香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部分內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 TRIO INDUSTRIAL ELECTRONICS GROUP LIMITED 致豐工業電子集團有限公司 （於香港註冊成立的有限公司） （股份代號：1710） 截至二零二二年十二月三十一日止年度 全年業績公佈 致 豐 工 業 電 子 集 團 有 限 公 司（「 本 公 司」）董 事（「 董 事」）組 成 的 董 事 會 （「 董 事 會」）欣 然 宣 佈 ， 本 公 司 及 其 附 屬 公 司（ 統 稱 為「 本 集 團」）截 至 二零二二年十二月三十一日止年度（「二零二二財政年度」）之綜合年度業績，連同 截至二零二一年十二月三十一日止年度（「二零二一財政年度」）之比較數字如下： 財務摘要： ‧ 截至二零二二年十二月三十一日止年度之收益較二零二一年同期增加 31.5%至978,100,000港元。 ‧ 截至二零二二年十二月三十一日止年度之毛利較二零二一年同期增加 48.8%至207,300,000港元 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HK$417,416,000, representing a 28.3% increase from HK$325,371,000 in the same period of 2021[6] - Gross profit for the same period was HK$72,984,000, up 9.1% from HK$66,909,000 in 2021[6] - Profit before income tax increased significantly to HK$1,395,000, compared to a loss of HK$8,404,000 in the previous year, marking a 116.6% improvement[6] - Profit for the period was HK$876,000, a turnaround from a loss of HK$9,867,000 in 2021, reflecting a 108.9% increase[6] - Basic and diluted earnings per share rose to HK$0.09, compared to a loss of HK$0.99 per share in the prior year, representing a 109.1% increase[6] - The Group recorded a minor profit after tax of HK$0.9 million for the first half of 2022, recovering from a loss of HK$9.9 million in the corresponding period of 2021[28] - The profit attributable to owners of the Company was HK$0.9 million for the six months ended June 30, 2022, compared to a loss of HK$9.9 million in the same period of 2021[42] - The Group reported a profit of HK$0.9 million for the six months ended 30 June 2022, compared to a loss of HK$9.9 million for the same period in 2021, indicating a significant turnaround[91] Assets and Liabilities - Total assets increased by 23.4% to HK$742,338,000 from HK$601,614,000 as of December 31, 2021[7] - Total liabilities rose by 54.7% to HK$397,590,000 from HK$256,947,000[7] - Net assets remained stable at HK$344,748,000, slightly up from HK$344,667,000[7] - Current assets increased to HK$566,007,000 as of June 30, 2022, up from HK$509,645,000 at the end of 2021[154] - Inventories rose significantly to HK$301,234,000 from HK$243,729,000, indicating a 23.5% increase[154] - The Group had net current assets of HK$268.7 million as of 30 June 2022, slightly up from HK$265.4 million as of 31 December 2021[93] Market and Revenue Breakdown - Revenue from smart chargers increased by 41.2% to HK$79.4 million, while revenue from smart vending systems surged by 401.1% to HK$7.7 million[52] - Revenue from Europe increased by 27.5% to HK$336.7 million, accounting for 80.7% of total revenue[67] - Revenue from North America rose by 5.0% to HK$49.0 million, representing 11.7% of total revenue[67] - Revenue from South-east Asia surged by 257.7% to HK$5.2 million, while revenue from other regions increased by 402.5% to HK$13.6 million[67] - The majority of revenue was derived from European customers, particularly from the UK, Switzerland, Ireland, Denmark, and Sweden[193] Cost and Expenses - Cost of sales increased by 33.3% to HK$344.4 million, driven by rising material costs and higher labor costs[74] - Selling and distribution expenses rose by 3.6% to HK$7.5 million, attributed to increased commissions paid to agents[81] - Administrative expenses decreased by 0.6% to HK$66.4 million, mainly due to reduced consultancy fees[82] - Finance expenses, net increased by 31.2% to HK$3.9 million, influenced by rising interest rates and increased utilization of banking facilities[89] Dividends and Shareholder Information - An interim dividend of HK$0.008 per share was declared for the six months ended 30 June 2022[33] - The Group declared an interim dividend of HK0.8 cents per ordinary share for the six months ended June 30, 2022, compared to nil for the same period in 2021[143] Operational Developments - The Group's order backlogs remain strong compared to June 2021, indicating a positive outlook for future operations[32] - New factory buildings were delivered for rent in June 2022, with plans to adjust production capacity expansion in response to market conditions[32] - The Group has successfully secured the leasing of two factory buildings in the PRC, expected to commence operations in the fourth quarter of 2022[48] - The Group plans to enhance production efficiency and expand production capacity through new factory buildings leased in Guangzhou, which will support high-value and heavy-duty product series[126] Economic and Market Conditions - The ongoing cross-border transportation measures between the PRC and Hong Kong have significantly increased operating costs, impacting net margins[30] - The conflict between Russia and Ukraine has led to increased global commodity prices and financial market volatility, impacting economic recovery[137] - Global economic recovery is anticipated to accelerate in the second half of 2022, although uncertainties remain due to potential new virus variants and geopolitical tensions[137] Financial Management and Risk - The Group's financial risk management program focuses on minimizing potential adverse effects on financial performance due to market unpredictability[167] - The Group maintains sufficient cash and bank balances to manage liquidity risk effectively, with no significant liquidity risk identified by the Directors[167] - The Group's liquidity position is closely monitored to ensure that asset, liability, and commitment structures meet funding requirements[114]

Financial Performance - Revenue for FY2021 was HK$744.1 million, representing a 6.0% increase from HK$701.7 million in FY2020[51]. - Gross profit decreased to HK$139.3 million, down 23.6% from HK$182.5 million in the previous year[51]. - The company reported a net loss of HK$10.6 million for FY2021, compared to a profit of HK$28.9 million in FY2020, marking a 136.6% decline[51]. - Basic and diluted loss per share was HK$1.06, a significant drop from earnings of HK$2.89 per share in the prior year[51]. - The company did not declare any dividends for FY2021, compared to HK$1.20 for final dividends and HK$0.80 for interim dividends in FY2020[51]. - The gross profit margin for FY2021 was notably affected, reflecting the broader impact of supply chain disruptions on profitability[48]. - The Group recorded a 6.0% increase in revenue to HK$744.1 million for FY2021, up from HK$701.7 million in FY2020[133]. - Gross profit margin for FY2021 was 18.7%, a decrease of 7.3 percentage points compared to 2020[125]. - The Group experienced a loss of HK$10.6 million for FY2021, compared to a profit of HK$28.9 million in FY2020[125]. Supply Chain Challenges - Supply chain disruptions due to the COVID-19 pandemic significantly impacted production output, leading to an inability to meet customer demand despite increased backlog orders[52]. - Management implemented measures such as early ordering and stocking materials to mitigate supply chain issues, but challenges remain due to ongoing pandemic effects[53]. - The company is exploring new sources of supply while maintaining strong relationships with existing vendors to address supply chain challenges[53]. - Material costs for production soared significantly during FY2021, impacting gross profit margin[58]. - Freight and transportation costs increased by 36.5% in FY2021 compared to FY2020, despite only minor revenue differences[61]. - Direct labor costs rose by 23.1% in FY2021 compared to FY2020 due to production disruptions and overtime[64]. - The current backlog of orders is at a much higher level than in January 2021, indicating better revenue opportunities for the coming year[74]. - The Group implemented measures such as stock-up of critical components and diversification of material sourcing to secure production[126]. Management and Governance - The company has a strong leadership team with extensive experience across various sectors, including manufacturing, sales, and engineering[81][83][90]. - The Group's strategic planning and development are overseen by experienced executives, ensuring effective management and growth[81]. - The company emphasizes the importance of corporate governance through the establishment of various committees, including Audit and Risk Management[96][102]. - The diverse expertise of the board and management team positions the company well for future growth and strategic initiatives in the electronics sector[101][106]. - The Group's governance structure includes various committees, such as the Risk Management Committee, ensuring comprehensive oversight[90]. Market and Product Development - The company aims to capture global demand for innovative products in the new smart economy[6]. - The product lines include electromechanical products, switch-mode power supplies, smart chargers, and smart vending systems[13]. - Revenue from electro-mechanical products was HK$331.5 million for FY2021, representing a rise of 2.6% compared to 2020[133]. - Revenue from smart vending systems increased by HK$22.7 million in FY2021, following temporary alleviation of supply chain challenges[133]. - The COVID-19 pandemic has created uncertainties and disruptions, particularly with the potential impact of new variants and geopolitical issues[66]. - The Group's order backlog remains strong, reflecting growing demands driven by digital transformation and automation[127]. Employee and Operational Management - Total employee benefit expenses for FY2021 were HK$179.0 million, up from HK$161.5 million in 2020, reflecting a growth of approximately 10.3%[176]. - The Group maintained approximately 1,500 employees as of December 31, 2021, consistent with the previous year[180]. - The management team includes individuals with extensive backgrounds in both local and international markets, which may facilitate market expansion strategies[112][113]. - The marketing division has been under the leadership of Ms. Wu since January 2019, who has over 19 years of experience in procurement, supply chain development, and international marketing[122]. Financial Position and Risk Management - As of 31 December 2021, the Group had net current assets of HK$265.4 million, down from HK$292.3 million in 2020, with cash and bank balances of HK$68.9 million[153]. - The current ratio decreased from 2.8 times as of 31 December 2020 to 2.1 times as of 31 December 2021[153]. - The Group's financial risk management focuses on minimizing potential adverse effects from market unpredictability, including foreign exchange and liquidity risks[154]. - The Group operates mainly in Hong Kong, PRC, Thailand, and Ireland, facing foreign exchange risks primarily with HK$, RMB, THB, and EUR[155]. - The Group's liquidity is maintained through orderly realization of short-term financial assets and receivables, as well as long-term financing[1]. Strategic Focus and Future Outlook - Management plans to focus on growth, efficiency, and technological advancement in the face of ongoing economic challenges[66]. - The company has established clear goals to recover operating performance as soon as possible[76]. - The Group's innovation and development efforts are led by experienced professionals, indicating a strong focus on technological advancement and market competitiveness[110]. - The company is investing in new product development and technological advancements to stay competitive in the electronics market[116]. - The uncertain economic environment and multiple waves of COVID-19 have adversely affected customer demand for Automated Test Equipment (ATE)[198].

Financial Performance - Revenue for the six months ended June 30, 2021, was HK$325,371,000, representing a 15.4% increase compared to HK$281,872,000 for the same period in 2020[5] - Gross profit for the same period was HK$66,909,000, showing a slight decrease of 0.4% from HK$67,157,000 in 2020[5] - Loss before income tax increased significantly to HK$8,404,000, compared to a loss of HK$1,851,000 in the previous year, marking a 354.0% increase[5] - Loss for the period was HK$9,867,000, which is a 316.9% increase from HK$2,367,000 in 2020[5] - Basic and diluted loss per share was HK$0.99, reflecting a 312.5% increase from HK$0.24 in the prior year[5] - The Group reported a loss of HK$9.9 million for the six months ended June 30, 2021, compared to a loss of HK$2.4 million in the same period of 2020, attributed to increased material and labor costs[75] - The Group's gross profit for the six months ended June 30, 2021, was HK$66,909,000, slightly down from HK$67,157,000 in the previous year[145] - The Group's administrative expenses increased to HK$66,782,000 from HK$59,062,000, indicating a rise of approximately 13.0%[145] - The company reported a loss for the period of HK$9,867,000 for the six months ended June 30, 2021[149] Assets and Liabilities - Total assets as of June 30, 2021, were HK$548,378,000, a 0.9% increase from HK$543,717,000 at the end of 2020[6] - Total liabilities increased by 15.5% to HK$206,631,000 from HK$178,912,000[6] - Net assets decreased by 6.3% to HK$341,747,000 compared to HK$364,805,000 at the end of 2020[6] - Net current assets as of June 30, 2021, were HK$268.6 million, down from HK$292.3 million as of December 31, 2020[78] - Cash and bank balances, including restricted deposits, amounted to HK$90.6 million as of June 30, 2021, compared to HK$105.4 million as of December 31, 2020[78] - The current ratio decreased from 2.8 times as of December 31, 2020, to 2.4 times as of June 30, 2021[78] - Current liabilities increased to HK$192,735,000 from HK$158,860,000, reflecting a rise of about 21.3%[147] - Total equity as of June 30, 2021, was HK$341,747,000, down from HK$364,805,000, a decrease of about 6.3%[149] Operational Challenges - The Group faced significant challenges in the first half of 2021 due to the COVID-19 pandemic, which led to prolonged lockdowns affecting customer and supplier interactions, resulting in delays in product and project development[27] - Escalating freight charges and extended delivery times increased the lead time for shipping products, forcing the Group to maintain higher stock levels, which resulted in additional holding costs[28] - A global shortage of components severely impacted production output, leading to increased procurement pressures and longer production lead times to fulfill customer orders[29] - New production facilities in Ireland and Thailand, completed in 2020, have not been fully utilized due to the pandemic, resulting in disproportionate increases in operating expenditures[30] - The ongoing COVID-19 pandemic has adversely affected customer demand for automated test equipment (ATEs), prompting the Group to reassign ATE talents to support existing businesses[111] Market and Business Outlook - The Group anticipates a rebound in the global economy and business activities as vaccination rates increase, which may help recover the global supply chain[37] - There is an accelerated demand for medical and healthcare products, automation, self-service equipment, and smart charging solutions due to heightened awareness of health and flexible work arrangements[37] - The Group is actively exploring new business opportunities in these areas and has made noticeable progress in developing new customers[37] - The Group plans to minimize adverse effects from supply chain disruptions through diversification of material sourcing and use of alternative materials[134] - The Group aims to enhance core competencies to seize business opportunities arising from global economic recovery[135] Employee and Operational Metrics - The total number of employees increased to approximately 1,600 as of June 30, 2021, from approximately 1,500 as of December 31, 2020[100] - Total employee benefit expenses amounted to HK$91.0 million for the six months ended June 30, 2021, compared to HK$72.5 million for the same period in 2020[101] - Employee benefit expenses rose to HK$90,959,000 in 2021, compared to HK$72,457,000 in 2020, reflecting an increase of about 25.6%[198] Cash Flow and Financing - Cash generated from operations decreased significantly to HK$3,114,000 in the six months ended June 30, 2021, compared to HK$51,244,000 in the same period of 2020, representing a decline of approximately 93.9%[151] - Net cash used in operating activities was HK$591,000 for the first half of 2021, contrasting with a net cash generation of HK$45,873,000 in the prior year[151] - The company reported a net cash outflow from investing activities of HK$7,676,000 for the first half of 2021, compared to HK$2,143,000 in the same period of 2020[151] - The company incurred finance costs of HK$2,997,000 in the first half of 2021, slightly lower than HK$3,485,000 in the same period of 2020[151] Risk Management - The Group's financial risk management focuses on minimizing potential adverse effects on financial performance due to market unpredictability[158] - The Group maintains sufficient cash and bank balances to manage liquidity risk, with no significant liquidity risk identified by the Directors[160] - The Group's overall risk management program includes strategies to address market risk, credit risk, and liquidity risk[158]

Financial Performance - Trio Industrial Electronics Group Limited reported a significant increase in revenue, achieving a total of HKD 1.2 billion, representing a growth of 15% compared to the previous year[6]. - Revenue for FY2020 was HK$701.7 million, a decrease of 13.2% from HK$808.6 million in FY2019[28]. - Gross profit for FY2020 was HK$182.5 million, down 4.5% from HK$191.1 million in FY2019[28]. - Profit before income tax increased by 55.1% to HK$37.7 million in FY2020, compared to HK$24.3 million in FY2019[28]. - Profit for the year rose by 29.2% to HK$28.9 million in FY2020, up from HK$22.4 million in FY2019[28]. - Basic earnings per share increased by 29.0% to 2.89 HK cents in FY2020, compared to 2.24 HK cents in FY2019[28]. - The final dividend per share for FY2020 was 1.20 HK cents, an increase from 0.80 HK cents in FY2019[28]. - The Group's profit for the fiscal year 2020 increased by 29.2% compared to fiscal year 2019[52]. - Profit attributable to owners of the Company increased by 29.2% to HK$28.9 million, attributed to strict cost control measures and government grants received[116]. - The Group's annual profit increased by 29.2% from HK$22.4 million in FY2019 to HK$28.9 million in FY2020, with a net profit margin rising from 2.8% to 4.1%[153]. Revenue Sources and Market Performance - The company highlighted a 20% increase in the sales of smart chargers, contributing to the overall revenue growth, with total sales reaching HKD 300 million[6]. - Revenue from electro-mechanical products was HK$323.2 million for FY2020, approximately the same as in FY2019, driven by continued demand for professional beauty and animal grooming products[128]. - Revenue from smart vending systems increased by 83.0% to HK$47.5 million for FY2020 compared to HK$25.9 million in FY2019, primarily due to rising demand for leisure and entertainment products[128]. - Europe and North America accounted for 93.4% of total revenue in FY2020, with Europe generating HK$553.4 million (78.9%) and North America HK$101.6 million (14.5%)[136]. - Revenue from the PRC (including Hong Kong) increased by 42.3% to HK$30.8 million in FY2020, attributed to the rapid recovery of the local market following effective COVID-19 control measures[136]. Cost Management and Efficiency - The company implemented cost reduction programs across all operating divisions starting in April 2020, achieving targets by November 2020[48]. - The management implemented cost reduction programs, successfully curtailing the cost of sales and manufacturing overheads[50]. - Cost of sales decreased by 15.9% to HK$519.2 million in FY2020, attributed to the depreciation of RMB and effective cost control measures[141]. - Selling and distribution expenses decreased by 40.7% to HK$13.1 million in FY2020, due to lower customs duties and travel expenses amid COVID-19 restrictions[141]. - Administrative expenses dropped by 7.9% to HK$121.9 million in FY2020, resulting from various cost control measures and COVID-19 relief measures[144]. - Finance expenses, net decreased by 45.1% to HK$6.5 million in FY2020, due to lower interest expenses and reduced average borrowing[146]. Strategic Initiatives and Future Outlook - Future outlook indicates a projected revenue growth of 10% for the next fiscal year, driven by expanding product lines and market demand[6]. - The company plans to invest HKD 50 million in R&D for new product development, focusing on renewable energy solutions and smart technologies[6]. - Market expansion efforts include entering the Southeast Asian market, with an expected revenue contribution of HKD 100 million in the first year[6]. - The company is exploring strategic acquisitions to enhance its product offerings and market reach, targeting potential firms in the electronics sector[6]. - The Group plans to enhance automation and digitalization at production bases to improve efficiency and capabilities[121]. - The Group aims to invest more resources in product innovation and development to strengthen its competitive edge in the power electronics industry[121]. - The Group will diversify supply chains and customer bases to minimize reliance on a few countries and sectors[118]. Operational Challenges and Responses - The Group faced challenges due to COVID-19 but managed to turn around profits effectively during FY2020[44]. - The Group faced production delays and product delivery issues in the first half of 2020 due to COVID-19 and disruptions in global supply chains[116]. - Customer demands and product launch initiatives were significantly impacted by the COVID-19 pandemic and the uncertain economic environment[116]. - The Group's operations gradually resumed after local restrictions in the PRC were lifted[116]. - The Group experienced temporary disruptions in production outputs and product delivery in Q1 2021 due to COVID-19, adversely affecting financial performance for FY2020[197]. - The Group has implemented various COVID-19 prevention measures, including remote work arrangements and intensified cleaning protocols, to ensure workplace safety[198]. Governance and Leadership - The board is committed to enhancing corporate governance and strategic development to ensure long-term sustainability[70]. - The company has a strong governance structure with independent directors overseeing key committees, ensuring compliance and risk management[94]. - The experience of the board members spans multiple industries, providing diverse insights for strategic decision-making[88]. - The company emphasizes the importance of experienced leadership in navigating market challenges and opportunities[94]. - The management emphasized the importance of effective communication and coordination among employees to improve performance and deliver reasonable returns to shareholders[66]. Employee and Talent Management - The Group recognizes employees as valuable assets and regularly reviews existing staff benefits to ensure compliance with labour laws[179]. - The Group's management expresses gratitude to employees for their dedication and resilience during the ongoing COVID-19 health crisis[199]. - The establishment of the Strategic Talent Center (STC) in Guangzhou has seen nine employees providing value-added services as of December 31, 2020, with plans to continue recruiting necessary talents[188]. Sustainability and Environmental Initiatives - Sustainability initiatives are being prioritized, with a commitment to reducing carbon emissions by 25% over the next five years[6]. - The Group is committed to minimizing environmental impacts from its operational activities[178].

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$281,872,000, a decrease of 29.8% compared to HK$401,437,000 for the same period in 2019[6] - Gross profit for the same period was HK$67,157,000, down 30.5% from HK$96,645,000 in 2019[6] - The company reported a loss before income tax of HK$1,851,000, compared to a profit of HK$17,889,000 in the previous year, marking a decline of 110.4%[6] - Basic and diluted loss per share was HK$0.24, a decrease of 116.3% from earnings of HK$1.47 per share in 2019[6] - The Group recorded a loss attributable to owners of HK$2.4 million for the first half of 2020, compared to a profit of HK$14.7 million for the same period in 2019[63] - The Group reported a loss of HK$2.4 million for the six months ended June 30, 2020, compared to a profit of HK$14.7 million for the same period in 2019, driven by declined sales and additional COVID-19 related costs[112] Assets and Liabilities - Net assets decreased by 2.8% to HK$342,523,000 as of June 30, 2020, from HK$352,491,000 at the end of 2019[7] - Total assets increased slightly by 0.9% to HK$519,971,000 from HK$515,235,000[7] - As of June 30, 2020, the Group had net current assets of HK$275.9 million, slightly down from HK$282.3 million as of December 31, 2019[113] - Cash and bank balances increased from HK$103.9 million as of December 31, 2019, to HK$142.4 million as of June 30, 2020[113] - The current ratio decreased from 3.0 times as of December 31, 2019, to 2.8 times as of June 30, 2020[113] - As of June 30, 2020, the Group had bank borrowings of HK$10.1 million, down from HK$11.9 million as of December 31, 2019[121] Market and Sales - Sales of electro-mechanical products accounted for 43.8% of total sales in 2020, up from 40.9% in 2019[12] - The company plans to focus on market expansion in Europe and North America, which represented 79.0% and 74.6% of sales respectively in 2020[12] - The percentage of sales to the European market increased from 74.6% in the first half of 2019 to 79.0% in 2020, while North America's share decreased due to trade tensions[79] - The Group's sales in North America continued to be affected by tense US-China relations, but there is a growing demand for "new era" products with higher value and profit contribution, such as smart chargers and smart vending systems[170] COVID-19 Impact - The Group's revenue decreased by approximately 30% in the first half of 2020 compared to the first half of 2019 due to the impact of COVID-19[26] - The decline in revenue was primarily due to reduced customer demand caused by the rapid global spread of COVID-19, adverse operating conditions, and disruptions in production facilities and supply chains[70] - Production facilities in Nansha, Guangzhou were halted for nearly two months from January 22, 2020, to mid-March 2020[25] - The ongoing COVID-19 pandemic continues to create a highly uncertain environment for the global economy, including Hong Kong[194] - The COVID-19 pandemic has increased demand for medical and healthcare products, automation, self-service solutions, and smart charging applications, prompting the Group to allocate more resources to sales and marketing[169] Cost Management - The Group has implemented various cost control measures and closely monitored discretionary spending to navigate the challenging business environment[64] - Selling and distribution expenses decreased by 22.8% from HK$7.0 million in the first half of 2019 to HK$5.4 million in 2020, primarily due to travel restrictions during the pandemic[96] - Administrative expenses decreased by 13.4% from HK$68.2 million in the first half of 2019 to HK$59.1 million in 2020, driven by cost control measures[97] - Finance expenses, net dropped by 56.8% from HK$6.2 million in the first half of 2019 to HK$2.7 million in 2020, attributed to lower interest expenses and bank charges[99] Dividends - The company maintained an interim dividend of HK$0.80 per share, unchanged from the previous year[6] - The Board declared an interim dividend of HK$0.8 cents per ordinary share for the six months ended June 30, 2020, consistent with the previous year[196] - A final dividend of HK$0.8 cents per ordinary share for the year ended December 31, 2019, amounting to HK$8 million, was approved by shareholders and paid on July 3, 2020[197] Business Development - The company is exploring new product development and technology enhancements to improve future performance[6] - Business development efforts have continued, including the restructuring of the European team to enhance management between European and Hong Kong operations[42] - The Group has laid solid foundations in the smart charger industry, smart vending systems, and power supplies for the medical and healthcare industries[47] - The management is preparing to regain revenue and profit growth in the near future[41] Employee and Operations - The Group's total employee benefit expenses for the six months ended June 30, 2020, amounted to HK$72.5 million, a decrease from HK$95.6 million for the same period in 2019[161] - The Group's employee count decreased to approximately 1,500 as of June 30, 2020, from approximately 1,700 as of December 31, 2019[160] - The Group has implemented work-from-home policies successfully, leading to cost-cutting ideas and streamlined procedures[40] - Hygiene measures and administrative rules were developed promptly to protect employees and visitors, with no reported COVID-19 infections among staff[38]

Financial Performance - Revenue for the year ended December 31, 2019, was HK$808,599,000, a decrease of 8.7% compared to HK$885,971,000 in 2018[25]. - Gross profit for 2019 was HK$191,053,000, down 12.7% from HK$218,733,000 in 2018[25]. - Profit before income tax decreased by 51.0% to HK$24,311,000 in 2019 from HK$49,639,000 in 2018[25]. - Profit for the year was HK$22,357,000, representing a 47.2% decline compared to HK$42,378,000 in 2018[25]. - Basic earnings per share dropped to 2.24 HK cents in 2019, down 47.2% from 4.24 HK cents in 2018[25]. - The final dividend per share was reduced to 0.80 HK cents in 2019 from 1.80 HK cents in 2018, marking a 55.6% decrease[25]. - The gross profit margin for 2019 was reported at 23.7%[34]. - The net profit margin for 2019 was 2.8%[34]. - Revenue for the year ended December 31, 2019, decreased by 8.7% to HK$808.6 million compared to the same period in 2018[116]. - Profit attributable to owners of the Company recorded a 47.2% decrease to HK$22.4 million for the year[116]. Market and Operational Challenges - The company faced significant challenges due to international relations and macroeconomic factors, leading to a notable drop in sales demand, particularly from the US market[39]. - The company experienced strategic delays and cancellations of projects, particularly in the European market, impacting overall sales performance[39]. - The recent coronavirus outbreak has introduced uncertainties in the global economy, affecting the EMS industry and leading to a temporary decrease in production at the Group's facilities in Guangzhou, China[51]. - The slowdown in revenue was attributed to reduced sales orders from Europe and the US due to trade frictions and a deteriorating global economic environment[129]. - The Group's production facilities in the PRC experienced a temporary decrease in production due to COVID-19 related travel restrictions and extended public holidays[122]. Strategic Initiatives and Future Plans - The company aims to capture global demand for innovative products in the new smart economy[4]. - The Group plans to implement an "Internationalisation" strategy to enhance production flexibility in regions such as Europe and Southeast Asia, potentially eliminating extra tariffs on imports to the US[42]. - An assembly factory is being established in Waterford, Ireland, along with a larger-scale plant in Rayong, Thailand, with a strong focus on cost controls, particularly in material and labor costs[42]. - The Group anticipates significant growth opportunities from the demand for electronic devices supporting 5G ecosystems, such as smart chargers and smart electric vehicles[47]. - The Group plans to focus on improving productivity and cost efficiency while seeking expansion opportunities despite a deteriorating macroeconomic environment[195]. - The Group will continue to invest in sales and marketing to explore new business opportunities despite adverse economic conditions[195]. Corporate Governance and Management - The Company complied with all code provisions in the CG Code during the year ended 31 December 2019[199]. - The Board conducts at least four regular Board meetings in a year to ensure effective governance[200]. - The Board is responsible for formulating strategic objectives and overseeing significant operational and financial matters, including mergers and acquisitions[199]. - Comprehensive information is provided to Directors in a timely manner to facilitate discussion and decision making at Board meetings[200]. - The Company is committed to ensuring a quality board and transparency to shareholders[199]. - The management team is committed to enhancing corporate governance and financial oversight within the Group[106]. Employee and Social Responsibility - The Group recognizes employees as valuable assets and regularly reviews staff benefits for improvement[176]. - The Group is committed to minimizing environmental impacts from its operational activities[176]. - The Group complies with all relevant laws and regulations in Hong Kong and applicable PRC labor laws during FY2019[176]. - Trio Industrial Electronics Group Limited is committed to being socially and environmentally responsible to all stakeholders[4].

Revenue and Profitability - Revenue for the six months ended June 30, 2019, was HK$401,437,000, a slight decrease of 0.2% compared to HK$402,200,000 in the same period of 2018[5] - Gross profit for the same period was HK$96,645,000, down 1.7% from HK$98,308,000 year-on-year[5] - Profit before income tax increased by 21.8% to HK$17,889,000, compared to HK$14,693,000 in the previous year[5] - Profit for the period rose by 41.2% to HK$14,704,000, up from HK$10,415,000 in the prior year[5] - Earnings per share increased by 41.3% to 1.47 HK cents, compared to 1.04 HK cents in the same period last year[5] - The Group's profit for the six months ended June 30, 2019, amounted to HK$14.7 million, representing an increase of 41.2% compared to HK$10.4 million for the same period in 2018[60] - The net profit margin improved from 2.6% for the six months ended June 30, 2018, to 3.7% for the same period in 2019[60] - Profit from operations increased to HK$24,135,000, representing a growth of 20.88% from HK$19,969,000 in the previous year[113] Assets and Liabilities - Total assets decreased by 6.0% to HK$539,140,000 from HK$573,573,000 as of December 31, 2018[6] - Total liabilities decreased by 14.9% to HK$188,714,000 from HK$221,678,000 as of December 31, 2018[6] - As of June 30, 2019, the Group had net current assets of HK$289.3 million, compared to HK$297.6 million as of December 31, 2018[61] - Cash and bank balances (including restricted bank deposits) were HK$124.7 million as of June 30, 2019, down from HK$202.7 million as of December 31, 2018[61] - The Group's current ratio remained stable at 2.7 times as of June 30, 2019, compared to 2.4 times as of December 31, 2018[61] - The gearing ratio was not applicable as of June 30, 2019, due to sufficient working capital from the net proceeds received from the listing[61] - As of June 30, 2019, the Group had bank borrowings of HK$34.9 million, an increase from HK$31.9 million as of December 31, 2018[66] Market Conditions and Business Outlook - The Group experienced a slight slowdown in sales due to international tensions and macroeconomic challenges, particularly the Sino-US trade disputes[23] - Business sentiment for the second half of 2019 is expected to remain prudent, with customers in Europe reducing purchase orders or delaying projects[23] - Revenue experienced a slight decline due to geopolitical tensions and economic uncertainties, particularly from the ongoing US-China trade disputes and Brexit[36] - Despite challenges, the Group sees opportunities in the "New Era" industry and plans to invest in innovation and talent to sustain growth and create long-term shareholder value[36] - The Group's management remains cautiously optimistic about future prospects despite various unfavorable conditions[36] Operational Efficiency and Cost Management - Profit margins improved due to decreased operating costs from the depreciation of the Renminbi against the Hong Kong dollar and lower raw material prices[23] - The Group's operating costs decreased due to the depreciation of RMB and reduced material prices from stabilized supplies of certain components[36] - Administrative expenses decreased by 5.1% from HK$71.9 million for the first half of 2018 to HK$68.2 million for the same period in 2019[60] - Other operating expenses, net dropped by 69.1% from HK$2.3 million for the six months ended June 30, 2018, to HK$0.7 million for the same period in 2019[60] Investments and Expansion - A new production facility is under construction in Nansha, Guangzhou, expected to be completed by mid-2020, which will enhance production capacity to meet existing and new product demands[32] - The Group's strategy includes expanding its overseas business portfolio and diversifying products and regions to enhance recurrent income bases[36] - The Group is expanding its operations in the ATE business segment despite uncertainties from Sino-US trade disputes and slower economic growth in China[90] - The new production base construction began in Q2 2019, expected to enhance production efficiency and capacity for high-value and heavy-duty product series[101] Financial Management and Risk - The Group's liquidity is supported by maintaining sufficient bank balances and committed credit lines to ensure operational continuity[74] - The Group's credit risk is considered low for time deposits and cash held at banks due to high credit ratings of counterparties[69] - The Group's financial risk management program focuses on minimizing potential adverse effects on financial performance due to market unpredictability[156] - The Group's liquidity risk is mitigated through the availability of financing from its own cash resources and banking facilities[158] Employee and Talent Management - The total number of employees remained approximately 1,800 as of June 30, 2019, consistent with the number as of December 31, 2018[80] - The Group is actively recruiting talents at the strategic talent center in Guangzhou, currently employing ten staff members[94] - The Group granted share options to 15 employees for the subscription of 9,100,000 ordinary shares as of June 30, 2019, down from 9,700,000 shares granted to 16 employees as of December 31, 2018[81] Dividends - The Group declared an interim dividend of HK0.8 cents per ordinary share for the six months ended June 30, 2019, compared to nil for the same period in 2018[106] - A final dividend of HK1.8 cents per ordinary share for the year ended December 31, 2018, was approved, amounting to HK$18 million[106]

Trio Industrial Electronics Group Limited 致豐工業電子集團有限公司 (Incorporated in Hong Kong with limited liability) ( 於香港註冊成立的有限公司 ) Stock Code 股份代號 : 1710 2018 Annual Report 年報 CONTENTS 目錄 Corporate Information 2 公司資料 Key Financial Information 4 主要財務資料 Chairman's Statement 6 主席報告 Management Discussion and Analysis 12 管理層討論及分析 Biographical Details of Directors and Senior Management 30 董事及高級管理層履歷 Corporate Governance Report 43 企業管治報告 Report of the Directors 66 董事會報告 Environmental, Social and Governance Report 86 環境、社會 ...