Financial Performance - The company's total revenue for 2020 was approximately $134 million, a decrease of about 25.4% compared to approximately $180 million in 2019[24]. - Gross profit for 2020 was approximately $27 million[24]. - Revenue from North America decreased by approximately 37.4% to about $45.4 million[25]. - Sales in Europe increased by approximately 9.2% to about $38.4 million[26]. - Revenue from Asia decreased by approximately 34.7% to about $36.5 million, partly due to the strategy of discontinuing low-margin products[27]. - Revenue from Latin America decreased by approximately 15.1% to about $13.9 million[28]. - The company's net revenue increased from approximately $2.7 million for the year ended December 31, 2019, to approximately $3.7 million for the year ended December 31, 2020, reflecting a significant improvement in profitability[35]. - Gross margin improved from approximately 19.5% for the year ended December 31, 2019, to approximately 20.3% for the year ended December 31, 2020[35]. - Total revenue for the year ended December 31, 2020, decreased by approximately 25.4% (about $45.8 million) compared to the year ended December 31, 2019[37]. - The company's sales cost for the year ended December 31, 2020, was approximately $107.0 million, accounting for about 79.7% of total revenue[41]. - The company recorded a pre-tax profit of approximately $4.7 million for the year ended December 31, 2020, compared to approximately $4.6 million for the year ended December 31, 2019[51]. - The net profit after tax for the year ended December 31, 2020, was approximately $3.7 million, an increase of about $1.0 million from approximately $2.7 million for the year ended December 31, 2019[53]. Strategic Plans - The company plans to continue a dual strategy in 2021, focusing on both core pay-TV business recovery and expansion into new markets[29]. - The company will invest in opportunities in HVAC and electric vehicle sectors[29]. - The next generation of the Simple Setup Hybrid solution is expected to launch in early 2021 in collaboration with a major operator[32]. - The company has initiated a vertical market plan and successfully launched a new COVID-19 contact tracing system in India and the United States[36]. - The company plans to continue investing in research and development, expanding the sales team, and improving the existing supply chain[36]. Financial Position - As of December 31, 2020, the company's cash and cash equivalents were approximately $22.6 million, indicating a strong financial position[55]. - The net cash flow from operating activities for the year ended December 31, 2020, was approximately $10.74 million, a decrease from $13.51 million in 2019[57]. - The net cash used in investing activities was approximately $1.45 million, primarily due to the purchase of property, plant, and equipment[60]. - The net cash used in financing activities amounted to approximately $15.61 million, mainly due to repayment of interest-bearing bank loans of about $18.0 million[61]. - The cash and cash equivalents decreased by approximately $6.33 million, ending the year at $22.61 million compared to $28.77 million in 2019[57]. - The current asset net value decreased from approximately $20.9 million as of December 31, 2019, to approximately $16.9 million as of December 31, 2020[62]. - The debt ratio decreased from approximately 39.7% as of December 31, 2019, to approximately 38.7% as of December 31, 2020[75]. - The company has available bank financing of $45 million, of which $24 million has been drawn down[72]. - The company does not have any off-balance sheet transactions as of the report date[79]. Governance and Management - The company believes the current composition of the board is balanced and suitable for its business[155]. - The board consists of executive, non-executive, and independent non-executive directors, ensuring a diverse governance structure[153]. - The company has a global finance director responsible for overseeing compliance with financial practices and monitoring cash flow[98]. - The company has a dedicated sales team for Europe and Latin America, led by a sales department head with 26 years of experience[96]. - The company has a strong focus on research and development, particularly in Singapore, to drive innovation and product marketing[96]. Risks and Challenges - The company has faced significant business risks due to the global impact of COVID-19, which may adversely affect supply, sales, and profitability[115]. - The company is at risk of significant adverse effects if it fails to successfully develop and market new products in a timely manner[115]. - The company has experienced a substantial increase in component prices, which could negatively impact its business and financial condition[116]. - Goodwill impairment may adversely affect the company's financial condition and operating performance[117]. Shareholder Information - The company proposed a final dividend of USD 0.0037 per ordinary share, equivalent to approximately HKD 0.0288 per share, subject to shareholder approval[126]. - The company has a distributable reserve of approximately USD 9,552,430 as of December 31, 2020, unchanged from the previous year[132]. - The company adopted a share option plan on May 1, 2015, granting options to employees and directors to enhance retention and incentivize performance, with a total of 40,841,584 shares available for purchase[142]. - As of December 31, 2020, 16,336,632 shares of the granted options have vested, representing approximately 8.14% of the total shares issued as of that date[142]. - The exercise price for the options granted under the plan is approximately $0.0877 per share, equivalent to about HKD 0.689 per share[142]. - In the fiscal year, a total of 14,702,969 options were exercised by management, with no cancellations or modifications to the plan[145]. - The company adopted a share award plan on August 20, 2020, with a maximum of 5,016,337 shares to be awarded, representing about 1.00% of the total shares issued at the time[148]. - On October 5, 2020, the board resolved to grant 5,016,337 award shares, with 2,382,760 shares allocated to connected participants and 2,633,577 shares to non-connected participants[148]. - As of December 31, 2020, all 5,016,337 awarded shares under the share award plan remain unvested[152]. Compliance and Legal Matters - The consolidated financial statements for the year ended December 31, 2020, were audited by Ernst & Young[196]. - There were no related party transactions that required disclosure under the listing rules, as they were fully exempted[177]. - The company did not engage in any significant litigation or arbitration during the year[184]. - The company did not know of any significant non-compliance with environmental laws and regulations during the year[192]. - The company has maintained directors and officers liability insurance to provide appropriate protection against legal claims[166].

Financial Performance - Revenue for the first half of 2020 was $69.8 million, a decrease of 14.2% compared to $81.4 million in the same period of 2019[35] - Reported net profit turned from a loss of $1.2 million in the first half of 2019 to a profit of $1.5 million in the first half of 2020[35] - Adjusted EBITDA for the first half of 2020 was $5.3 million, compared to $4.9 million in the same period of 2019[35] - The group's revenue for the six months ended June 30, 2020, decreased by approximately 14.2% compared to the same period in 2019, primarily due to COVID-19[44] - The group's gross profit for the six months ended June 30, 2020, was approximately $14.2 million, consistent with the gross profit of $14.2 million for the same period in 2019[52] - The group recorded a profit before tax of approximately $2.0 million for the six months ended June 30, 2020, compared to a loss of approximately $0.8 million for the same period in 2019, an increase of approximately $2.8 million[59] - The group reported a net profit of approximately $1.5 million for the six months ended June 30, 2020, compared to a net loss of approximately $1.2 million for the same period in 2019[61] - Basic and diluted earnings per share for the period were 0.30 cents, compared to a loss of 0.29 cents per share in the previous year[130] - The company reported a profit attributable to equity holders of $1,503,000 for the six months ended June 30, 2020, compared to a loss of $1,210,000 for the same period in 2019[193] Cash Flow and Financial Position - Operating cash flow significantly improved due to enhanced profitability in the first half of 2020 compared to the same period in 2019[40] - The total cash flow improved during the first half of 2020, providing resilience for continued operations during challenging times[42] - As of June 30, 2020, the group had cash and cash equivalents of approximately $22.4 million, indicating a strong financial position[63] - The net cash inflow from operating activities for the six months ended June 30, 2020, was approximately $3.1 million, a significant increase from $521,000 for the same period in 2019[66] - The total cash and cash equivalents at the end of the period was $22.4 million, compared to $17.8 million at the end of June 30, 2019[65] - The company’s cash and cash equivalents at the end of the period were 22,433 thousand USD, an increase from 17,774 thousand USD at the end of the previous year[143] - The cash balance in US dollars decreased to $18,143,000 as of June 30, 2020, from $23,805,000 as of December 31, 2019, a decline of 23.9%[175] - The company’s total financial liabilities as of June 30, 2020, were $73,829,000, down from $86,331,000 as of December 31, 2019, indicating a reduction of approximately 14.5%[200] Expenses and Cost Management - The group's administrative expenses decreased by approximately 24.1% to about $6.3 million for the six months ended June 30, 2020, primarily due to a reduction in listing expenses[55] - The total sales cost for the six months ended June 30, 2020, was approximately $55.6 million, accounting for about 79.6% of total revenue[48] - The company incurred a loss of 1,462 thousand USD from the purchase of property, plant, and equipment during the period[143] - Research and development expenses for the period were $2,994 thousand, slightly down from $3,129 thousand in the previous year[163] - The company’s total reserves increased to 17,038 thousand USD as of June 30, 2020, from 16,862 thousand USD at the beginning of the period[139] Debt and Financing - The company has a total bank loan of approximately $33.3 million as of June 30, 2020, down from approximately $39.4 million as of December 31, 2019[73] - The company’s interest-bearing bank loans decreased to $33,307,000 from $39,440,000, a reduction of approximately 15.4%[200] - The company entered into a new financing agreement with a bank on July 8, 2020, with a credit limit of $6,000,000, aimed at replacing existing credit financing[103] - The repayment date for the new financing is set for June 30, 2021, with the possibility of extension at the bank's discretion[103] - The company has pledged 375,000,000 shares held by its major shareholder as collateral for bank loans[185] Market and Product Development - The company has over 200 patents and is focusing on innovative solutions such as the next-generation Simple Setup Hybrid, expected to launch in 2020[38] - The company plans to expand its product portfolio in the second half of 2020 to meet growing demand for industrial design and easy integration[38] - The company continues to develop new products, including a ready-to-use Android TV remote as part of its strategic design for the streaming sector[38] - The group expects to launch a new COVID-19 contact tracing system by the end of Q3 2020, with a potential market value estimated at $4.3 billion according to IDC[42] Employee and Shareholder Information - As of June 30, 2020, the group had 192 employees, with employee benefit expenses amounting to approximately $6.9 million for the six months ended[87] - The total remuneration for key management personnel was $924,000 for the six months ended June 30, 2020, slightly down from $930,000 in the same period of 2019[198] - Short-term employee benefits for key management increased to $823,000 from $796,000, reflecting a growth of approximately 3.4%[198] - A final dividend of $0.0027 per ordinary share was declared, totaling $1,371,000, which was paid on July 31, 2020[196] Risks and Challenges - The impact of COVID-19 led to delays in shipments, pushing some deliveries from Q2 2020 to Q3 2020[39] - The company continues to monitor foreign exchange risks and plans to take prudent measures to mitigate currency exchange risks[85] - The company recognized a reduction in lease payments of $39,000 due to rent concessions related to COVID-19, which was included in the profit and loss statement[148] - The company received government grants totaling $262 thousand to support operations during the COVID-19 pandemic[161]

Financial Performance - The total revenue for the fiscal year 2019 reached approximately $180 million, representing a growth of about 3.5% compared to approximately $173.9 million in 2018[11]. - Gross profit for the fiscal year 2019 was approximately $35 million[11]. - The company's revenue for 2019 increased by approximately 3.5% to about $180.0 million, up from approximately $173.9 million in 2018[20]. - Gross profit for 2019 rose to approximately $35 million, compared to about $34 million in 2018[20]. - The company recorded a net profit of approximately $2.7 million for 2019, a decrease of about 25.0% from $3.6 million in 2018[46]. - Basic earnings per share for 2019 were 0.65 cents, with diluted earnings per share at 0.64 cents[47]. Revenue Breakdown - Revenue from North America decreased by approximately 16.3% to about $72.6 million due to competition from streaming services like Netflix and Disney+[11]. - Revenue from Asia increased significantly by approximately 76.3% to about $55.9 million, supported by strong demand and regulatory support for pay-TV services in India[11]. - European sales declined by approximately 16.2% to about $35.1 million due to customer delays and a major operator choosing a related supplier[13]. - Latin America saw a revenue increase of approximately 20.7% to about $16.4 million due to new customer acquisitions[13]. - North America revenue decreased by 16.3% to $72.54 million, accounting for 40.3% of total revenue[31]. - Asia revenue increased by 76.3% to $55.895 million, representing 31.1% of total revenue[31]. - Europe revenue decreased by 16.2% to $35.123 million, making up 19.5% of total revenue[31]. Cash Flow and Financial Position - Cash and cash equivalents increased from approximately $19.9 million in 2018 to about $28.8 million in 2019[20]. - Net cash from operating activities was approximately $13.5 million for 2019, reflecting a decrease in inventory by about $2.1 million[52]. - Cash and cash equivalents at the end of 2019 were approximately $28.8 million, indicating a strong financial position[48]. - The net cash flow from financing activities for the year ended December 31, 2019, was approximately $4.9 million, primarily due to proceeds from share issuance of about $10.8 million, offset by repayments of bank loans and other borrowings of $3.0 million, interest paid of $2.5 million, and lease liabilities of $0.5 million[54]. - The net current assets increased from approximately $12.2 million as of December 31, 2018, to approximately $20.9 million as of December 31, 2019, mainly due to an increase in cash and cash equivalents of about $8.8 million and trade receivables of about $2.6 million, partially offset by a decrease in inventory of about $2.1 million and an increase in trade payables of about $0.5 million[55]. Strategic Initiatives - The company anticipates that the new Vino series of remote controls will see increased sales in the coming months, targeting the streaming market[14]. - The company secured several new contracts in 2019, including agreements with two major operators in Europe, with shipments expected to begin in the second half of 2020[14]. - The company plans to launch the next-generation Simple Setup Hybrid solution in collaboration with a major operator in 2020[23]. - The company is actively exploring strategic investment opportunities in the OTT and/or smart home security sectors[27]. - The company is committed to improving operational efficiency, targeting a reduction in costs by J% over the next fiscal year[82]. COVID-19 Impact - The impact of COVID-19 on the business is currently expected to be limited, but the company is taking precautionary measures to mitigate potential production delays[15]. - The group expects limited impact from the COVID-19 outbreak on its business, but the future effects remain difficult to estimate due to the dynamic nature of the situation[181]. - The group will continue to monitor the situation regarding COVID-19 and assess its impact actively[181]. Shareholder Information - The board proposed a final dividend of $0.27 per ordinary share[11]. - As of December 31, 2019, the company's distributable reserves amounted to approximately $9,552,430, an increase from $3,990,000 in 2018[120]. - Major shareholders include Morgan Stanley and its affiliates, collectively holding 375,000,000 shares, which accounts for 74.76% of the issued share capital[157]. Corporate Governance - The company has established a remuneration committee to review its remuneration policy based on operational performance and market comparables[31]. - The group is committed to high standards of corporate governance and has adopted the corporate governance code as a basis for its practices[183]. - The board consists of three independent non-executive directors, meeting the requirement of at least one with appropriate professional qualifications or accounting expertise[190]. - The audit committee is responsible for executing corporate governance functions, including policy formulation and compliance reviews[199]. Employee and Operational Insights - The group had 191 employees as of December 31, 2019, with employee benefit expenses amounting to approximately $14.2 million for the fiscal year[31]. - The company emphasizes the importance of employee diversity and provides competitive compensation and development opportunities[98].