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告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告 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。 HOME CONTROL INTERNATIONAL LIMITED （於開曼群島註冊成立的有限公司） 1747 （股份代號： ） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 告 董事會欣然公佈，本集團截至二零二三年六月三十日止六個月之未經審核簡 明綜合中期業績，連同二零二二年同期之比較數字如下： 下表載列本集團經調整純利： 截至六月三十日止六個月 二零二三年 二零二二年 （未經審核） （未經審核） 千美元 千美元 報告（淨虧損）╱純利 (1,489) 3,193 加：重組及遣散成本 2,033 12 經調整純利（附註） 544 3,205 ...

Revenue Performance - The company's total revenue for 2022 was approximately $126.6 million, an increase of about 0.5% compared to approximately $126.0 million in 2021[9]. - Revenue from North America increased by approximately 19.6% to about $38.0 million in 2022[10]. - Revenue from Europe decreased by approximately 1.7% to about $46.8 million in 2022[11]. - Revenue from Asia decreased by approximately 26.1% to about $23.0 million in 2022, partly due to the strategy of discontinuing low-margin products[12]. - Revenue from Latin America increased by approximately 20.9% to about $18.7 million in 2022[13]. - The company's revenue for the year ended December 31, 2022, increased by approximately 0.5% (about $0.6 million) compared to the previous year, primarily due to revenue growth in North America and Latin America, offset by a decline in Asia[23]. - Revenue breakdown by region for the year ended December 31, 2022: North America $38,044 (30.1%), Europe $46,813 (37.0%), Asia $23,024 (18.2%), Latin America $18,679 (14.7%)[26]. Profitability - The company achieved a net profit of approximately $4.6 million for the year ended December 31, 2022, compared to approximately $3.8 million for the year ended December 31, 2021[21]. - Gross profit decreased from approximately $29.0 million for the year ended December 31, 2021, to about $27.6 million for the year ended December 31, 2022, primarily due to changes in product mix[30]. - Other income decreased from approximately $1.7 million to about $0.3 million, mainly due to a reduction in government subsidies[31]. - The company's net profit for the year ended December 31, 2022, was approximately $4.6 million, an increase of about $0.8 million from $3.8 million in the previous year[40]. - Basic and diluted earnings per share for the year ended December 31, 2022, were both $0.0091, compared to $0.0076 and $0.0075 for the previous year[41]. Cash Flow and Financial Position - As of December 31, 2022, the company's cash and cash equivalents were approximately $15.3 million, down from $17.6 million the previous year[42]. - The net cash generated from operating activities for the year ended December 31, 2022, was $1.393 million, compared to $3.603 million in the previous year[44]. - The net cash flow from operating activities for the year ended December 31, 2022, was approximately $1.4 million, reflecting a cash inflow of about $10.2 million before changes in working capital[45]. - The net cash flow from investing activities for the year was approximately $0.5 million, primarily due to the redemption of financial assets amounting to $1.6 million, offset by the purchase of property, plant, and equipment of about $1.1 million[46]. - The net cash flow used in financing activities for the year was approximately $4.1 million, mainly due to repayment of bank loans of about $3.0 million and paid dividends of approximately $1.9 million[48]. - As of December 31, 2022, the total debt was approximately $24.5 million, a slight decrease from $25.0 million as of December 31, 2021[52]. - The debt ratio as of December 31, 2022, was approximately 35.7%, compared to 26.6% as of December 31, 2021[55]. - The net current assets increased from approximately $22.9 million as of December 31, 2021, to about $24.9 million as of December 31, 2022[49]. Research and Development - Continued investment in R&D, particularly in sustainability, IoT, and other new business segments[14]. - The company has over 200 patents and a comprehensive infrared and code database, enhancing its innovation capabilities[18]. - The company plans to continue investing in research and development and expanding its sales team to improve its existing business supply chain[22]. - The company has allocated HKD 14.27 million (USD 1.82 million) for research and development of OTT products and expanding its smart home product series[102]. Corporate Governance and Management - The board of directors presented the audited consolidated financial statements for the year ending December 31, 2022[87]. - The company emphasizes the importance of maintaining close relationships with employees, customers, and business partners for sustainable development[91]. - The management discussion and analysis section provides insights into the business review and future outlook for the company[90]. - The company has a balanced board composition suitable for its business, with three independent non-executive directors meeting the minimum requirement of one-third of the board[149]. - The company has maintained directors' and officers' liability insurance to provide adequate protection against potential legal claims[156]. Shareholder Information - The company has 504,141,829 shares issued as of December 31, 2022, with 2,508,166 shares granted under the share incentive plan on October 5, 2022, representing approximately 0.50% of the total issued shares post-allocation[119]. - No dividends were proposed for the fiscal year ending December 31, 2022, compared to a dividend of 0.38 cents per share in the previous year[106]. - The company’s share premium account available for distribution to shareholders was approximately $7,830,000 as of December 31, 2022, down from $9,573,000 in the previous year[111]. - The company has adopted a share option plan to attract and retain employees, with options vesting based on performance metrics[120]. - The company aims to promote business success through the share option plan, which has a maximum exercise price of approximately $0.0877 per share[123]. Business Risks and Future Outlook - The company recognizes various business risks, including potential adverse impacts from major customer performance and technological innovation failures[97]. - The management anticipates continued fluctuations in the exchange rates of SGD, RMB, and USD, which may adversely affect financing costs, sales, and product profits[62]. - The company is unaware of any significant matters that may affect the group after the end of the fiscal year[194]. - The company is committed to establishing good corporate governance practices to ensure transparency and accountability to shareholders[196]. Strategic Initiatives - The company plans to utilize the IPO proceeds primarily 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)[102]. - The company aims to expand its professional sales team to support business development with an allocation of HKD 13.8 million (USD 1.76 million)[102]. - The company plans to enhance its supply chain management and investment outside of China with an allocation of HKD 6.57 million (USD 0.84 million)[102]. - Home Control aims to provide advanced remote control solutions to simplify customers' lives and is dedicated to continuous innovation and improvement of its products[197]. - The company's ultimate goal is to become a leading provider of home remote control solutions based on trust, innovation, and excellent service[197].

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告的內容概不 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告全 部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 HOME CONTROL INTERNATIONAL LIMITED （於開曼群島註冊成立的有限公司） 1747 （股份代號： ） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 告 董事會欣然公佈，本集團截至二零二二年十二月三十一日止年度的綜合業績， 連同上一個財政年度的比較數字。 綜合全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千美元 千美元 收入 3 126,560 126,008 銷售成本 (98,942) (97,002) 毛利 27,618 29,006 其他收入 286 1,708 銷售及分銷開支 (7,184) (8,079) ...

Financial Performance - For the six months ended June 30, 2022, the company's revenue was approximately $65.0 million, an increase of about 39.6% compared to approximately $46.6 million for the same period in 2021[11]. - Gross profit increased from approximately $11.5 million for the six months ended June 30, 2021, to approximately $14.6 million for the same period in 2022[11]. - Net profit for the six months ended June 30, 2022, was approximately $3.2 million, significantly up from approximately $0.1 million for the same period in 2021[11]. - Revenue for the six months ended June 30, 2022, was $64,998,000, representing a 39.5% increase from $46,571,000 in the same period of 2021[104]. - Gross profit for the same period was $14,627,000, up 28.5% from $11,454,000 year-over-year[104]. - Profit before tax increased significantly to $4,174,000 compared to $270,000 in the prior year, marking a substantial growth[104]. - Net profit attributable to the company's owners for the period was $3,193,000, compared to $81,000 in the previous year, reflecting a dramatic increase[104]. - Basic earnings per share rose to 0.64 cents from 0.02 cents year-over-year, indicating strong profitability growth[104]. Revenue Breakdown - Revenue from North America increased by approximately $21.8 million, while revenue from Asia decreased by approximately $3.4 million[15]. - Revenue from Europe accounted for approximately $26.9 million, representing 41.4% of total revenue for the six months ended June 30, 2022[17]. - Revenue from product sales was $64,453 thousand, up from $46,348 thousand year-over-year, indicating a growth of about 39.1%[142]. - Revenue from patent royalties increased to $545 thousand from $223 thousand, reflecting a significant rise of approximately 144.4%[142]. - North America generated $17,652 thousand in revenue, a substantial increase from $4,314 thousand in the previous year, marking a growth of approximately 309.5%[136]. - Europe reported revenue of $26,931 thousand, up from $21,114 thousand, which is an increase of about 27.5%[136]. - Latin America saw revenue growth to $9,565 thousand from $6,935 thousand, representing an increase of approximately 38.5%[136]. Cost Management - The sales cost for the six months ended June 30, 2022, was approximately $50.4 million, representing about 77.5% of total revenue, compared to $35.1 million and 75.4% for the same period in 2021[19]. - Other income decreased to approximately $0.1 million for the six months ended June 30, 2022, down from $1.2 million in the same period in 2021, primarily due to a reduction in government grants[22]. - The group’s profit before tax for the six months ended June 30, 2022, was impacted by a cost of goods sold amounting to $41,969,000, compared to $28,492,000 in the same period of 2021, representing a 47.5% increase[151]. - Research and development expenses for the six months ended June 30, 2022, totaled $2,711,000, down from $3,020,000 in 2021, indicating a decrease of 10.2%[151]. - Employee benefits expenses for the six months ended June 30, 2022, were approximately $6.8 million, reflecting the company's commitment to workforce investment[51]. Financial Position - Cash and cash equivalents as of June 30, 2022, were approximately $16.3 million, indicating a stable financial position[33]. - The net current assets as of June 30, 2022, were approximately $22.9 million[39]. - As of June 30, 2022, the group's bank loans amounted to approximately $26.3 million, compared to approximately $25.0 million as of December 31, 2021, reflecting a year-over-year increase of about 5.2%[43]. - The debt ratio as of June 30, 2022, was approximately 32.0%, up from approximately 26.6% as of December 31, 2021, indicating an increase of 5.4 percentage points[46]. - The group had no significant investments or capital asset plans as of June 30, 2022, indicating a conservative approach to capital expenditure[47]. - The company has 178 employees as of June 30, 2022, an increase from 175 employees as of December 31, 2021, reflecting growth in human resources[51]. - The company has not identified any significant changes to the planned use of IPO proceeds as of the report date, indicating stability in its financial strategy[60]. Corporate Governance - The board is committed to good corporate governance practices, ensuring transparency and accountability to shareholders[63]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and risk management[97]. - The audit committee has confirmed the adoption of accounting principles and practices, as well as internal controls related to financial reporting[97]. Future Outlook - The company anticipates a better outlook for 2022 compared to the past two years, provided global financial and geopolitical conditions stabilize[14]. - The company is committed to investing in research and development and expanding its sales team to improve its existing business supply chain[14]. - Future guidance suggests a positive outlook with expected revenue growth driven by new product launches[200].

Financial Performance - The company's total revenue for 2021 was approximately $126 million, a decrease of about 6.1% compared to approximately $134 million in 2020[49]. - Gross profit for the year was approximately $29 million[49]. - Revenue from North America decreased by approximately 29.9% to about $31.8 million[50]. - Sales in Europe increased by approximately 24.1% to about $47.6 million[51]. - Revenue from Asia decreased by approximately 14.7% to about $31.1 million, partly due to the strategy of discontinuing low-margin products[52]. - Revenue from Latin America increased by approximately 11.0% to about $15.5 million[53]. - Revenue for the year ended December 31, 2021, decreased by approximately 6.1% (about $8.2 million) compared to the previous year, primarily due to declines in North America and Asia, partially offset by increases in Europe[61]. - The company's sales cost for the year ended December 31, 2021, was approximately $97.0 million, accounting for about 77.0% of total revenue, compared to approximately $106.8 million (79.6%) for the previous year[64]. - The net profit for the year ended December 31, 2021, was approximately $3.8 million, an increase of about $0.1 million compared to approximately $3.7 million for the year ended December 31, 2020[78]. - The company's other income increased from approximately $0.7 million for the year ended December 31, 2020, to about $1.7 million for the year ended December 31, 2021, mainly due to gains from the sale of intangible assets and increased government grants[69]. Investment and Development - Continued investment in R&D, particularly in sustainable development, IoT, and other new business sectors[54]. - The company plans to continue investing in research and development, expanding the sales team, and improving the existing supply chain to address post-pandemic demand and component shortages[60]. - The company plans to invest in the development of OTT systems and smart home security products, with an allocation of approximately USD 2.93 million from the IPO proceeds[143]. - The company intends to expand its professional sales team to support business growth, with an expected allocation of approximately USD 1.76 million from the IPO proceeds[143]. - The company is focusing on research and development to expand its OTT product line and smart home product series, with an allocation of approximately USD 1.82 million from the IPO proceeds[143]. Cash Flow and Financial Position - The company’s cash and cash equivalents as of December 31, 2021, were approximately $17.6 million, indicating a solid financial position to support operations and foreseeable capital expenditures[80]. - Net cash flow from operating activities for the year ended December 31, 2021, was approximately $3.6 million, a decrease from $10.7 million in 2020[82]. - Cash used in investing activities for the year ended December 31, 2021, was approximately $1.5 million, primarily due to the purchase of property, plant, and equipment amounting to $2.3 million[84]. - Cash used in financing activities for the year ended December 31, 2021, was approximately $6.8 million, mainly attributed to repayment of interest-bearing bank loans of about $28.2 million[86]. - Current assets increased from approximately $16.9 million as of December 31, 2020, to approximately $22.9 million as of December 31, 2021, driven by an increase in inventory of about $13.8 million and trade receivables of about $17.4 million[87]. - The debt ratio as of December 31, 2021, was approximately 26.6%, down from 39.8% as of December 31, 2020[95]. - Capital expenditures for the year ended December 31, 2021, amounted to approximately $2.3 million, funded primarily through cash generated from operating activities[88]. - The company had bank loans of approximately $25.0 million as of December 31, 2021, compared to $27.7 million in 2020[90]. - The company has available bank financing of $24.45 million, with $22.75 million already drawn down as of December 31, 2021[92]. Governance and Board Composition - The company has a strong board composition with members having significant experience in finance and management across various industries[106]. - The board believes that Van Eck's independent status is maintained due to his lack of ownership in the company's shares and independence from management[111]. - The overall strategy planning is supported by the non-executive directors, ensuring a comprehensive approach to governance[104]. - The company continues to focus on enhancing its governance structure through independent oversight and strategic guidance from its board members[110]. - The board composition is considered balanced and suitable for the company's business[176]. - There are currently three independent non-executive directors, meeting the minimum requirement of one-third of the board[179]. Shareholder Information - The proposed final dividend is USD 0.0038 per ordinary share, subject to approval at the upcoming annual general meeting[147]. - As of December 31, 2021, the company's distributable reserves amounted to approximately $9,573,430, unchanged from 2020[153]. - The company has not issued any debt securities or convertible bonds during the year[157][158]. - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the year ending December 31, 2021[159]. - The company adopted a share option scheme on May 1, 2015, allowing for the issuance of up to 40,841,584 shares, representing approximately 8.14% of the total issued shares as of December 31, 2021[163]. - A total of 5,016,337 reward shares were granted under the share reward plan, accounting for about 1.00% of the total issued shares at the time of grant[169]. - The share reward plan is effective for ten years from the adoption date, with a cap of 1.5% of the total issued shares at the time of adoption[169]. - The company has not canceled or modified the share option scheme during the year[164]. - The company has not entered into any significant contracts with its controlling shareholders during the year[155]. - The company has not issued any equity-linked agreements that would lead to the issuance of shares during the year[156]. - The company has not made any further grants of share options under the plan aside from those disclosed[166]. - As of December 31, 2021, the company has issued a total of 501,633,663 shares[191]. - The company granted a total of 5,016,337 shares under the share incentive plan, which remain unvested as of the report date[173]. - Alain Perrot, the Executive Director and CEO, holds 20,041,213 shares, representing approximately 4.00% of the company's equity[194]. - Morgan Stanley controlled entities hold 375,000,000 shares, representing 74.76% of the issued share capital[199]. - NHPEA IV Home Control is fully owned by Alain Perrot, with a 100% beneficial interest[196]. - The company has no other directors or senior executives with interests in the company or its associated entities as of December 31, 2021[197]. - The ownership structure includes multiple entities under Morgan Stanley, all holding the same number of shares[199]. - The beneficial ownership of NHPEA is also recorded as 375,000,000 shares, equating to 74.76%[199]. - The report indicates that all interests are held in good standing as of the reporting date[200]. - The company maintains compliance with the Securities and Futures Ordinance regarding the disclosure of interests[197]. Risks and Future Outlook - The company is facing various risks, including potential adverse impacts from COVID-19 on supply, sales, and profitability[136]. - The company expects better prospects for 2022 compared to the past two years, assuming correct assumptions regarding integrated circuit supply[60].

Financial Performance - For the six months ended June 30, 2021, the company's revenue was approximately $46.6 million, a decrease of about 33.3% compared to $69.8 million for the same period in 2020[47]. - The adjusted net profit for the same period was $1.9 million, slightly up from $1.7 million in 2020, despite the overall revenue decline[47]. - The gross profit margin improved from approximately 20.4% for the six months ended June 30, 2020, to about 24.6% for the same period in 2021, indicating a shift towards higher-margin products[52]. - The group recorded a pre-tax profit of approximately $0.3 million for the six months ended June 30, 2021, compared to a pre-tax loss of approximately $2.0 million for the same period in 2020[68]. - The company reported a total comprehensive income of $(52,000) for the six months ended June 30, 2021, compared to a total comprehensive income of $1,547,000 for the same period in the previous year[150]. - The company reported a pre-tax profit of $270,000 for the six months ended June 30, 2021, a decrease of 86.5% compared to $2,005,000 in the same period of 2020[152]. - Net profit attributable to the company's shareholders was $81,000, down from $1,503,000, representing a decline of 94.6%[143]. - Basic and diluted earnings per share for the period were both $0.02, compared to $0.30 in the same period last year, a decrease of 93.3%[143]. Revenue Breakdown - Revenue breakdown by region shows North America at $4.31 million (9.3%), Europe at $21.11 million (45.3%), Asia at $14.21 million (30.5%), and Latin America at $6.94 million (14.9%) for the six months ended June 30, 2021[57]. - North America generated $4,314 thousand in revenue, a substantial drop from $29,102 thousand in the previous year, indicating a decline of 85.2%[165]. - Europe saw an increase in revenue to $21,114 thousand from $20,867 thousand, representing a growth of 1.2%[165]. - Revenue from product sales was $46,348 thousand, down 33.5% from $69,658 thousand in the previous year[170]. - The company reported no individual customer contributing 10% or more to total revenue for the six months ended June 30, 2021[169]. Costs and Expenses - The cost of sales for the six months ended June 30, 2021, was approximately $35.12 million, representing about 75.4% of total revenue, compared to $55.58 million (79.6%) for the same period in 2020[59]. - Gross profit for the six months ended June 30, 2021, was approximately $11.5 million, down from $14.2 million in the same period in 2020[61]. - Employee benefits expenses for the six months ended June 30, 2021, were approximately $6.8 million, with a total of 180 employees as of the same date[91]. - Financing costs increased to $2,364,000 from $1,122,000, reflecting a rise of 110.6%[143]. - The total income tax expense for the six months ended June 30, 2021, was $189,000, a decrease from $502,000 in 2020[190]. Cash Flow and Financial Position - The net cash used in operating activities for the six months ended June 30, 2021, was approximately $(0.95) million, compared to $3.06 million for the same period in 2020[74]. - Cash and cash equivalents as of June 30, 2021, were approximately $21.2 million, indicating a stable financial position[73]. - The net cash flow from investing activities for the six months ended June 30, 2021, was approximately $0.1 million, primarily related to the sale of intangible assets of about $0.5 million, offset by the purchase of property, plant, and equipment of $0.4 million[77]. - The net cash flow used in financing activities for the same period was approximately $0.3 million, mainly due to the repayment of interest-bearing bank loans of $24.5 million and payment of loan interest of $0.4 million, partially offset by proceeds from interest-bearing bank loans of $24.9 million[78]. - The cash and cash equivalents at the end of the period were $21,188,000, down from $22,433,000 at the end of the previous year, reflecting a decline in liquidity[153]. Investments and Future Plans - The company plans to utilize the IPO proceeds for strategic investments or acquisitions in OTT systems and/or smart home security products, with an allocation of approximately $2.93 million[97]. - The company intends to invest $1.82 million in R&D and development of OTT sector products and expanding the smart home product line[97]. - An investment of $1.76 million is planned to expand the professional sales team to support business development[97]. - The company aims to enhance supply chain management and invest $0.84 million in expanding supply chains outside of China[97]. - The company expects to fully utilize the unallocated IPO proceeds by the end of 2021[99]. COVID-19 Impact - The company continues to monitor the impact of COVID-19 on its operations and is complying with government measures and recommendations[55]. - The COVID-19 pandemic has hindered business discussions and due diligence processes, but the board is closely monitoring the situation[99]. - A new COVID-19 contact tracing system has been successfully launched in India and the United States, with expectations for more orders in the second half of 2021[54]. Shareholder Information - Major shareholders, including Morgan Stanley and its affiliates, hold a combined 74.76% of the company's issued share capital, totaling 375,000,000 shares[132]. - The total number of shares issued by the company as of June 30, 2021, was 501,633,663 shares[127]. - The company granted a master option to purchase 40,841,584 shares at an exercise price of approximately $0.0877 per share, representing about 8.14% of the total shares issued as of June 30, 2021[113]. - As of June 30, 2021, a total of 5,016,337 shares were granted under the share award plan, accounting for approximately 1.00% of the total shares issued at the time of grant[118].

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].