Financial Performance - Revenue for the six months ended June 30, 2022, was approximately $40,114,000, an increase of about 22.5% compared to the same period last year[2] - Net profit for the same period was approximately $10,308,000, representing a year-on-year increase of about 10.9%[2] - Basic earnings per share for the six months ended June 30, 2022, were approximately 0.94 cents, an increase of about 9.3% year-on-year[2] - Gross profit for the six months was approximately $22,345,000, compared to $19,645,000 in the previous year[2] - The pre-tax profit for the six months ended June 30, 2022, was $12,283 thousand, compared to $11,042 thousand in 2021, indicating an increase of 11.3%[19] - Profit attributable to equity holders of the parent for the six months ended June 30, 2022, was approximately $10,308,000, reflecting a year-on-year growth of about 10.9%[54] Revenue Breakdown - Total revenue from customer contracts for the six months ended June 30, 2022, was $40,114 thousand, an increase of 22.4% from $32,751 thousand in 2021[16] - Revenue from SD-WAN routers for the six months ended June 30, 2022, was $6,562 thousand, up from $5,946 thousand in 2021, reflecting an increase of 10.3%[14] - Software licensing and support services revenue for the same period was $11,865 thousand, compared to $8,530 thousand in 2021, representing a growth of 39.3%[14] - North America contributed $23,638 thousand to total revenue in the first half of 2022, up from $18,106 thousand in 2021, marking a growth of 30.0%[15] - The total revenue from Europe, the Middle East, and Africa was $10,634 thousand in the first half of 2022, an increase from $9,366 thousand in 2021, representing a growth of 13.5%[15] - The company’s total revenue from Asia was $4,733 thousand for the six months ended June 30, 2022, compared to $4,556 thousand in 2021, showing an increase of 3.9%[15] Expenses and Costs - Total cost of goods sold for the six months ended June 30, 2022, was $16,864 thousand, compared to $12,068 thousand in 2021, reflecting an increase of 39.5%[19] - Research and development expenses for the six months were approximately $4,330,000, compared to $4,630,000 in the previous year[2] - General and administrative expenses were approximately $4,229,000, an increase of 43.5% year-over-year, primarily due to foreign exchange losses[48] - Sales and distribution expenses increased by approximately 16.5% year-over-year to about $1,507,000, driven by higher advertising and promotional costs[47] - Total operating expenses for the six months ended June 30, 2022, were approximately $10,066,000, representing a year-on-year increase of about 13.5%[51] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $26,898,000, down from $31,641,000 at the end of the previous year[4] - The company reported a net cash inflow from operating activities of $4,971,000 for the six months ended June 30, 2022[8] - Total non-current assets as of June 30, 2022, were $5,081,000, compared to $4,800,000 as of December 31, 2021[4] - Trade receivables as of June 30, 2022, amounted to $9,934,000, a decrease from $11,693,000 as of December 31, 2021, reflecting a reduction of approximately 15.1%[26] - Inventory levels increased to $27,131,000 as of June 30, 2022, compared to $18,622,000 as of December 31, 2021, marking a significant rise of approximately 45.9%[26] Dividends and Share Capital - The company declared an interim dividend of 5.9 HK cents per share for the six months ended June 30, 2022[1] - The interim dividend declared for the six months ended June 30, 2022, is 5.9 HK cents per share, an increase from 5.32 HK cents per share in the same period last year, representing a growth of 10.2%[23] - The total issued share capital as of June 30, 2022, was 1,093,925,000 shares, an increase from 1,090,811,000 shares as of December 31, 2021[30] Market and Product Insights - The company is engaged in the design, development, and marketing of software-defined wide area network (SD-WAN) routers[9] - The company faced challenges due to COVID-19 related lockdowns in Hong Kong and Taiwan, which delayed the release of a key product[37] - The strong appreciation of the US dollar negatively impacted sales figures calculated in USD[37] - The revenue breakdown by product/service category shows that wireless SD-WAN routers accounted for 54.1% of total revenue, while warranty and support services made up 24.7%[38] - 5G products contributed 15.9% of total revenue, with a year-on-year growth of approximately 255.4%[59] Future Outlook and Strategic Initiatives - The company provided guidance for the next quarter, expecting revenue to be between $1.6 billion and $1.7 billion, indicating a growth rate of 10% to 13%[91] - New product launches are anticipated to contribute an additional $200 million in revenue over the next fiscal year[91] - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[91] - Market expansion plans include entering two new international markets by the end of the year, projected to increase market share by 5%[91] - The company is exploring potential acquisitions to bolster its product offerings, with a budget of $100 million allocated for this purpose[91] - A new strategic partnership has been established, expected to generate an additional $300 million in revenue over the next three years[91]

Financial Performance - The company achieved approximately 40.3% revenue growth and about 49.0% net profit growth year-over-year[7] - Revenue for 2021 reached $74.128 million, a 40.5% increase from $52.818 million in 2020[18] - Profit for the year attributable to owners of the parent was $21.200 million, up 49.0% from $14.230 million in 2020[18] - Core net profit for 2021 was $21.323 million, representing a 47.5% increase compared to $14.445 million in 2020[18] - Total assets increased to $71.743 million in 2021, up 21.0% from $59.307 million in 2020[19] - Total liabilities rose to $31.660 million, a 34.9% increase from $23.469 million in 2020[19] - Equity attributable to owners of the parent increased to $40.083 million, up 11.8% from $35.838 million in 2020[19] - Gross profit for the year ended December 31, 2021, was approximately US$43,155,000, a year-over-year increase of approximately 40.1%[32] - Gross profit margin was approximately 58.2%, compared to approximately 58.3% for the previous year[35] Revenue Streams - 5G products contributed around 10.1% to the total revenue, indicating a strong market presence in this segment[7] - Sales of wired SD-WAN products rose to approximately US$12,463,000, reflecting a year-over-year increase of about 36.2%[21] - Sales of wireless SD-WAN products increased to approximately US$42,561,000, marking a year-over-year growth of about 49.6%[21] - Warranty and support services revenue grew by approximately 27.6% to US$15,724,000[21] - Software licenses sales increased by approximately 16.3% year-over-year to US$3,380,000[21] - One-time sales increased approximately 44.3%, while recurring sales grew approximately 28.6% year-over-year[27] Market Expansion and Strategy - A new strategy is in place to expand into ASEAN and emerging countries by leveraging software capabilities and competitive pricing[11] - The company is expanding its ecosystem with more software integration to enable competitive subscription offerings, reflecting a shift towards a SaaS model[10] - Future expansion strategies include leveraging software development capabilities to penetrate ASEAN and emerging markets[15] - The company has seen significant growth in small-sized, ad-hoc networks, with businesses increasingly utilizing LTE/5G for quick deployment[7] - The strong growth in mid-range dual-radio wireless SD-WAN products and wired SD-WAN products for mid-sized enterprises aligns with the strategy to accelerate the growth of the installed base[22] Operational Efficiency - The company has minimized supply chain challenges through agile execution and securing component supply, outperforming industry peers[7] - The company is focused on operational improvements and diversifying its supply chain to mitigate ongoing challenges[17] - The SpeedFusion Cloud infrastructure has simplified the technical skills needed for establishing reliable connections across various industries[7] - The installed base growth is expected to increase recurring service revenue in the coming years[22] Marketing and Growth - Enhanced marketing efforts have resulted in broad growth across all markets, showcasing the effectiveness of the company's campaigns[9] - The marketing team has achieved broad growth across all markets through effective and creative promotional efforts[13] Corporate Governance - The Company has adopted the Corporate Governance Code and complied with all applicable code provisions during the year ended December 31, 2021[84] - The Board is responsible for the management, direction, and supervision of the Group's businesses[97] - The Company Secretary ensures that all Directors receive relevant information in a timely manner[104] - The Board delegates day-to-day operations and business strategies to executive Directors and senior management[95] - The independent non-executive Directors contribute independent judgment on strategy, performance, and risk[96] - The Board's main duties include ensuring the effectiveness of the Group's financial reporting and compliance[97] Shareholder Information - The Board declared a second interim dividend of HK8.27 cents per share and a special dividend of HK0.71 cent per share for the year ended December 31, 2021[78] - The Group's liquidity position remained stable, with no liquidity problems reported during the year ended December 31, 2021[66] - Shareholders holding at least 10% of the Company's paid-up capital can requisition an extraordinary general meeting[149] - The organizational articles of association have not undergone significant changes as of December 31, 2021[159] Employee and Management - The Group had 190 full-time employees as of December 31, 2021, an increase from 167 in 2020[69] - The total amount of staff costs for the year was approximately US$9,854,000, up from US$8,215,000 in 2020[69] - The directors' remuneration is reviewed annually by the Remuneration Committee, with fees subject to shareholders' approval at general meetings[178] Risk Management - The Company has established a Risk Management Committee to enhance risk management capabilities and improve corporate governance[122] - The Group's internal audit function regularly reviews the effectiveness of risk management and internal control systems to adapt to the changing business environment[135] Share Option Scheme - The share option scheme was conditionally adopted on June 21, 2016, and became effective on the listing date, with a total of 36,408,000 options granted as of January 1, 2021[194] - The share option scheme aims to incentivize directors and employees, aligning their interests with the company's performance[194] - The company plans to continue utilizing the share option scheme to attract and retain talent in the future[194]

Financial Performance - Revenue for the six months ended June 30, 2021, was approximately $32,751,000, an increase of about 35.9% compared to $24,102,000 for the same period in 2020[1] - Profit attributable to the owners of the company for the six months ended June 30, 2021, was approximately $9,292,000, representing an increase of about 81.5% from $5,120,000 in the same period of 2020[2] - Basic earnings per share for the six months ended June 30, 2021, was approximately 0.86 cents, compared to approximately 0.49 cents for the same period in 2020[2] - The company recorded a gross profit of $19,645,000 for the six months ended June 30, 2021, compared to $14,136,000 for the same period in 2020[2] - Cash flow from operating activities for the six months ended June 30, 2021, was $7,766,000, an increase from $3,511,000 in the same period of 2020[6] - The company achieved a pre-tax profit of $11,042,000 for the six months ended June 30, 2021, compared to $6,070,000 for the same period in 2020, representing an increase of approximately 82.2%[13] - The company reported a pre-tax profit of $1,750,000 for the six months ended June 30, 2021, compared to $950,000 for the same period in 2020, indicating an increase of 84%[20] - Net profit attributable to the parent company reached approximately $9,292,000, reflecting a year-over-year growth of about 81.5%[46] Revenue Breakdown - The sales of SD-WAN routers generated $18,275,000 in revenue for the six months ended June 30, 2021, compared to $12,960,000 in the same period of 2020, reflecting a growth of approximately 41.1%[13] - The software licensing and support services segment reported revenue of $8,530,000 for the six months ended June 30, 2021, compared to $7,266,000 in 2020, marking an increase of about 17.4%[13] - Revenue from North America reached $18,106,000 for the six months ended June 30, 2021, up from $13,628,000 in 2020, which is a growth of about 32.3%[14] - Revenue from Europe, the Middle East, and Africa was $9,366,000 for the six months ended June 30, 2021, compared to $6,257,000 in 2020, reflecting an increase of approximately 49.5%[14] - Revenue from customer contracts for the six months ended June 30, 2021, was $32,751,000, an increase of 36% compared to $24,102,000 for the same period in 2020[15] - SD-WAN sales contributed $24,221,000 in revenue for the first half of 2021, up from $16,836,000 in 2020, representing a growth of 44%[15] Assets and Liabilities - Total current assets as of June 30, 2021, were $54,421,000, slightly down from $54,941,000 as of December 31, 2020[3] - Total non-current assets as of June 30, 2021, were $3,706,000, down from $4,366,000 as of December 31, 2020[3] - The company’s total equity attributable to owners was $34,364,000 as of June 30, 2021, compared to $35,838,000 as of December 31, 2020[4] - Trade receivables as of June 30, 2021, were $8,622,000, up from $7,110,000 at the end of 2020, showing a growth of 21%[25] - The total inventory as of June 30, 2021, was $15,824,000, an increase from $12,509,000 at the end of 2020, reflecting a growth of 27%[21] - As of June 30, 2021, the company's bank borrowings were approximately $1.368 million, down from $3.387 million on December 31, 2020, resulting in a capital debt ratio of about 4.0% compared to 9.4% the previous year[52] Dividends and Shareholder Information - The company declared an interim dividend of 5.32 HK cents per share to shareholders listed on August 11, 2021[1] - The company declared an interim dividend of 5.32 HKD per share for the six months ended June 30, 2021, compared to 3.03 HKD per share for the same period in 2020, marking a 76% increase[22] - The company has authorized 4,000,000,000 shares, with 1,081,760,000 shares issued and fully paid as of June 30, 2021, compared to 1,071,728,000 shares as of December 31, 2020[28] - The beneficial ownership of shares by directors includes 756 million shares (69.9%) held by Chen Yongkang[64] - The beneficial ownership of shares by other directors includes 6 million shares (0.6%) held by Zhou Jiehuai, Zhuang Mingpei, and Yang Yu[64] Operational Highlights - The company has been engaged in the design, development, and marketing of software-defined wide area network (SD-WAN) routers during this period[9] - The company has two reportable operating segments: sales of SD-WAN routers and software licensing and support services, with both segments showing positive growth[12] - The significant increase in sales of wired and wireless SD-WAN routers was attributed to the growing demand for flexible connectivity to ensure online business continuity and productivity[36] - The company continues to experience growth in warranty and support services at a rate similar to past trends[36] - The company plans to launch several advanced new products supporting 5G and WiFi 6 in the second half of the year[49] - The company is preparing for the next phase of growth with the launch of a disruptive new service aimed at simplifying mobile connectivity for enterprise customers, potentially increasing recurring revenue significantly in the coming years[50] Governance and Compliance - The company has adopted a corporate governance code to maintain high levels of governance and transparency, complying with all applicable provisions during the reporting period[75] - The audit committee has reviewed the group's interim performance, including accounting principles and financial reporting matters for the six months ended June 30, 2021[77] - The company has confirmed that no directors or their associates held any interests in businesses that compete with the group during the reporting period[71] - The company has complied with the standard code for securities transactions by directors throughout the reporting period[76] Research and Development - Research and development expenses increased by approximately 13.8% to about $4,630,000, driven by the expansion of the R&D team and investments in 5G product development[44] - The company has fully utilized the net proceeds of approximately $14.0 million from its IPO, with allocations including 36% for expanding the R&D team and 15% for marketing activities[59] Other Financial Information - The company reported a net cash flow from investing activities of $(568,000) for the six months ended June 30, 2021, compared to $(5,862,000) in the same period of 2020[6] - The company reported a net foreign exchange loss of $140,000 for the six months ended June 30, 2021, compared to a gain of $103,000 in 2020[17] - The company received government grants totaling approximately $308,000 related to R&D projects during the reporting period[18] - The company did not purchase, redeem, or sell any of its listed securities during the reporting period[74] - There were no significant subsequent events after June 30, 2021, up to the date of this report[72]

Financial Performance - In 2020, the company achieved revenue growth of approximately 15.0% year-over-year and diluted EPS growth of 16.7% year-over-year[7]. - Plover Bay generated annual revenue of US$52.8 million in 2020, an increase of 15.5% from US$45.9 million in 2019[14]. - The profit attributable to owners of the parent for 2020 was US$14.2 million, up from US$12.1 million in 2019, representing a growth of 17.7%[14]. - Core net profit for 2020 was US$14.4 million, compared to US$12.6 million in 2019, reflecting an increase of 14.6%[14]. - Earnings per share for 2020 was US$1.34, up from US$1.17 in 2019, indicating a growth of 14.5%[14]. - For the year ended December 31, 2020, the Group's revenue was approximately US$52,818,000, representing a year-on-year increase of approximately 15.0%[20]. - Gross profit for the year was approximately US$30,800,000, a year-on-year increase of approximately 7.0%[27]. - Gross profit margin decreased to approximately 58.3% from approximately 62.7% in the previous year[27]. - The profit attributable to the owners of the parent company for the year ended December 31, 2020, was approximately US$14,230,000, representing an increase of about 17.7% year-on-year[49]. Market Trends and Technology - The patented technology, SpeedFusion, has been instrumental in supporting organizations and schools for remote work and learning during the pandemic[7]. - The company anticipates a multi-year upgrade cycle to 5G networks, which will create strong demand for 5G wireless SD-WAN routers[7]. - The cost per GB with 5G is expected to be substantially lower than LTE, potentially overcoming psychological barriers for organizations to deploy mobile broadband[7]. - SpeedFusion is recognized as a stable and reliable connection technology for video conferencing, video streaming, and secure network access[7]. - Applications such as surveillance cameras and live video streaming are projected to drive demand for 5G solutions[7]. - The company expects significant changes in the industry as 5G networks gain traction globally[7]. - The company is positioned to benefit from the transition from LTE WAN to 5G, enhancing its market presence[7]. Operational Efficiency - The company has focused on operational efficiency, allowing it to minimize the impact of supply chain and logistics challenges due to the pandemic[7]. - The operational excellence demonstrated in 2020 reflects the company's commitment to technology and efficiency[7]. - Total operating expenses for the year ended December 31, 2020, amounted to approximately US$15,435,000, representing a year-on-year increase of approximately 1.8%, with employee costs being the largest component at US$8,215,000[43]. Revenue Sources - Recurring sales from warranty packages and renewals contributed approximately US$13.5 million, or 25.5% of total revenue[10]. - Wireless SD-WAN segment grew 15.3% year-on-year, while wired SD-WAN segment sales increased approximately 16.5% year-on-year[20]. - Software licenses increased by 37.8% year-on-year, driven by sales of add-on features to a growing number of installed base[20]. - One-time sales increased 16.2% year-on-year, and recurring sales increased 11.7% year-on-year[22]. Assets and Liabilities - Total assets as of December 31, 2020, amounted to US$59.3 million, a rise from US$50.1 million in 2019[15]. - Total current liabilities increased to US$20.9 million in 2020 from US$12.9 million in 2019, marking a 62.2% increase[15]. - As of December 31, 2020, the Group's inventory balance was approximately US$12,509,000, an increase from approximately US$7,387,000 in 2019, due to increased purchases of electronic components amid a global shortage[45]. Corporate Governance - The Company complied with all applicable code provisions of the Corporate Governance Code during the year ended December 31, 2020[74]. - The Board consists of eight members, including five executive Directors and three independent non-executive Directors[82]. - The Company aims to maintain high standards of corporate governance to enhance shareholder value[80]. - The Board's main duties include overseeing the management and ensuring effective financial reporting and compliance[87]. - The Company has established a framework for corporate governance, ensuring effective operation of the Board and its committees[99]. Dividends and Shareholder Returns - A second interim dividend of HK6.23 cents per share and a special dividend of HK2.17 cents per share were declared for the year ended 31 December 2020[71]. - The Board will consider future capital needs, profitability, financial structure, and liquidity when determining dividends for shareholders[121]. - The Company has maintained its dividend policy since February 28, 2019, aiming to provide stable and sustainable returns to shareholders[120]. Investor Relations - The Group actively engages with investors through investment forums, on-site visits, and trade shows to enhance understanding of its business[134]. - The company has strengthened investor relations through participation in investment forums and communication with analysts and fund management companies[138]. - The company plans to maintain good communication with investors through regular press releases, updates on the website, and active participation in meetings and roadshows[138]. Environmental, Social, and Governance (ESG) - The Group's Environmental, Social and Governance (ESG) Report covers the performance of social and governance from January 1, 2020, to December 31, 2020[187]. - The ESG report presents the Group's sustainability approach and performance in the environmental and social aspects of its business in Hong Kong during the year[188]. - The Group is committed to emission reduction and resource conservation across all operations[195]. - The Group continues to improve resource usage intensity in energy conservation, packaging materials, waste management, and green operations[196]. Management Team - The company has a strong management team with diverse backgrounds in engineering and business management, enhancing its operational capabilities[150]. - The executive director and chairman, Mr. Chan, has over 30 years of experience in the electronic engineering and information technology industry[140]. - The CEO, Mr. Chau, has over 20 years of experience in sales and marketing within the information technology industry[140]. - The company is committed to continuous innovation in both hardware and software sectors to drive future growth[146].

（於開曼群島註冊成立之有限公司） （股份代號：1523） 截 至 2020 年 6 月 3 0 日止六個月 中期業績報告 概要 • 截至2020年6月30日止六個月的收入約為24,102,000美元，較截至2019年6月30日止 六個月約22,025,000美元，增加約9.4%。 • 截至2020年6月30日止六個月的本公司擁有人應佔利潤約為5,120,000美元，而截 至2019年6月30日止六個月的本公司擁有人應佔利潤則約為5,758,000美元，減少 約11.1%。 • 截至2020年6月30日止六個月本公司錄得每股基本盈利約為0.49美仙（截至2019年 6月30日止六個月：每股約0.56美仙）。 • 董事會已決定於2020年8月25日向於2020年8月14日名列本公司股東名冊的股東派 付截至2020年6月30日止六個月的中期股息每股3.03港仙。 – 1 – 珩灣科技有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其附屬 公司（「本集團」）截至2020年6月30日止六個月的未經審核簡明綜合中期業績，連同 2019年同期的比較數字如下： 其他全面收益 其後可能重新分類為損益的其他 ...

Financial Performance - Revenue for 2019 reached $45.91 million, representing a 10% increase from $41.81 million in 2018[34] - Net profit attributable to shareholders for 2019 was $12.09 million, a 14% increase from $10.62 million in 2018[34] - Core net profit for 2019 was $12.62 million, up from $11.38 million in 2018, indicating a growth of 10.9%[34] - Basic earnings per share for 2019 was $1.17, compared to $1.04 in 2018, reflecting a 12.5% increase[34] - The company's revenue for the year ended December 31, 2019, was approximately $45,910,000, representing a year-over-year growth of about 9.8%[39] - Wireless SD-WAN router sales increased by approximately 10.9% year-over-year, driven by high sales volume and revenue from wireless SD-WAN products[39] - Warranty and support service sales grew by 18.3% year-over-year, reflecting the growth momentum of SD-WAN routers[39] - Software license sales increased by 14.2% year-over-year due to the introduction of additional features for SD-WAN routers[39] - Gross profit for the year was approximately $28,774,000, with a gross margin of about 62.7%, slightly up from 62.6% in the previous year[44] - Profit attributable to equity holders of the parent company was approximately $12,089,000 for the year ended December 31, 2019, reflecting an annual increase of about 13.8%[54] Assets and Liabilities - Total assets increased to $50.08 million in 2019 from $45.30 million in 2018, marking an 8% growth[35] - Total liabilities rose to $15.96 million in 2019, up from $12.58 million in 2018, indicating a 27% increase[35] - Equity attributable to shareholders increased to $34.11 million in 2019, compared to $32.72 million in 2018, reflecting a 4.3% growth[35] Expenses - Research and development expenses for the year were approximately $7,221,000, a decrease of about 1.3% year-over-year[49] - Sales and distribution expenses reached approximately $2,411,000, an increase of about 14.4% year-over-year[47] - Administrative expenses were approximately $5,537,000, reflecting a year-over-year increase of about 15.0%[48] - Total operating expenses for the year ended December 31, 2019, were approximately $15,169,000, representing an annual increase of about 6.5%[51] - Financial costs increased by approximately 196.9% to about $95,000 for the year ended December 31, 2019, primarily due to the recognition of lease liabilities under the new Hong Kong Financial Reporting Standard[52] Dividends - The company declared a second interim dividend of HKD 0.0464 per share and a special dividend of HKD 0.0298 per share for the year ended December 31, 2019[72] - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders, with no changes made as of December 31, 2019[104] - The board will continue to review the dividend policy and retains the discretion to update or modify it as necessary[104] Corporate Governance - The board is committed to maintaining high standards of corporate governance, which is essential for protecting shareholder interests and enhancing corporate value[74] - The board of directors consists of eight members, including five executive directors and three independent non-executive directors[77] - The board held four regular meetings during the year ending December 31, 2019[81] - The audit committee, composed of three independent non-executive directors, held two meetings to review the group's annual performance for the year ending December 31, 2018, and the interim performance for the six months ending June 30, 2019[88] - The audit committee is responsible for overseeing the appointment and dismissal of external auditors, reviewing financial statements, and monitoring risk management and internal control procedures[87] - The company aims to enhance long-term shareholder value while balancing broader shareholder interests[79] - The independent non-executive directors bring diverse technical and business experience to the group[78] - The chairman and CEO roles are separated to ensure a balance of power and authority[82] - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Risk Management Committee[85] - The independent non-executive directors have a service term of three years, subject to the company's articles of association[84] - The board retains ultimate decision-making authority, even when delegating management responsibilities to executive directors and senior management[78] Employee Information - The company has 159 full-time employees, with total employee costs for the year amounting to approximately $8,135,000, reflecting an annual increase of about 5.0%[61] - As of December 31, 2019, the total number of employees was 164, with 114 male and 50 female employees[184] - The company employed 159 full-time and 5 part-time employees as of December 31, 2019[185] - The age distribution of employees included 23 under 30 years, 129 between 30 and 50 years, and 12 over 50 years[185] - The company has implemented flexible working hours since 2010 to promote work-life balance for employees[186] - There were zero work-related fatalities and zero days lost due to work-related injuries as of December 31, 2019[189] - The company provides a comprehensive benefits package, including guaranteed bonuses and stock options for all employees[186] - The company emphasizes a non-discriminatory workplace and has a diverse workforce policy[184] - The company conducts annual performance evaluations to assist employees in career planning and development[190] Environmental Impact - The total energy consumption for the year was 363 MWh, with an average consumption of 0.12 MWh per square meter[176] - The total water usage for the company's storage facilities was 34 cubic meters, averaging 0.05 cubic meters per square meter[177] - The company used 18,489 kg of cardboard and 1,966 kg of plastic packaging materials, averaging 0.45 kg of packaging material per $1,000 in revenue[178] - The total amount of non-hazardous waste generated was 9.9 tons, with 0.22 kg of waste produced per $1,000 in revenue[181] - The company recycled a total of 6.5 tons of non-hazardous waste, including 5.9 tons of metal and 0.6 tons of paper[181] - The company has implemented energy-saving measures, including automatic lighting and air conditioning controls in meeting rooms[176] - The company is committed to reducing packaging material usage to minimize environmental impact[178] - The company has adopted a waste management strategy based on the "3R" principles: Reduce, Reuse, and Recycle[179] - The company encourages employees to use resources responsibly to promote water conservation[177] - The company has maintained compliance with environmental protection laws and regulations, ensuring no significant pollution issues arise from its operations[175] - The company's greenhouse gas emissions for the year amounted to 359 tons, with a net total of 347 tons after recycling paper avoided the production of 12 tons of emissions[182] - The average greenhouse gas emissions per square meter of floor area for the year were 0.12 tons[182] Research and Development - A new R&D team was set up in Lithuania, enhancing the company's research capabilities and diversifying geographic risk[32] - Focus on SD-WAN routers, which are competitively priced and expected to generate recurring revenue through new software functionalities[33] - The company plans to launch new 5G-compatible enterprise routers and enhance product accessibility to create more recurring revenue opportunities[57] - The introduction of the new FusionSIM technology aims to simplify the deployment of wireless SD-WAN routers and improve centralized management for enterprise clients[58] - The company will expand its subscription service offerings, providing a one-stop solution that includes enterprise routers, cloud management, and technical support, which is expected to reduce capital expenditures for clients[58] Related Party Transactions - The company reported significant related party transactions as of December 31, 2019, including ongoing transactions that require disclosure under listing rules[157] - Total rental payments for the year ending December 31, 2019, included HKD 280,212 for Pegatrack Limited, HKD 648,480 for PBS Ventures Limited, and HKD 404,940 for Nice Achieve Limited[158] - The company confirmed that all related party transactions were conducted in the ordinary course of business and on normal commercial terms[162] - The independent auditor reviewed the related party transactions and issued an unmodified independent assurance report[163] - The board of directors confirmed that the related party transactions were fair and reasonable and in the overall interest of the shareholders[162] Customer and Supplier Relationships - The top five customers accounted for approximately 53.7% of the total revenue for the year ended December 31, 2019, compared to 45.0% in 2018[156] - The largest customer contributed about 30.0% of the total revenue in 2019, up from 24.9% in 2018[156] - The top five suppliers represented approximately 63.1% of the total procurement volume, a decrease from 70.9% in 2018[156] - The largest supplier accounted for about 18.8% of the total procurement volume, down from 25.6% in 2018[156] - The group’s total procurement volume from the top five suppliers decreased, indicating a potential shift in supplier relationships[156] Stock Options - The group granted a total of 26,496,000 stock options during the year, with 6,870,000 options exercised[143] - As of December 31, 2019, there were 19,626,000 stock options remaining unexercised[143] - The exercise price for stock options granted on July 20, 2016, was HKD 0.483, with a validity period extending to July 19, 2021[142] - The company has a stock option plan that was conditionally adopted on June 21, 2016, and became effective on the listing date[142]

Financial Performance - Revenue for the six months ended June 30, 2019, was approximately $22,025,000, an increase of about 11.6% compared to $19,728,000 for the same period in 2018[1] - Profit attributable to the owners of the company for the six months ended June 30, 2019, was approximately $5,758,000, representing an increase of about 21.4% from $4,743,000 in the same period of 2018[2] - Basic earnings per share for the six months ended June 30, 2019, was approximately 0.56 cents, compared to 0.47 cents for the same period in 2018[2] - The company reported a net increase in cash and cash equivalents of $14,000, significantly lower than the $5,547,000 increase in the prior year[6] - The company reported a total segment performance of $10,314 thousand for the six months ended June 30, 2019, up from $8,768 thousand in the same period of 2018[20] - The pre-tax profit for the six months ended June 30, 2019, was $6,935 thousand, compared to $5,776 thousand in 2018, reflecting an increase of approximately 20%[20] Dividends - The board declared an interim dividend of 3.49 HK cents per share for the six months ended June 30, 2019[1] - The interim dividend for the six months ended June 30, 2019, is declared at HKD 3.49 per share, an increase from HKD 2.92 per share in 2018[8] - The board has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders while maintaining sufficient working capital[67] Assets and Liabilities - Non-current assets as of June 30, 2019, totaled $5,744,000, an increase from $3,391,000 as of December 31, 2018[3] - Current assets as of June 30, 2019, amounted to $41,525,000, slightly down from $41,904,000 as of December 31, 2018[3] - Total liabilities as of June 30, 2019, were $12,643,000, compared to $10,559,000 as of December 31, 2018[3] - The company's total equity as of June 30, 2019, was $31,408,000, down from $32,718,000 as of December 31, 2018[4] - The company reported a net cash position of $26,858,000 as of June 30, 2019, compared to $26,850,000 as of December 31, 2018[3] Cash Flow - Net cash flow from operating activities for the six months ended June 30, 2019, was $8,707,000, a decrease of 22.5% compared to $11,259,000 for the same period in 2018[6] - Cash flow used in investing activities was a net outflow of $425,000, slightly improved from a net outflow of $472,000 in the previous year[6] - Cash flow used in financing activities amounted to a net outflow of $8,268,000, an increase of 57.6% from $5,240,000 in the same period last year[6] Revenue Breakdown - The revenue from software licenses and warranty support services was $6,567 thousand for the six months ended June 30, 2019, compared to $5,071 thousand in 2018, marking an increase of approximately 29.4%[20] - The sales of SD-WAN routers generated $15,458 thousand in revenue, with wired routers contributing $3,955 thousand and wireless routers contributing $11,503 thousand[22] - Revenue growth was driven by an 8.5% increase in wireless SD-WAN router sales, a 31.1% increase in warranty and support services, and a 21.9% increase in software licenses[44] - The revenue breakdown by product/service category showed that wireless SD-WAN routers accounted for 52.2% of total revenue, while warranty and support services contributed 25.0%[44] Expenses - The company’s total sales and distribution expenses for the six months ended June 30, 2019, were $(1,168) thousand, compared to $(1,058) thousand in 2018, showing an increase in expenses[20] - Administrative expenses rose to approximately $2,609,000 for the six months ended June 30, 2019, an increase of $443,000 or 20.5% from $2,166,000 in the same period of 2018[50] - Total operating expenses increased to approximately $7,290,000 for the six months ended June 30, 2019, reflecting an increase of about 8.2% from $6,735,000 in the same period of 2018[52] Corporate Governance - The company has adopted a corporate governance code to maintain high levels of corporate governance and transparency[82] - The audit committee reviewed the consolidated annual performance of the group for the period ending June 30, 2019[84] Research and Development - The company aims to enhance product scalability and brand recognition through the development of a new service called SpeedFusion Cloud[57] - 23% of the total proceeds, equivalent to $3.12 million, was allocated to expanding the R&D team, with $2.52 million already utilized[66] - The company has established a research and development center, utilizing $1.75 million, of which $1.23 million has been spent[66] Stock Options - The total number of options outstanding as of June 30, 2019, is 75,540,000, down from 86,584,000 in 2018[38] - The company’s stock options granted during the period had a fair value of approximately $86,000, with an estimated expense of about $275,000 recognized during the period[40] - The weighted average share price for stock options granted was HKD 1.15, with a dividend yield of 6.30% and an expected volatility of 36.52%[40]

Financial Performance - Revenue for the year ended December 31, 2018, was $41.806 million, representing a 12.6% increase from $37.132 million in 2017[11] - Net profit attributable to shareholders for 2018 was $10.620 million, a 21.3% increase from $8.754 million in 2017[11] - The core net profit for 2018 was $11.381 million, up from $9.518 million in 2017, indicating a strong growth trajectory[14] - The company's gross profit for the fiscal year ended December 31, 2018, was approximately $26,189,000, with a gross margin of about 62.6%, improving from a gross profit of approximately $22,975,000 and a margin of 61.9% in the previous year[23] - Basic earnings per share for 2018 was $1.04, compared to $0.87 in 2017, indicating a 19.5% growth[173] - The company reported a pre-tax profit of $12,213,000 for 2018, an increase from $10,629,000 in 2017, representing a growth of approximately 14.9%[176] - The company’s total comprehensive income for 2018 was $10,621,000, compared to $8,677,000 in 2017, representing an increase of approximately 22.4%[175] Assets and Liabilities - The total assets as of December 31, 2018, amounted to $45.295 million, compared to $40.559 million in 2017, reflecting a growth of 11.4%[15] - The total liabilities as of December 31, 2018, were $12.577 million, slightly up from $11.809 million in 2017[15] - Total current assets increased to $41.904 million in 2018 from $37.881 million in 2017, showing a growth of 10.6%[174] - Total non-current assets rose to $3.391 million in 2018, up from $2.678 million in 2017, marking a 26.6% increase[174] - Total liabilities remained relatively stable, with current liabilities totaling $10.559 million in 2018 compared to $10.529 million in 2017[174] - The company's total equity increased to $32.718 million in 2018, up from $28.750 million in 2017, reflecting a growth of 13.7%[174] Dividends - The company declared a special dividend of HKD 0.0152 and a second interim dividend of HKD 0.0436, to be paid on March 27, 2019[13] - The interim dividend declared was HKD 0.0292 per share, an increase from HKD 0.0258 per share in 2017, indicating a positive trend in shareholder returns[96] - The total amount of dividends declared for the year was approximately USD 7.736 million, including a special dividend of HKD 0.0152 per share[96] - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders while maintaining sufficient working capital[49] Market Performance - North America accounted for approximately $24,368,000 or 58.3% of total revenue in 2018, up from $21,305,000 or 57.4% in 2017, representing a growth of about 14.4%[22] - EMEA sales increased to approximately $10,290,000, a growth of 34.5% compared to $7,652,000 in 2017[22] - The company experienced a decrease in sales to Asia and other regions, with declines of approximately 12.8% and 10.6%, respectively, due to regional political instability and global trade uncertainties[22] - The company anticipates that the North American market will continue to account for a significant portion of its revenue in the foreseeable future[22] Research and Development - The company is focused on developing differentiated SD-WAN software and hardware solutions, with new products supporting 5G technology[12] - R&D expenses for the year ended December 31, 2018, were approximately $7,318,000, an increase of about $129,000 or 1.8% compared to $7,189,000 for the year ended December 31, 2017, reflecting rising wage costs and material expenses for engineering samples[28] - The company anticipates a compound annual growth rate of 37-40% in the software-defined wide area network (SD-WAN) market over the next few years, driven by enterprise customers replacing traditional WAN equipment[35] Operational Expenses - Selling and distribution expenses increased by approximately $471,000 or 28.8%, totaling about $2,107,000 for the fiscal year ended December 31, 2018[26] - Administrative expenses rose by approximately $856,000 or 21.6%, amounting to about $4,814,000 for the fiscal year ended December 31, 2018[27] - Total operating expenses for the year ended December 31, 2018, were approximately $14,239,000, an increase of about $1,456,000 or 11.4% from $12,783,000 for the year ended December 31, 2017, with employee costs being the largest component at approximately $7,794,000[30] Corporate Governance - The board consists of eight members, including five executive directors and three independent non-executive directors[56] - The board held five regular meetings during the year ending December 31, 2018[58] - The audit committee, composed of three independent non-executive directors, held two meetings to review the annual results for the year ending December 31, 2017, and the interim results for the six months ending June 30, 2018[63] - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Risk Management Committee[62] - The company has adopted a code of conduct to provide comprehensive guidance on best business practices and compliance with financial transaction regulations[76] Environmental and Social Responsibility - The company has adopted a sustainable development strategy and fulfilled its social and governance responsibilities during the reporting period[130] - The company has implemented measures to enhance energy efficiency, including using high-efficiency equipment and regular cleaning of lighting and air conditioning[140] - The company emphasizes the importance of sustainable water resource usage and encourages employees to use resources correctly[141] - The company has maintained compliance with environmental protection laws and regulations, ensuring no significant environmental issues arise from its operations[139] Employee Relations - The total number of employees as of December 31, 2018, was 125, comprising 86 males and 39 females[149] - The company has established a comprehensive employee benefits program, including guaranteed bonuses and stock options, to attract and retain talent[149] - The company encourages employee participation in external training courses to enhance their job-related knowledge[151] - There were zero work-related fatalities and zero days lost due to work-related injuries during the year[150] Stock Options and Shareholder Interests - The company granted a total of 77,960,000 stock options during the year, with 25,764,000 options exercised and 14,496,000 options expired or canceled[113] - The stock options plan was adopted conditionally on June 21, 2016, and became effective on the listing date[111] - The company’s stock options plan allows for 25% of the options to be exercised one year after the grant date, with subsequent annual vesting[114] - The company’s directors and senior executives have disclosed their interests in shares and related securities as required by the Securities and Futures Ordinance[107] Related Party Transactions - The company entered into significant related party transactions, which were disclosed in the financial statements for the year ended December 31, 2018[118] - Independent non-executive directors confirmed that related party transactions were conducted in the ordinary course of business and on normal commercial terms[122] - The company’s auditor conducted a review of the related party transactions and issued an unmodified independent assurance report[123]