Financial Performance - For the six months ended June 30, 2024, the group's revenue increased by 4% to HKD 47.2 million compared to HKD 45.6 million for the same period in 2023[1] - The group reported a profit of HKD 2.1 million for the six months ended June 30, 2024, compared to a loss of HKD 4.4 million for the same period in 2023[1] - Gross profit for the six months ended June 30, 2024, was HKD 24.6 million, slightly up from HKD 24.4 million in the same period of 2023[2] - Operating profit for the period was HKD 2.3 million, a significant improvement from an operating loss of HKD 4.2 million in the previous year[2] - Basic and diluted earnings per share for the six months ended June 30, 2024, were HKD 0.659 cents, compared to a loss of HKD 1.365 cents per share in the same period of 2023[2] - Total comprehensive income for the period was HKD 1.43 million, recovering from a loss of HKD 4.6 million in the same period last year[3] - Revenue for the interim period was HKD 47.2 million, a 4% increase from HKD 45.6 million in the same period of 2023[20] Assets and Liabilities - Non-current assets decreased from HKD 17.98 million as of December 31, 2023, to HKD 15.63 million as of June 30, 2024[4] - Current assets increased from HKD 59.63 million as of December 31, 2023, to HKD 63.64 million as of June 30, 2024[4] - The group's net current assets improved from HKD 44.5 million to HKD 46.7 million during the same period[4] - Accounts receivable, net of impairment losses, increased to 7,910,000 HKD as of June 30, 2024, from 6,662,000 HKD as of December 31, 2023[17] - Accounts payable increased to 9,331,000 HKD as of June 30, 2024, from 6,338,000 HKD as of December 31, 2023, reflecting a growth of approximately 47.3%[18] - Net asset value as of June 30, 2024, was HKD 59.7 million, an increase of HKD 1.5 million from HKD 58.2 million on December 31, 2023[23] - The group's total assets as of June 30, 2024, were valued at HKD 59.7 million, up from HKD 58.2 million as of December 31, 2023[29] Cash Flow - As of June 30, 2024, the group's cash and cash equivalents amounted to HKD 23.0 million, an increase from HKD 20.2 million as of December 31, 2023[29] - The net cash inflow from operating activities during the interim period was HKD 6.1 million, compared to a net cash outflow of HKD 9.0 million in 2023, attributed to improved cash management and operational efficiency[29] - The group recorded a net cash outflow from investing activities of HKD 0.9 million, a decrease from HKD 1.8 million in 2023, due to reduced capital expenditures for project development[29] Operational Highlights - The company operates as a single business segment focused on the development, sale, and distribution of smart card products, software, and hardware, along with related services[10] - The company successfully launched new products including ACR1555U BT NFC reader and ACR1552U-A2 WaterGuard NFC reader in the first half of 2024, with more products expected in the second half[25] - The WalletMate NFC reader won the "Innovative Product" Gold Award at the International Internet of Things Exhibition (IOTE) 2024, highlighting the company's commitment to innovation[27] - The company anticipates positive growth opportunities in Japan following the reopening of its office in March 2023, with plans to allocate more resources to support market development[28] - The board has decided to cease operations in the Philippines to streamline business processes for sustainable growth[28] - The company remains optimistic about future growth despite global economic uncertainties, expecting new products to stimulate customer spending and generate new sales revenue[28] Expenses and Costs - Operating expenses decreased by 22% to HKD 22.7 million from HKD 29.2 million in the same period of 2023, primarily due to reduced staff costs and effective cost-saving measures[22] - The employee cost for the interim period was HKD 15.3 million, with a total of 91 dedicated full-time employees[34] Dividends and Shareholder Returns - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[1] - The group has not engaged in any buybacks, sales, or redemptions of its listed securities during the interim period[35] Taxation - The company did not recognize any income tax provisions for Hong Kong profits tax due to tax losses recorded for the periods ended June 30, 2024, and June 30, 2023[14] Research and Development - The company successfully applied for a research and development subsidy of 116,000 HKD from the Shenzhen government in the previous reporting period[12] Debt and Financial Ratios - The debt ratio of the group was 0% as of June 30, 2024, consistent with the ratio as of December 31, 2023[30] - The group had no significant sales or acquisitions of subsidiaries or associates during the interim period[31] - As of June 30, 2024, the group had no major capital commitments related to the acquisition of properties, plants, or equipment[31] Audit and Review - The audit committee reviewed the unaudited consolidated results for the six months ended June 30, 2024, and discussed relevant financial matters with the management[38]

Financial Performance - The company's revenue decreased by 16% to HKD 79.2 million for the year ended December 31, 2023, down from HKD 94.2 million in 2022[10]. - Gross profit for the year was HKD 42.3 million, with a gross margin of 53%, compared to 52% in the previous year[10][12]. - The net loss for the year amounted to HKD 19.2 million, a significant decline from a profit of HKD 1.1 million in 2022[10]. - Operating expenses increased by 27% to HKD 62.7 million, primarily due to higher employee costs associated with overseas market expansion[13][14]. - The net asset value of the company decreased to HKD 58.2 million from HKD 77.9 million in the previous year, primarily due to the net loss incurred[13]. - Revenue from the European region fell from HKD 55.8 million in 2022 to HKD 35.8 million in 2023, significantly impacted by the ongoing war and economic downturn[11]. - The company's cash and cash equivalents decreased from HKD 40.0 million to HKD 20.2 million year-over-year, reflecting strategic allocation towards development projects and business improvements[34]. - The net assets of the company fell from HKD 77.9 million in 2022 to HKD 58.2 million in 2023, primarily due to investments in innovation and market expansion[34]. - Employee costs increased to HKD 40.2 million in 2023 from HKD 33.3 million in 2022, reflecting a rise in workforce expenses[42]. Product Development and Innovation - The company launched a low-cost contactless reader module specifically designed for the Chinese market as part of its strategy to expand its product range[5]. - The WalletMate Mobile Wallet NFC Reader was shortlisted for the Best New Product category at the 2023 RFID Journal Awards, highlighting the company's innovation efforts[5]. - The company successfully launched new products such as PocketKey and USB NFC Reader IV, reflecting its commitment to expanding its product portfolio and enhancing core product quality[18]. - The company aims to stimulate growth in 2024 through the launch of innovative products, anticipating increased market interest and higher sales revenue[6]. - The company is strategically focused on capturing the rapidly growing contactless payment solutions market, demonstrating its ability to adapt to market dynamics[20]. Market Expansion and Strategy - The company continues to strengthen its position in the fintech and smart living industries, focusing on advanced contactless readers, smart cards, and related devices[16]. - The company established a new office in Japan in 2023, marking a strategic expansion into global markets and indicating good development opportunities[22]. - The company has engaged three manufacturers for smart card production and three for smart card reader manufacturing, maintaining stable relationships to ensure product delivery timelines[26]. - The company plans to adopt a cautious pricing strategy and reduce product costs to maintain competitiveness amid global economic fluctuations[6]. - The company has implemented measures to mitigate global adverse factors, including diversifying market focus and revising pricing strategies to maintain resilience and growth[19]. Corporate Governance - The board of directors is committed to enhancing corporate governance practices and believes that good governance is essential for protecting shareholder interests and increasing group value[65]. - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules and believes it has complied with the code provisions for the year ending December 31, 2023, with some exceptions noted[65]. - The board consists of five executive directors, two non-executive directors, and four independent non-executive directors, ensuring a balanced composition for independent judgment[70]. - The company has established a plan for the board to make decisions and for management to handle operational matters, which will be reviewed regularly[69]. - The company emphasizes the importance of corporate governance in ensuring accountability and independent decision-making[65]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable development and has dedicated resources to manage ESG risks effectively[164]. - The company has established an Environmental, Social, and Governance (ESG) working group, which includes the CEO and heads of various departments, to oversee ESG procedures and risk management[165]. - The company conducts an annual materiality assessment to understand stakeholders' expectations and concerns regarding ESG matters, enhancing decision-making and impact management[166]. - The company has implemented measures to manage and monitor environmental and social operational risks[146]. - The company aims to reduce air pollutants, greenhouse gas emissions, and waste generation by 2025, using 2021 as the baseline year for its environmental management strategy[190]. Stakeholder Engagement - The company engages with stakeholders to ensure effective communication and maintain good relationships[147]. - The company has identified key stakeholders and established various communication channels to engage with them effectively[150]. - The company aims to provide equal opportunities for all shareholders to exercise their rights and actively participate in the company's business[120]. - The company encourages shareholders to participate in annual general meetings to communicate directly with the board of directors[121]. - Employees seek job security, career development opportunities, and a safe working environment, with initiatives in place to support these needs[153]. Risk Management - The company has evaluated the effectiveness of the internal control and risk management systems, confirming their adequacy and effectiveness[112]. - The risk management working group uses a risk management matrix to assess risk levels, with all identified risks recorded in a risk register[111]. - Regular risk management meetings are held to monitor identified risks and ensure the execution of risk plans[111]. - The company is committed to ensuring compliance with relevant laws and regulations through effective internal control and risk management systems[108]. Employee Management - As of the end of 2023, 37% of the company's full-time employees are engineers, with 60% having served for over five years, highlighting the importance of retaining skilled engineers for operational success[27]. - The company had 113 full-time employees as of December 31, 2023, down from 122 in the previous year, indicating a reduction in workforce size[42]. - The company encourages continuous professional development for all directors to enhance their knowledge and skills, ensuring compliance with corporate governance codes[77]. Financial Oversight - The auditor's fee for audit services provided by KPMG for the year ending December 31, 2023, was HKD 1,000,000[117]. - There were no significant disagreements between the auditor and the company's management for the year ending December 31, 2023[118]. - The audit committee's responsibilities include reviewing financial reports and risk management systems, ensuring the integrity of financial reporting[98].

Financial Performance - For the year ended December 31, 2023, the group's revenue decreased by 16% to HKD 79.2 million, compared to HKD 94.2 million in 2022[4] - The group's gross profit for the same period fell by 13% to HKD 42.3 million, down from HKD 48.6 million in the previous year[4] - The company recorded an annual loss of HKD 19.2 million for the year ended December 31, 2023, compared to a profit of HKD 1.1 million in 2022[4] - The total comprehensive loss for the year amounted to HKD 19.7 million, compared to a loss of HKD 3.5 million in 2022[7] - The company reported a basic loss per share of HKD 6.012, compared to earnings per share of HKD 0.352 in the previous year[5] - The net loss for the year amounted to HKD 19.2 million, a significant decline from a profit of HKD 1.1 million in 2022[41] - The total operating expenses increased by 27% to HKD 62.7 million, up from HKD 49.4 million in the previous year[44] Dividend and Shareholder Returns - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2023[4] - The board of directors does not recommend the payment of a final dividend for the year ending December 31, 2023[39] Assets and Liabilities - Total assets decreased to HKD 59.6 million from HKD 86.7 million in the previous year, indicating a decline in liquidity[9] - Current liabilities decreased to HKD 15.1 million from HKD 22.9 million, reflecting improved management of short-term obligations[9] - The company's net assets decreased to HKD 58.2 million from HKD 77.9 million, indicating a significant reduction in equity[9] - The company's net asset value as of December 31, 2023, was HKD 58.2 million, down from HKD 77.9 million in 2022, primarily due to the net loss[44] - Cash and cash equivalents decreased from HKD 40.0 million to HKD 20.2 million as of December 31, 2023, reflecting the company's strategic allocation towards development projects and business improvements[65] - The company reported cash and cash equivalents of HKD 20,227,000 as of December 31, 2023, which may not be sufficient to meet future operational funding and financial requirements[82] Cash Flow and Going Concern - As of December 31, 2023, the group's cash and cash equivalents amounted to HKD 20,227,000, with a net cash outflow of HKD 19,742,000 for the fiscal year[13] - The group faces significant uncertainty regarding its ability to continue as a going concern due to the cash flow situation[13] - Management has assessed the group's ability to continue as a going concern based on current cash balances and expected operational cash flows for at least the next twelve months[15] - The net cash outflow for the year ending December 31, 2023, was HKD 19,742,000, indicating significant uncertainty regarding the company's ability to continue as a going concern[85] Research and Development - Research and development expenses increased to HKD 17.5 million from HKD 12.9 million, highlighting a focus on innovation despite financial losses[5] - The development costs for new products and services amounted to HKD 2.9 million for the year ending December 31, 2023, down from HKD 6.6 million in 2022, indicating a reduction in capital expenditure[63] - The company successfully launched new products such as PocketKey and USB NFC Reader IV, enhancing its product portfolio[48] - The company aims to capture the rapidly growing contactless payment solutions market, showcasing its commitment to innovation in the fintech and smart living industries[52] - The company’s WalletMate Mobile Wallet NFC Reader was nominated for the Best New Product category at the 2023 RFID Journal Awards, highlighting its innovative capabilities[52] Market and Customer Base - Revenue from Europe decreased significantly from HKD 55,766,000 in 2022 to HKD 35,812,000 in 2023, representing a decline of 35.8%[26] - The group has no single customer contributing more than 10% of total revenue, indicating a diversified customer base[23] - Sales to the top five customers accounted for 23% of the company's revenue for the year ending December 31, 2023, down from 25% in 2022, indicating a reduced reliance on a limited number of customers[57] - The group has no expected revenue from existing customer contracts to be recognized in the future as of the report date[24] Employee and Operational Efficiency - The total cost of employee benefits increased to HKD 42,953,000 in 2023 from HKD 39,711,000 in 2022, an increase of 5.6%[29] - Employee costs rose by HKD 6.8 million due to hiring for overseas market expansion[45] - The total number of full-time employees decreased from 122 to 113, with employee costs rising to HKD 40.2 million from HKD 33.3 million in the previous year[75] - As of the end of 2023, 37% of the company's full-time employees are engineers, with 60% having served for over five years, indicating a strong engineering team[59] Corporate Governance - The company has complied with the corporate governance code except for the separation of the roles of Chairman and CEO, which are held by the same individual[81] - The board believes that having the same person serve as both Chairman and CEO enhances strategic continuity and effective operation of the board[81] - The company has a diverse board with more than one-third independent non-executive directors, ensuring power balance and accountability[81] - The audit committee has reviewed the annual performance and recommended the board to adopt the related performance metrics[81] - The annual report detailing corporate governance principles and procedures will be disclosed in the 2023 annual report[78] Challenges and Strategic Responses - The company faced challenges due to geopolitical tensions and the ongoing impact of the COVID-19 pandemic on operational efficiency[48] - The company has implemented measures to mitigate global adverse factors, including market diversification, pricing strategy adjustments, and cost reduction[50] - The global IC chip shortage has significantly challenged the company's production capacity, prompting a diversification of suppliers to enhance future supply flexibility[60] - The company continues to seek suitable partners to stabilize its manufacturing of smart cards and readers, relying on external manufacturers in mainland China[58] Compliance and Accounting - The group has not applied any new accounting standards or interpretations that have not yet become effective during the reporting period[18] - The Hong Kong Institute of Certified Public Accountants has issued several new and revised financial reporting standards that are effective for the group during the reporting period[19] - The group has to consider the impact of the new regulations regarding the cancellation of the Mandatory Provident Fund on its long service payment accounting[20] - The accounting policy changes have not had a significant impact on the group's financial performance or position for the current or prior periods[21] - The company has effectively managed its foreign exchange risk through regular reviews of its foreign currency net positions, with no significant financial impact from currency fluctuations[71] - The company has not pledged any significant assets as collateral as of December 31, 2023, maintaining a clean balance sheet[72]

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of HKD 45,579,000, a slight increase of 0.68% compared to HKD 45,270,000 in the same period of 2022[6] - The gross profit for the same period was HKD 24,397,000, representing a gross margin of 53.7%, up from HKD 23,502,000 in 2022[6] - The company incurred a net loss attributable to equity holders of HKD 4,363,000, compared to a profit of HKD 128,000 in the prior year, resulting in a basic and diluted loss per share of HKD 1.365 cents[6] - The company reported a total comprehensive loss of HKD 4,599,000 for the period, compared to a loss of HKD 1,459,000 in the same period last year[8] - The company reported a net loss of HKD 4,363,000 for the six months ended June 30, 2023, compared to a profit of HKD 128,000 in the same period last year[12] - The group recorded a net cash outflow from operating activities of HKD 9.0 million for the interim period, compared to a net inflow of HKD 2.3 million in 2022[53] Assets and Liabilities - Total assets decreased to HKD 75,899,000 from HKD 86,733,000 as of December 31, 2022, reflecting a reduction in cash and cash equivalents[10] - The company's cash and cash equivalents dropped significantly to HKD 26,807,000 from HKD 39,969,000, indicating liquidity challenges[10] - The company’s net assets stood at HKD 73,332,000, down from HKD 77,931,000 at the end of 2022, reflecting a decline in overall equity[10] - The total equity as of June 30, 2023, is HKD 73,332,000, a decrease from HKD 81,442,000 at the beginning of the year[12] - The company’s total liabilities decreased to HKD 13,377,000 as of June 30, 2023, from HKD 19,814,000 as of December 31, 2022[36] Cash Flow and Expenses - Cash used in operating activities for the six months ended June 30, 2023, was HKD 9,028,000, significantly higher than HKD 2,283,000 in the previous year[14] - The company reported a decrease in cash flow from investing activities, with a net cash outflow of HKD 1,772,000 compared to HKD 3,188,000 last year[14] - Operating expenses increased by 20% to HKD 29.2 million from HKD 24.4 million in the same period of 2022, primarily due to higher employee costs and reduced foreign exchange gains[44][45] Research and Development - Research and development expenses increased to HKD 8,041,000, up 22% from HKD 6,594,000 in the previous year, indicating a focus on innovation[6] - The company plans to continue focusing on research and development to drive future growth and market expansion[5] - The company received a research and development subsidy of HKD 116,000 from the Shenzhen government for the six months ended June 30, 2023, down from HKD 243,000 for the same period in 2022[26] Market and Product Development - The company launched new products including the ACR1581U dual-interface smart card reader and PocketKey FIDO security lock in the first half of 2023, with more products planned for the second half[47] - The company aims to focus more on markets in the Americas and Southeast Asia due to geopolitical tensions affecting European customers[49] - The company anticipates some uncertainties in growth prospects for the second half of 2023 due to the current global economic downturn, but remains optimistic about new product innovations stimulating customer spending[50] Governance and Compliance - The audit committee has reviewed the unaudited consolidated results for the six months ended June 30, 2023, and discussed relevant financial matters with management[76] - The company has adopted trading rules for directors that comply with the standard code of conduct, confirming compliance during the interim period[74] - The company has deviated from the corporate governance code by having the same individual serve as both co-chairman and CEO, which is seen as beneficial for strategic continuity[73] - The company has complied with the corporate governance code, except for the aforementioned deviation regarding the roles of chairman and CEO[73] - The company emphasizes the importance of independent non-executive directors in maintaining effective governance despite the leadership structure[73]

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之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Leadway Technology Investment Group Limited 高 維 科 技 投 資 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股票代號：2086） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 告 摘要 • 截至二零二三年六月三十日止六個月，本集團之收入增加1%至45.6百萬 港元（截至二零二二年六月三十日止六個月：45.3百萬港元）。 • 截至二零二三年六月三十日止六個月，本集團之期內虧損為4.4百萬港 元（截至二零二二年六月三十日止六個月：溢利0.1百萬港元）。 • 董事會不建議就截至二零二三年六月三十日止六個月派發中期股息。 ...

Financial Performance - The company's revenue for the year ended December 31, 2022, decreased by 4% to HKD 94.2 million, compared to HKD 98.1 million in 2021[11]. - The gross profit for the year was HKD 48.6 million, with a gross margin of 52%, slightly down from 53% in the previous year[11][13]. - The company reported a profit of HKD 1.1 million for the year, a significant improvement from a loss of HKD 21.3 million in 2021[5][11]. - Total operating expenses decreased by 32% to HKD 49.4 million, down from HKD 72.2 million in 2021, primarily due to reduced depreciation and amortization expenses[14]. - The net asset value of the company as of December 31, 2022, was HKD 77.9 million, a decrease from HKD 81.4 million in 2021[15]. - The company’s basic earnings per share for the year were HKD 0.352, compared to a loss of HKD 6.673 per share in 2021[11]. - The group recorded a net cash inflow from operating activities of HKD 2.0 million for the year, compared to HKD 2.8 million in 2021, indicating increased cash consumption in daily operations[34]. - As of December 31, 2022, the group's cash and cash equivalents amounted to HKD 40.0 million, a decrease from HKD 51.5 million as of December 31, 2021[34]. Market Strategy and Development - The company plans to continue developing new products and expanding market share, particularly in the identification and payment product sectors[9]. - The company participated in multiple exhibitions to explore market opportunities, including IOTE 2022 and Identity Week America[6]. - The company aims to enhance shareholder returns while maintaining competitiveness through product innovation and market expansion[9]. - The development cost for new products and services was HKD 6.6 million, significantly higher than HKD 0.6 million in the previous year[32]. - The group plans to enhance its product line and optimize material lists to reduce costs while launching new products[24]. - The group is actively seeking development opportunities and has financial institutions ready to provide credit lines if needed[24]. - The company anticipates a revenue growth of 15% for the next fiscal year, projecting total revenues to reach approximately $115 million[56]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by the end of 2024[56]. Governance and Management - The company appointed Ms. Xu Tingting as Chief Operating Officer on March 7, 2022, who has extensive experience in accounting and finance[52]. - The board consists of six executive directors, two non-executive directors, and four independent non-executive directors, ensuring a diverse and independent decision-making process[71]. - The company has adhered to the corporate governance code, with the exception of the combined roles of the chairman and CEO, which the board believes is beneficial for strategic continuity[66]. - The independent non-executive directors make up more than one-third of the board, meeting the listing rules requirements[71]. - The company has implemented a board diversity policy, which was revised on August 24, 2022, to maintain and achieve diversity among board members[88]. - The company has established a plan for the board to make decisions and for management to handle operational matters, which will be regularly reviewed[70]. - The company has confirmed that all directors have devoted sufficient time and effort to handle the company's affairs during the year ending December 31, 2022[82]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to environmental protection and sustainable development, with its technology reducing waste associated with various operations[171]. - The company has formed an ESG working group to oversee ESG procedures and risk management, meeting at least twice a year[166]. - The company identifies significant ESG issues through industry benchmarks and stakeholder participation, prioritizing key areas for assessment[167]. - The company aims to further reduce its carbon footprint through ongoing energy consumption reduction initiatives[179]. - The company has adopted waste management measures to minimize waste generation and environmental impact, with a focus on promoting a paperless office[182]. - The report covers sustainable initiatives from January 1, 2022, to December 31, 2022, highlighting the group's commitment to corporate social responsibility[147]. - The company has implemented a stakeholder engagement process to understand expectations and concerns, which informs decision-making and impact management[167]. Risk Management - The company emphasizes the importance of internal control and risk management systems to reduce risks and ensure operational effectiveness[115]. - The board believes that the existing risk management and internal control systems are effective and sufficient, ensuring the company's ability to continue as a going concern[122]. - Regular risk management meetings are held to monitor identified risks and evaluate the effectiveness of risk mitigation strategies[118]. - The risk management working group utilizes a risk management matrix to assess risk levels, with all identified risks recorded in a risk register and monitored by the board[118]. Employee and Workforce Management - The group employed 122 full-time employees as of December 31, 2022, an increase from 107 in the previous year[42]. - Employee costs recognized in the profit and loss statement amounted to HKD 33.3 million, down from HKD 36.8 million in 2021[42]. - The company has developed a fair promotion mechanism and established a union to provide communication platforms for employees[156]. - The company has provided necessary onboarding training and continuous professional development for all newly appointed directors to ensure they are well-informed about the company's operations and responsibilities[78].

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之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Leadway Technology Investment Group Limited 高 維 科 技 投 資 集 團 有 限 公 司 （前稱 HNA Technology Investments Holdings Limited 海航科技投資控股有限公司） （於開曼群島註冊成立之有限公司） （股票代號： 2086） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 告 摘要 • 截至二零二二年十二月三十一日止年度，本集團之收入減少4%至94.2 百萬港元（二零二一年：98.1百萬港元）。 • 截至二零二二年十二月三十一日止年度，本集團之毛利減少7%至48.6 百萬港元（二零二一年：52.3百萬港元）。 • 截至二零二二年十二月三十一日止年度，本集團錄得年度溢利1.1百萬 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 45,270,000, representing a 24.9% increase from HKD 36,250,000 in the same period last year[9]. - Gross profit for the same period was HKD 23,502,000, up 15.4% from HKD 20,269,000 year-on-year[9]. - Operating profit turned positive at HKD 248,000 compared to an operating loss of HKD 10,063,000 in the previous year[9]. - The company reported a profit attributable to equity holders of HKD 128,000, a significant recovery from a loss of HKD 10,889,000 in the prior year[9]. - For the six months ended June 30, 2022, the company reported a loss of HKD 10,434,000 compared to a loss of HKD 10,889,000 for the same period in 2021, representing a 4.1% improvement in loss[16]. - Total comprehensive income for the six months ended June 30, 2022, was HKD (10,531,000), compared to HKD (9,345,000) for the same period in 2021, indicating a decline of 12.7%[16]. - Basic earnings per share for the six months ended June 30, 2022, were HKD 0.0004, compared to a loss per share of HKD 0.0341 for the same period in 2021[44]. - The company recorded a profit of HKD 0.1 million for the interim period, a turnaround from a loss of HKD 10.9 million in the same period last year[65]. Expenses and Costs - Research and development expenses decreased to HKD 6,594,000 from HKD 11,031,000, indicating a 40.5% reduction[9]. - Total operating expenses decreased by 20% to HKD 24.4 million from HKD 30.6 million in the same period last year[65]. - The company reported a decrease in interest expenses on lease liabilities from HKD 217,000 in 2021 to HKD 120,000 in 2022, a reduction of 44.8%[36]. - The company has 112 full-time employees, with employee costs recognized during the interim period amounting to HKD 16.5 million, down from HKD 17.3 million in the previous year[79]. Cash Flow and Assets - Cash and cash equivalents decreased to HKD 43,731,000 from HKD 51,543,000, reflecting a decline of 15.2%[14]. - Operating cash flow for the six months ended June 30, 2022, was a net outflow of HKD 2,283,000, compared to a net inflow of HKD 2,463,000 in the same period of 2021[18]. - The company recorded a net cash outflow from operating activities of HKD 2.3 million during the interim period, compared to a net cash inflow of HKD 2.5 million in the previous year[72]. - The company reported a net cash outflow from investing activities of HKD 3.2 million, an increase from HKD 2.7 million in the previous year, primarily due to increased capital expenditures for project development[72]. - Total assets as of June 30, 2022, were HKD 95,405,000, down from HKD 101,699,000 as of December 31, 2021, indicating a decrease of 6.3%[33]. - Total liabilities decreased to HKD 15,422,000 from HKD 20,257,000, reflecting a reduction of 23.5%[33]. Revenue Sources - Revenue from the sale of smart card products and related services for the six months ended June 30, 2022, was HKD 45,270,000, up 24.9% from HKD 36,250,000 in the same period of 2021[27]. - Revenue distribution by region showed that Europe contributed HKD 27,643,000, an increase of 40.3% from HKD 19,716,000 in 2021[27]. Strategic Initiatives - The company plans to continue its focus on the development and sales of smart card products and related services as part of its growth strategy[26]. - The company plans to launch three new products in the second half of 2022, including the ACR40T SIM reader, ACR1252U wallet companion, and ACR1581 dual-interface reader[70]. - The company is exploring new opportunities in Southeast Asia amidst ongoing inflationary pressures and geopolitical tensions[70]. - The company plans to focus on non-contact payment growth trends, product diversification, and upgrades as current opportunities[69]. Corporate Governance - The company has adhered to the corporate governance code, with the exception of the chairman and CEO roles being held by the same individual, which the board believes is beneficial for strategic continuity[92]. - The company has adopted trading rules regarding directors' securities transactions, confirming compliance with the standard code during the interim period[93]. - The audit committee reviewed the unaudited consolidated results for the six months ended June 30, 2022, and discussed relevant financial matters with management[95]. Challenges and Market Conditions - The geopolitical tensions and the emergence of COVID-19 variants are expected to be significant challenges in the coming year[69]. - The company maintains a strong resilience during challenging economic conditions and continues to invest in product quality and innovation[70]. Miscellaneous - The company changed its English name to "Leadway Technology Investment Group Limited" to better reflect its control changes and enhance its corporate image[68]. - The company received government subsidies totaling HKD 995,000 during the reporting period, including HKD 243,000 for R&D and HKD 752,000 under the employment support scheme[37]. - The company did not purchase, sell, or redeem any of its listed securities during the interim period[91]. - The company has no significant contingent liabilities as of June 30, 2022[78]. - The company has no major asset pledges as of June 30, 2022[76]. - The company had no borrowings as of June 30, 2022, resulting in a debt ratio of 0%[72]. - No interim dividend was recommended by the board for the interim period[66].

Financial Performance - The company reported a revenue of HKD 36,250,000 for the six months ended June 30, 2021, a decrease of 40.4% compared to HKD 60,771,000 in the same period of 2020[9]. - Gross profit for the same period was HKD 20,269,000, down 40.7% from HKD 34,227,000 year-on-year[9]. - The operating loss increased significantly to HKD 10,063,000 from HKD 522,000 in the previous year, indicating a deterioration in operational performance[9]. - The net loss attributable to equity holders of the company was HKD 10,889,000, compared to a loss of HKD 972,000 in the prior year, reflecting a substantial increase in losses[9]. - The company reported a total comprehensive loss of HKD 9,345,000 for the period, compared to a loss of HKD 1,682,000 in the same period last year[10]. - For the six months ended June 30, 2021, the company reported a total comprehensive loss of HKD 9,345,000, compared to a loss of HKD 15,783,000 for the same period in 2020, representing a 40.9% improvement[16]. - Operating cash flow for the six months ended June 30, 2021, was HKD 2,524,000, down from HKD 4,591,000 in the same period of 2020, indicating a decrease of 45.0%[17]. - The company recorded a net cash outflow of HKD 2,424,000 for the six months ended June 30, 2021, compared to HKD 557,000 in the same period of 2020, reflecting a significant increase in cash outflow[17]. - The operating loss for the reporting segment was HKD 10,280,000, compared to an operating profit of HKD 2,073,000 in the first half of 2020[32]. - The company reported a loss of HKD 19,251,000 for the six months ended December 31, 2020, which contributed to the overall comprehensive loss for the year[16]. Assets and Liabilities - Non-current assets decreased to HKD 29,652,000 from HKD 34,356,000, indicating a decline in asset value[13]. - Current assets totaled HKD 83,669,000, down from HKD 87,102,000, showing a reduction in liquidity[13]. - Total liabilities increased to HKD 17,252,000 from HKD 14,187,000, suggesting a rise in financial obligations[13]. - The net assets attributable to equity holders decreased to HKD 91,973,000 from HKD 101,318,000, reflecting a decline in shareholder equity[13]. - Total assets for the reporting segment were HKD 113,321,000, down from HKD 121,458,000 in the previous year[30]. - The total liabilities for the reporting segment increased to HKD 21,348,000 from HKD 20,140,000 in the previous year[30]. - Accounts receivable, net of loss provisions, decreased to HKD 6,353,000 as of June 30, 2021, from HKD 8,721,000 as of December 31, 2020[55]. - Accounts payable increased to HKD 4,491,000 as of June 30, 2021, from HKD 3,650,000 as of December 31, 2020[60]. - The group reported a total of HKD 13,186,000 in accounts payable and other payables as of June 30, 2021, compared to HKD 10,179,000 as of December 31, 2020[60]. Cash Flow and Investments - The company's cash and cash equivalents were HKD 52,042,000, slightly down from HKD 54,371,000, indicating a minor decrease in cash reserves[13]. - Cash and cash equivalents totaled HKD 52,042,000 as of June 30, 2021, compared to HKD 54,371,000 as of December 31, 2020[59]. - The company incurred interest expenses of HKD 217,000 for lease liabilities, an increase from HKD 98,000 in the previous year[33]. - The group acquired property, plant, and equipment at a cost of HKD 581,000 for the six months ended June 30, 2021, down from HKD 700,000 in the same period of 2020[50]. - The group sold certain machinery and equipment with a net book value of HKD 31,000, resulting in a gain of HKD 46,000 for the six months ended June 30, 2021, compared to a loss of HKD 7,000 in the same period of 2020[50]. - The company has not made any significant acquisitions or investments in subsidiaries during the reporting period[90]. Revenue Breakdown - Revenue from the sale of smart card products and related services for the six months ended June 30, 2021, was HKD 36,250,000, a decrease of 40.4% from HKD 60,771,000 in the same period of 2020[23]. - Revenue from the Chinese mainland, Hong Kong, Macau, and Taiwan for the six months ended June 30, 2021, was HKD 6,975,000, down from HKD 9,355,000 in the same period of 2020, representing a decline of 25.0%[23]. - Revenue from the United States for the six months ended June 30, 2021, was HKD 3,549,000, a decrease of 69.9% compared to HKD 11,766,000 in the same period of 2020[23]. - Revenue decreased by 40% to HKD 36.3 million from HKD 60.8 million in the same period last year, primarily due to the ongoing impact of COVID-19 and global IC shortages[78]. Strategic Focus and Future Plans - The company plans to continue focusing on the development and distribution of smart card products and related services as its primary business strategy moving forward[22]. - The company plans to launch an upgraded version of its vehicle-mounted device, ACR350, to enhance product performance and create new revenue streams[87]. Governance and Compliance - The audit committee reviewed the unaudited consolidated results for the six months ended June 30, 2021, and discussed relevant financial matters with management[105]. - The company confirmed compliance with the corporate governance code during the interim period[105]. - Major shareholders with 5% or more equity include HNA EcoTech Pioneer Acquisition and its related entities, all holding 74.75%[96]. - The audit committee consists of three members, including the chairman, Dr. Lian Dapeng[105]. Employee and Operational Metrics - The workforce consisted of 111 full-time employees, with employee costs recognized during the period amounting to HKD 17.3 million, down from HKD 21.2 million in the previous year[92]. - Short-term employee benefits increased to HKD 1,503,000 for the six months ended June 30, 2021, from HKD 1,294,000 in the same period of 2020[71]. - Operating expenses reduced by 14% to HKD 30.6 million from HKD 35.4 million, attributed to a decrease in employee costs and effective cost control measures[80].

Financial Performance - The company's revenue decreased by 32% to HKD 112.7 million for the year ended December 31, 2020, compared to HKD 165.7 million in 2019[26]. - Gross profit was HKD 55.2 million, with a gross margin of 49%, down from 55% in 2019[30]. - The company reported a loss of HKD 20.2 million for the year, compared to a loss of HKD 8.3 million in 2019[30]. - Basic loss per share was HKD 0.06329, compared to HKD 0.02584 in 2019[30]. - Total operating expenses decreased by 21% to HKD 78.5 million, primarily due to a reduction in employee costs[33]. - The fintech and smart living segment recorded revenue of HKD 112.7 million in 2020, a decrease of 32% from HKD 165.7 million in 2019 due to the impact of COVID-19[38]. - The group terminated its financial services and investment segment as of March 31, 2020, resulting in no revenue and minimal expenses of HKD 28,000 during the year[39]. - The net cash inflow from operating activities for the year was HKD 19.1 million, a decrease from HKD 25.5 million in the previous year due to a decline in financial performance and reduced cash receipts from customers[50]. - The net cash outflow from investing activities was HKD 6.1 million, up from HKD 3.8 million in the previous year, attributed to increased capital expenditures on development projects[50]. - The group recorded a net cash outflow from financing activities of HKD 4.3 million, consistent with the previous year, primarily due to lease payments[50]. Assets and Liabilities - Intangible assets decreased by 43% to HKD 17.5 million, mainly due to amortization and impairment losses[34]. - Accounts receivable decreased by 58% to HKD 8.7 million, reflecting strict control over receivables[34]. - As of December 31, 2020, the group's cash and cash equivalents amounted to HKD 54.4 million, an increase from HKD 45.4 million as of December 31, 2019[50]. - The net asset value of the group as of December 31, 2020, was HKD 101.3 million, down from HKD 118.8 million as of December 31, 2019[50]. - The total employee cost recognized in the profit and loss statement was HKD 39.7 million, down from HKD 54.3 million in the previous year, reflecting a reduction in the workforce from 178 to 126 full-time employees[57]. Market and Product Development - The company plans to optimize product structure and innovate product functions in response to market trends[27]. - The company plans to launch an upgraded version of its in-vehicle device (ACR350) in the second half of 2021, which will have more features than the current version (ACR330)[40]. - The development costs for new products and services increased by HKD 3.9 million in 2020, up from HKD 0.7 million in 2019, primarily due to the development of the ACR350 product[48]. - The company aims to maintain competitive advantages through technology application upgrades and comprehensive product development[27]. Economic Outlook and Challenges - Economic outlook for 2021 remains uncertain, but the company anticipates gradual recovery with the rollout of vaccines[27]. - The adverse macroeconomic environment and the US-China trade conflict present ongoing challenges for the company[40]. - The company faces risks related to rapid technological changes and evolving industry standards, which could adversely affect performance and growth prospects[47]. Corporate Governance - The board believes that good corporate governance is essential for protecting shareholder interests and enhancing group value[77]. - The company has adhered to the corporate governance code as per the Stock Exchange's listing rules for the year ending December 31, 2020[77]. - The board is responsible for the group's performance and business, setting strategic directions and monitoring senior management's performance[78]. - The board has established committees to delegate responsibilities and ensure effective oversight of the company's operations[79]. - The company has a strong focus on risk management and compliance, with over 16 years of experience in these areas among its directors[75]. - The company is committed to continuous improvement in corporate governance practices to enhance efficiency and effectiveness[77]. - The board regularly reviews its plans to ensure they align with the group's needs[79]. - The company has a diverse board with members holding advanced degrees and extensive experience in finance and technology[71][72][75]. - The board consists of five executive directors, one non-executive director, and three independent non-executive directors, with independent directors making up one-third of the board[81]. - The company has adopted a trading policy for directors that complies with the standards set out in the listing rules, confirming adherence for the year ending December 31, 2020[84]. Shareholder Engagement - The company aims to provide all shareholders with equal opportunities to exercise their rights and actively participate in the company's business[134]. - The company held its annual general meeting, allowing shareholders to communicate directly with the board and exercise their voting rights[135]. - The board of directors and key executives attended the 2020 annual general meeting, with a 100% attendance rate from executive directors[145]. - The company emphasizes effective communication with shareholders to enhance investor relations and ensure timely disclosure of information[143]. - The company has established an official website to provide the public with easy access to business operations, financial data, and corporate governance information[145]. Corporate Social Responsibility - The company is committed to corporate social responsibility, focusing on the development, sales, and distribution of smart card products and related services in China, Hong Kong, and the Philippines[149]. - The environmental, social, and governance report outlines the company's management of significant operational issues and performance in these areas[148]. - The report period covers sustainable initiatives from January 1, 2020, to December 31, 2020[150]. - The company has taken measures to improve the disclosure of its corporate social responsibility performance[149]. - The company encourages feedback on its sustainable initiatives via email[151]. Environmental Impact - The company reported a total greenhouse gas emissions of 150.92 tons of CO2 equivalent for the year 2020, a decrease from 217.504 tons in 2019[177]. - The company achieved a reduction in Scope 2 greenhouse gas emissions due to effective implementation of energy-saving policies during the year[176]. - The company generated 0.66 kg of nitrogen oxides in Hong Kong and 4.68 kg in the Philippines for the year 2020, showing a decrease from 5.34 kg in 2019[174]. - The company has implemented waste management measures to reduce waste generation and its environmental impact, with no hazardous waste produced during the reporting period[180]. - The company fully complied with all relevant environmental laws and regulations in the countries where it operates during the reporting period[171]. - The company encourages a paperless office environment by promoting the use of emails over traditional mail[180]. - The total harmless waste generated in 2020 was 22.97 tons, a decrease from 30.715 tons in 2019, primarily due to the effective implementation of a paperless policy[183]. - The total energy consumption in 2020 was 281.35 MWh, down from 341.89 MWh in 2019, reflecting a reduction in electricity consumption due to COVID-19[192]. - Water consumption in 2020 was 1,072.24 cubic meters, a decrease from 1,514.60 cubic meters in 2019, attributed to effective water-saving strategies implemented in the Philippines[194]. - The total packaging materials consumed in 2020 was 103.52 tons, down from 153.276 tons in 2019, due to a decrease in sales of smart card products, software, and hardware[196]. Employee Relations - The company considers employees as important assets and aims to be the employer of choice[200]. - The human resources policies include recruitment, promotion, working hours, equal opportunities, compensation, and benefits[200]. - The company strictly adheres to labor laws in China, Hong Kong, and the Philippines, ensuring compliance with relevant employment regulations[200]. - The company prohibits child labor and any form of forced or compulsory labor in all business activities[200].