Company Overview - The Group has over 20 years of experience in providing customized interconnect solutions, with manufacturing facilities located in Shanghai, Suzhou, and Huizhou, PRC[5]. - The Group's product offerings include a wide variety of copper and optical fiber cable assemblies and networking cables, tailored to individual customer specifications[5]. - The Group serves established PRC and international customers across various market sectors, including telecommunications and medical equipment[5]. Strategic Goals - The Group aims to become a Tier-1 supplier in the 5G telecommunications, data communication, healthcare, transport, and industrial sectors[8]. - The Group's strategic focus includes expanding its market presence and enhancing product offerings in high-performance interconnect products[8]. - The Group's vision is to be recognized as a "Preferred Supplier" capable of delivering world-class quality products and services consistently[7]. Financial Performance - Revenue for the year ended 31 March 2021 was HK$3,008.0 million, an increase of 8.2% from HK$2,780.2 million in 2020[12]. - Adjusted total profit for the year was HK$230.8 million, reflecting a 32.9% increase from HK$173.6 million in the previous year[12]. - Basic earnings per share (adjusted) rose to 12.5 Hong Kong cents, up 33.0% from 9.4 Hong Kong cents in 2020[12]. - Cash generated from operations decreased significantly by 68.5% to HK$189.8 million from HK$601.9 million[12]. - The gross profit margin improved to 19.3%, up 1.3 percentage points from 18.0% in the previous year[12]. - The net profit margin (adjusted) increased to 7.7%, a rise of 1.5 percentage points from 6.2%[12]. - The return on shareholders' funds surged to 26.6%, an increase of 13.3 percentage points from 13.3%[12]. Acquisitions and Growth - The acquisition of Linkz Cables Limited was completed on 30 June 2020, aimed at expanding the income base and leveraging opportunities in 5G technology[14]. - The acquisition of the Target Group, a leading networking cables manufacturer in China, was completed on June 30, 2020, significantly enlarging the Group's revenue base and diversifying its customer base[24]. - The Group's acquisition of the Target Group allowed for an increased product mix and accelerated development of new products such as high-speed and hybrid cables[36]. Market Demand and Trends - The demand for medical cables is expected to remain strong due to ongoing COVID-19 impacts, positively affecting the Group's financial performance[16]. - The Group anticipates continued growth in the medical equipment sector, driven by ongoing demand for medical cables[54]. - Orders for new 5G products in the telecommunication sector have gradually increased, improving profit margins[36]. Research and Development - The company is focusing on enhancing research and development capabilities to broaden its product mix and maintain sustainable growth[14]. - The Group continues to enhance its research and development capabilities to optimize its product portfolio and capitalize on opportunities presented by 5G technology[23]. - Research and development expenses increased by HK$20.0 million or 29.2% to HK$88.4 million in FY2021, with R&D expenses as a percentage of revenue rising from 2.5% to 2.9%[38]. Corporate Governance - The Group is committed to maintaining high standards of corporate governance and compliance, as outlined in its governance reports[4]. - The Company has adopted the Model Code for securities transactions by Directors, with full compliance reported[165]. - The Company emphasizes good corporate governance as essential for effective management and enhancing shareholder value[163]. Environmental and Sustainability Initiatives - The Group is committed to becoming a benchmark enterprise in "green manufacturing" and digital production, contributing to the construction of 5G+ smart factories in the region[26][28]. - The company has implemented various environmental and sustainability measures, such as using LED lighting and heat recovery systems in its facilities[86]. - The Group is committed to reducing carbon emissions and has implemented various sustainability initiatives, such as using LED lighting and adopting heat recovery systems[83]. Stakeholder Engagement - The company emphasizes stakeholder engagement as a crucial tool for identifying significant environmental, social, and governance (ESG) issues, which aids in developing effective policies for sustainable growth[199]. - Engagement methods with customers include emails, direct dialogues, customer visits, and annual business reviews, ensuring effective communication and support[200]. - The Group's internal stakeholders include employees and management, while external stakeholders encompass customers, suppliers, and community groups[198]. Employee and Management Overview - The Group's final dividend is proposed at HK$1.5 per share, totaling approximately HK$27.6 million, consistent with the previous year's dividend[107]. - The total employee benefit expenses for FY2021 were approximately HK$388.9 million, compared to approximately HK$340.4 million in the previous financial year[78]. - The executive team includes experienced individuals, such as the CEO with extensive experience in the electronics industry since the 1980s[89]. Risk Management - The Company has established risk management procedures aimed at providing reasonable assurance against material errors, losses, or fraud[190]. - Risk identification and assessment are performed or updated annually, with results documented in the Risk Registry for Board and Management reviews[190]. - The Group has a policy on the disclosure of inside information to prevent breaches of statutory disclosure requirements[191].

Financial Performance - Revenue for the six months ended September 30, 2020, was HK$1,441.7 million, a decrease of 5.4% compared to HK$1,523.9 million in 2019[9]. - Gross profit increased by 8.0% to HK$303.8 million from HK$281.4 million in the previous year[9]. - Adjusted total profit for the period rose by 27.5% to HK$134.8 million, compared to HK$105.7 million in 2019[9]. - Basic earnings per share (adjusted) increased by 28.1% to 7.3 Hong Kong cents, up from 5.7 Hong Kong cents in the prior year[9]. - Gross profit margin improved to 21.1%, an increase of 2.6 percentage points from 18.5%[9]. - Adjusted net profit margin reached 9.4%, up from 6.9% in the previous year, reflecting a 2.5 percentage point increase[9]. - EBITDA as a percentage of revenue (adjusted) was 15.2%, compared to 13.0% in the previous year, marking a 2.2 percentage point increase[9]. - Operating profit for the Reporting Period was HK$190.2 million, an increase of HK$24.8 million or 15.0%, with an operating profit margin improved to 13.2%[13]. - Profit for the period was HK$130.7 million, resulting in a net profit margin of 9.1%, compared to 6.6% in the previous year[13]. - Total profit for the Reporting Period was HK$130.7 million, an increase of HK$30.7 million or 30.7% compared to HK$100.0 million for the same period last year, with a net profit margin of 9.4%[22]. Revenue Breakdown - Data centre sector revenue decreased by HK$28.6 million or 7.2% to HK$367.9 million compared to HK$396.5 million in the same period last year[16]. - Telecommunication sector revenue declined by HK$4.3 million or 1.4% to HK$308.7 million from HK$313.0 million year-on-year[17]. - Medical equipment sector revenue increased by HK$28.1 million or 43.0% to HK$93.5 million compared to HK$65.4 million in the same period last year[17]. - Industrial equipment sector revenue rose by HK$11.0 million or 40.9% to HK$37.9 million from HK$26.9 million (restated) year-on-year[17]. - Networking cables revenue decreased by HK$88.4 million or 12.2% to HK$633.7 million compared to HK$722.1 million (restated) in the same period last year[17]. Strategic Initiatives - The company aims to become a Tier-1 supplier in the 5G telecommunications and data communication sectors[5]. - The Group established a "Strategic Business Development Task Force" on 1 September 2020 to formulate long-term business strategies and accelerate market development[11]. - The Group is focused on improving its research and development capabilities and optimizing its product mix to enhance competitiveness[11]. - The Group aims to leverage opportunities presented by next-generation 5G network technology[11]. - The acquisition of Linkz Cables Limited significantly enlarges the Group's revenue base and diversifies its customer base, mitigating customer concentration risk[12]. Operational Efficiency - More than 130 indirect personnel were transferred to the production front line, improving overall production efficiency without increasing headcount[11]. - The Group has hired doctoral consultants to enhance its internal technology and product development capabilities[11]. - The Group's operating expenses decreased, contributing to the increase in operating profit margin[13]. Acquisitions and Investments - The Company completed the acquisition of the networking cables business for HK$781.0 million, with related expenses of approximately HK$4.2 million for the Reporting Period[21]. - The acquisition of the networking cables business for HK$781.0 million is expected to significantly enlarge the revenue base and mitigate customer concentration risk[24]. - The Group plans to invest approximately HK$96.1 million for production capacity expansion, including HK$88.6 million for a new production facility and HK$7.5 million for related machinery[39]. Shareholder Information - The company declared an interim dividend of HK1.5 cents per share, totaling approximately HK$27.6 million[25]. - As of September 30, 2020, shareholders' funds decreased by HK$441.6 million or 38.1% to approximately HK$716.4 million from HK$1,158.0 million as of March 31, 2020, primarily due to the acquisition of networking cables business[27]. - The Group's bank balances and cash decreased by 57.7% to HK$155.2 million as of September 30, 2020, compared to HK$366.9 million as of March 31, 2020, mainly due to the payment for the acquisition and dividend distribution[27]. Taxation and Financial Position - The effective tax rate decreased from 19.9% to 16.7% during the Reporting Period[22]. - The Group's profit before taxation was HK$156.9 million, with an effective tax rate of 16.7%[13]. - The current tax charge included HK$9,384,000 for Hong Kong Profits Tax and HK$16,614,000 for PRC Enterprise Income Tax, totaling HK$25,998,000[138]. Corporate Governance - The Company has adopted a share option scheme on January 24, 2018, and further granted share options to senior management on August 7, 2020[63]. - The Company has fully complied with the Corporate Governance Code during the six months ended September 30, 2020[64]. - The Audit Committee was established on January 24, 2018, with Mr. Chan Chung Shun Eric as the chairman[65]. Risk Management - The Group's management actively monitors foreign exchange risk exposure and employs forward foreign exchange contracts to mitigate potential impacts[30]. - The Company emphasizes the importance of internal control procedures and risk management systems as part of its governance framework[70].

ai159462101137_Time Interconnect 2019-20 cover 10mm output.pdf 1 13/7/2020 下午2:16 Annual Report 2020 匯聚科技有限公司TIME INTERCONNECT TECHNOLOGY LIMITED C017167 年度報告 (於開曼群島註冊成立之有限公司) (Incorporated in the Cayman Islands with limited liability) 股份代號 Stock Code: 1729 年度報告 Annual Report 2020 CONTENTS 目錄 Group Profile 集團簡介 2 Corporate Information 公司資料 3 Financial Highlights 財務摘要 4 Chairman's Statement 主席報告 5 Management Discussion and Analysis 管理層討論及分析 8 董事及高級管理層履歷詳情 25 Biographical Details of The Directors and Senior M ...

匯 聚 科 技 有 限 公 司 TIME Interconnect Technology Limited ( 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ) (Incorporated in the Cayman Islands with limited liability) 中 期 報 告 Interim Report 2019/2020 | --- | --- | --- | |----------|-------|-----------------------------------------------------------------------------------------------------------------| | | | | | CONTENTS | 2 | Corporate Information 公司資料 | | 目錄 | 5 | Financial and Statistical Highlights 財務及統計摘要 | | | 6 | Management Discussion and Analysis 管理層討論及分析 | | | 20 | Othe ...