[Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) This section provides a high-level overview of the company's financial performance and position [Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The report covers the fifteen months ended March 31, 2025, compared to the annual results for the year ended December 31, 2023, showing revenue of **$76.963 million**, gross profit of **$2.072 million**, and an expanded loss of **$12.134 million** for the period Financial Highlights (Thousand USD) | Indicator | Fifteen Months Ended March 31, 2025 (Thousand USD) | Year Ended December 31, 2023 (Thousand USD) | | :--- | :--- | :--- | | Revenue | 76,963 | 66,316 | | Gross Profit | 2,072 | 2,934 | | Loss for the Period | (12,134) | (9,749) | [Consolidated Financial Statements](index=2&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the company's consolidated financial performance and position [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) During the fifteen-month reporting period, the company recorded **$76.963 million** in revenue, but gross profit declined to **$2.072 million**, with the loss for the period expanding to **$12.134 million** due to increased selling, administrative, and finance costs, resulting in a basic and diluted loss per share of **1.10 US cents** Consolidated Statement of Profit or Loss and Other Comprehensive Income (Thousand USD) | Item | Fifteen Months Ended March 31, 2025 (Thousand USD) | Year Ended December 31, 2023 (Thousand USD) | | :--- | :--- | :--- | | Revenue | 76,963 | 66,316 | | Gross Profit | 2,072 | 2,934 | | Selling and Distribution Expenses | (3,918) | (2,959) | | General and Administrative Expenses | (6,297) | (5,834) | | Finance Costs | (3,553) | (2,284) | | Loss Before Income Tax | (12,048) | (8,649) | | **Loss for the Period/Year** | **(12,134)** | **(9,749)** | | **Basic and Diluted Loss Per Share (US Cents)** | **(1.10)** | **(0.89)** | [Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of March 31, 2025, the Group's total assets decreased to **$42.056 million** from **$54.189 million** at the end of 2023, primarily due to reductions in inventories and trade receivables, while total liabilities decreased to **$30.750 million** and total shareholders' equity significantly reduced to **$11.306 million** Consolidated Statement of Financial Position (Thousand USD) | Item | As of March 31, 2025 (Thousand USD) | As of December 31, 2023 (Thousand USD) | | :--- | :--- | :--- | | **Non-Current Assets** | **10,059** | **11,046** | | **Current Assets** | **31,997** | **43,143** | | Of which: Inventories | 6,662 | 14,007 | | Of which: Trade and Bills Receivables | 13,860 | 19,047 | | **Current Liabilities** | **27,774** | **31,177** | | Of which: Bank and Other Borrowings | 18,273 | 20,565 | | **Non-Current Liabilities** | **2,976** | **415** | | **Net Assets/Total Equity** | **11,306** | **22,597** | [Notes to the Consolidated Financial Statements](index=6&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed explanations and disclosures supporting the consolidated financial statements [Company Information and Basis of Preparation](index=6&type=section&id=1.%20%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99%E5%8F%8A%202.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The Group primarily engages in customized reference design and sales of ICs and electronic components in Hong Kong and China, with the fiscal year-end changed to March 31, resulting in a 15-month reporting period, and the financial statements are prepared under Hong Kong Financial Reporting Standards with new amendments applied for the first time - The Group's principal activities involve providing customized reference designs for ICs and other electronic components to customers in Hong Kong and China[9](index=9&type=chunk) - The company's fiscal year-end has been changed from December 31 to March 31, with this reporting period covering fifteen months from January 1, 2024, to March 31, 2025, thus making the data not directly comparable to the prior 12-month period[11](index=11&type=chunk) - The Group first applied several amendments to Hong Kong Financial Reporting Standards effective January 1, 2024, including those on liability classification and supplier finance arrangements, which had no significant impact on the financial statements[13](index=13&type=chunk)[15](index=15&type=chunk)[17](index=17&type=chunk) [Segment Information](index=11&type=section&id=3.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group operates a single segment focused on IC products and electronic component sales, with Hong Kong as the primary revenue source (over **85%**), and mobile devices/smart charging and motor control as the two core product categories, collectively accounting for **95.5%** of total revenue Revenue by Geographical Location (Thousand USD) | Region | Fifteen Months Ended March 31, 2025 Revenue (Thousand USD) | Year Ended December 31, 2023 Revenue (Thousand USD) | | :--- | :--- | :--- | | Hong Kong | 65,565 | 46,505 | | China | 11,398 | 19,811 | | **Total** | **76,963** | **66,316** | Revenue by Product Category (Thousand USD) | Product Category | Fifteen Months Ended March 31, 2025 Revenue (Thousand USD) | Year Ended December 31, 2023 Revenue (Thousand USD) | | :--- | :--- | :--- | | Mobile Devices and Smart Charging | 44,231 | 32,271 | | Motor Control | 29,253 | 26,612 | | Sensors and Automatic Control | 1,334 | 5,110 | | LED Lighting | 810 | 1,146 | | RF Power | 1,335 | 1,177 | | **Total** | **76,963** | **66,316** | [Loss Before Income Tax](index=15&type=section&id=6.%20%E6%9C%AA%E8%A8%88%E6%89%80%E5%BE%97%E7%A8%85%E5%89%8D%E虧%E6%90%8D) The calculation of loss before income tax for the period includes several deductions, with the cost of inventories recognized as an expense, totaling **$73.783 million**, being the largest cost item, alongside significant amortization of intangible assets and employee benefit expenses Components of Loss Before Income Tax (Thousand USD) | Item | Fifteen Months Ended March 31, 2025 (Thousand USD) | Year Ended December 31, 2023 (Thousand USD) | | :--- | :--- | :--- | | Cost of Inventories Recognized as Expense | 73,783 | 62,148 | | Amortization of Intangible and Other Assets | 1,122 | 146 | | Employee Benefit Expenses | 5,036 | 4,148 | | Write-down of Inventories Included in Cost of Sales | 668 | 860 | [Dividends and Loss Per Share](index=17&type=section&id=8.%20%E8%82%A1%E6%81%AF%20%E5%8F%8A%209.%20%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) During the reporting period, the company's board did not recommend any dividend distribution, and due to the expanded loss, basic and diluted loss per share increased from **0.89 US cents** to **1.10 US cents**, with diluted loss per share being identical to basic loss per share due to the absence of potentially dilutive shares - For the fifteen months ended March 31, 2025, the company did not pay or propose any dividends[33](index=33&type=chunk) Loss Per Share (US Cents) | Indicator | Fifteen Months Ended March 31, 2025 | Year Ended December 31, 2023 | | :--- | :--- | :--- | | Loss Attributable to Owners (Thousand USD) | (12,134) | (9,749) | | Weighted Average Number of Ordinary Shares (Thousand Shares) | 1,098,122 | 1,098,122 | | **Basic Loss Per Share (US Cents)** | **(1.10)** | **(0.89)** | [Trade and Bills Receivables](index=19&type=section&id=11.%20%E8%B2%A3%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) As of March 31, 2025, net trade and bills receivables significantly decreased to **$13.86 million** from **$19.047 million** at the end of 2023, with a typical credit period not exceeding four months and approximately **83%** of receivables being not overdue or within 90 days Trade and Bills Receivables (Thousand USD) | Item | As of March 31, 2025 (Thousand USD) | As of December 31, 2023 (Thousand USD) | | :--- | :--- | :--- | | Net Trade Receivables | 13,220 | 16,277 | | Bills Receivable | 640 | 2,770 | | **Total** | **13,860** | **19,047** | - Customer credit terms typically do not exceed four months, though extended credit periods may be granted to certain key long-term customers, with senior management regularly reviewing overdue balances to control credit risk[38](index=38&type=chunk) [Management Discussion and Analysis](index=23&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides management's perspective on the company's operations, financial condition, and future outlook [Business Review](index=23&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Despite the semiconductor industry entering a downturn due to global supply chain tensions and slow domestic economic recovery, the Group focuses on five major product categories and actively explores opportunities in emerging fields, with mobile devices and smart charging becoming the primary revenue source, increasing its share from **48.7%** to **57.5%** during the period - The semiconductor industry entered a downturn due to weak consumer electronics market demand, but strong chip demand in high-power renewable energy, energy storage, industrial automation, and artificial intelligence sectors presents new development opportunities for the company[43](index=43&type=chunk) - The Group focuses on five key product categories: (i) mobile devices and smart charging; (ii) motor control; (iii) sensors and automatic control; (iv) LED lighting; and (v) RF power[45](index=45&type=chunk) Revenue by Product Type (Thousand USD) | Product Type | Fifteen Months Ended March 31, 2025 Revenue (Thousand USD) | Revenue Share (%) | | :--- | :--- | :--- | | Mobile Devices and Smart Charging | 44,231 | 57.5% | | Motor Control | 29,253 | 38.0% | | Sensors and Automatic Control | 1,334 | 1.7% | | LED Lighting | 810 | 1.1% | | RF Power | 1,335 | 1.7% | | **Total** | **76,963** | **100%** | [Financial Review](index=24&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) Total revenue for the 15-month period was **$77 million**, a **16.1%** increase year-on-year, but gross profit decreased by **29.4%** to **$2.1 million** and gross margin fell from **4.4%** to **2.7%** due to falling selling prices and inventory provisions, leading to an expanded loss for the period from **$9.7 million** to **$12.1 million** - Gross profit decreased by **29.4%** year-on-year to **$2.1 million**, with gross margin falling from **4.4%** to **2.7%**, primarily due to lower profit margins on mobile devices and smart charging products and declining selling prices[48](index=48&type=chunk) - Selling and distribution expenses increased by **$0.9 million** to **$3.9 million**, mainly due to the amortization of development costs of approximately **$0.8 million**[50](index=50&type=chunk) - Finance costs increased by **$1.3 million** to **$3.6 million**, consistent with the rise in interest rates on bank and other borrowings[52](index=52&type=chunk) - Loss for the period increased by **24.5%** from **$9.7 million** in 2023 to **$12.1 million** in the current period[54](index=54&type=chunk) [Liquidity and Financial Resources](index=26&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) As of March 31, 2025, the Group's cash and cash equivalents were **$3.7 million**, with net current assets of **$4.2 million**, and the gearing ratio increased from **47.6%** to **64.7%**, indicating higher leverage, while the weighted average annual interest rate for bank and other borrowings rose from **10.6%** to **12.3%** Liquidity and Financial Resources (Million USD) | Indicator | As of March 31, 2025 | As of December 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $3.7 million | $2.5 million | | Net Current Assets | $4.2 million | $12.0 million | | Gearing Ratio | 64.7% | 47.6% | | Bank and Other Borrowings | $18.3 million | $20.6 million | - The weighted average annual interest rate for bank and other borrowings was **12.3%**, higher than **10.6%** at the end of 2023[56](index=56&type=chunk) [Employees and Remuneration Policy](index=26&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of March 31, 2025, the Group's employee count significantly decreased from **91** to **39**, while employee benefit expenses for the 15-month period were **$5 million**, representing **6.5%** of total revenue, largely consistent with the previous year's **$4.1 million** (6.3%) - As of March 31, 2025, the Group's employee count was **39**, a significant reduction from **91** as of December 31, 2023[58](index=58&type=chunk) - Employee benefit expenses for the fifteen-month period were **$5 million**, compared to **$4.1 million** for the year 2023[58](index=58&type=chunk) [Corporate Governance and Other Information](index=27&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section details the company's corporate governance practices and other relevant information [Compliance with the Corporate Governance Code](index=27&type=section&id=%E9%81%B5%E5%AE%88%E3%80%8A%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87%E3%80%8B) The company complied with most provisions of the Corporate Governance Code, with one deviation where the Chairman and Chief Executive Officer roles are held by the same person, Mr. Lam, an arrangement the Board believes ensures consistent leadership and efficient execution, balanced by other experienced directors - The company deviated from Corporate Governance Code Provision C.2.1, where the Chairman and Chief Executive Officer roles are held by the same person, Mr. Lam, an arrangement the Board believes promotes leadership consistency and execution efficiency, serving the overall interests of the company and its shareholders[60](index=60&type=chunk) [Final Dividend](index=27&type=section&id=%E6%9C%AB%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of a final dividend for the period ended March 31, 2025 - The Board does not recommend the payment of a final dividend for the period ended March 31, 2025[64](index=64&type=chunk) [Audit Committee](index=28&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, composed of three independent non-executive directors with Mr. Chan Kwok Kuen as Chairman, has reviewed the audited annual results for the period and confirmed their compliance with applicable accounting standards and disclosure requirements - The Audit Committee, comprising all independent non-executive directors, has reviewed the annual results and deemed them compliant with accounting standards and disclosure requirements[66](index=66&type=chunk)

Core Viewpoint - 康特隆科技预计在截至2025年3月31日的报告年度将录得综合净亏损介乎1150万美元至1300万美元，较2023年12月31日的净亏损970万美元增加约18%至33.3% [2] Financial Performance - 预计净亏损的主要原因包括经济及商业环境波动导致的非流动资产预期信用损失增加、无形资产摊销及应收账款净减值损失准备 [2] - 报告期涵盖十五个月，而截至2023年12月31日的报告期仅涵盖十二个月，这一变化也对财务结果产生影响 [2] Cash Flow Impact - 董事会强调，净减值准备属于非现金性质，对公司的现金流量没有重大影响 [3] - 公司仍在完成本报告年度的年度业绩，实际年度业绩可能与公告所披露的内容存在差异 [3]

Revenue Performance - Revenue for the twelve months ended December 31, 2024, is approximately US$62.4 million, representing a decrease of approximately 5.9% compared to US$66.3 million for the preceding period[18]. - The revenue breakdown shows that mobile devices and smart charging contributed US$31.4 million (50.2%), while motor control generated US$28.4 million (45.5%) for the period[17]. - Revenue for the twelve months ended December 31, 2024, was $62,419,000, a decrease of 5.4% from $66,316,000 in 2023[86]. - Revenue from contracts with customers for the twelve months ended December 31, 2024, was $62,419,000, a decrease of 5.4% from $66,316,000 in 2023[129]. - Revenue from Hong Kong increased to $51,842,000 in 2024 from $46,505,000 in 2023, representing an increase of 11.0%[126]. - Revenue from the PRC decreased significantly to $10,577,000 in 2024 from $19,811,000 in 2023, a decline of 46.6%[126]. Cost and Expenses - Cost of sales for the period is approximately US$60.0 million, a decrease of approximately 5.4% from US$63.4 million in the preceding period, aligning with the revenue decline[19]. - Selling and distribution expenses decreased to US$1.9 million from US$3.0 million, a reduction of approximately US$1.1 million due to decreased sales[24][28]. - General and administration expenses were US$5.1 million, down from US$5.8 million, primarily due to a US$0.5 million reduction in staff costs, accounting for 8.2% of revenue[25][29]. - Finance costs increased to approximately US$3.1 million from US$2.3 million, representing 5.0% of total revenue compared to 3.5% in the preceding period[26][30]. - Selling and distribution expenses decreased to $1,917,000 from $2,959,000 in 2023, a reduction of 35.2%[86]. - Finance costs increased to $3,113,000 from $2,284,000 in 2023, representing a rise of 36.3%[86]. Profit and Loss - Gross profit for the period was approximately US$2.4 million, down from US$2.9 million in the preceding period, with gross profit margins of 3.8% and 4.4% respectively[23][27]. - The Group's net loss after tax improved from US$9.7 million in the preceding period to a net loss of US$7.9 million for the period[32][37]. - Loss before income tax for the period was $7,764,000, an improvement from a loss of $8,649,000 in 2023[86]. - Loss for the period attributable to the owners of the Company was $7,948,000, compared to $9,749,000 in 2023, reflecting a reduction of 18.5%[86]. - Total comprehensive loss attributable to the owners of the company was $7,476,000 for the period, compared to $11,881,000 in the previous year, indicating a decrease of about 37.5%[88]. Financial Position - Non-current assets increased to $12,419,000 in 2024 from $11,046,000 in 2023, reflecting a growth of approximately 12.5%[90]. - The company's net assets decreased to $15,121,000 in 2024 from $22,597,000 in 2023, a decline of approximately 33.0%[91]. - Current liabilities totaled $32,164,000 as of December 31, 2024, compared to $31,177,000 in 2023, showing a slight increase of 3.2%[91]. - The company's reserves decreased from $21,180,000 in 2023 to $13,704,000 in 2024, a reduction of about 35.3%[91]. - The company’s total equity fell to $15,121,000 in 2024, down from $22,597,000 in 2023, indicating a decrease of approximately 33.0%[91]. Cash Flow and Liquidity - For the twelve months ended December 31, 2024, the company reported a net cash generated from operations of $2,167,000, compared to a net cash used of $7,242,000 in 2023, indicating a significant improvement[94]. - Cash flows from investing activities resulted in a net cash used of $2,450,000 in 2024, compared to $1,769,000 in 2023, reflecting increased investment expenditures[96]. - The company’s cash and cash equivalents at the end of the period increased to $2,557,000 in 2024 from $2,536,000 in 2023, showing stability in liquidity[96]. - The company incurred finance costs of $3,113,000 in 2024, up from $2,284,000 in 2023, indicating higher borrowing costs[94]. - The company recorded an exchange difference gain of $472,000 in 2024, a turnaround from a loss of $94,000 in 2023[88]. Corporate Governance and Compliance - The company believes that the current arrangement of having the same individual serve as both CEO and chairman is beneficial for consistent leadership[57]. - The company has complied with the Corporate Governance Code since its listing date[57]. - The unaudited condensed consolidated financial statements for the twelve months ended December 31, 2024, have been reviewed by the audit committee, which consists solely of independent non-executive directors[60]. - All directors confirmed compliance with the Model Code regarding securities transactions since the listing date up to the date of the report[58]. - The Group's financial reporting is in accordance with the Hong Kong Financial Reporting Standards and the applicable disclosure requirements of the Hong Kong Stock Exchange[110][113]. Shareholder Information - No interim dividend was declared for the twelve months ended December 31, 2024, consistent with the previous year[46][52]. - The Company maintained sufficient public float as required under the Listing Rules throughout the period[81]. - The Company has not purchased, sold, or redeemed any of its listed securities since the listing date up to the date of the second interim report[59]. - As of December 31, 2024, Mr. Lam Keung and Mr. Qing Haodong each hold 746,746,000 shares, representing 68.00% of the company's total shareholding[66]. Employee and Management Compensation - Total compensation paid to key management personnel decreased to $858,000 in 2024 from $2,162,000 in 2023, representing a reduction of approximately 60%[199]. - Short-term employee benefits for key management personnel fell to $830,000 in 2024, down from $2,080,000 in 2023, indicating a decline of about 60%[199]. - Pension scheme contributions for key management personnel decreased to $28,000 in 2024 from $82,000 in 2023, a drop of approximately 66%[199]. Related Party Transactions - A shareholder's loan of $1,282,000 was recorded in 2024, with no amount reported in 2023[199]. - The loan provided by Mr. Lam is non-interest bearing and is repayable in August 2026[199]. - The related companies P. Grand (BVI) Ltd. and Kingtech (BVI) Ltd. are controlled by Mr. Lam and Ms. Feng Tao, respectively[199].

Financial Performance - Revenue for the twelve months ended December 31, 2024, was $62,419 thousand, a decrease of 5.4% compared to $66,316 thousand for the same period in 2023[4] - Gross profit for the same period was $2,373 thousand, down from $2,934 thousand, reflecting a decline of 19.1%[4] - The net loss for the twelve months ended December 31, 2024, was $(7,948) thousand, an improvement from a net loss of $(9,749) thousand in the previous year, indicating a reduction of 20.5%[4] - The company reported a basic and diluted loss per share of $(0.72) for the twelve months ended December 31, 2024, compared to $(0.89) in the previous year, reflecting a 19.1% improvement[6] - The company reported revenue from the sale of IC products and electronic components of $62,419 thousand for the year ending December 31, 2024, compared to $66,316 thousand for the same period in 2023, representing a decrease of approximately 5.4%[32] - Total other income for the year ended December 31, 2024, was $78,000, a decrease of 59.4% compared to $193,000 for the year ended December 31, 2023[34] - Interest expenses for the year ended December 31, 2024, totaled $3,113,000, an increase of 36.2% from $2,284,000 in 2023[35] - The company recorded a net loss of $7.9 million for the year, improving from a net loss of $9.7 million in the prior period[84] Assets and Liabilities - Total assets decreased to $36,838 thousand in 2024 from $43,143 thousand in 2023, representing a decline of 14.6%[11] - Current liabilities increased slightly to $32,164 thousand in 2024 from $31,177 thousand in 2023, showing a rise of 3.2%[12] - The company’s equity decreased to $15,121 thousand in 2024 from $22,597 thousand in 2023, a decline of 33.0%[12] - Inventory decreased to $12,030 thousand in 2024 from $14,007 thousand in 2023, a reduction of 14.2%[11] - Trade receivables dropped significantly to $11,317 thousand in 2024 from $19,047 thousand in 2023, a decrease of 40.5%[11] - The company’s total liabilities increased to $13,893,000 as of December 31, 2024, from $12,715,000 in 2023[64] - The company's bank borrowings increased to $9,197,000 as of December 31, 2024, compared to $5,923,000 in 2023[64] - The asset-backed financial liabilities were approximately $8,888,000 as of December 31, 2024, compared to $4,933,000 on December 31, 2023[57] Revenue Breakdown - Revenue from customers in Hong Kong was $51,842 thousand for the year ending December 31, 2024, up from $46,505 thousand in 2023, indicating an increase of about 11.0%[30] - Revenue from customers in China decreased to $10,577 thousand in 2024 from $19,811 thousand in 2023, reflecting a decline of approximately 46.6%[30] Fiscal Year and Accounting Changes - The company has changed its fiscal year-end from December 31 to March 31, with the next fiscal year-end set for March 31, 2025[22] - The company has adopted new accounting standards effective from January 1, 2024, but these changes did not have a significant impact on the financial statements[26] Corporate Governance - The company has complied with the Corporate Governance Code since its listing on July 16, 2019, with ongoing reviews to enhance governance practices[100] - The board consists of experienced individuals, including two executive directors and three independent non-executive directors, ensuring diverse opinions in decision-making[100] - The company is committed to transparency and accountability to shareholders through effective corporate governance practices[100] Staff and Operations - The company employed approximately 62 staff members as of December 31, 2024, down from about 91 staff members in the previous year[88] - The company operates primarily in Hong Kong and China, with a single operating segment focused on the sale of IC products and electronic components[29] Dividends and Shareholder Information - The company did not declare or propose any interim dividends for the year ended December 31, 2024, consistent with 2023[42] - The company’s total issued and fully paid ordinary shares remained at 1,098,122,380 as of December 31, 2024, unchanged from 2023[65] Future Outlook - The company is focusing on emerging markets and providing eco-friendly and energy-saving solutions despite challenges in the semiconductor industry[70] - The company is actively exploring new growth areas to strengthen its future development amidst industry demand challenges[72]

Financial Performance - Revenue for the Period is approximately US$30.8 million, a decrease of approximately 6.9% compared to US$33.1 million for the Preceding Period[18]. - Gross profit for the Period is approximately US$2.4 million, with a gross profit margin of approximately 7.7%, down from 8.5% in the Preceding Period[19]. - Cost of sales for the Period is approximately US$28.4 million, a decrease of approximately 6.3% from US$30.3 million in the Preceding Period[18]. - Selling and distribution expenses decreased to US$1.2 million from US$1.6 million, a reduction of approximately US$0.4 million due to decreased sales[20]. - General and administration expenses decreased to US$2.5 million from US$3.1 million, primarily due to a reduction in staff costs by approximately US$0.9 million[21]. - Finance costs increased to approximately US$1.3 million from US$1.0 million, accounting for approximately 4.2% of total revenue compared to 3.0% in the Preceding Period[22]. - The Group's loss after tax changed from US$2.8 million in the Preceding Period to a net loss of US$2.7 million for the Period[28]. - Revenue for the six months ended June 30, 2024, was $30,775,000, a decrease of 7.9% compared to $33,087,000 for the same period in 2023[73]. - Gross profit for the same period was $2,377,000, down from $2,818,000, reflecting a gross margin decline[73]. - Loss for the period attributable to the owners of the Company was $2,834,000, compared to a loss of $2,713,000 in the previous year[75]. - Total comprehensive loss for the period attributable to the owners of the Company was $2,837,000, compared to $2,789,000 in the prior year[75]. Market Conditions - The Group's short-term results were challenged by a contraction in industry demand in the first half of 2024[14]. - The semiconductor industry has entered a downward cycle due to weak demand in the consumer market, leading to increased pressure on chip manufacturers to reduce inventory[14]. - The post-pandemic recovery of the domestic economy has been slower than expected, impacting overall business performance[14]. - The uncertainties in the global supply chain and economic conditions have created a challenging business environment[14]. - Demand for chips in high-power renewable energy, energy storage, industrial automation, and artificial intelligence remains high, presenting new development opportunities for semiconductor enterprises[14]. Business Strategy - The Group focuses on five major product categories: mobile devices and smart charging, motor control, sensors and automation, LED lighting, and RF power[17]. - The Group is actively exploring new growth areas to strengthen future development despite current market challenges[17]. - The Group provides IC application solutions and value-added services tailored to customer needs, emphasizing environmentally-friendly and energy-saving solutions[13]. - The Group's business is primarily focused on fast-growing and emerging market categories[13]. - The Group remains committed to being a stable supplier of integrated circuit products and solutions[17]. Financial Position - Current assets decreased to $41,704,000 as of June 30, 2024, from $43,143,000 as of December 31, 2023[77]. - Net assets as of June 30, 2024, were $19,760,000, down from $22,597,000 at the end of 2023[78]. - Total equity decreased to $19,760,000 from $22,597,000, reflecting a decline in reserves[78]. - The company's cash flows from operating activities resulted in a net cash used of $4,452,000 for the six months ended June 30, 2024, compared to a net cash generated of $2,870,000 in 2023[80]. - Cash and cash equivalents at the end of the period were $1,667,000, a decrease from $3,382,000 at the end of June 2023[82]. Employee and Management Information - Total number of employees as of 30 June 2024 is approximately 87, down from approximately 91 as of 31 December 2023[37]. - Total compensation paid to key management personnel was US$153,000 for the six months ended June 30, 2024, down from US$202,000 in the same period of 2023[144]. - The company’s short-term employee benefits amounted to US$145,000 for the six months ended June 30, 2024, compared to US$191,000 in the same period of 2023[144]. Shareholder Information - The interests of Mr. Lam Keung and Mr. Qing Haodong in the shares of the Company are 746,746,000 shares each, representing approximately 68.00% of the shareholding[52]. - As of June 30, 2024, P. Grand (BVI) Ltd. holds 662,746,000 shares, representing 60.35% of the total shares[57]. - Ms. Feng Tao has an interest in a controlled corporation with 746,746,000 shares, accounting for 68.00% of the total shares[57]. - The issued and fully paid ordinary shares remained at 1,098,122,380 shares as of June 30, 2024, unchanged from the same date in 2023[142]. - The total authorized share capital remained at 2,000,000,000 shares as of June 30, 2024, unchanged from the previous year[142]. Compliance and Governance - The Company has complied with the Corporate Governance Code since its listing on July 16, 2019[42]. - The Group has not purchased, sold, or redeemed any of its listed securities since the Listing Date[45]. - The roles of chairman and chief executive officer are held by the same individual, Mr. Lam, which the Board believes ensures consistent leadership[42]. - The Group has adopted the Model Code for securities transactions by Directors and all Directors confirmed compliance[44]. - There are no significant events after the reporting period that need to be disclosed[39]. Debt and Liabilities - As of 30 June 2024, bank borrowings amounted to approximately US$9.0 million, up from US$5.0 million as of 31 December 2023[29]. - Bank borrowings increased to $16,795,000 as of June 30, 2024, from $12,715,000 as of December 31, 2023, representing an increase of approximately 32.5%[137]. - The total borrowings from discounted bills with recourse were approximately US$3,355,000 as of June 30, 2024, compared to US$2,504,000 as of December 31, 2023, reflecting a 34% increase[141]. - The Group's asset-backed financial liabilities increased significantly to approximately US$8,976,000 as of June 30, 2024, compared to US$4,933,000 as of December 31, 2023, reflecting a rise of approximately 82.69%[121]. - The Group's allowance for expected credit loss on trade receivables increased to US$1,277,000 as of June 30, 2024, from US$1,180,000 as of December 31, 2023, which is an increase of approximately 8.24%[117].

Financial Performance - Revenue for the six months ended June 30, 2024, was $30,775,000, a decrease of 7.9% compared to $33,087,000 for the same period in 2023[2] - Gross profit for the same period was $2,377,000, down 15.7% from $2,818,000 in the previous year[2] - The company reported a loss of $2,834,000 for the six months ended June 30, 2024, compared to a loss of $2,713,000 in the prior period, indicating a 4.5% increase in loss[2] - Revenue from the sale of IC products and electronic components for the six months ended June 30, 2024, was $30,775 thousand, a decrease of 7.9% compared to $33,087 thousand for the same period in 2023[15] - The company reported a pre-tax loss before income tax of $28,221 thousand for the six months ended June 30, 2024, compared to $29,974 thousand for the same period in 2023, indicating a decrease of 5.8%[18] - The company recorded a net loss of $2.7 million for the period, compared to a loss of $2.8 million in the previous period[47] Assets and Liabilities - Total assets as of June 30, 2024, were $53,360,000, a decrease from $54,189,000 as of December 31, 2023[5] - Current liabilities increased to $31,732,000 as of June 30, 2024, compared to $31,177,000 at the end of 2023, reflecting a 1.8% rise[5] - The company's cash and cash equivalents decreased to $1,667,000 from $2,536,000, representing a decline of 34.3%[5] - The net asset value as of June 30, 2024, was $19,760,000, down from $22,597,000 at the end of 2023, a decrease of 12.3%[6] - The company’s inventory decreased to $9,968,000 from $14,007,000, a significant reduction of 28.8%[5] - Total trade receivables amounted to $22,564,000 as of June 30, 2024, an increase from $19,047,000 as of December 31, 2023[28] - As of June 30, 2024, trade receivables (net of expected credit loss provisions) amounted to $18,578,000, an increase from $16,277,000 as of December 31, 2023[30] - The aging analysis of trade receivables shows that amounts overdue by 1 to 30 days increased significantly to $14,844,000 from $5,078,000[30] - The company has discounted trade receivables with a book value of approximately $6,039,000 as of June 30, 2024, compared to $5,781,000 as of December 31, 2023[29] Financing and Costs - Total financing costs for the six months ended June 30, 2024, amounted to $1,345 thousand, an increase of 31.4% from $1,024 thousand for the same period in 2023[17] - Bank interest income decreased to $3 thousand for the six months ended June 30, 2024, down from $9 thousand in the same period of 2023, a decline of 66.7%[16] - The company has a loan of approximately RMB 6,000,000 (about $826,000) with a fixed interest rate of 3.15%, due in September 2024[35] - The total amount of outstanding discount notes was approximately $3,355,000 as of June 30, 2024, up from $2,504,000 as of December 31, 2023[36] - The company’s bank loans increased to approximately $9 million as of June 30, 2024, from $5 million on December 31, 2023[47] - The company’s bank borrowings are secured by certain policies and bank deposits, with interest rates fluctuating between 4.53% and 7.75%[34] Operational Focus and Strategy - The company plans to continue focusing on customized reference designs for integrated circuits and other electronic components in the Hong Kong and China markets[8] - The company is focusing on emerging markets and environmentally friendly solutions despite challenges in the semiconductor industry[40] - The company has identified a single operating segment focused on the sale of IC products and electronic components, with all revenue derived from external customers based in Hong Kong and China[14] Management and Governance - The board approved the unaudited financial statements for publication on August 28, 2024[8] - The company applied several amendments to the Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial statements for the current or prior periods[10] - The company has not applied any amendments that have not yet come into effect for the current accounting period[10] - The company’s management made significant judgments and estimates in preparing the financial statements, with no major changes from those applied in the consolidated financial statements for the year ended December 31, 2023[13] - The total remuneration paid to key management personnel was $153,000 for the six months ended June 30, 2024, compared to $202,000 for the same period in 2023[38] Dividends and Shareholder Returns - The company did not declare or recommend any interim dividends during the reporting period, consistent with 2023[22] - The company did not declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[53] Compliance and Reporting - The company has adopted the standard code of conduct for securities trading as per the Listing Rules Appendix 10, and all directors confirmed compliance since the listing date[56] - No purchase, sale, or redemption of the company's listed securities has occurred by the company or its subsidiaries since the listing date[57] - The group's unaudited condensed consolidated financial statements for the six months ended June 30, 2024, have been reviewed by the audit committee, which agrees with the adopted audit policies and practices[58] - No stock options have been granted, exercised, lapsed, or cancelled under the share option scheme since its adoption date[59] - The company has maintained sufficient public float as required by the Listing Rules throughout the reporting period[60] - The company will publish its performance results on the Hong Kong Stock Exchange website and its own website as required by the Listing Rules Appendix 16[61]

[Supplemental Announcement on Use of Rights Issue Proceeds](index=1&type=section&id=Supplemental%20Announcement%20on%20Use%20of%20Rights%20Issue%20Proceeds) This announcement supplements the 2023 annual report, detailing the full utilization of **HK$17.8 million** net proceeds from the rights issue by December 31, 2023, with **90%** allocated to IC financial payments and **10%** to working capital - This announcement provides supplementary information on the use of net proceeds from the rights issue, with all other contents of the 2023 annual report remaining unchanged except as disclosed[1](index=1&type=chunk)[2](index=2&type=chunk) - As of December 31, 2023, the net proceeds from the rights issue were fully utilized[1](index=1&type=chunk) Details of Net Proceeds from Rights Issue (As of December 31, 2023) | Purpose | Percentage of Total | Net Proceeds (HK$ Million) | Amount Utilized as of 2022/12/31 (HK$ Million) | Actual Usage in 2023 (HK$ Million) | Cumulative Actual Usage as of 2023/12/31 (HK$ Million) | | :--- | :--- | :--- | :--- | :--- | :--- | | Financial Payments for IC Purchases | 90% | 16.0 | 11.1 | 4.9 | 16.0 | | Working Capital | 10% | 1.8 | 1.8 | — | 1.8 | | **Total** | **100%** | **17.8** | **12.9** | **4.9** | **17.8** |

Financial Performance - In 2023, the Group recorded revenue of US$66.3 million, a decrease compared to 2022, with a loss attributable to owners of the Company amounting to US$9.7 million, up from a loss of US$1.6 million in 2022[13]. - Revenue for 2023 was $66,316,000, a decrease of 45.5% compared to $121,710,000 in 2022[24]. - Gross profit for 2023 was $2,934,000, down 65.0% from $8,396,000 in 2022[24]. - Loss attributable to owners of the Company increased to $9,749,000 in 2023, a 515.5% increase from $1,584,000 in 2022[24]. - Total assets decreased by 17.7% to $54,189,000 in 2023 from $65,805,000 in 2022[24]. - Total equity fell by 34.5% to $22,597,000 in 2023 compared to $34,478,000 in 2022[24]. - The gross profit margin for 2023 was 4.4%, a decrease of 36.2% from 6.9% in 2022[24]. - Basic and diluted loss per share was (6.88 HK cents) in 2023, a 355.6% increase from (1.51 HK cents) in 2022[24]. - Total revenue for the year ended December 31, 2023, decreased by 45.5% to US$66.3 million, primarily due to weak demand in the consumer market and a downward cycle in the semiconductor industry[54][57]. - Gross profit for the same period decreased by 65.0% year-on-year to US$2.9 million, with gross profit margin dropping from 6.9% to 4.4% due to lower margins in motor control[55][58]. - The Group recorded a net loss of $9.7 million for the year, a 515.5% increase from the loss of $1.6 million in the previous year[72]. Market Outlook - The semiconductor market is expected to see steady expansion in 2024, driven by emerging fields such as automotive electronics, high-power renewable energy, energy storage, and industrial automation[17]. - The Group anticipates stable sales of products in 2024, supported by strong national policies and accelerated localization in the semiconductor industry[17]. - The overall market demand for semiconductors is projected to remain stable throughout 2024[17]. - The semiconductor industry is expected to maintain a stable demand level due to the growing needs for cognitive and intelligent network terminals[18]. - The traditional consumer electronics market is experiencing increased demand for 5G smartphones and wearable devices, which is driving chip demand growth[18]. - Continuous improvement in 5G penetration and digital transformation across industries is leading to higher consumer demand for advanced network terminals with high-performance and low-consumption computing[18]. Operational Strategy - The Group is focusing on transformation and upgrading to better meet the demands of customers in the manufacturing sector[14]. - The Group is enriching its product categories by developing new products and improving service capabilities to enhance customer engagement[14]. - The Group maintained good relationships with suppliers to seize opportunities arising from the semiconductor market development[14]. - The Group aims to strengthen its market position in the IC application solutions industry by increasing market share and enhancing service quality[27]. - The management team is focused on implementing policies and procedures to improve operational efficiency and business performance[117]. - The company is actively engaging with external resources, including logistics companies and governmental agencies, to optimize operations[117]. Expenses and Financial Management - Selling and distribution expenses amounted to US$3.0 million, comparable to 2022[61]. - General and administrative expenses increased by US$0.5 million to US$5.8 million, mainly due to higher professional and consultant fees[63]. - Finance costs rose to US$2.3 million, an increase of US$0.7 million, attributed to higher bank borrowings and interest rates[64]. - Employee benefit expenses totaled $4.1 million, accounting for 6.3% of total revenue, compared to 3.9% in 2022[77]. - The gearing ratio increased to 47.6% from 39.1% in 2022, with total borrowings amounting to $12.7 million, compared to $11.1 million in the previous year[74]. - The annual weighted average interest rate on bank and other borrowings was 12.6%, significantly higher than 6.9% in 2022[75]. Leadership and Management - The company is led by Mr. Lam, who has over 27 years of experience in the IC and semiconductor industry, overseeing overall management and strategic planning[96]. - Mr. Qing, with over 22 years of experience in the IC and semiconductor industry, is responsible for the overall marketing activities and liaising with electronics manufacturers[101]. - Mr. Mai, who has over 21 years of experience in semiconductor technical solutions, oversees the design and R&D functions of the company[110]. - The company has a strong leadership team with extensive experience in the semiconductor industry, ensuring effective management and strategic direction[104]. - The diverse expertise of the board members contributes to the company's strategic direction and market expansion efforts[128][134]. - The management team is focused on strategic planning and overall supervision to drive business growth and operational efficiency[145][161]. Corporate Governance - The company is committed to maintaining high standards of corporate governance through experienced directors and management[128]. - The company has appointed several independent non-executive directors with extensive backgrounds in finance and management, enhancing governance and oversight[128][130][136]. - The financial management team has a strong background in both public and private sectors, which supports strategic decision-making[124][133]. Industry Challenges - The Company operates in a highly competitive industry with rapid changes in technology and market trends, necessitating constant adaptation[195]. - Economic and political policies of the PRC government may impact the Group's operations and the overall global economy[196]. - The industry in which the company operates is highly competitive, with rapid changes in market trends and customer preferences[199]. - Continuous technological advancements in hardware models and software features are essential for the company to meet evolving market demands[199]. - Any changes in the Chinese government's economic strategies and policies could negatively impact the global economy and all industries in which the company operates[200].

Financial Performance - For the year ended December 31, 2023, the group's revenue was approximately $66.3 million, a decrease of 45.5% compared to $121.7 million for the year ended December 31, 2022[3]. - The group incurred a net loss of approximately $9.7 million for the year ended December 31, 2023, compared to a net loss of $1.6 million in 2022[3]. - Basic loss per share for the year ended December 31, 2023, was 6.88 HK cents, compared to 1.51 HK cents in 2022[3]. - Gross profit for the year ended December 31, 2023, was $2.9 million, down from $8.4 million in 2022, reflecting a gross margin decrease[5]. - Total revenue for the year ended December 31, 2023, decreased by 45.5% to $66.3 million, primarily due to weak consumer market demand and a downturn in the semiconductor industry[53]. - Gross profit for the same period decreased by 65.0% to $2.9 million, with the gross margin dropping from 6.9% to 4.4% due to lower profits from motor control[54]. - The company recorded a net loss of $9.7 million for the year, an increase of 515.5% from a loss of $1.6 million in the previous year[61]. Assets and Liabilities - Total assets decreased to $54.2 million as of December 31, 2023, from $65.8 million in 2022[6]. - Current assets decreased to $43.1 million as of December 31, 2023, from $53.3 million in 2022, primarily due to a reduction in inventory and trade receivables[6]. - The group reported a total equity of $22.6 million as of December 31, 2023, down from $34.5 million in 2022[6]. - Total trade receivables decreased to $19,047,000 in 2023 from $24,099,000 in 2022, reflecting a reduction of approximately 20.9%[42]. - The net amount of trade receivables was $16,277,000 in 2023, down from $20,261,000 in 2022, a decrease of about 19.7%[42]. - The provision for expected credit losses on trade receivables increased to $1,180,000 in 2023 from $939,000 in 2022, representing a rise of 25.7%[45]. Dividends and Shareholder Returns - The board did not recommend the payment of a final dividend for the year ended December 31, 2023[3]. - The company did not declare or recommend any dividends for the year, consistent with 2022[35]. - The board of directors does not recommend the payment of a final dividend for the year ending December 31, 2023[73]. Costs and Expenses - Financing costs increased to $2.3 million for the year ended December 31, 2023, compared to $1.6 million in 2022[5]. - Employee benefits expenses for the year amounted to $4.1 million, representing 6.3% of total revenue, compared to 3.9% in 2022[66]. - The company’s employee benefits expenses, including director remuneration, were approximately $1,761,000 in 2023, compared to $2,387,000 in 2022, a decrease of about 26.2%[30]. - The company incurred $62,148,000 in cost of goods sold for inventory recognized as expenses in 2023, down from $112,111,000 in 2022, a reduction of approximately 44.7%[6]. Income and Other Financial Metrics - The company reported a total of $193,000 in other income for 2023, a decrease of 15.7% from $229,000 in 2022[25]. - Other income for the year was $0.2 million, mainly consisting of government subsidies and interest income from life insurance deposits[55]. - Interest expenses increased to $2.284 million in 2023, up 47% from $1.555 million in 2022[28]. - The deferred tax expense for 2023 was $1,097,000, compared to a tax credit of $594,000 in 2022, indicating a significant shift in tax position[31]. Operational Insights - Revenue from mobile devices and smart charging was $32.271 million, down 52.5% from $67.947 million in 2022[20]. - Revenue from motor control products decreased by 33.6% to $26.612 million from $40.149 million in 2022[20]. - Revenue from major customers included $15.203 million from Customer A and $7.500 million from Customer B, representing significant contributions to total revenue[20]. - The company has identified only one operating segment, which is the sale of IC products and electronic components, for resource allocation and performance evaluation[18]. Compliance and Governance - The independent auditor, Deloitte, confirmed that the financial figures for the year ending December 31, 2023, align with the audited consolidated financial statements[74]. - The audit committee reviewed the audited annual performance and confirmed compliance with applicable accounting standards and regulations[76]. - The remuneration committee is responsible for recommending the remuneration policies for all directors and senior management[77]. - The nomination committee has established a board diversity policy, recognizing the benefits of diversity in board membership[80]. - There are no significant post-reporting date events for the group[82]. - The annual report for the year ending December 31, 2023, will be sent to shareholders and published on the respective websites[81]. Future Outlook - The company expects no significant impact from the adoption of new accounting standards on its consolidated financial statements for the initial application year[16]. - The company has not early adopted any new accounting standards that are issued but not yet effective, anticipating no major impact on financial statements[16].

Revenue and Profitability - Revenue for the six months ended June 30, 2023, was approximately US$33.1 million, a decrease of approximately 54.5% compared to US$72.8 million for the same period in 2022[20]. - The decline in revenue was primarily attributed to a drop in business within the mobile devices and smart charging category[20]. - The Group recorded a gross profit of approximately US$2.8 million for the Period, down from US$5.7 million in the Preceding Period, with gross profit margins of 8.5% and 7.9% respectively[25][29]. - The company reported a loss before income tax of US$2,710,000, compared to a profit of US$1,601,000 in the previous year[97]. - Loss attributable to the owners of the Company for the period was $2,713,000, compared to a profit of $1,404,000 in 2022[99]. - Basic and diluted loss per share was (1.91) HK cents, a decline from earnings of 1.35 HK cents per share in the prior year[97]. - Total comprehensive loss for the period attributable to the owners of the Company was $2,789,000, compared to a total comprehensive income of $1,064,000 in 2022[100]. Expenses and Costs - Cost of sales for the same period was approximately US$30.3 million, representing a decrease of approximately 54.8% from US$67.0 million in the previous period[21]. - Selling and distribution expenses increased to US$1.6 million from US$1.4 million, primarily due to staff costs rising to approximately US$1.0 million (from US$923,000) in the Preceding Period[26][30]. - General and administration expenses rose to US$3.1 million from US$2.0 million, with staff costs increasing to approximately US$1.4 million (from US$1.1 million), and exchange losses increasing to approximately US$0.4 million (from US$0.1 million)[27][31]. - Finance costs increased to approximately US$1.0 million from US$0.8 million, accounting for 3.1% of total revenue compared to 1.1% in the Preceding Period[28][32]. Financial Position - Current assets decreased to $44,532,000 as of June 30, 2023, from $53,259,000 at the end of 2022[102]. - Net current assets were $18,176,000, down from $22,040,000 at the end of 2022[102]. - Total equity decreased to $31,689,000 as of June 30, 2023, from $34,478,000 at the end of 2022[104]. - As of June 30, 2023, bank borrowings amounted to approximately US$3.3 million, slightly down from US$3.4 million at the end of 2022[36][41]. - Lease liabilities decreased to approximately US$280,000 from US$489,000 as of December 31, 2022[37][42]. Market and Industry Trends - The semiconductor industry is experiencing a downward cycle due to weak demand in the consumer market, but high demand remains in high-power renewable energy, energy storage, industrial automation, and artificial intelligence sectors[11]. - The ongoing systematic destocking cycle in the semiconductor industry presents new development opportunities for semiconductor enterprises[11]. - The Group is actively exploring new growth areas to strengthen future development despite short-term challenges in industry demand[12]. - The Group's proactive approach to market challenges aims to build strength for future growth[12]. Corporate Governance and Shareholding - The company has adopted good corporate governance practices to ensure transparency and accountability to shareholders[60]. - The board believes that the current arrangement of having the same person as CEO and Chairman is beneficial for consistent leadership[61]. - The Company maintained sufficient public float as required under the Listing Rules throughout the reporting period[92]. - The Board resolved not to declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[49][55]. Employee and Operational Metrics - The total number of employees increased to approximately 113 from 107 as of December 31, 2022, with remuneration aligned to market trends and individual performance[45][51]. - Employee benefit expenses decreased to US$2,138,000 in 2023 from US$2,572,000 in 2022, reflecting a reduction of approximately 17%[167]. Trade Receivables and Financial Liabilities - The Group's trade receivables, net, decreased to US$15,513,000 as of June 30, 2023, from US$20,261,000 as of December 31, 2022[184]. - The total amount of trade and bills receivables was US$18,435,000 as of June 30, 2023, compared to US$24,099,000 as of December 31, 2022[184]. - The Group's allowance for expected credit loss on trade receivables was US$858,000 as of June 30, 2023, slightly down from US$939,000 as of December 31, 2022[184]. - The asset-backed financial liabilities amounted to approximately US$3,192,000 as of June 30, 2023, down from US$3,240,000 as of December 31, 2022[190]. Other Financial Information - The Group has only one operating segment, which is the sale of IC products and electronic components, including bundled services[134]. - The financial statements have been prepared in accordance with Hong Kong Accounting Standard 34 and applicable disclosure provisions[118]. - The Group's functional currency is Hong Kong dollars, while subsidiaries in the BVI and Hong Kong use US dollars, and those in the PRC use Renminbi[116]. - The Group's accounting policies remain consistent with those adopted in the annual financial statements for the year ended December 31, 2022[120].