Financial Performance - For the first half of 2023, the group achieved a revenue of HKD 297.8 million, representing a 7.0% increase compared to the same period last year[3]. - Gross profit for the first half of 2023 was HKD 52.8 million, a significant increase of 378.1% year-on-year[3]. - The group reported a loss attributable to shareholders of HKD 50.4 million, a decrease from a loss of HKD 324.9 million in the same period last year[15]. - Revenue for the six months ended June 30, 2023, was HKD 297,754,000, an increase of 7% compared to HKD 278,339,000 for the same period in 2022[93]. - The company reported a net loss of HKD 50,339,000 for the six months ended June 30, 2023, compared to a net loss of HKD 324,941,000 in the same period of 2022, indicating a substantial improvement[94]. - The basic and diluted loss per share for the first half of 2023 was HKD 2.3, compared to HKD 14.7 in the first half of 2022, reflecting a reduction in losses[77]. - The group reported total revenue of HKD 278,339,000 for the six months ended June 30, 2023, compared to HKD 251,357,000 for the same period in 2022, representing an increase of approximately 10.7%[119]. - The group reported a loss before tax of HKD 51,812,000, with a significant loss in the terminal business of HKD 45,051,000[149]. Core Business Operations - Revenue from the core business, mobile and IoT terminal operations, increased by 8.5% to HKD 272.6 million compared to HKD 251.3 million in the previous year[14]. - The mobile and IoT terminal business revenue for the first half of 2023 increased by 8.5% to HKD 272,600,000 compared to HKD 251,300,000 in the same period of 2022[18]. - The gross profit margin for mobile and IoT terminal operations was 11.0%, compared to a gross loss margin of 5.5% in the previous year[14]. - The gross profit margin for the mobile and IoT terminal business improved to 11.0% in the first half of 2023, compared to a gross loss margin of 5.5% in the first half of 2022[18]. - The ODM business accounted for approximately 92% of the mobile and IoT terminal business revenue in the first half of 2023, up from 89% in the same period of 2022[18]. - Revenue from mobile and IoT terminal sales was HKD 233,531,000, while electronic manufacturing services contributed HKD 17,826,000, indicating a strong performance in core business segments[119]. Cost Management and Efficiency - The group is focusing on optimizing its organizational structure and operational processes to reduce costs and improve efficiency[9]. - The management anticipates that the macroeconomic environment will remain challenging in the second half of 2023, with continued losses expected in the core business[12]. - The relocation of the Qingpu factory is expected to be completed gradually, which will help in further cost control[12]. - Employee costs, including director remuneration, amounted to HKD 95,829,000, a decrease from HKD 180,682,000 in the previous year, reflecting a reduction of approximately 47%[164]. - The cost of inventory recognized as an expense was HKD 245,002,000, down from HKD 267,306,000, indicating a decrease of about 8.3%[164]. Financial Position and Liquidity - As of June 30, 2023, the group's bank balances and cash amounted to HKD 97,200,000, a decrease from HKD 191,800,000 as of December 31, 2022[20]. - The group's total bank borrowings as of June 30, 2023, were HKD 178,800,000, down from HKD 240,200,000 as of December 31, 2022[20]. - The company's bank borrowings decreased to HKD 178,800,000 as of June 30, 2023, from HKD 240,200,000 at the end of 2022, resulting in a debt ratio of 9.7% compared to 11.7% previously[69]. - The current ratio as of June 30, 2023, was 1.6 times, compared to 1.5 times as of December 31, 2022[40]. - Total liabilities decreased to HKD 475,223,000 from HKD 596,455,000, showing a reduction of approximately 20.3%[100]. - The total equity attributable to the owners of the company was HKD 1,221,579,000 as of June 30, 2023, down from HKD 1,294,213,000 at the end of 2022[100]. Inventory and Receivables - The inventory turnover period as of June 30, 2023, was 117 days, slightly down from 118 days as of December 31, 2022[39]. - Trade receivables and notes receivable totaled HKD 65,917,000 as of June 30, 2023, down from HKD 77,803,000 at the end of 2022[62]. - Inventory turnover period and trade receivables turnover period have improved, indicating enhanced operational efficiency[66]. - Total inventory as of June 30, 2023, was HKD 128,661 thousand, compared to HKD 185,779 thousand at the end of 2022, indicating a significant reduction[200]. Other Income and Expenses - Other income increased to HKD 38,057,000 from HKD 20,717,000 year-on-year, reflecting a growth of 83.5%[93]. - The company recognized a land recovery expense of HKD 29,503,000 in the first half of 2023 related to a land use rights agreement in Shanghai[74]. - The company recognized government project income of HKD 1,077,000 for the six months ended June 30, 2023, compared to HKD 2,053,000 for the same period in 2022, representing a decline of approximately 47.5%[181]. Future Outlook and Strategic Plans - The group aims to explore new business models and management structures to achieve a turnaround and return to profitability[12]. - The group has not disclosed any new product or technology developments in the current report[88]. - The company did not declare or recommend any dividends during the interim period[59]. - The company has not made any significant investments or acquisitions as of June 30, 2023[72]. - The company did not have any significant future investments or capital asset plans as of June 30, 2023[88].

Financial Performance - The Group recorded an unprecedented loss attributable to the owners of the Company of HK$509.5 million during the Year due to low gross profit, high expenses, and substantial impairment of intangible assets[14]. - The gross loss for the Core Business of the Group was HK$61.2 million, with a gross loss margin of 10.5%, compared to a gross loss of HK$35.8 million and a margin of 5.4% in 2021[24]. - The overall gross loss margin of the Group for the Year was 1.9%, down from a gross profit margin of 3.0% in 2021[24]. - The Group reported a loss attributable to owners of HK$509.5 million for the year ended December 31, 2022, compared to a loss of HK$236.6 million in 2021, with a basic loss per share of HK23.24 cents[39]. - Total revenue for the Group, including both core and non-core businesses, was HK$638 million in 2022, a decline from HK$724.7 million in 2021[52]. - Revenue from the handset and IoT terminals business decreased by 11.8% to HK$584.7 million in 2022, down from HK$662.7 million in 2021[52]. Expenses and Impairments - The Group's R&D expenses, selling and distribution costs, and administrative expenses increased significantly, contributing to the overall loss[26]. - R&D expenses increased to HK$245.3 million in 2022, representing 38.4% of the Group's revenue, up from 24.7% in 2021[28]. - Impairment losses on long-term assets related to the handset and IoT terminal business amounted to approximately HK$77.8 million, with additional impairments on receivables and inventory totaling HK$35.3 million and HK$57.4 million, respectively[54]. - Administrative expenses increased by 31.6% to HK$173,800,000, accounting for 27.2% of revenue, primarily due to a one-time impairment loss of HK$59,900,000 on property, plant, and equipment[69]. Business Operations and Strategy - The Group aims to optimize its business structure and redevelop overseas markets to achieve profitability in 2023[49]. - The Group launched a biometric (face-swiping payment) checkout solution and secured strategic cooperation opportunities with well-known domestic Internet customers[5]. - The Group entered into a cooperation agreement with a well-known enterprise in the global payment industry for ODM services of smart terminal products[4]. - The Group engaged in the law enforcement recording equipment market, collaborating on a 4G law enforcement equipment project, achieving a product layout across high, medium, and low-end segments[6]. Impact of COVID-19 - The Group's operations were significantly impacted by COVID-19 restrictions in parts of the PRC, particularly in Shanghai, affecting deliveries and overall performance[26]. - The ongoing pandemic has particularly impacted restaurant enterprises among the Group's tenants, leading to significant cash flow issues and potential bankruptcies[157]. - In 2022, the Group offered to reduce rental fees and postpone payments for some tenants affected by the pandemic, but some enterprises still decided to terminate their leases[157]. - The COVID-19 pandemic has caused fluctuations in the production capacity of the upstream supply chain, leading to structural shortages of raw materials and high inventories[156]. Shareholder Information - The company has a commitment to business fidelity and sustainable operation, gaining confidence from investors and stakeholders[61]. - The company’s reserves available for distribution to shareholders were approximately HK$296,388,000, consisting of contributed surplus of approximately HK$193,848,000 and retained profit of approximately HK$102,540,000[129]. - The total issued share capital of the company as of December 31, 2022, was 2,198,525,300 shares[137]. - The board does not recommend the distribution of a final dividend for the year[125]. Corporate Governance - The company has not appointed a new CEO since Mr. Gao Jun's resignation on September 30, 2022, resulting in a deviation from the Corporate Governance Code provision C.2.1[190]. - The management team currently assumes the CEO's responsibilities, consisting of five members including three executive directors and two management members[189]. - The board comprises four executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2022[194]. - The company has complied with the Corporate Governance Code provisions during the year, except for the CEO appointment issue[189]. Employee Development and Corporate Responsibility - The company emphasizes the importance of employee development, providing a competitive remuneration system to ensure long-term stability and growth[162]. - The company has established a career development system focusing on both management and technical skills for high-caliber talents[162]. - The company recognizes its responsibility to give back to society and aims to create a better future through charitable efforts[72]. - The company has initiated campaigns such as "Green in Action" to contribute to environmental protection[90]. Environmental Compliance - The Group operates in strict compliance with environmental regulations and has not faced any material non-compliance issues during the year[186]. - The Group's environmental policies aim to minimize impact through resource efficiency and compliance with environmental protection laws[186].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 SIM TECHNOLOGY GROUP LIMITED 晨 訊 科 技 集 團 有 限 公 司* （於百慕達註冊成立之有限公司） （股份代號：2000） 截至二零二二年十二月三十一日止年度之全年業績 晨訊科技集團有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈本公司及其附屬公司（「本集 團」）截至二零二二年十二月三十一日止年度（「本年度」）之經審核綜合業績連同二零二一年同期之比較 數字如下： 綜合損益表 截至十二月三十一日止年度 附註 二零二二年 二零二一年 千港元 千港元 經審核 經審核 持續經營業務 收入 3 638,017 724,709 銷售及服務成本 (650,107) (703,207) ...

Financial Performance - The company reported a revenue of HKD 278,300,000 for the first half of 2022, a decrease of 27.6% compared to the same period last year[3]. - The gross profit for the first half of 2022 was HKD 11,000,000, down 82.3% year-on-year[3]. - The mobile and IoT terminal business generated sales of HKD 233,500,000, a decline of 24.2% from the previous year, with a gross loss of HKD 1,400,000[6]. - The electronic manufacturing services (EMS) segment saw revenue drop to HKD 17,800,000, a decrease of 61.0%, resulting in a gross loss of HKD 12,400,000[9]. - Property leasing management revenue was HKD 27,000,000, down 11.7% year-on-year, with a gross margin of 92.2%[10]. - The company recorded a significant loss attributable to shareholders of HKD 324,900,000, compared to HKD 60,500,000 in the same period last year[16]. - The gross loss margin for the main business was 5.5%, compared to a gross profit margin of 9.3% in the previous year[15]. - The company reported a loss from continuing operations of HKD 324,941,000 for the first half of 2022, compared to a loss of HKD 59,674,000 in the same period of 2021[46]. - The basic and diluted loss per share from continuing and discontinued operations was HKD 14.7, compared to HKD 3.0 in the previous year, indicating a significant increase in losses per share[48]. - The overall loss before tax for the group was HKD 307,342 thousand, with a significant loss in the mobile and IoT terminal business amounting to HKD 255,813 thousand[96]. - The company reported a loss of HKD 324,851,000 for the six months ended June 30, 2022, compared to a loss of HKD 69,710,000 for the same period in 2021, indicating a significant increase in losses[119]. Revenue Breakdown - Revenue from the mobile and IoT terminal business was HKD 233,531,000, while the electronic manufacturing services generated HKD 17,826,000, and property leasing management contributed HKD 26,982,000[87]. - In the first half of 2022, the revenue from the mobile and IoT terminal business decreased by 24.2% to HKD 233.5 million compared to HKD 308.3 million in the same period of 2021[22]. - The electronic manufacturing services (EMS) revenue dropped by 61.0% to HKD 17.8 million, with a gross loss margin of 69.5% compared to a gross profit margin of 3.4% in the first half of 2021[23]. - The ODM business accounted for approximately 89% of the revenue in the mobile and IoT terminal business in the first half of 2022[22]. Cash Flow and Financial Position - The cash flow from operating activities showed a net outflow of HKD 183,532,000 for the first half of 2022, compared to a net outflow of HKD 80,841,000 in the same period of 2021[76]. - The company experienced a significant decrease in cash and cash equivalents, ending the period with HKD 286,703,000, down from HKD 383,988,000 in the previous year, reflecting a reduction of approximately 25.3%[78]. - The total bank borrowings increased to HKD 133.2 million as of June 30, 2022, from HKD 41.9 million as of December 31, 2021, resulting in a debt ratio of 6.0%[34]. - The group’s cash and bank balances decreased to HKD 187.9 million as of June 30, 2022, from HKD 322.3 million as of December 31, 2021[25]. - The current ratio decreased to 2.0 times as of June 30, 2022, from 2.6 times as of December 31, 2021[28]. - The company’s total assets less current liabilities decreased from HKD 1,666,858 thousand to HKD 2,097,944 thousand, a decline of approximately 20.5%[56]. - The company’s cash flow from financing activities resulted in a net inflow of HKD 71,204,000, compared to HKD 16,228,000 in the previous year, indicating a positive shift in financing[78]. Impairment and Losses - The group recorded impairment losses of approximately HKD 76.9 million on intangible assets and property related to the mobile and IoT terminal business in the first half of 2022[19]. - Management identified impairment indicators for the mobile and IoT terminal business, leading to impairment losses of HKD 53,224,000 for property, plant, and equipment, and HKD 5,987,000 for right-of-use assets[139]. - The company recognized impairment losses on certain long-term assets due to a reassessment of its forecasts in the mobile and IoT terminal business, as well as the electronic manufacturing services sector[82]. Operational Challenges - The company’s operational activities were severely impacted by COVID-19 restrictions, particularly in Shanghai, leading to a substantial decline in revenue compared to the previous year[81]. - The company experienced a significant decline in revenue due to COVID-19 disruptions, particularly during a two-month lockdown in Shanghai, affecting production and delivery of new and existing projects[133]. Future Outlook and Strategy - The company plans to focus on the production and delivery of existing smart terminal products and accelerate the development of new products in the second half of 2022[7]. - The management remains optimistic about future growth despite the challenges faced, emphasizing the importance of optimizing management structure and exploring new business opportunities[13]. - The company aims to achieve revenue and gross profit growth in the second half of 2022, contingent on the development of the pandemic and economic conditions[7]. - Management expects a prolonged economic recovery, leading to a reassessment of sales orders and forecasts for the current year[136]. Employee and Operational Costs - The group has increased R&D expenses, sales and distribution costs, and administrative expenses significantly in the first half of 2022 compared to the same period in 2021[19]. - Total employee costs, including directors' remuneration, amounted to HKD 180,682,000, up from HKD 94,351,000 in the previous year, showing an increase of approximately 91.3%[119]. Investments and Capital Expenditure - The company plans to invest a total of RMB 2 billion in developing its own technology industrial park in Dongguan, with RMB 1 billion allocated for fixed asset investment[38]. - The company reported a capital commitment of HKD 2,360,000 for property, plant, and equipment as of June 30, 2022[157]. Shareholder Information - Major shareholder Info Dynasty holds approximately 32.83% of the company's shares, totaling 734,857,000 shares[187]. - The company’s total issued share capital as of June 30, 2022, was HKD 223,854,000, down from HKD 236,254,000 as of December 31, 2021[155]. - The company repurchased a total of 30,594,000 shares during the first half of 2022, with a total expenditure of HKD 13,088,000[198].

Financial Performance - The Group recorded sales revenue of HK$724.7 million from continuing operations in 2021, representing a 2.0% year-on-year growth[26]. - Gross profit for the Group was HK$21.5 million in 2021, reflecting an 80.7% decline year-on-year[26]. - The Group achieved a loss attributable to owners of the Company from continuing operations of HK$236.6 million in 2021, compared to a loss of HK$21.2 million in 2020[22]. - The basic loss per share from continuing operations was HK10.21 cents in 2021, compared to HK0.89 cents in 2020[22]. - The Group did not recommend the payment of a final dividend for the year[22]. - The total revenue of the Group for the year amounted to HK$724.7 million, compared to HK$710.3 million in 2020[60][61]. - The gross loss for the core business was HK$35.8 million, with a gross loss margin of 5.4%, while the gross profit margin for the non-core business decreased to 92.5%[62][63]. - The Group recorded a loss attributable to owners of HK$236.6 million from continuing operations, with a basic loss per share of HK10.21 cents[67][68]. - The Group's bank balances and cash decreased to HK$322.3 million as of December 31, 2021, down from HK$667.9 million in 2020[97][98]. - The Group's total bank borrowings amounted to HK$41.9 million as of December 31, 2021, up from HK$36.0 million in 2020, all denominated in US dollars[97][98]. - The Group's total assets value as of December 31, 2021, was HK$2,583.2 million, down from HK$2,801.6 million in 2020[107]. - The Group's bank borrowings amounted to HK$41.9 million as of December 31, 2021, compared to HK$36.0 million in 2020, resulting in a gearing ratio of 1.6%[107]. Business Operations and Strategy - The Group expanded into the market of intelligence and digitization of two-wheeled vehicles, partnering with a renowned domestic brand for high-end electric bike dashboard solutions[4]. - The Group launched industry-leading AR binocular glasses in August 2021, successfully applied in a COVID-19 sterilization robot solution[6]. - The Group established a product line of financial smart devices in the second half of 2021, entering strategic cooperation with leading enterprises in financial retail smart products[19]. - The Group's high-end XR BOX product was officially announced in September 2021, becoming the first choice for numerous mainstream XR enterprises[8]. - The Group's new industrial AR glasses were successfully produced in December 2021, receiving excellent market feedback[18]. - The Group's strategy includes focusing on key semiconductor platforms, specific market segments, top customers, and blockbuster products to improve operational efficiency[50]. - The Group plans to establish a new production base in Dongguan to significantly increase production capacity for 2022 and beyond[50]. - The Group plans to focus on supply chain reforms and resource allocation to enhance operational efficiency in 2022[52]. - The management aims to turn around the Group's financial performance by strengthening management and reducing costs in 2022[55][57]. - The Group aims to become a market leader in handset and IoT terminal product solutions and services, with a strong commitment from all employees towards achieving this goal[118]. - The Group emphasizes customer-oriented continuous innovation to meet customer needs effectively[118]. Research and Development - Research and development expenses increased significantly to HK$178.7 million, representing 24.7% of the Group's revenue, up from 9.0% in 2020[71][74]. - The number of design and development team members rose to 444 in 2021, compared to 226 in 2020[74]. - The Group's R&D expenses significantly increased in 2021 as it focused on developing new product lines and expanding into new markets despite chip supply shortages[76]. - The company is investing in R&D, allocating $50 million for the development of new technologies and product solutions[137]. Human Resources - The Group has made significant investments in recruiting experienced talent and technological breakthroughs in various fields, including routers and smart POS[36]. - As of December 31, 2021, the Group had approximately 1,651 employees, an increase from 1,149 in 2020, with total staff costs amounting to HK$297.4 million, up from HK$163.5 million in 2020[112]. - The Group's emolument policy for employees is based on merit, qualifications, and competence, ensuring competitive remuneration packages[112]. - The Group has adopted share option and share award schemes to motivate and reward eligible employees for their contributions[112]. - The Group's strategy includes increasing human resources investment and raising employee salaries to enhance motivation and profitability[76]. Market Outlook and Future Plans - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% and aiming to reach $625 million[137]. - New product launches are expected to contribute to revenue, with three major products scheduled for release in Q2 2024[137]. - Market expansion plans include entering two new international markets by the end of 2024, targeting a 10% market share in each[137]. - The company is considering strategic acquisitions to enhance its product offerings and market presence, with a budget of $100 million allocated for potential acquisitions[137]. - Future strategies will focus on enhancing digital marketing efforts to increase brand awareness and customer engagement[137]. Environmental and Social Responsibility - The Group has initiated environmental protection campaigns, such as "Green in Action," to contribute positively to the environment[122]. Management and Governance - The company reported a significant operational history, with over 20 years of experience in the electronics and telecommunications industry, led by its founders, Mrs. Wong and Mr. Wong[126]. - The Group's main operating subsidiary, Shanghai Sunrise Simcom, was established in November 1993, indicating a long-standing presence in the market[126]. - The leadership team includes individuals with advanced degrees in engineering and business administration, showcasing a strong educational background[129][135]. - The company has established a robust management structure with experienced directors overseeing various operational aspects, ensuring effective governance[126][135]. - The Group aims to enhance its financial system through comprehensive budgeting, accounting analysis, and risk management, reflecting a commitment to financial stability[131]. Shareholder Information - The Company does not recommend the payment of a final dividend to shareholders for the year[161]. - The Company issued 2,153,000 ordinary shares of HK$0.10 each during the year due to employee share options exercised[167]. - The Company repurchased a total of 96,608,000 shares on the Stock Exchange during the year, with an aggregate price paid of HK$40,853,000[169]. - As of December 31, 2021, the Company's reserves available for distribution to shareholders were approximately HK$314,672,000[172]. - The contributed surplus was approximately HK$193,848,000, and retained profit was approximately HK$120,824,000[172]. - The total issued share capital of the company as of December 31, 2021, was 2,279,777,300 shares[186].

Financial Performance - For the first half of 2021, the company reported revenue of HKD 384.5 million, a 29.1% increase compared to HKD 297.8 million in the same period of 2020[3] - The gross profit for the ongoing operations was HKD 62.3 million, reflecting a growth of 42.7% from HKD 43.7 million in the first half of 2020[3] - The net loss after tax for ongoing operations was HKD 59.7 million, which is a 74.2% increase compared to a loss of HKD 34.3 million in the first half of 2020[3] - The group reported a revenue of HKD 353.9 million for the first half of 2021, a 26.6% increase compared to HKD 279.4 million in the same period of 2020[20] - Revenue for the first half of 2021 was HKD 384.5 million, an increase from HKD 297.8 million in the same period of 2020, resulting in a gross profit of HKD 62.3 million compared to HKD 43.6 million[52] - The company reported a loss from continuing operations of HKD 59.7 million for the first half of 2021, compared to a loss of HKD 34.3 million in the first half of 2020[52] - The group recorded a loss before tax of HKD 63,515,000 for the six months ended June 30, 2021, compared to a loss of HKD 36,521,000 in the same period of 2020[88] - The company reported a loss of HKD 69,505,000 for the six months ended June 30, 2021, compared to a loss of HKD 42,893,000 for the same period in 2020, representing a 62.1% increase in losses[9] - Total comprehensive income for the period was HKD (55,178,000), an improvement from HKD (62,290,000) in the previous year, indicating a 11.5% reduction in total comprehensive losses[9] Revenue Breakdown - Revenue from the mobile and IoT terminal business reached HKD 308.3 million, up 25.9% from HKD 244.5 million in the previous year[6] - The electronic manufacturing services (EMS) segment generated revenue of HKD 45.6 million, a 32.2% increase from HKD 34.5 million in the same period last year[7] - Property leasing management revenue was HKD 30.6 million, a significant increase of 66.4% from HKD 18.4 million in the first half of 2020[11] - The mobile and IoT terminal business generated HKD 308.3 million in revenue, up 25.9% from HKD 244.9 million year-on-year, with a gross margin slightly increasing to 10.1%[22] - The electronic manufacturing services segment saw revenue rise by 32.2% to HKD 45.6 million, although the gross margin decreased to 3.4% from 4.4%[24] - The company’s property leasing management segment generated revenue of HKD 30,563 thousand in the first half of 2021, marking its first contribution to total revenue[80] - The mobile and IoT terminal business generated revenue of HKD 308,257,000, while the electronic manufacturing services and property leasing management contributed HKD 45,656,000 and HKD 30,563,000, respectively[88] Investment and Expansion Plans - The company plans to establish a supply chain delivery and production base in the Greater Bay Area, expected to be completed by the end of 2023[13] - The company plans to invest a total of RMB 2 billion in developing its own technology industrial park in Dongguan, with RMB 1 billion allocated for fixed asset investment and the remaining RMB 1 billion for operational cash flow[44] - The company aims to focus on domestic markets and expand into industry-specific segments, leveraging the momentum from new customer acquisitions in the first half of 2021[13] - The company will increase investment in EMS equipment and automation to enhance production capacity and reduce labor costs[9] Cash Flow and Financial Position - As of June 30, 2021, the group's cash and bank balances were HKD 384 million, down from HKD 667.9 million at the end of 2020, with 44.2% held in USD and 55.7% in RMB[27] - The current ratio remained stable at 3.6 times as of June 30, 2021, indicating the group's ability to meet short-term obligations[31] - The net cash flow from operating activities for the first half of 2021 was a negative HKD 80.8 million, compared to a positive HKD 41.5 million in the first half of 2020[37] - Total assets as of June 30, 2021, were HKD 2,685.4 million, down from HKD 2,801.6 million as of December 31, 2020, with bank borrowings increasing to HKD 70.3 million from HKD 36.0 million[39] - The debt ratio, calculated as total bank borrowings divided by total assets, increased to 2.6% as of June 30, 2021, compared to 1.3% at the end of 2020[39] - The company’s total liabilities decreased to HKD 206,885,000 from HKD 205,652,000, indicating a slight increase of 0.6%[60] - The company’s total liabilities decreased to HKD 1,200,000 thousand as of June 30, 2021, compared to HKD 1,300,000 thousand at the end of 2020, indicating improved financial stability[68] Employee and Human Resource Management - The company has increased human resource investments and raised salaries to enhance employee motivation and retention amid rising talent costs in mainland China[16] - The employee count increased to approximately 1,450 as of June 30, 2021, up from 1,149 at the end of 2020, reflecting the company's growth and expansion efforts[40] - Employee costs, including directors' remuneration, totaled HKD 94,351,000 for the current period, compared to HKD 83,192,000 in the previous year, marking an increase of 13.9%[125] Inventory and Receivables Management - The inventory turnover period was 125 days as of June 30, 2021, slightly up from 123 days at the end of 2020, indicating stable inventory management[28] - Trade receivables aged 0 to 30 days increased to HKD 72,444,000 from HKD 50,795,000 year-over-year, representing a 42.5% increase[145] - Total trade receivables and notes receivable reached HKD 136,844,000, up from HKD 116,138,000, indicating a 17.8% growth[145] - Inventory as of June 30, 2021, totaled HKD 231,494,000, compared to HKD 219,575,000 as of December 31, 2020, reflecting a 5.4% increase[149] Shareholder and Governance Information - The company’s major shareholder, Mr. Wang, holds 1,212,182,000 shares, representing approximately 51.31% of the company's equity as of June 30, 2021[175] - Info Dynasty holds 734,857,000 shares, accounting for 31.10% of the company's equity as of June 30, 2021[180] - The company has complied with the corporate governance code during the first half of 2021, except for the absence of a nomination committee[190] - The audit committee, composed of three independent non-executive directors, reviewed the accounting principles and interim financial information for the first half of 2021[193]

Financial Performance - The Group reported revenue of HK$938.3 million from continuing operations for the year 2020, with a net loss attributable to owners of HK$36.5 million, compared to a loss of HK$58.5 million in 2019[22]. - The total revenue of the Group for the Year was HK$938.3 million, down 18.8% from HK$1,155.0 million in 2019[61]. - Revenue from the core business, including handsets and IOT terminals, decreased by 19.4% to HK$889.0 million compared to HK$1,103.1 million in 2019[61]. - The Group recorded a loss attributable to owners from continuing operations of HK$36.5 million, improving from a loss of HK$58.5 million in 2019[66]. - The net cash from operating activities decreased to HK$185.3 million in 2020 from HK$480.7 million in 2019, reflecting a significant decline in operational cash flow[115]. Business Segments - Revenue from the handsets and IoT terminals business segment was HK$586.1 million, representing a 21.8% decline year-on-year, while gross profit increased by 8.7% to HK$61.6 million, resulting in a gross profit margin of 10.5%, up by 2.9 percentage points[29]. - The EMS business segment reported sales revenue of HK$74.9 million, down 19.4% year-on-year, with gross profit declining by 37.8% to HK$2.7 million, leading to a gross margin of 3.6%[37]. - The IoT system and online-to-offline business generated sales revenue of HK$228.0 million, a decrease of 12.5%, with gross profit down 62.0% to HK$6.6 million[42]. - The revenue of the Handsets and IOT terminals business decreased by 21.8% year-on-year to HK$586.1 million in 2020, down from HK$749.6 million in 2019[78]. - The revenue from the IOT system and O2O business was HK$228.0 million in 2020, a decrease from HK$260.5 million in 2019[83]. Strategic Initiatives - The Group's strategy focuses on centralizing resources for the expansion of handsets and IoT terminals as a medium to long-term goal[28]. - The Group intends to integrate the IoT system business with the IoT terminals business to provide "cloud + terminal" one-stop solutions to customers[44]. - The Group plans to enhance its supply chain capabilities by relocating its operation center to Southern China within 2021, aiming to lower material costs and ensure timely delivery[35]. - The Group aims to allocate more resources to the handset and IoT terminals business to diversify its product offerings and secure quality customers[36]. - The Group is planning to construct production facilities in Dongguan, which will serve as a supply chain and manufacturing center in the Greater Bay Area[54]. Management and Governance - New senior management was welcomed in August 2020, initiating a new development chapter for the Group[7]. - Mr. Gao Jun was appointed as the CEO of the Group in December 2020, bringing extensive experience from Huawei and other technology firms[165]. - The Group's leadership includes experienced executives with over 20 years in the electronics and telecommunications industry, enhancing strategic direction and operational management[139][141]. - The Group's management team includes independent non-executive directors with strong academic backgrounds and industry experience, such as Mr. Li Minbo and Mr. Wu Zhe[157][161]. - The Group's financial management control system has been improved to meet strategic development needs, enhancing budgeting and risk management capabilities[147]. Cash Flow and Liquidity - As of December 31, 2020, the Group had bank balances and cash of HK$667.9 million, an increase from HK$611.7 million in 2019[91]. - The total bank borrowings of the Group amounted to HK$36.0 million as of December 31, 2020, down from HK$77.9 million in 2019[91]. - The current ratio as of December 31, 2020, was 3.6 times, compared to 2.9 times in 2019[104]. - The net increase in cash and cash equivalents was HK$16.1 million in 2020, a significant decrease from HK$234.0 million in 2019, highlighting a tighter cash position[115]. - The Group's reserves available for distribution to Shareholders as of December 31, 2020, were approximately HK$331,833,000, consisting of a contributed surplus of approximately HK$193,848,000 and retained profit of approximately HK$137,985,000[189]. Employee and Community Engagement - The Group's charity organization, Sunrise People Charity Fund, aims to enrich employees spiritually and promote a charitable culture[136]. - The Group emphasizes its corporate vision of "making the world better because of us" through continuous efforts in community support and environmental protection[136]. - The emolument policy for employees is based on merit, qualifications, and competence, with total staff costs reflecting a significant reduction year-on-year[125]. - The Group has adopted share option and share award schemes to motivate and reward eligible employees for their contributions[125]. - As of December 31, 2020, the Group had approximately 1,149 employees, a decrease from 1,629 in 2019, with total staff costs amounting to HK$178.9 million, down from HK$226.8 million in 2019[125]. Environmental and Social Responsibility - The Group initiated campaigns such as "Green in Action" to contribute to environmental protection, focusing on small details[136]. - The Group's commitment to environmental initiatives reflects its corporate responsibility and community engagement[136]. - The Group emphasizes a customer-oriented approach, focusing on continuous innovation in technology and management to meet customer needs[134]. - The Group's strategic focus includes enhancing its financial system and capital management to support operational efficiency[147]. - The Group's leadership has a strong academic foundation, with degrees from prestigious institutions such as Tsinghua University and Beihang University[157][161].

Financial Performance - In the first half of 2020, SIM Technology reported a sales revenue of HKD 244.9 million for its mobile and IoT terminal business, a decrease of 14.6% compared to the same period last year[8]. - The gross profit for the mobile and IoT terminal business was HKD 24.5 million, an increase of 160.4%, with a gross margin of 10.0%, up 6.7 percentage points year-on-year[8]. - The electronic manufacturing services (EMS) segment achieved sales revenue of HKD 34.5 million, down 32.5% year-on-year, with a gross profit of HKD 1.5 million, a decrease of 29.3%[13]. - The smart manufacturing business reported sales revenue of HKD 36.7 million, a decline of 20.9%, and a gross profit of HKD 10.9 million, down 24.3% year-on-year[17]. - As of June 30, 2020, the group reported a revenue of HKD 431.7 million, a decrease of 16.0% from HKD 517.2 million in the same period of 2019[27]. - The main business revenue, which includes mobile and IoT terminals, electronic manufacturing services, IoT systems, and smart manufacturing, decreased to HKD 412.2 million, down from HKD 490.6 million in 2019[27]. - The group recorded a loss attributable to shareholders of HKD 47 million, compared to a loss of HKD 92.8 million in the same period of 2019[27]. - The gross profit margin for the main business increased to 10.6%, up from 6.6% in 2019, while the overall gross profit margin rose to 14.2% from 10.3%[27]. - The company reported a loss before tax of HKD 45,560,000, an improvement from a loss of HKD 93,020,000 in 2019[61]. - The net loss for the period was HKD 42,893,000, significantly reduced from HKD 89,828,000 in the same period last year[64]. - Basic and diluted loss per share was HKD 1.9, compared to HKD 3.7 in 2019[61]. Market Strategy and Future Plans - The company plans to focus on developing self-branded products, particularly in data and wearable categories, to reduce customer investment risks and shorten product launch cycles[10]. - The company aims to expand its domestic market presence in response to the slowdown in overseas orders, with projects expected to be implemented in 2021[10]. - The company plans to focus on domestic market opportunities and continue to seek international market expansion despite the challenges posed by the pandemic and trade tensions[23]. - New products in the smart manufacturing sector, including AOI for mobile glass cover and AVI for PCB, are set for trial market introduction in the second half of 2020[18]. - The IoT system and operations business will shift focus from offline vending machine operations to more promising IoT system platforms[14]. Operational Challenges - The overall business environment remains uncertain due to deteriorating US-China relations and the ongoing pandemic, impacting future performance[10]. - The COVID-19 pandemic led to a suspension of manufacturing activities from January to February 2020, impacting revenue and production output[90]. - The company’s operations were negatively affected by travel restrictions and quarantine measures implemented due to COVID-19, leading to delayed shipments[93]. Financial Position and Cash Flow - As of June 30, 2020, the group's bank balances and cash amounted to HKD 561.1 million, a decrease from HKD 611.7 million as of December 31, 2019, with 56.3% held in USD and 43.7% in RMB[37]. - The net cash from operating activities for the first half of 2020 was HKD 41.5 million, a significant decrease from HKD 205.9 million in the first half of 2019[47]. - The company’s cash and cash equivalents were HKD 561,059,000, a decrease from HKD 611,714,000 in the previous year[67]. - The company reported a net cash outflow from investing activities of HKD 54,726 for the six months ended June 30, 2020, compared to HKD 42,143 in the same period of 2019[82]. - The company incurred a loss of HKD 10,873 in the current period, compared to a loss of HKD 10,264 in the previous year[86]. Assets and Liabilities - The total assets of the group were HKD 2,761.7 million as of June 30, 2020, down from HKD 2,866.9 million as of December 31, 2019[49]. - The group’s liabilities totaled HKD 730,188,000 as of June 30, 2020, down from HKD 756,259,000 at the end of 2019[123]. - The group reported inventory of HKD 302,309,000 as of June 30, 2020, an increase from HKD 250,771,000 at the end of 2019[167]. - Trade receivables as of June 30, 2020, totaled HKD 216,690,000, a decrease from HKD 275,829,000 as of December 31, 2019[160]. Shareholder Information - The company’s major shareholders include Mr. Wang Zuo Tong, holding 51.25% of the total shares, and Ms. Yang Wen Ying, holding 31.21%[192]. - The group’s total issued share capital as of June 30, 2020, was 2,365,086,300 shares, reflecting the ownership structure[195]. - Info Dynasty holds 734,857,000 shares, representing 31.07% of the company's equity[199]. - Intellipower holds 454,227,000 shares, representing 19.21% of the company's equity[199]. - The issued share capital was 2,365,084,000 shares, down from 2,430,724,000 shares at the beginning of the year due to share buybacks[175].

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].