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。 COOLPAD GROUP LIMITED 酷派集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2369） 二零二二年末期業績公告 酷 派 集 團 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）公 告 本 公 司 及 其 附 屬 公 司（統 稱「本集團」）截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度（「本年度」）之 綜 合 業 績，連 同 截 至 二 零 二 一 年 十 二 月 三 十 一 日 止 年 度 之 比 較 數 字。 財務概要 截至十二月三十一日止年度 | --- | --- | --- | |------------|------------|-------| | 二零二二年 | 二零二一年 | 變 動 | | 千港元 | 千港元 | (%) | 收 入 207,633 665,380 ...

Financial Performance - Total revenue for the six months ended June 30, 2022, was HKD 140.5 million, a decrease of 56.1% compared to HKD 320.1 million for the same period in 2021[10]. - The company reported a loss before tax of HKD 300.1 million, which is a 42.4% increase from a loss of HKD 210.7 million in the previous year[10]. - Net loss attributable to shareholders was HKD 303.4 million, up 27.4% from HKD 238.1 million in the prior year[10]. - The overall gross loss for the six months ended June 30, 2022, increased significantly to HKD 60.8 million, a 319.3% increase from HKD 14.5 million in the same period of 2021, with a gross loss margin rising from 4.5% to 43.3%[16]. - The company's pre-tax loss for the first half of 2022 was HKD 300.1 million, compared to a pre-tax loss of HKD 210.7 million in the same period of 2021[40]. - The total loss for the period was HKD 303,549,000, an increase from HKD 238,134,000 in the prior year, reflecting a rise of 27.5%[98]. Revenue Breakdown - Sales of mobile phones and related accessories accounted for HKD 132.2 million, representing 94.1% of total revenue, down from HKD 318.6 million or 99.5% in the previous year[12]. - Wireless application service revenue increased to HKD 8.3 million, making up 5.9% of total revenue, compared to HKD 1.5 million or 0.5% in the prior year[12]. - Total revenue for the mobile phone segment was HKD 164.628 million, while property investment revenue was HKD 48.336 million, leading to a total revenue of HKD 212.964 million[123]. Expenses and Costs - Administrative expenses rose to HKD 157.3 million from HKD 124.5 million, accounting for 112.0% of total revenue, up 73.1% from 38.9% in the prior year, primarily due to increased R&D personnel costs[19]. - Sales and distribution expenses decreased to HKD 57.9 million from HKD 80.3 million year-on-year, representing 41.2% of total revenue, an increase of 16.1% from 25.1% in the previous year[18]. - Total employee costs for the six months ended June 30, 2022, amounted to approximately HKD 137.3 million, an increase from HKD 126.38 million for the same period in 2021[54]. Assets and Liabilities - Non-current assets as of June 30, 2022, were HKD 3,784.8 million, slightly up from HKD 3,762.2 million at the end of 2021[10]. - Current assets decreased to HKD 916.3 million from HKD 1,362.8 million at the end of 2021[10]. - Cash and cash equivalents were HKD 573.1 million, down from HKD 814.8 million at the end of 2021[10]. - The total debt as of June 30, 2022, was approximately HKD 227.2 million, with a floating annual interest rate of 7%[25]. - Total liabilities decreased from HKD 2,580,898 thousand as of December 31, 2021, to HKD 2,037,880 thousand as of June 30, 2022, indicating improved financial stability[103]. Market and Competition - The decline in revenue is attributed to the impact of COVID-19 on the domestic market and intense competition in the Chinese smartphone market[12]. - In the first half of 2022, the smartphone shipment volume in the Chinese market was 136 million units, a year-on-year decline of 21.7%[41]. - The group aims to deepen cooperation with China Mobile operators to increase market share and expand its dealer channels across 17 provinces[46]. Research and Development - The company continues to enhance its R&D capabilities, aiming to become a key player in the 5G and AI sectors[5]. - The company incurred research and development expenses of HKD 88,449,000 for the six months ended June 30, 2022, compared to HKD 74,288,000 in the same period of 2021[145]. Shareholder Information - The company did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[149]. - The board believes that the trading price of the company's shares does not reflect its intrinsic value, indicating confidence in the company's future prospects[57]. Corporate Governance - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2022[62]. - The company has not disclosed any significant changes in board member information as per listing rules[90]. Future Outlook - The group plans to continue developing new products and enhance the COOLOS operating system, focusing on system performance and user experience improvements[49]. - The group is committed to digital transformation, utilizing big data and AI to optimize operational costs and improve decision-making efficiency[49].

Financial Performance - Revenue for the year 2021 was HKD 665,380,000, a decrease of 18% from HKD 811,757,000 in 2020[14] - The company reported a loss before tax of HKD 556,009,000 in 2021, compared to a loss of HKD 299,063,000 in 2020[14] - Net loss for the year was HKD 572,376,000, an increase from a net loss of HKD 393,828,000 in 2020[14] - The gross profit for the year was approximately HKD 36.30 million, with a gross profit margin of 5.46%, down from 15.04% in the previous year[36][37] - Administrative expenses increased by 23.76% from HKD 296.43 million in 2020 to HKD 366.86 million in 2021, with the percentage of administrative expenses to total revenue rising from 36.52% to 55.14%[39] - The group recorded a net loss from continuing operations of HKD 572.38 million in 2021, an increase of HKD 227.35 million compared to a net loss of HKD 345.03 million in 2020[48] - Total revenue decreased by 18.03% from HKD 811.76 million in 2020 to HKD 665.38 million in 2021, with a gross profit margin decline of 9.58 percentage points to 5.46%[47] Assets and Liabilities - Non-current assets increased to HKD 3,762,172,000 in 2021 from HKD 3,233,696,000 in 2020, reflecting a growth of 16%[15] - Current assets rose to HKD 1,362,838,000 in 2021, up from HKD 1,087,820,000 in 2020, marking a 25% increase[15] - The total liabilities decreased from HKD 2,619,184,000 in 2020 to HKD 2,580,898,000 in 2021, indicating a reduction in financial obligations[15] - Cash and cash equivalents increased significantly from HKD 208.77 million in 2020 to HKD 814.81 million in 2021, resulting in a debt-to-equity ratio improvement from 64% to 33%[41] Strategic Goals and Innovations - The company is focusing on enhancing the connection efficiency between the real and digital worlds as part of its strategic goals[20] - A new regional contracting model and operational strategy have been established to enhance user engagement and long-term profitability[21] - The company aims to lead innovation in the digital intelligence era by leveraging its strong R&D capabilities[20] - The company is committed to user-centric product innovation, focusing on meeting the most pressing needs of its users[20] - The company aims to complete the implementation of its new strategy in 2022, focusing on building a "product-channel-digital" growth cycle[28] - Coolpad plans to concentrate resources to establish a complete digital and distributed channel system in select provinces to validate a replicable sales model[29] Market Performance - In 2021, Coolpad launched 2 new models in the mainland China market, achieving a shipment volume of 126,300 units[24][25] - As of December 31, 2021, the number of active users of Coolpad smartphones in mainland China reached 76,200[25] - The company launched two new smartphone models in 2021: COOL 20 and COOL 20 Pro, achieving a shipment volume of 126,300 units in mainland China and 76,200 monthly active internet users[59] - The company established over 3,200 authorized service stations across mainland China by the end of 2021 to enhance brand user engagement and market presence[60] - The smartphone market in China saw a shipment volume of approximately 329 million units, a slight increase of 1.1% year-on-year[57] Fundraising and Financial Management - The group successfully raised approximately HKD 186 million through a subscription agreement for 666 million shares at HKD 0.28 per share in March 2021[49] - A rights issue completed in June 2021 raised approximately HKD 981 million, with 3.6 billion shares fully underwritten at the same subscription price of HKD 0.28 per share[50] - The company raised a total of HKD 981 million from a rights issue, with 50% allocated for business expansion and 10% for general working capital[54] - As of December 31, 2021, approximately HKD 376.2 million from the rights issue remains unutilized[54] - The company issued 666,000,000 new ordinary shares at a price of HKD 0.28 per share, raising HKD 186 million for business expansion and general operating funds[56] Governance and Compliance - The company has established three committees: the nomination committee, the remuneration committee, and the audit committee, each with specific responsibilities[74] - The audit committee, composed entirely of independent non-executive directors, provided independent and objective audits on financial activities and risk management[77] - The company has a structured governance policy that includes regular reviews of compliance with laws and regulations[74] - The board's operation included a clear definition of roles and responsibilities to facilitate effective decision-making[69] - The company has a diversity policy for board nominations, considering various perspectives including gender, age, and industry experience[93] Risk Management - The company has identified four primary risk categories and 21 secondary risks through risk identification and assessment[90] - The company has implemented a risk assessment procedure that evaluates risks based on likelihood and impact, with a scoring system ranging from 1 to 25, where higher scores indicate greater risk[87] - The risk levels are categorized into high, medium, and low tiers based on calculated risk values, allowing for better risk management strategies[88] - Major risks include profit risk, instability in overseas markets, and the impact of the pandemic on the group's business, particularly in the US market[122] - The group aims to control risks and uncertainties by understanding and responding to stakeholders' concerns[122] Employee and Management Information - Employee costs for the fiscal year amounted to approximately HKD 252.90 million, an increase from HKD 207.58 million in the previous year[194] - The group had 546 employees as of December 31, 2021, down from 604 employees in the previous year[194] - The management team has a diverse background, with members holding advanced degrees in economics and finance[104] - The group has established a strong leadership team with a mix of industry experience and academic qualifications[110] Environmental and Social Responsibility - The company is committed to environmental and social sustainability, taking actions to reduce energy consumption and waste[148] - The company has implemented green office measures to reduce energy consumption, leading to a continuous decline in electricity usage[148] - Charitable donations made by the group during the year amounted to approximately HKD 15,208,000, a significant increase from HKD 68,000 in the previous year[130] Shareholding Structure - As of December 31, 2021, Mr. Chen Jiajun holds 3,131,355,500 shares, representing 25.87% of the issued share capital[171] - Major shareholders include Mr. Jeffrey Steven Yass with 1,600,000,000 shares (13.22%) and Mr. Qin Tao with 922,500,000 shares (8.91%)[175] - The company’s shareholding structure indicates significant control by a few major shareholders, with Mr. Chen Jiajun being the largest[176] Miscellaneous - The company did not recommend the payment of any final dividend for the year due to restructuring needs[125] - The company has not made any changes to its articles of association during the review year[99] - The company did not engage in any significant acquisitions or disposals during the review period[196] - There were no major lawsuits or arbitration cases involving the company during the year[190]

Financial Performance - Total revenue for the six months ended June 30, 2021, was HKD 320.1 million, a decrease of 17.1% compared to HKD 385.9 million in the same period of 2020[10]. - The company reported a pre-tax loss of HKD 210.7 million, which is a significant increase of 632.4% from a loss of HKD 28.8 million in the previous year[10]. - Net loss attributable to shareholders was HKD 238.1 million, up 261.2% from HKD 65.9 million in the same period last year[10]. - Basic and diluted loss per share was HKD 3.11, compared to HKD 1.04 in the previous year, reflecting a 199.0% increase in losses per share[10]. - The gross loss for the six months ended June 30, 2021, was HKD 14.5 million, a significant decrease of 117.2% from a gross profit of HKD 84.1 million in the same period of 2020, resulting in a gross loss margin of 4.5%[16]. - The company recorded a loss before tax from continuing operations of HKD 210.7 million for the six months ended June 30, 2021, compared to a loss of HKD 28.8 million for the same period in 2020[21]. - The company reported a total comprehensive loss of HKD 224,915,000 for the period, compared to HKD 60,610,000 in the previous year[87]. Assets and Liabilities - Non-current assets as of June 30, 2021, were HKD 3,287.2 million, slightly up from HKD 3,233.7 million at the end of 2020[10]. - Current assets increased to HKD 1,841.1 million from HKD 1,087.8 million at the end of 2020, indicating improved liquidity[10]. - Total liabilities decreased from HKD 3,002.7 million at the end of 2020 to HKD 2,852.7 million as of June 30, 2021[10]. - Cash and cash equivalents significantly increased to HKD 1,174.7 million from HKD 208.8 million at the end of 2020, showing a strong cash position[10]. - The total equity attributable to owners increased to HKD 2,275,212 thousand from HKD 683,033 thousand, reflecting a growth of 233.5%[94]. - The total assets amounted to HKD 3,231,137,000, an increase of 2.37% from HKD 3,156,298,000 as of December 31, 2020[110]. Operational Efficiency - Sales and distribution expenses decreased to HKD 80.3 million, down 19.1% from HKD 99.4 million in the previous year, representing 25.1% of total revenue[18]. - Administrative expenses increased to HKD 124.5 million, up 26.3% from HKD 98.2 million in the previous year, accounting for 38.9% of total revenue[19]. - The company aims to enhance its e-commerce and offline retail channels to improve operational efficiency and product competitiveness, including the introduction of 5G products[40]. - The company has faced challenges due to upstream supply chain constraints, leading to higher procurement costs and lower-than-expected gross margins[37]. Research and Development - The company aims to leverage its R&D capabilities to enhance its product offerings and expand its market presence in the 5G and AI sectors[5]. - The group increased its R&D expenditure, with administrative and R&D expenses accounting for 38.9% of revenue, up 13.5 percentage points from the previous year, focusing on developing the Cool OS mobile operating system[34]. - The company incurred research and development expenses of HKD 74,288,000 for the six months ended June 30, 2021, down 24.1% from HKD 97,783,000 in the same period of 2020[122]. Market Strategy - The company launched its new product, the Coolpad COOL 20 smartphone, on May 25, 2021, as part of its strategy to re-enter the Chinese market[15]. - The group has begun to expand its market channels, actively collaborating with platforms like JD.com and Tmall, and exploring new models for improving channel efficiency in lower-tier markets[36]. - The company remains confident in its new strategic direction focused on the Chinese market despite being in the early stages of implementation[37]. Shareholder Information - The company reported a total of 2,316,155,500 shares held by Wei Hui Investment Limited, representing 21.44% of the issued share capital as of June 30, 2021[62]. - Qin Tao holds 772,500,000 shares directly through Allove Group Limited, which accounts for 8.37% of the total shares[62]. - The company completed a rights issue on June 28, 2021, which adjusted the number of stock options held by Qin Tao from 70,000,000 to 76,176,472[62]. Corporate Governance - The company has reviewed its corporate governance documents and believes it has fully complied with the corporate governance code[81]. - The board of directors emphasizes the importance of good corporate governance to enhance overall performance and accountability[81]. Financial Instruments - The company’s management has established policies and procedures for measuring the fair value of financial instruments, which are reviewed biannually[159]. - The fair value of financial assets as of June 30, 2021, was HKD 45,903,000, compared to HKD 89,382,000 as of December 31, 2020[156]. - The fair value of liabilities measured at fair value as of June 30, 2021, totaled HKD 794,834,000, with HKD 540,813,000 classified under Level 2 inputs and HKD 240,362,000 under Level 3 inputs[167].

coolpad 酷派 COOLPAD GROUP LIMITED 酷派集團有限公司 ( 於開曼群島註冊成立的有限公司 ) ( 股份代號 : 2369) 報 ０２０ 年 Z CCJL designed by coolpa ● 最 公司簡介 酷派集團有限公司（「本公司」），於二零零二年六月十一日 在開曼群島註冊成立為獲豁免有限公司，本公司股份（「股 份」）於二零零四年十二月九日在香港聯合交易所有限公司 （「聯交所」）上市（股份代號：2369）。 宇龍計算機通信科技（深圳）有限公司（「宇龍深圳」）為本公 司的間接全資附屬公司，於一九九三年四月創立。宇龍深 圳是中華人民共和國（「中國」或「中國大陸」）領先的酷派智 能手機、移動數據平台系統及增值業務運營開發商及一體 化解決方案提供商。宇龍深圳主要向中國企業、政府部門 及手機運營商與個人消費者供應其酷派產品。 過去十年來，本公司及其附屬公司（統稱「本集團」）憑藉 在無線通訊科技開發方面對各種無線通訊網絡標準包 括 TD-LTE 、 FDD-LTE 、 TD-SCDMA 、 CDMA-EVDO 、 WCDMA、GSM及CDMA1X網絡的專業知識，開發了許多 有關手機操作系 ...

Financial Performance - Total revenue for the six months ended June 30, 2020, was HKD 385.9 million, a decrease of 41.3% compared to HKD 657.5 million in the same period of 2019[12] - The company reported a loss attributable to owners of HKD 65.9 million, representing an increase of 145.7% from a loss of HKD 26.8 million in 2019[12] - Basic and diluted loss per share was HKD 1.13, compared to HKD 0.53 in the previous year, reflecting a 113.2% increase in loss per share[12] - Gross profit for the period was HKD 84.1 million, down from HKD 105.9 million in 2019, indicating a decline in profitability[16] - The pre-tax net loss for the six months ended June 30, 2020, was HKD 28.8 million, compared to a pre-tax net loss of HKD 26.5 million for the same period in 2019[26] - The net loss for the period was HKD 65,927,000, compared to a loss of HKD 26,828,000 in the same period last year[93] - The company reported a loss from continuing operations before tax of HKD 28,767,000, compared to a loss of HKD 26,474,000 in the previous year[93] - Total comprehensive loss for the period amounted to HKD 60,610,000, up from HKD 25,467,000 in the previous year, indicating a year-over-year increase of 138%[96] Assets and Liabilities - The company’s non-current assets increased to HKD 1,929.6 million as of June 30, 2020, compared to HKD 1,720.4 million at the end of 2019[12] - Current liabilities rose to HKD 2,724.3 million from HKD 2,323.7 million, indicating increased financial obligations[12] - The total debt as of June 30, 2020, was approximately HKD 491.1 million, with a debt-to-equity ratio of 78%[27] - The net current liabilities amounted to HKD (1,151,041,000), worsening from HKD (684,094,000) in the previous year[101] - The company's total assets less current liabilities stood at HKD 778,551,000, down from HKD 1,036,281,000, indicating a decline of 25%[101] Cash Flow and Liquidity - The company’s cash and cash equivalents decreased to HKD 228.5 million from HKD 297.4 million, reflecting a decline in liquidity[12] - Cash outflow from operating activities was HKD (118,291,000) for the six months ended June 30, 2020, compared to HKD (260,574,000) in the same period last year, showing an improvement of 55%[106] - The net cash inflow from investing activities was HKD 233,033 thousand, a significant increase from HKD 84,277 thousand in the prior period[108] - The total cash and cash equivalents at the end of the period amounted to HKD 407,307 thousand, up from HKD 126,846 thousand at the end of the previous period[108] Revenue Segments - Wireless application service revenue was HKD 0.5 million, down from HKD 1.3 million in the previous year, showing a significant drop in this segment[16] - Mobile phone segment revenue for the six months ended June 30, 2020, was HKD 385,920, a decrease of 41.2% from HKD 657,494 in the same period of 2019[129] - Revenue from the discontinued operations of Shenzhen Huiying Microfinance Co., Ltd. for the six months ended June 30, 2020, was HKD 15,468,000, a substantial increase from HKD 183,000 in the same period of 2019[144] Research and Development - The company continues to focus on enhancing its R&D capabilities in 5G and artificial intelligence technologies[5] - Research and development expenses for the first half of 2020 amounted to HKD 97,783, an increase of 51.2% from HKD 64,663 in the same period of 2019[137] - The company has accumulated over 900 patents in the 5G field and continues to invest in R&D for 5G applications, including smart terminals and systems[45] Strategic Initiatives - The company plans to launch new products in the U.S. market, which was delayed due to the ongoing impact of COVID-19[36] - The company successfully expanded its overseas market presence from North America to Japan and Latin America, launching products such as tablets, smartwatches, and trackers[37] - The company plans to expand its market presence and explore new strategies for growth[78] - Future product development and technological advancements are a focus for the company moving forward[78] - The company is considering potential mergers and acquisitions to enhance its market position[78] Shareholder Information - As of June 30, 2020, Mr. Chen Jia Jun holds 897,437,000 shares, representing 14.87% of the company's issued share capital[62] - Mr. Tu Er Fan owns 740,684,000 shares, accounting for 12.28% of the total shares[65] - The total number of shares held by the top five shareholders exceeds 50% of the company's issued share capital[65] - The company did not declare any interim dividend for the six months ended June 30, 2020[56] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance and accountability[90] - The company continues to monitor shareholder interests and compliance with securities regulations[74] Financial Reporting - The financial statements were prepared in accordance with Hong Kong Accounting Standards, with no significant impact from the newly adopted standards[114][116] - The company has adopted revised accounting standards that clarify the definition of a business, which did not affect its financial position[117]

Financial Performance - For the fiscal year ended December 31, 2019, Coolpad Group Limited reported revenue of approximately HKD 1,858.25 million, an increase of 45.50% compared to HKD 1,277.16 million in 2018[15]. - The overall gross profit margin for the fiscal year was 23.25%, a significant increase of 28.88 percentage points from -5.63% in the previous year[17]. - The company achieved a net profit of HKD 112.09 million for the fiscal year, a turnaround from a net loss of HKD 410.66 million in 2018, representing an increase of HKD 522.75 million[17]. - Basic and diluted earnings per share for the fiscal year were HKD 0.0222[17]. - Gross profit for 2019 was HKD 432.04 million, with a gross profit margin of 23.25%, a significant improvement from a gross loss of HKD 71.93 million in 2018, reflecting a 28.88 percentage point increase[32]. - Sales and distribution expenses rose to HKD 269.11 million in 2019, up 70.31% from HKD 158.01 million in 2018, driven by enhanced promotion of new smartphones[33]. - Administrative expenses decreased by 23.35% to HKD 247.65 million in 2019 from HKD 323.08 million in 2018, with the percentage of administrative expenses to total revenue dropping from 25.30% to 13.33%[34]. - The company reported total revenue of HKD 1,858.25 million for the year 2019, an increase of 45.50% compared to HKD 1,277.16 million in 2018, primarily due to increased shipments in the US market[31]. Assets and Liabilities - Non-current assets as of December 31, 2019, were valued at HKD 1,720.38 million, a decrease from HKD 1,856.01 million in 2018[16]. - Current assets increased to HKD 1,639.60 million in 2019 from HKD 1,260.76 million in 2018[16]. - Total liabilities decreased to HKD 2,651.75 million in 2019 from HKD 2,702.10 million in 2018[16]. - The company's cash and cash equivalents increased to HKD 297.42 million as of December 31, 2019, compared to HKD 168.55 million at the end of 2018[40]. - The debt-to-equity ratio improved to 76% in 2019 from 85% in 2018, indicating better financial stability[40]. Research and Development - Coolpad is committed to enhancing its R&D capabilities in the 5G and artificial intelligence sectors to maintain its competitive edge[6]. - The company is focusing on R&D in 5G technology, IoT, and smart hardware, recognizing the importance of R&D capabilities[19]. - The company has established a professional R&D team in the United States and is conducting product demand and preference surveys in the U.S. market[18]. - The company has applied for numerous patents in the 5G field, positioning itself to capitalize on the opportunities presented by the 5G era[54]. - The company is developing AR smart devices for intelligent temperature monitoring and emergency command solutions to enhance safety in densely populated urban areas[62]. Product Development and Market Strategy - The company launched 7 new smartphone models in 2019 and expanded its product line to include smart accessories such as chargers and data cables[18]. - The company plans to expand its product categories to include smart hardware like smart glasses and smartwatches in 2020[20]. - The company aims to provide personalized products and services through differentiated mobile operating systems and applications[6]. - The company aims to increase its market share in North America and strengthen relationships with local operators[20]. - The company has received positive feedback from users for its smart accessories sold on Amazon in the U.S.[20]. Corporate Governance - The board of directors consists of ten members, including five executive directors, one non-executive director, and four independent non-executive directors, ensuring a balanced governance structure[69]. - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules, enhancing transparency and governance standards[64]. - The company has established three committees: the nomination committee, remuneration committee, and audit committee, each with specific responsibilities[78]. - The independent non-executive directors play a crucial role in ensuring the interests of all shareholders are appropriately considered and provide oversight on the company's management[75]. - The company encourages continuous professional development for all directors, providing training through seminars and materials[93]. Environmental Impact - The total greenhouse gas emissions for the year were approximately 8,300 tons, an increase of 38.10% from 6,000 tons in the previous year[136]. - The main source of greenhouse gas emissions was electricity consumption, accounting for over 97% of total emissions[136]. - The total air pollutants generated were 98.98 kg, a reduction of 34.68% compared to 151.52 kg in the previous year[134]. - The company has committed to integrating environmental protection and social responsibility into daily operations to reduce carbon emissions[132]. - The company plans to enhance energy-saving measures and promote the use of energy-efficient appliances among employees[136]. Community Engagement and Social Responsibility - The company donated products worth approximately HKD 6,600,000 to assist underprivileged youth and students in the United States during the reporting year[185]. - The company is actively engaging with local communities to understand their needs and ensure business activities consider community interests[8]. - The company has allocated resources in key focus areas such as education, health, and environmental issues, demonstrating its commitment to community investment[8]. - The company aims to balance business needs, social demands, and environmental impacts through continuous risk monitoring and opportunity exploration[116]. Employee Management - The average monthly employee turnover rate was maintained at approximately 6%, attributed to competitive employee benefits[160]. - As of December 31, 2019, the employee gender ratio was approximately 2:1, with 443 males and 225 females, totaling 668 employees[163]. - A total of 733 employees (including those who have left) received 1,926.5 hours of training, with 86% participation in training programs[171]. - The company has implemented strict safety policies and reported no injuries or fatalities during the reporting year[170]. - The company has a diverse workforce and promotes equal opportunities regardless of various backgrounds[163].

Financial Performance - Total revenue for the six months ended June 30, 2019, was HKD 657.6 million, a decrease of 18.1% compared to HKD 802.8 million in the same period of 2018[11]. - The company reported a pre-tax loss of HKD 26.4 million, significantly improved by 92.3% from a loss of HKD 344.6 million in the previous year[11]. - Net loss attributable to shareholders was HKD 26.8 million, a reduction of 91.8% from HKD 325.9 million in the prior year[11]. - Basic and diluted loss per share was HKD 0.53, down from HKD 6.47 in the same period last year, indicating a substantial improvement[11]. - Gross profit for the period was HKD 106.0 million, compared to a gross loss of HKD 25.1 million in the previous year[15]. - The overall gross profit increased by HKD 131.1 million, compared to a gross loss of HKD 25.1 million in the same period of 2018, representing a 522.3% increase[19]. - The overall gross profit margin improved to 16.1%, up 19.2% from a gross loss margin of 3.1% in the same period of 2018[19]. - The company's net loss for the six months ended June 30, 2019, was HKD 26.8 million, a decrease of 91.9% compared to a net loss of HKD 332.1 million in the same period of 2018[28]. - The group reported a pre-tax loss of HKD 26,828,000 for the six months ended June 30, 2019, a significant improvement compared to a loss of HKD 325,869,000 in the same period of 2018[176]. Revenue Breakdown - Sales of mobile phones and related accessories accounted for HKD 656.0 million, down from HKD 792.0 million in 2018[15]. - Revenue from mobile phones and related accessories was HKD 655,966,000, down from HKD 792,033,000 in the previous year, indicating a decrease of about 17.2%[160]. - The financing services revenue was HKD 337,000, a decline from HKD 684,000, reflecting a decrease of approximately 50.7%[160]. - The group’s total income from customer contracts was HKD 657,628,000, down from HKD 802,752,000, indicating a decline of about 18.1%[160]. Assets and Liabilities - The company’s non-current assets increased to HKD 1,885.5 million from HKD 1,856.0 million at the end of 2018[11]. - Current assets rose to HKD 1,430.8 million, up from HKD 1,260.8 million at the end of 2018[11]. - Total liabilities decreased slightly to HKD 2,926.4 million from HKD 2,702.1 million at the end of 2018[11]. - The total assets as of June 30, 2019, amounted to HKD 3,316.4 million, an increase from HKD 3,116.8 million at the end of 2018[91]. - The group’s liabilities increased to HKD 2,021,665,000 as of June 30, 2019, from HKD 1,805,138,000 at the end of 2018, representing an increase of about 12.0%[157]. Cash Flow and Liquidity - Cash and cash equivalents were HKD 126.8 million, down from HKD 168.6 million at the end of 2018[11]. - Cash outflow from operating activities for the six months ended June 30, 2019, was HKD (260,574) thousand, compared to HKD (123,794) thousand in the previous year, indicating increased operational cash burn[101]. - Cash and cash equivalents at the end of the period were HKD 126,846 thousand, a decrease from HKD 223,844 thousand at the end of the previous year, indicating a reduction in liquidity[101]. Expenses and Cost Management - Selling and distribution expenses rose to HKD 126.7 million, an increase of HKD 21.6 million from HKD 105.1 million in 2018, accounting for 19.3% of total revenue[23]. - Administrative expenses decreased to HKD 110.8 million from HKD 179.3 million in 2018, a reduction of 68.5%[24]. - Cost of sales decreased to HKD 603,480,000 in 2019 from HKD 814,532,000 in 2018, indicating improved cost management[169]. Market and Strategic Focus - In the first half of 2019, the company experienced a decline in procurement orders from telecom operators in the domestic market, leading to unsatisfactory performance[41]. - Approximately 88% of the company's net sales in the first half of 2019 came from the US market, with a focus on smartphone and smart accessory sales through local telecom operators and Amazon.com[42]. - The company continued to strengthen its research and development capabilities, investing in 5G technology and expanding its R&D team to enhance user experience[42]. - The company plans to increase investment in the domestic market, focusing on operator and online channel development, while managing risks in the Southeast Asian market[45]. - The company aims to provide more affordable 5G smartphones to consumers, recognizing the growth opportunities presented by 5G technology[50]. Shareholder Information - As of June 30, 2019, Mr. Chen Jia Jun holds 897,437,000 shares, representing 17.83% of the issued share capital[67]. - Mr. Guo De Ying has a total of 462,889,484 shares, which accounts for 9.21% of the issued share capital[67]. - The total number of share options granted to employees as of January 1, 2019, is 29,468,000, with 3,180,000 options expiring during the period[77]. - The company has 26,288,000 share options available for exercise as of June 30, 2019[78]. Corporate Governance - The company has adopted the corporate governance code and confirmed compliance with its provisions[87]. - The group did not declare any interim dividends for the six months ended June 30, 2019, consistent with the previous year[175].

Financial Performance - For the year ended December 31, 2018, the company reported revenue of approximately HKD 1,277,164,000, a decrease of 62.19% compared to HKD 3,378,077,000 in 2017[11] - The net loss for 2018 was approximately HKD 410,662,000, which represents an 84.92% reduction from the net loss of HKD 2,723,076,000 in 2017[11] - The gross margin for 2018 was -5.63%, an improvement of 3.80% from -9.43% in 2017[11] - Total revenue for the year was HKD 1,277.16 million, a decrease of 62.19% compared to HKD 3,378.08 million in the previous year[22] - Sales of mobile phones and related accessories amounted to HKD 1,261.39 million, down 61.35% from HKD 3,263.89 million in the prior year[23] - The company reported a gross loss of HKD 71.93 million, a reduction of 77.41% from HKD 318.40 million in the previous year[23] - Other income and gains for 2018 were approximately HKD 213.37 million, a decrease of 41.93% from HKD 367.44 million in 2017, primarily due to reduced government grants and interest income[27] - Selling and distribution expenses decreased to HKD 158.01 million in 2018 from HKD 667.86 million in 2017, representing a reduction of 76.34%[31] - Administrative expenses decreased by 54.45% to HKD 323.08 million in 2018 from HKD 709.26 million in 2017, with the percentage of administrative expenses to revenue increasing to 25.30%[32] - The company's cash and cash equivalents as of December 31, 2018, were HKD 168.55 million, down from HKD 451.13 million in 2017[37] - The debt-to-asset ratio increased to 85% in 2018 from 80% in 2017, indicating a higher level of financial leverage[37] Market Expansion and Product Development - The company continued to strengthen partnerships with local operators and launched low-end smartphones to align with their diverse contract layouts[12] - Sales in the U.S. market continued to grow, contributing significantly to total sales, with the U.S. becoming a major business region for the company[12] - The company expanded its product line in the U.S. market to include smart accessories such as data cables, chargers, batteries, and headphones[12] - The company established a dedicated U.S. R&D team to conduct product demand and preference surveys in the U.S. market[12] - The company aims to strengthen its retail network in the U.S. and is prioritizing brand promotion through numerous local events[18] - The company recognizes opportunities in Southeast Asia, South Asia, and Africa, planning to sell profitable products in these regions[18] - The product portfolio will expand into IoT and mobile broadband areas, including grids, speakers, and smart cameras, supported by advancements in AI, IoT, and 5G technologies[53] Research and Development - The company has submitted over 100 Small Cell patent applications as part of its commitment to developing next-generation 5G technology[19] - The company plans to focus on artificial intelligence technologies, including facial recognition and scene classification, to enhance product offerings[17] - The company will continue to invest in R&D for 5G technology and conduct testing to meet commercial standards[19] - The company plans to invest more resources in R&D to enhance user experience and has a dedicated team for optimizing Android features[47] Legal and Compliance Issues - The company has initiated legal action against Xiaomi for patent infringement, with favorable evidence from the patent review committee[14] - The company is currently involved in civil claims from suppliers for overdue payables totaling approximately HKD 147 million[39] - The company faced ongoing litigation with customers regarding overdue trade receivables amounting to approximately HKD 195.82 million[38] Corporate Governance - The company held three meetings of the Audit Committee in 2018, with all members attending each meeting[73] - The Compensation Committee reviewed the compensation packages for 12 senior management members, with 10 earning between HKD 1,000,000 and HKD 1,000,000, and 1 earning between HKD 4,000,001 and HKD 5,000,000[70] - The Nomination Committee held one meeting in 2018, focusing on the review and recommendation of board members for reappointment at the annual general meeting[75] - The company emphasizes continuous professional development for all directors, providing training and updates on relevant regulations and business operations[82] - The company has established three committees: the Nomination Committee, the Compensation Committee, and the Audit Committee, each with specific responsibilities[68] - The company ensures compliance with legal and regulatory policies through regular reviews and monitoring by the board and committees[68] - The board of directors includes independent non-executive members who participate in governance and oversight functions[72] Environmental Sustainability - The total greenhouse gas emissions for the year were approximately 6,000 tons, with over 95% coming from electricity consumption[120] - The company is committed to sustainable development strategies, including environmental sustainability and stakeholder communication[104] - The company focuses on integrating environmental protection and social responsibility into daily operations to reduce carbon emissions[119] - The company has implemented energy-saving measures, including encouraging employees to turn off idle equipment and use natural lighting[132] - The company has established waste management policies to reduce various types of waste and promote recycling[128] Employee and Training Development - The average monthly employee turnover rate was maintained at approximately 8% due to competitive employee benefits[141] - As of December 31, 2018, the employee gender ratio was approximately 2:1, with 416 males and 221 females, totaling 637 employees[143] - A total of 189 employees received 1,160 hours of training during the reporting year, with 30% of employees participating in training[151] - The company emphasizes the importance of employee training and development to enhance performance and professional skills[150] Supplier and Quality Management - The company has established long-term relationships with 375 suppliers, with 329 located in China, 45 in Hong Kong, and 1 in Singapore[154] - The company has implemented a comprehensive quality control system that meets various management system certifications, including ISO9001 and ISO14001[157] - The company has a robust supply chain management system to ensure timely delivery of high-quality products to customers[155]