Company Overview - High Dimension Technology Group Limited is an investment holding company primarily engaged in the development and sales of smart card products, software, and hardware [2] - The company also provides smart card-related services and develops automatic toll collection system products and solutions through its subsidiaries in Hong Kong [2] Financial Performance - As of December 31, 2024, High Dimension Technology reported total revenue of 92.87 million yuan, representing a year-on-year growth of 26.61% [1] - The net profit attributable to the parent company was 3.46 million yuan, showing a significant increase of 119.43% year-on-year [1] - The gross profit margin stood at 52.27%, while the debt-to-asset ratio was 34.24% [1] Stock Performance - As of April 15, the stock price of High Dimension Technology closed at 0.44 HKD per share, marking an increase of 18.92% [1] - Over the past month, the stock has experienced a cumulative decline of 2.63%, and a year-to-date decline of 11.9%, underperforming the Hang Seng Index, which has risen by 6.77% [1] Industry Valuation - The average price-to-earnings (P/E) ratio for the information technology equipment industry is 36.31 times, with a median of 3.1 times [1] - High Dimension Technology's P/E ratio is 31.68 times, ranking 25th in the industry [1] - Comparatively, other companies in the industry have the following P/E ratios: Changhong Jiahua at 2.68 times, Southern Communication at 3.51 times, SIS INT'L at 3.8 times, Putian Communication Group at 4.96 times, and Huaxian Optoelectronics at 5.79 times [1]

Financial Performance - For the year ending December 31, 2024, the group's revenue increased by 27% to HKD 100.3 million, compared to HKD 79.2 million in the same period of 2023[4] - The group's gross profit for the year ending December 31, 2024, rose by 24% to HKD 52.4 million, up from HKD 42.3 million in 2023[4] - The group recorded an annual profit of HKD 3.7 million for the year ending December 31, 2024, a significant recovery from a loss of HKD 19.2 million in 2023[4] - Total revenue for 2024 reached HKD 100,287,000, up from HKD 79,207,000 in 2023, marking a year-over-year increase of 26.6%[21] - Basic earnings per share improved to a profit of HKD 3,732,000 in 2024, compared to a loss of HKD 19,211,000 in 2023[25] - Gross profit for the year was HKD 52.4 million, with a gross margin of 52%, slightly down from 53% in the previous year[34][36] Assets and Liabilities - Total assets less current liabilities increased to HKD 64.9 million in 2024 from HKD 62.5 million in 2023[7] - The group's net assets rose to HKD 61.8 million in 2024, compared to HKD 58.2 million in 2023[8] - Cash and cash equivalents increased to HKD 25.7 million in 2024 from HKD 20.2 million in 2023[7] - Accounts receivable, net of loss provisions, increased to HKD 15,133,000 in 2024 from HKD 6,662,000 in 2023, reflecting a growth of 126.5%[27] - Payables rose to HKD 25,063,000 in 2024, compared to HKD 11,029,000 in 2023, indicating an increase of 127.5%[30] - The group maintained a debt ratio of 0% as of December 31, 2024, consistent with the previous year[57] Dividends and Shareholder Returns - The board of directors did not recommend the payment of a final dividend for the year ending December 31, 2024[4] - The board does not recommend the payment of a final dividend for the year ended December 31, 2024, consistent with the previous year[32] - The group continues to maintain a sustainable dividend policy, balancing shareholder expectations with prudent capital management[40] Operational Efficiency and Cost Management - Research and development expenses decreased to HKD 12.9 million in 2024 from HKD 17.5 million in 2023, indicating a focus on cost management[5] - Operating expenses decreased by 22% to HKD 49.0 million from HKD 62.7 million in 2023, primarily due to cost-saving measures[37] - The group has initiated a deregistration process for its Manila subsidiary, which is expected to further improve operational efficiency and cost savings once completed[46] - The group employed 93 full-time employees as of December 31, 2024, down from 113 the previous year, with employee costs amounting to HKD 29.8 million compared to HKD 40.2 million in 2023[63] Market and Product Development - The company operates primarily in the development, sales, and distribution of smart card products, software, and hardware[9] - The group operates as a single operating segment focused on the development, sale, and distribution of smart card products and related services[20] - Revenue from the development, sale, and distribution of smart card products was HKD 100,076 thousand in 2024, up from HKD 78,955 thousand in 2023, reflecting a growth of 27.0%[17] - New product launches include the ACR1555U secure Bluetooth NFC reader and WalletMate II mobile wallet NFC reader module, which received positive market feedback[41] - The WalletMate mobile wallet NFC reader won the IOTE Gold Award for "Innovative Product" in 2024, enhancing the company's reputation as a reliable supplier in the industry[45] - The group plans to launch several breakthrough solutions in 2025, focusing on innovation in the fintech and smart living sectors[44] Customer and Revenue Concentration - Customer A contributed HKD 15,285 thousand in 2024, representing over 10% of the total revenue, while in 2023, no customer contributed over 10%[18] - Sales to the top five customers accounted for 35% of the group's revenue for the year ending December 31, 2024, up from 23% in 2023, indicating increased reliance on a limited number of customers[48] Challenges and Strategic Focus - The global IC chip shortage poses significant challenges to production capacity, prompting the company to diversify suppliers to enhance future supply flexibility[51] - The company emphasizes the importance of balancing investment in new product development with maintaining financial stability amid supply chain reliability concerns[54] - The rapid development of artificial intelligence and automation technologies presents challenges in talent management, necessitating significant retraining for employees[50] - The company is diversifying its market focus towards regions such as the Americas, Japan, China, and Southeast Asia to mitigate risks from geopolitical tensions[42] Governance and Compliance - The audit committee reviewed the financial statements for the year ending December 31, 2024, ensuring compliance with internal control policies and financial reporting systems[68] - The company will disclose details regarding its corporate governance principles and procedures in the 2024 annual report[66] - The group has no significant contingent liabilities as of December 31, 2024[62] Other Financial Information - Interest income decreased to HKD 598,000 in 2024 from HKD 800,000 in 2023, a decline of 25.3%[21] - The group received government subsidies of approximately HKD 4,000 in 2024, significantly lower than HKD 116,000 in 2023, a decrease of 96.6%[21] - The group reported a significant increase in inventory write-downs, with HKD 4,000 in 2024 compared to HKD 1,511,000 in 2023[23] - There were no significant sales or investments in subsidiaries or associates during the year ending December 31, 2024[58] - The group had no capital commitments related to the acquisition of properties, plants, or equipment as of December 31, 2024[59] - The group has not engaged in any buybacks, sales, or redemptions of its listed securities during the year[64]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 47,210,000, representing an increase of 3.6% compared to HKD 45,579,000 for the same period in 2023[2] - Gross profit for the same period was HKD 24,561,000, slightly up from HKD 24,397,000, indicating a stable gross margin[2] - Operating profit improved to HKD 2,284,000 from a loss of HKD 4,171,000 in the previous year, showcasing a significant turnaround[2] - Net profit attributable to equity holders was HKD 2,105,000, compared to a loss of HKD 4,363,000 in the prior year, reflecting a positive performance shift[3] - Basic and diluted earnings per share for the period were both 0.659 cents, recovering from a loss of 1.365 cents per share in the previous year[2] - Total comprehensive income for the period was HKD 1,430,000, compared to a loss of HKD 4,599,000 in the same period last year[3] Cash Flow and Liquidity - Cash and cash equivalents increased to HKD 22,983,000 from HKD 20,227,000, indicating improved liquidity[5] - Operating cash flow for the six months ended June 30, 2024, was HKD 6,131,000, a significant improvement from a cash outflow of HKD 9,027,000 in the same period of 2023, representing a turnaround of approximately 168%[7] - Cash and cash equivalents increased by HKD 2,792,000 compared to a decrease of HKD 13,160,000 in the previous year, showing a positive change in liquidity[7] - The total cash and cash equivalents as of June 30, 2024, stood at HKD 22,983,000, down from HKD 26,807,000 in the previous year[7] - The group achieved a net cash inflow from operating activities of HKD 6.1 million, compared to a net cash outflow of HKD 9.0 million in 2023, reflecting improved cash management[42] - The group’s cash and cash equivalents as of June 30, 2024, were HKD 23.0 million, up from HKD 20.2 million on December 31, 2023[42] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 63,642,000, up from HKD 59,633,000 at the end of 2023[5] - The company reported a net asset value of HKD 59,660,000, an increase from HKD 58,230,000 at the end of the previous year[5] - Total liabilities increased to HKD 13,498,000 as of June 30, 2024, from HKD 11,029,000 as of December 31, 2023, marking an increase of about 22.4%[29] - Accounts receivable increased to HKD 7,910,000 as of June 30, 2024, from HKD 6,662,000 as of December 31, 2023, representing a growth of approximately 18.7%[26] - Accounts payable rose to HKD 9,331,000 as of June 30, 2024, compared to HKD 6,338,000 as of December 31, 2023, reflecting a significant increase of approximately 47.3%[29] Expenses and Cost Management - Research and development expenses decreased to HKD 6,763,000 from HKD 8,041,000, reflecting a focus on cost management[2] - 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[38] - Short-term employee benefits for key management personnel decreased to HKD 1,188,000 in 2024 from HKD 2,133,000 in 2023, a decline of approximately 44.2%[35] Market and Product Development - Revenue from external customers in Europe increased to HKD 26,911,000, a rise of 24.3% from HKD 21,699,000 in the previous year[13] - The group launched new products including the ACR1555U BT NFC reader and ACR1552U-A2 WaterGuard NFC reader in the first half of 2024, with more products expected in the second half[39] - The group plans to focus on the Americas and Southeast Asia markets due to procurement hesitance from European clients amid ongoing geopolitical tensions[39] Governance and Compliance - The company has adopted the corporate governance code as per the listing rules, with a deviation regarding the separation of roles between the Chairman and CEO, which is currently held by Mr. Zhang Xueqin since February 26, 2022[52] - The audit committee has reviewed the unaudited consolidated results for the six months ending June 30, 2024, and discussed relevant financial matters with the management[53] - The audit committee consists of four members, including Dr. Lian Dapeng (Chairman), Mr. Li Zhi Liang, Mr. Zhang Ding Fang, and Mr. Gu Tian Long[53] Shareholder Information - Major shareholders included Leadway Development Limited with 238,889,669 shares, representing 74.75% of the issued share capital as of June 30, 2024[49] - Mars Development Limited and its affiliates collectively held 239,215,679 shares, accounting for 74.85% of the issued share capital as of June 30, 2024[49] Other Information - The company did not recognize any tax provisions for Hong Kong profits tax due to recorded tax losses for both periods[19] - The group did not acquire any new right-of-use assets during the six months ended June 30, 2024, compared to HKD 906,000 for the same period in 2023[23] - There were no significant acquisitions or investments in subsidiaries or associated companies during the interim period[45] - The group had no capital commitments related to the acquisition of properties, plants, and equipment as of June 30, 2024[45] - The group did not mortgage any significant assets as of June 30, 2024[45] - There were no significant contingent liabilities as of June 30, 2024[45] - The company did not purchase, sell, or redeem any of its listed securities during the interim period[51] - The group manages foreign exchange risk through regular reviews of its foreign exchange risk exposure[45] - There were no plans authorized by the board for significant investments or capital asset increases during the interim period[45]

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 ...