| (03150) | | | | | --- | --- | --- | --- | | Ａ三星区块链(03171) | 42.140 | 42.140 | 0.52% | | 优品３６０(02360) | 1.910 | 1.930 | 0.52% | | 趣致集团（一百） | 134.200 | 135.600 | 0.52% | | (00917) | | | | | Ａ潘渡招商创新(03056) | 22.660 | 22.700 | 0.44% | | 绿色动力环保(01330) | 5.180 | 5.180 | 0.39% | | Ａ三星亚太元宇宙 | 20.740 | 20.740 | 0.39% | | (03172) | | | | | 中国东方航空股份 | 3.160 | 3.300 | 0.30% | | (00670) | | | | | 太古地产(01972) | 19.600 | 19.840 | 0.30% | | Ａ ＧＸ国指备兑 | 10.500 | 10.610 | 0.28% | | (03416) | | | | | 工银南方国债－Ｒ | 107.100 | 107 ...

Group 1: Stock Market Movements - HSBC Holdings (00005) rose nearly 3% after the English and Welsh High Court confirmed the cancellation of the company's share premium account of $14.8 billion and capital redemption reserve of $1.755 billion [1] - Hong Kong property stocks saw gains, with New World Development (00017) up 7.74%, Hang Lung Properties (00101) up 5.04%, Hysan Development (00012) up 4.18%, and Cheung Kong Property (01113) up 2.16% [1] - Education stocks continued their strong performance, with New Oriental - S (09901) up 7.25%, Excellence Education Group (03978) up 5.37%, Tianli International Holdings (01773) up 2.93%, and Xijiao International Holdings (01765) up 1.65% [2] - Gaming stocks maintained their upward trend, with Melco International Development (00200) up 4.75%, Sands China (01928) up 3.69%, Wynn Macau (01128) up 2.12%, and SJM Holdings (00880) up 1.68% [3] - Semiconductor stocks continued to rise, with Hua Hong Semiconductor (01347) up 4.85%, SMIC (00981) up 2.52%, and Jingmen Semiconductor (02878) up 2.25% [3] Group 2: Company Announcements and Developments - Giant Bio (02367) fell over 5% after acknowledging limitations in its existing quality standards and testing methods [1] - China Electric Power Technology (00085) dropped nearly 13% due to a decline in profit expectations attributed to weak demand in the smart card market [1] - CATL (03750) rose over 3% following the establishment of "Shanghai Zhaofu Intelligent Technology Co., Ltd." with a registered capital of 1.288 billion RMB, focusing on L4 autonomous driving technology [2] - JD Logistics (02618) surged over 9% as it began recruiting full-time delivery riders for its food delivery service [2] - NIO (NIO.US) announced the launch of its BaaS battery rental scheme ahead of schedule, contributing to a rise of over 2% in its stock [5] Group 3: Market Reactions and Future Outlook - Three Flowers Intelligent Control (02050) rose over 5% after announcing expected revenue of approximately 15.044 billion to 17.779 billion RMB for the first half of 2025, representing a year-on-year growth of 10% to 30% [3] - Guotai Junan International (01788) soared over 100% after receiving approval from the Hong Kong Securities and Futures Commission to upgrade its existing securities trading license to provide virtual asset trading services [3] - Dragon Power Technology (02465) rose over 5% due to ongoing positive developments in the solid-state battery industry [3]

智通财经APP讯，HOME CONTROL(01747)及要约人Meta-Wisdom Tech Limited联合公布，于2025年6月 24日，要约人(作为买方)与卖方(作为卖方)订立买卖协议，要约人已有条件同意购买而卖方已有条件同 意出售销售股份，即3.75亿股股份，占本联合公告日期已发行股份总数约74.02%。 销售股份的总代价为2.3亿港元，相当于每股销售股份约0.6133港元，惟可作出以下潜在代价调整：倘于 交割后卖方收到本公司支付的2024年末期股息，则卖方须向要约人支付相等于所收到2024年末期股息的 款项。交易代价乃由要约人与卖方公平磋商并经考虑(其中包括)股份的过往市价及交易流通量以及本公 司的上市地位而达致。 交割已于2025年6月24日落实。 紧接交割前，要约人及要约人一致行动人士并无持有、拥有、控制或指示本公司的任何股份或其他相关 证券(定义见收购守则规则22註释4)。紧随交割后及于本联合公告日期，要约人拥有3.75亿股股份(占已 发行股份总数约74.02%)。因此，要约人须根据收购守则规则26.1就所有已发行股份(要约人已拥有或同 意收购者除外)作出强制性无条件全面要约。 每股要约 ...

Financial Performance - The company's revenue for the year ended December 31, 2024, was approximately $107.5 million, an increase of about 6.4% compared to approximately $101.0 million for the year ended December 31, 2023[7]. - Adjusted net profit for the year ended December 31, 2024, was approximately $6.8 million, compared to approximately $0.9 million for the year ended December 31, 2023[8]. - Revenue for the fiscal year ending December 31, 2024, increased by approximately 6.4% (about $6.4 million) compared to the previous year, driven mainly by revenue growth in Europe and North America[20]. - The adjusted net profit for the fiscal year ending December 31, 2024, is approximately $6.8 million, a significant increase from $0.9 million for the fiscal year ending December 31, 2023, reflecting a growth of about 655.6%[18]. - The gross profit increased from approximately $23.3 million in 2023 to about $30.9 million in 2024, marking a growth of approximately 32.2%[25]. - The pre-tax profit for the fiscal year ending December 31, 2024, is approximately $4.2 million, a turnaround from a pre-tax loss of about $1.6 million in 2023[32]. - The group recorded a profit of approximately $2.5 million for the year ended December 31, 2024, an increase of about $4.1 million compared to a loss of approximately $1.6 million for the year ended December 31, 2023[34]. Revenue Breakdown - Revenue from North America increased by approximately 22.0% to about $42.5 million[9]. - Sales in Europe increased by approximately 32.9% to about $43.3 million[10]. - North America accounted for $42.5 million (39.6%) of total revenue in 2024, up from $34.8 million (34.5%) in 2023, representing a year-over-year increase of 22.0%[22]. - Europe generated $43.3 million (40.3%) in revenue for 2024, a 32.9% increase from $32.6 million (32.3%) in 2023[22]. Operational Developments - The company plans to expand its facilities in Cambodia to mitigate tariff impacts and meet growing demand from customers seeking sources outside of China[11]. - The new digital automation production base in Hunan, China, has commenced mass production and is achieving planned capacity[11]. - The company continues to invest in R&D, particularly in sustainable development, IoT, and other new business sectors[11]. - The "Omni Remotes" brand has been updated to "Omni Devices" to reflect the company's ambitions in new business areas[16]. Cost Management and Expenses - Selling and distribution expenses rose from approximately $6.4 million in 2023 to about $7.3 million in 2024, primarily due to increased distribution costs and professional fees[27]. - The company’s financing costs decreased by approximately $1.3 million, attributed to lower bank loan interest and reduced losses on other receivables[31]. - The impairment loss provision increased by approximately $0.3 million, mainly due to a provision of about $3.2 million for non-listed investments[29]. Cash Flow and Financial Position - As of December 31, 2024, the group's cash and cash equivalents amounted to approximately $19.4 million, indicating a strong financial position[36]. - Net cash generated from operating activities for the year ended December 31, 2024, was approximately $14.2 million, reflecting a cash inflow from operating activities before working capital changes of about $10.6 million[38]. - The net cash used in investing activities for the year ended December 31, 2024, was approximately $0.9 million, primarily related to the purchase of property, plant, and equipment[39]. - The net cash used in financing activities for the year ended December 31, 2024, was approximately $10.4 million, mainly due to repayment of interest-bearing bank loans of about $8.9 million[40]. - The group's current asset net value decreased from approximately $21.9 million as of December 31, 2023, to approximately $14.3 million as of December 31, 2024[41]. - The debt ratio as of December 31, 2024, was approximately 11.2%, down from about 25.1% as of December 31, 2023[46]. Employee and Governance - As of December 31, 2024, the group had 144 employees, with employee benefit expenses amounting to approximately $12.4 million, a slight decrease from $12.6 million in 2023[48]. - The board of directors includes Alain Perrot, who transitioned from executive to non-executive director effective April 1, 2024, and provides strategic planning advice[56]. - The company has a diverse board with members having extensive experience in finance, management, and technology sectors[70]. - The independent directors are responsible for providing oversight and independent opinions to the board, enhancing corporate governance[67]. Corporate Governance - The company has adopted a corporate governance policy that exceeds the requirements of the stock exchange's corporate governance code[171]. - The board believes that the composition of its members provides sufficient independence to safeguard shareholder interests[177]. - The company maintains a high standard of corporate governance practices throughout the year[146]. - The audit committee consists of three independent non-executive directors, with Dr. Chan Sau Kong as the chairman[191]. Future Plans and Investments - The company plans to utilize the proceeds from the initial public offering (IPO) by December 31, 2027, with a focus on operational capital and general corporate purposes[90]. - The company expects to fully utilize the unutilized IPO proceeds by December 31, 2027, to further improve overall business performance[91]. - Home Control plans to expand its product offerings and explore new technologies and partnerships to meet the evolving needs of the home automation market[169]. Risks and Compliance - The company faces various risks, including legal, economic, and political risks in different regions, which could significantly impact sales and profitability[84]. - The company continues to monitor foreign exchange risks and will take prudent measures to mitigate currency exchange risks[52]. - The company has not experienced any significant labor disputes during the reporting period[48].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a net profit of $2,508,000 compared to a net loss of $1,619,000 in the previous year[3]. - Adjusted net profit (non-IFRS measure) for the year was $6,839,000, significantly higher than the previous year's adjusted net profit of $892,000[3]. - Total revenue for the year was $107,452,000, an increase from $101,008,000 in the prior year, representing a growth of approximately 6.4%[4]. - Gross profit increased to $30,851,000 from $23,311,000, reflecting a gross margin improvement[4]. - Basic earnings per share for the year was $0.49, compared to a loss per share of $0.32 in the previous year[4]. - Other comprehensive loss for the year was $146,000, compared to a gain of $73,000 in the previous year, primarily due to foreign exchange differences[4]. - The total income tax expense for the year 2024 is $1,706,000, compared to $56,000 for the year 2023[30]. - Profit before tax for the year ended December 31, 2024, was approximately $4.2 million, compared to a loss of approximately $1.6 million for the year ended December 31, 2023[60]. - Net profit for the year ended December 31, 2024, was approximately $2.5 million, an increase of about $4.1 million compared to a net loss of approximately $1.6 million for the year ended December 31, 2023[62]. - Basic earnings per share for the year ended December 31, 2024, was $0.49, compared to a loss of $0.32 for the year ended December 31, 2023[63]. Revenue Breakdown - North America revenue increased to $42,515,000 in 2024 from $34,836,000 in 2023, representing a growth of 22.5%[15]. - Europe revenue rose to $43,317,000 in 2024 from $32,605,000 in 2023, marking an increase of 33.0%[15]. - Asia revenue decreased to $13,986,000 in 2024 from $22,969,000 in 2023, a decline of 39.0%[15]. - Revenue for the year ending December 31, 2024, increased by approximately 6.4% (about $6.4 million) to $107.452 million, driven by revenue growth in Europe and North America[49]. - North America revenue increased by 22.0% to $42.515 million, while Europe revenue rose by 32.9% to $43.317 million[50]. - Asia revenue decreased by 39.1% to $13.986 million, and Latin America revenue fell by 28.0% to $7.634 million[50]. Expenses and Cost Management - The company incurred restructuring and redundancy costs amounting to $1,102,000, which were excluded from the adjusted net profit calculation[3]. - The company reported a decrease in selling and distribution expenses to $7,297,000 from $6,432,000, indicating improved cost management[4]. - Research and development expenses for 2024 were $5,688,000, slightly down from $5,894,000 in 2023, a decrease of 3.5%[25]. - The cost of goods sold was $63,708,000 in 2024 compared to $64,988,000 in 2023, a reduction of 2.0%[25]. - Administrative expenses for the year ended December 31, 2024, were approximately $12.0 million[56]. - Other expenses decreased from approximately $4.3 million for the year ended December 31, 2023, to approximately $3.6 million for the year ended December 31, 2024, a reduction of about $0.7 million[58]. - Financing costs decreased by approximately $1.3 million, mainly due to a reduction of about $0.7 million in bank loan interest[59]. Assets and Liabilities - Total assets decreased from $70,736 thousand in 2023 to $68,491 thousand in 2024, a decline of approximately 3.5%[5]. - Current liabilities increased from $36,363 thousand in 2023 to $42,808 thousand in 2024, an increase of about 17.8%[5]. - Non-current liabilities dropped significantly from $11,562 thousand in 2023 to $510 thousand in 2024, a decrease of approximately 95.6%[6]. - Cash and cash equivalents rose from $16,872 thousand in 2023 to $19,443 thousand in 2024, an increase of about 15.2%[5]. - The company's net asset value increased from $22,811 thousand in 2023 to $25,173 thousand in 2024, representing a growth of approximately 10.4%[6]. - Trade receivables decreased from $26,251 thousand in 2023 to $23,575 thousand in 2024, a decline of about 10.2%[5]. - Trade payables for the year 2024 are $28,656,000, compared to $27,711,000 in 2023[36]. - Cash and cash equivalents for the year 2024 total $19,443,000, an increase from $16,872,000 in 2023[37]. Corporate Governance and Compliance - The company has adopted a corporate governance policy that is more flexible than the corporate governance code, with all applicable provisions being followed[89]. - The audit committee, consisting of three independent non-executive directors, has reviewed the consolidated financial statements for the year ending December 31, 2024[93]. - PricewaterhouseCoopers LLP confirmed that the financial figures in the announcement are consistent with the draft consolidated financial statements for the year[94]. - The company is committed to enhancing corporate governance practices to improve shareholder returns[91]. - The company will continue to review and improve its corporate governance policies to ensure effective board leadership[91]. - The company has not reported any significant changes in its subsidiary structure[108]. Shareholder Information - The proposed final dividend for the year ended December 31, 2024, is $0.0025 per ordinary share, totaling $1,254,000, pending approval at the upcoming annual general meeting[42]. - The board proposed a final dividend of $0.25 per share for the year ending December 31, 2024, compared to no dividend in 2023[86]. - The final dividend is subject to approval at the upcoming annual general meeting scheduled for June 20, 2025[95]. - The proposed final dividend is expected to be distributed around August 22, 2025[98]. - The company will suspend share transfer registration from June 16 to June 20, 2025, to determine eligibility for attending the annual general meeting and receiving the proposed final dividend[96]. - The annual performance announcement will be published on the Hong Kong Stock Exchange website and the company's website, with all required information available to shareholders[100]. - The company will hold its Annual General Meeting on June 20, 2025[103]. Innovation and Development - The group has over 200 patents and has developed a comprehensive infrared and code database, emphasizing its commitment to innovation[44]. - The company has updated its brand from "Omni Remotes" to "Omni Devices" to reflect its ambitions in new business areas and capabilities in end-to-end design and manufacturing[44]. - The group continues to invest in various remote control technologies, including sustainable development and advanced sensors[44]. - The new digital automation production base in Hunan, China, has commenced mass production as planned[48]. - The company plans to expand its professional sales team with an allocation of HKD 13.8 million, expected to be fully utilized by December 31, 2026[83]. Risks and Challenges - The group continues to monitor foreign exchange risks and plans to take prudent measures to mitigate currency exchange risks[78]. - The group has faced increased credit risk regarding its financial assets, with uncertainty about the timing and likelihood of redemption[41]. - The company has developed a mitigation plan to address potential impacts from global political changes on its business operations[48]. - The company has not established any hedging agreements for foreign exchange risks[78].

INTERIM REPORT 2024 中期報告 HOME CONTROL INTERNATIONAL LIMITED （於開曼群島註冊成立的有限公司） 股份代號 : 1747HOME CONTROL INTERNATIONAL LIMITED 2024 中期報告 目錄 | --- | --- | |-------|--------------------------| | | | | 2 | 公司資料 | | 4 | 管理層討論及分析 | | 16 | 企業管治及其他資料 | | 25 | 中期財務資料的審閱報告 | | 27 | 中期簡明綜合全面收益表 | | 28 | 中期簡明綜合財務狀況表 | | 30 | 中期簡明綜合權益變動表 | | 31 | 中期簡明綜合現金流量表 | | 33 | 中期簡明綜合財務資料附註 | 公司資料 | --- | --- | |---------------------------------------------------------|----------------------------------------| | | | | 董事會 | 註冊辦事處 | | ...

Financial Performance - The group reported a net profit of $3,208,000 for the six months ended June 30, 2024, compared to a net loss of $1,489,000 for the same period in 2023[1]. - Adjusted net profit (non-IFRS measure) for the current period was $3,753,000, significantly up from $544,000 in the prior year, reflecting a substantial improvement in financial performance[1]. - Revenue for the six months ended June 30, 2024, was $52,107,000, an increase from $50,246,000 in the same period of 2023, indicating a growth of approximately 3.7%[3]. - Gross profit increased to $15,439,000, representing a gross margin of 29.6%, compared to $11,293,000 and a margin of 22.4% in the previous year[3]. - Basic earnings per share for the current period was 0.63 cents, compared to a loss of 0.30 cents per share in the same period last year[3]. - The group recorded a pre-tax profit of approximately $4.1 million for the six months ended June 30, 2024, compared to a pre-tax loss of approximately $1.8 million for the same period in 2023[49]. - Net profit for the six months ended June 30, 2024, was approximately $3.2 million, an increase of about $4.7 million compared to a net loss of approximately $1.5 million for the same period in 2023[51]. Revenue Breakdown - North America generated $21,713 thousand in revenue for the six months ended June 30, 2024, up from $14,013 thousand in 2023, reflecting a significant increase of 54.7%[10]. - Europe reported revenue of $20,259 thousand for the six months ended June 30, 2024, compared to $14,907 thousand in 2023, marking an increase of 35.5%[10]. - Revenue from product sales was $52,046,000 for the six months ended June 30, 2024, compared to $50,134,000 in 2023, reflecting a year-over-year increase of 3.8%[14]. - Customer contract revenue for the six months ended June 30, 2024, was $52,107,000, an increase from $50,246,000 in the same period of 2023, representing a growth of 3.4%[13]. Cost Management - The group optimized its cost structure, excluding non-recurring restructuring and redundancy costs, which positively impacted adjusted net profit[2]. - The cost of goods sold for the six months ended June 30, 2024, was $30,612,000, down from $32,176,000 in 2023, indicating a decrease of 4.9%[16]. - Research and development expenses for the six months ended June 30, 2024, amounted to $2,866,000, a decrease from $3,053,000 in 2023, representing a reduction of 6.1%[16]. - Sales and distribution expenses increased from approximately $3.0 million for the six months ended June 30, 2023, to approximately $3.6 million for the same period in 2024, mainly due to increased distribution and professional fees[45]. - Administrative expenses decreased from approximately $6.1 million for the six months ended June 30, 2023, to approximately $5.9 million for the same period in 2024, primarily due to reduced personnel costs[46]. Liquidity and Assets - Cash and cash equivalents rose to $19,423,000 as of June 30, 2024, compared to $16,872,000 at the end of 2023, indicating improved liquidity[4]. - Total assets decreased slightly to $69,699,000 from $70,736,000 at the end of 2023, primarily due to changes in current assets[4]. - Current liabilities increased to $43,434,000 from $36,363,000, reflecting higher trade payables and bank loans[4]. - The group’s equity increased to $25,948,000 as of June 30, 2024, up from $22,811,000 at the end of 2023, indicating a strengthening balance sheet[4]. Tax and Provisions - The income tax expense for Singapore for the six months ended June 30, 2024, was $761,000, significantly higher than $87,000 in 2023[21]. - The income tax expense for the United States for the six months ended June 30, 2024, was $96,000, slightly up from $85,000 in 2023[21]. - The inventory provision for the six months ended June 30, 2024, was $459,000, compared to $98,000 in 2023, indicating a significant increase of 367.3%[16]. - The company had a deferred tax expense of $101,000 for the period, with total tax expense amounting to $898,000[22]. Corporate Governance - The company has adopted corporate governance policies that are not less stringent than the corporate governance code, ensuring transparency and accountability to shareholders[70]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim financial results for the six months ending June 30, 2024[74]. - The company believes that effective corporate governance is essential for creating greater value for shareholders[72]. - The board of directors will continue to review and improve the corporate governance practices to enhance shareholder returns[72]. - Alain Perrot served as both Chairman and CEO until April 1, 2024, after which he stepped down and was succeeded by Xiao Guoxiong as Executive Director and CEO, ensuring compliance with governance code[71]. Operational Developments - The new digital automation production base in Hunan, China, has commenced mass production as planned, contributing to the group's operational capabilities[39]. - The group plans to continue cost management measures and invest in research and development to diversify its business areas and improve supply chain efficiency[39]. - The company continues to invest in various remote control technologies, including sustainable development and advanced sensors[36]. Employee and Labor Relations - The group has 146 employees as of June 30, 2024, down from 150 employees as of December 31, 2023[66]. - Employee benefits expenses for the six months ended June 30, 2024, amounted to approximately $6.1 million[66]. - No significant labor disputes occurred during the reporting period[66]. Foreign Exchange and Risk Management - The group continues to monitor foreign exchange risks and plans to take prudent measures to mitigate currency exchange risks[65]. - The group’s functional currency is the US dollar, and sales are primarily denominated in US dollars[65]. - Fluctuations in exchange rates may adversely affect the group's financing costs, sales, and product profit margins[65]. - The group has not established any hedging agreements to offset foreign exchange risks[65].

Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately $101.0 million, a decrease of about 20.2% compared to approximately $126.6 million for the same period in 2022[7]. - Adjusted net profit (non-IFRS measure) for the year was approximately $0.9 million, down from approximately $4.6 million in the previous year[8]. - Revenue for the year ended December 31, 2023, decreased by approximately 20.2% (about $25.6 million) to $101.0 million, primarily due to declines in Europe, North America, and Latin America[21]. - The adjusted net profit for the year ended December 31, 2023, was approximately $0.9 million, a decrease of about 80.4% compared to approximately $4.6 million for the year ended December 31, 2022[19]. - The company recorded a net loss of approximately $1.6 million for the year ended December 31, 2023, a decrease of about $4.6 million compared to a net profit of approximately $6.2 million for the year ended December 31, 2022[37]. - Basic and diluted loss per share for the year ended December 31, 2023, was (0.32) cents, compared to earnings of 0.91 cents for the year ended December 31, 2022[38]. Revenue Breakdown - Revenue from North America decreased by approximately 8.4% to about $34.8 million[9]. - Sales in Europe decreased by approximately 30.4% to about $32.6 million[10]. - Revenue from Latin America decreased by approximately 45.1% to about $10.6 million[11]. - North America accounted for 34.5% of total revenue in 2023, down from 30.1% in 2022, with a revenue decrease of $3.2 million (8.4%)[24]. - Europe saw a significant revenue decline of 30.4%, dropping from $46.8 million in 2022 to $32.6 million in 2023[24]. Operational Highlights - The new digital automation production facility in Hunan, China, commenced scale production as planned, enhancing operational excellence[12]. - The company is expanding its sales team to explore multiple business-related areas while improving its existing supply chain[12]. - Continued investment in R&D, particularly in sustainable development, IoT, and other new business sectors[12]. - The company has over 200 invention patents and one of the most comprehensive infrared and code databases in the world[16]. - The new Simple Setup Hybrid with cloud functionality has been launched in collaboration with a major pan-European operator, generating meaningful on-site data to enhance user experience[16]. Cost and Expenses - The cost of sales for the year ended December 31, 2023, was approximately $77.7 million, representing about 76.9% of total revenue, compared to $98.9 million (78.1%) in 2022[25]. - Gross profit decreased from approximately $27.6 million in 2022 to about $23.3 million in 2023, a decline of approximately 15.6%[27]. - Other income fell from approximately $0.3 million in 2022 to about $0.2 million in 2023, primarily due to a reduction in government subsidies[28]. - Selling and distribution expenses decreased from approximately $7.2 million in 2022 to about $6.4 million in 2023, mainly due to lower distribution costs[29]. Cash Flow and Financial Position - As of December 31, 2023, the company's cash and cash equivalents amounted to approximately $16.9 million, indicating a stable financial position[39]. - Net cash generated from operating activities for the year ended December 31, 2023, was approximately $14.1 million, significantly up from $1.4 million in the previous year[41]. - The company reported a net cash outflow from investing activities of approximately $0.7 million, primarily due to the purchase of property, plant, and equipment[43]. - Net cash used in financing activities was approximately $11.9 million, mainly due to repayment of interest-bearing bank loans totaling about $17.1 million[45]. - The company's current assets decreased from approximately $24.9 million as of December 31, 2022, to approximately $21.9 million as of December 31, 2023[46]. Debt and Financing - The debt ratio as of December 31, 2023, was approximately 25.1%, a decrease from 35.7% as of December 31, 2022[52]. - Interest-bearing bank loans amounted to approximately $15.0 million as of December 31, 2023, down from $24.5 million in the previous year[53]. - The group aims to diversify its borrowing relationships and replace existing financing with new credit facilities that have lower borrowing costs and more flexible terms[181]. Employee and Management - As of December 31, 2023, the group had 150 employees, a decrease from 178 employees as of December 31, 2022[54]. - Employee benefits expenses for the year ended December 31, 2023, were approximately $12.6 million, compared to $12.9 million in 2022[54]. - The company recognizes employees as one of its most valuable assets and promotes a diverse and inclusive work environment[90]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and has not reported any serious violations of applicable laws and regulations during the year[178]. - The board actively adheres to corporate governance principles to ensure transparency and accountability in operations[193]. - The company has a balanced board composition that is suitable for its business[141]. Shareholder Information - The company has issued a total of 506,650,000 shares as of December 31, 2023, with 2,508,171 shares granted under the share incentive plan[118]. - Major shareholders include Morgan Stanley and its affiliates, collectively holding 375,000,000 shares, which accounts for 74.02% of the issued share capital[157]. - Sales to the top five customers accounted for approximately 49.8% of the total sales for the year, with the largest customer contributing about 18.3%[162]. Future Plans and Investments - The company plans to utilize the IPO proceeds for strategic investments or acquisitions in OTT systems and smart home security products, with an allocation of HKD 23.01 million (USD 2.93 million)[100]. - The company aims to strengthen its supply chain management and investment outside of China with an allocation of HKD 6.57 million (USD 0.84 million)[100]. - The company expects to fully utilize the unallocated IPO proceeds by 2024[98].

Financial Performance - The company reported a net loss of $1,619,000 for the year ending December 31, 2023, compared to a profit of $4,575,000 in 2022[4]. - Adjusted net profit (non-IFRS measure) for 2023 was $892,000, down from $4,587,000 in 2022, reflecting a significant decline[4]. - Total revenue for 2023 was $101,008,000, a decrease of 20.2% from $126,560,000 in 2022[5]. - Gross profit for the year was $23,311,000, down from $27,618,000 in the previous year, indicating a decline of 15.5%[5]. - Basic loss per share for the year was $0.32, compared to earnings per share of $0.91 in 2022[5]. - The company reported a decrease in administrative expenses to $12,026,000 in 2023 from $10,869,000 in 2022, reflecting a rise of 10.6%[5]. - The company incurred restructuring and redundancy costs of $2,511,000 in 2023, which impacted the adjusted net profit[4]. - The company reported a total tax expense of $56,000 for 2023, significantly lower than $1,560,000 in 2022[25]. - The company recorded a pre-tax loss of approximately $1.6 million for 2023, compared to a pre-tax profit of about $6.1 million in 2022[61]. - Net loss for the year ended December 31, 2023, was approximately $1.6 million, a decrease of about $4.6 million from a net profit of $6.2 million in 2022[63]. Revenue Breakdown - Revenue from North America in 2023 was $34,836,000, down 8.5% from $38,044,000 in 2022[18]. - Revenue from Europe decreased by 30.4% to $32,605,000 in 2023 from $46,813,000 in 2022[18]. - Major customer 1 contributed $18,435,000 to revenue in 2023, down from $26,092,000 in 2022[20]. - North America revenue decreased by 8.4% to $34.8 million, while Europe saw a significant decline of 30.4% to $32.6 million[51]. Assets and Liabilities - Total assets decreased from $80,367 thousand in 2022 to $70,736 thousand in 2023, representing a decline of approximately 12.9%[6]. - Current assets decreased from $63,892 thousand in 2022 to $58,227 thousand in 2023, a reduction of about 8.9%[6]. - Non-current liabilities decreased significantly from $17,053 thousand in 2022 to $11,562 thousand in 2023, a decrease of approximately 32.2%[7]. - Total equity decreased from $24,304 thousand in 2022 to $22,811 thousand in 2023, reflecting a decline of about 6.1%[7]. - Current liabilities decreased from $39,010 thousand in 2022 to $36,363 thousand in 2023, a reduction of approximately 6.8%[6]. Cash Flow and Investments - Operating cash flow for the year ended December 31, 2023, was $1.4 million, a significant decrease from $14.1 million in 2022[67]. - The net cash used in investing activities was approximately $0.7 million, primarily due to the purchase of property, plant, and equipment amounting to about $0.8 million[70]. - The net cash used in financing activities was approximately $11.9 million, mainly due to repayment of interest-bearing bank loans of about $17.1 million[71]. - The net current assets decreased from approximately $24.9 million as of December 31, 2022, to about $21.9 million as of December 31, 2023, primarily due to a decrease in inventory and trade receivables[72]. - Cash and cash equivalents increased from $15,317 thousand in 2022 to $16,872 thousand in 2023, an increase of approximately 10.2%[6]. Corporate Governance - The board of directors is committed to maintaining good corporate governance practices to enhance transparency and accountability[94]. - The company believes that effective corporate governance is essential for creating greater value for shareholders[94]. - The board structure includes a separation of roles between the chairman and the CEO, although currently, Alain Perrot holds both positions[95]. - The company has two independent non-executive directors following the resignation of Edmond Ming Siang JAUW on February 3, 2023, which does not comply with the listing rules requiring at least three independent non-executive directors[97]. - The audit committee is now composed of three independent non-executive directors, including Dr. Chen Shou Kang (Chairman), Mr. Werner Peter VAN ECK, and Ms. Keet Yee LAI, after the appointment of Ms. Keet Yee LAI on February 10, 2023[100]. Strategic Plans and Challenges - The company plans to optimize its cost structure to maintain competitiveness in the current business environment[4]. - The company plans to continue investing in research and development, expanding its sales team, and improving its supply chain to support existing and upcoming diversification efforts[48]. - The company is facing challenges due to global economic conditions, including inflation and high interest rates, which may hinder customer project recovery and consumer purchasing[47]. - The company has implemented cost management measures, including automation, to safeguard shareholder value amid macroeconomic challenges[46]. Employee and Shareholder Information - As of December 31, 2023, the group had 150 employees, a decrease from 178 employees as of December 31, 2022[83]. - Employee benefits expenses for the year amounted to approximately $12.6 million, compared to $12.9 million in 2022, reflecting a decrease of about 2.3%[83]. - A total of 5,016,337 shares were granted under the share incentive plan, representing approximately 1.00% of the total issued shares as of the announcement date[85]. - The company has not proposed any final dividends for the fiscal year ending December 31, 2023[92]. Initial Public Offering (IPO) and Use of Proceeds - The net proceeds from the initial public offering were approximately HKD 84.93 million (equivalent to about $10.83 million)[87]. - The company plans to fully utilize the proceeds from the initial public offering (IPO) by 2024, with a total of HKD 84.93 million allocated for various strategic investments[89]. - A total of HKD 23.01 million is earmarked for strategic investments or acquisitions in the OTT system and smart home security products[89]. - HKD 21.12 million is allocated for repaying bank loans, with HKD 14.27 million designated for R&D and development of the OTT segment[89]. - The company aims to expand its professional sales team with an investment of HKD 13.8 million to support business growth[89]. - HKD 6.57 million is planned for expanding the supply chain outside of China to enhance supply chain management[89].

Financial Performance - For the six months ended June 30, 2023, the company's revenue was approximately $50.2 million, a decrease of about 22.7% compared to approximately $65.0 million for the same period in 2022[11]. - The adjusted net profit for the six months ended June 30, 2023, was approximately $0.5 million, down from approximately $3.2 million for the same period in 2022[11]. - The company's gross profit for the six months ended June 30, 2023, was approximately $11.3 million, down from $14.6 million for the same period in 2022[20]. - The pre-tax loss for the six months ended June 30, 2023, was approximately $1.8 million, a decrease of about $6.0 million compared to a pre-tax profit of approximately $4.2 million for the same period in 2022[27]. - The net loss after tax for the six months ended June 30, 2023, was approximately $1.5 million, compared to a net profit of approximately $3.2 million for the same period in 2022[29]. - Basic and diluted loss per share for the six months ended June 30, 2023, was $0.30[30]. - The company reported a net loss of $1,489,000 for the six months ended June 30, 2023, compared to a profit of $3,193,000 in the same period of 2022[109]. - The company incurred a loss before tax of $1,833,000, compared to a profit of $4,174,000 in the prior year[105]. Revenue Breakdown - Revenue from North America decreased by approximately $3.6 million (20.6%), while revenue from Europe decreased by approximately $12.0 million (44.6%); however, revenue from Asia increased by approximately $2.4 million (22.1%)[14]. - Revenue from North America was $14,013 thousand, down from $17,652 thousand in the previous year, representing a decline of 20.0%[130]. - Revenue from Europe decreased significantly to $14,907 thousand from $26,931 thousand, a drop of 44.5%[130]. - Revenue from Asia increased to $13,251 thousand, up from $10,850 thousand, marking a growth of 22.1%[130]. - Revenue from Latin America was $8,075 thousand, down from $9,565 thousand, a decrease of 15.6%[130]. - Major customer 1 contributed $12,267 thousand in revenue, compared to $6,963 thousand in the previous year, indicating a growth of 76.5%[133]. Expenses and Cost Management - The sales cost for the six months ended June 30, 2023, was approximately $39.0 million, accounting for about 77.5% of total revenue, consistent with the previous year[18]. - Sales and distribution expenses for the six months ended June 30, 2023, decreased by approximately $1.0 million compared to the same period in 2022, primarily due to a reduction in distribution costs[22]. - Administrative expenses increased from approximately $5.0 million for the six months ended June 30, 2022, to approximately $6.1 million for the same period in 2023, mainly due to the absence of a reversal of IT service accruals that occurred in the prior period[24]. - Other expenses rose from approximately $1.1 million for the six months ended June 30, 2022, to approximately $3.2 million for the same period in 2023, primarily due to an increase in restructuring and severance costs of about $2.0 million[25]. - The company is focused on cost management through automation to safeguard shareholder value amid macroeconomic challenges[11]. Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2023, were approximately $12.8 million, indicating a decrease in cash flow[35]. - Net cash generated from operating activities for the six months ended June 30, 2023, was approximately $6.0 million, primarily due to a decrease in inventory of about $3.2 million[37]. - Net cash used in investing activities was approximately $0.5 million, mainly related to the purchase of property, plant, and equipment[38]. - Net cash used in financing activities was approximately $8.0 million, primarily due to the repayment of interest-bearing bank loans of about $6.8 million[39]. - As of June 30, 2023, the group's bank loans amounted to approximately $17.8 million, down from approximately $24.5 million as of December 31, 2022[43]. - The debt ratio as of June 30, 2023, was approximately 28.9%, a decrease from approximately 35.7% as of December 31, 2022[46]. - The company reported a financing cost of $923,000 for the period, an increase from $448,000 in the previous year[105]. Research and Development - The company continues to invest in research and development, expanding its sales team to explore multiple business-related areas and improve its existing supply chain[13]. - Research and development expenses rose to $3,053,000, up from $2,711,000 in the previous year, with employee benefits accounting for $2,220,000[143]. Shareholder Information - The board of directors does not recommend declaring any interim dividend for the six months ending June 30, 2023[67]. - The company has not provided any financial assistance or guarantees to associated companies that require disclosure as of June 30, 2023[78]. - The share incentive plan allows for a maximum issuance of 7,524,504 shares, approximately 1.50% of the total shares issued as of the adoption date[83]. - A total of 5,016,337 incentive shares were granted, representing about 1.00% of the total shares issued at the grant date[84]. - As of June 30, 2023, no incentive shares have vested and been issued[84]. - The company has not violated any loan agreements that would significantly impact its business operations as of June 30, 2023[77]. Corporate Governance - Keet Yee Lai was appointed as an independent non-executive director effective February 10, 2023[91]. - The company has not disclosed any additional information required under Listing Rule 13.51B(1) regarding director changes[89]. - As of June 30, 2023, there are no other interests or short positions held by directors or senior management in the company's shares or related securities[93].