Financial Performance - Revenue for 2019 was HK$275,354,000, an increase of 5.2% from HK$262,080,000 in 2018[5] - Gross profit for 2019 was HK$93,142,000, slightly down from HK$94,055,000 in 2018, representing a decrease of 1%[5] - Profit before tax increased significantly to HK$36,344,000 in 2019, up 83.5% from HK$19,806,000 in 2018[5] - Profit for the year attributable to equity holders of the parent was HK$30,313,000, a substantial increase from HK$11,507,000 in 2018, marking a growth of 163.5%[5] - The Group's revenue for the year ended December 31, 2019, increased by approximately 5.1% year-on-year to HK$275.4 million, while gross profit decreased by approximately 1.1% to HK$93.1 million[34] - Revenue from thermal imaging products and services declined by 2.6% year-on-year to approximately HK$156.6 million, accounting for 56.8% of the Group's total revenue[36] - Revenue from self-stabilised imaging products and services decreased by 20.5% year-on-year to approximately HK$34.6 million, representing 12.6% of the Group's total revenue[38] - Revenue from general aviation products and services for the year ended December 31, 2019, was approximately HK$84.2 million, accounting for approximately 30.6% of the Group's total revenue[40] - Revenue from general aviation products and services increased by approximately HK$26.3 million, or 45.4%, from approximately HK$57.9 million for the year ended 31 December 2018 to approximately HK$84.2 million for the year ended 31 December 2019[50] Assets and Liabilities - Total assets as of December 31, 2019, were HK$360,117,000, up from HK$256,446,000 in 2018, indicating a growth of 40.4%[7] - Total liabilities decreased to HK$38,785,000 in 2019 from HK$71,132,000 in 2018, a reduction of 45.5%[7] - As at 31 December 2019, the Group reported net current assets of approximately HK$302.5 million, compared to approximately HK$172.6 million as at 31 December 2018[58] - As at 31 December 2019, the Group's cash and bank balances increased by approximately HK$124.2 million to approximately HK$177.1 million, compared to HK$52.9 million as at 31 December 2018[59] Strategic Initiatives - The company plans to expand its market presence and invest in new product development to drive future growth[16] - The management is optimistic about the upcoming fiscal year, projecting continued revenue growth driven by strategic initiatives[16] - The company is focusing on enhancing its technological capabilities to improve operational efficiency and customer experience[16] - There are ongoing discussions regarding potential mergers and acquisitions to strengthen market position and expand service offerings[16] - The Group aims to focus on products for detecting heat abnormalities in electricity substations and overhead powerlines, as well as infrared body temperature screening systems[36] - The Group plans to expand its product portfolio for self-stabilised imaging products through the new research and development center in Hong Kong[38] Research and Development - The establishment of a research and development center in Hong Kong in November 2019 aims to enhance product quality and develop new products, thereby strengthening competitiveness and expanding market reach, particularly in Hong Kong and Southeast Asia[21] - The Group established a new research and development center in Hong Kong with a total floor area of approximately 182 square meters to enhance capabilities in developing infrared body temperature screening systems[34] - The relocation of the research and development center in Guangzhou is ongoing, expected to provide more tailor-made products and robust services[34] - The Group is focusing on research and development to maintain competitive advantages, with new R&D centers established in the PRC and Hong Kong[42] Market Conditions - The overall economic development in Mainland China remains challenging, but the company is committed to its strategic plans for growth[23] - The overall global economic conditions in 2019 were challenging, with China's GDP growth slowing to 6.1% from 6.6% in 2018 due to trade tensions with the US[34] - The Group expects that global trade conflicts and the spread of COVID-19 will continue to materially impact its operating environment and product demand[42] - The demand for thermal imaging products is expected to rise due to the COVID-19 pandemic, with a focus on fever detection and abnormal body temperature instruments[27] Management and Governance - The company has a strong management team with diverse backgrounds in finance, aviation, and marketing, enhancing its operational capabilities[98][100][102] - The Group's leadership includes members with significant experience in both military and civilian aviation, providing a competitive advantage in the market[100][101] - The company has adopted high corporate governance standards to safeguard shareholder interests and enhance corporate value[115] - The Board consists of six members, including three executive directors and three independent non-executive directors[121] - The Company has established three Board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee[135] Corporate Governance - The Company complies with the requirement of having at least three independent non-executive Directors, representing more than one-third of the Board[132] - The Company has received written annual confirmations of independence from all independent non-executive Directors[132] - The Company has adopted the Model Code for Securities Transactions to regulate dealings by directors[118] - The Company is committed to achieving high corporate governance standards as essential for its success[115] - The Board is responsible for overseeing the Group's businesses, strategic decisions, and performance[121] Employee and Staff Information - Total staff costs for the year ended 31 December 2019 were approximately HK$35.2 million, an increase from HK$29.5 million in 2018[82] - The Group had a total of 145 employees as of 31 December 2019, up from 140 employees in 2018[82] Dividend Policy - The Company did not recommend the payment of a final dividend for the year ended 31 December 2019[83] - The Group adopted a dividend policy on February 22, 2019, prioritizing cash distribution to shareholders[170] - The dividend payout ratio will be determined by the Board at its discretion, considering the Group's financial results and future prospects[170] - All shareholders have equal entitlement to dividends and distributions under the Cayman Islands Companies Act[173]

Financial Performance - Revenue for the six months ended June 30, 2019, was HK$97,493,000, a decrease of 8.8% compared to HK$106,566,000 for the same period in 2018[17] - Gross profit for the same period was HK$35,029,000, down from HK$38,078,000, reflecting a gross margin of approximately 36%[17] - Profit before tax increased to HK$11,590,000, compared to HK$5,365,000 in the prior year, representing a significant growth of 116.3%[17] - Profit attributable to owners of the parent for the period was HK$9,478,000, a substantial increase from HK$2,950,000 in the previous year[17] - The Group's profit for the period attributable to owners of the parent increased by approximately HK$6.5 million, or 216.7%, from approximately HK$3.0 million for the six months ended 30 June 2018 to approximately HK$9.5 million for the six months ended 30 June 2019[53] - Total comprehensive income for the period was HK$9,409,000, compared to HK$2,461,000 in the same period of 2018, indicating a strong improvement[157] - Basic and diluted earnings per share attributable to ordinary equity holders of the parent improved to HK2.40 cents, up from HK0.98 cents, reflecting a growth of 145%[163] Assets and Liabilities - Total assets as of June 30, 2019, were HK$331,440,000, up from HK$256,446,000 as of December 31, 2018, indicating a growth of 29.3%[18] - Total liabilities decreased to HK$30,475,000 from HK$71,132,000, improving the net assets to HK$300,965,000 compared to HK$185,314,000[18] - As at 30 June 2019, the Group reported net current assets of approximately HK$281.5 million, an increase from approximately HK$172.6 million as at 31 December 2018[57] - The Group's cash and bank balances were approximately HK$157.6 million as at 30 June 2019, representing an increase of approximately HK$104.7 million compared to approximately HK$52.9 million as at 31 December 2018[57] - Total current assets increased to HK$307,939,000, a rise of 26.4% from HK$243,723,000 in 2018[184] - Total current liabilities decreased to HK$26,448,000, down from HK$71,132,000, indicating a reduction of 62.8%[184] - Net current assets improved to HK$281,491,000, up from HK$172,591,000, representing a growth of 63.2%[184] Revenue Breakdown - Revenue from thermal imaging products and services was approximately HK$38.4 million, accounting for about 39.4% of the Group's total revenue during the Period, down from 64.4% in the same period last year[21] - The self-stabilised imaging products and services segment generated revenue of approximately HK$18.7 million, representing 19.2% of the Group's revenue, an increase from 13.3% in the previous year[23] - Revenue from the general aviation products and services segment was approximately HK$40.4 million, accounting for 41.4% of the Group's revenue during the period, compared to HK$23.8 million and 22.3% in the same period last year[25] - Revenue from thermal imaging products and services decreased by approximately HK$30.2 million, or 44.0%, from approximately HK$68.6 million to approximately HK$38.4 million[41] - Revenue from self-stabilised imaging products and services increased by approximately HK$4.5 million, or 31.7%, from approximately HK$14.2 million to approximately HK$18.7 million[41] - Revenue from general aviation products and services increased by approximately HK$16.6 million, or 69.7%, from approximately HK$23.8 million to approximately HK$40.4 million[42] Strategic Focus and Future Outlook - The company is focusing on market expansion and new product development to drive future growth[19] - The management anticipates continued improvement in profitability and operational efficiency in the upcoming periods[19] - The company is exploring potential mergers and acquisitions to enhance its market position and product offerings[19] - New technology initiatives are being prioritized to improve service delivery and customer satisfaction[19] - The Group continues to focus on enhancing product quality and maintaining high-end service offerings to customers[21] - The global economy and the Group's business are anticipated to remain unstable but positive, with expectations of improved performance in the second half of 2019 due to resuming bidding activities[30] Research and Development - A research and development centre is being established in Hong Kong, expected to open in late 2019, in addition to the existing centre in Guangzhou[23] - The Group plans to establish new research and development centers in the PRC and Hong Kong to keep pace with technological changes in the industry[37] - A new research and development center for infrared body temperature screening systems and self-stabilized imaging products is expected to open later this year in Hong Kong[37] Shareholding and Corporate Governance - As of June 30, 2019, Mr. Yeung and Ms. Wong each hold 300,000,000 shares, representing approximately 75% of the total issued shares of 400,000,000[96] - The entire issued share capital of Peiport Alpha is owned as to 70% by Mr. Yeung and 30% by Ms. Wong, who is his spouse[96] - The company is approximately 75% owned by Peiport Alpha, which is controlled by Mr. Yeung and Ms. Wong[96] - The company has not disclosed any other substantial shareholders as of June 30, 2019, apart from the directors and chief executive[117] Expenses and Cash Flow - The Group's administrative expenses decreased by approximately HK$5.9 million, or by 30.7%, from approximately HK$19.2 million for the six months ended 30 June 2018 to approximately HK$13.3 million for the six months ended 30 June 2019[47] - The Group's other expenses decreased by approximately HK$2.7 million, or by 100.0%, due to the absence of foreign exchange loss recognised for the six months ended 30 June 2019 compared to approximately HK$1.9 million for the six months ended 30 June 2018[47] - For the six months ended 30 June 2019, net cash generated from operating activities was approximately HK$9.7 million, compared to approximately HK$11.5 million for the same period in 2018[59] - The cash flows used in investing activities for the six months ended June 30, 2019, were HK$(2,145,000), compared to HK$63,859,000 in 2018, indicating a substantial decrease in cash inflow from investments[200]

Financial Performance - Revenue for the year ended December 31, 2018, was HK$262,080,000, an increase from HK$238,406,000 in 2017, representing a growth of 9.0%[5] - Gross profit for 2018 was HK$94,055,000, up from HK$82,998,000 in 2017, indicating a gross profit margin improvement[5] - Profit for the year decreased to HK$11,507,000 in 2018 from HK$34,925,000 in 2017, reflecting a decline of 67.0%[5] - The company reported a profit before tax of HK$19,806,000 for 2018, a significant decrease from HK$44,215,000 in 2017, down by 55.2%[5] - The attributable profit to equity holders of the parent was HK$11,507,000 in 2018, compared to HK$34,469,000 in 2017, a decline of 66.7%[5] - For the year ended December 31, 2018, revenue increased from HK$238.4 million to HK$262.1 million, representing a growth of 9.9% compared to 2017[24] - The Group achieved a revenue increase of approximately 9.9% to approximately HK$262.1 million for the year ended 31 December 2018, compared to approximately HK$238.4 million for the corresponding year of 2017[38] - The Group's gross profit increased to approximately HK$94.1 million for the year ended 31 December 2018, representing an increase of approximately 13.4% from approximately HK$83.0 million for the year ended 31 December 2017[38] - Revenue from thermal imaging products was approximately HK$160.7 million for the year ended December 31, 2018, accounting for about 61.3% of the Group's total revenue[45] - Revenue from self-stabilised imaging products was approximately HK$43.5 million for the year ended December 31, 2018, representing about 16.6% of the Group's total revenue[50] - Revenue from general aviation products and services for the year ended December 31, 2018, was approximately HK$57.9 million, accounting for approximately 22.1% of the Group's total revenue[64] Assets and Liabilities - Total assets as of December 31, 2018, were HK$256,446,000, down from HK$304,699,000 in 2017, a decrease of 15.8%[7] - Total liabilities increased to HK$71,132,000 in 2018 from HK$38,731,000 in 2017, representing an increase of 83.5%[7] - As at 31 December 2018, the Group reported net current assets of approximately HK$172.6 million, down from approximately HK$251.1 million as at 31 December 2017[77] - The Group's cash and bank balances as at 31 December 2018 were approximately HK$52.9 million, representing an increase of approximately HK$12.3 million compared to HK$40.6 million as at 31 December 2017[77] Strategic Focus and Future Plans - The company plans to focus on market expansion and new product development in the upcoming fiscal year[15] - The management highlighted the importance of enhancing operational efficiency to improve profitability moving forward[15] - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its offerings[15] - The Group emphasizes research and development as a core competitive strength and plans to establish new R&D centers in China and Hong Kong in 2019[29] - The Group aims to enhance brand recognition and reputation by obtaining internationally recognized certificates for its products[31] - The Group plans to actively participate in industry exhibitions and trade fairs to expand its business network[31] - The Group is committed to maximizing long-term returns for shareholders while exploring new business opportunities[31] Market Trends and Product Development - The revenue growth was primarily driven by the performance of thermal imaging products, self-stabilised imaging products, and general aviation products and services[38] - The thermal imaging products market is experiencing rapid growth, particularly due to declining production costs and increasing applications across various industries[41] - Thermal imaging products are now widely used for infection prevention and epidemic control in public facilities such as hospitals and schools[41] - The market for civil and law enforcement self-stabilised imaging products is experiencing an upward trend driven by downstream user needs, indicating significant expansion potential in the industry[45] - The development of the Internet of Things (IoT) is expected to diversify the applications of self-stabilised imaging products, further promoting market growth[46] - The general aviation market in China is projected to become a key strategic emerging market, with national policies encouraging the purchase of general aviation aircraft[52] Corporate Governance and Management - The company has adopted the principles and code provisions of the Corporate Governance Code since its listing date, ensuring compliance throughout the reporting period[139] - The Board of Directors consists of six members, including three executive directors and three independent non-executive directors[149] - The company is committed to high corporate governance standards to safeguard shareholder interests and enhance corporate value[138] - The Board is collectively responsible for promoting the success of the company by directing and supervising its affairs[147] - The Audit Committee was established on December 18, 2018, in compliance with the Listing Rules and CG Code[158] - The primary duties of the Audit Committee include reviewing financial statements and overseeing internal control and risk management systems[159] Employee and Operational Insights - Total staff costs for the year ended December 31, 2018, were approximately HK$29.5 million, an increase from HK$25.6 million in 2017[88] - The group had a total of 140 employees as of December 31, 2018, down from 144 in the previous year[88] - The company will invest in recruitment of additional sales and marketing personnel and provide training to staff to keep them updated with the latest technological developments[59] Dividend Policy - The Company did not recommend the payment of a final dividend for the year ended December 31, 2018[89] - The Group adopted a Dividend Policy on February 22, 2019, focusing on maintaining sufficient resources and flexibility to meet financial and operational requirements while enhancing shareholder value for sustainable long-term yields[189] - The Company prioritizes cash dividends and shares profits with shareholders, with the dividend payout ratio determined at the Board's discretion based on financial results and future prospects[190]