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]