Financial Performance - The Group's turnover decreased from approximately HK$629.4 million in 2023 to approximately HK$579.5 million in 2024, representing a decrease of approximately 7.9%[12] - Gross profit was approximately HK$146.2 million in 2024, representing a decrease of approximately 12.5% from 2023[12] - Profit attributable to ordinary equity holders of the Company was approximately HK$60.3 million in 2024, representing a decrease of approximately 19.7% from 2023[12] - The decrease in net profit was primarily due to a decrease in sales orders and an increase in production costs[12] - Revenue for the year ended December 31, 2024, was HK$579,537,000, a decrease of 7.9% from HK$629,430,000 in 2023[32] - Profit before tax decreased by 20.6% to HK$70,854,000 in 2024 from HK$89,288,000 in 2023[32] - Basic and diluted earnings per share fell to HK25.1 cents, a decline of 19.8% compared to HK31.3 cents in 2023[32] - Dividend per share was reduced to HK6.0 cents, a decrease of 40.0% from HK10.0 cents in 2023[32] - The Group's gross profit for 2024 was approximately HK$146.2 million, a decrease of approximately 12.5% from the previous year, with a gross profit margin of approximately 25.2%, down 1.3% from 26.5% in 2023[70] - Total operating expenses for 2024 were approximately HK$100.9 million, an increase of approximately 3.6% compared to HK$97.4 million in 2023, primarily due to higher general and administrative expenses[71] - EBITDA for 2024 amounted to approximately HK$81.8 million, down from approximately HK$106.7 million in 2023[72] - Other income and gains increased by approximately HK$9.2 million, or 42.0%, to approximately HK$31.1 million in 2024, mainly due to an increase in bank interest income and net foreign exchange gains[73] Industry Trends and Challenges - The PCB industry is facing opportunities and challenges due to the rapid development of the Internet of Things, smartphones, and electric vehicles[16] - Technological innovation is driving the development of the PCB industry, expanding the scope of product applications[20] - Environmental regulations have imposed higher requirements on product materials and manufacturing processes, affecting the industry's operational environment[21] - PCB enterprises in the PRC face difficulties such as fluctuations in the global supply chain and international trade frictions[22] - The total output value of the global PCB industry is closely related to macroeconomic conditions[15] - The global PCB output value was approximately US$80.3 billion in 2024, projected to reach US$96.6 billion by 2029, with a compound annual growth rate of 4.87%[39] - The PRC's PCB output value is expected to reach RMB412.1 billion in 2024, accounting for over 50% of the global market[40] - The demand for PCBs in new energy vehicles is significantly higher compared to conventional vehicles, leading to increased PCB value and volume per vehicle due to the development of core systems such as batteries and motors[44] - The deployment of 5G technology is anticipated to create substantial demand for PCBs in communication facilities, with an estimated direct output of RMB 6.3 trillion by 2030, providing significant market opportunities for the PCB industry[45] - The PCB market is facing increased competition due to excess capacity and the entry of new manufacturers, leading to severe price competition and shrinking profit margins in 2024[51] - Compliance with environmental regulations is increasing operational costs for PCB manufacturers, as non-compliant firms face rectification or suspension[46] Company Developments and Strategies - The Group marks its 35th anniversary and the 10th anniversary of its listing in 2024[13] - The company has diversified its product mix and market coverage, resulting in a higher proportion of revenue generated from the automotive electronics sector[55] - The company has established long-term relationships with major OEM customers across various regions, enhancing its ability to respond to customer demand trends[58] - The Group plans to establish another production base outside Pingshan, Shenzhen, or in Southeast Asia to support long-term development due to increased labor costs and the need for competitiveness[66] - The Group has enhanced production automation and optimized costs and quality to move towards intelligent production in the future[65] - The Group complies with various international quality standards, including ISO 13485 certification for medical equipment circuit boards, demonstrating its commitment to product quality[63] - The Group's liquidity position and capital requirements are regularly reviewed to ensure optimal capital structure and shareholder returns[111] - The Group's dividend policy is subject to various factors, including financial performance, retained profits, and general economic conditions[118] - The Group's future investments will be subject to evolving circumstances arising from the expansion plan related to the Share Acquisition and Property Acquisition[137] Management and Governance - The company’s management team includes experienced directors with over 35 years in PCB production and sales, ensuring strategic oversight and business development[167] - The chairman and executive director, Mrs. Chan Yung, has been involved in the group's management since September 1996, overseeing administration, purchasing, logistics, and corporate strategic planning[156] - Mr. Chan has over 35 years of experience in PCB manufacturing, having been involved in the industry since 1989[173] - Mr. Lai Hau Yin, the chief financial officer, has over 31 years of experience in audit and accounting from various listed companies and accounting firms in Hong Kong[185] - The Group has a strong leadership structure with a mix of executive and non-executive directors, enhancing governance and strategic direction[177] - The management team is committed to continuous development in project construction and architectural design, reflecting the company's focus on innovation[171] - The company aims to become a world-class enterprise delivering renowned products and services of the best quality[196] - The corporate culture emphasizes the spirit of "forging ahead, working our way up to the top" to face opportunities and challenges[195] - The company has a long-term development goal focused on quality and customer satisfaction[196] - The management team has extensive experience in the PCB industry, with key members having over 27 years of experience[193] - The strategic direction is regularly updated to adapt to the changing business environment[199] - The company emphasizes the importance of teamwork and meticulous execution in its operations[198] - The mission includes nurturing a corporate team with all-rounded development in "morality, intellect, physique"[200] - The company aims to maintain trilateral cooperation with suppliers and customers to share success and contribute to society[200]

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 579,537,000, a decrease of 7.9% compared to HKD 629,430,000 in 2023[3] - Gross profit for the same period was HKD 146,190,000, down 12.5% from HKD 167,070,000 in the previous year[3] - Net profit attributable to equity holders of the company was HKD 60,310,000, representing a decline of 19.7% from HKD 75,083,000 in 2023[3] - Basic and diluted earnings per share were HKD 25.1 cents, compared to HKD 31.3 cents in the prior year, reflecting a decrease of 19.9%[3] - The total comprehensive income for the year was HKD 48,581,000, compared to HKD 66,050,000 in 2023, a decrease of 26.5%[4] - The overall performance indicates a need for strategic adjustments to improve profitability and revenue growth moving forward[2] Income and Expenses - Other income and gains increased to HKD 31,073,000 from HKD 21,897,000, marking a growth of 41.8%[3] - The company reported a tax expense of HKD 10,544,000, down from HKD 14,205,000, indicating a reduction of 25.0%[3] - Operating expenses for the fiscal year 2024 totaled approximately HKD 100.9 million, an increase of about 3.6% from HKD 97.4 million in the previous year, mainly due to increased general and administrative expenses[43] - General and administrative expenses increased by approximately HKD 3.6 million or 4.7%, reaching about HKD 80.7 million for the year ending December 31, 2024[46] Assets and Liabilities - Non-current assets increased to HKD 328,844,000 from HKD 321,748,000, representing a growth of approximately 2.4% year-over-year[5] - Current assets rose to HKD 794,925,000, up from HKD 746,970,000, indicating an increase of about 6.4% compared to the previous year[5] - Total liabilities decreased slightly to HKD 208,283,000 from HKD 207,882,000, showing a marginal reduction of 0.2%[5] - The company reported a total equity of HKD 745,229,000, up from HKD 720,648,000, which is an increase of approximately 3.4%[6] - Trade receivables decreased to HKD 158,975,000 from HKD 188,953,000, indicating a decline of about 15.9%[5] Market and Industry Trends - The global PCB market value is projected to reach approximately $80.3 billion in 2024, with a compound annual growth rate (CAGR) of 4.87% expected from 2024 to 2029, reaching $96.6 billion by 2029[29] - In 2024, China's PCB market value is estimated to reach RMB 412.1 billion, accounting for over 50% of the global market, and is expected to grow to RMB 433.3 billion by 2025[29] - The demand for PCBs is driven by advancements in 5G technology, new energy vehicles, and the Internet of Things, with significant growth opportunities in these sectors[30] - The automotive electronics sector is experiencing rapid growth, with new energy vehicles requiring higher levels of electronic components, leading to increased PCB demand[31] Strategic Initiatives - The company plans to focus on new product development and market expansion strategies in the upcoming fiscal year[2] - The group plans to develop another production base outside of Shenzhen Pingshan or in Southeast Asia to maintain competitiveness and adapt to rising labor costs[41] - The company is exploring investment opportunities in Southeast Asia, particularly in Thailand, Vietnam, and Malaysia, to mitigate risks and expand into new markets[35] Corporate Governance and Compliance - The company has adhered to the corporate governance code as outlined in the listing rules since January 1, 2024[77] - The audit committee, consisting of three independent non-executive directors, has reviewed the annual performance up to December 31, 2024, and confirmed compliance with applicable accounting standards[79] - The independent auditor, Ernst & Young, confirmed that the financial statements are consistent with the group's annual financial report[80]

Financial Performance - Revenue for the first half of 2024 reached HK$313,354,000, a slight increase from HK$310,166,000 in 2023, representing a change of 0.7%[2] - Profit before tax for the period was HK$39,259,000, compared to HK$49,483,000 in the previous year, indicating a decrease of 20.5%[2] - The Group's turnover for the six months ended June 30, 2024, was approximately HK$313.4 million, representing an increase of approximately 1.0% compared to HK$310.2 million for the same period last year[14] - Gross profit for the same period was HK$77.5 million, down from HK$86.5 million in 2023, indicating a decrease of 10.4%[29] - Profit attributable to owners of the company for the period was HK$32.8 million, compared to HK$42.6 million in the previous year, reflecting a decline of 23.1%[29] - EBITDA for the six months ended June 30, 2024, was approximately HK$45.5 million, down from approximately HK$59.5 million for the same period last year[15] - The net profit attributable to owners of the Company for the six months ended June 30, 2024, was approximately HK$32.8 million, a decrease of approximately 23.0% from HK$42.6 million for the same period last year[17] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HK$1,130,637,000, up from HK$1,068,718,000 at the end of 2023, reflecting a growth of 5.8%[2] - Total current assets were approximately HK$812.1 million as of June 30, 2024, compared to HK$747.0 million as of December 31, 2023[19] - Total liabilities as of June 30, 2024, were HK$864,763, slightly up from HK$860,836 at the end of 2023[34] - Non-current liabilities totaled HK$139,023, a decrease from HK$140,188 as of December 31, 2023[34] - The current ratio was around 3.1 as of June 30, 2024, down from 3.6 as of December 31, 2023[19] - The gearing ratio was 0.08 as of June 30, 2024, compared to approximately 0.05 as of December 31, 2023[19] Shareholder Information - The company reported no dividends for the period, consistent with the previous year[2] - The Board did not recommend the payment of any interim dividend for the six months ended June 30, 2024, compared to no dividend for the same period in 2023[20] - The final dividend declared for 2023 was HK10 cents per share, down from HK12 cents per share in 2022, with total dividends recognized during the period amounting to HK$24,000,000 compared to HK$28,800,000 in 2023[58] Operational Highlights - The company is focusing on market expansion and new product development strategies to drive future growth[2] - Management expressed optimism about future performance despite current challenges in profitability[2] - The Group is an OEM provider of PCBs, focusing on high-quality production that meets IPC standards and customer requirements[9] - Revenue from automobile electronics has increased significantly, reflecting the growing business opportunities in this sector[9] - The Group has established long-term relationships with major customers, some of whom have been partners for over a decade, enhancing supply chain reliability[9] Cost and Expenses - The Group's gross profit margin for the six months ended June 30, 2024, was approximately 24.7%, a decrease of approximately 3.2% from 27.9% in the previous year, primarily due to increased production costs[15] - Total operating expenses for the six months ended June 30, 2024, were approximately HK$49.7 million, an increase of approximately 0.4% compared to HK$49.5 million for the same period last year[15] - Selling and distribution expenses decreased by approximately HK$0.6 million, or 5.8%, to approximately HK$9.7 million for the six months ended June 30, 2024[17] - General and administrative expenses increased by approximately HK$0.8 million, or 2.0%, to approximately HK$40.0 million for the six months ended June 30, 2024[17] Certification and Compliance - The Group has obtained ISO 13485 certification in 2022, ensuring compliance with quality management systems for medical equipment circuit boards[11] - The Group has passed ISO 45001 certification in 2023, focusing on improving occupational safety and health for staff[11] - The Group's product and process quality are integral to its business, with compliance to various international quality standards including ISO9001 and IATF16949[9] Future Plans and Investments - The Group plans to establish a new production base outside Pingshan District, Shenzhen, to support long-term development due to increased labor costs and changes in the planned use of the current production area[13] - The Group is exploring opportunities for establishing a production base for PCBs in mainland China and/or overseas[23] - The Group's future plans for material investments and capital assets will be disclosed as appropriate under the Listing Rules[23] Employee Information - As of June 30, 2024, the Group had 793 employees, an increase from 739 employees as of December 31, 2023[22] - Total employee benefit expense for the six months ended June 30, 2024, was approximately HK$44.7 million, unchanged from the same period in 2023[22] - The Group's remuneration system is performance-related and reviewed annually[22] Market and Economic Conditions - The high production costs continue to impact the PCB industry in 2024, necessitating increased capital investment in environmental protection measures[11] - The geopolitical conflicts, particularly the ongoing Russia-Ukraine conflict and the Israeli-Palestinian conflict, are expected to impact energy costs and inflation, posing challenges for the PCB industry[24] - The Group maintains a diversified market presence and a strong customer base, allowing for a defensive position amid external challenges[24] Corporate Governance - The audit committee reviewed the unaudited interim condensed consolidated financial statements for the six months ended June 30, 2024, confirming compliance with applicable accounting standards[109] - The interim report will be published on the Stock Exchange and the company's website, ensuring timely disclosure to shareholders[109] - The company has adhered to all code provisions set out in the Corporate Governance Code throughout the reporting period[109]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 313,354,000, representing a 1.0% increase from HKD 310,166,000 in the same period of 2023[2] - Profit before tax decreased by 20.7% to HKD 39,259,000 compared to HKD 49,483,000 in the previous year[3] - Basic and diluted earnings per share fell by 22.6% to 13.7 HKD cents from 17.7 HKD cents year-on-year[3] - Gross profit for the period was HKD 77,519,000, down from HKD 86,496,000, indicating a decline in gross margin[3] - The company reported a total comprehensive income of HKD 29,092,000 for the period, compared to HKD 26,061,000 in the previous year[4] - Total revenue for the six months ended June 30, 2024, was HKD 313,354,000, a slight increase from HKD 310,166,000 in the previous year[15] - The net profit attributable to the company's owners for the same period was approximately HKD 32.8 million, down from approximately HKD 42.6 million in the previous year[35] - Other income and gains for the six months ending June 30, 2024, were approximately HKD 13.2 million, unchanged from the same period last year[36] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 864,763,000, slightly up from HKD 860,836,000 at the end of 2023[5] - The company’s total liabilities increased to HKD 265,874,000 from HKD 207,882,000, indicating a rise in financial obligations[5] - Total equity increased to HKD 725,740,000 from HKD 720,648,000, reflecting a growth of approximately 0.15%[7] - Non-current assets as of June 30, 2024, totaled HKD 305,366 thousand, compared to HKD 308,436 thousand as of December 31, 2023, reflecting a decrease of 0.35%[16] - The group's total current assets as of June 30, 2024, were approximately HKD 812.1 million, up from HKD 747.0 million as of December 31, 2023[44] - The asset-to-liability ratio as of June 30, 2024, was 0.08, compared to approximately 0.05 as of December 31, 2023[45] Revenue Breakdown - Revenue from Mainland China decreased to HKD 124,409,000, down 7.5% from HKD 133,823,000 in the previous year[15] - Revenue from Europe decreased to HKD 58,656,000, down 22.9% from HKD 76,068,000 in the previous year[15] - Revenue from Asia (excluding Mainland China and Hong Kong) increased to HKD 98,557,000, up 49.0% from HKD 66,109,000 in the previous year[15] - Revenue from North America decreased slightly to HKD 29,542,000, down 4.2% from HKD 30,850,000 in the previous year[15] - Revenue from major customers (accounting for 10% or more of total revenue) included Customer A with HKD 69,915 thousand, down from HKD 76,612 thousand in the previous year, a decrease of 8.9%[18] Expenses and Costs - The cost of goods sold was HKD 235,835 thousand, compared to HKD 223,670 thousand in the previous year, an increase of 5.4%[20] - Total tax expense for the period was HKD 6,456 thousand, down from HKD 6,916 thousand, a decrease of 6.6%[24] - Selling and distribution expenses decreased by approximately HKD 0.6 million or 5.8%, to approximately HKD 9.7 million for the six months ending June 30, 2024[37] - General and administrative expenses increased by approximately HKD 0.8 million or 2.0%, to approximately HKD 40.0 million for the same period[38] - Other expenses increased by approximately HKD 0.9 million or 450.0%, to approximately HKD 1.1 million for the six months ending June 30, 2024, mainly due to increased fair value losses on investment properties[39] Cash and Liquidity - Cash and cash equivalents increased to HKD 513,825,000 from HKD 462,796,000, reflecting improved liquidity[5] - The group maintained a prudent cash management policy, ensuring a healthy liquidity position during the review period[46] Employee and Operational Insights - The group had 793 employees as of June 30, 2024, an increase from 739 employees as of December 31, 2023[50] - The group has maintained competitive salary and benefits levels, with employee performance-based rewards under a framework reviewed annually[52] - The company has established strong foundations and deep customer relationships over more than 34 years of operation, serving OEM customers across multiple continents[30] Strategic Initiatives - The company aims to diversify its product mix and market coverage to quickly adapt to changing industry demands[30] - The group plans to develop another production base outside the Shenzhen Pingshan area to maintain competitiveness amid rising labor costs[33] - The company is actively seeking opportunities to establish PCB production bases in mainland China and/or overseas[53] Compliance and Governance - The company confirms compliance with all corporate governance codes as of June 30, 2024[58] - The interim financial results for the six months ending June 30, 2024, have been reviewed by the Audit Committee and are prepared in accordance with applicable accounting standards[60] - The independent auditor's review report will be published in the company's interim report for the six months ending June 30, 2024[60] Market Conditions - The geopolitical tensions, including the ongoing Russia-Ukraine conflict, are significant issues for 2024, impacting energy costs and currency stability[55]

Financial Performance - The Group's turnover decreased from approximately HK$743.6 million in 2022 to approximately HK$629.4 million in 2023, representing a decrease of approximately 15.4%[10]. - Gross profit was approximately HK$167.1 million in 2023, representing a decrease of approximately 7.6% from 2022[10]. - Profit attributable to ordinary equity holders of the Company was approximately HK$75.1 million in 2023, representing a decrease of approximately 20.3% from 2022[10]. - Profit before tax fell by 19.5% to HK$89,288,000 from HK$110,908,000 in the previous year[26]. - Basic and diluted earnings per share both declined by 20.4% to HK31.3 cents from HK39.3 cents[26]. - EBITDA for 2023 was HK$106.7 million, compared to HK$138.0 million in 2022, reflecting the impact of reduced sales orders[70]. - The Group's gross profit for 2023 was approximately HK$167.1 million, a decrease of approximately 7.6% compared to the previous year, with a gross profit margin of 26.5%, up 2.2% from 24.3% in 2022[71][75]. - Other income and gains decreased by approximately HK$7.1 million, or 24.5%, to approximately HK$21.9 million in 2023 from approximately HK$29.0 million in 2022[74][79]. - Total employee benefit expenses for the year ended December 31, 2023, were approximately HK$90.8 million, a decrease from approximately HK$104.2 million in 2022[124]. Market Conditions - The decrease in net profit was primarily due to a reduction in sales orders from customers resulting from the global downturn in the PCB market in 2023[10]. - The PCB industry is facing greater opportunities and challenges due to the rapid development of the Internet of Things, smartphones, and electric vehicles[12]. - The global PCB output value was approximately US$73.9 billion in 2023, reflecting a decline of 15.6% compared to the previous year[35]. - The PCB market is experiencing severe price competition in 2023, leading to further shrinkage of already slim profit margins[44]. - The overall economic environment in 2024 is expected to be similar to 2023, with the second half of 2024 anticipated to be better than 2023[141]. - The most important factors affecting industry development in 2024 include regional conflicts and interest rate impacts, as the PRC's PCB industry holds a significant share of the global market[142]. - Southeast Asia is expected to become a new PCB hub due to changes in global supply chain deployment, although the local PCB industry support is currently insufficient to threaten Chinese production enterprises in the short term[143]. Operational Strategies - The Group aims to improve production efficiency and maintain competitiveness in the international market[18]. - The Group is focusing on enhancing production automation and optimizing costs and quality to transition towards intelligent production[64]. - The Group plans to establish a new production base outside Pingshan, Shenzhen, to support long-term development and address rising labor costs[65]. - The company has diversified its product mix and market coverage, resulting in a higher revenue proportion from the automobile electronics sector[53]. - The Group has established long-term relationships with major customers, some of whom have been partners for over a decade, which aids in understanding customer demand trends more quickly[57]. - The Group's liquidity position was maintained through prudent financial management and ongoing credit assessments of customers[104][111]. Challenges and Future Outlook - PCB manufacturers are facing increased operational costs due to stricter environmental regulations, which require compliance investments in environmental engineering and wastewater treatment[43]. - The company acknowledges that future challenges are becoming more severe, despite having a diversified market and strong customer base, which has led to negative impacts on the business[148]. - The Group is actively seeking solutions for a cooperation agreement related to an urban renewal project due to delays caused by a sluggish property market in mainland China[65]. - The company is committed to adapting to market conditions and ensuring robust business strategies in response to external challenges[148]. Leadership and Management - The chairman and executive director, Mrs. Chan Yung, has been involved in the group's management since September 1996 and oversees corporate strategic planning and overall business development[153]. - The new CEO, Mr. Chan Yan Wing, appointed on August 1, 2023, has approximately 20 years of experience in the PCB industry and is responsible for corporate strategic planning and business development[157]. - The board of directors includes a mix of executive and non-executive members, ensuring diverse oversight and management[156]. - The management team has extensive experience in the PCB industry, with key members having over 20 years of relevant experience[157]. Corporate Strategy - The company has a strong focus on strategic planning and operational strategies to enhance its business portfolio[167]. - The corporate strategy emphasizes bold transformation to keep up with the times amid a competitive environment[200]. - The company aims to maintain unity, meticulousness, efficiency, precision, and persistence in its implementation efforts[199]. - The long-term development goal of the company is to become a world-class enterprise delivering world-renowned products and services of the best quality[197].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of HKD 629,430,000, a decrease of 15.3% compared to HKD 743,612,000 in the previous year[4] - The cost of sales for the same period was HKD 462,360,000, down from HKD 562,835,000, resulting in a gross profit of HKD 167,070,000, which is a decrease of 7.6% from HKD 180,777,000[4] - The company's net profit attributable to shareholders was HKD 75,083,000, representing a decline of 20.3% from HKD 94,264,000 in the prior year[4] - Basic and diluted earnings per share were HKD 0.313, down from HKD 0.393 in the previous year, reflecting a decrease of 20.4%[4] - The company reported a pre-tax profit of HKD 89,288,000, compared to HKD 110,908,000 in the previous year, indicating a decline of 19.5%[4] - The total comprehensive income for the year was HKD 66,050,000, down from HKD 44,897,000 in the previous year[6] Revenue Breakdown - Revenue from mainland China was HKD 282,805,000 in 2023, slightly down from HKD 282,845,000 in 2022, indicating a marginal decrease of 0.01%[19] - Revenue from Europe decreased to HKD 136,485,000 in 2023 from HKD 197,528,000 in 2022, reflecting a decline of about 30.9%[19] - Revenue from North America was HKD 54,321,000 in 2023, down from HKD 69,486,000 in 2022, which is a decrease of approximately 21.8%[19] - Total revenue from sales of goods was HKD 629,430,000 in 2023, a decrease of 15.3% from HKD 743,612,000 in 2022[21] Assets and Liabilities - Total assets decreased from HKD 860,836,000 in 2022 to HKD 830,425,000 in 2023, a decline of approximately 3.7%[8] - Current assets decreased from HKD 746,970,000 in 2022 to HKD 714,485,000 in 2023, a decline of about 4.3%[8] - Cash and cash equivalents increased from HKD 377,555,000 in 2022 to HKD 462,796,000 in 2023, an increase of approximately 22.5%[8] - Total liabilities decreased from HKD 207,882,000 in 2022 to HKD 227,956,000 in 2023, a decrease of about 8.8%[8] - The company’s non-current assets decreased from HKD 321,748,000 in 2022 to HKD 340,577,000 in 2023, a decrease of approximately 5.5%[8] Market Outlook and Strategy - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming fiscal year[2] - The management expressed optimism about future growth despite the current financial challenges, aiming for a recovery in revenue and profitability[2] - The company is investing in new technology development to improve operational efficiency and product quality[2] - The company is diversifying its product mix and market coverage to reduce reliance on single products and markets, benefiting from the automotive electronics boom[48] Operational Challenges - The PCB manufacturing industry faces challenges such as rising operational costs due to stricter environmental regulations and increased labor costs in China[46] - The market is experiencing intense competition, with many PCB manufacturers expanding capacity, leading to price pressure and narrowing profit margins in 2023[44] Corporate Governance - The company has adhered to the corporate governance code since January 1, 2023, except for the separation of the roles of Chairman and CEO until August 1, 2023[98][99] - As of August 1, 2023, the company appointed a new Chairman and CEO, ensuring compliance with the corporate governance code[100] - The Audit Committee consists of three independent non-executive directors and has reviewed the annual performance up to December 31, 2023, confirming adherence to applicable accounting standards[102] Future Developments - The group plans to develop a new production base outside of Shenzhen Pingshan to maintain competitiveness amid rising labor costs and to adapt to future development needs[56] - The company is actively seeking opportunities to establish a PCB production base in collaboration with independent third parties[88]

Financial Performance - Revenue for the six months ended June 30, 2023, was HK$310,166,000, a decrease of 17.0% compared to HK$373,902,000 in 2022[2]. - Profit before tax for the same period was HK$49,483,000, down 4.4% from HK$51,781,000 in 2022[2]. - Profit attributable to ordinary equity holders decreased by 5.5% to HK$42,567,000 from HK$45,047,000 in the previous year[2]. - The Group's turnover for the six months ended 30 June 2023 was approximately HK$310.2 million, representing a decrease of approximately 17.0% compared to approximately HK$373.9 million for the same period last year[28]. - The Group's gross profit margin for the six months ended 30 June 2023 was approximately 27.9%, representing an increase of approximately 5.8% over the gross profit margin of approximately 22.1% for the last corresponding period[28]. - The Group's EBITDA amounted to approximately HK$59.5 million for the six months ended 30 June 2023, compared to approximately HK$66.0 million for the last corresponding period[28]. - The Group recorded a net profit attributable to owners of the Company of approximately HK$42.6 million for the six months ended 30 June 2023, a decrease of approximately 5.3% from approximately HK$45.0 million for the same period last year[34]. - Other income and gains decreased by approximately HK$3.7 million, or 21.9%, to approximately HK$13.2 million for the six months ended June 30, 2023[29]. - Selling and distribution expenses increased by approximately HK$1.4 million, or 15.7%, to approximately HK$10.3 million for the six months ended June 30, 2023[30]. - Total employee benefit expenses for the six months ended June 30, 2023, were approximately HK$44.7 million, down from approximately HK$53.2 million for the same period in 2022[64]. Assets and Liabilities - Total assets as of June 30, 2023, were HK$1,016,383,000, a decline of 4.0% from HK$1,058,381,000 at the end of 2022[2]. - Net debts (excluding cash and cash equivalents) increased by 10.9% to HK$413,624,000 from HK$373,094,000[2]. - Shareholders' equity slightly decreased by 0.4% to HK$680,659,000 from HK$683,398,000[2]. - The net carrying amount of the Group's property, plant and equipment as at 30 June 2023 was approximately HK$273.7 million, representing a decrease of approximately HK$19.6 million from approximately HK$293.3 million as at 31 December 2022[42]. - As of June 30, 2023, the Group had total current assets of approximately HK$698.5 million, including cash and cash equivalents of approximately HK$413.6 million[45]. - The Group's current liabilities were approximately HK$195.7 million, down from HK$228.0 million as of December 31, 2022, resulting in a current ratio of 3.6 compared to 3.1 previously[50]. - The Group's total non-current liabilities were approximately HK$140.1 million, reduced from HK$147.0 million as of December 31, 2022[50]. - The Group's debt-to-equity ratio was 0 as of June 30, 2023, compared to approximately 0.05 as of December 31, 2022[51]. Market and Operational Insights - The proportion of revenue generated from automobile electronics has increased due to significant business opportunities in recent years[13]. - Continuous diversification of product mix and market coverage has allowed the company to adapt to changes in demand effectively[15]. - The Group has established long-term relationships with major OEM customers, some of whom have been partners for over a decade, enabling swift adaptation to evolving customer demands[16][19]. - The Group focuses on high-quality PCB manufacturing, complying with various international quality standards, including ISO9001, ISO14001, and IATF16949 certifications[17][20]. - The stability of precious metal prices significantly impacts PCB pricing strategies, with high production costs and environmental regulations increasing operational challenges[22][25]. - Labor costs in China have risen, prompting the Group to enhance production automation and optimize costs and quality to maintain competitiveness[23][26]. - The Group's diversification in product offerings and market coverage allows for quick adjustments to industry demand changes, reducing reliance on single products and markets[18]. - The Group is actively seeking opportunities to invest in establishing a PCB production base in the Greater Bay Area, with discussions ongoing with independent third parties[82]. Taxation and Financial Charges - The effective tax rate for Hong Kong profits tax remained at 16.5% for the period[148]. - The total tax charge for the period ended June 30, 2023, was HK$6,916,000, compared to HK$6,734,000 for the same period in 2022, reflecting an increase of approximately 2.7%[152]. - The deferred tax charge for the period was HK$879,000, compared to a deferred tax credit of HK$490,000 in the previous year[152]. Investment and Capital Expenditure - The Group acquired property, plant, and equipment amounting to HK$3,381,000 during the six months ended June 30, 2023, compared to HK$1,042,000 in the same period of 2022, indicating a significant increase of approximately 224%[160]. - Capital commitments for construction and purchases of property, plant, and equipment amounted to HK$194,000 as of June 30, 2023, down from HK$761,000 as of December 31, 2022, a reduction of approximately 74%[198]. Shareholder Information - The Board did not recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous year[57]. - The final dividend declared for 2022 was HK$0.12 per ordinary share, totaling HK$28,800,000, compared to HK$0.06 per share in 2021, which amounted to HK$14,400,000[154]. - The basic earnings per share for the six months ended June 30, 2023, remained unchanged at HK$0.1778, based on a weighted average of 240,000,000 shares[159].

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依賴該等內容而引致的任何損 失承擔任何責任。 YAN TAT GROUP HOLDINGS LIMITED 恩 達 集 團 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1480） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 告 截至 截至 二零二三年 二零二二年 六月三十日 六月三十日 止六個月 止六個月 變動 千港元 千港元 (%) （未經審核） （未經審核） 業績 收益 310,166 373,902 (17.0) ...

Financial Performance - The Group's turnover decreased from approximately HK$763.8 million in 2021 to approximately HK$743.6 million in 2022, representing a decrease of approximately 2.6%[10] - Gross profit was approximately HK$180.8 million in 2022, representing an increase of approximately 26.4% from 2021[10] - Profit attributable to ordinary equity holders of the Company was approximately HK$94.3 million in 2022, representing an increase of approximately 104.1% from 2021[10] - Revenue for 2022 was HK$743,612,000, a decrease of 2.6% from HK$763,836,000 in 2021[23] - Profit before tax increased by 70.1% to HK$110,908,000 from HK$65,217,000 in 2021[23] - Basic and diluted earnings per share both increased to HK39.3 cents, up 103.6% from HK19.3 cents in 2021[23] - Other income and gains increased by approximately HK$9.9 million, or 51.8%, to approximately HK$29.0 million in 2022, primarily due to a net foreign exchange gain of approximately HK$10.2 million[68] - The Group's gross profit for 2022 was approximately HK$180.8 million, an increase of approximately 26.4% compared to the previous year, with gross profit margin rising to 24.3% from 18.7%[65] Market Outlook - The PCB industry is expected to benefit from the rapid development of 5G and the increasing demand for circuit boards in new energy vehicles, which exceeds that of conventional vehicles by several times[17] - The global PCB industry is expected to grow to approximately US$101.5 billion by 2026, driven by sectors like 5G and new energy vehicles[29] - The PCB market is expected to benefit significantly from the growth of electric vehicles, with the PCB value in electric vehicles being approximately 4 times that of traditional vehicles[40] - The demand for 4C products remains steady, which is favorable for the future development of the electronic circuit industry[17] - The output value of PCBs for communications infrastructure was approximately US$8 billion in 2021 and is projected to reach US$9.2 billion by 2026[36] Challenges and Risks - The Group acknowledges the challenges faced in 2022, including geopolitical tensions, supply chain disruptions, and increased production costs[12] - The PCB market faces challenges due to increased competition and rising operational costs from environmental compliance requirements[37] - The PCB industry faces potential overcapacity and price competition due to the influx of new manufacturers, which may narrow profit margins[42] - The economic outlook for 2023 is challenging, with potential impacts from recession, inflation, and geopolitical tensions, particularly affecting the PCB industry[137] - Demand diversification and production enhancement outside of China are being pursued due to global supply chain shifts over the past three years[138] Strategic Initiatives - The Company aims to leverage the growth opportunities in the PCB market driven by technological advancements and market expansion strategies[17] - The Group plans to establish a new production base in the Greater Bay Area to support long-term development, relocating bulk production capacity from the current site in Pingshan District, Shenzhen[60] - The Group is exploring investment opportunities for establishing a Greater Bay Area production base for PCBs, with further disclosures to be made as required by the Listing Rules[128] - The Group has diversified its product mix and market coverage, resulting in a higher revenue proportion from automotive electronics due to recent business opportunities[46] - The Group's focus on producing multi-layered and special material PCBs caters to various industries, including automotive, communication, and medical devices[45][49] Operational Efficiency - The Group's total operating expenses for 2022 were approximately HK$97.3 million, an increase of approximately 1.7% compared to the previous year[66] - Selling and distribution expenses increased by approximately HK$1.2 million, or 6.6%, to approximately HK$19.5 million for 2022, primarily due to increased commissions from higher sales orders[76] - General and administrative expenses rose by approximately HK$0.5 million, or 0.6%, to approximately HK$77.8 million in 2022, mainly due to an increase in employee salaries[77] - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by 25% by 2025[176] - The company plans to implement new operational strategies aimed at reducing costs by 15% over the next year[176] Employee and Corporate Governance - As of December 31, 2022, the Group had 696 employees, a decrease from 766 employees in 2021, with total employee benefit expenses amounting to approximately HK$104.2 million, up from HK$88.0 million in 2021[119][124] - The Group's remuneration system for employees is competitive and performance-related, with annual reviews conducted[120][121] - The Group's liquidity position and capital requirements are regularly assessed to ensure optimal capital structure and shareholder returns[118] - The Group's dividend policy is subject to regular review by the Board, considering factors such as financial performance, capital requirements, and economic conditions[115][118] Stakeholder Engagement - The Group expresses gratitude to all stakeholders for their support during a challenging year[18] - The Group is committed to quality as its core value and strives for a win-win situation with stakeholders[197] - The Group is closely monitoring external developments and internal customer orders to make necessary adjustments[139] Future Guidance - The company provided guidance for the next fiscal year, projecting revenue growth of 25% to $625 million[176] - The long-term development goal of the company is to become a world-class enterprise delivering world-renowned products and services of the best quality[192] - The company emphasizes a corporate culture based on "Goal, Planning, Implement, Direction, Mission, Value" to face opportunities and challenges in a competitive environment[191]

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依賴該等內容而引致的任何損 失承擔任何責任。 YAN TAT GROUP HOLDINGS LIMITED 恩 達 集 團 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1480） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 告 恩達集團控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此呈報本 公司及其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年 度之綜合財務業績，連同去年之比較數字。 ...