Financial Performance - The Group recorded a revenue of HK$1,281.5 million for the year 2019, with a loss attributable to owners of the Company amounting to HK$76.9 million, compared to a profit of HK$238.0 million in 2018[21]. - The basic loss per share for the year was HK3.11 cents, a decline from the basic earnings per share of HK9.33 cents in 2018[21]. - In 2019, the group achieved a revenue of HK$1,281.5 million, with a loss attributable to shareholders of HK$76.9 million, reflecting varying degrees of decline across main business segments[32]. - For the year ended December 31, 2019, the revenue from core business decreased by 33.6% to HK$1,229.6 million compared to HK$1,852.9 million in 2018[85]. - Revenue from non-core business, including residential property sales and property management, decreased by 88.7% to HK$51.9 million in 2019 from HK$459.4 million in 2018[85]. - The total revenue of the Group for the year amounted to HK$1,281.5 million, down from HK$2,312.2 million in 2018[85]. - The gross profit for core business decreased by 23.8% year-on-year to HK$115.6 million, while the gross profit margin increased to 9.4% from 8.2% in 2018[86]. - The overall gross profit margin of the Group for the year was 12.5%, up from 7.7% in 2018[86]. - The Group reported a loss attributable to owners of HK$76.9 million for the year, compared to a profit of HK$238.0 million in 2018[92]. - The management expects revenue to plummet dramatically in the first half of 2020 due to the COVID-19 pandemic, with potential losses anticipated[73]. Business Segments - Revenue from the handsets and IoT terminals business segment generated revenue of HK$749.6 million, down 9.7% year-on-year, with a gross profit of HK$56.6 million, a decrease of 22.8%, and a gross profit margin of 7.6%, down 1.2 percentage points[33][34]. - The handsets and IoT terminals business segment generated revenue of HK$749.6 million, down 9.7% year-on-year, with a gross profit of HK$56.6 million, a decrease of 22.8%, and a gross profit margin of 7.6%, down 1.2 percentage points[33][34]. - The Electronics Manufacturing Services (EMS) segment reported revenue of HK$93.0 million in 2019, a year-on-year decrease of 83.4%, with gross profit declining by 11.3% to HK$4.4 million[51]. - The intelligent manufacturing segment achieved revenue of HK$126.5 million in 2019, representing a year-on-year decrease of 11.2%, while gross profit declined by 7.8% to HK$37.1 million[60]. - The automated testing system product line performed exceptionally well, contributing significantly to revenue and profit, with expectations for growth in the 5G market[60]. - The Group's EMS business experienced a reduction in gross profit due to adjustments in processing fees related to changes in the business model[31]. Market Challenges - The Group faced significant challenges in 2019 due to the Sino-US trade war, foreign exchange fluctuations, and the COVID-19 outbreak, which impacted production and delivery of orders[26]. - The pandemic is expected to negatively impact operations in 2020, with a substantial drop in shipment volume anticipated in the first half of the year due to supply chain disruptions[46][48]. - The group is experiencing challenges in timely delivery of sales orders due to an unstable upstream supply chain, affecting shipment volume and product costs[39][42]. - The IoT terminals market remains fragmented, with no explosive growth in targeted products, leading to stable revenue levels without notable growth[45][47]. Strategic Initiatives - The Group aims to leverage opportunities arising from increased government investment in automation and smart operations as a response to the pandemic[46][48]. - The Group plans to enhance investments in automated testing systems and expand its product portfolio to capitalize on opportunities in the 5G market[65]. - The Group plans to relocate its supply chain to southern China and establish a new production base in Dongguan to reduce processing costs, which have been significantly impacted by high labor costs in Shanghai[38][41]. - The Group aims to relocate assembly processes to lower labor cost regions and build new production bases to reduce costs and enhance competitiveness[52]. - The Group continues to focus on the transformation of its handsets and IoT terminals business while exploring deeper engagement in specific IoT segments[46]. Research and Development - The Group began research and development of 5G wireless communication terminals, positioning itself for future technological advancements[7]. - In 2019, the Group's total R&D expenses increased to HK$79.7 million, representing 6.2% of revenue, up from HK$52.2 million and 2.3% in 2018[93]. - The design and development team expanded to 540 members in 2019, up from 530 in 2018, reflecting the Group's focus on R&D[96]. Corporate Governance and Management - The Group's management team includes experienced professionals with extensive backgrounds in telecommunications and electronics[161][165]. - The Group's chairman and executive director, Ms. Yeung Man Ying, has over 20 years of operational and management experience in the industry[161]. - The Group's president, Mr. Wong Cho Tung, is responsible for formulating strategies and developing new business plans[161]. - The Group's CEO, Mr. Liu Jun, has a strong background in telecommunication technology and software development, previously working at Motorola[165]. - The Group aims to enhance its financial reporting and governance through the expertise of its independent directors[171]. - The independent directors bring diverse expertise from various fields, including robotics and corporate finance, to support the Group's strategic direction[172]. - The Group is committed to maintaining high standards of corporate governance and financial transparency[179]. Community and Environmental Responsibility - The Group has initiated environmental protection campaigns such as "Green in Action" to contribute to sustainability[159]. - The Group emphasizes corporate responsibility through initiatives like the Sunrise People Charity Fund, established by employees for charitable purposes[159]. - The Group's commitment to community engagement and environmental sustainability reflects its corporate responsibility ethos[159]. Financial Position - As of December 31, 2019, the Group had bank balances and cash of HK$611.7 million, a decrease from HK$647.8 million in 2018, with 66.1% held in US dollars and 33.8% in Renminbi[116]. - The Group's total bank borrowings amounted to HK$77.9 million as of December 31, 2019, down from HK$83.9 million in 2018, all denominated in Renminbi[116]. - The current ratio as of December 31, 2019, was 2.9 times, compared to 3.1 times in 2018, indicating a slight decline in short-term liquidity[123]. - The total staff costs incurred by the Group amounted to HK$252.3 million in 2019, down from HK$303.1 million in 2018[138]. - The Group's total assets were HK$2,866.9 million, a decrease from HK$2,972.0 million in 2018, with a gearing ratio of 2.7% compared to 2.8% in the previous year[138].

Financial Performance - In the first half of 2019, the company reported revenue of HKD 517.2 million, a decrease of 66.2% compared to the same period in 2018[4]. - Gross profit for the same period was HKD 53.3 million, down 57.9% year-on-year, primarily due to the transition to an Electronic Manufacturing Services (EMS) model[4]. - The company recorded a loss attributable to shareholders of HKD 92.8 million, compared to a profit of HKD 330 million in the same period of 2018[33]. - The company reported a loss before tax of HKD 93.0 million for the first half of 2019, compared to a profit of HKD 398.6 million in the same period of 2018[72]. - The company reported a significant increase in revenue from IoT systems and operations, totaling HKD 106,250 million, and smart manufacturing business contributing HKD 46,377 million[154]. - The company reported a net loss of HKD 23,679,000 in other gains and losses for the six months ended June 30, 2019, compared to a net gain of HKD 512,164,000 in the same period in 2018[180]. Revenue Breakdown - Revenue from the mobile and IoT terminal business decreased by 33.5% to HKD 286.8 million, down from HKD 431.3 million in the first half of 2018[37]. - Revenue from the electronic manufacturing services segment decreased by 89.8%, with a gross margin of 4.1%, down from 5.2% in the previous year[38]. - The smart manufacturing business generated revenue of HKD 46.4 million, a decline of 48.6% year-on-year, while gross profit was HKD 14.4 million, down 33.1%[17]. - The property development segment saw a significant drop in sales revenue to HKD 5.6 million, compared to HKD 330.9 million in the same period of 2018, with a gross margin of 23.9%[20]. - Revenue from the main business decreased by 58.4% to HKD 490.6 million, down from HKD 1,178.6 million in the previous year[32]. Cost and Profitability - The gross profit from the main business fell by 73.9% to HKD 32.1 million, with a gross margin of 6.6%, down from 10.4% in 2018[32]. - The gross margin for the mobile and IoT terminal business dropped to 3.3% in the first half of 2019, down from 12.3% in the same period of 2018, primarily due to a one-time write-off of HKD 21.1 million[37]. - The gross profit for the first half of 2019 was HKD 53.3 million, down 58% from HKD 126.7 million in the first half of 2018[72]. Strategic Initiatives - The company plans to accelerate supply chain transformation to adapt to the characteristics of the IoT terminal industry and ensure timely material delivery[9]. - New product development includes smart POS systems, AR glasses, and smart wearable devices, with several products expected to enter mass production in the second half of the year[7]. - The ongoing development of the IoT industry presents new opportunities for the EMS segment, with a focus on high-end electronic communication products[12]. - The company aims to continue focusing on the mobile and IoT markets, which, despite fierce competition, present unlimited opportunities[9]. Financial Position - As of June 30, 2019, the company's cash and bank balances were HKD 705.8 million, an increase from HKD 647.8 million at the end of 2018[44]. - The total assets of the group as of June 30, 2019, were HKD 2,872.8 million, down from HKD 2,972.0 million as of December 31, 2018, resulting in a debt ratio of 3.7% compared to 2.8% in the previous year[59]. - The current ratio as of June 30, 2019, was 2.7 times, down from 3.1 times at the end of 2018[48]. - The company’s total liabilities increased to HKD 806,413,000 as of June 30, 2019, compared to HKD 749,572,000 as of December 31, 2018[172]. Employee and Operational Metrics - The company had approximately 1,660 employees as of June 30, 2019, a decrease from 1,760 employees at the end of 2018[60]. - The company’s employee costs, including directors' remuneration, amounted to HKD 125,477,000 for the six months ended June 30, 2019, down from HKD 137,030,000 in the same period of 2018, a decrease of 8.5%[190]. Regulatory and Accounting Changes - The company has applied new International Financial Reporting Standards, which did not have a significant impact on the financial performance during the period[108]. - The company recognized lease liabilities of HKD 11,856,000 and right-of-use assets of HKD 79,960,000 upon the initial application of IFRS 16 on January 1, 2019[136].

Financial Performance - The Group achieved a profit attributable to owners of HK$238.0 million for the year ended December 31, 2018, compared to HK$111.7 million in 2017, representing a 112.5% increase[11] - Basic earnings per share increased to HK9.33 cents in 2018 from HK4.36 cents in 2017, marking a 113.5% rise[11] - The Group reported a revenue of HK$2,312.2 million for the year, a decrease of 29.0% compared to the previous year[14] - Gross profit fell by 55.2% year-on-year to HK$176.9 million, primarily due to the disposal of the modules business and a shift to providing electronic manufacturing services (EMS)[14] - The net profit increased by 109.6% to HK$215.0 million, largely attributed to gains from the disposal of the modules business[14] - Revenue from the handsets and IoT terminals business segment was HK$829.9 million, representing a decline of 22.9% year-on-year[16] - Gross profit for the handsets and IoT terminals segment decreased by 46.3% to HK$73.3 million, with a gross profit margin of 8.8%, down 3.9% from the previous year[16] - For the year ended 31 December 2018, the total revenue of the Group amounted to HK$2,312.2 million, a decrease of 29.0% from HK$3,258.5 million in 2017[53] - Revenue from the core business, which includes handsets and IoT terminals, decreased by 37.2% to HK$1,852.9 million compared to HK$2,952.1 million in 2017[53] - The gross profit for the core business decreased by 55.8% year-on-year to HK$151.8 million, with a gross profit margin of 8.2% compared to 11.6% in 2017[54] - The overall gross profit margin of the Group for the year was 7.7%, down from 12.1% in 2017[54] Dividends and Shareholder Returns - The Board declared a special dividend of HK1 cent per share, totaling approximately HK$25.0 million[11] - The Group declared a special dividend of HK$4 cents per share, totaling approximately HK$102.4 million, from the net proceeds of the disposal of subsidiaries[103] - The Board does not recommend the payment of a final dividend to shareholders for the Year[158] Business Operations and Strategy - The Group launched a high-end smartphone with triple protection features in collaboration with a renowned international automobile brand[4] - A new food and drink ordering terminal for the catering industry was introduced by the Group[4] - The Group's Sunrise factory passed IATF16949 system certification, securing automobile EMS business[4] - The Group delivered a 4G + TETRA intercom terminal tailored for a Global 500 European enterprise[4] - The Group launched an internet of things product for smart city applications, specifically for municipal road inspection systems[4] - The Group's SIM Intelligent Manufacturing System introduced an online inspection system for product defects applicable to automated mobile display module production lines[4] - The Group launched a real-time pollutant emission inspection system based on visual and artificial intelligence technology[4] - The transformation towards IoT and industrial application terminals has become a significant focus, contributing substantially to revenue and gross profit[17] - The smartphone market has reached saturation, leading to negative growth in handset consumption globally, which has affected the Group's operations[18] - The EMS business segment achieved revenue of HK$561.6 million in 2018, a decrease of 61.4% year-on-year, with gross profit down by 96.1% to HK$4.9 million[30] - The Group completed the disposal of the wireless communication modules business in Q1 2018, transitioning to an EMS operation model, which significantly impacted revenue recognition[30] - The intelligent manufacturing business reported a turnover of HK$142.5 million in 2018, representing a surge of 40.5% compared to the previous year, with gross profit rising by 2.7% to HK$40.3 million[37] - The revenue growth in the intelligent manufacturing segment was primarily driven by industrial robot products for automated testing of printed circuit board assembly[38] - The IOT system and O2O business segment continued to record losses in 2018, primarily due to issues related to the winding down of the offline automatic vending machine cloud service platform[35] Challenges and Market Outlook - The Group's supply chain faced significant challenges, including rising costs and disruptions due to upstream suppliers' failures, impacting delivery and shipment volumes[22] - Looking ahead to 2019, the Group anticipates intensified market competition and potential collapses within the supply chain due to the Sino-US trade conflict and economic slowdown[23] - The Group plans to enhance supply chain management and expand sales channels in the IoT/industrial application market in Europe, the US, and Japan[25] - The Group plans to focus on exploring new customer bases and processing product categories in 2019 to mitigate the impact of the turnover drop from the modules business[33] - The Group expects the automated testing robot market to be near saturation and will focus on exploring new products and markets in 2019[44] - Major risks include overcapacity in the handset market due to a drop in demand, leading to potential interruptions in supply from upstream suppliers[200] - The saturation of the smartphone market has shifted the handset market from an incremental to an existing market, affecting sales volumes[200] Financial Position and Cash Flow - As of December 31, 2018, the Group had bank balances and cash of HK$647.8 million, an increase from HK$417.1 million in 2017, with 46.9% held in Renminbi and 52.8% in US dollars[81] - The total bank borrowings amounted to HK$83.9 million as of December 31, 2018, slightly down from HK$84.1 million in 2017, all denominated in Renminbi[81] - The current ratio improved to 3.1 times as of December 31, 2018, compared to 1.9 times in 2017, indicating better short-term financial health[86] - The inventory turnover period increased to 121 days in 2018 from 105 days in 2017, reflecting a significant decrease in sales volume[85] - The trade and notes receivable turnover period increased to 55 days in 2018 from 37 days in 2017, attributed to the decline in sales[86] - The trade and notes payables turnover period increased to 58 days in 2018 from 48 days in 2017, due to an increase in the average balance of trade payables[86] - Net cash from operating activities decreased to HK$250.4 million in 2018 from HK$380.2 million in 2017, representing a decline of 34.2%[98] - The total assets value of the Group as of December 31, 2018, was HK$2,972.0 million, down from HK$3,630.4 million in 2017, a decrease of 18.1%[100] - The gearing ratio increased to 2.8% in 2018 from 2.3% in 2017, indicating a slight rise in financial leverage[100] - The Group reported a net cash inflow of HK$536.7 million from the disposal of subsidiaries during the year[98] Human Resources and Corporate Governance - The design and development team comprised 530 members in 2018, down from 840 in 2017[64] - Total staff costs incurred by the Group amounted to HK$303.1 million in 2018, a decrease from HK$308.0 million in 2017[115] - The number of employees decreased to approximately 1,760 in 2018 from 2,540 in 2017, a reduction of 30.7%[115] - The Group's leadership includes experienced executives, with Mrs. Wong and Mr. Wong, both aged 74, being the founders and holding significant roles in strategy development[137][139] - Mr. Liu, aged 46, serves as the CEO and is responsible for the overall management of the Group, bringing extensive experience from previous roles in telecommunications[145] - Ms. Tang, aged 65, has nearly 20 years of experience in human resources management and is currently the vice president of the business operation headquarters[143] - The Group's commitment to employee development is reflected in its leadership structure, with executives having backgrounds in engineering and telecommunications[145] - The Group is committed to enhancing its financial reporting and governance through experienced management and independent directors[156] - The management team includes professionals with extensive backgrounds in finance and engineering, ensuring strategic oversight[153][151] Corporate Social Responsibility - The Group's corporate vision is "making the world better because of us," emphasizing its commitment to social responsibility and community support[135] - The Group initiated environmental protection campaigns such as "Green in Action," focusing on contributing to environmental sustainability[135] - The Group has established a charity fund, the Sunrise People Charity Fund, aimed at promoting charitable culture among employees[135] - The Group aims to create a harmonious future through collective efforts in charity and community engagement[135] - The Group's focus on environmental initiatives aligns with its corporate vision of betterment and sustainability[135] Share Capital and Equity - The Company had 2,520,254,300 ordinary shares in issue as of December 31, 2018, with no new shares issued during the year[93] - As of December 31, 2018, Mr. Wong Cho Tung holds a total of 1,212,182,000 shares, representing approximately 48.09% of the company's equity[174] - Ms. Yeung Man Ying holds a total of 738,275,000 shares, representing approximately 29.29% of the company's equity[174] - The total issued share capital of the company as of December 31, 2018, is 2,520,254,300 shares[177] - The company has share option schemes as disclosed in note 37 to the consolidated financial statements[179] - The company confirmed no significant transactions or contracts involving directors or related parties during the year[181] - The company entered into a connected transaction on December 28, 2018, involving the sale of 81.25% equity in Shanghai Boshen for RMB6.0 million[185] - The total amount due from Shanghai Boshen to Shanghai Yunmao was RMB9,588,566.68, with an instalment payment agreement established for repayment[185] - The five largest customers and suppliers accounted for less than 30% of the Group's total sales and purchases respectively during the year[198] - The company has maintained sufficient public float as required under the Listing Rules[195] Risk Management - The company has received annual confirmations of independence from all independent non-executive directors, affirming their independence[194] - There has been no change of auditors in the preceding three financial years, with Deloitte Touche Tohmatsu set to offer themselves for re-appointment[198] - The company has no provisions for pre-emptive rights under its Bye-laws or Bermuda laws[195] - The production capacity adjustment may lead to risks such as diluted profits and increased marketing costs[200] - The company has not disclosed any substantial shareholders or persons with interests in shares as of December 31, 2018[193]