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]