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。 芯 智 控 股 有 限 公 司 Smart-Core Holdings Limited （於開曼群島註冊成立的有限公司） （股份代號：2166） 截 至2022年12月31日 止 年 度 之 年 度 業 績 財務摘要 • 本集團截至2022年12月31日止年度的總收入為10,006.1百萬港元（2021 年：10,389.3百萬港元），較截至2021年12月31日止年度減少3.7%。 • 本集團截至2022年12月31日止年度的毛利為1,094.7百萬港元（2021年： 990.0百萬港元），較截至2021年12月31日止年度增加10.6%。 • 截 至2022年12月31日 止 年 度，本 公 司 擁 有 人 應 佔 淨 利 潤 為164.7百 萬 港 元（2021年：214.1百 萬 港 元），較 截 至2021年12月31日 止 年 度 減 少 23.1%。 • 截 至2022年12月31日 止 ...

Financial Performance - Revenue for the first half of 2022 reached HKD 5,661,548 thousand, representing a 15.3% increase from HKD 4,911,942 thousand in the same period of 2021[10] - Gross profit increased by 62.8% to HKD 677,125 thousand, up from HKD 415,899 thousand year-over-year[10] - Profit before tax rose by 85.3% to HKD 362,033 thousand, compared to HKD 195,345 thousand in the previous year[10] - Net profit attributable to shareholders increased by 53.6% to HKD 145,230 thousand, up from HKD 94,576 thousand[10] - Basic earnings per share increased by 53.8% to HKD 29.78, compared to HKD 19.36 in the prior year[10] - Profit for the six months ended June 30, 2022, was HKD 299.8 million, an increase of 85.5% from HKD 161.6 million in 2021, with a net profit margin of approximately 5.3%, up from 3.3% in 2021[77] - Net profit attributable to owners for the six months ended June 30, 2022, was HKD 145.2 million, a 53.5% increase from HKD 94.6 million in the same period of 2021[78] - The net profit for the period was HKD 299,766 thousand, up from HKD 161,630 thousand, reflecting an increase of about 85.5%[145] Assets and Liabilities - Total assets as of June 30, 2022, were HKD 3,880,634 thousand, a 6.6% increase from HKD 3,639,011 thousand at the end of 2021[10] - Total liabilities increased slightly by 1.1% to HKD 2,624,607 thousand from HKD 2,596,136 thousand[10] - The net asset value increased by 20.4% to HKD 1,256,027 thousand, compared to HKD 1,042,875 thousand at the end of 2021[10] - The group's capital debt ratio decreased from 159.8% as of December 31, 2021, to 125.5% as of June 30, 2022, primarily due to a reduction in bank and other borrowings[87] - The company’s total liabilities decreased slightly to HKD 2,606,519 thousand from HKD 2,571,405 thousand, showing improved financial stability[149] Sales and Market Segments - In the first half of 2022, the company's total sales reached HKD 5,661.5 million, representing a year-on-year growth of 15.3%[19] - The semiconductor chip distribution business maintained stable revenue in smart display, smart vision, and optoelectronic products, while communication products and independent distribution saw substantial growth[19] - Sales in the smart display segment amounted to HKD 1,516.2 million, a slight decline of 4.0% year-on-year due to a decrease in global TV shipments[20] - The optoelectronic display business reported sales of HKD 685.9 million, a significant drop of 21.0% year-on-year, impacted by weak demand in the consumer electronics market[24] - The smart vision segment achieved sales of HKD 621.2 million, a minor decrease of 2.4% year-on-year, despite challenges from supply chain disruptions[25] - The communication products segment experienced a remarkable growth of 59.6%, with sales reaching HKD 434.1 million, driven by the demand for cellular IoT modules[28] - The independent distribution business generated sales of HKD 1,965.2 million in the first half of 2022, marking a substantial year-on-year increase of 75.6% driven by overseas market recovery[35] Economic and Industry Outlook - The company faced significant challenges due to global economic conditions, including inflation and geopolitical tensions, impacting the electronics manufacturing and semiconductor industries[14] - The overall semiconductor industry is expected to reach a bottom in 2023 after entering a downturn phase since Q3 2021[16] - The company anticipates challenges in the second half of 2022 due to global economic instability, but remains confident in maintaining business growth[41] - The semiconductor industry is expected to experience a rebound in demand post-2023, influenced by global economic conditions and trade dynamics[66] Operational Efficiency and Strategy - The company is actively enhancing its digital platform to improve operational efficiency and is focusing on expanding its distribution capabilities[19] - The company is focusing on expanding its independent distribution business and enhancing its digital transformation to improve operational efficiency[69] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[156] - The company aims to enhance shareholder value through strategic acquisitions and investments in high-growth areas[156] Employee and Administrative Costs - Total employee costs for the six months ended June 30, 2022, were approximately HKD 176.1 million, compared to HKD 119.5 million for the same period in 2021, representing a 47.3% increase[101] - Administrative, sales, and distribution expenses totaled HKD 262.1 million for the six months ended June 30, 2022, compared to HKD 167.8 million in the same period of 2021, representing 4.6% of revenue, up from 3.4% in 2021[75] Research and Development - Research and development expenses for the six months ended June 30, 2022, amounted to HKD 20.2 million, a 6.3% increase from HKD 19.0 million for the same period in 2021, primarily due to increased employee costs[72] - Research and development expenses increased slightly to HKD 20,215 thousand from HKD 19,014 thousand, indicating a focus on innovation[145] Shareholder Information - The company declared an interim dividend of HKD 0.04 per share for the six months ended June 30, 2022, consistent with the interim dividend of HKD 0.04 per share for the same period in 2021[108] - As of June 30, 2022, Mr. Tian Weidong held a controlled corporation interest of 262,500,000 shares, representing approximately 53.72% of the total shares[117] - Mr. Huang Ziliang held a controlled corporation interest of 90,000,000 shares, representing approximately 18.42% of the total shares[118] Compliance and Governance - The company has adopted the Corporate Governance Code and has complied with its applicable provisions during the six months ended June 30, 2022[112] - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal control systems[134] - The interim financial report for the six months ended June 30, 2022, has been reviewed and complies with relevant regulations[139]

Financial Performance - The company reported a revenue of HKD 10,389.3 million for the year ended December 31, 2021, representing an increase of 87.5% compared to the previous year[12]. - The net profit attributable to the owners of the company for the year was HKD 214.1 million, with a net profit margin of 3.8%[12]. - Total assets as of December 31, 2021, amounted to HKD 3,639.0 million, reflecting a growth of 27.8% year-on-year[12]. - The company achieved a gross profit of HKD 990.0 million, which is a significant increase of 218.8% compared to the previous year[12]. - The company's basic earnings per share reached 43.82 HKD cents, representing a 203.9% increase[21]. - The return on assets was reported at 10.8%, reflecting a significant improvement of 176.9%[17]. - The company declared a dividend of 12 HKD cents per share, marking a 100% increase compared to previous years[16]. - The group's profit for the year was HKD 391.9 million, an increase of HKD 306.5 million (358.9%) compared to HKD 85.4 million in 2020, mainly due to increased gross profit[88]. - The profit attributable to the company's owners reached HKD 214.1 million, a 201.5% increase from HKD 71.0 million in the previous year[91]. Market Expansion and Strategy - The company plans to expand its market presence and invest in new product development to drive future growth[12]. - The company aims to maintain a sustainable growth trajectory through innovative strategies and market expansion initiatives[12]. - Strategic acquisitions are being considered to bolster the company's competitive position in the market[12]. - The company plans to fully implement a new ERP system in 2022 to support its diversified and global business expansion[30]. - The group plans to establish an independent e-commerce center to enhance its online distribution capabilities over the next 2-3 years[34]. - The group aims to achieve a revenue scale exceeding HKD 1 billion in the industrial control and automotive sectors in 2022[39]. - The group is focusing on developing new products in the optical communication chip sector and expanding production capacity[39]. - The company is focused on overall business strategy, project development, and operational management under the leadership of its executive directors[118]. Operational Efficiency and Technological Development - The company is focusing on enhancing its technological capabilities to improve operational efficiency and customer satisfaction[12]. - The company implemented various cost-reduction and efficiency-enhancement measures, including the development of multiple information management software systems[30]. - The company has a strong commitment to research and development, focusing on new products and technologies in the electronic components sector[136]. - The company integrates industry resources through close collaboration with integrated circuit technology sources, adopting an OAO (online and offline) business model to provide high-quality core integrated circuits and value-added services[136]. Industry Trends and Market Insights - The global semiconductor industry is expected to grow by 9.5% in 2022, with a market size surpassing $600 billion[31]. - The semiconductor market is expected to see significant growth, with the global storage chip market projected to exceed USD 200 billion by 2023[74]. - The demand for DRAM is expected to grow by 17.1% in 2022, while supply growth is anticipated at 18.6%, potentially leading to a decline in DRAM chip prices[74]. - The global semiconductor market is projected to grow at an average rate of approximately 8.0% in 2022, with some forecasts suggesting a double-digit growth of 11%[59]. - The semiconductor import value in China reached approximately USD 439.7 billion, a year-on-year increase of 25.6%[24]. Corporate Governance and Compliance - The board of directors emphasized the importance of corporate governance and compliance in driving long-term success[12]. - The company has complied with all relevant laws and regulations impacting its business operations during the fiscal year, ensuring adherence through various internal controls and training measures[138]. - The company has maintained compliance with listing rules regarding the appointment of independent non-executive directors, ensuring at least three independent directors on the board[164]. Employee Relations and Corporate Culture - The company emphasizes employee relations, offering competitive compensation and implementing self-assessment programs to motivate employees towards achieving their goals[142]. - A strict internal training program is in place for new employees, focusing on company introduction and workflow skills to ensure quality across all employee levels[142]. - The company has a share incentive plan and stock option plan to reward senior management and employees for their dedication and loyalty[142]. Financial Position and Capital Management - The company's cash and bank balances totaled HKD 711.8 million as of December 31, 2021, an increase from HKD 416.7 million in the previous year[98]. - The company's outstanding bank borrowings increased to HKD 1,638.1 million as of December 31, 2021, up from HKD 727.1 million a year earlier, resulting in a capital debt ratio of 159.8%[98]. - The company's available distributable reserves as of December 31, 2021, were HKD 185.0 million, down from HKD 230.0 million in 2020[157]. - The company's distributive operations rely heavily on short-term financing, which poses a risk if credit lines are withdrawn or interest rates increase[149]. Customer and Supplier Relationships - The company generated over 30% of its revenue from its top five customers during the year, indicating a high customer concentration risk[148]. - Total procurement from the top five suppliers accounted for approximately 68.8% of the company's total procurement, with the largest supplier contributing about 50.3%[160]. - The company has established long-term relationships with major suppliers, some lasting between 9 to 15 years, ensuring stable supply channels[143]. - The company is expanding its supplier base by exploring new supplier partnerships and introducing new product segments with growth potential[145]. Shareholder and Stock Management - The company repurchased a total of 1,960,000 shares on the Hong Kong Stock Exchange during January 2021, with a total cost of HKD 2,421,660[113]. - The board believes that share buybacks can enhance earnings per share, benefiting the company and its shareholders[183]. - The proposed final dividend is HKD 0.08 per share, up from HKD 0.04 per share in 2020, with an interim dividend of HKD 0.04 per share already paid[150].

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 4,911,942, representing a 130.95% increase compared to HKD 2,126,863 in the same period of 2020[8]. - Gross profit increased to HKD 415,899, a 245.72% rise from HKD 120,298 year-on-year[8]. - Profit before tax surged by 362.61% to HKD 195,345, up from HKD 42,227 in the previous year[8]. - Net profit attributable to shareholders reached HKD 94,576, marking a 217.20% increase from HKD 29,816 in 2020[8]. - Basic earnings per share rose to HKD 19.36, a 220.00% increase compared to HKD 6.05 in the same period last year[8]. - Profit for the six months ended June 30, 2021, was HKD 161.6 million, an increase of HKD 126.8 million (364.4%) compared to HKD 34.8 million for the same period in 2020[65]. - Net profit for the period was HKD 161,630 thousand, compared to HKD 34,840 thousand in 2020, indicating a growth of 364.5%[128]. - The company reported a significant increase in sales of smart devices, which rose to HKD 300,234 from HKD 154,546, marking a growth of 94.3%[171]. Assets and Liabilities - Total assets as of June 30, 2021, were HKD 3,296,272, reflecting a 50.12% increase from HKD 2,195,687 at the end of 2020[8]. - Total liabilities increased by 63.98% to HKD 2,460,254 from HKD 1,500,344 at the end of 2020[8]. - The net asset value grew by 20.23% to HKD 836,018 from HKD 695,343 at the end of 2020[8]. - The group’s total outstanding bank and other borrowings increased to HKD 1,348.1 million as of June 30, 2021, from HKD 727.1 million as of December 31, 2020[75]. - The company’s total liabilities increased to HKD 2,431,587 thousand from HKD 1,481,385 thousand, representing a rise of 64%[129]. Market and Business Segments - The semiconductor chip distribution business benefited significantly, with sales and profitability experiencing substantial growth due to increased demand[13]. - The company anticipates continued growth in the semiconductor sector, driven by the ongoing global demand and supply chain shifts[13]. - The television product segment generated sales of HKD 1,284.6 million, reflecting a year-on-year increase of 91.3%[18]. - The optoelectronic display segment saw sales of HKD 868.5 million, with a year-on-year growth of 118.4%[19]. - The image processing segment reported sales of HKD 513.1 million, which is a remarkable year-on-year increase of 402.8%[20]. - The smart devices segment achieved sales of HKD 300.2 million, representing a year-on-year growth of 94.3%[23]. - The communications products segment recorded sales of HKD 272.0 million, showing a significant year-on-year increase of 129.2%[25]. Future Outlook - The company is focused on enhancing its core competitiveness through digital transformation and internal innovation[14]. - The overall market demand for the company's products is expected to remain strong, driven by various industry trends and new customer acquisitions[14]. - The company anticipates a strong demand for display-related products in the second half of 2021, driven by the upcoming smartphone launches and traditional sales peak season[40]. - The company is optimistic about the growth opportunities in the second half of 2021 across various business directions, supported by a diversified business layout[35]. - The independent distribution business is projected to maintain high growth rates in the second half of 2021, driven by strong demand for semiconductor chips[55]. Operational Metrics - Current ratio as of June 30, 2021, was 1.3, down from 1.4 as of December 31, 2020[76]. - Inventory turnover period increased to 22 days for the six months ended June 30, 2021, compared to 17 days for the same period in 2020[77]. - The total employee count as of June 30, 2021, was 536, compared to 408 as of June 30, 2020, with total employee costs for the six months amounting to approximately HKD 119.5 million, up from HKD 46.8 million in the same period last year[88]. Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with its applicable provisions during the six months ended June 30, 2021[99]. - The board believes that consolidating the roles of Chairman and CEO under the same individual ensures consistency in leadership and effective strategic planning[100]. - The audit committee has reviewed the interim financial results and discussed them with external auditors[117]. - Deloitte has conducted a review of the interim financial statements and found no issues that would lead to non-compliance with accounting standards[124]. Cash Flow and Investments - Operating cash flow before working capital changes for the six months ended June 30, 2021, was HKD 240,327,000, compared to HKD 51,519,000 for the same period last year[141]. - Net cash used in operating activities for the six months ended June 30, 2021, was HKD (497,526,000), significantly higher than HKD 115,504,000 in the previous year[141]. - The company raised new bank and other borrowings amounting to HKD 1,136,528,000 during the financing activities[141]. - The company has made investments in joint ventures and third-party loans, indicating ongoing strategic financial activities[141]. Shareholder Information - The board declared an interim dividend of HKD 0.04 per share for the six months ended June 30, 2021, compared to HKD 0.02 per share for the same period in 2020[95]. - The company repurchased a total of 1,960,000 shares at a total cost of HKD 2,421,660, with the highest and lowest prices per share being HKD 1.26 and HKD 1.20 respectively[92]. - As of June 30, 2021, the total number of issued shares was 488,681,030[113].

Financial Performance - Revenue for the year reached HKD 5,541.0 million, representing a year-on-year increase of 16.3%[9] - Gross profit increased by 14.6% to HKD 310.5 million[9] - Net profit attributable to owners of the company grew by 18.8% to HKD 71.0 million[11] - Total assets increased by 8.9% to HKD 2,195.7 million[12] - The company's net profit margin stood at 1.5%[11] - Basic earnings per share increased by 31.6% to 14.42 HK cents[17] - Dividend per share rose by 50.0% to 6 HK cents[17] - Return on equity improved by 25.6% to 12.3%[17] - Full-year sales reached HK$5,541 million, a year-on-year increase of 16.3%, with gross profit of HK$310.5 million, up 14.6%[22] - Revenue for the year ended December 31, 2020, increased by 16.3% to HKD 5,541.0 million compared to HKD 4,762.8 million in 2019[67] - Gross profit increased by HKD 39.6 million to HKD 310.5 million in 2020, with a slight decrease in gross margin to 5.6% from 5.7% in 2019[69] - Annual profit increased by 38.2% to HKD 85.4 million in 2020, with a net profit margin of 1.5% compared to 1.3% in 2019[73] - Net profit attributable to owners of the company increased by 28.9% to HKD 71.0 million in 2020[74] Business Segments and Product Performance - Authorized distribution business showed steady growth, with significant revenue increases in optoelectronics, security, communication products, and optical communication sectors[22] - The optoelectronics display business unit achieved sales of HKD 947.3 million in 2020, a significant year-on-year increase of 78.1%[41] - The storage products business unit achieved sales of HKD 492.2 million in 2020, a slight year-on-year decrease of 0.2%[42] - The smart terminal business unit achieved sales of HKD 396.2 million in 2020, a year-on-year decrease of 26.2%[45] - The TV business unit achieved sales of HKD 2,049.3 million in 2020, a slight year-on-year decrease of 1.8%[40] - The company's optical communication product line sales doubled in 2020 due to increased demand for optical modules, driven by global infrastructure investments in data centers and 5G networks[46] - The security product line saw a significant revenue growth of 98.4% in 2020 compared to 2019, driven by the rapid growth of China's domestic security market[46] - The communication product line, focusing on cellular IoT communication modules, achieved a 57.0% increase in sales revenue in 2020 compared to 2019[46] - The automotive electronics product line remained flat in 2020 due to pandemic impacts and supply shortages, despite some recovery in the second half of the year[47] - The independent distribution business experienced substantial growth in both revenue and profit in 2020, benefiting from market volatility and supply chain disruptions caused by COVID-19[48] Market Trends and Industry Outlook - The global semiconductor market grew by 5.4% to USD 442 billion in 2020[20] - The global semiconductor market grew by 5.4% in 2020, reaching USD 442 billion[38] - Global semiconductor market revenue is expected to grow by 7.7% to $476 billion in 2021, driven by 5G, IoT, big data, and AI industries[28] - The global storage chip market is expected to grow by 12.22% in 2020, reaching USD 119.4 billion[42] - The global semiconductor market is expected to grow by 7.7% in 2021, reaching a market size of $476 billion, driven by recovery and increased demand for 5G, AI, and big data technologies[51] - The company's TV product line is expected to benefit from delayed international sports events and advancements in 8K and Mini LED technologies, with global TV shipments projected to reach 223 million units in 2021, a 2.8% increase[52] - The optoelectronics display business unit is expected to see growth in 2021, with new product lines in the industrial control sector projected to achieve over $1.0 million in incremental sales[53] - The memory product line is expected to grow significantly in 2021, with DRAM sales projected to increase by 18% and NAND flash sales by 17%, driven by new data center investments and 5G smartphone shipments[56] - The domestic 5G optical module market is expected to reach USD 2.27 billion (approximately RMB 15.8 billion) in 2021, driven by 5G infrastructure construction[59] - The Chinese car DVR market size is expected to reach RMB 55.92 billion in 2020, with a year-on-year growth of 27.44%, and is projected to continue growing rapidly in 2021[62] Strategic Initiatives and Future Plans - The company plans to expand its authorized and independent distribution businesses, targeting breakthrough growth in product business units[29] - The company aims to leverage its overseas network to penetrate more international markets with spot distribution business[30] - The company plans to focus on software services and cloud service capabilities, collaborating with internet cloud service providers in IoT, cloud services, and SaaS[33] - The company will continue to provide customized storage solutions and expand its semiconductor chip business in 2021[34] - The company plans to focus on expanding its independent distribution business and exploring e-commerce opportunities in the semiconductor industry in 2021[64] - The company has restructured its memory business to focus on South China, East China, and overseas markets, with plans to expand into server storage, aiming for substantial growth in 2021[56] Overseas Expansion and Operations - Overseas business achieved million-dollar revenue growth in newly established branches, with a new Southeast Asia base set up in 2020[23] - The company's overseas business covers Japan, Singapore, India, and Southeast Asia, with localized services and cloud collaboration helping to mitigate the impact of the pandemic[35] Research and Development - R&D expenses increased by 7.1% to HKD 25.7 million in 2020, primarily due to higher employee costs[70] Expenses and Financial Management - Administrative, sales, and distribution expenses increased by HKD 15.0 million to HKD 168.5 million in 2020, accounting for 3.0% of revenue[71] - Financial expenses decreased by HKD 9.1 million to HKD 18.2 million in 2020 due to lower average interest rates[72] - The company's capital gearing ratio increased from 72.3% in 2019 to 108.5% in 2020 due to increased bank borrowings to meet working capital needs[83] - The company's trade receivables turnover period increased to 62 days in 2020 from 48 days in 2019, attributed to increased sales and delayed payments by SME clients[84] - The company's inventory turnover period increased to 21 days in 2020 from 18 days in 2019, remaining relatively stable[84] Employee and Human Resources - Global employee count grew by double digits in 2020, with increased investment in IT infrastructure and enterprise informatization[24] - The company's employee count increased to 444 by the end of 2020, with total employee costs (excluding directors' remuneration) amounting to HKD 108.3 million[93] - The company conducts strict and standardized internal training programs for new employees, focusing on company introduction and workflow skills[127] - The company provides competitive compensation and has established a self-assessment program to motivate employees and help them achieve their goals[127] Share Repurchases and Capital Management - The company repurchased a total of 2,564,000 shares on the Hong Kong Stock Exchange in 2020, with a total of 11,150,000 shares canceled during the year[98] - In 2021, the company repurchased an additional 1,960,000 shares and canceled 4,274,000 repurchased shares on March 5, 2021[98] - The highest price per share for repurchases in January 2020 was HKD 1.51, and the lowest was HKD 1.49, with a total price of HKD 376,580[98] - In December 2020, the company repurchased 814,000 shares at a price range of HKD 1.33 to HKD 1.30, totaling HKD 1,064,640[98] - The company believes share repurchases can enhance earnings per share and benefit shareholders[171] - The company repurchased a total of 2,564,000 shares during the year, with a total of 11,150,000 shares canceled by the end of 2020[170] - Post-year-end, the company repurchased an additional 1,960,000 shares and canceled 4,274,000 repurchased shares on March 5, 2021[170] - The highest repurchase price per share was HKD 1.51 in January, while the lowest was HKD 1.24 in July[171] - The total repurchase cost (after deducting commissions) was HKD 3,417,700 for the year[171] Joint Ventures and Investments - A joint venture was established on March 8, 2021, with a registered capital of $6,250,000, in which the company holds a 46% stake[100] - The joint venture focuses on designing and manufacturing electronic components for the optical communication market[100] - HKD 61.7 million was set aside for potential acquisitions or investments in the e-commerce or electronics industry, with HKD 28.6 million utilized and HKD 33.1 million remaining, expected to be fully utilized by December 31, 2022[79] Corporate Governance and Leadership - The company's Chairman and CEO, Mr. Tian Weidong, has over 20 years of experience in the semiconductor industry[103] - Mr. Huang Ziliang, the company's CFO, has over 20 years of experience in business management and financial operations[104] - Mr. Liu Hongbing, an executive director, has over 20 years of experience in the electronic engineering industry[108] - Mr. Tian Weidong holds a 53.25% stake in the company through Smart IC Limited, which he wholly owns[157][175] - Mr. Huang Ziliang holds an 18.26% stake in the company through Insight Limited, which he wholly owns[157][175] Compliance and Environmental Responsibility - The company emphasizes compliance with environmental regulations and reported no fines or penalties for non-compliance with health, safety, or environmental laws during the fiscal year 2020[124] - The company ensures compliance with relevant laws and regulations through internal controls, approval procedures, and training for various business departments[123] - The company's environmental policies are supported by employees and effectively implemented, aligning business development with environmental responsibilities[124] Supplier and Customer Relationships - The company's top five suppliers accounted for approximately 78.9% of total procurement, with the largest supplier contributing about 54.7%[147] - The company's top five customers accounted for approximately 51.1% of total revenue, with the largest customer contributing about 18.7%[148] - The company's credit terms with major suppliers range from 30 to 60 days, while credit terms with major customers range from 30 to 120 days[128] - Over 50% of the company's revenue in the year came from its top five customers, highlighting customer concentration risks[132] - The company's major suppliers are well-established integrated circuit and electronic component companies, with business relationships lasting 8 to 14 years[128] - The company's major customers include leading brand electronics manufacturers, ODMs, and OEMs in China, with business relationships lasting 5 to 14 years[128] Dividends and Shareholder Returns - The company proposed a final dividend of 4 HK cents per share for 2020, up from 2 HK cents in 2019, subject to shareholder approval[134] - The company's distributable reserves as of December 31, 2020, were HKD 230.0 million, compared to HKD 255.5 million in 2019[143] Corporate Social Responsibility - The company made charitable and other donations totaling approximately HKD 66,000 in 2020, compared to HKD 60,000 in 2019[145] Financial Risks and Challenges - The company relies on short-term financing, and any withdrawal or increase in interest rates on credit lines could adversely affect its operations and profitability[133] Connected Transactions - The company's wholly-owned subsidiary, Smart IC International, provided a revolving loan facility of $3.8 million to Mingguan Hong Kong at an annual interest rate of 7%, with the loan to be used for financing electronic component procurement orders[182] - The loan agreement between Smart IC International and Mingguan Hong Kong constitutes a connected transaction under the Listing Rules, as Mingguan Hong Kong is a jointly held entity with a 25% stake owned by Smart IC Cloud Holdings Limited[182] - The company's connected transactions with Smart IC Taiwan for goods sales amounted to HKD 101,000 in 2020, a significant decrease from HKD 2,823,000 in 2019[185] - The company's connected transactions with Quiksol International Components Pte Ltd for goods sales amounted to HKD 228,000 in 2020, a significant decrease from HKD 2,898,000 in 2019[185] - The company's connected transactions with Smart IC Taiwan for goods purchases amounted to HKD -1,408,000 in 2020, compared to no transactions in 2019[185] - The company's connected transactions with Quiksol International Components Pte Ltd for goods purchases amounted to HKD -13,000 in 2020, a significant decrease from HKD -690,000 in 2019[185] Share Incentive Plans - The company's share incentive plan and share option plan did not result in any new shares being subscribed or acquired during the year ended December 31, 2020[191] - The maximum number of shares that may be issued upon the exercise of all outstanding options under the company's share option plan is 50,000,000 shares, representing 10.23% of the company's issued share capital[196] - The maximum number of shares that can be granted to any eligible person under the share option plan is limited to 1% of the total issued shares on the date of the option grant[198] Miscellaneous - The company's 2020 annual report is available for review[199] - The document contains a reference to the number 33, which may be relevant to financial data or other metrics[200]

Financial Performance - The company achieved revenue of HKD 2,126.9 million for the first half of 2020, representing a year-on-year increase of 1.76%[10] - Gross profit amounted to HKD 120.3 million, a decrease of 3.47% compared to the same period in 2019[10] - Profit before tax increased by 10.97% to HKD 42.2 million, while net profit attributable to shareholders was HKD 29.8 million, a slight increase of 0.08%[10] - The group's revenue for the six months ended June 30, 2020, was HKD 2,126.9 million, an increase of HKD 36.8 million (1.8%) compared to HKD 2,090.1 million in the same period of 2019[42] - Gross profit for the same period decreased by HKD 4.3 million (3.5%) to HKD 120.3 million, with a gross margin decline of 0.3% to 5.7%[43] - The group’s profit for the six months ended June 30, 2020, was HKD 34.8 million, an increase of HKD 2.9 million (9.1%) compared to HKD 31.9 million in the same period of 2019[50] - Total comprehensive income for the period was HKD 34,303, compared to HKD 32,045 in the same period last year, reflecting a growth of 7.1%[120] - Basic earnings per share for the period was HKD 6.05, compared to HKD 5.91 in the previous year, representing a 2.4% increase[120] Market and Sales Performance - The semiconductor market is projected to grow by 3.3% in 2020, reaching USD 425.9 billion, despite the adverse effects of the pandemic[14] - The company faced challenges in sales from its television and smart terminal product divisions, while other segments like optical display and security products saw significant growth[15] - Overall, the company maintained stable operations despite the pandemic's impact, with a slight increase in sales performance[15] - In the first half of 2020, the sales revenue of television products was HKD 718.5 million, a significant decline of 27.7% year-on-year due to the impact of the pandemic[16] - The sales performance of storage products reached HKD 255.5 million in the first half of 2020, representing a growth of 16.0% compared to the same period last year[19] - The sales revenue of optoelectronic display products amounted to HKD 398.5 million in the first half of 2020, showing a substantial increase of 105.3% year-on-year[20] - The sales revenue of smart terminal products dropped to HKD 122.8 million in the first half of 2020, reflecting a significant decline of 48.9% year-on-year[21] - Independent distribution business achieved sales of HKD 243.4 million in the first half of 2020, marking a year-on-year increase of 43.4%[26] Financial Position and Ratios - Total assets decreased by 4.76% to HKD 1,503.1 million, while total liabilities reduced by 10.58% to HKD 846.1 million[10] - The company's net asset value increased by 3.96% to HKD 657.0 million, indicating a stable financial position[10] - The capital debt ratio improved to 56.4%, down from 72.3% in the previous year, reflecting better financial leverage[10] - The group's capital debt ratio decreased from 72.3% as of December 31, 2019, to 56.4% as of June 30, 2020, due to reduced bank borrowings[61] - The group’s current assets were HKD 1,327.1 million, while current liabilities were HKD 834.0 million, resulting in a current ratio of 1.6 times[62] - The trade receivables turnover period increased to 63 days as of June 30, 2020, compared to 50 days in the same period of 2019[62] Cash Flow and Investments - The total cash and bank balances as of June 30, 2020, were HKD 360.4 million, an increase from HKD 347.4 million as of December 31, 2019[61] - The operating cash flow before changes in working capital for the six months ended June 30, 2020, was HKD 51,519,000, compared to HKD 60,376,000 for the same period in 2019, representing a decrease of approximately 13%[138] - The company raised new bank borrowings amounting to HKD 127,348,000 during the six months ended June 30, 2020, compared to HKD 677,641,000 in the same period of 2019, showing a decrease of approximately 81.2%[138] - The net cash used in financing activities for the six months ended June 30, 2020, was HKD 105,227,000, a significant reduction from HKD 413,518,000 in 2019, indicating a decrease of about 74.6%[138] - The company reported a net cash inflow from investing activities of HKD 32,559,000 for the six months ended June 30, 2020, compared to a net cash outflow of HKD 70,800,000 in the same period of 2019[138] Future Outlook and Strategy - The company plans to focus on the Southeast Asian market and high-end IPTV and Hybrid STB products to enhance performance in the second half of the year[36] - The independent distribution segment will target market opportunities arising from material shortages and increased inventory due to the pandemic[38] - The group aims to leverage its existing distribution business and explore new markets, particularly in Southeast Asia and India, while integrating hardware, software, and cloud services for IoT solutions[41] - The storage chip market is projected to recover in the second half of 2020, driven by demand from online education, remote work, and the gaming console market[31] Corporate Governance and Shareholder Information - The company has adopted the Corporate Governance Code and has complied with its applicable provisions during the six months ended June 30, 2020[83] - The board declared an interim dividend of HKD 0.02 per share for the six months ended June 30, 2020, expected to be distributed around September 30, 2020[81] - As of June 30, 2020, the company’s major shareholders included Mr. Tian Weidong with 53.25% ownership (262,500,000 shares) and Mr. Huang Ziliang with 18.26% ownership (90,000,000 shares)[90] - The company believes that share repurchases can enhance earnings per share and benefit the company and its shareholders[79] - The company has established a non-competition agreement with its major shareholder to prevent direct competition[98] Employee and Operational Information - As of June 30, 2020, the company had a total of 408 employees, with total employee costs amounting to approximately HKD 46.8 million for the six months ended June 30, 2020, compared to HKD 49.3 million for the same period in 2019[73] - The company did not grant any reward shares or stock options under the share incentive plan or stock option plan for the six months ended June 30, 2020, consistent with the previous year[74] - The company recognized approximately 1,710,000 HKD in right-of-use assets and lease liabilities related to new lease agreements for office space during the interim period[196] Audit and Compliance - The interim financial report for the six months ended June 30, 2020, has been published and sent to shareholders[108] - The interim financial statements were reviewed in accordance with Hong Kong accounting standards[115] - No significant issues were found that would lead to a belief that the financial statements were not prepared in accordance with the relevant standards[115]

Financial Performance - The company achieved a revenue of HKD 4.7628 billion for the year ended December 31, 2019, representing a decrease of 3.5% compared to the previous year[22]. - Gross profit for the same period was HKD 270.9 million, an increase of 15.7% year-on-year[22]. - The net profit attributable to owners of the company was HKD 55.1 million, with a net profit margin of 1.3%[9]. - Basic earnings per share for the year were HKD 10.96 cents, down 32.1% from the previous year[15]. - The group's total consolidated revenue for 2019 was HKD 4.76 billion, a slight decrease of 3.5% compared to 2018[38]. - The group's profit for the year ended December 31, 2019, was HKD 61.8 million, a decrease of HKD 19.6 million or 24.1% compared to HKD 81.4 million in 2018[65]. - The net profit attributable to the owners of the company for the year ended December 31, 2019, was HKD 55.1 million, down 31.6% from HKD 80.5 million in 2018[66]. Assets and Liabilities - Total assets as of December 31, 2019, amounted to HKD 1.5782 billion, reflecting a growth of 31.5%[10]. - The company's equity attributable to owners totaled HKD 579.0 million, with a debt-to-equity ratio of 72.3%[14]. - As of December 31, 2019, the group's cash and bank balances amounted to HKD 347.4 million, an increase from HKD 263.2 million as of December 31, 2018[72]. - The group's total bank financing (excluding standby letters of credit) as of December 31, 2019, was HKD 955.8 million, with unutilized amounts of HKD 521.0 million[75]. - The group's capital debt ratio increased from 9.7% as of December 31, 2018, to 72.3% as of December 31, 2019, due to increased bank borrowings[72]. Business Operations - The company maintained stable operations despite a challenging international environment and a 12.1% decline in global semiconductor industry revenue in 2019[22]. - The company serves over 4,200 diverse customers, maintaining stable partnerships with upstream semiconductor manufacturers[22]. - The authorized distribution business, represented by ChipSmart International, maintained stable operations in 2019, contributing to the group's business foundation[25]. - The electronic components distribution business is the main source of cash flow and profit, with a focus on expanding business scope and improving efficiency in 2020[29]. - The group aims to activate its sales network and expand into overseas markets, particularly in India and Southeast Asia, which are expected to have good growth potential[33]. Market Trends and Future Outlook - Future outlook remains cautious due to ongoing global economic uncertainties affecting the electronics manufacturing sector[22]. - The semiconductor industry is expected to face significant impacts in Q2 and Q3 of 2020 due to the COVID-19 pandemic, but long-term growth prospects remain positive with the acceleration of 5G commercialization[28]. - The semiconductor market showed signs of improvement in the second half of 2019, driven by the commercial launch of 5G and increased sales of smart speakers[38]. Product Performance - The group's TV SoC chip distribution accounted for approximately 30% of the global market share, despite a slight decline in global TV sales to 224 million units in 2019[26]. - The group achieved significant sales growth in the optical display, security, automotive electronics, and optical communication sectors in 2019[26]. - Sales of television SoC chips amounted to HKD 2.086 billion, a year-on-year decline of 6.1%[39]. - The smart terminal product line generated sales of approximately HKD 537.2 million, down 30.2% year-on-year[40]. - The optical display business achieved sales of HKD 531.7 million, reflecting a growth of 6.5% compared to 2018[44]. - Sales of storage products totaled HKD 493.2 million, a decrease of 22.7% year-on-year due to falling prices[45]. - The overall sales in the other products category declined by 11.1% compared to the previous year[46]. Research and Development - The group plans to enhance technical R&D investment and strengthen intellectual property management, aiming for long-term value creation through technology[32]. - The group will focus on new applications of AI in smart terminals and explore more business opportunities in cross-sector areas[51]. - The group plans to expand its business scale in storage solutions and establish a new company focused on niche market storage solutions[54]. Shareholder and Corporate Governance - The company proposed a final dividend of HKD 0.02 per share for the year, down from HKD 0.04 in 2018, with an interim dividend of HKD 0.02 already declared and paid[128]. - Over 50% of the company's revenue in the current year came from its top five customers, indicating a concentration risk[126]. - The company has a strict internal training program for new employees to ensure quality and promote internal advancement[121]. - The board maintained compliance with listing rules by having at least three independent non-executive directors, constituting more than one-third of the board[146]. - Major shareholders include Mr. Tian Weidong with a controlled corporation interest of 262,500,000 shares, representing 52.07% ownership, and Mr. Huang Ziliang with 90,000,000 shares, representing 17.85% ownership as of December 31, 2019[166][171]. Employee and Management - The total employee cost for the year ended December 31, 2019, was approximately HKD 102.1 million, up from HKD 87.9 million in 2018[87]. - The management team includes experienced executives with over 20 years in the semiconductor and electronics industries, overseeing overall business strategy and operations[97][98][102]. - The company is focused on research and development, with a dedicated executive responsible for overseeing these initiatives[102]. Compliance and Environmental Responsibility - The company reported compliance with all relevant laws and regulations affecting its business operations during the year[117]. - Environmental protection is recognized as crucial for the company's long-term development, with no fines or penalties incurred for non-compliance with health, safety, or environmental regulations during the year[118].

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 2,090,115 thousand, a decrease of 7.7% compared to HKD 2,264,513 thousand in the same period of 2018[9]. - Gross profit increased by 23.6% to HKD 124,625 thousand from HKD 100,818 thousand year-on-year[9]. - Profit attributable to owners of the company decreased by 19.6% to HKD 29,792 thousand from HKD 37,059 thousand in the previous year[9]. - Basic earnings per share decreased by 20.2% to HKD 5.91 from HKD 7.41 in the same period last year[9]. - The company's profit for the six months ended June 30, 2019, was HKD 31.9 million, a decrease of HKD 5.1 million (13.8%) from HKD 37.0 million in the same period of 2018[52]. - Net profit attributable to owners of the company decreased by 19.7% to HKD 29.8 million compared to the same period in 2018[53]. - The company reported a profit before tax of HKD 38,052 thousand, down 11.1% from HKD 42,973 thousand in the prior period[107]. - Net profit for the period was HKD 31,916 thousand, a decrease of 13.5% compared to HKD 36,953 thousand in the same period last year[107]. - Total comprehensive income for the period was HKD 32,045 thousand, down from HKD 36,124 thousand, reflecting a decrease of 11.5%[107]. Assets and Liabilities - Total assets increased by 29.3% to HKD 1,551,977 thousand from HKD 1,199,855 thousand as of December 31, 2018[9]. - Total liabilities increased by 58.0% to HKD 926,367 thousand from HKD 586,126 thousand as of December 31, 2018[9]. - As of June 30, 2019, the group had cash and bank balances totaling HKD 220.7 million, down from HKD 263.2 million as of December 31, 2018[58]. - The group's outstanding bank and other borrowings increased significantly to HKD 509.1 million as of June 30, 2019, compared to HKD 59.3 million as of December 31, 2018, resulting in a capital debt ratio increase from 9.7% to 81.4%[58]. - Current assets amounted to HKD 1,390.4 million as of June 30, 2019, compared to HKD 1,050.5 million as of December 31, 2018, while current liabilities rose to HKD 918.1 million from HKD 584.2 million[59]. - The total current liabilities were HKD 918,084 thousand, compared to HKD 584,219 thousand, representing an increase of about 57.1%[108]. - The company's cash and bank balances decreased to HKD 84,247 thousand from HKD 159,568 thousand, a decline of approximately 47.3%[108]. Inventory and Receivables - The average inventory turnover days increased by 50.0% to 30 days from 20 days year-on-year[9]. - The average trade receivables turnover days increased by 72.4% to 50 days from 29 days year-on-year[9]. - The company's total employee cost for the six months ended June 30, 2019, was approximately HKD 49.3 million, compared to HKD 38.3 million for the same period in 2018[70]. - The company recognized a trade receivables impairment loss of HKD 2,524,000 for the six months ended June 30, 2019, compared to a reversal of HKD 5,259,000 in the same period of 2018[157]. - Trade receivables rose to HKD 681,990 thousand, up from HKD 471,044 thousand, indicating a growth of approximately 44.7%[108]. - The company experienced an increase in trade receivables by HKD (213,508,000) for the six months ended June 30, 2019, compared to HKD (147,445,000) in the same period of 2018, indicating a rise in credit sales[115]. Market and Sales Performance - The company faced challenges due to global economic trade tensions, impacting sales targets for the first half of 2019[19]. - Sales of storage chips and set-top box chips decreased, while growth was noted in new product areas such as security monitoring and automotive electronics[19]. - In the first half of 2019, the group's core television chip sales decreased by 2.4% year-on-year to approximately HKD 948.3 million, despite a 4.3% decline in domestic color TV consumption[20]. - The total sales of the group's broadcasting and television products in the first half of 2019 amounted to HKD 1,245.8 million, representing a year-on-year decline of 8.7%[20]. - The group's storage chip business saw a significant decline, with total sales dropping by 24.4% year-on-year to approximately HKD 220.3 million in the first half of 2019[22]. - The average price of DRAM products fell by over 30% in the first half of 2019 due to oversupply and weaker-than-expected market demand[21]. - The group's AIoT business sales decreased by 36.9% year-on-year to approximately HKD 33.5 million in the first half of 2019, primarily due to significant fluctuations in demand from a major customer[27]. - The security monitoring product line achieved sales of approximately HKD 66.8 million in the first half of 2019, reflecting a year-on-year growth of 41.5%[28]. - The independent distribution business maintained a steady upward trend, with total revenue of approximately HKD 169.7 million in the first half of 2019[29]. Corporate Governance and Shareholder Information - The board of directors committed to maintaining high standards of corporate governance, adopting effective management accountability systems and high ethical standards[81]. - The company has adopted the Corporate Governance Code as per the listing rules and has complied with applicable code provisions during the reporting period[81]. - The company has no major transactions or contracts involving directors or their related entities as of June 30, 2019[90]. - The company has established a non-competition agreement with its controlling shareholder to prevent direct competition with its business[93]. - As of June 30, 2019, Mr. Tian Weidong holds 262,500,000 shares (52.07%) and Mr. Huang Ziliang holds 90,000,000 shares (17.85%) in the company[85][94]. - The total number of issued shares as of June 30, 2019, is 504,105,030[88][96]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.02 per share for the six months ended June 30, 2019, expected to be distributed around September 30, 2019[79]. - The company will suspend share transfer registration from September 16 to September 18, 2019, to qualify for the interim dividend[80]. Research and Development - Research and development expenses rose by 5.3% to HKD 11.9 million, attributed to increased technical support for new products and higher average salary costs for technical staff[49]. - The AIoT market is projected to grow from USD 5.1 billion in 2019 to USD 16.2 billion by 2024, with a compound annual growth rate of 26.0%[42]. - The company plans to leverage the latest AIoT platform from MediaTek to offer customizable turnkey solutions in smart attendance, access control, and smart retail[42]. - The company anticipates a recovery in business growth in the second half of 2019, driven by the expansion of new product lines and markets[40]. Accounting and Financial Reporting - The company adopted new accounting standards, including HKFRS 16 on leases, which may impact financial reporting[122]. - The company confirmed that the application of HKFRS 16 did not have a significant impact on the financial position or performance for the period[123]. - The company will recognize right-of-use assets at the commencement date of the lease, measured at cost[130]. - The company will present right-of-use assets as a separate item in the consolidated financial position[132]. - The company recognized lease liabilities of HKD 469,000 thousand and corresponding right-of-use assets upon the initial application of HKFRS 16 on January 1, 2019[145].

Financial Performance - The company reported a revenue of HKD 4,935.6 million for the year ended December 31, 2018, representing a growth of 3.1% compared to the previous year[20]. - Gross profit for the same period was HKD 234.1 million, reflecting an increase of 1.4% year-on-year[20]. - The net profit margin improved to 1.9% for the year ended December 31, 2018[23]. - Basic earnings per share rose by 4.0% to HKD 16.14 cents for the year ended December 31, 2018[29]. - In 2018, the company achieved sales of HKD 4.9 billion and a net profit attributable to shareholders of HKD 80.4 million, representing a year-on-year growth of 3.7%[35]. - The group's profit for the year ended December 31, 2018, was HKD 81.5 million, an increase of HKD 4.1 million or 5.3% compared to HKD 77.4 million in 2017[75]. - The net profit attributable to the owners of the company for the year ended December 31, 2018, was HKD 80.4 million, up by HKD 3.7 million from HKD 77.6 million in 2017[76]. - The net cash inflow from operating activities for the year ended December 31, 2018, was HKD 71.9 million, compared to HKD 20.9 million for the year ended December 31, 2017[81]. Assets and Liabilities - Total assets increased by 22.1% to HKD 1,191.6 million as of December 31, 2018[22]. - The company reported a return on assets of 6.8% for the year ended December 31, 2018[33]. - The company’s current ratio was reported at 1.80 as of December 31, 2018, indicating a stable liquidity position[32]. - The group’s current ratio as of December 31, 2018, was 1.80 times, slightly down from 1.83 times as of December 31, 2017[81]. Market Expansion and Strategic Initiatives - The company successfully acquired a 25% stake in Ming Kwan International Hong Kong Limited for USD 3,044,000, becoming its largest single shareholder[15]. - The company established a joint venture in Hong Kong with DTDS Technology Pte. Ltd. to expand into the Indian and Southeast Asian markets, holding a 70% stake in the venture[14]. - A joint venture was established with Singapore's DTDS to develop incremental markets in India and Southeast Asia, indicating a strategic focus on international market expansion[37]. - The company plans to actively seek new investment opportunities in overseas markets due to the shift of low-end electronic manufacturing to India and Southeast Asia[41]. - The company aims to integrate industry resources amid increasing competition and challenges in the electronic components distribution industry, positioning itself as a leading trading platform[44]. - The company plans to expand its distribution business by leveraging existing product lines and exploring new valuable product lines and customer groups[39]. - The company plans to focus on differentiated products such as commercial displays and smart projectors for future growth[57]. Product Performance - The sales of storage power products increased by approximately 8% year-on-year in 2018[47]. - The optical display product business grew by 60.1% year-on-year in 2018[50]. - The sales performance of communication products surged by 88.5% compared to 2017, driven by the demand for cellular IoT modules[51]. - The optical communication products achieved a significant sales increase of 65.4% year-on-year in 2018[52]. - AIoT products saw a sales growth of 43.6% compared to 2017[53]. - The sales of security monitoring products increased dramatically by 390% year-on-year in 2018[54]. - The total sales of broadcasting and television products decreased by 4.9% compared to 2017[46]. Research and Development - Research and development expenses rose by 7.7% to HKD 27.1 million, attributed to long-term technical support needs and increased average salary costs for technical staff[70]. - The company will continue to enhance its technology value-added business by increasing R&D investment and improving financial conversion capabilities in areas such as smart commercial displays and IoT[40]. - The company is actively pursuing new product development and market opportunities in the 5G and AIoT sectors, anticipating significant growth potential[64][65]. Employee and Governance - The company invested HKD 15.23 million in a stock incentive plan for key internal employees to enhance talent retention and motivation[37]. - The group’s employee count increased to 353 as of December 31, 2018, from 299 as of December 31, 2017, with total employee costs amounting to approximately HKD 87.9 million[90]. - The company values employees as its most valuable resource and offers competitive compensation packages[121]. - The board includes independent non-executive directors with extensive experience in financial management and investment, ensuring robust governance[104]. - The company has implemented a rigorous internal training program for new employees, focusing on company introduction and workflow skills[121]. Compliance and Environmental Responsibility - The company has complied with all relevant laws and regulations impacting its business operations during the fiscal year[117]. - Environmental protection is recognized as crucial for the company's long-term development, with no fines or penalties incurred for non-compliance with health, safety, or environmental regulations during the fiscal year[120]. - The company emphasizes the importance of compliance with applicable laws and regulatory requirements, investing significant internal resources to ensure adherence[117]. Shareholder and Financial Policies - The company proposed a final dividend of HKD 0.04 per share for the year, up from HKD 0.03 in 2017, and declared an interim dividend of HKD 0.02 per share[127]. - Over 50% of the company's revenue in the current year came from its top five customers, indicating a high customer concentration risk[125]. - The company has maintained long-term relationships with major suppliers, with business ties ranging from 6 to 12 years, ensuring stable supply channels[124]. - The company is expanding its supplier base through strategic partnerships and exploring new product segments to mitigate risks associated with reliance on major suppliers[124]. - The company has identified multiple strategic product segments that are expected to grow rapidly and plans to continue expanding its product portfolio[125].