香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 APEX ACE HOLDING LIMITED 光 麗 科 技 控 股 有 限 公 司* （於開曼群島註冊成立之有限公司） （股份代號：6036） 截至二零二三年六月三十日止六個月之 未經審核中期業績公告 業績摘要 • 929.6 二零二三年上半年的收益約為 百萬港元，較二零二二年上半年減少 43.1% • 50.6 32.6% 二零二三年上半年的毛利約為 百萬港元，較二零二二年上半年減少 • 17.7 二零二三年上半年的本公司擁有人應佔淨虧損約為 百萬港元（二零二二 6.5 年上半年：純利 百萬港元） • 1.67 二零二三年上半年的每股基本虧損為 港仙（二零二二年上半年：每股盈 0.64 ...

New Energy Vehicles - In 2022, China's new energy vehicle production and sales reached 7.058 million and 6.887 million units, representing year-on-year growth of 96.9% and 93.4% respectively, maintaining the global leading position for eight consecutive years[10] - The anticipated annual growth rate for new energy vehicle production and sales is expected to remain above 40% over the next five years[10] - Production and sales of new energy vehicles in China reached 7,058,000 and 6,887,000 vehicles respectively in 2022, marking year-on-year growth of 96.9% and 93.4%[43] - By 2025, the total installed capacity for new energy by the "Five Major Power Groups and Four Minor Giants" is projected to reach 450GW, with a requirement of 50% for new energy capacity[86] - The Group established a new energy design team in 2022 to design inverters for photovoltaic power and energy storage applications[87] - The Group aims to enhance its competitiveness by diversifying into emerging fields such as automotive electronics and new energy[87] - The semiconductor industry's demand growth is shifting towards new energy vehicles, industrial control, and IoT facilities, with a new round of chip design innovation expected[87] - The Group will intensify research and development efforts in new energy and photovoltaic power to seize market opportunities arising from rapid industry development[87] Semiconductor Industry - The semiconductor equipment and material market is projected to remain prosperous, with global semiconductor capital expenditures amounting to US$181.7 billion in 2022, a year-on-year increase of 19%[21] - The semiconductor industry is expected to see a gradual recovery in demand for industrial applications as macroeconomic conditions improve and supply-demand balance is restored[20] - The semiconductor industry has entered a downward cycle as consumer market demand weakens, particularly in personal computers and consumer electronics[37] - Demand for chips in automotive electronics, high-power renewable energy, energy storage, and industrial automation remains high, presenting new opportunities for semiconductor enterprises[37] - The semiconductor industry is expected to maintain an uptrend in overall market demand throughout 2023, driven by emerging fields such as 5G/6G, AI, and autonomous driving[41] - The global semiconductor industry is expected to rebound from the bottom in 2023 due to the recovery of downstream demand and the gradual release of chip inventory pressure[86] - The market demand for automotive semiconductors is expected to rise, driven by increasing demand for new energy vehicles in Mainland China and abroad[86] - The Chinese government has introduced a series of policies to support the semiconductor industry, recognizing it as a key strategic emerging industry[23] - In 2022, the government included "enhancing the core competitiveness of manufacturing" in its work report, indicating strong policy support for the semiconductor sector[23] - The global economy slowed down in 2022 due to the Russian-Ukrainian conflict, raw material price fluctuations, and the ongoing pandemic, impacting the semiconductor industry[37] - The domestic semiconductor industry in Mainland China faced business austerity due to U.S. suppression, leading to reduced orders from chip suppliers[37] - The semiconductor market is experiencing steady growth due to the accelerated development of new technologies in automobile electronics and IoT[42] Financial Performance - The Group recorded revenue of HK$2,689.1 million in 2022, representing a slight growth compared to 2021, while the loss attributable to owners was HK$32.4 million, a reversal from a profit of HK$6.7 million in 2021 due to a decrease in gross profit[41] - The Group achieved revenue of HK$2,689.1 million in 2022, a slight increase compared to 2021, while the loss attributable to owners was HK$32.4 million, down from a profit of HK$6.7 million in 2021, primarily due to a drop in gross profit margin and rising interest rates[63] - Gross profit for the Year 2022 decreased by 49.2% to HK$114.9 million, with a gross profit margin of 4.3%, down from 8.6% in Year 2021[96] - Revenue from Digital Storage Products contributed 75.1% of the total revenue, while General Components accounted for 24.9% in Year 2022[96] - Revenue from the product segment amounted to HK$2,020.0 million, with a gross profit of HK$44.5 million, representing a decrease of 69.6% compared to Year 2021[96] - General Components segment achieved revenue of HK$669.1 million, with a gross profit of HK$70.4 million, reflecting an 11.7% decrease in gross profit[96] - The net loss for the year 2022 was HK$33.0 million, compared to a net profit of HK$16.6 million in 2021, indicating a significant decline in profitability[103] - The net loss attributable to the owners of the Company for 2022 was HK$32.4 million, a deterioration from a net profit of HK$6.7 million in 2021, primarily due to rising product costs outpacing selling price increases[103] - Other income dropped from HK$9.7 million in Year 2021 to HK$5.3 million in Year 2022, primarily due to a decrease in commission income[96] - The Group expects inventory levels and gross profit margins to return to long-term industry levels following volatility in 2021 and 2022[96] Corporate Governance - The Board comprised three (3) executive Directors and three (3) INEDs during the Year 2022[117] - The Company held nine (9) Board meetings, one (1) AGM, and one (1) extraordinary general meeting in 2022[122] - All executive Directors attended 100% of the Board meetings and AGMs, with one INED attending 8 out of 9 Board meetings[122] - The Company Secretary provided updates on the latest developments in the Listing Rules and other relevant legal requirements to the Board[125] - Each newly appointed Director received a comprehensive induction package to understand the Company's operations and governance policies[125] - The Company ensured that all Directors participated in continuous professional development relevant to their roles[125] - The Board is collectively responsible for promoting the success of the Company by directing and supervising its affairs[117] - The Company received written confirmations of independence from all INEDs in accordance with the Listing Rules[117] - The Board's responsibilities include overseeing strategic decisions and performance of the Group[117] - The Company Secretary maintained detailed minutes of all meetings, which were available for inspection by Directors[120] - The Board resolved not to recommend any final dividend for the year 2022, consistent with the previous year[129] - The Company has complied with all applicable code provisions of the CG Code during the Year 2022, except for a deviation from code provision C.2.1[132] - Mr. Lee serves as both Chairman and CEO, which the Board believes ensures consistent leadership and effective strategic planning[132] - The Board conducted a performance evaluation for Year 2022, with no material issues identified that require immediate improvement[132] - All Directors confirmed compliance with the Model Code for securities transactions throughout Year 2022[132] - The Board is responsible for major policy matters, strategies, budgets, and significant operational decisions, while day-to-day management is delegated to the executive team[134] - During Year 2022, executive Directors frequently met with the management team to maintain an effective feedback system[134] - The Board reviews its delegation of responsibilities regularly to ensure appropriateness based on the Company's circumstances[134] - Each Director has independent access to the Company's senior management team for advice[134] - The Company Secretary assists the Chairman in establishing meeting agendas, with detailed materials circulated at least three days prior to meetings[135] - All Directors have received guidelines regarding their duties, relevant laws, and disclosure of interest obligations[136] - The continuous professional development programs received by Directors included training types A and B[140] Operational Strategy - The Group aims to enhance its diversified product portfolio strategy and expand its customer base to improve core competitiveness and achieve high-quality development[21] - The Group aims to enhance customer engagement and diversify revenue sources through new product development and improved service capabilities[41] - The Group is committed to stricter financial management and cost reduction efforts to enhance operational efficiency[21] - The Group plans to implement stricter financial management and a diversified product strategy to enhance its competitive advantage and core capabilities[49] - The Group is actively negotiating repayment schedules with customers while seeking legal advice on potential actions against those who default[69] - The Group aims to maintain healthy business relationships with customers while taking reasonable steps to recover trade receivables, believing that customer performance will improve as the COVID-19 pandemic subsides[70] - The Group has been exploring new growth areas to strengthen future development despite short-term challenges from industry demand contraction in the second half of 2022[63] - The Group's strategy includes the acquisition of properties for HK$30.0 million, financed through the issuance of convertible bonds and perpetual subordinated convertible securities[81] - The Group's focus is on identifying, sourcing, selling, and distributing quality electronic components to downstream manufacturers in the technology, media, and telecommunications sector[62] - The Group did not have any material acquisitions or disposals of subsidiaries, associates, and joint ventures during the Year 2022[86] - As of December 31, 2022, the Group did not hold any significant investments and had no future plans for material investments or capital assets[86]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 APEX ACE HOLDING LIMITED 光 麗 科 技 控 股 有 限 公 司* （於開曼群島註冊成立之有限公司） （股份代號：6036） 截至二零二二年十二月三十一日止年度之 年度業績公告 業績摘要 • 1.9% 2,689.1 2,640.1 收益增加 至 百萬港元（二零二一年度︰ 百萬港元） • 4.3% 8.6%) 毛利率為 （二零二一年度︰ • 32.4 二零二二年度的本公司擁有人應佔淨虧損為 百萬港元（二零二一年度：純 6.7 利 百萬港元）。 • 3.13 0.67 二零二二年度的每股基本虧損為 港仙（二零二一年度︰每股盈利 港 仙）。 ...

Financial Performance - The Group's revenue for the Review Period was approximately HK$1,634.9 million, representing an increase of 14.8% compared to the last corresponding period[10]. - Net profit attributable to owners of the Company was approximately HK$6.5 million, a decrease of 75.5% from HK$26.6 million in 1H2021[10]. - Gross profit for the Review Period decreased to approximately HK$75.2 million, down by 46.7% compared to HK$141.1 million in the Last Corresponding Period, with a gross profit margin of 4.6%[17]. - The gross profit margin decline was primarily due to product cost increases outpacing selling price increases during 1H2022[17]. - Revenue from digital storage products and general components contributed 79.5% and 20.5% of the Group's total revenue, respectively[15]. - Revenue from the digital storage product segment increased by 14.4% to approximately HK$1,299.5 million, while gross profit for this segment decreased by 54.7% to approximately HK$49.4 million[16]. - Revenue from general components increased by 16.3% to approximately HK$335.3 million, but gross profit decreased by 19.4% to approximately HK$25.7 million[16]. - Net profit for the Review Period was approximately HK$8.6 million, a significant decrease from HK$36.2 million in the Last Corresponding Period[23]. - Total comprehensive income for the period, net of tax, was HK$5,122,000, down from HK$36,555,000 in the same period last year[99]. - The Group's total profit for the period was HK$8,577 in 1H2022, down from HK$36,226 in 1H2021, a decrease of 76.4%[129]. Market Conditions - The semiconductor industry has shifted from a comprehensive chip shortage to a structural one, leading to a gradual rebalance between supply and demand[9]. - Demand for consumer electronics weakened in the first half of 2022, while demand from the electric vehicle sector and high-performance computing continued to rise[9]. - The overall semiconductor industry faced pressure due to geopolitical tensions and a slowdown in global economic recovery[9]. - The ongoing pandemic in China caused production suspensions and logistics disruptions, negatively impacting both supply and demand sides of the chip industry[9]. - The semiconductor industry is experiencing a shift from comprehensive shortages to structural shortages, with certain markets still facing supply shortages[54]. - Interest rate hikes in the US are expected to dampen consumption and lead to an economic slowdown, impacting the chip industry significantly[51]. Financial Position and Cash Flow - As of June 30, 2022, the Group's cash resources were approximately HK$119.2 million, down from HK$143.7 million as of December 31, 2021[26]. - Total outstanding bank borrowings increased to approximately HK$578.9 million as of June 30, 2022, compared to HK$538.5 million as of December 31, 2021[26]. - The gearing ratio improved from 158.6% as of December 31, 2021, to 155.1% as of June 30, 2022, due to increased total equity from new share placements[26]. - The total cash flow from operating activities for the period was not explicitly stated but is critical for assessing liquidity[109]. - For the six months ended 30 June 2022, the net cash used in operating activities was HK$72,358,000, compared to a net cash generated of HK$73,229,000 in the same period of 2021, indicating a significant decline in operational cash flow[111]. - Cash and cash equivalents at the end of the period were HK$119,219,000, down from HK$139,740,000 at the end of 1H2021, indicating a decrease in liquidity[111]. Shareholder Information - As of June 30, 2022, Mr. Lee holds 835,710,000 shares, representing 77.73% of the issued shares of the Company[65]. - Best Sheen, a substantial shareholder, holds 750,000,000 shares, accounting for 69.76% of the issued shares[78]. - Nicegoal, another substantial shareholder, holds 85,710,000 shares, representing 7.97% of the issued shares[78]. Strategic Initiatives - The Group plans to enhance its warehouse and office in Hong Kong with an allocation of HK$4,600,000, of which HK$2,413,000 has been utilized as of June 30, 2022[40]. - The Group plans to implement a diversification strategy to expand its presence in emerging sectors such as 5G, artificial intelligence, and electric vehicles[56]. - The Group aims to strengthen its product portfolio and maintain continuous innovation to drive profit growth and reward shareholders[56]. - The Group is committed to long-term stable growth by capitalizing on the opportunities in the new energy sector[60]. - The Group's strategy includes enhancing market competitiveness and exploring new business opportunities in the renewable energy sector[60]. Compliance and Governance - The Audit Committee reviewed and confirmed the accounting principles and practices adopted by the Group, discussing auditing, internal control, risk management systems, and financial reporting matters[85]. - The interim financial statements are unaudited, reviewed by Graham H.Y. Chan & Co., in accordance with Hong Kong Standard on Review Engagements 2410[89]. - The Group adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2022, with no significant impact on its financial position and performance[120]. - The Group's financial reporting remains compliant with the latest accounting standards, ensuring transparency and accuracy in its financial statements[120]. Employee and Operational Metrics - The Group had 149 employees as of June 30, 2022, an increase from 140 employees as of December 31, 2021[32]. - Research and development expenses for 1H2022 amounted to HK$1,533,000, compared to HK$18,984,000 in 1H2021[144]. - Staff costs included in R&D expenses were approximately HK$1,147,000 for 1H2022, up from HK$988,000 in 1H2021[146].

Financial Performance - The Group recorded total revenues of approximately HK$2,640.1 million for the Year, with profits attributable to owners of the Company amounting to HK$6.7 million, compared to a loss of approximately HK$5.1 million in 2020[9]. - The Group's revenue for the Year was HK$2,640.1 million, representing an increase of 50.3% over that of Year 2020[39]. - Net profit for Year 2021 was HK$16.6 million, a significant increase from HK$0.1 million in Year 2020[46]. - The net profit attributable to the owners of the Company was HK$6.7 million in Year 2021, compared to a net loss of HK$5.1 million in Year 2020[46]. - Gross profit for the year amounted to HK$226.1 million, a 62.6% increase from HK$139.0 million in 2020, with a gross profit margin of 8.6%[44]. - The Group's digital storage products and general components accounted for 75.3% and 24.7% of total revenue, respectively[44]. - Revenue from digital storage products increased by 69.5% to HK$1,988.8 million, up from HK$1,173.7 million in 2020[40]. - General components revenue grew by 11.8% to HK$651.3 million, up from HK$582.3 million in 2020[40]. Market Trends and Demand - The semiconductor device prices rose due to supply chain disruptions and chip shortages caused by the COVID-19 pandemic, yet demand for chips increased, particularly in mobile, IT, and consumer electronics sectors[9]. - Future growth is expected to be driven by emerging fields such as 5G, AR/VR, IoT, AI, and autonomous driving, with overall market demand anticipated to maintain a growth trend in 2022[11]. - The increasing penetration rate of 5G mobiles and the growth in the value of individual semiconductors for 5G smartphones are expected to continuously expand the semiconductor market[13]. - The construction of 5G infrastructures is projected to boost demand for large capacity memories and storage in mobile applications, positively impacting semiconductor sales in the coming years[13]. - The demand for automobile electronics and IoT remains robust, driven by the implementation of 5G communication, which accelerates the popularization of IoT devices and increases the quantity of chips used in single automobiles[14]. - New energy vehicles are projected to achieve an annual growth of over 40% in both output and sales volumes over the next five years, significantly boosting the automobile-level semiconductor market size[15]. - The semiconductor market demand remained robust, driven by the surge in demand for semiconductor parts in emerging fields such as new energy vehicles[39]. - The semiconductor market is expected to benefit from government policies aimed at enhancing the core competence of manufacturing, sustaining strong growth momentum in the industrial electronics market[22]. Strategic Initiatives - The Group made strategic adjustments to product categories and implemented strict cost control measures to improve overall operating efficiency[9]. - The Group's strategy includes maintaining good relationships with main electronics distributors and upstream manufacturers to enrich product categories and drive growth[11]. - The Group plans to implement a diversified product portfolio strategy to expand its customer base and enhance comprehensive strength, aiming for high-quality development and considerable returns to shareholders[22]. - The Group plans to diversify its product offerings, including automotive electronic parts and passive components, to enhance business performance in various markets[69]. - The Group aims to establish a more flexible supply chain and strengthen cooperation with suppliers and customers to better respond to supply chain risks and opportunities[73]. - The Group will implement stricter financial management and refined corporate management to support greater growth and align expected revenue with current market conditions[74]. Corporate Governance - The Board consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[80]. - The Group is committed to maintaining high standards of corporate governance and has adopted applicable code provisions[78]. - The Company has a structured approach to corporate governance, including the development and review of policies and practices related to compliance with legal and regulatory requirements[110]. - The Company has provisions for the removal of Directors by ordinary resolution at any general meeting, allowing for flexibility in governance[113]. - The Company Secretary assists in establishing meeting agendas and ensures timely distribution of materials to directors[88]. - The Board regularly reviews its delegation of responsibilities to ensure appropriateness in light of the Company's circumstances[86]. Risk Management - The Group has established a risk management and internal control system to safeguard the interests of the Company and its shareholders, with annual reviews conducted by the Audit Committee[146]. - The Audit Committee conducted a review of the effectiveness of the Group's risk management and internal control systems for the period from November 1, 2020, to October 31, 2021, with no major deficiencies noted[154]. - The Group's risk management and internal control systems are considered adequate and effective, with ongoing reviews expected annually[161]. - The highest category of residual risks is subject to oversight by the Board[155]. - The Group strictly prohibits unauthorized use of confidential or inside information[163]. Employee and Management Information - The Group employed 140 employees as of December 31, 2021, up from 128 employees in the previous year[55]. - The management team includes family members, indicating a strong internal connection within the leadership[24]. - The Group's leadership includes individuals with advanced degrees from prestigious institutions, enhancing their strategic capabilities[27]. - Each Executive Director has a service agreement with a term of three years, while Independent Non-Executive Directors (INEDs) renewed their appointments for a similar term starting from March 16, 2020[104]. Shareholder Engagement - The Company emphasizes ongoing dialogue with shareholders, particularly through Annual General Meetings (AGMs) to address inquiries[171]. - All resolutions at General Meetings are voted on by poll, with results posted on the Stock Exchange and Company websites[167]. - The Company maintains a website (www.apexace.com) for effective communication with shareholders and investors, providing access to financial and relevant information[172].

Revenue Growth - The Group's revenue for the Review Period nearly doubled to approximately HK$1,423.9 million, compared to HK$1.0 million net profit attributable to owners of the Company, which surged to approximately HK$26.6 million[13] - Revenue from digital storage products increased by 133.0% to approximately HK$1,135.5 million, driven by higher sales volume and average selling prices[13] - The Group's revenue for the Review Period was approximately HK$1,423.9 million, representing an increase of 97.6% from HK$720.8 million in the Last Corresponding Period[15] - Revenue for the six months ended June 30, 2021, was HK$1,423,913,000, an increase from HK$720,781,000 in the same period of 2020, representing a growth of 97.2%[74] - Revenue from external customers for 1H2021 reached HK$1,423,913, a significant increase from HK$720,781 in 1H2020, representing a growth of approximately 97.2%[110] Profitability - Gross profit for the digital storage segment rose to approximately HK$109.2 million, up by 259.4% compared to the Last Corresponding Period[13] - Gross profit for the Review Period amounted to approximately HK$141.1 million, an increase of 142.8% compared to HK$58.1 million in the Last Corresponding Period, with gross profit margin rising to 9.9% from 8.1%[15] - The net profit for the Review Period was approximately HK$36.2 million, compared to HK$3.2 million in the Last Corresponding Period[16] - Total profit for the period was HK$36,226, a substantial increase from HK$3,190 in 1H2020[105] - Profit before tax for 1H2021 was HK$4,453, compared to HK$2,996 in 1H2020, indicating an increase of 48.6%[116] Expenses and Financial Management - Distribution and selling expenses increased to approximately HK$31.7 million from HK$25.9 million in the Last Corresponding Period, mainly due to increased bonus payments and promotion expenses[16] - Administrative expenses rose by approximately HK$18.0 million to approximately HK$43.4 million during the Review Period, primarily due to increased bonus payments to management[16] - Finance costs increased to approximately HK$4.5 million from HK$3.0 million in the Last Corresponding Period, attributed to increased use of factoring loans[16] - The Group plans to implement stricter financial management to align its cost structure and capital investments with anticipated revenue and market conditions[40] Market and Product Development - The semiconductor market experienced a strong surge in demand, leading to increased average selling prices of electronic products and margin expansion for the Group[13] - The Group aims to diversify its strategy and enhance its presence in the communications, automotive, and consumer electronics markets[37] - The company plans to diversify and expand its business in telecommunications, automotive, and consumer electronics markets[34] - The company is investing in new technology development, allocating $50 million towards R&D initiatives[189] - New product launches are expected to contribute an additional $100 million in revenue over the next fiscal year[189] Supply Chain and Operational Resilience - The Group acted as a stable supplier of digital storage products and general electronic components during the unprecedented market situation[13] - The Review Period saw an increasing number of customers seeking to build more resilient local supply chains in anticipation of post COVID-19 economic recovery[13] - The Group is focusing on building a more resilient supply chain and expanding connections with local electronic manufacturers[37] - The Group's strategy includes increasing inventory levels to mitigate potential supply chain disruptions[36] Corporate Governance and Structure - The Company maintains high standards of corporate governance and has adopted applicable code provisions during the Review Period[62] - The roles of Chairman and CEO are held by Mr. Lee, which the Board believes ensures consistent leadership and effective strategic planning[62] - The Audit Committee, comprising all Independent Non-Executive Directors (INEDs), oversees internal control procedures, enhancing the balance of power[62] - The maximum number of shares that may be issued upon exercise of all options under the Share Option Scheme is capped at 10% of the shares in issue as of the Listing Date, equating to 100,000,000 shares[59] Cash Flow and Financial Position - As of June 30, 2021, the Group's cash resources were approximately HK$151.4 million, an increase from HK$95.0 million as of December 31, 2020[20] - The Group's cash and cash equivalents at the end of the period were HK$139,740,000, slightly up from HK$138,458,000 in the previous year[83] - Cash generated from operating activities for the first half of 2021 was HK$73,021,000, compared to HK$51,269,000 in the same period of 2020, marking an increase of about 42.38%[83] - The Group's total assets amounted to HK$971,070,000, an increase from HK$882,397,000 as of December 31, 2020, representing a growth of approximately 10.05%[76] Employee and Management Compensation - Total short-term employee benefits and contributions to retirement benefits for key management personnel in 1H2021 were HK$13,391,000, significantly up from HK$4,721,000 in 1H2020, reflecting a growth of 184.5%[178] - The Group's total remuneration for key management personnel in 1H2021 was HK$13,456,000, compared to HK$4,782,000 in 1H2020, indicating a substantial increase of 181.5%[178] Future Outlook - The company provided a positive outlook for the next quarter, projecting revenue growth of 15% to 20%[189] - The company is exploring potential acquisitions to enhance its product offerings and market presence[189] - The company anticipates a positive outlook for the electronic market due to increased demand for semiconductors driven by emerging technologies[28]

Financial Performance - The Group experienced a 9% decrease in revenue, reducing the loss attributable to owners from HK$17.0 million in 2019 to HK$5.1 million for the Year[12]. - The Group's total revenue for the Year was HK$1,756.0 million, a decrease of 9.3% from HK$1,936.8 million in the previous year[33]. - Revenue from Digital Storage Products decreased by 15.8% to HK$1,173.7 million, while gross profit for this segment increased by 15.1% to HK$66.2 million, resulting in a gross profit margin of 5.6%[31]. - Revenue from General Components increased by 7.2% year-on-year to HK$582.3 million, but gross profit fell by 24.4% to HK$72.9 million, leading to a gross profit margin decline to 12.5%[31]. - The Group's gross profit for the Year was HK$139.0 million, a decrease of 9.6% compared to HK$153.8 million in the previous year, with a stable gross profit margin of 7.9%[33]. - Net profit for the Year amounted to HK$0.1 million, a significant recovery from a net loss of HK$9.1 million in Year 2019[35]. - The net loss attributable to the owners of the Company was HK$5.1 million, improved from a net loss of HK$17.0 million in Year 2019, with savings in distribution, selling, and administrative expenses offsetting increased doubtful debt provisions[35]. Market Trends and Demand - The overall market demand is expected to improve throughout 2021, driven by recovery from the pandemic and increased consumer confidence post-vaccination[18]. - The semiconductor market for computing systems has outpaced the overall market due to increased demand for personal computers and servers driven by social distancing measures[19]. - The market has seen growth in cloud, artificial intelligence, machine learning, and robust mobile demand driven by 5G[18]. - The demand for electric vehicles in China is projected to reach 6 million units by 2025, accounting for 20% of total new car sales, driven by the government's commitment to carbon neutrality by 2060[25]. - The global rollout of 5G infrastructure is expected to significantly increase the demand for high-capacity memory and storage, with over 700,000 base stations currently in China and a need for more than 6 million to achieve full coverage[20]. - The pandemic has accelerated the demand for personal computers and servers, leading to a surge in the semiconductor market, which has outpaced overall semiconductor growth[21]. - The commercial rollout of 5G, along with growth in video games and telecommuting, is driving demand for digital storage and electronic components[28]. - Demand for home entertainment devices, including gaming and audio equipment, is increasing due to social distancing measures, with expectations for continued growth in processor, NAND flash, and DRAM component demand beyond 2020[57]. - The global automotive semiconductor demand is rising, driven by the complexity of car designs and the expansion of electric vehicles, with a forecast-beating uptick in new car demand in Q4 2020[57]. Strategic Initiatives - The Group achieved progress in expanding ties with major electronics distribution companies and upstream manufacturers through internal development and acquisition of distributorship rights[14]. - The Group's strategic adjustment in its product portfolio helped satisfy production needs and improve operating efficiency during the pandemic[12]. - Enhanced sales and marketing operations contributed to better cost management and operational efficiency, helping customers mitigate procurement risks[17]. - The Group's diversified product offerings included securing new high-margin products to enhance business operations[14]. - The Group plans to continue diversifying its product portfolio and customer base to enhance competitiveness and ensure quality growth[28]. - The Group plans to continue its diversification strategy in telecommunications, automotive, and consumer electronics markets, leveraging newly acquired distributorship rights to expand its product portfolio[59]. Cost Management and Efficiency - The Group's efforts in cost control measures improved operational efficiency during unprecedented circumstances[12]. - Distribution and selling expenses decreased to approximately HK$62.1 million from HK$78.1 million, attributed to more efficient sales operations[33]. - Administrative expenses decreased by HK$2.2 million to HK$59.6 million, resulting from savings in insurance and bank charges[33]. - The Group focused on cost control and strengthening its product lineup in response to the challenging business environment caused by the COVID-19 pandemic[31]. - The Group worked closely with suppliers to ensure inventory continuity and minimize logistics delays during the pandemic[31]. Governance and Leadership - The company has a strong leadership team with family ties, enhancing governance and strategic alignment[61]. - The Group's financial management is overseen by experienced professionals, ensuring robust financial strategies[61]. - The Board consists of three (3) executive Directors and three (3) Independent Non-Executive Directors (INEDs) as of the date of the Annual Report[71]. - The Board held four (4) meetings during the Year, approving the audited consolidated financial statements for 2019 and the unaudited financial statements for the six months ended June 30, 2020[81]. - The Audit Committee, composed entirely of independent non-executive Directors, oversees internal control procedures, enhancing the balance of power within the Group[69]. - The Company has adopted high standards of corporate governance practices, complying with all applicable code provisions during the year[69]. Risk Management - The Company acknowledges its responsibility for maintaining effective risk management and internal control systems to safeguard shareholder interests[130]. - The Group has established procedures for identifying, analyzing, and mitigating significant risks, ensuring compliance with relevant legislation and protecting shareholder interests[131]. - The Audit Committee conducted a review of the effectiveness of the Group's risk management and internal control systems for the period from November 1, 2019, to October 31, 2020, with no major deficiencies noted[140]. - The Group's risk management and internal control systems are considered adequate and effective by the Board, with a commitment to annual reviews[147]. - The Group has implemented a policy on fair disclosure, ensuring broad distribution of information to the public[149]. Shareholder Relations - The Company emphasizes effective communication with shareholders to enhance investor relations[155]. - All resolutions at General Meetings are voted on by poll, with results posted on the Stock Exchange and Company websites[153]. - Shareholders holding at least one-tenth of the paid-up capital can requisition an extraordinary general meeting[153]. - The Group has resolved not to recommend the payment of a final dividend for the Year, consistent with the previous year where no dividend was paid[165]. Environmental and Social Responsibility - The Group has implemented environmental protection measures and encouraged staff to minimize energy consumption and waste[171]. - The Group's charitable donations during the Year amounted to HK$234,000, consistent with the previous year[179].

Financial Performance - The Group's revenue decreased by 8.3% YoY to HK$720.8 million from HK$786.2 million for the six months ended June 30, 2019[12]. - Gross profit increased by 11.6% YoY to HK$58.1 million from HK$52.1 million in the Last Corresponding Period[12]. - Gross profit margin improved to 8.1% YoY from 6.6% compared to the Last Corresponding Period[12]. - The Group achieved a profit attributable to owners of the Company of HK$1.0 million during the Review Period, compared to a loss of HK$5.7 million in the Last Corresponding Period[12]. - The Group's revenue for the Review Period was HK$720.8 million, representing a drop of 8.3% YoY compared to HK$786.2 million in 1H2019[19]. - Revenue from digital storage products decreased by 18.8% YoY to HK$487.3 million, primarily due to a reduction in product volume sold and competitive pricing[19]. - Gross profit for the Group increased by 11.6% YoY to HK$58.1 million, with a gross profit margin rising to 8.1% from 6.6% in 1H2019[20]. - Net profit for 1H2020 amounted to HK$3.2 million, compared to a net loss of HK$1.7 million for 1H2019[30]. - The net profit attributable to the owners of the Company for 1H2020 was HK$1.0 million, an improvement from a net loss of HK$5.7 million in 1H2019[31]. - Profit before tax for the period was HK$4,377, compared to a loss of HK$1,218 in the first half of 2019, indicating a significant turnaround[166]. - Profit attributable to owners of the Company for the period was HK$960,000, compared to a loss of HK$5,677,000 in the previous period[173]. Economic Environment - The COVID-19 pandemic and US-China trade disputes created uncertainties in the global economic environment, with China's GDP declining by 1.6% YoY[11]. - The semiconductor industry faced pricing pressure due to high inventory levels in specific areas, while demand for computing and connectivity products remained resilient[11]. Cost Management - The effective cost control measures contributed to margin expansion during the Review Period[12]. - Distribution and selling expenses increased to approximately HK$25.9 million from HK$24.2 million in 1H2019, mainly due to higher staff costs[25]. - Administrative expenses decreased by HK$2.2 million to HK$25.4 million in 1H2020, primarily due to the absence of compensation expenses[28]. - Finance costs decreased to approximately HK$3.0 million from HK$3.4 million in 1H2019, attributed to reduced use of factoring loans and lower interest rates[29]. Strategic Initiatives - The Group continued to strengthen its product lineup and customer base in response to the challenging business environment[12]. - The Group's strategy includes product diversification to enhance profitability amidst market challenges[12]. - The Group plans to diversify its business into telecom, automotive, and industrial end-markets, in addition to consumer electronics, leveraging the acquisition of distributorship rights to enhance product portfolio efficiency[86]. - The Group aims to continue evaluating potential acquisitions to seize promising business opportunities for future revenue and profit growth[86]. - The Group's strategy includes capturing synergies from recent acquisitions to enhance operational efficiency and competitiveness in the micro-electronic industry[89]. Market Outlook - The Group anticipates a significant increase in demand for semiconductors due to the ongoing adoption of online tools and remote communication methods post-COVID-19, which will enhance the need for compatible servers and cloud usage[80]. - Demand for automotive semiconductors is anticipated to rise due to increased complexity in car designs and the expansion of electric vehicles, creating a growing market space[79]. - The investment in new infrastructure in the PRC is likely to boost consumption and enhance sustainable growth, presenting new market opportunities for electronic products[77]. - The PRC is expected to deploy over 600,000 5G base stations by the end of the year, with 807 million mobile connections projected to run on 5G networks by 2025, indicating significant market growth potential[78]. Shareholder Information - As of June 30, 2020, Best Sheen holds 750,000,000 shares, representing 75% of the issued shares of the company[105]. - The entire issued share capital of Best Sheen is controlled by Mr. Lee, the Chairman and CEO, who holds more than one-third of the voting power[112]. - The Share Option Scheme was adopted on February 15, 2018, to incentivize eligible participants contributing to the Group[115]. - The purpose of the Share Option Scheme is to reward employees, directors, and other selected participants for their contributions to the Group[117]. - The company maintains compliance with the provisions of the Securities and Futures Ordinance (SFO) regarding shareholder interests[108]. Financial Position - Cash resources as of June 30, 2020, were approximately HK$138.5 million, down from HK$211.8 million as of December 31, 2019[41]. - Total outstanding bank borrowings decreased to HK$236.6 million as of June 30, 2020, from HK$346.1 million as of December 31, 2019, resulting in a gearing ratio reduction from 109.2% to 74.0%[42]. - The Group has capital commitments for the acquisition of intangible assets amounting to approximately HK$15.6 million as of June 30, 2020, down from HK$23.4 million as of December 31, 2019[47]. - The banking facilities were secured by trade receivables with a carrying amount of approximately HK$66.6 million as of June 30, 2020, compared to HK$270.9 million as of December 31, 2019[49]. - The Group's liquidity requirements were primarily met through a combination of internal resources and bank borrowings during the review period[44]. Corporate Governance - The Audit Committee, comprising three INEDs, has reviewed the Group's unaudited financial results for the Review Period[146]. - The Independent Auditor has reviewed the condensed consolidated financial statements for the Review Period in accordance with Hong Kong standards[147]. - The monthly remuneration for the Chairman, CEO, and Executive Director Mr. Lee was adjusted from HK$70,000 to HK$49,000 due to the COVID-19 pandemic[151]. - The monthly remuneration for Executive Directors Mr. Lo Yuen Kin and Ms. Lo was adjusted from HK$32,000 to HK$22,400 during the same period[151].

Financial Performance - The Group's revenue decreased by 47.9% to HK$1,936.8 million from HK$3,717.6 million in the previous year[14]. - Loss attributable to owners of the Company was HK$17.0 million, compared to a profit of HK$22.6 million in 2018[14]. - Revenue from Digital Storage Products decreased by 57.5% to HK$1,393.7 million from HK$3,279.1 million in 2018[29]. - Gross profit from Digital Storage Products fell by 53.8% to HK$57.5 million from HK$124.3 million in 2018, with a slight improvement in gross profit margin to 4.1% from 3.8%[29]. - Revenue from General Components increased by approximately 23.9% year-on-year to HK$543.2 million from HK$438.5 million in 2018[31]. - Gross profit for General Components rose by approximately 79.2% to HK$96.3 million from HK$53.7 million in 2018[31]. - Gross profit decreased by approximately 13.6% to HK$153.8 million, compared to HK$178.1 million last year, while the gross profit margin increased to 7.9% from 4.8%[38]. - The net loss for the Year amounted to HK$9.1 million, compared to a net profit of HK$33.3 million for the Year 2018[43]. Strategic Initiatives - The Group is in the process of acquiring distribution rights for electronic components from a well-respected company in the PRC[13]. - The Group plans to acquire 51% equity interests in a company engaged in electronic components distribution across various sectors in the PRC[15]. - The proposed acquisition is expected to enhance the Group's market share and access to a larger customer base[15]. - The Group aims to diversify its product offerings by seeking new products with high demand[15]. - The Group has made progress in expanding ties with major electronics distribution companies and upstream manufacturers[15]. - The diversification strategy will be closely monitored in response to TMT market conditions[15]. - The Group plans to adhere to a "high volume-low margin" business strategy to protect market share amid global economic uncertainties[23]. - The Group will continue to diversify its product portfolio and customer base to mitigate economic headwinds and industrial challenges[23]. Market Conditions - The ongoing US-China trade dispute has introduced uncertainties affecting the demand for electronic components[13]. - The ongoing US-China trade dispute has created uncertainties affecting the TMT sector in the PRC[29]. - The commercial rollout of 5G technology is expected to drive demand for digital storage and electronic component products[23]. - Wireless 5G networks are being rapidly rolled out in approximately 50 cities in China, expected to drive growth in digital storage and electronic component products in the coming years[63]. - The Group anticipates that the electronic components industry will be negatively impacted by the COVID-19 epidemic in the first half of 2020, but expects a recovery in demand and sales of consumer electronics in the second half of the year[62]. Financial Management - Selling and distribution expenses increased to approximately HK$78.1 million from HK$47.0 million, mainly due to increased commission and agency fees[38]. - Administrative expenses decreased by HK$15.0 million to HK$61.8 million, primarily due to the absence of IPO listing expenses and a decrease in insurance expenses[42]. - Finance costs decreased to approximately HK$7.1 million from HK$18.3 million, attributed to reduced use of factoring loans[42]. - The Group recognized an impairment loss on trade receivables of HK$12.2 million during the Year, compared to nil in 2018[38]. - As of December 31, 2019, the Group's cash resources were approximately HK$211.8 million, an increase from HK$182.6 million as of December 31, 2018[47]. - The total outstanding bank borrowings amounted to HK$346.1 million, down from HK$391.3 million in the previous year, resulting in a gearing ratio decrease from 118.7% to 113.2%[47]. - The Group's bank borrowings primarily consisted of bank factoring loans, import loans, trust receipts loans, installment loans, and revolving loans[47]. - The Group did not recommend any final dividend for the year, compared to a final dividend of 0.6 HK cents per share in 2018[48]. Corporate Governance - The Company has adopted high standards of corporate governance practices, complying with all applicable code provisions during the year[84]. - The Board consists of three executive directors and three independent non-executive directors (INEDs), ensuring compliance with Listing Rules[85]. - The Company emphasizes effective internal control and risk management through established Board committees[84]. - The independent non-executive directors play a crucial role in overseeing the company's operations and ensuring compliance with regulatory standards[70][71]. - The Company has established procedures for identifying, analyzing, categorizing, mitigating, and monitoring significant risks to safeguard assets and ensure compliance with relevant legislation[174]. - The Board acknowledges its responsibility for maintaining effective risk management and internal control systems to protect the interests of the Company and its shareholders[173]. Leadership and Management - Mr. Lee Bing Kwong is the founder and controlling shareholder of the Group, appointed as an executive director since July 4, 2012[66]. - Mr. Lo Yuen Kin joined the Group as finance director in May 2012 and was appointed as an executive director on February 21, 2014[66]. - The Group's leadership includes family members, indicating a closely-knit management structure[66]. - The management team includes professionals with significant experience in their respective fields, contributing to informed decision-making and strategic direction[70][71]. - The Company Secretary provides updates on the latest developments in Listing Rules and other regulatory requirements to the Board[116]. Risk Management - The Company’s risk management systems are designed to provide reasonable assurance against material misstatement or loss, rather than absolute assurance[175]. - The Company has established a risk register to track and control identified risks, with a risk matrix used to determine risk ratings (L = low risk, M = medium risk, H = high risk) based on likelihood and impact[178]. - The Audit Committee conducted a review of the effectiveness of the risk management and internal control systems from October 1, 2018, to September 30, 2019, and found no major deficiencies[178]. - The risk ratings reflect the level of management's attention and risk treatment effort required[178]. Future Outlook - The Group plans to allocate more resources to the automotive segment to capture opportunities arising from the growth in the automotive industry[63]. - China's artificial intelligence industry is projected to reach US$30 billion by 2022, prompting the Group to increase resources in the AI segment[63]. - The online education market in China is expected to grow by 20% annually, leading the Group to allocate more resources to the commercial-server segment[63]. - The Group continues to evaluate potential acquisitions to seize promising business opportunities and generate additional revenue in the future[63].

Financial Performance - Revenue increased by 30.9% year-on-year to HK$3,717.6 million in 2018, compared to HK$2,840.3 million in 2017[9] - Gross profit surged by 26.0% year-on-year to HK$178.1 million, up from HK$141.4 million in 2017[9] - Profit attributable to owners of the Company decreased by 35.4% year-on-year to HK$22.6 million, down from HK$35.0 million in 2017[9] - Basic earnings per share were 2.38 HK cents, compared to 4.66 HK cents in 2017[9] - The Group's total revenue for the year increased by 30.9% to HK$3,717.6 million, up from HK$2,840.3 million in the previous year[24] - Revenue from Memory products surged by 30.3% year-on-year to HK$2,344.0 million, accounting for approximately 63.1% of the Group's total revenue[20] - Data & Cloud products revenue increased by 42.7% year-on-year to HK$935.1 million, representing 25.1% of total revenue[22] - Revenue from General components rose by approximately 13.6% year-on-year to HK$438.5 million, contributing about 11.8% to total revenue[23] - Net profit for the Year amounted to HK$33.3 million, representing a drop of 26.6% compared to HK$45.4 million in 2017[39] - Net profit attributable to the owners of the Company was HK$22.6 million, a decrease of 35.4% from the previous year, primarily due to significant increases in administrative, distribution, and selling expenses despite growth in sales revenue[39] Expenses and Costs - Selling and distribution expenses increased by approximately HK$31.0 million, primarily due to additional marketing efforts and increased commission expenses[30] - Administrative expenses increased by approximately HK$16.0 million, driven by a HK$10.4 million rise in salaries and staff benefits due to business expansion[36] - Finance costs rose to approximately HK$18.3 million from HK$11.4 million in 2017, attributed to increased interest rates and higher use of factoring loans[33] - Distribution and selling expenses increased by approximately HK$31.0 million, mainly due to enhanced marketing efforts and increased commissions[35] Market Outlook and Strategy - The Company remains cautious about market outlook due to global economic slowdown and trade tensions, adopting a prudent approach to market trends[11] - Emerging technologies are expected to drive growth in digital storage and electronic component markets, particularly with the rise of 5G technology[10] - The Company aims to expand its business scale from upstream suppliers to downstream market and sales volume[11] - The Group's proactive exploration of new products and suppliers helped sustain growth despite market challenges from US-China trade tensions[20] - The Group aims to maintain a "high volume — low margin" business strategy to uphold and expand market share while ensuring sustainability in business expansion[49] - The focus will be on sales of electronic components for automotive, medical electronic equipment, and industrial applications to capture more business opportunities[49] Corporate Governance - The company adopted the Corporate Governance Code and complied with all applicable code provisions from the Listing Date to December 31, 2018[64] - The roles of Chairman and CEO are held by Mr. Lee Bing Kwong, ensuring consistent leadership and effective strategic planning[64] - The Board consists of three executive Directors and three independent non-executive Directors, ensuring a balanced governance structure[66] - The Company has received written confirmations of independence from all INEDs, affirming their status throughout the Period[66] - The Board is responsible for major policy matters, strategies, budgets, and internal controls, while management handles daily operations[77] Risk Management - The Board is responsible for maintaining effective risk management and internal control systems to protect the interests of the Company and its shareholders[139] - The Audit Committee conducted a review of the risk management and internal control systems, which the Board considers adequate and effective[141] - The procedures established for risk management include identifying, analyzing, and mitigating significant risks while ensuring compliance with relevant legislation[140] - The Company does not currently have an internal audit department, but this will be reviewed periodically[141] Dividend Policy - The Company adopted a Dividend Policy on December 31, 2018, considering factors such as actual and expected financial performance, shareholder interests, and retained earnings[146] - The declaration and payment of dividends are subject to applicable laws, including the Companies Ordinance (Chapter 622 of the Laws of Hong Kong)[148] - The Company reported a final dividend of 0.6 HK cents per share for the year ended December 31, 2018, subject to shareholder approval at the upcoming AGM[172] Employee and Management Information - As of 31 December 2018, the Group employed 104 staff, an increase from 102 staff in 2017[43] - The remuneration policy for employees is based on merit, qualifications, and competence, with recommendations from the Remuneration Committee[199] - The Company has adopted a share option scheme as an incentive for eligible participants[199] Shareholder Communication - The Company aims to maintain ongoing dialogue with shareholders through annual general meetings and other meetings[159] - The Group has established procedures for responding to external inquiries, ensuring only authorized personnel communicate with outside parties[144] - The Company has a communication platform available at www.apexace.com for public access to financial and relevant information[160]