Financial Performance - The company's revenue decreased by approximately 71.3% from about HKD 110.9 million in the six months ended June 30, 2019, to about HKD 31.9 million in the same period of 2020[9]. - The net loss recorded was approximately HKD 15.9 million due to the impact of COVID-19 on operations and project delays[6]. - The overall gross profit margin fell from approximately 25.3% to a negative gross profit margin of about 7.5% due to fixed costs remaining high despite low sales[11]. - The company reported a net loss attributable to owners of approximately HKD 15.9 million for the six months ended June 30, 2020, compared to a net profit of HKD 6.9 million for the same period in 2019[20]. - Revenue for the six months ended June 30, 2020, was HKD 31,885,000, a decrease of 71.2% compared to HKD 110,946,000 for the same period in 2019[58]. - Gross loss for the same period was HKD 2,399,000, compared to a gross profit of HKD 28,029,000 in 2019[58]. - The company reported a loss before tax of HKD 17,650,000, a significant decline from a profit of HKD 10,536,000 in the previous year[58]. - Net loss for the period was HKD 15,940,000, compared to a profit of HKD 6,850,000 in the same period last year[58]. - The company reported a loss of HKD 15,940,000 for the six months ended June 30, 2020, compared to a profit of HKD 6,850,000 for the same period in 2019[81]. Cost Management - Sales costs decreased by about 58.7% to approximately HKD 34.3 million, compared to HKD 82.9 million in the previous year[10]. - Selling and distribution expenses decreased by about 32.6% to approximately HKD 3.6 million, mainly due to a drop in transportation costs[14]. - Administrative and other expenses decreased by about 4.8% to approximately HKD 11.2 million, attributed to reduced spending due to social distancing measures[15]. - The total employee costs for the six months ended June 30, 2020, were approximately HKD 12.5 million, down from approximately HKD 15.1 million for the same period in 2019[32]. Cash Flow and Assets - As of June 30, 2020, the group's cash and cash equivalents were approximately HKD 76.9 million, a slight decrease from approximately HKD 77.7 million as of December 31, 2019[21]. - The company reported a net cash decrease of HKD 512,000 for the period, compared to a net decrease of HKD 11,192,000 in the same period of 2019[63]. - The company's cash and cash equivalents at the end of the period were HKD 76,854,000, down from HKD 79,045,000 at the end of June 2019[63]. - Total assets as of June 30, 2020, were HKD 173,639,000, down from HKD 201,396,000 at the end of 2019[60]. - Current liabilities decreased to HKD 28,312,000 from HKD 42,221,000 at the end of 2019[60]. - The company's net asset value as of June 30, 2020, was HKD 189,026,000, down from HKD 206,636,000 at the end of 2019[60]. Strategic Plans - The company plans to adopt a more competitive pricing strategy to secure new projects and stabilize revenue flow amid ongoing challenges[7]. - The company plans to fully utilize the remaining listing proceeds for acquiring a new factory within one year after the impact of COVID-19 on operations is expected to subside, estimated by December 31, 2021[39]. - The company has delayed the acquisition of a new factory and the purchase of additional machinery and equipment due to the ongoing COVID-19 pandemic[39]. - The company anticipates that the purchase of machinery and equipment for the Dongguan factory will resume once travel restrictions are lifted, with plans to complete all necessary groundwork in the interim[39]. Shareholder Information - As of June 30, 2020, the major shareholders hold 75% of the issued share capital, with Mr. Leung Ka Wai and Mr. Yuen Man Keung each holding 1,350,000,000 shares[43]. - Unique Best Limited holds 1,350,000,000 shares, representing 75% of the issued share capital[49]. - WANs Limited also holds 1,350,000,000 shares, accounting for 75% of the issued share capital[49]. - REM Enterprises possesses 1,350,000,000 shares, which is 75% of the issued share capital[49]. - WAN Union has a stake of 1,350,000,000 shares, equivalent to 75% of the issued share capital[49]. - The board members have no knowledge of any other individuals holding interests in shares or related securities as of June 30, 2020[51]. Governance and Compliance - The board believes that good corporate governance is essential for maintaining the company's success and has adhered to all applicable corporate governance code provisions during the reporting period[42]. - The company has established an audit committee to oversee financial reporting and risk management processes[56]. - The company has confirmed that there are no interests in any competing businesses by the directors as of June 30, 2020[52]. Impact of COVID-19 - The company has not experienced any order cancellations due to the COVID-19 pandemic, despite delays in product deliveries[6]. - The company reported a significant impact on revenue due to delays in delivering goods to construction sites caused by COVID-19, which affected the conversion of orders into revenue during the reporting period[100]. - The management expects business performance to improve compared to the dismal first half of the year, but still anticipates underperformance compared to the previous year due to ongoing COVID-19 cases and related restrictions[100]. - The company is closely monitoring the development of the COVID-19 pandemic and will assess its impact further, taking measures to control operating costs and maintain stable cash flow[100]. - The company recognized government subsidies related to COVID-19 amounting to HKD 1,205,000 during the reporting period[79].

Financial Performance - The group's revenue for the fiscal year 2019 increased by approximately 13.7%, primarily driven by significant contributions from projects in Kunming and Wuhan, China[6]. - Revenue breakdown for 2019: Hong Kong approximately HKD 118.9 million, Macau approximately HKD 11.6 million, and China approximately HKD 81.2 million, compared to HKD 147.6 million, HKD 19.2 million, and HKD 19.5 million in 2018 respectively[10]. - The group's net profit after tax for 2019 was approximately HKD 11.5 million, a decrease of about 28.1% compared to the previous fiscal year, mainly due to lower gross margins and increased selling and distribution expenses[10]. - The group's revenue increased by approximately 13.7% from about HKD 186.3 million in 2018 to about HKD 211.7 million in 2019, primarily due to significant sales growth to clients in China[14]. - The cost of sales rose by approximately 16.6% to about HKD 157.2 million in 2019, compared to about HKD 134.9 million in 2018, with raw material costs and employee costs accounting for approximately 79.2% and 11.1% of total sales costs, respectively[15]. - Gross profit increased by about 6.1% to approximately HKD 54.5 million in 2019, while the overall gross margin decreased from about 27.6% in 2018 to about 25.7% in 2019[17]. - Other income decreased by approximately 63.4% to about HKD 0.7 million in 2019, primarily due to a net foreign exchange loss of about HKD 0.2 million[18]. - Selling and distribution expenses increased by approximately 38.2% to about HKD 10.3 million in 2019, mainly due to increased transportation costs[19]. - Administrative and other expenses decreased by approximately 2.2% to about HKD 28.5 million in 2019, influenced by a reduction in listing expenses[20]. - The impairment loss on trade receivables and contract assets amounted to approximately HKD 0.6 million in 2019[22]. - Financing costs decreased by approximately 72.8% to about HKD 0.1 million in 2019, due to the repayment of bank loans[23]. - The income tax expense decreased by approximately 26.3% to about HKD 4.1 million in 2019, mainly due to a reduction in taxable profits[24]. - The profit attributable to the company's owners increased by approximately 12.8% to about HKD 11.5 million in 2019[25]. Impact of COVID-19 - The group anticipates significant challenges in 2020 due to the impact of the COVID-19 pandemic, which is expected to delay construction projects in China, Hong Kong, and Macau[7]. - The group's production capacity has been directly affected by the pandemic, with all factories in China closed for over a month since the Lunar New Year holiday[11]. - The group expects revenue from its China division in 2020 to be significantly lower than in 2019 due to the anticipated economic downturn caused by the pandemic[11]. - The group plans to maintain competitiveness in the market despite the adverse economic environment, leveraging its strong relationships with customers and suppliers[7]. Operational Developments - The establishment of a new production line in Dongguan has incurred additional costs, including rent, hiring, and depreciation of new machinery[10]. - The group has prioritized resources to complete urgent projects in China, leading to a decline in revenue from Hong Kong and Macau[10]. - The company has completed the installation and testing of new production lines and busbar management systems for low-voltage distribution cabinets[46]. - The company has rented a temporary factory in Humen Town for HKD 1.5 million during the acquisition period of the new factory[52]. - The company has completed the renovation of the temporary factory and is utilizing it for production[46]. - The company has signed a sales agreement for the purchase of machinery and equipment for the new production line[46]. - The company plans to gradually acquire new parts for machinery and equipment to minimize disruption to production capacity[50]. - The company has completed the layout and configuration of the temporary factory based on consultant recommendations[46]. Management and Governance - The company was founded on August 25, 1992, by Mr. Yin Minqiang and Mr. Liang Jiawei, with Mr. Yin currently serving as the Executive Director and Chairman[55]. - Mr. Liang Jiawei, aged 51, is the Executive Director and CEO, overseeing daily operations and business development, with over 27 years of experience in the low-voltage distribution and control equipment industry[57]. - The company has a strong management team with extensive experience, including independent non-executive directors with backgrounds in engineering and finance, ensuring robust corporate governance[61][63]. - The management team emphasizes internal control and corporate governance, with members actively participating in various committees[60][63]. - The company has established subsidiaries in China, including Dongguan Quanda and Guangzhou Quanda, enhancing its operational footprint in the region[55]. - The management team is committed to strategic planning and business development, focusing on expanding market presence and exploring new opportunities[55][57]. - The company has a diverse board composition, including members with qualifications from recognized institutions, contributing to informed decision-making[61][63]. - The company aims to leverage its extensive industry experience to drive growth and innovation in the low-voltage distribution sector[55][57]. - The management's strategic vision includes enhancing operational efficiency and exploring potential mergers and acquisitions to strengthen market position[55][57]. Corporate Governance Practices - The board has adopted corporate governance practices in compliance with the listing rules, ensuring transparency and accountability[70]. - The company has established a clear division of responsibilities between the chairman and the CEO to maintain effective governance[78]. - The management team has extensive experience in finance and engineering, contributing to the company's strategic direction and operational success[66][68]. - The company has appointed three independent non-executive directors, constituting over one-third of the board[79]. - The audit committee held three meetings in the fiscal year 2019 and reviewed the company's annual performance, confirming compliance with applicable accounting standards[90]. - The nomination committee plans to hold at least one meeting annually to review the composition of the board and assess the independence of independent non-executive directors[91]. - The board is responsible for all significant matters, including policy, strategy, budget, internal controls, and risk management[85]. - The company has established three committees: audit committee, remuneration committee, and nomination committee, primarily composed of independent non-executive directors[86]. - The audit committee's main responsibilities include reviewing the financial and internal control mechanisms and assessing the effectiveness of arrangements for employees to report misconduct[87]. - The company ensures that all independent non-executive directors have received annual written confirmations regarding their independence[79]. - The board plans to meet four times a year, with written notices sent to directors at least 14 days in advance[83]. - The nomination committee considers various factors for board diversity, including gender, age, cultural background, and professional qualifications[91]. - The company’s executive directors have service contracts with a fixed term of three years, subject to rotation as per the company's articles[81]. - The company reviewed its annual audited financial statements for the year 2018 and the unaudited interim financial statements for the six months ending June 30, 2019[92]. - The remuneration committee plans to review the company's remuneration policy and structure at least once a year, ensuring transparency and performance-based compensation[96]. - In 2019, the remuneration committee held one meeting to review the compensation packages of executive directors, non-executive directors, independent non-executive directors, and senior management[98]. - The board consists of six members, including two females, reflecting the company's commitment to diversity[105]. - All directors received online training covering various topics, including the latest developments in corporate governance, during the 2019 fiscal year[108]. - The company confirmed that there are no significant uncertainties regarding events or conditions that may cast doubt on its ability to continue as a going concern[109]. - The independent auditor's report on the consolidated financial statements is included in the report, ensuring compliance with auditing standards[110]. - The total fees paid or payable to Deloitte amounted to HKD 1,620,000, with audit services costing HKD 1,300,000 and non-audit services costing HKD 320,000[111]. Shareholder Information - As of December 31, 2019, the company's distributable reserves were approximately HKD 133.7 million, a decrease from HKD 138.8 million as of December 31, 2018[132]. - The top five customers accounted for approximately 69.4% of the total revenue, with the largest customer contributing about 39.4%[134]. - The largest supplier and the top five suppliers represented approximately 18.8% and 48.4% of the total procurement, respectively[135]. - The company has received annual independence declarations from all independent non-executive directors, confirming their independence status[136]. - Both Mr. Yin Mingqiang and Mr. Wu Zhiqiang will retire at the upcoming annual general meeting but are eligible and willing to be re-elected[137]. - The remuneration of directors is determined by the remuneration committee, taking into account the group's operating performance, individual performance, and comparable market data[142]. - As of December 31, 2019, Mr. Liang Jiawei and Mr. Yin Mingqiang each hold 1,350,000,000 shares, representing 75% of the issued share capital[148]. - The company has made appropriate insurance arrangements for the legal liabilities arising from the performance of duties by directors and senior officers[144]. - There are no significant interests held by directors or their associates in any transactions, arrangements, or contracts with the company or its subsidiaries[139]. - The service contracts for executive directors are fixed for three years and are subject to rotation as per the company's articles[140]. - Non-executive and independent non-executive directors have appointment letters fixed for three years and are also subject to rotation[141]. - The company has no arrangements that would allow directors or their associates to benefit from purchasing shares or debt securities of the company or any other entity[146]. - There are no disclosures of interests in competing businesses by directors or their associates as of the report date[145]. - Unique Best holds a beneficial interest of 1,350,000,000 shares, representing 75% of the issued share capital[154]. - WANs Limited, REM Enterprises, and WAN Union also hold a combined interest of 1,350,000,000 shares, each representing 75% of the issued share capital[154]. - The major shareholders, including Mr. Yin Minqiang and Mr. Yin Zhiwei, are considered to have a collective interest in the shares held by Unique Best[157]. - No related party transactions or continuous related party transactions were reported for the fiscal year 2019[158]. - The company confirmed compliance with non-competition commitments by major shareholders during the fiscal year 2019[160]. - There were no management or administrative contracts established or in effect for any significant part of the company's business during the fiscal year 2019[161]. - The company did not enter into any stock-linked agreements that could lead to the issuance of shares during the fiscal year 2019[162]. - No tax exemptions were reported for shareholders due to shareholding[163]. - The company has adopted a stock option plan allowing for the issuance of options to eligible participants, with a maximum of 180,000,000 shares available, representing 10% of the issued share capital as of the report date[166]. - The exercise price for shares under the stock option plan will not be lower than the higher of the closing price on the date of grant or the average closing price over the five trading days preceding the grant[166]. - The company has a dividend policy in place, allowing for the declaration and distribution of dividends to shareholders, while retaining sufficient reserves for future development[167]. Environmental and Sustainability Efforts - The company is committed to sustainable development and has implemented measures to minimize its environmental impact throughout its production processes[183]. - The company has established a stakeholder engagement policy to understand stakeholder needs and ensure their interests are considered in business activities[177]. - The company has maintained compliance with the minimum public float requirements as per listing rules[172]. - The audit committee has reviewed the accounting principles and practices adopted by the group, discussing audit, internal control, and financial reporting matters[173]. - The company has received an unqualified audit opinion from Deloitte for its consolidated financial statements for the fiscal year[174]. - The company actively seeks feedback from stakeholders to enhance its future business and sustainable development efforts[182]. - In 2019, the company reported nitrogen oxides emissions of 61,023.60 kg and sulfur oxides emissions of 303.60 kg, with vehicle emissions showing a slight decrease in nitrogen oxides from 16.21 kg in 2018 to 14.41 kg in 2019[187]. - The total greenhouse gas emissions increased from 21.29 tons in 2018 to 38.5 tons in 2019, primarily due to the purchase of new vehicles[187]. - The company achieved a 12% reduction in overall energy consumption in 2019, while water consumption increased by approximately 40% due to factory demands[195]. - The total electricity consumption in 2019 was 1,015,730 kWh, down from 1,147,337 kWh in 2018, indicating a significant decrease in energy usage[195]. - The total water consumption in 2019 was 24,562.60 cubic meters, compared to 17,679.00 cubic meters in 2018, reflecting a substantial increase[195]. - The company reduced non-hazardous waste by approximately 5%, with industrial waste recorded at 37.52 tons in 2019, down from 39.32 tons in 2018[192]. - The packaging materials used in 2019 included 30 tons of cardboard boxes and 4,000 sheets of foam packaging, showing a decrease in cardboard usage from 41.20 tons in 2018[196]. - The company has implemented various resource-saving measures to optimize resource utilization and reduce waste during production[193]. - The company has signed agreements with authorized wastewater treatment plants to handle generated wastewater, ensuring compliance with environmental regulations[191]. - The company emphasizes the importance of improving manufacturing processes to minimize resource consumption and environmental impact[197]. Workforce and Human Resources - The group employs over 200 staff for professional and technical work, viewing them as the most important asset[199]. - As of December 31, 2019, the group had 255 employees, including 29 office staff, 73 project and engineering personnel, and 153 workers[200]. - The group increased its workforce by approximately 13% in the fiscal year 2019, with local employees decreasing by about 4% and Chinese employees increasing by approximately 18%[200]. - The ratio of Hong Kong to Chinese employees increased from 1:4 to 1:5 compared to the previous year[200]. - The gender ratio remained stable at approximately 1:2 for female to male employees at the end of 2019[200].

Revenue and Profitability - The group's revenue increased by approximately HKD 26.2 million or 31.0% to about HKD 110.9 million for the six months ended June 30, 2019, compared to approximately HKD 84.7 million for the same period in 2018[7]. - Gross profit increased by approximately 12.8% to about HKD 28.0 million, while the overall gross margin decreased by approximately 4.1% to about 25.3%[10]. - The net profit attributable to the company's owners increased by approximately HKD 4.2 million or 156.7% to about HKD 6.9 million for the six months ended June 30, 2019[17]. - Revenue for the six months ended June 30, 2019, was HKD 110,946,000, representing a 30.9% increase from HKD 84,698,000 in the same period of 2018[59]. - Gross profit for the same period was HKD 28,029,000, up 12.9% from HKD 24,859,000 year-on-year[59]. - Profit before tax increased to HKD 10,536,000, a 103.5% rise compared to HKD 5,181,000 in the previous year[59]. - Net profit for the period was HKD 6,850,000, which is a 156.5% increase from HKD 2,669,000 in 2018[59]. - Total comprehensive income for the period amounted to HKD 5,898,000, compared to HKD 1,955,000 in the same period last year[59]. Costs and Expenses - Sales costs rose by approximately 38.6% to about HKD 82.9 million for the six months ended June 30, 2019, compared to HKD 59.8 million for the same period in 2018[8]. - Other income and losses decreased by approximately 147.1% to a net loss of about HKD 0.2 million, primarily due to foreign exchange losses of approximately HKD 0.6 million[11]. - Administrative and other expenses decreased by approximately 23.4% to about HKD 11.8 million, mainly due to a reduction in listing expenses[13]. - Financing costs decreased by approximately 87.7% to about HKD 0.03 million, attributed to the repayment of all bank loans during the period[14]. - Tax expenses increased by approximately 46.7% to about HKD 3.7 million, due to an increase in taxable profits subject to higher corporate tax rates in China[16]. Cash Flow and Financial Position - As of June 30, 2019, the group's cash and cash equivalents were approximately HKD 79.0 million, down from HKD 90.5 million as of December 31, 2018[18]. - The group's total equity attributable to owners was approximately HKD 202.5 million as of June 30, 2019, compared to HKD 196.6 million as of December 31, 2018[18]. - The group had no bank borrowings as of June 30, 2019, compared to approximately HKD 0.3 million as of December 31, 2018, resulting in a debt-to-equity ratio of zero[18]. - The company reported a net cash outflow from operating activities of HKD 11,672,000, an improvement from HKD 27,668,000 in the previous year[64]. - The company's total assets as of June 30, 2019, were HKD 222,539,000, slightly up from HKD 218,449,000 at the end of 2018[61]. - Current liabilities increased to HKD 64,645,000 from HKD 55,054,000 at the end of 2018[61]. - Cash and cash equivalents decreased to HKD 79,045,000 from HKD 90,541,000 at the end of 2018[64]. Employee and Operational Updates - The total employee cost for the six months ended June 30, 2019, was approximately HKD 14.8 million, an increase from HKD 13.6 million for the same period in 2018[29]. - The group employed 243 full-time employees as of June 30, 2019, an increase from 225 employees as of December 31, 2018[29]. - The company has initiated the design and consulting for a new production line and management system, incurring HKD 1.0 million in expenses[39]. - The company has completed the layout for relocating existing machinery and installing new equipment, aiming to minimize production disruptions[36]. Investments and Capital Expenditures - The company established a new factory in Dongguan in 2019 to enhance production capacity and meet sales growth in the Chinese market[10]. - The group utilized approximately HKD 58.6 million (78.2% of the IPO proceeds) for the purchase of a new factory in China[31]. - The company acquired property, plant, and equipment for HKD 2,910,000 during the reporting period, a significant increase from HKD 301,000 in the same period of 2018[109]. - Contract assets as of June 30, 2019, amounted to HKD 35,575,000, up from HKD 22,345,000 as of December 31, 2018, indicating an increase of 59.0%[111]. Shareholding and Corporate Governance - Unique Best holds 1,350,000,000 shares, representing 75% of the issued share capital[50]. - WANs Limited, REM Enterprises, and WAN Union also hold 1,350,000,000 shares each, accounting for 75% of the issued share capital[50]. - The beneficial ownership structure indicates that Unique Best is owned by WANs Limited (85.14%), REM Enterprises (13.33%), and REM Limited (1.53%)[55]. - The board of WAN Union is composed solely of Yuen Man-Keung, Yuen Chi-Wai, and Yuen Chi-Kong, maintaining control over WAN Union Trust[55]. - No directors or their associates held any interests in businesses that directly or indirectly compete with the group as of June 30, 2019[53]. Accounting Policies and Standards - The company has adopted new Hong Kong Financial Reporting Standards (HKFRS) effective from January 1, 2019, impacting the accounting policies used in the financial statements[70]. - The application of HKFRS 16 "Leases" has resulted in significant changes in accounting policies, replacing HKAS 17 "Leases" and related interpretations[72]. - The company recognizes right-of-use assets at the commencement date of the lease, measured at cost, less accumulated depreciation and impairment losses[75]. - The company presents right-of-use assets as a separate item in the consolidated financial position statement[78]. - The company applied HKFRS 16 "Leases" retrospectively, recognizing cumulative effects as of January 1, 2019, with no restatement of comparative information[89].

Financial Performance - The company's revenue for the year 2018 decreased by approximately 6.2%, from about HKD 198.5 million in 2017 to about HKD 186.3 million in 2018, primarily due to a reduction in sales to Macau customers by approximately HKD 23.0 million[10]. - Sales revenue attributed to Hong Kong, Macau, and China for 2018 were approximately HKD 147.6 million, HKD 19.2 million, and HKD 19.5 million respectively, with Macau sales significantly declining due to the completion of major hotel projects[11]. - The increase in sales for Hong Kong and China was approximately HKD 3.6 million and HKD 7.2 million respectively, offsetting the decline in Macau sales[15]. - The company's profit attributable to owners decreased by approximately 18.3% to about HKD 10.2 million in 2018 from approximately HKD 12.4 million in 2017[25]. - Gross profit decreased from approximately HKD 56.9 million in 2017 to approximately HKD 51.4 million in 2018, representing a decline of about 9.7%[17]. - The overall gross profit margin for 2018 was approximately 27.6%, a slight decrease of 1.1% compared to approximately 28.7% in 2017[17]. - Other income, gains, and losses increased by approximately 238.2% to about HKD 1.9 million in 2018 from approximately HKD 0.6 million in 2017, mainly due to a net foreign exchange gain of about HKD 1.6 million[19]. - Administrative and other expenses decreased by approximately 8.0% to about HKD 29.1 million in 2018 from approximately HKD 31.6 million in 2017[22]. - The group's sales cost for 2018 was approximately HKD 134.9 million, a decrease of about 4.7% from approximately HKD 141.6 million in 2017[16]. - As of December 31, 2018, the group's cash and cash equivalents were approximately HKD 90.5 million, an increase from approximately HKD 43.0 million as of December 31, 2017[26]. - The group's total equity attributable to owners increased to approximately HKD 196.6 million as of December 31, 2018, compared to approximately HKD 96.9 million as of December 31, 2017[26]. Operational Efficiency - The company anticipates improving productivity through the acquisition of new machinery and equipment for its Dongguan and Guangzhou factories, aiming to enhance overall operational efficiency[6]. - The management is focused on monitoring and managing production and delivery processes to achieve more stable revenue sources in the future[13]. - The company plans to implement new employee bonus policies to incentivize higher sales and cost reductions, aiming for improved project margins[13]. - The company has signed several contracts, including a two-year lease for a temporary factory in Humen Town and the acquisition of new machinery for existing facilities[48]. - The company is focused on enhancing its operational capabilities through the establishment of a new production line for low-voltage distribution cabinets[48]. Market Outlook and Strategy - The market outlook remains cautiously optimistic, with expectations of steady growth in demand for customized low-voltage distribution and control devices in Hong Kong, Macau, and China[12]. - The management expresses optimism about business development, particularly in seizing market opportunities in large-scale projects in China to expand its customer base[7]. - The company aims to expand its market share in China, particularly in the low-voltage power distribution and control device market[48]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[58]. - A strategic acquisition of a local competitor is anticipated to enhance operational capabilities and increase customer base by 15%[58]. Human Resources and Employee Relations - The total employee cost for the year 2018 was approximately HKD 29.3 million, an increase from HKD 26.9 million in 2017[40]. - As of December 31, 2018, the group had 225 full-time employees, down from 236 in 2017[40]. - The company emphasizes a fair and safe working environment to attract and retain talent[196]. - The company has implemented a comprehensive recruitment and promotion policy to ensure fairness and transparency in processes[198]. - The employee compensation policy is regularly reviewed to attract and retain talented staff, with total employee costs reflecting this commitment[40]. Corporate Governance - The board consists of 6 members, including 2 executive directors, 1 non-executive director, and 3 independent non-executive directors[69]. - Independent non-executive directors account for more than one-third of the board, ensuring compliance with listing rules[74]. - The company has adopted a standard code for securities trading by directors, confirming compliance since the listing date[68]. - The board plans to hold at least four meetings annually to monitor business operations and development[79]. - The company emphasizes transparency and accountability as essential components of good corporate governance[67]. Environmental Responsibility - The company is committed to sustainable development and has presented its first Environmental, Social, and Governance (ESG) report, highlighting efforts in corporate social responsibility[172]. - The group generated nitrogen oxides emissions of 16,211.93 grams and sulfur oxides emissions of 100.61 grams in 2018[184]. - The total greenhouse gas emissions from mobile combustion sources amounted to 21.29 tons, while energy indirect emissions from electricity reached 958.33 tons in 2018[184]. - The group produced 39.32 tons of non-hazardous industrial waste in 2018, focusing on minimizing waste during operations[190]. - The company is committed to reducing its environmental impact by using eco-friendly materials and equipment[195]. Shareholder Information - Unique Best Limited holds 75% of the total issued shares of the company, amounting to 1,350,000,000 shares[148]. - The company did not recommend the payment of a final dividend for the year 2018, consistent with the previous year[122]. - The company has established a dividend policy to allow for the declaration and distribution of dividends to shareholders, sharing profits while retaining sufficient reserves for future development[163]. - The company has confirmed no related party transactions that require disclosure under the Listing Rules for the fiscal year 2018[152]. - The company has not engaged in any related party transactions that require independent shareholder approval during the fiscal year[153].