of 12.0%[115]. - Operating expenses decreased by 14.3% from HKD 358.2 million in the first half of 2022 to HKD 306.8 million in the first half of 2023[115]. - Administrative expenses decreased by 29.9% from HKD 300.0 million in the first half of 2022 to HKD 210.3 million in the first half of 2023[116]. - Research and development expenses for the period were HKD 39,340,000, an increase from HKD 29,016,000 in the previous year, indicating a rise of 35.7%[59]. Assets and Liabilities - Non-current assets, including property, plant, and equipment, totaled HKD 585.6 million as of June 30, 2023, compared to HKD 596.4 million at the end of 2022[8]. - Current assets decreased to HKD 4,346.4 million from HKD 5,421.8 million, with inventory dropping to HKD 1,152.1 million from HKD 1,832.0 million[8]. - Total assets were reported at HKD 5,054.5 million, down from HKD 6,155.4 million at the end of 2022[9]. - Trade receivables decreased by HKD 423.0 million, from HKD 1,184.7 million as of December 31, 2022, to HKD 761.7 million as of June 30, 2023, a decline of 35.7% consistent with the drop in sales[155]. - Trade payables amounted to HKD 798.621 million as of June 30, 2023, down from HKD 965.382 million at the end of 2022[81]. Dividends and Shareholder Returns - The company declared a special dividend of HKD 0.25 per share for the year 2022, compared to HKD 0 for the previous year[44]. - The company plans to pay an interim dividend of HKD 0.10 per share for the six months ended June 30, 2023, compared to HKD 0.80 per share in 2022, totaling HKD 38,788,000 versus HKD 310,147,000 in the prior year[63]. - The board proposed an interim dividend of HKD 0.10 per share, totaling an estimated HKD 38.8 million, reflecting a strong cash position[132]. Inventory and Risk Management - The company adopted a more conservative approach to reduce inventory risks associated with purchasing GPUs, particularly from the previous generation product line[88]. - The group recorded a profit attributable to owners of HKD 20.1 million for the first half of 2023, a significant decrease of HKD 782 million or 97.5% from HKD 802.1 million in the same period of 2022[131]. - The company is tightening inventory control and reducing procurement, especially of older generation GPUs, to mitigate potential inventory risks[93]. - The company's sales return provision decreased from HKD 83.8 million as of December 31, 2022, to HKD 61.4 million as of June 30, 2023, representing a reduction of 26.7% due to declining sales[153]. Financing and Costs - The company reported a financing cost of HKD 35,163 for the current period, significantly higher than HKD 9,387 in the previous year[23]. - Financing costs increased significantly to HKD 35,163,000 in 2023 from HKD 9,387,000 in 2022, marking a rise of 274.5%[58]. - Income tax expense decreased by 93.4% from HKD 160.2 million in the first half of 2022 to HKD 10.5 million in the first half of 2023[118]. Employment and Corporate Governance - The company had 2,327 employees as of June 30, 2023, down from 2,714 employees as of December 31, 2022[158]. - The company has engaged an external auditor to assess its risk management and internal control systems, as it has not established an internal audit function[146]. - The board believes that combining the roles of Chairman and CEO can provide strong leadership and decisive decision-making in a competitive global business environment[168].

Financial Performance - For the year ended December 31, 2022, the company reported revenue of HKD 10,775.3 million, a decrease of 30.3% from HKD 15,459.1 million in 2021[7] - Gross profit for the same period was HKD 1,563.0 million, down 63.5% from HKD 4,287.2 million, resulting in a gross margin of 14.5%, a decline of 47.7% year-over-year[7] - The profit attributable to owners of the company was HKD 702.5 million, representing a 70.4% decrease from HKD 2,374.3 million in the previous year[7] - The net profit margin for 2022 was 6.5%, down 57.8% from 15.4% in 2021[7] - The company reported a net profit of HKD 702,484,000 for 2022, a decline of approximately 70.5% from HKD 2,374,320,000 in 2021[76] - The company recorded a profit attributable to owners of HKD 702.5 million in 2022, a decrease of 70.5% from HKD 2,374.3 million in 2021, primarily due to a reduction in gross profit[161] Revenue Breakdown - Revenue from the Asia-Pacific region decreased to HKD 3,733.9 million in 2022 from HKD 5,099.7 million in 2021, a decline of 26.8%[44] - Revenue from China dropped to HKD 2,000 million in 2022 from HKD 3,790.9 million in 2021, a decrease of 47.3%[44] - Revenue from the EMEAI region was HKD 2,963.2 million, a decrease of HKD 951.2 million or 24.3% compared to HKD 3,914.4 million in 2021[122] - Revenue from the NALA region decreased by HKD 575.7 million, a decline of 21.7% from HKD 2,654.1 million in 2021 to HKD 2,078.4 million in 2022[96] - Revenue from graphics cards decreased by HKD 4,575.2 million, a decline of 33.7%, from HKD 13,570.0 million in 2021 to HKD 8,994.8 million in 2022[151] - Revenue from the ODM/OEM business decreased by HKD 1,361.7 million or 26.8%, from HKD 5,089.7 million in 2021 to HKD 3,728.0 million in 2022[139] Assets and Liabilities - Total assets decreased to HKD 6,155.4 million from HKD 6,924.5 million in 2021, reflecting a decline in overall financial position[13] - Current assets fell to HKD 5,421.8 million from HKD 6,654.9 million, primarily due to a decrease in cash and bank balances[13] - The company’s cash and bank balance decreased significantly to HKD 2,207.3 million from HKD 3,765.1 million[13] - Non-current liabilities increased, with borrowings rising to HKD 1,738.7 million from HKD 702.3 million in the previous year[13] - Shareholders' equity decreased by HKD 238.6 million, or 7.7%, from HKD 3,087.4 million as of December 31, 2021, to HKD 2,848.8 million as of December 31, 2022[183] Expenses and Costs - The cost of sales for 2022 was HKD 9,212,346,000, down from HKD 11,171,893,000 in 2021, indicating a decrease of about 17.5%[71] - Administrative expenses decreased by HKD 293.4 million or 35.9%, from HKD 816.7 million in 2021 to HKD 523.3 million in 2022, primarily due to a decline in employee performance bonuses and director profit-sharing levels[132] - Operating expenses decreased by HKD 666.5 million, a decline of 49.6%, from HKD 1,344.4 million in 2021 to HKD 677.9 million in 2022[158] - Material costs as a percentage of sales increased from 70.4% in 2021 to 83.2% in 2022, an increase of 12.8%[155] Market and Operational Insights - The ongoing geopolitical tensions between the US and China may impact market confidence and consumer demand[99] - The company emphasizes the importance of talent acquisition for technology development and product innovation[98] - The company plans to continuously review human resources to attract suitable talent and maintain competitiveness in the technology sector[98] - The company plans to allocate resources to seize new business opportunities related to AI and the metaverse[148] - The company is closely monitoring market conditions and will take appropriate actions to mitigate business risks[149] Dividends and Shareholder Returns - The total dividends paid in 2022 amounted to HKD 934,318,000, which is more than double the HKD 410,267,000 paid in 2021[76] - The group plans to pay a special dividend of HKD 0.25 per share for the year ended December 31, 2022, subject to shareholder approval[87] - The group aims to maintain a higher cash flow level for future investments, foregoing any final dividend for the year[87] Compliance and Governance - The group has complied with the corporate governance code, except for specific deviations noted in the report[194] - The external auditor has confirmed that the preliminary performance figures are consistent with the audited consolidated financial statements for the year ended December 31, 2022[198]

Revenue Performance - Revenue decreased by HKD 241.5 million, a decline of 3.5%, from HKD 6,849.3 million in the first half of 2021 to HKD 6,607.8 million in the first half of 2022[15]. - Total revenue decreased by HKD 241.5 million, a decline of 3.5%, from HKD 6,849.3 million in the first half of 2021 to HKD 6,607.8 million in the first half of 2022[34]. - For the six months ended June 30, 2022, total revenue was HKD 6,607,825, a decrease of 3.5% compared to HKD 6,849,280 for the same period in 2021[142]. Sales Breakdown - Sales of graphics cards decreased by HKD 177.4 million, a decline of 3.0%, from HKD 5,958.9 million in the first half of 2021 to HKD 5,781.5 million in the first half of 2022[16]. - Sales of self-branded graphics cards decreased by HKD 50.3 million, a decline of 1.1%, from HKD 4,413.9 million in the first half of 2021 to HKD 4,363.6 million in the first half of 2022[16]. - ODM/OEM orders for graphics cards decreased by HKD 127.1 million, a decline of 8.2%, from HKD 1,545.0 million in the first half of 2021 to HKD 1,417.9 million in the first half of 2022[17]. - Sales of cryptocurrency mining processing cards (CMP cards) plummeted by HKD 258.5 million, a decline of 94.5%, from HKD 273.5 million in the first half of 2021 to HKD 15.0 million in the first half of 2022[17]. - Sales of other personal computer-related products and components decreased by HKD 42.9 million, a decline of 8.4%, from HKD 508.3 million in the first half of 2021 to HKD 465.4 million in the first half of 2022[19]. Regional Revenue Performance - Revenue in the Asia-Pacific region increased by HKD 187.1 million, an increase of 8.4%, from HKD 2,237.6 million in the first half of 2021 to HKD 2,424.7 million in the first half of 2022[21]. - NALA region revenue increased by HKD 309.7 million, an increase of 28.2%, from HKD 1,099.9 million in the first half of 2021 to HKD 1,409.6 million in the first half of 2022[22]. - Revenue in China decreased by HKD 630.0 million, a decline of 34.8%, from HKD 1,811.1 million in the first half of 2021 to HKD 1,181.1 million in the first half of 2022[23]. - EMEAI region revenue decreased by HKD 108.3 million, a decline of 6.4%, from HKD 1,700.7 million in the first half of 2021 to HKD 1,592.4 million in the first half of 2022[25]. Profitability and Expenses - Gross profit for the first half of 2022 was HKD 1,365.8 million, a decrease of HKD 498.3 million or 26.7% from HKD 1,864.1 million in the first half of 2021[37]. - Gross margin decreased from 27.2% in the first half of 2021 to 20.7% in the first half of 2022[37]. - Operating expenses decreased by HKD 417.5 million, a decline of 53.8%, from HKD 775.7 million in the first half of 2021 to HKD 358.2 million in the first half of 2022[42]. - The profit attributable to the company's owners for the first half of 2022 was HKD 802.1 million, a decrease from HKD 932.2 million in the same period of 2021, primarily due to a decline in gross profit margin[46]. - Basic and diluted earnings per share for the first half of 2022 were HKD 2.070 and HKD 2.068, respectively, compared to HKD 2.469 and HKD 2.430 in the first half of 2021[47]. Financial Position - Total equity increased by HKD 171.3 million, representing a growth of 5.5%, from HKD 3,087.4 million as of December 31, 2021, to HKD 3,258.7 million as of June 30, 2022[48]. - Total non-current assets rose by HKD 318.8 million, an increase of 118.2%, from HKD 269.6 million as of December 31, 2021, to HKD 588.4 million as of June 30, 2022[49]. - Total current assets as of June 30, 2022, were HKD 6,581.1 million, down from HKD 6,654.8 million as of December 31, 2021[52]. - Cash and bank balances decreased from HKD 3,765.1 million as of December 31, 2021, to HKD 2,997.4 million as of June 30, 2022, primarily due to cash payments for property acquisition[53]. - Trade and other payables decreased by HKD 91.8 million, a decline of 4.3%, from HKD 2,130.4 million as of December 31, 2021, to HKD 2,038.6 million as of June 30, 2022[55]. Inventory and Cash Management - As of June 30, 2022, the inventory value was HKD 2,176.7 million, an increase of HKD 665.2 million or 44.0% compared to HKD 1,511.5 million on December 31, 2021[60]. - The inventory turnover days increased from 40 days on December 31, 2021, to 64 days on June 30, 2022, due to a slowdown in sales[60]. - The company is actively managing inventory risks and controlling operating expenses in response to the current market conditions[32]. Dividends and Shareholder Information - The board proposed an interim dividend of HKD 0.80 per share, totaling an estimated HKD 310.1 million[47]. - The company declared an interim dividend of HKD 0.80 per share, totaling HKD 310,147,000, compared to HKD 0.84 per share and HKD 325,209,000 in the previous year[94]. - Major shareholders owning 5% or more of the issued share capital include Mr. Wang Xiehao with 14.29% (55,405,750 shares) and Ms. He Huangmeid with 14.20% (55,050,000 shares)[78]. Government Support and Grants - The company received government subsidies of HKD 2.8 million under the employment support scheme to support employee salaries[41]. - Government grants received increased significantly to HKD 3,775,000 in June 2022 from HKD 469,000 in June 2021, marking a growth of 706.4%[152]. Research and Development - The company aims to leverage its advanced R&D capabilities and production facilities to introduce innovative products to the market[6]. - Research and development expenses increased to HKD 29,016,000 in June 2022 from HKD 25,008,000 in June 2021, reflecting a growth of 16.0%[157].

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].