Financial Performance - Revenue for the first half of 2022 was HK$373,902,000, an increase of 2.0% compared to HK$363,184,000 in the same period of 2021[5] - Profit before tax for the period was HK$51,781,000, up from HK$29,760,000 in the previous year, representing a significant increase of 74.0%[9] - Basic earnings per share were HK18.8 cents, compared to HK10.2 cents in the same period last year, reflecting an increase of 84.3%[5] - The Group's turnover for the six months ended 30 June 2022 was approximately HK$373.9 million, representing an increase of approximately 3.0% compared to approximately HK$363.2 million for the last corresponding period[35] - The Group's gross profit margin for the six months ended 30 June 2022 was approximately 22.1%, an increase of approximately 2.8% over the last corresponding period's gross profit margin of approximately 19.3%[36] - EBITDA for the six months ended 30 June 2022 amounted to approximately HK$66.0 million, compared to approximately HK$43.5 million for the last corresponding period, representing an increase of approximately 51.1%[41] - The net profit attributable to owners of the Company for the six months ended 30 June 2022 was approximately HK$45.0 million, an increase of approximately 82.9% compared to approximately HK$24.6 million for the last corresponding period[45] - The profit for the period was HK$45,047,000, with a total comprehensive income of HK$19,873,000 after accounting for the final dividend of HK$14,400,000[120] Assets and Liabilities - Total assets as of June 30, 2022, were HK$1,064,620,000, a decrease from HK$1,077,387,000 as of December 31, 2021[9] - The net carrying amount of the Group's property, plant, and equipment as at 30 June 2022 was approximately HK$318.8 million, a decrease of approximately HK$28.3 million from approximately HK$347.1 million as at 31 December 2021[46] - Total current assets as at 30 June 2022 were approximately HK$696.5 million, an increase from approximately HK$679.9 million as at 31 December 2021[48] - The current ratio was around 2.8 as at 30 June 2022, compared to 2.6 as at 31 December 2021[48] - The gearing ratio of the Group was approximately 0.03 as of June 30, 2022, down from approximately 0.05 as of December 31, 2021[54] - Total liabilities remained stable at HK$811,386,000 compared to HK$812,089,000 in the previous year[103] Market and Business Strategy - The company has diversified its product mix and market coverage, particularly benefiting from increased revenue from automobile electronics[15] - The company aims to reduce reliance on a single product and market by adjusting production output according to sector demand changes[16] - The Group continues to explore business opportunities in the automotive electronics sector, which has shown significant growth recently[16] - The automotive sector accounts for a significant portion of PCB applications, with new energy vehicles requiring multiple times the PCBs compared to traditional vehicles, presenting favorable opportunities for the Group[32] - The Group's focus on the PCB business for over 32 years has allowed it to accumulate experience and networks, facilitating further development in the PCB market[33] Quality and Compliance - The Group has implemented various quality measures and achieved certifications such as ISO9001, ISO14001, and IATF16949, emphasizing the importance of product and process quality[18] - The Group has recognized the need for environmental protection and made relevant investments years ago, positioning itself better than competitors who fail to meet new environmental standards[23] Economic and External Factors - The ongoing COVID-19 pandemic and geopolitical conflicts, such as the Russia-Ukraine war, are negatively impacting the PCB market, leading to increased energy costs and inflation[72] - Despite challenges, the Group maintains a diversified market presence and a strong defensive position with a broad base of quality customers[72] - The impact of COVID-19 has led to risks in the electronics sector, affecting production activities and logistics, but the diversity of the PCB market has mitigated severe impacts[25] Investments and Dividends - No interim dividend was recommended for the six months ended June 30, 2022, consistent with the previous year[57] - The Group is exploring opportunities for investment in establishing a Greater Bay Area production base for PCBs[64] Taxation - The total tax charge for the period was HK$1,536,000 for Hong Kong and HK$5,688,000 for Mainland China, reflecting the applicable tax rates of 16.5% and 25% respectively[174] - The Group's effective tax rate in Hong Kong remained at 16.5%, while a subsidiary qualified for a reduced tax rate of 8.25% on the first HK$2,000,000 of taxable profits[177] Investment Properties - The Group's investment properties consist of residential properties and a commercial property in the PRC, leased to third parties under operating leases[188] - The total carrying amount of the Group's investment properties at the end of the reporting period was HK$28,168,000[190] - The estimated price per square metre for commercial properties in Mainland China ranged from RMB23,268 to RMB31,412 as of December 31, 2021, reflecting a potential increase in fair value[200] - The estimated price per square metre for residential properties in Mainland China ranged from RMB40,426 to RMB49,813 as of December 31, 2021, indicating significant valuation potential[200]

Financial Performance - The Group's turnover increased from approximately HK$587.1 million in 2020 to approximately HK$763.8 million in 2021, representing an increase of approximately 30.1%[10]. - Gross profit was approximately HK$143.0 million in 2021, representing an increase of approximately 4.7% from 2020[10]. - Profit attributable to ordinary equity holders of the Company was approximately HK$46.2 million in 2021, representing an increase of approximately 19.4% from 2020[10]. - Revenue for the year ended December 31, 2021, was HK$763,836,000, representing a 30% increase from HK$587,133,000 in 2020[22]. - Profit before tax for 2021 was HK$65,217,000, up 29% from HK$50,547,000 in 2020[22]. - Basic and diluted earnings per share for 2021 were HK19.3 cents, compared to HK16.1 cents in 2020, reflecting a 19.9% increase[22]. - The Group's EBITDA for 2021 amounted to approximately HK$92.7 million, compared to approximately HK$82.6 million for the previous year[76][80]. - The Group's total operating expenses for 2021 were approximately HK$95.7 million, a slight increase of approximately 0.6% compared to approximately HK$95.1 million for the previous year[79]. - The Group's other income and gain increased by approximately HK$0.9 million, or 4.9%, to approximately HK$19.1 million for the year ended December 31, 2021[81]. - Other income and gains increased from approximately HK$18.2 million to approximately HK$19.1 million, representing a rise of about 4.9%, mainly due to a net effect of a decrease in government subsidies and an increase in recoverable income[84]. Market Trends and Opportunities - The increase in net profit was primarily due to the recovery of the global economy from COVID-19, leading to an increase in customer orders[10]. - The PCB industry is expected to benefit from the applications of 5G technology and the development of electric vehicles, creating significant business opportunities[11]. - The extensive applications of PCBs cover 3C products, Internet-of-Things, self-driving vehicles, and big data, driving demand in various sectors[11]. - The PCB industry is projected to grow from approximately US$65.2 billion in 2020 to about US$78.0 billion by 2026, driven by technological advancements[40]. - The PCB value for new energy vehicles is approximately four times that of conventional vehicles, indicating significant growth potential in the automotive PCB sector[46]. - It is estimated that around 600,000 new 5G base stations will be built in China in 2021, peaking at approximately 1.1 million in 2022, which will drive demand for PCBs[47]. Challenges and Risks - The rise in raw material prices, particularly for copper foil, resin, and aluminum sheet, has been a significant challenge for PCB manufacturers since mid-2020, leading to increased production costs[56]. - Labor costs in China have been rising over the past decade, prompting many PCB manufacturers to relocate production to inland areas or automate processes to reduce reliance on manpower[55]. - The COVID-19 pandemic has caused material impacts on PCB manufacturing operations, with ongoing uncertainties due to new variants affecting global economic recovery[49]. - The PCB market is facing aggressive competition due to capacity expansions and new entrants, which may lead to price reductions and shrinking profit margins[50]. - Compliance with environmental regulations has increased operational costs for PCB manufacturers, as non-compliant firms face rectification or suspension[48]. Strategic Initiatives - The Company aims to expand its market presence and enhance its product offerings in response to increasing demand[11]. - The Group is committed to leveraging technological advancements to improve production efficiency and product quality[11]. - The Group plans to establish another production base in the Greater Bay Area to support long-term development, relocating bulk production capacity from the current site in Pingshan District, Shenzhen[72][74]. - The Group has been enhancing production automation and optimizing costs and quality to adapt to rising labor costs and insufficient labor supply in coastal areas[67][72]. - The Group is exploring opportunities for establishing a Greater Bay Area production base for PCBs and has entered into a cooperation agreement for an urban renewal project in Pingshan District, Shenzhen[114]. Corporate Governance - The company has complied with the Corporate Governance Code provisions from January 1, 2021, except for code provision A.2.1 regarding the segregation of roles between the chairman and the CEO[161]. - The board currently consists of seven directors, including three executive directors, one non-executive director, and three independent non-executive directors[172]. - The company has adopted a code of conduct for securities transactions by directors, ensuring compliance with the Model Code standards[169]. - The company is committed to enhancing its corporate governance standards to meet regulatory requirements and shareholder expectations[163]. - The board believes that having the same individual serve as both chairman and CEO ensures consistent leadership and effective strategic planning[162]. Employee and Operational Insights - The Group's total employee benefit expense for the year ended December 31, 2021, was approximately HK$88.0 million, an increase from approximately HK$80.0 million in 2020[109]. - The Group had 766 employees as of December 31, 2021, up from 739 employees in 2020[109]. - The Group's employee compensation and benefits remain competitive, with performance-based bonuses and stock option plans in place[112]. - The Group's remuneration policy is based on market norms and individual performance, with bonuses linked to the Group's performance[109]. - The Group's management team is composed of family members, ensuring continuity and shared vision in leadership[127]. Management and Leadership - Mr. Chan Wing Yin has over 31 years of experience in PCB production and sales, having participated in the management of the Group since January 1992[127]. - The Group has a diverse board with members holding various roles in subsidiaries, enhancing operational strategies and business development[140]. - The Group's management team includes professionals with advanced degrees in business and technology, ensuring informed decision-making[149][154]. - The company has established a solid foundation for future growth through its experienced leadership and strategic direction[151][157]. - The independent non-executive directors bring extensive experience from various industries, including manufacturing and banking, contributing to strategic oversight[146][147][148].

Financial Performance - Revenue for the six months ended June 30, 2021, was HK$363,184,000, representing a 45.8% increase compared to HK$249,126,000 in 2020[4] - Profit before tax increased by 87.0% to HK$29,760,000 from HK$15,913,000 in the same period last year[4] - Profit attributable to ordinary equity holders rose by 96.2% to HK$24,569,000, compared to HK$12,524,000 in 2020[4] - Basic earnings per share increased to HK10.2 cents, up from HK5.2 cents, reflecting a 96.2% growth[4] - The Group's turnover for the six months ended 30 June 2021 was approximately HK$363.2 million, representing an increase of approximately 45.8% compared to HK$249.1 million for the last corresponding period[36] - The net profit attributable to owners of the Company for the six months ended 30 June 2021 was approximately HK$24.6 million, representing an increase of approximately 96.8% from approximately HK$12.5 million for the last corresponding period[49] - Profit for the period for the six months ended 30 June 2021 was HK$24,569,000, compared to HK$12,524,000 for the same period in 2020, representing a 96% increase[99] - Total comprehensive income attributable to owners of the company for the period was HK$29,422,000, up from HK$2,603,000 in the previous year[99] Assets and Liabilities - Total assets increased to HK$1,045,214,000, up from HK$973,162,000, indicating a significant growth in asset base[13] - Shareholders' equity as of June 30, 2021, was HK$621,893,000, a 2.5% increase from HK$606,871,000 at the end of 2020[7] - The current ratio was around 2.4 as at 30 June 2021, down from 2.7 as at 31 December 2020[52] - Total liabilities were HK$778,646,000 as of 30 June 2021, compared to HK$762,676,000 at the end of 2020[105] - The Group's debt-to-equity ratio as of June 30, 2021, was approximately 0.03, an increase from approximately 0.01 as of December 31, 2020[55] - The net carrying amount of property, plant, and equipment as at 30 June 2021 was approximately HK$352.4 million, a decrease of approximately HK$7.3 million from HK$359.7 million as at 31 December 2020[50] Production and Operations - The company focuses on producing multi-layered and special material PCBs for applications in automotive, communication, medical, and consumer electronics sectors[20] - Future strategies include expanding production capacity and enhancing product quality to meet increasing market demand[20] - The Group has increased its revenue proportion from the automobile electronics sector due to significant business opportunities in recent years[21] - 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 Shenzhen[34] - Labor costs in China have increased, prompting the Group to enhance production automation and move towards intelligent production[29] - The Group's production environment in Mainland China is better than other regions due to effective COVID-19 control, allowing for more stable operations[30] Market and Customer Relations - The Group has established long-term relationships with major OEM customers, some of whom have been partners for over a decade, enhancing the ability to quickly understand customer demand trends[23] - The Group emphasizes its diversified market segments and quality customer base as strengths to navigate the challenging business environment[78] - Major customers accounted for significant revenue, with Customer A contributing HK$108,281,000 and Customer B contributing HK$57,638,000 for the six months ended June 30, 2021, totaling HK$165,919,000[156] Cost and Expenses - High production costs have impacted profits, with raw material prices, such as copper clad laminates and copper foils, continuing to rise since mid-2020, affecting profit margins[31] - Selling and distribution expenses increased by approximately HK$1.5 million, or 20.8%, to approximately HK$8.7 million for the six months ended 30 June 2021[43] - Total operating expenses for the six months ended 30 June 2021 were approximately HK$47.7 million, an increase of approximately 0.8% over the last corresponding period[41] Compliance and Standards - The Group complies with various international quality standards, including ISO9001, ISO14001, and IATF16949, and has implemented quality measures to enhance customer satisfaction[23] - The interim financial information was prepared in accordance with Hong Kong Accounting Standard 34, indicating compliance with local financial reporting requirements[134] - The company adopted revised Hong Kong Financial Reporting Standards for the first time during the current period, including amendments related to interest rate benchmark reform[135] Investments and Future Plans - The Group has recognized the need for environmental protection and made relevant investments years ago, positioning itself better than competitors who fail to meet new standards[28] - The Group is exploring opportunities for establishing a production base in the Greater Bay Area for PCB production[69] - The Group has entered into a cooperation agreement for an urban renewal project at its current production area, aiming to maximize shareholder benefits[34] Cash Flow and Financing - The net cash flows from operating activities for the six months ended June 30, 2021, were HK$30,000,000, compared to HK$49,452,000 for the same period in 2020, indicating a decrease of approximately 39.4%[129] - New bank borrowings during the period amounted to HK$34,192,000, while repayments of bank borrowings totaled HK$19,391,000[129] - The Group had bank borrowings of approximately HK$20.3 million as at 30 June 2021, an increase of approximately HK$14.8 million from HK$5.5 million as at 31 December 2020[51] Challenges and Risks - The company faced challenges due to rising raw material prices and supply shortages, particularly in copper-related products, impacting production costs[78] - The ongoing COVID-19 pandemic continues to affect economic recovery, with low vaccination rates and new virus strains adding uncertainty[78] - The company is closely monitoring external developments and customer orders to make necessary adjustments to its operations[78]

Financial Performance - The Group's turnover decreased from approximately HK$766.0 million in 2018 to approximately HK$650.4 million in 2019, representing a decrease of approximately 15.1%[14] - Gross profit was approximately HK$148.4 million in 2019, representing a decrease of approximately 17.0% from 2018[14] - Profit attributable to ordinary equity holders of the Company was approximately HK$55.9 million in 2019, representing a decrease of approximately 4.3% from 2018[14] - Profit before tax for 2019 was HK$68,056,000, down from HK$81,550,000 in 2018, reflecting a decline of 16.6%[27] - Basic and diluted earnings per share for 2019 were both HK23.3 cents, compared to HK24.3 cents in 2018, indicating a decrease of 4.1%[27] - The total assets as of December 31, 2019, were HK$847,150,000, down from HK$939,135,000 in 2018, representing a decline of 9.8%[28] - The company's net debts (excluding cash and bank balances) were HK$(76,631,000) in 2019, compared to HK$12,041,000 in 2018, indicating a significant increase in net debt[28] - EBITDA for 2019 amounted to approximately HK$103.6 million, down from approximately HK$117.4 million in the previous year[72] - The total employee benefit expense for the year ended December 31, 2019, was approximately HK$103.1 million, down from approximately HK$117.1 million in 2018[90] Market Conditions - The decline in net profit was primarily due to the instability of the global economy, resulting in a decrease in sales orders and a reduction in sales prices[14] - The PCB industry continues to face uncertainties, including the impact of COVID-19 and geopolitical tensions affecting global economic development[17] - The economic development is adversely affected by factors such as the "America First" policy and Brexit[17] - Despite stabilized prices of PCB raw materials in 2019, supply chain disruptions in early 2020 due to COVID-19 led to rising prices of precious metals[21] - An upward trend in the price of raw materials is expected in 2020, coupled with fierce competition and irrational pricing, further weakening profitability[21] - The PCB market is expected to grow significantly due to increasing demand from sectors such as automotive electronics, communication equipment, and medical devices, driven by advancements in technology and the rise of new applications like 5G[56][58]. Business Operations - The Group has been engaged in the manufacturing and sales of PCBs for 30 years, witnessing various industrial transformations[16] - The Group's business operations have generally grown to a certain scale despite market fluctuations[16] - The Group's diversification of product mix and market coverage has reduced reliance on a single product and market, allowing for better adaptation to demand changes[64] - 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 Shenzhen[69] - The Group is exploring cooperation opportunities related to urban renewal projects in the current production area in Pingshan District[69] Corporate Governance - The company has complied with the Corporate Governance Code provisions from January 1, 2019, to the date of the annual report, except for code provision A.2.1[123] - The Board currently comprises seven Directors, including three executive Directors, one non-executive Director, and three independent non-executive Directors[131] - The company has adopted a code of conduct for securities transactions by Directors, with no known non-compliance during the year ended December 31, 2019[130] - The company is committed to ongoing enhancements of corporate governance principles and practices to balance the interests of shareholders, customers, and employees[125] - The roles of chairman and chief executive officer are currently held by the same individual, which the Board believes ensures consistent leadership and effective strategic planning[124] Management Team - Mr. Chan Wing Yin, aged 70, is the chairman, executive director, and CEO, with over 30 years of experience in PCB production and sales[100] - The Group's management team includes experienced professionals with backgrounds in finance, manufacturing, and project management[115] - The management team is committed to corporate strategic planning and overall business development, ensuring sustained growth and market presence[104] - The Group's focus on PCB manufacturing has allowed it to accumulate significant industry knowledge and experience since its inception in 1992[100] Risk Management - The Group's risk management system includes identification, evaluation, and management phases to address business-related risks, with no significant risks identified in 2019[195] - The internal control system aligns with the COSO 2013 framework, focusing on operational efficiency, reliability of financial reporting, and compliance with laws[195] - The Board oversees management's performance in risk management and internal control on an ongoing basis[195] Employee and Operational Efficiency - The Group's liquidity position was maintained throughout 2019, with ongoing credit assessments to reduce exposure to credit risk[86] - The Group recorded a decrease in finance costs by approximately HK$2.0 million, or 24.7%, to approximately HK$6.1 million for the year ended December 31, 2019 from approximately HK$8.1 million for the year ended 31 December 2018[82] - The Group's current assets as at 31 December 2019 were approximately HK$437.5 million, including cash and cash equivalents totaling approximately HK$160.9 million[84] - The Group is committed to enhancing production automation and intelligent production to optimize costs and improve quality in response to Industry 4.0 trends[68]

Financial Performance - Revenue for the six months ended June 30, 2019, was HK$326,279,000, a decrease of 13.2% compared to HK$376,044,000 in 2018[3] - Profit before tax for the same period was HK$21,228,000, down 37.9% from HK$34,209,000 in 2018[3] - Profit attributable to ordinary equity holders decreased by 43.9% to HK$16,549,000 from HK$29,495,000 in 2018[3] - Basic and diluted earnings per share were both HK6.9 cents, a decline of 43.9% from HK12.3 cents in 2018[3] - The Group's turnover for the six months ended June 30, 2019, was approximately HK$326.3 million, a decrease of about 13.2% compared to HK$376.0 million for the same period last year[30] - Gross profit for the same period was HK$72,908,000, down 13.5% from HK$84,197,000 in the previous year[87] - The net profit attributable to owners of the Company for the six months ended June 30, 2019, was approximately HK$16.5 million, compared to HK$29.5 million for the same period in 2018[36] - Total comprehensive income for the period attributable to owners of the company was HK$15,367,000, down 36.3% from HK$24,136,000 in the previous year[92] Assets and Liabilities - Total assets as of June 30, 2019, were HK$865,716,000, down 7.8% from HK$939,135,000 as of December 31, 2018[3] - Total current assets as of 30 June 2019 were approximately HK$431.5 million, a decrease from HK$493.3 million as of 31 December 2018[46] - Total non-current assets amounted to HK$434,250,000, a decrease of 2.9% from HK$445,862,000[97] - Total liabilities stood at HK$548,097,000, slightly up from HK$542,619,000[98] - The Group's bank and other borrowings decreased to approximately HK$123.2 million as of 30 June 2019, down by approximately HK$56.3 million from HK$179.5 million as of 31 December 2018[45] - The current ratio improved to around 1.4 as of 30 June 2019, compared to 1.2 as of 31 December 2018[48] - The gearing ratio was approximately 0.2 as of 30 June 2019, down from approximately 0.4 as of 31 December 2018[50] Expenses and Income - Total operating expenses for the six months ended June 30, 2019, were approximately HK$54.0 million, an increase of about 6.1% over the last corresponding period[35] - General and administrative expenses increased by approximately HK$4.2 million or 10.3%, totaling approximately HK$44.9 million for the six months ended June 30, 2019[38] - Selling and distribution expenses decreased by approximately HK$1.1 million or 10.8%, to approximately HK$9.1 million for the six months ended June 30, 2019[38] - Other income and gains increased by approximately HK$0.9 million or 17.3%, reaching approximately HK$6.1 million for the six months ended June 30, 2019[37] - The income tax expense for the period was HK$4,679,000, slightly down from HK$4,714,000 in the previous year[87] Market and Business Strategy - The Group is focusing on the production of multi-layered and special material PCBs, primarily for applications in automotive electronics, communication equipment, and medical devices[16] - The diversification of product mix and market coverage has allowed the Group to adapt to changes in demand, reducing reliance on a single product and market[16] - The Group has identified significant business opportunities in automobile electronics, leading to a higher proportion of revenue from this sector[16] - The Group is focusing on enhancing production automation and optimizing costs and quality in response to rising labor costs and environmental regulations[24] - The company is committed to improving operational efficiency and exploring new market opportunities to enhance future performance[79] Employee and Operational Metrics - The group had 1,002 employees as of June 30, 2019, an increase from 986 employees as of December 31, 2018[59] - The Group has established long-term relationships with major customers, some of whom have been partners for over a decade, enhancing the ability to anticipate customer demand trends[20] Accounting and Financial Reporting - The Group adopted HKFRS 16 using the modified retrospective method with an initial application date of January 1, 2019[116] - The adoption of new and revised HKFRSs had no material impact on the interim financial information of the Group, except for HKFRS 16[117] - Under HKFRS 16, all leases are accounted for under a single on-balance sheet model, requiring lessees to recognize lease liabilities and corresponding right-of-use assets[116] - The cumulative effect of initial adoption of HKFRS 16 is recognized as an adjustment to the opening balance of retained earnings[119] - The Group's financial statements reflect the impacts of the new accounting policies adopted from January 1, 2019, replacing previous lease accounting policies[127] External Factors - The ongoing US-China trade war is expected to have a larger negative impact on the global economy compared to the previous year[69] - The company is closely monitoring customer orders and external developments to make necessary adjustments[69]

Financial Performance - The audited consolidated results for the year ended December 31, 2018, were presented, indicating the overall performance of the Group[16]. - The financial highlights section provides key metrics, including revenue and profit figures, which are essential for assessing the Group's financial health[6]. - Revenue for 2018 was approximately HK$766.0 million, representing an increase of approximately 20.9% from HK$633.6 million in 2017[25]. - Gross profit for 2018 was approximately HK$178.9 million, an increase of approximately 46.5% from 2017[25]. - Profit attributable to ordinary equity holders was approximately HK$58.4 million in 2018, reflecting an increase of approximately 140.3% from HK$24.3 million in 2017[25]. - Basic earnings per share for 2018 were HK24.3 cents, compared to HK10.1 cents in 2017[25]. - EBITDA for 2018 amounted to approximately HK$117.4 million, compared to approximately HK$63.7 million for the previous year[68]. - Other income and gains increased by approximately HK$10.9 million, or 147.3%, to approximately HK$18.3 million for the year ended December 31, 2018, primarily due to increased government grants and net foreign exchange gains[69]. - Selling and distribution expenses rose by approximately HK$6.4 million, or 34.2%, to approximately HK$25.1 million for the year ended December 31, 2018, mainly due to increased commissions[69]. - The Group's gross profit for 2018 was approximately HK$178.9 million, an increase of about 46.5% compared to the previous year, with a gross profit margin rising from 19.3% to 23.4%[70]. Market Outlook and Strategy - Future outlook and performance guidance will be discussed, focusing on expected growth rates and market conditions[8]. - New product and technology development initiatives are planned to enhance the Group's competitive edge in the market[8]. - Market expansion strategies will be outlined, detailing geographic and sectoral growth opportunities[8]. - Potential mergers and acquisitions are being considered to strengthen the Group's market position and diversify its offerings[8]. - The PCB market continues to face uncertainties due to geopolitical tensions and rising raw material costs, despite a stable growth in sales[25]. - The application of 5G technology and electric vehicles is expected to drive significant demand for PCBs, presenting a substantial business opportunity[25]. - The demand for PCBs is expected to increase significantly due to the rise of new energy vehicles, IoT, and 5G technology, with 5G development anticipated to mature around 2020[6][10]. - The PCB market is expected to benefit from emerging sectors, creating significant business opportunities in the coming years[6][10]. Operational Efficiency and Development - The company has enhanced production automation and improved production capacity, contributing to record sales and profitability[25]. - The Group plans to expand its production facilities and develop another production base to meet future market and production needs[61]. - The Group is enhancing production automation and optimizing costs and quality in response to rising labor costs and Industry 4.0 trends[60]. - The Group has invested in environmental protection measures, positioning itself better than competitors who fail to meet required standards[59]. Governance and Leadership - The Chairman's statement will provide insights into the Group's vision and strategic direction moving forward[14]. - The roles of chairman and chief executive officer are currently held by the same individual, Mr. Chan Wing Yin, to ensure consistent leadership and effective strategic planning[122]. - The Board consists of seven directors: three executive directors, one non-executive director, and three independent non-executive directors[128]. - The Company has established various Board committees to handle different aspects of its affairs, ensuring effective governance[142]. - The Company has a structure where the roles of Chairman and Chief Executive Officer are held by the same individual, which the Board believes ensures consistent leadership and effective strategic planning[151]. Risk Management and Internal Control - The Group established appropriate and effective risk management and internal control systems, complying with Principle C.2 of the Corporate Governance Code[176]. - The internal control system is compatible with the COSO 2013 framework, aimed at achieving operational effectiveness, reliable financial reporting, and compliance with applicable laws[177]. - The Board concluded that the risk management and internal control systems were effective and adequate, designed to manage risks rather than eliminate them[190]. - The internal audit function operates independently and assesses the effectiveness of risk management and internal control systems through interviews and tests[189]. - The Group's management continuously monitors risks and the quality of internal control systems[194]. Sustainability and Corporate Responsibility - The Group's commitment to sustainability and environmentally friendly practices will be emphasized in the annual report[4]. - The company is committed to sustainability initiatives, with plans to reduce operational costs by JJ% through energy-efficient practices[116]. Employee and Labor Relations - As of December 31, 2018, the Group had 986 employees, with total employee benefit expenses amounting to approximately HK$117.1 million, an increase from HK$101.9 million in 2017, representing a growth of about 15.3%[1]. - Labor costs in China have risen over the past decade, complicating recruitment efforts, particularly for skilled technicians, prompting many PCB companies to relocate production inland or automate processes[9][13].