Financial Performance - Total revenue for the six months ended June 30, 2023, was approximately HKD 857,538,000, a decrease of about 22.9% compared to HKD 1,112,441,000 in the same period of 2022[2] - The gross profit for the same period was HKD 112,740,000, with a gross margin of 13.1%, up from 10.2% in 2022[2] - Profit attributable to owners of the company for the period was HKD 24,128,000, down from HKD 32,940,000 in 2022[2] - The overall gross profit for the period was approximately HKD 112,740,000, a slight decrease of about 1.0% from HKD 113,840,000 in the same period of 2022, with a gross margin of approximately 13.1%, up 2.9 percentage points from 10.2%[21] - The company reported a total comprehensive income of HKD 6,493,000 for the period, down from HKD 9,410,000 in the previous year[55] - The company reported a profit of HKD 24,128,000 for the six months ended June 30, 2023, compared to a profit of HKD 32,940,000 for the same period in 2022, indicating a decrease of approximately 26.6%[58] - The company reported a net profit of HKD 24,715,000, a decrease of 23.9% compared to HKD 32,476,000 in the same period last year[54] - Basic and diluted earnings per share were HKD 10.98, down from HKD 15.19, representing a decline of 27.5%[54] Revenue Breakdown - Revenue from the LED segment was approximately HKD 749,807,000, a decrease of about 9.5% year-on-year[9] - Sales revenue from LED backlight products was approximately HKD 698,617,000, down about 10.4% compared to HKD 780,139,000 in the same period of 2022[9] - Revenue from LED lighting products increased by approximately 5.0% to HKD 51,190,000, driven by higher sales of commercial lighting products[9] - Revenue from the semiconductor storage chip business was approximately HKD 107,731,000, a significant decrease of 62.0% from HKD 283,541,000 in the previous year[9] - Revenue from automotive displays, television displays, and industrial equipment displays for LED backlight products were approximately HKD 603.35 million, HKD 12.32 million, and HKD 82.95 million respectively, with automotive displays contributing about 86.4% of total sales[10] - Revenue from television display backlight decreased to approximately HKD 12.32 million, down from HKD 17.26 million, reflecting a decline in the LCD television market[10] - Revenue from industrial equipment display backlight decreased by approximately 33.3% to HKD 82.95 million, compared to HKD 124.28 million in the previous year[11] - Total revenue from lighting services increased by approximately 5.0% to HKD 51.19 million, driven by strong cooperation with overseas clients and expansion in commercial and educational lighting services in China[12] Operational Efficiency - The company is focusing on improving product quality and maintaining its reputation as a reliable market participant amid a volatile industry landscape[8] - The company's ERP system has enhanced cost control and operational efficiency through real-time monitoring and seamless information exchange[8] - The management remains vigilant and resilient, actively seizing opportunities while adapting to the current semiconductor market challenges[5] Market Trends and Future Outlook - The automotive industry, particularly in the new energy vehicle sector, is expected to grow, with an anticipated increase in the average number of screens per vehicle[17] - Mini LED backlight technology is gaining popularity in the automotive display market, with shipments expected to reach approximately 800,000 units in 2023, more than five times the previous year[17] - The company plans to launch mini LED and local dimming LED products in the second half of the year, which may have a short-term impact on gross margin but is expected to enhance long-term profitability[18] - The semiconductor sector is expected to see a cyclical increase in demand for storage chips, with market analysts indicating a potential rebound around the third quarter of this year[19] Financial Position - As of June 30, 2023, total assets amounted to HKD 2,483,378,000, a decrease from HKD 2,721,787,000 as of December 31, 2022[56] - Current assets decreased to HKD 1,895,918,000 from HKD 2,140,806,000, reflecting a decline of approximately 11.5%[56] - The company's inventory as of June 30, 2023, was approximately HKD 190,651,000, a decrease of about 31.1% from HKD 276,763,000 on December 31, 2022[26] - The net accounts receivable as of June 30, 2023, was approximately HKD 832,353,000, an increase of about 11.0% from HKD 749,923,000 on December 31, 2022[27] - The company's debt ratio as of June 30, 2023, was 69.4%, up from 55.5% on December 31, 2022, calculated based on total borrowings against equity[35] - The net asset value as of June 30, 2023, was HKD 833,461,000, compared to HKD 826,401,000 at the end of 2022, showing a slight increase of 0.1%[57] - The total equity attributable to owners increased to HKD 831,776,000 from HKD 825,287,000, reflecting a growth of 0.8%[58] Employee and Management Costs - The company incurred total employee costs of HKD 130,220,000, a decrease of 16.7% from HKD 156,558,000 in 2022[88] - Total compensation for key management personnel increased to HKD 2,154,000 for the six months ended June 30, 2023, compared to HKD 1,862,000 for the same period in 2022[112] Cash Flow and Investments - For the six months ended June 30, 2023, the company reported a net cash outflow from operating activities of HKD 44,484,000, compared to a net inflow of HKD 184,778,000 in the same period of 2022[61] - The company recorded a net cash inflow from financing activities of HKD 118,728,000, a substantial increase from HKD 14,004,000 in the prior year[61] - The company reported a net cash outflow from investment activities of HKD 17,119,000, significantly improved from HKD 136,366,000 in the previous year[61] - The company invested HKD 31,518,000 in property, plant, and equipment, an increase from HKD 19,329,000 in the same period last year[61] Shareholder Information - As of June 30, 2023, the major shareholder, Ruishi Technology Co., Ltd., held 128,120,000 shares, representing 58.31% of the issued share capital[42] - The company adopted a share option scheme on October 27, 2014, with a total of 4,710,000 options granted during the year ended June 30, 2023[43] - The company has a share incentive plan that allows for a maximum of 18,782,500 shares to be granted, representing 8.66% of the issued shares as of June 30, 2023[46] - The total number of shares granted under the incentive plan cannot exceed 10% of the issued shares at any time[45] Governance and Compliance - The company is committed to maintaining good corporate governance and has adhered to the principles outlined in the corporate governance code[50] - No significant contracts related to the group's business were entered into that involved directors or major shareholders during the six months ended June 30, 2023[39]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 Wai Chi Holdings Company Limited 偉志控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1305） 截 至2023年6月30日 止 六 個 月 之 中 期 業 績 公 告 財務摘要 截至6月30日止六個月 2023年 2022年 未經審核 未經審核 千港元 千港元 收益 857,538 1,112,441 毛利 112,740 113,840 ...

Business Development and Product Innovation - The Group successfully developed over 1,000 new LED backlight products and over 100 new LED lighting products, with 234 patents registered in the PRC[6]. - The Group is recognized as the world's largest manufacturer of LED backlights for automobile onboard displays in terms of product shipment[4]. - The Group expanded its business into sourcing semiconductor memory chips to capture growing demand[4]. - The Group's operations include R&D, design, manufacturing, and sales, covering both LED backlight and LED lighting products[4]. - The Group's products are categorized into LED backlight products (automobile displays, television displays, and industrial equipment displays) and LED lighting business (commercial and public lighting)[7]. - The Group aims to become one of the leading producers in China's high-end LED backlights and lighting products[5]. - The Group holds 234 patents registered in the PRC as of December 31, 2022, indicating a strong commitment to research and development[88]. Financial Performance - In 2022, the overall revenue of the Group grew by approximately 15.3%, reaching approximately HK$2,216,352,000, up from approximately HK$1,922,595,000 in 2021[31]. - The net profit growth for BOE Varitronix Limited is expected to be between 70% and 90% for 2022, driven primarily by the automobile onboard display panels[26]. - Revenue from backlights for automobile onboard displays achieved approximately HK$1,350,820,000 in 2022, a growth of about 16.6% from approximately HK$1,158,602,000 in the previous year[36]. - The overall gross profit for the Group was approximately HK$262,691,000 in 2022, a decrease of approximately 6.9% compared to HK$282,197,000 in 2021, resulting in a gross profit margin of 11.9%[31]. - The Group's core businesses, including LED backlight and lighting products, generated revenue of approximately HK$1,712,035,000, up approximately 6.8% from HK$1,603,450,000 in 2021[37]. - Revenue from LED backlight products was approximately HK$1,620,565,000, an increase of 11.5%, primarily driven by a record-high sales growth of 16.6% in automobile onboard displays[67]. - Revenue from LED lighting products decreased by 38.8% to approximately HK$91,470,000, down from HK$149,435,000 in the previous year[67]. Market Trends and Economic Environment - The global economy faced a widespread and sharp slowdown due to lingering COVID-19 infections and geopolitical uncertainties in 2022[20]. - China's GDP growth for 2022 was 3%, falling short of the central government's target of 5.5%[53]. - Economic growth is expected to slow down globally from 3.4% in 2022 to 2.9% in 2023, before rebounding to 3.1% in 2024[94]. - The global in-vehicle display panel market is expected to reach US$10.453 billion in 2022, marking a 5% increase from 2021, and projected to grow to US$12.323 billion by 2026, a 23.8% increase from 2021[61]. - The penetration rate of full LCD dashboards in passenger cars is expected to rise from 30% in 2020 to 70% by 2025, indicating strong market growth potential[65]. Operational Efficiency and Strategic Initiatives - The Group emphasizes pragmatic and prudent business management to respond to market changes and explore opportunities[19]. - The company plans to expand its R&D center to capture technological advancements and meet the growing demand for backlight products[48]. - The company aims to expand production facilities and storage space near existing factories to reduce transportation costs and risks[48]. - The Group is exploring vendor-managed inventory systems to enhance operational efficiency and customer transactions[66]. - The Group's ERP system has improved cost control and operational efficiency through enhanced automation in the manufacturing process[66]. Management and Governance - The company has a strong management team with diverse backgrounds in finance, engineering, and marketing, enhancing its operational capabilities[157]. - The leadership team is well-educated, with advanced degrees in business and engineering, contributing to informed decision-making[164]. - The company has independent non-executive directors with extensive experience in finance and accounting, including Mr. Ho Chi Wai and Mr. Chen Guohong[172][174]. - The company emphasizes the importance of financial management, with Mr. Cheung responsible for financial oversight outside of the PRC[186]. - The company maintains a commitment to high standards in financial reporting and governance through its board of directors and management team[179]. Shareholder Engagement and Incentives - The Board proposed the adoption of a new Share Option Scheme and the termination of the Existing Share Option Scheme, which was valid until October 25, 2024[141]. - The Share Award Scheme aims to recognize contributions from employees and retain talent for the Group's ongoing development[141]. - The adoption of equity incentives is viewed as an effective means to attract and retain key personnel for future business development[141]. - The resolutions regarding the Share Option Scheme and Share Award Scheme were passed as ordinary resolutions at the extraordinary general meeting held on December 19, 2022[141].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部份內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 Wai Chi Holdings Company Limited 偉志控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1305） 本公司截至2022年12月31日止年度之全年業績公告 之 補充公告 茲提述偉志控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）於2023年3 月24日刊發之本公司截至2022年12月31日止年度之全年業績公告（「2022年全年 業績公告」）。除本公告另有界定者外，本公告所用詞彙與2022年全年業績公告 所界定者具有相同涵義。 董事會謹此明確聲明，2022年全年業績公告乃根據本集團截至2022年12月31日 止年度之經審核財務業績編製，並載有本集團截至2022年12月31日止年度之經 審核綜合財務報表。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部份內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 Wai Chi Holdings Company Limited 偉志控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1305） 截 至2022年12月31日 止 年 度 之 全 年 業 績 公 告 財務摘要 2022年 2021年 千港元 千港元 營業額 2,216,352 1,922,595 毛利 262,691 282,197 毛利率 11.9% 14.7% ...

Financial Performance - Total revenue for the six months ended June 30, 2022, was approximately HKD 1,112,441,000, an increase of about 24.7% compared to HKD 892,393,000 for the same period in 2021[4] - Gross profit for the same period was HKD 113,840,000, with a gross margin of 10.2%, down from 14.6% in 2021[4] - Profit attributable to owners of the company was HKD 32,940,000, compared to HKD 15,443,000 in the previous year[4] - The overall gross profit for the group was approximately HKD 113,840,000, a decrease of 12.9% compared to HKD 130,654,000 in the same period of 2021, with a gross profit margin of 10.2%, down 4.4 percentage points from 14.6% in 2021[26] - The company achieved a net profit of HKD 32,476,000, which is a significant increase of 115.0% compared to HKD 15,076,000 in the previous year[56] - Basic and diluted earnings per share were HKD 15.19, up from HKD 7.12 in the prior year, reflecting a growth of 113.5%[56] - The group reported a profit before tax of HKD 32,372,000 for the six months ended June 30, 2022, compared to a loss in the previous period[82] Revenue Breakdown - The LED business segment generated revenue of approximately HKD 828,900,000, a 16.0% increase from the previous year[13] - Sales revenue from LED backlight products was approximately HKD 780,139,000, reflecting a growth of about 20.0% due to increased sales of automotive and industrial display backlight products[13] - Revenue from semiconductor storage chips was approximately HKD 283,541,000, including new revenue from semiconductor chip testing lines of about HKD 14,642,000[13] - Revenue from television display backlight products decreased by approximately 43.8% to HKD 17,260,000, prompting plans to terminate this business due to market contraction[14] - Revenue from other industrial equipment display backlight products saw a slight increase of about 6.2%, totaling HKD 124,284,000[14] - The total revenue for LED backlight products was approximately HKD 780,139,000, a 20.0% increase from approximately HKD 650,053,000 in the same period last year, driven by growth in core product lines, particularly automotive display LED backlight products[25] - Revenue from LED lighting services decreased significantly, with public lighting and commercial lighting revenues at approximately HKD 596,000 and HKD 48,165,000, representing declines of about 78.8% and 21.7% respectively compared to the same period last year[15] Expenses and Costs - Sales and distribution expenses were approximately HKD 12,817,000, a decrease of 28.5% from HKD 17,933,000 in 2021, mainly due to cost control measures[27] - Administrative expenses increased by approximately 5.9% to HKD 82,876,000, up from HKD 78,254,000 in 2021, primarily due to higher costs related to COVID-19 prevention measures[28] - Total employee costs for the period were HKD 156,558,000, up from HKD 110,902,000 in the previous year, indicating a 41.2% increase[112] - Interest expenses for bank and other borrowings amounted to HKD 20,566,000 for the six months ended June 30, 2022, compared to HKD 19,300,000 in the same period of 2021, reflecting a 6.5% increase[106] Assets and Liabilities - As of June 30, 2022, total assets amounted to HKD 2,066,338 thousand, an increase from HKD 1,783,944 thousand as of December 31, 2021, representing a growth of approximately 15.8%[59] - Total liabilities increased to HKD 1,816,206 thousand from HKD 1,580,287 thousand, indicating a rise of approximately 14.9%[59] - The company's equity attributable to owners increased to HKD 828,364 thousand from HKD 818,481 thousand, a slight increase of about 1.1%[63] - The group's debt ratio as of June 30, 2022, was 43.3%, up from 41.9% at the end of 2021, calculated based on total borrowings against equity[40] - The company's cash and cash equivalents stood at HKD 168,319 thousand, up from HKD 112,312 thousand, marking a significant increase of approximately 49.9%[67] Strategic Initiatives - The company implemented an ERP system that significantly improved cost control and operational efficiency during the review period[11] - The company plans to gradually exit the LED television backlight market by the end of the year, focusing instead on segments with greater growth potential[22] - The semiconductor storage chip business is expected to diversify the company's revenue sources amid increasing demand for semiconductor chips[23] - The company aims to enhance its competitiveness in the automotive display backlight segment by upgrading technology and diversifying its customer base[22] - The company is actively investing in new product development and technology to enhance its competitive edge in the market[103] Research and Development - The company holds 213 registered patents in China as of June 30, 2022, reflecting its commitment to research and development[20] - Research and development expenses increased to HKD 36,877,000, compared to HKD 30,543,000 in the same period last year, indicating a focus on innovation[56] Governance and Compliance - The company maintained a strong governance structure, adhering to the corporate governance code and ensuring transparency and accountability[52] - The audit committee reviewed the unaudited interim financial report for the six months ended June 30, 2022, ensuring compliance with accounting policies[55] - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and the applicable disclosure requirements of the Hong Kong Stock Exchange[70] Shareholder Information - Major shareholder, Ruishi Technology Co., Ltd., holds 128,120,000 shares, representing 59.09% of the issued share capital[49] - The company did not recommend any interim dividend for the six months ended June 30, 2022[39] - The company did not declare or recommend any dividends for the six months ended June 30, 2022, consistent with the previous year[113]

Business Development and Product Offerings - Wai Chi Holdings has developed over 1,000 new LED backlight products and over 100 new LED lighting products, with 209 patents registered in the PRC[4]. - The company has expanded its business into semiconductor memory chips to capture growing demand driven by 5G development and modern consumer products[4]. - The LED backlight products are categorized into three types: automobile displays, television displays, and industrial equipment displays[4]. - The LED lighting business is divided into commercial lighting and public lighting segments, indicating a diversified product offering[4]. - The company aims to proactively develop its business in the packaging and testing of small-storage semiconductor memory chips[4]. - The Group is committed to providing reliable and energy-saving LED products and comprehensive lighting energy management solutions for large corporations and public utilities[2]. - The company aims to enhance its brand value and position itself as a leading producer in China's high-end LED market[4]. Financial Performance - The Group's revenue in 2021 grew approximately 37.7% to about HK$1,922,595,000 from HK$1,395,888,000 in 2020[30]. - Overall gross profit increased by 42.2% to approximately HK$282,197,000, with a gross profit margin of 14.7% compared to 14.2% in 2020[30]. - Revenue from automobile onboard display backlights reached a record high of approximately HK$1,158,602,000, up about 64.0% from HK$706,600,000 in the previous year[30]. - Revenue from the lighting segment more than doubled to about HK$149,435,000, driven by increased orders from overseas clients, particularly in Europe[30]. - Total revenue for the year ended December 31, 2021, was approximately HK$1,922,595,000, representing an increase of 37.7% compared to approximately HK$1,395,888,000 for the year ended December 31, 2020[52]. - Revenue from core business sectors was approximately HK$1,603,450,000, reflecting a 50.9% increase from approximately HK$1,062,451,000 in 2020[54]. - Revenue from LED backlight products was approximately HK$1,454,015,000, an increase of 47.2% from approximately HK$988,091,000 in 2020[54]. - The Group's gross profit increased to approximately HK$282,197,000 for the year ended December 31, 2021, compared to approximately HK$198,417,000 in 2020[54]. Market Trends and Economic Environment - The global economy expanded by 5.5% in 2021, driven by strong consumer spending and robust trade, despite ongoing challenges from the COVID-19 pandemic[27]. - China's GDP growth rate for 2021 reached 8.1%, exceeding the initial target of above 6% by 2.1 percentage points[27]. - The LED industry experienced a favorable year in 2021, benefiting from the automotive sales boom and increased demand for energy-efficient lighting solutions[27]. - The semiconductor market grew 25.1% in 2021, reaching $583.5 billion, with Samsung Electronics reporting a 31.6% surge in semiconductor revenue[45]. - The ongoing geopolitical tensions, particularly the Russia-Ukraine war, may impact the global chip shortage, but manufacturers are working to ensure material supply[32]. Management and Governance - The management team, with most members having over 10 years of experience, is committed to driving the company's operations forward[23]. - The Company has a strong leadership team with extensive experience in finance, sales, and marketing across various sectors[116][117][123]. - The management team includes professionals with significant experience in both local and international markets, contributing to strategic decision-making[132][135]. - The company emphasizes the importance of strong financial oversight and compliance through its experienced board members[137]. - The independent non-executive directors bring diverse expertise from various sectors, which is expected to support the company's growth strategy[140][141]. Strategic Focus and Future Outlook - The company plans to focus on more profitable segments such as automobile onboard displays and semiconductors, having exited the cellphone backlight market[21]. - The ongoing investment in new technologies and products is expected to support future growth and market expansion[27]. - The Group aims to enhance its R&D capabilities to seize future opportunities in the fast-changing consumer market[74]. - The newly established semiconductor memory chip lines are anticipated to become an important revenue source in the short term, as the Group optimizes risk control and production capacity[87]. - The Group's lighting segment is experiencing an increasing number of orders from clients worldwide, which is expected to boost income in the coming year[87]. Operational Efficiency and Cost Management - The ERP system implemented by the Group enhanced financial and work efficiency through improved process automation[50]. - Administrative expenses increased by 16.3% to approximately HK$98,748,000 for the year ended December 31, 2021, compared to approximately HK$84,934,000 in 2020, primarily due to business scale expansion[95]. - The Group's strategy includes purchasing more materials at lower rates to offset anticipated increases in raw material prices, contributing to inventory growth[97]. Shareholder and Corporate Governance - The Directors do not recommend the payment of a dividend for the year ended December 31, 2021[149]. - The Company has maintained directors' and officers' liability insurance throughout the year to provide appropriate cover for legal actions against its directors and officers[187]. - The Board considers sustainable returns to shareholders as a main objective, with a policy to pay interim and final dividends in each financial year[198]. - All shareholders have equal rights to dividends and distributions under the applicable laws of the Cayman Islands[199].

Revenue and Profitability - The total revenue for the first half of 2021 was approximately HKD 892,393,000, representing a 46.5% increase compared to HKD 609,064,000 in the same period of 2020[4] - The gross profit for the first half of 2021 was HKD 130,654,000, with a gross margin of 14.6%, up from 13.6% in 2020[4] - The profit attributable to owners of the company for the first half of 2021 was HKD 15,443,000, compared to HKD 6,614,000 in the same period of 2020[4] - The profit before tax for the six months ended June 30, 2021, was HKD 19,441,000, compared to HKD 9,881,000 for the same period in 2020, reflecting a significant improvement[65] - The net profit for the period was HKD 15,076,000, compared to HKD 6,614,000 in the previous year, marking a 127.5% increase[41] - Basic and diluted earnings per share increased to HKD 7.12 from HKD 3.05, reflecting a 133.1% rise[41] Segment Performance - The semiconductor storage chip segment generated revenue of approximately HKD 177,980,000, a 33.4% increase from HKD 133,466,000 in 2020[11] - The LED business segment reported revenue of approximately HKD 714,413,000, reflecting a 50.2% increase from the previous year[11] - Sales revenue from LED backlight products was approximately HKD 650,053,000, an increase of 48.8% compared to HKD 436,977,000 in 2020[11] - The revenue from the LED lighting business reached approximately HKD 64,360,000, a significant increase of about 66.6% compared to HKD 38,621,000 in the same period last year[21] - The segment profit for LED backlight was HKD 41,226,000, while LED lighting reported a profit of HKD 3,191,000, and procurement business generated a profit of HKD 3,594,000 for the six months ended June 30, 2021[65] Cost and Expenses - Sales and distribution expenses amounted to approximately HKD 17,933,000, reflecting a 59.6% increase from HKD 11,239,000 in 2020, consistent with sales growth[23] - Administrative expenses were approximately HKD 47,711,000, an increase of 16.6% from HKD 40,921,000 in the first half of 2020[24] - The company reported a total employee cost of HKD 110,902,000 for the six months ended June 30, 2021, compared to HKD 100,455,000 in the same period of 2020[86] - The company incurred interest expenses of HKD 20,010,000 for the six months ended June 30, 2021, compared to HKD 13,078,000 in the same period of 2020[82] Assets and Liabilities - Non-current assets as of June 30, 2021, were valued at HKD 566,029,000, an increase from HKD 557,002,000 at the end of 2020[44] - Current assets increased to HKD 1,651,925,000 from HKD 1,475,013,000, indicating a growth of 12%[44] - The total assets as of June 30, 2021, amounted to HKD 2,217,954,000, an increase from HKD 2,032,015,000 as of December 31, 2020[66] - The total liabilities as of June 30, 2021, were HKD 1,434,935,000, compared to HKD 1,280,148,000 as of December 31, 2020, indicating an increase in financial obligations[68] - Accounts payable rose by 37.4% to approximately HKD 405,589,000, up from HKD 295,154,000 at the end of 2020, mainly due to increased raw material purchases[28] Cash Flow and Investments - The net cash used in operating activities for the six months ended June 30, 2021, was HKD 43,949,000, a significant improvement compared to HKD 83,312,000 for the same period in 2020[51] - The company incurred a net cash outflow from investing activities of HKD 28,915,000 for the six months ended June 30, 2021, compared to a net cash outflow of HKD 38,169,000 in the same period of 2020[51] - The company’s financing activities generated a net cash inflow of HKD 38,814,000 for the six months ended June 30, 2021, compared to HKD 36,466,000 for the same period in 2020[51] - The group invested approximately 74,806,000 HKD in property, plant, and equipment for expansion during the six months ended June 30, 2021, compared to 12,899,000 HKD in the same period of 2020, indicating a significant increase of 480.56%[89] Corporate Governance and Strategy - The company emphasized its commitment to good corporate governance and transparency to enhance shareholder value[40] - The company is focusing on expanding its presence in the semiconductor storage chip industry, shifting procurement efforts entirely towards related products[11] - The company plans to launch its NAND flash memory testing and packaging business in the second half of 2021, which is expected to generate significant revenue due to higher automation and lower labor requirements[18] - The company continues to focus on the manufacturing and trading of LED products and high-tech electronic components, indicating ongoing investment in technology and market expansion[52] Market Conditions and Future Outlook - The overall economic recovery in China is expected to support continued growth in the company's product sales, particularly in the automotive sector[10] - The company expects raw material prices to continue rising, prompting strategic stockpiling and negotiations with suppliers to maintain profit margins amid market volatility[19] Miscellaneous - The company does not recommend any interim dividend for the six months ended June 30, 2021[30] - The company received government grants of approximately HKD 3,362,000 during the six months ended June 30, 2021, down from HKD 8,231,000 in the same period of 2020[61] - The company holds 193 patents registered in China, reflecting its commitment to research and development and innovation in the industry[17]

Business Development and Innovation - Wai Chi Holdings has developed over 1,000 new LED backlight products and over 100 new LED lighting products, with 185 patents registered in the PRC[11]. - The Group is expanding its business into semiconductor memory chips to capture growing demand from the rapid development of 5G connections and modern consumer products[11]. - The company aims to enhance its brand value and position itself as a leading producer in China's high-end LED backlights and lighting products since its listing on November 18, 2014[11]. - Wai Chi Holdings is actively developing lighting energy management solutions, providing comprehensive services for large business corporations and public utilities[11]. - The company is committed to innovating technologies and closely monitoring industry trends to achieve significant R&D results[11]. - The Group plans to proactively develop its semiconductor packaging and testing business in the future[11]. - The Group's R&D efforts are aimed at identifying niche markets and supporting production with informed research to capture profitable opportunities[78]. - The Group's R&D center is located in Huizhou, focusing on concurrent development of new product designs, improvement of existing products, and introduction of new production technologies[82]. - The Group plans to enhance its R&D capabilities to prepare for emerging opportunities in the market[83]. Financial Performance - The Group's overall revenue decreased to approximately HK$1,395,888,000 from HK$2,214,974,000 a year ago, representing a decline of about 37%[28]. - Gross profit maintained at approximately HK$198,417,000, compared to HK$228,967,000 in 2019, with an overall gross profit margin increasing to 14.2% from 10.3%[28]. - Total revenue for the year ended December 31, 2020, was approximately HK$1,395,888,000, representing a decrease of 37.0% compared to HK$2,214,974,000 for the year ended December 31, 2019[58]. - Revenue from core business sectors was approximately HK$1,062,451,000, an increase of 1.7% compared to HK$1,044,883,000 in 2019[58]. - Revenue from LED backlight products was approximately HK$988,091,000, representing an increase of 4.0% from HK$950,106,000 in 2019, driven by a 10.5% increase in automobile onboard displays and an 8.1% increase in industrial equipment displays[58]. - Revenue from LED lighting products was approximately HK$74,360,000, a decrease of 21.5% from HK$94,777,000 in 2019, primarily due to an 83.8% decrease in public lighting segment revenue[58]. - The Group's overall gross profit for 2020 was approximately HK$198,417,000, representing a decrease of 13.3% from HK$228,967,000 in 2019, while the overall gross profit margin increased to 14.2% from 10.3%[94]. - Administrative expenses decreased by 16.4% to approximately HK$84,934,000 in 2020 from HK$101,597,000 in 2019, attributed to effective cost control during the epidemic[97][98]. Market Trends and Challenges - The LED industry is facing intensified competition, with backlight manufacturers expected to enter a recession as mini LED and OLED technologies mature[24]. - Demand in the automobile on-board display market remains strong, with a trend towards larger display sizes and curved screens[24]. - Enterprises relying on exports are facing uncertainties due to ongoing global economic challenges and foreign exchange rate fluctuations[22]. - The COVID-19 pandemic has led to significant economic impacts globally, with most European countries experiencing consecutive quarters of GDP losses[22]. - The overall economic environment remains challenging, with the company focusing on strategic management to navigate uncertainties[22]. - The demand for SLC and MLC NAND flash is expected to significantly increase due to the growth of 5G applications and home entertainment gadgets[31]. - The rising consumption of IoT products is expected to increase demand for SLC and MLC NAND flash memory chips in the long term[88]. - Due to limited supply in the market, the price of NAND flash is expected to continue rising in 2021[88]. Corporate Governance and Management - The Company has maintained the percentage of public float as prescribed in the Listing Rules for the Reporting Period[156]. - The Company has a history of appointing independent non-executive directors to enhance governance, with recent appointments made in 2018 and 2020[147]. - The Company emphasizes good corporate governance principles of transparency, accountability, and independence to enhance shareholder value[200]. - The Company has complied with all other applicable code provisions of the Corporate Governance Code[200]. - The Directors' emoluments are determined by the Remuneration Committee based on qualifications, experience, and market conditions, with no waivers during the year ended December 31, 2020[168]. Acquisitions and Investments - The Group proposed to acquire equipment for approximately USD5.9 million (approximately HK$45.9 million) to commence semiconductor memory chips testing and packing business[102]. - Another acquisition agreement was made for equipment at a total consideration of RMB12.0 million (approximately HK$13.2 million) to support the semiconductor memory chips testing and packing business[103]. - The company anticipates using the proceeds from the placement for the aforementioned acquisition matters[109]. Employee and Shareholder Information - The Group employed 2,319 employees as of December 31, 2020, with no significant issues reported regarding employee relations[153]. - As of December 31, 2020, the Company's distributable reserves available for distribution to shareholders is approximately HK$331,977,000, unchanged from 2019[1]. - The Company will not declare dividends if it is unable to pay its liabilities or if it is insolvent or bankrupt[198].

Financial Performance - Total revenue for the first half of 2020 was approximately HKD 609,064,000, a decrease of 33.1% compared to HKD 909,954,000 in the same period of 2019[5] - Gross profit was HKD 82,579,000, with a gross margin of 13.6%, compared to HKD 94,155,000 and a gross margin of 10.3% in 2019[5] - The net profit for the six months ended June 30, 2020, was HKD 6,614,000, a decrease of 40% from HKD 11,046,000 in the prior year[56] - Basic and diluted earnings per share were HKD 3.05, down from HKD 5.09 in the previous year[56] - The overall gross profit was approximately HKD 82,579,000, a decrease of 12.3% from HKD 94,155,000 in 2019, attributed to a significant drop in revenue from TV backlight, public lighting, and non-core procurement segments[27] - The company reported a total comprehensive income of HKD (5,603,000) for the period, compared to HKD 17,383,000 in the previous year[59] - The company experienced a net cash outflow from operating activities of HKD 83,312,000 for the first half of 2020, compared to a net cash inflow of HKD 110,505,000 in the same period of 2019[69] - Cash and cash equivalents decreased to HKD 15,730,000 as of June 30, 2020, down from HKD 102,724,000 at the end of the previous year, indicating a decline of approximately 84.7%[69] - The group reported a profit of HKD 6,614,000 for the six months ended June 30, 2020, compared to HKD 11,046,000 in 2019, indicating a decline of about 40.0%[108] - Total comprehensive income for the period was a loss of HKD 5,603,000, compared to a total comprehensive income of HKD 17,383,000 in the previous year, indicating a significant downturn[66] Revenue Breakdown - Sales revenue from LED backlight products was approximately HKD 436,977,000, an increase of 4.1% from HKD 419,607,000 in 2019[14] - Sales of LED lighting products decreased by 21.1% to HKD 38,621,000, down from HKD 48,972,000 in 2019, primarily due to production halts caused by COVID-19[14] - Revenue from automotive display backlight products grew by 11.3%, contributing approximately HKD 313,064,000, which accounted for 71.6% of total LED backlight sales[15] - Public lighting revenue dropped by 94.2% to HKD 1,298,000, while commercial lighting revenue increased by 39.4% to HKD 37,323,000[16] - The revenue from the sale of LED backlight products was approximately HKD 436,977,000, an increase of 4.1% compared to HKD 419,607,000 in the same period of 2019[25] - The external sales breakdown included HKD 436,977,000 from LED backlighting, HKD 38,621,000 from LED lighting, and HKD 133,466,000 from procurement business[83] Economic Environment - The overall economic environment was impacted by COVID-19, leading to a contraction in China's GDP by 6.8% in Q1 2020, but a recovery of 3.2% in Q2 2020 was noted[10] - The company anticipates a recovery in the Chinese economy starting from Q2 2020, which is seen as a positive sign for seizing emerging market opportunities[21] Cost Management and Efficiency - The company implemented an ERP system that significantly improved cost control and operational efficiency[12] - Administrative expenses for the six months ended June 30, 2020, were approximately HKD 40,921,000, a decrease of 15.4% compared to HKD 48,395,000 in the same period of 2019[29] - Total employee costs for the six months ended June 30, 2020, were HKD 100,455,000, a decrease from HKD 107,816,000 in the same period of 2019, reflecting a reduction of approximately 6.3%[106] Research and Development - The company holds 155 registered patents in China as of June 30, 2020, reflecting significant technological advancements and breakthroughs in R&D[20] - Research and development expenses for the six months were HKD 23,557,000, up from HKD 20,221,000 in the prior year[56] Future Plans and Strategies - The company plans to closely monitor market trends and review sales strategies in response to the decline in television display backlight sales, which fell by 58.4%[15] - The company aims to seek more project opportunities in the commercial lighting sector to achieve higher revenue growth[16] - The company plans to expand into SLC and MLC NAND flash testing and packaging business, aligning with China's "14th Five-Year Plan" which emphasizes the semiconductor industry[23] - The company plans to explore acquisition opportunities in the semiconductor storage sector and intends to use the proceeds from a previous share placement for potential acquisitions[35] Assets and Liabilities - Total assets as of June 30, 2020, were HKD 1,340,513,000, compared to HKD 1,299,379,000 as of December 31, 2019[60] - The total liabilities as of June 30, 2020, were HKD 969,092,000, up from HKD 934,023,000 at the end of 2019[87] - The group's debt ratio as of June 30, 2020, was 51.0%, up from 45.1% on December 31, 2019[40] Shareholder Information - Major shareholders, including Rui Shi Technology Co., Ltd., held 59% of the issued share capital, indicating significant ownership concentration[49] - No interim dividend was recommended for the six months ended June 30, 2020[39] Other Financial Metrics - Tax expenses for the group were approximately HKD 3,267,000, an increase from HKD 2,286,000 in 2019, attributed to increased taxable income from Shenzhen Weizhi[31] - The group incurred interest expenses of HKD 12,554,000 for bank and other borrowings for the six months ended June 30, 2020, compared to HKD 12,207,000 in the same period of 2019, an increase of approximately 2.8%[101] - The group’s total tax expense for the six months ended June 30, 2020, was HKD 3,267,000, up from HKD 2,286,000 in 2019, reflecting an increase of approximately 43.0%[103]