康特隆科技有限公司 (於開曼群島註冊成立的有限公司) 股份代號 INTERIM REPORT 2021 中期報告 C M Y CM MY CY CMY K ai163168074537_Contel Technology IR2021 Cover output.pdf 1 15/9/2021 下午12:39 CONTENTS 目錄 | Corporate Information | 2 | | --- | --- | | 公司資料 | | | Management Discussion and Analysis | 4 | | 管理層討論與分析 | | | Other Information | 15 | | 其他資料 | | | Condensed Consolidated Statement of Profit or Loss | 23 | | 簡明綜合損益表 | | | Condensed Consolidated Statement of Comprehensive Income | 24 | | 簡明綜合全面收益表 | | | Condensed Consolidated Statement of ...

Financial Performance - Revenue for the year ended December 31, 2020, was USD 153,919,000, representing a 51.7% increase from USD 101,461,000 in 2019[18]. - Gross profit decreased to USD 9,375,000 in 2020, down 18.3% from USD 11,474,000 in 2019[18]. - Profit attributable to owners of the Company was USD 2,021,000, a decline of 19.6% compared to USD 2,513,000 in the previous year[18]. - Total assets increased by 15.9% to USD 67,789,000 in 2020 from USD 58,465,000 in 2019[18]. - Total liabilities rose by 25.0% to USD 35,837,000 in 2020, up from USD 28,676,000 in 2019[18]. - Cash and cash equivalents decreased by 3.5% to USD 6,042,000 in 2020 from USD 6,263,000 in 2019[18]. - The gross profit margin fell to 6.1% in 2020, down from 11.3% in 2019, a decrease of 5.2 percentage points[18]. - The net profit margin also declined to 1.3% in 2020 from 2.5% in 2019, a drop of 1.2 percentage points[18]. - Revenue from mobile devices and smart charging accounted for 75.7% of total revenue in 2020, increasing from 75.4% in 2019[28]. - The sensors and automation category saw significant growth, with revenue increasing to USD 14,480,000 in 2020 from USD 4,633,000 in 2019, representing a 212.5% increase[28]. - Total revenue for the year ended December 31, 2020, increased by 51.7% to US$153.9 million, driven mainly by sales growth in mobile devices and smart charging applications[49]. - Gross profit for the same period decreased by 18.3% year-on-year to US$9.4 million, with the gross profit margin declining from 11.3% to 6.1% due to lower margins on main chips used in IoT communication modules[50][54]. - Other income rose to US$891,000, primarily due to exchange gains and government grants[51][55]. - Selling and distribution expenses amounted to US$2.5 million, an increase of approximately US$0.8 million compared to 2019, attributed to higher staff salaries and increased postage and courier charges[52][56]. - General and administrative expenses increased by 60.8% to US$4.0 million, primarily due to higher director's remuneration and staff salaries[59]. - Profit for the year decreased by 19.6% from US$2.5 million in 2019 to US$2.0 million in 2020[62]. - Cash and cash equivalents as of December 31, 2020, were US$6.0 million, down from US$6.3 million in 2019[68]. - The gearing ratio increased to 37.3% as of December 31, 2020, compared to 18.9% in 2019[69]. - Bank loans increased significantly to US$7.1 million in 2020 from US$1.4 million in 2019[69]. - The annual interest charge on bank borrowings ranged from 1.25% to 4.19% in 2020, down from 4.2% to 5.0% in 2019[70]. Strategic Focus and Market Trends - The Group implemented cost control measures and strengthened its product lineup in response to the challenges posed by the COVID-19 pandemic[11]. - The focus remains on semiconductor products, emphasizing quality, environmentally friendly, and energy-saving solutions[12]. - The Group plans to continue investing in circuitry design and developing prototype evaluation boards to meet customer specifications[12]. - There is optimism in the semiconductor industry driven by the adoption of 5G technology, with a strong demand for related semiconductors expected[14]. - The Group will expand its 5G product portfolio to enhance competitiveness based on market needs[14]. - The commercialized 5G technology is now available in many cities in China, indicating a growing market for 5G applications[14]. - The Company aims to explore external strategic investments and cooperation to diversify its product offerings and stabilize revenue[13]. - The technical team has accumulated significant experience in developing application solutions, which will be leveraged for future business opportunities[13]. - The Group's RF power products are utilized in cable television and broadband networks, serving customers engaged in broadcasting and signal transmissions[43][47]. - Application solutions for sensor ICs include radar sensors for automotive, drones, security systems, traffic monitoring, and smart lighting[38][40]. - LED lighting systems are designed to be energy-efficient and cost-effective, with a focus on providing dimming features for LED lamps[44][46]. - The Group's RF power equipment includes RF signal sources, amplifiers, and attenuators, essential for generating and stabilizing RF power[43][47]. - The Group's automation solutions assist customers in automatically detecting and reacting to environmental changes[38][40]. Investments and Acquisitions - The Company will focus on enhancing its financial position through various application solution developments[13]. - The net proceeds from the listing amounted to approximately US$8.7 million, with 84.1% utilized for financing revolving purchase payments[74]. - The Group acquired a 9.07% equity interest in Cosmic Paramount Limited for approximately US$6.446 million[77]. - The investment in Cosmic is classified as financial assets at fair value of US$6.16 million, representing about 9.09% of total assets as of December 31, 2020[78]. - The investment in Cosmics is considered a long-term strategic investment aimed at enhancing the Group's competitiveness through supply chain solutions[80]. Management and Governance - The Group's board consists of four executive directors and three independent non-executive directors[95]. - Mr. Qing has over 19 years of experience in the IC and semiconductor industry, having joined Chengdu Flyring in November 2000 as a sales manager[109]. - Mr. Mai has over 18 years of experience in providing technical solutions in semiconductors and oversees the design and R&D functions of the Group[115][116]. - Ms. Cheng has over 16 years of experience in the semiconductor industry and is responsible for overseeing business and administrative functions[121][122]. - Mr. Dan has over 20 years of experience in the information technology industry and has held various consultancy roles[129][130]. - The Group has been cooperating to jointly manage and control operations in Hong Kong and the PRC since 2011[111]. - Mr. Qing is deemed to be interested in all shares held by his spouse through Kingtech, indicating potential influence in company operations[111]. - The Group's management team includes individuals with extensive backgrounds in both technical and administrative roles, enhancing operational efficiency[115][121]. - The company has a strong focus on R&D, with dedicated leadership overseeing these functions to drive innovation[115][116]. - The management team has a diverse range of experiences across various sectors, including military, sales, and technology consulting, contributing to a well-rounded leadership[116][130]. - The Group's strategic management structure is designed to facilitate collaboration across different functions and levels within the organization[122]. Risks and Challenges - The Group faces significant financial risks related to foreign currency, trade receivables, liquidity, and interest rates, as detailed in note 33 of the consolidated financial statements[192]. - The Group operates in a highly competitive industry with rapid changes in market trends and technological advancements, necessitating constant adaptation to meet customer demands[193]. - Future economic and political policies of the PRC government may adversely impact the Group's operations and the overall global economy[194]. - Global economic and political uncertainties, such as Brexit and U.S. presidential elections, may have both short-term and long-term effects on the global economy and capital markets, impacting the Group's performance[200]. Corporate Governance and Policies - The Group's remuneration policies are regularly reviewed to align with industry pay levels, including discretionary bonuses based on individual performance[87]. - The Group has adopted a Share Option Scheme to incentivize employees[88]. - The Group's principal activity is investment holding, with subsidiaries primarily engaged in the sales of electronic components and storage systems integration[172]. - For the year ended December 31, 2020, the Group's financial results are detailed in the consolidated statement of profit or loss and other comprehensive income[174]. - The Board has resolved not to recommend the payment of a final dividend for the year ended December 31, 2020[183]. - A discussion and analysis of the Group's performance during the year ended December 31, 2020, and key factors affecting its results are included in the "Management Discussion and Analysis" section[184]. - No important events affecting the Group have occurred since December 31, 2020[186]. - A summary of the results and assets and liabilities of the Group for the last five financial years is provided in the annual report[175]. - The Group's subsidiaries are listed along with their places of incorporation and principal activities in the consolidated financial statements[173]. - The Group's share capital movement details for the year ended December 31, 2020, are outlined in note 28 of the consolidated financial statements[176]. - The Group's business review and future development indications are discussed in the "Chairman's Statement" and "Management Discussion and Analysis" sections[185]. - The Group has been actively involved in the sales and integration of storage systems, reflecting its strategic focus on electronic components[172].

Revenue Growth - For the six months ended June 30, 2020, total revenue was USD 62.961 million, a significant increase from USD 36.691 million for the same period in 2019, representing a growth of 71.7%[23] - Revenue for the six months ended June 30, 2020, was $62,961,000, representing a 71.8% increase from $36,691,000 for the same period in 2019[195] - Revenue from mobile devices and smart charging accounted for 79.7% of total revenue, increasing from 65.7% in the previous period, with sales rising from USD 24.091 million to USD 50.194 million[23] - Mobile devices and smart charging contributed USD 3,530,000, accounting for 73.6% of total revenue, up from 50.2% in the previous year[25] - Revenue from Hong Kong was $41,226,000, up from $21,964,000, indicating an increase of 87.6% year-over-year[195] - Revenue from the PRC reached $21,735,000, compared to $14,727,000, reflecting a growth of 47.5% year-over-year[195] Profitability - Gross profit for the six months ended June 30, 2020, is to be detailed in the subsequent sections, indicating a focus on profitability alongside revenue growth[23] - Gross profit for the same period was $4,794,000, up from $3,830,000, indicating a gross margin improvement[151] - Profit before income tax for the Period is approximately US$2,183,000, compared to US$656,000 in the preceding period[61] - Profit for the period attributable to shareholders is approximately US$1,654,000, up from US$406,000 in the preceding period[63] - The profit for the period ended June 30, 2020, was US$1,654,000, compared to US$406,000 for the same period in 2019, representing a significant increase of 307%[160] - Total comprehensive income for the period was US$1,641,000, up from US$407,000 in the previous year, indicating a growth of 303%[160] Expenses and Costs - Cost of sales for the Period is approximately US$58,167,000, an increase of approximately 77.0% from US$32,861,000 in the preceding period[48] - Selling and distribution expenses increased slightly to approximately US$715,000 from US$708,000 in the preceding period[54] - General and administration expenses rose to approximately US$1,430,000, primarily due to higher staff costs and depreciation[55] - The company incurred finance costs of US$518,000 for the six months ended June 30, 2020, slightly down from US$525,000 in the previous year[162] Market Position and Strategy - The Group aims to strengthen its market position in the IC application solutions industry by increasing market share and enhancing service quality, which is expected to drive sustainable growth[18] - Future strategies may include further market expansion and potential new product developments, although specific details are not provided in the current report[10] - The Group plans to diversify its business strategy by expanding into telecom, automotive, and industrial markets, in addition to consumer electronics, and will evaluate potential acquisitions to enhance revenue and profit growth[107] - The Group's focus on environmentally-friendly and energy-saving solutions aligns with emerging market trends, positioning it well for future opportunities[17] Financial Position - The total equity of the Group increased to approximately US$31,430,000 as of June 30, 2020, compared to US$29,789,000 as of December 31, 2019[81] - The company’s total equity attributable to owners increased to US$31,430,000 as of June 30, 2020, from US$29,789,000 at the beginning of the year, a growth of 5.5%[160] - Current liabilities rose to $32,146,000 from $28,397,000, indicating a 13.1% increase[156] - The total number of employees as of June 30, 2020, was approximately 101, a slight decrease from 105 at the end of 2019[72] Cash Flow and Liquidity - Cash generated from operating activities for the six months ended June 30, 2020, was US$2,473,000, compared to US$1,083,000 for the same period in 2019, reflecting an increase of 128%[162] - The company reported a net cash increase of US$1,238,000 in cash and cash equivalents, compared to US$815,000 in the same period last year, marking a rise of 52%[164] - The company’s cash and cash equivalents at the end of the period stood at US$7,474,000, up from US$3,672,000 at the end of June 2019, representing a growth of 103%[164] Corporate Governance - The Company has complied with the Corporate Governance Code since its listing on July 16, 2019, ensuring transparency and accountability to shareholders[113] - The Board believes that combining the roles of CEO and Chairman provides consistent leadership, supported by a diverse Board structure[113] - The audit committee has reviewed the unaudited interim financial statements for the six months ended June 30, 2020, confirming adherence to auditing policies[119] Future Outlook - Future demand for semiconductors is expected to increase due to lasting impacts from the COVID-19 pandemic on internet and mobile services[103] - The development of 5G technology is expected to create new market opportunities for electronic products, driven by government initiatives to expand 5G applications and infrastructure[106][109] - The Group aims to strengthen its existing business segments and explore new markets by leveraging its comparative advantages and adapting to market changes[107]

Financial Performance - For the year ended December 31, 2019, revenue amounted to US$101.5 million, representing an increase of 50.8% compared to US$67.3 million in 2018[13] - Profit attributable to shareholders decreased by 3.8% to US$2.5 million, down from US$2.6 million in 2018, primarily due to listing expenses of US$2.7 million incurred during the year[13] - Basic earnings per share for 2019 were 2.8 HK cents, a decrease of 17.6% compared to the previous year[13] - Gross profit for 2019 was USD 11,474,000, a 22.0% increase from USD 9,405,000 in 2018[33] - Core net profit attributable to owners of the Company (excluding listing expenses) increased by 25.7% to USD 5,222,000 from USD 4,154,000 in 2018[33] - Total revenue for the year ended December 31, 2019, increased by 50.8% to US$101.5 million, driven by sales growth in mobile devices and smart charging applications[67] - Gross profit rose by 22.0% year-on-year to US$11.5 million, with a gross profit margin decrease from approximately 14.0% to 11.3%[68] - Other income increased by 80.9% to US$161,000, primarily from bank interest income[69] - Selling and distribution expenses amounted to US$1.7 million, an increase of 11.6% or US$180,000 compared to 2018[70] - General and administrative expenses increased by 31.7% year-on-year to US$2.5 million, mainly due to business expansion[77] - Finance costs rose by 18.9% to US$1.0 million, attributed to increased trade financing for business growth[78] - Income tax expense grew by 11.5% to US$1.0 million, in line with business growth[79] - Profit for the year decreased by 3.8% to US$2.5 million, but increased by 25.7% when excluding one-off listing expenses[80] Revenue Breakdown - Revenue from mobile devices and smart charging reached US$76.6 million, an increase of 121.5% year-on-year, driven by rising demand for IoT devices[18] - Revenue from motor control products was US$11.8 million, reflecting a decrease of 26.8% due to reduced sales demand in the entry-level new energy automotive sector in China[18] - Revenue from sensors and automation increased by 96.6% to US$4.6 million, supported by the development of applications for various sensors[18] - The Group's revenue breakdown shows that mobile devices and smart charging accounted for 75.4% of total revenue in 2019, up from 51.4% in 2018[43] - Mobile devices and smart charging revenue increased to USD 7,700,000 in 2019, representing 67.1% of total revenue, up from USD 4,648,000 (49.4%) in 2018[44] - Motor control revenue decreased to USD 1,721,000 in 2019, accounting for 15.0% of total revenue, down from USD 2,087,000 (22.2%) in 2018[44] - Sensors and automation revenue rose to USD 613,000 in 2019, making up 5.4% of total revenue, compared to USD 333,000 (3.5%) in 2018[44] - LED lighting revenue fell to USD 462,000 in 2019, representing 4.0% of total revenue, down from USD 946,000 (10.1%) in 2018[44] - RF power revenue decreased to USD 978,000 in 2019, accounting for 8.5% of total revenue, down from USD 1,391,000 (14.8%) in 2018[44] Assets and Cash Position - Total assets as of December 31, 2019, were USD 58,465,000, a 74.3% increase from USD 33,541,000 in 2018[33] - Cash and cash equivalents increased by 117.9% to USD 6,263,000 from USD 2,874,000 in 2018[33] - As of December 31, 2019, cash and cash equivalents were US$6.3 million, up from US$2.9 million in 2018[87] - The gearing ratio improved to 41.6% from 55.5% in 2018, indicating a reduction in net debt relative to total equity[88] Strategic Focus and Future Plans - The Company aims to continue developing integrated circuits (IC) application solutions and related services in a highly competitive market[21] - The Group aims to enhance its market position in the IC application solutions industry by increasing market share and improving service quality[36] - The Company plans to explore external strategic investments and cooperation to enhance product stability and revenue diversity[24] - The Group will continue to focus on organic growth and seek suitable strategic acquisitions to accelerate growth and maximize shareholder returns[26] - The impact of COVID-19 on different end markets remains uncertain, making it difficult to predict the overall effect on the Group[25] Management and Governance - The Group has been jointly managed by Mr. Lam, Mr. Qing, and Mrs. Qing since 2011, ensuring concerted control and management[123] - The management team includes experienced professionals with backgrounds in engineering, sales, and customer service, enhancing the Group's market position[127][134] - The Company continues to focus on expanding its market presence and enhancing its product offerings through strategic management and collaboration[123] - The Group's operational strategy emphasizes collaboration with external resources, including logistics companies and governmental agencies, to optimize performance[134] - The management team is committed to providing routine reports to the Board regarding operations and business performance, ensuring transparency and accountability[134] Employee and Labor Costs - The Group had 116 employees as of December 31, 2019, an increase from 99 employees in the previous year[101] - Total labor costs amounted to US$2.1 million, representing 2.1% of the Group's revenue for the year[101] Corporate Structure and Shareholder Information - The principal activity of the Company is investment holding, with subsidiaries primarily engaged in the sales of electronic components and storage systems integration[185] - The Company was listed on the Main Board of The Stock Exchange of Hong Kong Limited on July 16, 2019[185] - The Board has proposed a final dividend of one (1) bonus share for every ten (10) existing shares, subject to shareholder approval at the AGM on May 28, 2020[196] - The register of members will be closed from May 25, 2020, to May 28, 2020, during which no share transfers will be processed[196] - To qualify for the Bonus Issue, share transfer forms must be submitted by 4:30 p.m. on June 2, 2020[197] Management Team Experience - Mr. Lam holds approximately 67.5% of the issued share capital of the Company through P. Grand (BVI) Ltd.[117] - Mr. Qing has over 18 years of experience in the IC and semiconductor industry, overseeing marketing activities and liaising with electronics manufacturers[121] - Mr. Mai has over 17 years of experience in providing technical solutions for semiconductors and oversees the design and R&D functions of the Group[127] - Ms. Cheng has over 15 years of experience in the semiconductor industry, responsible for business and administrative functions, including policy formulation and operational reporting[133] - The Company has a senior management team with over 17 years of experience in semiconductor sales and marketing, led by Mr. Wang Kai[165] - Ms. Au Ka Man Silkie serves as the chief financial officer and has over 13 years of experience in business administration and management[171] - Ms. Feng Ying oversees the business and administrative functions of the Group's PRC entities and has over 18 years of management experience[178] Financial Reporting and Compliance - Financial results for the year ended December 31, 2019, are detailed in the consolidated statement of profit or loss and other comprehensive income[187] - A summary of the Group's results, assets, and liabilities for the last five financial years is provided on pages 191 to 192 of the annual report[188] - Details of the movement in the share capital during the year ended December 31, 2019, are outlined in note 25 to the consolidated financial statements[189] - The Group's segment analysis for the year ended December 31, 2019, is included in note 5 to the consolidated financial statements[186] - The Company confirms that no additional information is required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules[180]

Financial Performance - For the six months ended June 30, 2019, total revenue was USD 36.69 million, a 19.9% increase from USD 30.58 million for the same period in 2018[12]. - Revenue for the period was approximately $36,691,000, an increase of about 19.98% compared to the previous period's $30,580,000, primarily driven by growth in mobile devices and smart charging businesses[23]. - The company reported revenue of $36.691 million for the six months ended June 30, 2019, an increase of 20.1% compared to $30.580 million in the same period of 2018[73]. - Revenue from mobile devices and smart charging accounted for 65.7% of total revenue, increasing from 51.2% in the previous period, with sales of USD 24.09 million[12]. - The gross profit for the six months ended June 30, 2019, was USD 3.83 million, a decrease of 7.5% from USD 4.14 million in the same period of 2018[14]. - Gross profit for the same period was $3.830 million, down from $4.140 million, reflecting a decrease of 7.5%[73]. - The net profit attributable to shareholders for the period was approximately $406,000, up from $235,000 in the previous period[35]. - The company reported a net profit attributable to shareholders of $406,000 for the six months ended June 30, 2019, up from $235,000 in 2018, reflecting a growth of 72.4%[111]. - Basic and diluted earnings per share increased to $0.068 from $0.039, marking a growth of 74.4%[73]. - The company’s total comprehensive income for the period was $407,000, compared to $193,000 in the prior year, indicating a significant increase[75]. Expenses and Costs - Cost of sales for the period was approximately $32,861,000, reflecting an increase of about 24.29% from $26,440,000 in the previous period, with material costs being the largest component[24]. - Selling and distribution expenses were recorded at $708,000, slightly down from $714,000, representing approximately 1.9% of revenue compared to 2.3% in the previous period[26]. - General and administrative expenses decreased to $949,000 from $1,191,000, accounting for 2.6% of revenue, down from 3.9%[28]. - The company recorded financing costs of approximately $525,000, an increase of about 32.2% from $397,000 in the previous period, representing 1.4% of total revenue[31]. - The financing costs for the six months ended June 30, 2019, totaled $525,000, an increase of 32.2% from $397,000 in the same period of 2018[108]. Assets and Liabilities - Current assets decreased by approximately $511,000 to $11,590,000, primarily due to increases in inventory and trade receivables[36]. - Total bank borrowings increased from $1,310,000 on December 31, 2018, to $2,131,000 on June 30, 2019[46]. - The company’s total liabilities increased from $20,029 thousand as of December 31, 2018, to $28,125 thousand as of June 30, 2019, representing an increase of approximately 40.3%[78]. - The company’s total equity increased to $13,879 thousand as of June 30, 2019, up from $13,512 thousand as of December 31, 2018, an increase of approximately 2.7%[78]. - Total assets increased from $32,130 thousand as of December 31, 2018, to $39,715 thousand as of June 30, 2019, representing a growth of approximately 23.5%[78]. Market and Business Strategy - The company aims to optimize and rationalize its business portfolio to drive future growth and create long-term value for shareholders[9]. - The company plans to expand its market share and enhance service quality to solidify its position in the IC application solutions industry[11]. - The management emphasizes the importance of providing environmentally friendly and energy-saving solutions in its product offerings[11]. - The company is committed to developing new technologies and solutions to meet customer demands in emerging markets[11]. - The management expresses confidence in the operating environment for the second half of the year despite global economic challenges[9]. Shareholder Information - The company did not declare any interim dividend for the six months ended June 30, 2019, consistent with the previous year[51]. - Major shareholders include P. Grand (BVI) Ltd. with a 67.5% stake and Feng Tao with a 75% stake, indicating concentrated ownership[63]. - The company raised approximately HKD 130 million from its initial public offering, marking a significant milestone in its listing on the Hong Kong Stock Exchange on July 16, 2019[8]. - The net proceeds from the share offering, after deducting related underwriting fees and estimated expenses, amounted to approximately HKD 78.8 million[49]. - The company has not utilized any proceeds from the share offering since its listing date[49]. Employee and Management Information - The workforce increased to approximately 105 employees as of June 30, 2019, from 99 employees at the end of 2018[42]. - The total remuneration for key management personnel was $134,000 for the six months ended June 30, 2019, slightly up from $128,000 in the same period of 2018, indicating a growth of 4.7%[126]. - The company’s short-term employee benefits for the first half of 2019 were $122,000, a slight increase from $120,000 in the same period of 2018, reflecting a growth of 1.7%[126]. Accounting and Financial Reporting - The adoption of HKFRS 16 "Leases" has been implemented since January 1, 2019, which replaces HKAS 17 and introduces a comprehensive model for lease accounting[92]. - The company has identified only one operating segment, which is IC sales, including bundled services, for resource allocation and performance assessment[103]. - The transition to HKFRS 16 did not result in significant financial impacts other than those related to lease liabilities and right-of-use assets[94]. - The company has not made significant adjustments to major lease contracts upon the initial application of HKFRS 16[99].