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].