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].

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].