Revenue and Profitability - Revenue for the six months ended June 30, 2024, was approximately HKD 2,999 million, a decrease of about 13.4% year-on-year[1] - Gross profit for the same period was approximately HKD 199 million, an increase of about 84.9% year-on-year, with a gross margin rising from approximately 3.1% to 6.6%[1] - Loss attributable to equity holders of the company was approximately HKD 69 million, compared to a loss of approximately HKD 57 million in the same period of 2023[1] - Basic loss per share attributable to equity holders was approximately HKD 8.1 cents, compared to HKD 6.7 cents in the same period of 2023[2] - The company reported a pre-tax loss of approximately HKD 94.6 million for the six months ended June 30, 2024, compared to a pre-tax loss of approximately HKD 96.4 million in the same period of 2023[2] - Other income and gains for the period were approximately HKD 155.8 million, down from HKD 266.5 million in the same period of 2023[2] - The company recorded a loss attributable to equity holders of approximately HKD 69,000,000 for the first half of 2024, compared to a loss of HKD 57,000,000 in the same period of 2023[22] - Other income and gains fell by about 41.5% to approximately HKD 156,000,000, down from HKD 266,000,000, primarily due to a decrease in foreign exchange gains[26] Assets and Liabilities - Total non-current assets as of June 30, 2024, amounted to approximately HKD 6,263 million, down from HKD 6,527 million as of December 31, 2023[4] - Current assets totaled approximately HKD 5,247 million as of June 30, 2024, compared to HKD 5,628 million as of December 31, 2023[4] - Current liabilities were approximately HKD 4,642 million as of June 30, 2024, slightly down from HKD 4,679 million as of December 31, 2023[4] - Non-current liabilities decreased significantly to HKD 419,448 from HKD 719,310, representing a reduction of 41.7%[5] - The company's net asset value as of June 30, 2024, was HKD 6,448,917, down from HKD 6,756,792, indicating a decline of 4.5%[5] - The company’s total equity as of June 30, 2024, was HKD 6,448,917, down 4.5% from HKD 6,756,792 as of December 31, 2023[5] Cash Flow and Financing - The total bank and other borrowings as of June 30, 2024, were approximately HKD 2,972,000,000, a decrease from HKD 3,137,000,000 as of December 31, 2023[28] - The net cash flow from operating activities increased from approximately HKD 178 million to approximately HKD 480 million, primarily due to a decrease in trade receivables and inventory[29] - The group recorded a net cash outflow from investing activities of approximately HKD 199 million due to the purchase of production equipment for a new factory in Vietnam[29] - The debt-to-asset ratio remained stable at approximately 25.8%[29] Operational Performance - The company continues to focus on its core business of producing and selling notebook computer casings and handheld device casings, with no additional reportable segments identified[9] - The cost of goods sold decreased to HKD 2,799,904,000 from HKD 3,355,613,000 year-on-year[14] - Operating costs rose by approximately 7.0% to about HKD 347,000,000, compared to HKD 325,000,000 in the previous year, mainly due to increased employee costs and transportation expenses[26] - Employee costs were recorded at approximately HKD 952 million, down from HKD 987 million in the previous year, with the workforce reduced to about 20,000 employees[33] Market Outlook - The company faced challenges in the Chinese PC market, with a year-on-year decline in shipments of 12% in the first quarter of 2024[22] - The company anticipates a recovery in global personal computer sales driven by an increase in replacement demand as older PCs reach the end of their lifecycle[24] - The upcoming discontinuation of support for Windows 10 by Microsoft in 2025 is expected to accelerate the replacement cycle, with over 240 million devices potentially incompatible with Windows 11[24] - AI PCs are projected to reach a shipment volume of 54.5 million units by the end of 2024, accounting for 22% of total PC shipments, which is expected to drive market growth[24] - The company is actively adjusting its operational strategies and optimizing production resources to enhance efficiency and maintain competitiveness in a changing global market[23] Inventory and Receivables - Inventory turnover days decreased to approximately 88 days, with inventory down by approximately 12.5% to about HKD 1,347 million[30] - Trade receivables decreased by approximately 11.0% to about HKD 2,212 million, with turnover days slightly increasing to approximately 134 days[30] - The net trade receivables decreased to HKD 2,212,185,000 as of June 30, 2024, from HKD 2,486,447,000 as of December 31, 2023[19] Tax and Dividends - The total tax expense for the current period was HKD 7,304,000, significantly lower than HKD 24,309,000 in the previous year[16] - The company did not declare any interim dividends for the current period, similar to the previous year[17]

Continuous Connected Transactions - The company conducted continuous connected transactions during the year ended December 31, 2023, as disclosed under Listing Rule 14A.49, involving Renbao, a major shareholder of Huayuan Technology Holdings Limited, a non-wholly owned subsidiary of the company[1] - The company appointed Ernst & Young as auditors to report on the continuous connected transactions, and Ernst & Young issued an unmodified opinion letter confirming compliance with Listing Rule 14A.56[2] Corporate Governance and Board Activities - The company's Board of Directors held four meetings and one shareholders' meeting during the year ended December 31, 2023, with attendance records provided for each director[11] - The company's Corporate Governance Committee consists of six members, including independent non-executive directors and executive directors, with Mr. Ye Weiming serving as the chairman[13] - The company's Board of Directors has adopted a written policy for nominating new directors, emphasizing the candidate's ability to dedicate sufficient time and effort to the company's affairs and contribute to a diverse board[16] - The company achieved measurable goals for board diversity, including ensuring at least one-third of board members hold a university degree or higher and maintaining an age distribution of at least 20 years among board members[18] - The company's shareholders can submit proposals for consideration at general meetings by providing written notice and detailed contact information[31] - The company has received annual independence confirmation letters from all four independent non-executive directors, confirming their independent status as of the report date[193] - Cheng Jiajun was appointed as an independent director of Panorama Software Co., Ltd. (stock code: 8272.TT) on September 7, 2023[195] - The service agreements for Qiu Huiqin and Lin Fengjie, both executive directors, are initially fixed for three years starting from March 1, 2017, with automatic annual renewals thereafter[196] - Independent non-executive director Cheng Jiajun has a two-year appointment contract with the company, effective from July 31, 2008, with automatic annual renewals[199] - Independent non-executive director Ye Weiming has a two-year appointment contract with the company, effective from May 25, 2006, with automatic annual renewals[200] Audit and Financial Reporting - The company's Audit Committee oversees the financial reporting process, risk management, and internal control systems, ensuring adequate resources and qualifications for accounting and financial reporting functions[21] - The company's external auditors confirmed their responsibilities for the independent auditor's report included in the consolidated financial statements for the year ended December 31, 2023[24] - The company's audit fees for the year amounted to HKD 4,380,000, with non-audit services costing approximately HKD 1,809,000, including tax compliance services (HKD 536,000), interim results agreed-upon procedures (HKD 580,000), and ESG report services (HKD 160,000)[49] - The audit committee held six meetings during the year, with attendance details provided for each member[47] - The company's audit procedures included evaluating the appropriateness of the going concern basis and identifying any material uncertainties that could impact the group's ability to continue as a going concern[34] - The company's audit committee assists the board in overseeing the financial reporting process and reviewing actions taken to address internal control and risk management deficiencies[40] - The company's audit partner for the independent auditor's report is Kwong Ka Yan[43] Financial Performance and Metrics - The company's revenue for 2023 decreased by 16.0% to approximately HKD 6,936,000,000 compared to HKD 8,256,000,000 in 2022 due to global inflation, economic downturn, and geopolitical events[79] - The company's gross margin increased to 7.3% in 2023 from 5.6% in 2022, driven by improved economies of scale and cost efficiency in the second half of the year[79] - The company recorded a net loss attributable to shareholders of HKD 231,000,000, compared to a profit of HKD 172,000,000 in 2022[110] - Revenue for the year decreased by approximately 16% to HKD 6,936,000,000 compared to HKD 8,256,000,000 in 2022[110] - Gross margin improved to 7.3% from 5.6% in 2022[110] - Net loss attributable to equity holders was HKD -231 million, a significant decline of 234.1% from a profit of HKD 172 million in 2022[126] - EBITDA decreased by 36.3% to HKD 882 million from HKD 1,385 million in 2022[126] - Inventory turnover days decreased to 87 days, a 15.5% improvement from 103 days in 2022[126] - Revenue for 2023 was HKD 6,936 million, a decrease of 16% compared to HKD 8,256 million in 2022[126] - The company recorded a net loss attributable to equity holders of approximately HKD 231 million (2022: net profit of HKD 172 million), mainly due to decreased revenue, other income, and increased financing costs[166] - Total bank and other borrowings decreased by 22.4% to approximately HKD 3,137 million (2022: HKD 4,043 million)[166] - Net cash flow from operating activities decreased to approximately HKD 598 million (2022: HKD 2,256 million), primarily due to pre-tax losses and a reduction in trade receivables[167] - Net cash outflow from investing activities was approximately HKD 112 million (2022: HKD 491 million), as the new production facility in Suzhou was completed in 2022[167] - Net cash outflow from financing activities was approximately HKD 962 million (2022: HKD 836 million), mainly due to the repayment of bank borrowings[167] - Cash and bank balances stood at approximately HKD 1,222 million as of December 31, 2023 (2022: HKD 1,707 million)[167] - Trade receivables turnover days increased to approximately 131 days (2022: approximately 107 days), mainly due to lower revenue in the second half of 2022 compared to the first half, resulting in lower trade receivables turnover days in 2022[168] - Trade receivables increased by approximately 2.7% to approximately HKD 2,486,000,000 as of December 31, 2023, compared to HKD 2,421,000,000 as of December 31, 2022[168] - The company's net book value of certain land and buildings used as collateral for bank credit was approximately HKD 20,000,000 as of December 31, 2023 (2022: approximately HKD 20,000,000)[169] Risk Management and Internal Controls - The company's risk management framework is integrated into strategic development, business planning, and daily operations, with regular assessments and management of risk forecasts[52] - The company's inventory provision assessment involved reviewing sample inventory age, historical sales, usage records, and post-period-end inventory usage and sales[37] - The company's audit committee assists the board in overseeing the financial reporting process and reviewing actions taken to address internal control and risk management deficiencies[40] Workforce and Employee Costs - The company's workforce gender ratio as of December 31, 2023, is disclosed in the annual report[45] - The company has approximately 23,000 employees, down from 30,000 in 2022, with employee costs of HKD 1,856,000,000 compared to HKD 2,481,000,000 in 2022[118] - Operating costs decreased by 17.6% to approximately HKD 664 million (2022: HKD 806 million), mainly due to reductions in employee costs, export fees, and transportation expenses[166] - Rising labor costs in China have negatively impacted the company's profitability[148] Production and Operational Strategies - The net book value of the company's property, plant, and equipment as of December 31, 2023, was HKD 5,679,602,000, related to the production and sale of laptop and handheld device casings[63] - The company has been investing in production robots to replace manual labor, aiming to improve efficiency and reduce reliance on labor amidst rising labor and production costs[88] - The company is focusing on optimizing product portfolios and operational strategies to secure higher-priced metal casing orders and expand market share[104] - The company has extended its production capacity to Southeast Asia to reduce costs and improve efficiency[106] - The company acquired land use rights in Vietnam to establish a production facility, aiming to mitigate rising production and labor costs in China[132] - The company is focusing on optimizing production efficiency and cost control through factory consolidation and resource integration in China[132] - The company is relocating part of its production capacity to Vietnam to achieve cost reduction and efficiency improvement, with construction contracts signed for a new factory in Vietnam[136] - The company plans to expand its product portfolio, improve product quality, and focus on developing new products to diversify revenue sources[146] - The company will continue to invest in advanced equipment to maintain product quality and expand its product portfolio to enhance its reputation in the industry[147] - The company is focusing on developing new metal casing products with advanced technologies and materials to meet market demand for high-end, durable, and sleek designs[120] Market and Industry Trends - The company's revenue for 2023 was approximately HKD 6,936,000,000, a 16% decrease compared to 2022, driven by a 14.8% decline in global PC shipments to 242 million units[103] - The company's core products, notebook and 2-in-1 PC casings, faced challenges due to geopolitical conflicts, high inflation, and reduced PC demand post-pandemic, but sales decline narrowed in the second half of the year through supply chain adjustments and strategic changes[104] - The company anticipates a recovery in PC demand driven by AI-enabled PCs, which are expected to capture 19% market share in 2024, and the end of Windows 10 support in 2025, which may accelerate device replacement[105] - The company expects the personal computer market to recover in 2024, driven by AI and Windows system updates[107] - Global PC shipments in 2023 totaled 242 million units, a 14.8% decline from 2022, marking the worst year for the PC industry since 2006[135] - Q4 2023 global PC shipments increased by 0.3% to 63 million units, ending seven consecutive quarters of decline[135] - The company anticipates a recovery in the PC market in 2024, driven by AI advancements and Windows OS updates[129] - Global notebook demand weakened due to uncertain international financial situation, geopolitical conflicts, and high inflation, leading to prolonged high inventory levels[136] - The global PC market is expected to recover in 2024, with AI-compatible PCs predicted to account for 60% of all PC shipments by 2027, providing growth momentum for the company[137] - The company faces challenges from new substitutes in the notebook and handheld device markets, hindering recovery from this year's weak performance[138] Other Financial Metrics and Transactions - Inventory turnover days decreased to 87 days from 103 days in 2022[116] - Inventory value decreased by 29.9% to HKD 1,539,000,000 as of December 31, 2023, compared to HKD 2,194,000,000 in 2022[116] - Foreign exchange gains amounted to HKD 112,000,000, down from HKD 395,000,000 in 2022[113] - Capital commitments for the acquisition of buildings, machinery, and office equipment amounted to HKD 253,000,000 as of December 31, 2023, up from HKD 93,000,000 in 2022[118] - Other income and gains decreased by 74.4% to approximately HKD 280 million in 2023, compared to HKD 1,094 million in 2022, mainly due to the absence of gains from the sale of property, plant, and equipment, and a decrease in foreign exchange gains[140] - Trade payables and notes turnover days increased to 51 days in 2023 from 39 days in 2022, with trade payables and notes rising by 8.3% to approximately HKD 891 million[143] - Other expenses decreased by 80.8% to approximately HKD 75 million (2022: HKD 392 million), driven by a significant reduction in impairment losses on property, plant, and equipment, and no goodwill impairment[166] - Financing costs increased by 76.5% to approximately HKD 215 million (2022: HKD 122 million), primarily due to higher US dollar loan interest rates[166] Client and Supplier Relationships - The company's clients are primarily global renowned notebook computer manufacturers and brand owners, with no long-term sales contracts in place with any major clients[176] - The company actively seeks new clients to mitigate potential negative impacts on business and profitability if any major client ceases purchasing[176] - Sales to the top five customers accounted for approximately 82% of the company's annual revenue as of December 31, 2023, with the largest customer contributing about 24%[191] - Purchases from the top five suppliers constituted less than 30% of the total procurement for the year ended December 31, 2023[191] Management and Operational Focus - The company emphasizes professional division of labor and teamwork in management, particularly focusing on on-site management to continuously improve quality and technology[175] - The company places high importance on supply chain management, selecting high-quality suppliers through transparent procedures and prioritizing those with strong social responsibility[176] - The company's executive director, Lin Fengjie, is responsible for overseeing new technology development within the group[180] Shareholder Value and Dividends - The company is committed to enhancing shareholder value through sustainable profit growth and stable dividends, considering capital adequacy, liquidity, and business expansion needs[89] - The company's borrowing ratio decreased to approximately 25.8% as of December 31, 2023, down from 28.5% in the previous year, primarily due to a reduction in total bank and other borrowings to HKD 3,137,000,000 from HKD 4,043,000,000[93] Capital and Share Issuance - The company did not issue any shares during the year ended December 31, 2023[190]

Financial Performance - The company's revenue for the year was approximately HKD 6,936,000,000, a decrease of about 16% compared to HKD 8,256,000,000 in the previous year[9] - The company recorded a loss attributable to equity holders of approximately HKD 231,000,000, compared to a profit of HKD 172,000,000 in the previous year[14] - The group reported a loss of HKD 328.8 million for the year, compared to a profit of HKD 58.1 million in 2022, indicating a significant decline in profitability[36] - The total comprehensive expenses for the year amounted to HKD 644.2 million, down from HKD 1,039 million in the previous year[36] - The basic loss per share attributable to equity holders was approximately HKD 27.3 cents, compared to a basic earnings per share of approximately HKD 20.4 cents for the previous year[58] - The gross profit for the same period was approximately HKD 508,000,000, an increase of about 9.4% year-on-year[58] Revenue Breakdown - Revenue from the China market (excluding Hong Kong) was HKD 6,495 million, down from HKD 7,943 million in the previous year, representing a decline of approximately 18%[45] - Revenue from China (excluding Hong Kong) decreased to HKD 6,031,433,000 in 2023 from HKD 7,065,638,000 in 2022, representing a decline of approximately 14.6%[67] - Revenue from Vietnam increased to HKD 307,987,000 in 2023, up from HKD 272,034,000 in 2022, marking a growth of about 13.2%[67] Cost and Expenses - Other expenses decreased by approximately 80.8% to about HKD 75,000,000, compared to HKD 392,000,000 in the previous year, primarily due to reduced impairment losses[13] - The group’s financing costs totaled HKD 214.6 million, an increase from HKD 121.6 million in 2022, reflecting higher interest expenses on bank and other loans[50] - The group recorded a significant increase in withholding tax expenses of approximately HKD 93,000,000 due to higher dividends from its subsidiaries in mainland China[9] - Operating costs decreased by approximately 17.6% to HKD 664,000,000 in 2023 from HKD 806,000,000 in 2022, with the operating cost as a percentage of revenue slightly declining to about 9.6%[80] Assets and Liabilities - Total non-current assets decreased from approximately HKD 7,545,933,000 in 2022 to approximately HKD 6,527,161,000 in 2023[61] - Current assets decreased from approximately HKD 6,643,997,000 in 2022 to approximately HKD 5,628,353,000 in 2023[61] - Total liabilities decreased from approximately HKD 5,614,298,000 in 2022 to approximately HKD 4,679,412,000 in 2023[62] - The total equity attributable to equity holders decreased from approximately HKD 7,443,287,000 in 2022 to approximately HKD 6,756,792,000 in 2023[62] Market Outlook - The company expects a gradual return to balance in supply and demand in the global personal computer market, with potential growth in 2024 driven by AI developments and operating system updates[10] - The global PC market experienced a decline of 14.8% in shipments, totaling 242 million units in 2023, the lowest since 2006[76] - The company anticipates a gradual recovery in the PC market towards the end of 2023, following a period of declining shipments[76] Foreign Exchange and Risk Management - The group has implemented forward foreign exchange contracts to mitigate potential foreign exchange losses due to fluctuations in the USD/CNY exchange rate[19] - The group’s management will continue to monitor foreign exchange risks and adopt conservative measures to reduce adverse impacts from currency fluctuations[19] Employee and Production Changes - The number of employees decreased to approximately 23,000 in 2023 from about 30,000 in 2022, with employee costs (excluding directors' remuneration) at approximately HKD 1,856,000,000, down from HKD 2,481,000,000[87] - The group plans to relocate part of its production capacity to Vietnam to adapt to global supply chain changes, with construction contracts for the new facility already established[103] - The group expects to enhance production efficiency and flexibility in response to downstream manufacturers' supply chain requirements in Vietnam[103] Capital and Investments - As of December 31, 2023, the group had capital commitments of approximately HKD 253,000,000 for the acquisition of buildings, machinery, and office equipment, up from HKD 93,000,000 in 2022[88] Dividend and Shareholder Returns - The board does not recommend a final dividend for the year, compared to a dividend of HKD 0.05 per share in 2022[90] Auditor and Compliance - The consolidated financial statements for the year ended December 31, 2023, have been verified by the company's auditor, Ernst & Young, ensuring consistency with the reported figures[119] - The board of directors has reviewed the accounting policies and financial performance of the group for the year[121]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 3,463 million, a decrease of 26.9% compared to HKD 4,736 million in the same period of 2022[11]. - The net loss attributable to equity holders for the same period was HKD 57 million, representing a decline of 149.8% from a profit of HKD 115 million in 2022[11]. - Basic and diluted earnings per share for the period were both HKD (6.7), down 149.3% from HKD 13.6 in the previous year[11]. - Gross profit margin decreased to 3.1% from 10.5%, reflecting a decline of 7.4 percentage points[11]. - Operating loss margin was reported at -6.3%, down 8.1 percentage points from 1.8% in the prior year[11]. - The net loss margin was -1.6%, a decrease of 4.0 percentage points compared to 2.4% in 2022[11]. - The company reported a significant drop in EBITDA, with a figure of HKD 452 million, down 42.9% from HKD 790 million in the previous period[11]. - The company reported a loss of HKD 120,716 for the six months ended June 30, 2023, compared to a profit of HKD 105,096 in the same period of 2022[26]. - The group reported a loss attributable to equity holders of approximately HKD 57,000,000, compared to a profit of approximately HKD 115,000,000 in the previous year[100]. Cash Flow and Liquidity - The net cash flow from operating activities for the six months ended June 30, 2023, was HKD 178,347, a significant decrease from HKD 764,130 in the same period of 2022[16]. - The company’s cash flow from financing activities was negative HKD 495,056 for the six months ended June 30, 2023, compared to negative HKD 138,990 in the same period of 2022[16]. - The company’s cash and bank balances as of June 30, 2023, were approximately HKD 1,359,000,000, down from HKD 1,707,000,000 as of December 31, 2022[105]. - The net cash used in investing activities was HKD 10,959 for the six months ended June 30, 2023, a significant improvement from HKD 325,986 in the same period of 2022[16]. Assets and Liabilities - The total non-current assets as of June 30, 2023, amounted to HKD 6,857,483, a decrease from HKD 7,545,933 at the end of 2022[28]. - The company’s total liabilities as of June 30, 2023, were HKD 5,003,381, compared to HKD 5,614,298 at the end of 2022[28]. - The net debt to equity ratio was 34.3%, down 11.3% from 45.6% in the previous year[11]. - The total equity attributable to equity holders decreased to HKD 5,464,664,000 from HKD 6,038,383,000, reflecting a decline of approximately 9.5%[30]. - Non-current liabilities decreased to HKD 923,964,000 from HKD 1,132,345,000, a reduction of about 18.4%[30]. Market and Demand - Revenue from Mainland China (excluding Hong Kong) for the six months ended June 30, 2023, was HKD 3,302,124,000, down from HKD 4,603,801,000 in the same period of 2022, a decline of about 28.3%[38]. - The global PC market saw a 33% decline in total shipments in Q1 2023, with a total of 54 million units shipped, marking four consecutive quarters of double-digit declines[76]. - The company experienced a significant reduction in demand for computer casings due to the overall weak shipment volume in the first half of 2023[76]. - The company anticipates a gradual recovery in global personal computer market demand in the second half of 2023, driven by the upcoming Windows 11 update and hardware performance upgrades[78]. - The group expects to benefit from the potential growth in the personal computer market, with market research predicting a rebound in 2024[78]. Operational Efficiency - Inventory turnover days improved to 89 days from 109 days, a reduction of 18.3%[11]. - Operating costs decreased by approximately 21.2% to about HKD 325,000,000, down from HKD 412,000,000 in the previous year, primarily due to declines in exports, employee costs, and transportation expenses[81]. - The group aims to optimize its production system to enhance product quality and efficiency in preparation for future growth in the personal computer market[77]. - The group has implemented cost-reduction measures and integrated production facilities to improve resource allocation and cost-effectiveness[77]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and regularly reviews its governance practices[154]. - The company believes that appropriate corporate governance practices are essential for its sustainable development and actively implements such practices[175]. - The company’s board of directors will continue to review the management structure and make necessary changes as needed[176]. - The company has adopted a code of conduct for directors regarding securities trading, which meets or exceeds the standards set by the relevant guidelines[180]. Employee and Compensation - The company had approximately 23,000 employees as of June 30, 2023, compared to about 34,000 employees in 2022[128]. - Employee costs for the period were recorded at approximately HKD 987,000,000, down from HKD 1,520,000,000 in 2022[128]. - The company has capital commitments of approximately HKD 64,000,000 for the acquisition of buildings, machinery, and office equipment as of June 30, 2023, down from HKD 93,000,000 as of December 31, 2022[129]. Shareholder Information - The company reported a total issued share capital of 1,200,008,445 shares as of June 30, 2023, with significant shareholders holding approximately 27.81% of the total issued capital[171]. - The company’s major shareholder, Nanya, holds 25.27% of the total issued shares, indicating a strong ownership concentration[168]. - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[173].

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]