Financial Performance - For the six months ended June 30, 2023, the company's revenue was approximately HKD 3,463,000,000, a decrease of about 26.9% compared to HKD 4,735,642,000 for the same period in 2022[13] - The gross profit for the same period was approximately HKD 107,861,000, down about 78.2% from HKD 495,250,000 in the previous year[13] - The loss attributable to equity holders of the company for the six months ended June 30, 2023, was approximately HKD 57,073,000, compared to a profit of HKD 114,657,000 for the same period in 2022[13] - The basic loss per share for the six months ended June 30, 2023, was approximately 6.7 HKD cents, compared to a basic earnings per share of 13.6 HKD cents for the same period in 2022[13] - The group reported a loss attributable to equity holders of approximately HKD 57,000,000, compared to a profit of HKD 115,000,000 in 2022, mainly due to declining sales revenue and gross profit[57] - Total comprehensive expenses for the period amounted to HKD 650,972,000, up from HKD 518,101,000 in the previous year, reflecting a 25.5% increase[17] Revenue and Market Performance - Revenue from external customers in mainland China dropped to HKD 3,302,124,000 for the six months ended June 30, 2023, down 28.3% from HKD 4,603,801,000 in the same period of 2022[29] - Revenue from the Chinese market (excluding Hong Kong) was HKD 3,302,124, down 28.2% from HKD 4,603,801 in the previous year[30] - The group's revenue for the first half of 2023 was approximately HKD 3,463,000,000, a decrease of about 26.9% compared to HKD 4,736,000,000 in 2022[50] Assets and Liabilities - The company's total bank and other borrowings as of June 30, 2023, amounted to approximately HKD 3,674,000,000, down from HKD 4,043,000,000 as of December 31, 2022[8] - The debt-to-asset ratio slightly increased to approximately 29.0% as of June 30, 2023, compared to 28.5% as of December 31, 2022[8] - Non-current assets decreased to HKD 6,857,483,000 as of June 30, 2023, from HKD 7,545,933,000 at the end of 2022, representing a decline of 9.1%[19] - Current assets also saw a reduction, totaling HKD 5,819,894,000 compared to HKD 6,643,997,000 in December 2022, a decrease of 12.4%[21] - The net assets of the company stood at HKD 6,750,032,000 as of June 30, 2023, down from HKD 7,443,287,000 at the end of 2022, reflecting a decrease of 9.3%[21] - The company’s current liabilities decreased to HKD 5,003,381,000 from HKD 5,614,298,000, a reduction of 10.9%[21] Costs and Expenses - The cost of goods sold for the six months ended June 30, 2023, was HKD 3,355,613, a decrease of 20.8% from HKD 4,240,392 in 2022[33] - Operating costs decreased by approximately 21.2% to about HKD 325,000,000, compared to HKD 412,000,000 in 2022, mainly due to lower export, employee costs, and transportation expenses[55] - Total financing costs for the six months ended June 30, 2023, were HKD 108,584, up from HKD 42,035 in 2022[32] - The financing costs increased by approximately 158.3% to about HKD 109,000,000, up from HKD 42,000,000 in 2022, primarily due to rising USD loan interest rates[56] Cash Flow and Dividends - The net cash flow from operating activities decreased significantly from approximately HKD 764,000,000 in the same period last year to about HKD 178,000,000, primarily due to pre-tax losses and an increase in trade receivables[60] - The group recorded a net cash outflow from financing activities of approximately HKD 495,000,000, compared to HKD 139,000,000 in the previous year[60] - The company declared a final dividend of 5 HKD cents per share for the previous fiscal year, totaling approximately HKD 60,000,000, compared to HKD 96,001,000 for the same period in 2022[1] - The group did not recommend any interim dividend for the period ended June 30, 2023[40] Strategic Outlook - The company plans to continue its focus on product development and market expansion despite the current financial challenges[26] - The group plans to optimize production systems to enhance product quality and efficiency in anticipation of potential growth in the PC market[50] - The group expects inventory levels in the global PC market to gradually normalize in the second half of 2023, with a forecasted recovery in demand[51] - The group aims to continuously adapt its market strategies and improve its product mix to meet diverse market demands and enhance competitiveness[51] Employee and Operational Metrics - Employee costs decreased to approximately HKD 987,000,000, down from HKD 1,520,000,000 in the previous year, with the number of employees reduced to about 23,000 from 34,000[65] - The group's inventory turnover days decreased to approximately 89 days, down from 109 days in the previous year, with inventory dropping by about 24.6% to approximately HKD 1,653,000,000[61] - Trade receivables increased by approximately 3.9% to about HKD 2,516,000,000, with turnover days slightly decreasing to about 132 days[61]

Financial Performance - The profit attributable to equity holders for the year was approximately HKD 172 million, an increase from HKD 162 million in the previous year[12]. - Total revenue for the year was approximately HKD 8,256,000,000, a decrease of about 26.8% compared to HKD 11,283,000,000 in the previous year[49]. - The gross profit margin decreased to approximately 5.6%, down from 10.7% in the previous year[52]. - The company reported a total of 600,000 stock options granted to participants, with 300,000 options remaining unexercised as of the reporting date[57]. - Basic earnings per share increased by 6.3% to HKD 20.4 from HKD 19.2, while diluted earnings per share rose by 6.8% to HKD 20.4 from HKD 19.1[85]. - The company declared a dividend of HKD 5 per share, a decrease of 37.5% from HKD 8 per share in the previous year[85]. - The company proposed a final dividend of HKD 0.05 per share for the year ended December 31, 2022, down from HKD 0.08 per share in 2021, pending approval at the upcoming annual general meeting[160]. Operational Efficiency - Operating costs decreased by approximately 17.8% to about HKD 806 million, compared to HKD 980 million in the previous year[9]. - The company has completed the integration and relocation of three production facilities in Wujiang, Jiangsu Province, aiming to enhance production efficiency and reduce administrative costs[50]. - The company is actively adjusting its operational strategies and cost controls to maintain competitiveness in a challenging market environment[88]. - The company plans to enhance production efficiency by consolidating production capacity and has acquired land in Vietnam to establish a factory, aiming to mitigate supply chain risks and rising production costs in China[93]. Debt and Financing - Financing costs increased by approximately 90.5% to about HKD 122 million, up from HKD 64 million in the previous year, primarily due to rising USD loan interest rates[11]. - Total bank borrowings as of December 31, 2022, were approximately HKD 4,043 million, a decrease of about 16.7% from HKD 4,853 million the previous year[12]. - The group's debt-to-asset ratio remained stable at approximately 28.5%[14]. Market and Product Development - The group aims to expand its product structure and improve product quality in response to the saturation of the global personal computer market[25]. - The group is investing in advanced equipment to maintain product quality and expand its product offerings amid intense competition due to stagnant demand for casing products[26]. - The group is focusing on developing new casing products to capture market opportunities driven by strong demand for high-end metal casings[22]. - The company plans to continue refining its product portfolio and integrating capacity allocation to seize market recovery opportunities[52]. Foreign Exchange and Risk Management - The group's other income and gains for the year included foreign exchange gains of approximately HKD 395 million, compared to a loss of HKD 133 million in the previous year[8]. - The group has established forward foreign exchange contracts to mitigate potential foreign exchange losses due to fluctuations in the USD/CNY exchange rate[17]. - The group is continuously monitoring foreign exchange risks and adopting conservative measures to reduce adverse impacts from currency fluctuations[17]. - The strong US dollar and depreciation of the RMB resulted in a foreign exchange gain of approximately HKD 395,000,000, partially offsetting the negative impact of declining product demand[49]. Corporate Governance - The board of directors emphasizes the commitment to corporate governance and transparency in financial reporting[84]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance throughout the fiscal year ending December 31, 2022[121]. - The audit committee has reviewed the accounting policies and financial statements for the fiscal year ending December 31, 2022[118]. - The company has established four board committees to oversee various aspects of governance, including the Corporate Governance Committee, Nomination Committee, Audit Committee, and Remuneration Committee[176]. Management and Leadership - The management team includes experienced professionals with over 23 years in banking and project investment planning, and over 26 years in electronic product management, indicating strong leadership capabilities[154][155]. - The management discussion highlights the importance of market expansion and potential new product development in the upcoming fiscal year[84]. - The management team is focused on new product development and technology research, which is essential for maintaining competitive advantage in the market[157]. Employee and Shareholder Relations - The company has implemented a share award scheme to reward contributions from eligible participants and attract suitable talent for future development[109]. - The company emphasizes the importance of cash flow and operational capital needs in determining dividend payouts, reflecting a prudent financial strategy[160]. - The company maintains good long-term relationships with major clients, primarily global notebook manufacturers, and is actively seeking new customers to mitigate risks[135]. Environmental and Social Responsibility - The company emphasizes a strong commitment to environmental protection and will review its eco-friendly measures regularly to enhance sustainability[131]. - The company is committed to maintaining the highest ethical standards in business conduct and compliance with all relevant laws and regulations in its operating regions[100].

Financial Performance - For the year ended December 31, 2022, the company's revenue was approximately HKD 8,256 million, a decrease of about 26.8% year-on-year[3] - The gross profit for the same period was approximately HKD 464 million, down about 61.8% year-on-year[3] - The gross profit margin decreased to approximately 5.6%, down from about 10.7% in the previous year[3] - The net profit attributable to equity holders of the company was approximately HKD 172 million, an increase of about 6.0% year-on-year[3] - Basic earnings per share attributable to equity holders was approximately HKD 20.4 cents, up about 6.3% from HKD 19.2 cents in the previous year[5] - The total comprehensive income for the year was approximately HKD (1,039 million), compared to HKD 409 million in the previous year[7] - Total revenue for the year 2022 was HKD 8,255,947, a decrease of 26.9% from HKD 11,282,979 in 2021[27] - Revenue from mainland China (excluding Hong Kong) was HKD 7,942,911 in 2022, down 28.8% from HKD 11,076,119 in 2021[27] - The group reported a pre-tax profit of HKD 172,149,000 for the year, an increase from HKD 162,396,000 in 2021, representing a growth of 4.6%[37] Assets and Liabilities - Non-current assets decreased to approximately HKD 7,546 million from HKD 9,040 million year-on-year[9] - Current assets decreased to approximately HKD 6,644 million from HKD 8,209 million year-on-year[9] - Current liabilities decreased to approximately HKD 5,614 million from HKD 7,295 million year-on-year[9] - The company's net asset value decreased to HKD 7,443,287 in 2022 from HKD 8,547,701 in 2021, representing a decline of 12.9%[11] - The total non-current liabilities decreased to HKD 1,132,345 in 2022 from HKD 1,406,415 in 2021, a reduction of 19.5%[11] - As of December 31, 2022, the total bank borrowings amounted to approximately HKD 4,043 million, a decrease from HKD 4,853 million the previous year[58] Cash Flow and Income - The company's cash and cash equivalents increased to approximately HKD 1,707 million from HKD 849 million year-on-year[9] - The net cash flow from operating activities increased significantly to approximately HKD 2,256 million from HKD 709 million in the previous year, mainly due to a decrease in inventory and trade receivables[60] - Interest income for 2022 was HKD 8,676, a decrease from HKD 10,495 in 2021[28] - The company reported a total of HKD 1,093,976 in other income for 2022, significantly up from HKD 180,197 in 2021[28] - Other income and gains increased significantly by 507.1% to approximately HKD 1,094,000,000, accounting for about 13.3% of total revenue[54] Expenses and Costs - The cost of goods sold for the year was HKD 7,792,204,000, down from HKD 10,070,265,000 in the previous year, indicating a decrease of 22.6%[31] - The group’s depreciation expense for property, plant, and equipment was HKD 1,001,293,000 in 2022, slightly down from HKD 1,053,492,000 in 2021, a decrease of 4.9%[31] - The total interest expense on financial liabilities not measured at fair value through profit or loss was HKD 132,277,000 for 2022, compared to HKD 73,596,000 in 2021, reflecting an increase of 79.5%[30] - The group recorded other expenses of approximately HKD 392,000,000, a significant increase of 164.0% compared to the previous year, primarily due to asset impairments[56] Dividends and Shareholder Returns - The proposed final dividend per ordinary share is HKD 0.05, down from HKD 0.08 in the previous year, resulting in a total proposed dividend of HKD 60,000,000 compared to HKD 96,001,000 in 2021[36] - The proposed final dividend is HKD 0.05 per share, totaling approximately HKD 60 million, down from HKD 96 million the previous year[70] Operational Changes and Strategy - The company primarily engages in the production and sale of notebook computer casings and handheld device casings, operating as a single business segment[20] - The company completed the integration and relocation of three production facilities in Jiangsu Province, aiming to enhance production efficiency and reduce administrative costs[52] - The company plans to gradually shift some production capacity to Vietnam to leverage cost advantages in manufacturing[52] - The company remains cautiously optimistic about the industry's future, focusing on cost reduction and efficiency improvements[53] Employment and Workforce - The group employed approximately 30,000 staff, a decrease from 38,000 in the previous year, with employee costs amounting to approximately HKD 2,481 million[66] Governance and Compliance - The board of directors believes that having the same person serve as both chairman and CEO enhances management under consistent leadership and improves the formulation and execution of the overall strategy[73] - The company has adopted and applied a code of conduct for directors' securities transactions, ensuring compliance with the standards set forth in the Listing Rules[75] - The audit committee has reviewed the accounting policies, standards, and practices adopted by the group, as well as the consolidated financial information and performance for the year[81] - The consolidated financial statements for the year ended December 31, 2022, have been verified by the company's auditor, Ernst & Young, and are consistent with the figures reported in the annual financial statements[82] - The company is committed to regularly reviewing its management structure and making necessary changes as appropriate[74] - The annual performance announcement and annual report will be made available to shareholders and on the company's website as per the Listing Rules[83]

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 4,736 million, a decrease of 9.3% from HKD 5,222 million in 2021[6] - Profit attributable to equity holders of the company was HKD 115 million, an increase of 213.8% from HKD 37 million in 2021[6] - Basic and diluted earnings per share were both HKD 13.6, up 216.3% from HKD 4.3 in the previous year[6] - Gross profit margin decreased to 10.5% from 11.9% in 2021, while net profit margin increased to 2.4% from 0.7%[6] - Operating profit margin was 1.8%, down from 2.7% in the previous year[6] - The company reported a significant increase in EBITDA to HKD 790 million, up 30.9% from HKD 604 million in 2021[6] - The total comprehensive income for the period was a loss of HKD 518 million, compared to a gain of HKD 144 million in the previous year[15] - Revenue for the six months ended June 30, 2022, was HKD 4,735,642, a decrease of 9.3% compared to HKD 5,222,430 for the same period in 2021[33] - Revenue from the Chinese market (excluding Hong Kong) was HKD 4,603,801, accounting for 97.2% of total revenue, down from HKD 5,135,304 in the previous year[32] - The company reported a total tax expense of HKD 106,555 for the six months ended June 30, 2022, compared to HKD 57,858 in the previous year, reflecting a significant increase[43] - Other income for the six months ended June 30, 2022, amounted to HKD 252,440, compared to HKD 53,678 in the same period of 2021, indicating a substantial increase[37] - The cost of goods sold for the six months ended June 30, 2022, was HKD 4,240,392, compared to HKD 4,601,733 in the previous year, showing a decrease[40] - Gross profit margin fell to approximately 10.5% from 11.9% year-on-year, primarily due to the decrease in revenue[77] - Other income and gains significantly increased by approximately 370.3% to about HKD 252,000,000, driven by foreign exchange gains of about HKD 225,000,000[77] - Financing costs rose by approximately 22.1% to about HKD 42,000,000, mainly due to rising loan interest rates[80] - Profit attributable to equity holders increased significantly to about HKD 115,000,000 from HKD 37,000,000 in the previous year[81] Cash Flow and Assets - Cash and cash equivalents increased to HKD 1,139,221,000, up from HKD 848,600,000, representing a growth of 34.2%[26] - Net cash flow from operating activities was HKD 764,130,000, an increase of 6.1% from HKD 720,151,000 in the previous year[26] - The company reported a net cash outflow from investing activities of HKD 325,986,000, an improvement from HKD 563,020,000 in the previous year[26] - Financing activities resulted in a net cash outflow of HKD 138,990,000, compared to HKD 350,039,000 in the previous year, indicating a reduction of 60.3%[26] - The net current assets decreased to HKD 567,025,000, a decline of 37.9% compared to HKD 913,941,000 as of December 31, 2021[17] - Trade receivables as of June 30, 2022, amounted to HKD 3,532,760,000, a decrease from HKD 4,300,833,000 as of December 31, 2021[49] - The aging analysis of trade receivables shows that HKD 1,992,133,000 was within 3 months, down from HKD 2,780,363,000 in the previous period[50] - The group purchased property, plant, and equipment totaling HKD 304,919,000 during the period, compared to HKD 623,142,000 in the same period last year[47] - The total capital commitments as of June 30, 2022, were HKD 322,751,000, significantly lower than HKD 794,521,000 as of December 31, 2021[64] - The group's total bank borrowings decreased by approximately 1.7% to about HKD 4,769,000,000 compared to HKD 4,853,000,000 at the end of the previous year[82] - Inventory turnover days improved to 109 days from 115 days, while trade receivables turnover days increased to 135 days from 102 days[6] Shareholder Information - The company’s share capital remained unchanged at HKD 200,000,000, with 1,200,008,445 shares issued and fully paid[52] - The company reported a total of 14,808,400 shares issued under the stock option plan, with an exercise price of HKD 1.48 per share[125] - Major shareholder South Asia holds 303,240,986 shares, representing approximately 25.27% of the company's issued share capital[138] - The total number of shares held by major shareholder Lin Meili and her spouse is 333,713,032, accounting for approximately 27.81% of the issued share capital[138] - The company has a stock reward plan that allows for the purchase of shares at market price, managed by a trustee[130] - The stock option plan is valid for 30 years from the adoption date, subject to early termination by the board[136] - The exercise period for stock options ranges from November 7, 2018, to August 31, 2024[125] - The company has a total of 354,345,774 shares held by the trustee of the trust established by Zheng Liyu[138] Corporate Governance - The board believes that appropriate corporate governance practices are essential for sustainable development and has adopted the corporate governance code[147] - The chairman and CEO roles are held by the same individual, Zheng Liyu, since March 16, 2022, to enhance consistent leadership[147] - The audit committee reviewed the accounting policies and the unaudited condensed interim financial information for the period[149] - There were changes in the board of directors, with Zheng Liyu appointed as CEO and Qiu Huiqin as Chief Strategy Officer effective March 16, 2022[143] - The company is committed to regularly reviewing its management structure and making necessary adjustments[147] - All directors have adhered to the standards of the code of conduct regarding securities transactions during the period[148] - The company actively implements appropriate corporate governance practices to ensure compliance with the corporate governance code[147] Market Outlook and Strategy - The company plans to shift part of its production capacity to Vietnam to mitigate uncertainties caused by global geopolitical issues and supply chain disruptions[76] - The company expects continued pressure on the global PC market in the second half of 2022 due to weak demand and high costs, while commercial market demand is anticipated to be more stable[76] - The company will focus on developing higher-priced metal casing technologies and market sales to enhance its product portfolio[76] - The company’s strategy includes strict internal controls and cost reduction measures to improve profitability and create more value for shareholders[76] - The company has seen a significant increase in foreign exchange gains due to the depreciation of the RMB against the USD during the reporting period[74] - The company’s main revenue source remains laptop and 2-in-1 computer casings despite the decline in global PC sales[74] Other Information - No interim dividend was declared for the current period, while a final dividend of HKD 0.08 per share was approved, totaling approximately HKD 96,001,000[44] - The company has not granted, exercised, or cancelled any share options during the reporting period[59] - The company did not purchase, sell, or redeem any of its listed securities during the period[144] - No other matters required disclosure under the listing rules during the period[143]

Financial Performance - Revenue for the year ended December 31, 2021, increased by approximately 12.5% to HKD 11,283 million, compared to HKD 10,030 million in 2020[14]. - Profit attributable to equity holders increased by 24.4% to HKD 162 million, up from HKD 131 million[7]. - Basic earnings per share rose by 27.2% to HKD 19.2, while diluted earnings per share increased by 29.1% to HKD 19.1[7]. - Other income and gains increased by approximately 55.0% to about HKD 180,000,000, compared to HKD 116,000,000 in 2020, primarily due to higher subsidy income and gains from derivative financial instruments[29]. - Operating costs rose by approximately 14.9% to about HKD 980,000,000, compared to HKD 853,000,000 in 2020, driven by increases in employee costs, import/export fees, and transportation costs[30]. - Financing costs fell by approximately 30.9% to about HKD 64,000,000, compared to HKD 92,000,000 in 2020, attributed to lower loan interest rates[33]. - The company reported a net profit margin of 12%, an increase from 10% in the previous year[74]. Market and Operational Insights - The company maintained a stable market share in the casing market, supported by strong demand for laptops and educational devices due to the pandemic[15]. - The shipment volume of plastic casing products saw significant growth, particularly in the Chromebook segment, which dominated the education market[15]. - The company aims to secure higher-priced metal casing orders to maintain its leading position in the market[15]. - The global PC market saw a shipment volume of 348.8 million units in 2021, representing a year-on-year growth of 14.8%, the highest level since 2012[23]. - The demand for personal computers is expected to continue to develop steadily, driven by the launch of Microsoft's Windows 11, which is anticipated to stimulate business user upgrades[27]. - Chromebook shipments fell by 63.6% year-on-year in Q4 2021, indicating a slowdown in demand after initial surges in major markets[23]. - The company plans to gradually relocate part of its production capacity to Vietnam to mitigate rising production and labor costs in China[25]. - The company acknowledges the impact of global supply chain issues and logistics challenges on production costs and operational expenses[24]. Financial Position and Ratios - Net cash flow from operating activities increased by 21.5% to HKD 709 million, compared to HKD 584 million in the previous year[7]. - The interest coverage ratio improved to 413.8%, up from 409.2%[7]. - The net debt to equity ratio increased to 46.8%, compared to 43.4% in the previous year[7]. - The debt-to-asset ratio increased to approximately 28.1%, up from 27.3% in 2020, primarily due to the increase in total bank borrowings[37]. - Total bank borrowings increased by approximately 8.0% to about HKD 4,853,000,000, compared to HKD 4,493,000,000 in 2020[35]. - Inventory increased by approximately 14.3% to about HKD 2,620,000,000, while inventory turnover days decreased to about 95 days from 98 days in 2020[39]. - Trade receivables rose by approximately 8.1% to about HKD 4,297,000,000, with turnover days decreasing to about 139 days from 145 days in 2020[39]. Corporate Governance and Compliance - The company has implemented appropriate corporate governance practices to support its sustainable development[162]. - The board structure includes five executive directors and three independent non-executive directors, ensuring a balance of power[163]. - The company has established a Corporate Governance Committee, Nomination Committee, Audit Committee, and Remuneration Committee, with each committee having specific responsibilities and reporting to the board[174]. - The audit committee is composed of three independent non-executive directors, ensuring oversight of the financial reporting process and risk management systems[184]. - The company has adopted a written policy for the nomination of new directors, ensuring a thorough evaluation process for candidates[178]. - The company has engaged Ernst & Young as auditors, who will be proposed for reappointment at the upcoming annual general meeting[158]. - The company has arranged training for all directors to ensure they remain informed and compliant with governance codes, with all but one director participating in a training seminar[173]. Shareholder Information and Dividends - The proposed final dividend for the year ended December 31, 2021, is HKD 0.08 per share, down from HKD 0.10 per share in 2020[89]. - As of December 31, 2021, the distributable reserves calculated under Cayman Islands law amount to approximately HKD 4,244,167,000[97]. - Sales to the top five customers accounted for approximately 85% of total revenue for the year ended December 31, 2021, with the largest customer contributing about 25%[99]. - Shareholders can request a special general meeting if they hold at least 10% of the paid-up capital, as per the company's articles of association[195]. - The company must reimburse the requestor for all reasonable expenses incurred due to the board's failure to convene the meeting[197]. - Shareholders may send inquiries to the company via email at ir@juteng-intl.com at any time[200]. Strategic Initiatives and Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 12%[74]. - New product launches included a next-generation laptop, which is expected to contribute an additional $200 million in revenue[74]. - The company is investing $50 million in research and development for new technologies aimed at enhancing product performance[74]. - Market expansion efforts are underway, with plans to enter two new international markets by Q3 of the next fiscal year[74]. - The company aims to optimize its operational strategies and enhance its product mix to capture future market opportunities and improve profitability[27]. - The management team emphasized a commitment to sustainability, aiming for a 30% reduction in carbon emissions by 2025[74].

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 5,222 million, an increase of 14.2% from HKD 4,572 million in 2020[5] - Net profit attributable to equity holders for the same period was HKD 9.36 million, a significant decrease of 96.4% from HKD 262.47 million in 2020[12] - Basic earnings per share decreased to HKD 4.3, down 83.4% from HKD 25.9 in the previous year[5] - Gross profit margin decreased to 11.9%, down from 15.1% in 2020, reflecting a decline of 3.2 percentage points[5] - Operating profit margin fell to 2.7%, down 4.4 percentage points from 7.1% in 2020[5] - The total comprehensive income for the period was HKD 144.13 million, compared to HKD 67.44 million in 2020, indicating a recovery in overall performance[14] - The company reported a significant foreign exchange gain of HKD 138.1 million from overseas operations, compared to a loss of HKD 193.37 million in the previous year[14] - The company reported a total equity of HKD 8,279,216, an increase from HKD 8,217,783 as of December 31, 2020[18] - The company incurred a net cash outflow from investing activities of HKD 563,020, compared to HKD 505,743 in the previous year[24] - The group reported a total revenue of HKD 5,222,430,000 for the six months ended June 30, 2021, compared to HKD 4,572,242,000 for the same period in 2020, representing an increase of approximately 14.2%[32] Cash Flow and Assets - The company reported a significant increase in cash flow from operating activities, reaching HKD 720 million, up 958.4% from HKD 68 million in the previous year[5] - The net cash flow from operating activities for the six months ended June 30, 2021, was HKD 720,151, significantly up from HKD 68,040 in the same period of 2020[24] - Cash and cash equivalents at the end of the period were HKD 741,060, compared to HKD 787,098 at the end of 2020[24] - Current assets totaled HKD 7,045,274, a decrease from HKD 7,605,451 as of December 31, 2020[16] - The net current assets were HKD 774,515, down from HKD 907,768 as of December 31, 2020[16] - Total liabilities decreased to HKD 7,650,604 from HKD 8,395,404 as of December 31, 2020[18] - The company’s total non-current liabilities decreased to HKD 1,379,845 from HKD 1,540,721 as of December 31, 2020[18] Market and Operational Insights - The company’s main revenue source remains the sales of notebook and 2-in-1 computer casings, benefiting from strong demand in the personal computer market[72] - The company experienced a significant exchange loss due to the appreciation of the Renminbi against the US dollar, prompting the implementation of currency hedging measures[73] - The company's revenue increased by approximately 14.2% year-on-year to about HKD 5,222,000,000, driven by high demand for laptops for remote work and online learning[76] - The gross profit margin was affected by a higher proportion of lower-margin plastic casings in sales, alongside rising production and operational costs[72] - The company’s management highlighted ongoing challenges from component shortages and logistics issues impacting overall performance[72] Shareholder and Equity Information - The total equity held by the directors and key executives accounted for approximately 27.81% of the company's issued shares[93] - Major shareholder South Asia holds 303,240,986 shares, representing 25.27% of the company's issued share capital[121] - The total shares held by the Bank of Communications Trust Co., Ltd. as trustee amount to 354,345,774 shares, which is 29.53% of the issued share capital[121] - The company has established a defined contribution mandatory provident fund retirement benefit plan for its Hong Kong employees[89] Governance and Compliance - The company has adopted corporate governance practices in line with the requirements of the corporate governance code[131] - The audit committee reviewed the accounting policies and the unaudited consolidated interim financial information for the period[133] - The group has no major contingent liabilities as of the reporting date, indicating a stable financial position[91] Employee and Management Information - The total remuneration paid to key management personnel amounted to HKD 8,149,000 for the six months ended June 30, 2021, compared to HKD 9,564,000 in the same period of 2020[69] - The employee count increased to approximately 41,000 from about 37,000 in 2020, with employee costs rising to approximately HKD 1.921 billion from HKD 1.343 billion in 2020[89] Dividends and Share Options - The company did not recommend the distribution of an interim dividend for the period[130] - The company established a share option plan effective from May 11, 2015, with a validity of ten years[105] - A total of 15,794,400 options were issued under the share option plan, with an exercise price of HKD 1.48 per share[111]

Financial Performance - Revenue for the year ended December 31, 2020, reached approximately HKD 10,030 million, representing a 12.5% increase from HKD 8,916 million in 2019[7] - Profit attributable to equity holders decreased by 10.6% to HKD 131 million, down from HKD 146 million in the previous year[7] - Basic earnings per share fell by 5.0% to HKD 15.1, while diluted earnings per share decreased by 6.3% to HKD 14.8[7] - Gross profit margin improved to 14.3%, up from 12.8%, reflecting a 1.5% increase[7] - Operating profit margin increased to 5.8%, a rise of 2.0% from the previous year[7] - The company recorded a significant decline in net cash flow from operating activities, which dropped by 49.2% to HKD 584 million from HKD 1,149 million[7] - Other income and gains decreased by approximately 18.3% to about HKD 116 million, accounting for about 1.2% of total revenue[30] - The group's income tax expense for the year was approximately HKD 129 million, an increase of about 10.2% compared to HKD 117 million in 2019[34] - Profit attributable to equity holders was approximately HKD 131 million, down about 10.6% from HKD 146 million in 2019, primarily due to increased foreign exchange losses offsetting revenue and gross profit growth[34] Market Trends - The global personal computer market experienced a 13.1% year-over-year growth in 2020, with a notable 26.1% increase in the fourth quarter[18] - Chromebook shipments surged by approximately 80% in 2020, driven by remote education needs, with total shipments reaching around 30 million units[18] - The demand for Chromebooks surged by about 80%, with shipments reaching approximately 30 million units in 2020[25] - In 2020, global PC shipments experienced a robust growth of 13.1% year-on-year, with Q4 shipments increasing by 26.1% to 91.6 million units[25] Operational Efficiency - Operating costs rose by approximately 6.1% to about HKD 853 million, but the percentage of operating costs to revenue decreased to about 8.5% from 9.0%[31] - The company plans to leverage its technological advantages and quality products to capture market opportunities and enhance financial performance[22] - Cash flow from operating activities decreased to approximately HKD 584 million from HKD 1.149 billion in 2019, mainly due to increases in inventory and receivables[38] - The group's inventory turnover days increased significantly to approximately 98 days from 78 days in 2019, with inventory rising by about 38.3% to approximately HKD 2.292 billion[40] - Trade receivables increased by approximately 26.3% to about HKD 3.976 billion, with turnover days rising to approximately 145 days from 129 days in 2019[40] Corporate Governance - The board of directors consists of five executive directors and three independent non-executive directors, ensuring a balance of power and impartial judgment[167] - The company has adopted corporate governance practices in line with the Listing Rules, ensuring compliance and regular reviews[166] - The auditor, Ernst & Young, will be proposed for reappointment at the upcoming annual general meeting[164] - The company has maintained a public float of at least 25% of its total issued share capital[160] - The company has implemented a code of conduct for directors regarding securities trading, in compliance with the Listing Rules[168] Sustainability and Social Responsibility - The company is committed to environmental protection and regularly reviews its eco-friendly measures to enhance sustainability[61] - The company has initiated a sustainability strategy, aiming for a 30% reduction in carbon emissions by 2030[76] - The group made charitable donations of approximately HKD 832,000 during the year ending December 31, 2020[103] Shareholder Engagement - The company aims to enhance shareholder value through sustainable profit growth and stable dividends, considering capital adequacy and liquidity[71] - The company enhances communication with investors through various channels, including financial reports and annual general meetings[199] - Shareholders are encouraged to actively participate in the annual general meeting[199] Employee and Management - The group employed approximately 39,000 staff as of December 31, 2020, an increase from about 37,000 in 2019, with employee costs totaling approximately HKD 2.863 billion[47] - The management team has extensive experience, with key members having over 23 years in banking and over 31 years in quality management[83] Financial Position - Total bank borrowings as of December 31, 2020, amounted to approximately HKD 4.493 billion, a 19.0% increase from HKD 3.775 billion in 2019[37] - The group's distributable reserves as of December 31, 2020, were approximately HKD 4,372,837,000[102] Risk Management - The ongoing global pandemic poses a risk of negative impact on the company, which has initiated a series of response measures to mitigate this effect[59] - Rising labor costs in China have negatively impacted the company's profitability, prompting the adoption of robotic machinery to enhance production efficiency[57] Related Party Transactions - The company has complied with the disclosure requirements of the Listing Rules regarding related party transactions[159] - The total sales amount from the group to Wistron Group for the year ended December 31, 2020, was approximately HKD 679,768,000, an increase from HKD 466,481,000 in 2019[154] - The total sales amount from the group to Compal Group for the year ended December 31, 2020, was approximately HKD 1,919,813,000, up from HKD 1,506,148,000 in 2019[157] Future Outlook - The company maintains a cautiously optimistic outlook for the future, focusing on market opportunities and potential production bases in Southeast Asia[22] - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 15%[76] - New product launches are expected to contribute an additional $200 million in revenue, with a focus on innovative technology solutions[76] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[76]

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 4,572 million, representing a 5.3% increase from HKD 4,341 million in 2019[6] - Net profit attributable to equity holders for the same period was HKD 227 million, a significant turnaround from a loss of HKD 47 million in 2019, marking a 580.2% increase[6] - Basic earnings per share increased to HKD 25.9, compared to a loss of HKD 5.1 per share in the previous year, reflecting a 607.8% improvement[6] - Gross profit margin improved to 15.1%, while operating profit margin was 7.1%, and net profit margin was 5.0%[6] - The company reported a net cash flow from operating activities of HKD 68 million, a decrease of 90.2% from HKD 691 million in the previous year[6] - The total comprehensive income for the period was HKD 67.4 million, a recovery from a loss of HKD 50.4 million in the previous year[14] - The company reported a profit attributable to equity holders of HKD 227,420,000 for the six months ended June 30, 2020, compared to a loss of HKD 47,355,000 for the same period in 2019[43] - The group recorded a pre-tax profit of approximately HKD 227,000,000, a turnaround from a loss of HKD 47,000,000 in 2019, attributed to increases in revenue, gross profit, and other income[76] Cash Flow and Liquidity - The company experienced a significant increase in other income and gains, totaling HKD 111 million compared to HKD 38.6 million in 2019[13] - Net cash flow from operating activities decreased significantly to HKD 68,040,000 for the six months ended June 30, 2020, down from HKD 690,743,000 for the same period in 2019[22] - Cash and cash equivalents at the end of the period were HKD 787,098,000, a decrease from HKD 1,166,154,000 at the end of the previous year, representing a decline of about 32.5%[22] - The company reported a net cash outflow from investing activities of HKD 505,743,000 for the six months ended June 30, 2020, compared to HKD 261,965,000 in the same period of 2019[22] - Financing activities generated a net cash inflow of HKD 94,728,000 for the six months ended June 30, 2020, contrasting with a net cash outflow of HKD 417,677,000 in the previous year[22] Assets and Liabilities - Total non-current assets decreased to HKD 7,793,341,000 as of June 30, 2020, from HKD 7,928,477,000 as of December 31, 2019, representing a decline of approximately 1.7%[17] - Current assets increased to HKD 6,570,036,000 as of June 30, 2020, compared to HKD 6,185,439,000 as of December 31, 2019, reflecting an increase of about 6.2%[17] - Total current liabilities rose to HKD 6,227,456,000 as of June 30, 2020, from HKD 5,659,603,000 as of December 31, 2019, indicating an increase of approximately 10.1%[18] - Total equity decreased to HKD 7,350,064,000 as of June 30, 2020, from HKD 7,448,503,000 as of December 31, 2019, reflecting a decrease of approximately 1.3%[18] - Non-current liabilities decreased to HKD 785,857,000 as of June 30, 2020, from HKD 1,005,810,000 as of December 31, 2019, indicating a decline of about 21.8%[18] Market and Growth Strategy - The company plans to continue expanding its market presence and investing in new product development to drive future growth[13] - The company remains cautiously optimistic about the second half of the year, focusing on the production of laptop, 2-in-1, and tablet shells, while developing higher-priced metal shell technologies[71] - Gartner predicts that 1 billion personal computers will upgrade to Windows 10 in 2020, representing 80% of currently used PCs, indicating a sustained demand for laptops[71] - The impact of the pandemic on the PC market is expected to lead to a sustained increase in demand for laptops over several quarters[71] - The company will adopt flexible market strategies to respond to challenges and seize market opportunities during the economic recovery[74] Shareholder Information and Corporate Governance - The company did not recommend any interim dividend for the current period, maintaining the previous year's interim dividend of HKD 0.10 per share[42] - The company has established a share option scheme aimed at providing rewards and incentives to eligible participants contributing to the group's successful operation[95] - The company has adopted corporate governance practices and regularly reviews them to ensure compliance with the corporate governance code[122] - The audit committee reviewed the accounting policies and practices adopted by the group during the period[124] Employee and Management Compensation - The total remuneration paid to key management personnel was HKD 9,564,000, a decrease from HKD 10,686,000 in the previous year[68] - Employee costs amounted to approximately HKD 1,343,000,000, a decrease from HKD 1,402,000,000 in 2019, with the workforce comprising about 37,000 employees[82] Stock Options and Incentive Plans - The company reported a total of 1,200,000 stock options granted, with an exercise price of HKD 1.48, valid until August 31, 2024[97] - The company is focusing on expanding its stock option plan to incentivize key personnel[98] - The stock options are part of a broader strategy to align employee interests with company performance[98]

Financial Performance - The company's revenue for the year ended December 31, 2019, was approximately HKD 8,916 million, a decrease of 1.7% from HKD 9,072 million in 2018[14]. - Profit attributable to equity holders of the company was HKD 146 million, an increase of 5.2% from HKD 139 million in the previous year[14]. - The basic earnings per share increased by 12.8% to HKD 15.9, compared to HKD 14.1 in 2018[14]. - The gross profit margin improved to 12.8%, up from 11.9% in the previous year, while the operating profit margin rose to 3.8% from 2.7%[14]. - The net cash flow from operating activities was HKD 1,149 million, a significant increase of 37.6% from HKD 835 million in 2018[14]. - Other income and gains decreased significantly by approximately 47.4% to about HKD 142 million, accounting for about 1.6% of total revenue[35]. - Operating expenses decreased by approximately 4.0% to about HKD 804 million, with the percentage of operating costs to revenue declining to about 9.0%[35]. - The group's income tax expense decreased by approximately 15.2% to about HKD 117,000,000, with an effective tax rate of approximately 35.5%[37]. - Profit attributable to equity holders increased by approximately 5.2% to about HKD 146,000,000, driven by higher gross profit and lower operating expenses[37]. - Cash flow from operating activities rose from approximately HKD 835,000,000 to about HKD 1,149,000,000, mainly due to a decrease in trade receivables and other receivables[41]. Market Trends and Demand - The company benefited from a surge in demand for commercial personal computers due to Microsoft's discontinuation of support for Windows 7[18]. - The company anticipates an increase in shipments of commercial and educational laptops due to the COVID-19 pandemic, benefiting from the demand for remote work and online education[29]. - Gartner predicts that by the end of 2020, about 80% of the PCs in use will be upgraded to Windows 10, totaling around 1 billion PCs, driven by the end of support for Windows 7[29]. - In 2019, the global PC shipments reached over 261 million units, marking a 0.6% increase compared to 2018, after seven years of decline[27]. Operational Efficiency and Strategy - The company is actively adjusting its product mix to meet diverse market demands and capitalize on trends in the 2-in-1 computer market[19]. - The company plans to focus on the latest industry trends and invest in technology research and development to seize new market opportunities[29]. - The company is considering strategic acquisitions to enhance its product portfolio, with a target of acquiring at least one company within the next 12 months[77]. - Operational efficiency improvements are expected to reduce costs by approximately 8%, contributing to higher profit margins[80]. - The company has established a partnership with a leading tech firm to co-develop innovative solutions, which is projected to enhance competitive advantage[79]. Inventory and Supply Chain Management - The inventory turnover days increased to 78 days, compared to 73 days in the previous year, indicating a longer holding period for inventory[14]. - The group's inventory turnover days increased to approximately 78 days, with inventory rising by about 4.3% to approximately HKD 1,658,000,000[43]. - The company emphasizes supply chain management by selecting quality suppliers based on financial stability and operational performance[65]. Employee and Management Practices - The group employed approximately 37,000 staff, with employee costs amounting to about HKD 2,696,000,000[49]. - A stock option plan has been implemented to attract and retain qualified employees, enhancing loyalty and cohesion within the company[72]. - The management team has extensive experience, with key executives having over 30 years in the technology and finance sectors, ensuring strong leadership[78]. - The total number of senior management personnel with salaries ranging from HKD 500,001 to HKD 1,000,000 is 2, while those earning between HKD 2,500,001 and HKD 3,000,000 is 3[118]. Corporate Governance - The board of directors consists of five executive directors and three independent non-executive directors, overseeing the company's overall management and operations[171]. - The company has adopted corporate governance practices in line with the Corporate Governance Code as set out in Appendix 14 of the Listing Rules[170]. - The Audit Committee, established on June 17, 2005, consists of three independent non-executive directors and oversees the financial reporting process[191]. - The company has adopted a written policy for the nomination of new directors, which includes interviews and thorough introductions to the company's operations[186]. Shareholder Information - Approximately 80% of the group's revenue came from sales to its top five customers, with the largest customer accounting for about 25% of total revenue[106]. - The group’s distributable reserves as of December 31, 2019, were approximately HKD 4,396,533,000[104]. - The company has a dividend policy that considers performance, cash flow, and operational needs[95]. - The company reported a profit for the year ending December 31, 2019, with a proposed final dividend of HKD 0.10 per share, consistent with the previous year[94]. Challenges and Risks - The demand for casing products remains weak due to competition from new substitutes in the notebook and handheld device market[58]. - Rising labor costs in China are negatively impacting the company's profitability, prompting the adoption of robotic machinery to enhance production efficiency[61]. - The management is closely monitoring the ongoing pandemic and has implemented measures to maintain cash flow and minimize negative impacts[63].

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 4,341 million, representing a 10.0% increase from HKD 3,946 million in the same period of 2018[5] - Loss attributable to equity holders of the company decreased to HKD 47 million, a 69.3% improvement from a loss of HKD 154 million in the previous year[5] - Gross profit margin improved to 10.2%, up from 6.6%, indicating a 3.6% increase[5] - Operating profit margin turned positive at 0.7%, compared to a negative 3.6% in the previous year, reflecting a 4.3% improvement[5] - Net loss margin improved to -1.1%, up from -3.9%, showing a 2.8% increase[5] - The company's revenue for the six months ended June 30, 2019, was HKD 4,341,454, an increase from HKD 3,945,778 in the same period of 2018, representing a growth of approximately 10.0%[46] - Revenue from the Chinese market (excluding Hong Kong) was HKD 4,261,934, compared to HKD 3,873,419 in the previous year, indicating a growth of about 10.0%[44] - The company reported a pre-tax loss for the six months ended June 30, 2019, with various costs including inventory costs and depreciation totaling HKD 3,899,449[54] - The loss attributable to equity holders decreased significantly by approximately 69.3% to about HKD 47,000,000, down from HKD 154,000,000 in 2018[95] Cash Flow and Liquidity - Operating cash flow for the period was HKD 691 million, a significant increase of 300.4% from HKD 172 million[5] - The company's net cash flow from operating activities for the six months ended June 30, 2019, was HKD 690,743, significantly up from HKD 172,492 in the same period last year[23] - Cash and cash equivalents at the end of the period increased to HKD 1,166,154, compared to HKD 670,947 at the end of the previous period[23] - Cash flow from operating activities increased from approximately HKD 172,000,000 in 2018 to about HKD 691,000,000, primarily due to a decrease in trade receivables[97] Assets and Liabilities - As of June 30, 2019, total non-current assets amounted to HKD 8,157,540, a decrease of 3.2% from HKD 8,428,254 as of December 31, 2018[16] - Current assets totaled HKD 5,645,974, down 11.5% from HKD 6,381,958 in the previous period[16] - The net current assets decreased to HKD 276,529, compared to HKD 486,169 at the end of 2018, reflecting a decline of 43.1%[16] - Total liabilities decreased to HKD 5,369,445, down 8.9% from HKD 5,895,789 as of December 31, 2018[16] - The total non-current liabilities decreased to HKD 987,092, down 23.5% from HKD 1,290,621 as of December 31, 2018[18] - The company's total assets less current liabilities stood at HKD 8,434,069, down from HKD 8,914,423, reflecting a decrease of 5.4%[16] Financial Ratios - Interest coverage ratio improved to 79.8%, a significant increase of 157.9% from the previous period[5] - Net debt to equity ratio decreased to 36.0%, down from 40.0%, reflecting a 4.0% improvement[5] - Inventory turnover days increased slightly to 70 days, compared to 69 days in the previous year[5] - Trade receivables turnover days improved to 112 days, down from 125 days, indicating a 10.4% reduction[5] Expenses and Costs - The company reported a total financing cost of HKD 73,753 for the six months ended June 30, 2019, compared to HKD 70,115 in the same period of 2018, reflecting an increase of approximately 3.7%[52] - The cost of goods sold for the six months ended June 30, 2019, was HKD 3,899,449, compared to HKD 3,685,467 in the same period of 2018, which is an increase of about 5.8%[54] - The total tax expense for the period was HKD 16,298,000, down from HKD 20,968,000 in the previous year, indicating a reduction in tax liabilities[60] - Operating expenses increased by approximately 2.5% to about HKD 413,000,000, while the percentage of operating costs to revenue decreased to about 9.5% from 10.2% in 2018[93] Shareholder Information - The company approved and paid a final dividend of HKD 0.10 per share for the previous fiscal year, totaling approximately HKD 116,634,000, an increase from HKD 91,804,000 in the prior year[58] - The company did not recommend any interim dividend for the current period, consistent with the previous year[58] - The company has a total of 72,862,000 shares outstanding, with a reduction of 2,218,000 shares accounted for[123] - As of June 30, 2019, major shareholders held approximately 28.32% of the company's issued share capital, with South Asia holding 26.00%[130] Corporate Governance - The board has implemented corporate governance practices in line with the corporate governance code and has complied with its provisions during the reporting period[136] - The audit committee reviewed the accounting policies and the unaudited consolidated interim financial information for the period[138] - The board has adopted a standard code of conduct for securities transactions, which has been adhered to by all directors during the reporting period[137] Accounting Standards - The adoption of HKFRS 16 resulted in an increase of HKD 567,012,000 in right-of-use assets and a decrease of HKD 552,232,000 in land lease, with total assets increasing by HKD 285,000[33] - The cumulative impact of adopting HKFRS 16 on retained earnings was adjusted as of January 1, 2019, without restating comparative figures for 2018[27] - The company has not experienced significant financial impact from the new and revised HKFRS standards, except for HKFRS 16[27] - The new definition of leases under HKFRS 16 requires lessees to recognize all leases on the balance sheet, significantly changing the accounting treatment of leases[28]