WINOX HOLDINGS LIMITED 盈利時控股有限公司 (incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) Stock Code 股份代號：6838 INTERIM REPORT 2021 中期報告 WINOX HOLDINGS LIMITED 盈利時控股有限公司 (incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) Stock Code 股份代號：6838 INTERIM REPORT 2021 中期報告 目錄 公司資料及重要日期 2 財務摘要 3 管理層討論及分析 4 簡明綜合財務報表審閱報告 9 中期財務資料 | --- | --- | |---------------------------------|-------| | | | | 簡明綜合損益及其他全面收益表 10 | | | 簡明綜合財務狀況表 11 | | | 簡明綜合權益變動表 12 | | | 簡明綜合現金流量表 13 | | ...

Financial Performance - The company's revenue for the fiscal year ended December 31, 2020, was HKD 1,187,440,000, a decrease of 1.9% compared to HKD 1,210,334,000 in 2019[12]. - Net profit for the year was HKD 96,085,000, down 30.6% from HKD 138,396,000 in the previous year, with basic earnings per share at 19.2 HK cents, a decline of 30.7% from 27.7 HK cents[12]. - The gross profit for the year decreased by 21.8% to HKD 240,161,000, with a gross profit margin decline of 5.2 percentage points to 20.2%[26]. - The total comprehensive income for the year was HKD 154,416,000, an increase from HKD 123,539,000 in 2019, marking a growth of about 25.0%[191]. - Basic earnings per share decreased to HKD 0.192 from HKD 0.277, representing a decline of approximately 30.7%[191]. Segment Performance - The smart wearable device segment achieved sales of HKD 273,801,000, representing a growth of 74.7% year-on-year, while the mobile phone casing and parts segment saw sales of HKD 650,760,000, an increase of 10.5%[14]. - The luxury goods segment, including straps and fashion accessories, experienced significant declines in sales, with decreases of 39.9% and 54.4% respectively due to the pandemic[15]. - The revenue from the watch strap segment fell by 39.9% to HKD 211,621,000, while the mobile phone casing and parts segment increased by 10.5% to HKD 650,760,000[23][24]. - The sales of smart wearable device casings and parts surged by 74.7% to HKD 273,801,000, reflecting strong demand from leading global customers[26]. Dividends and Shareholder Returns - The company proposed a final dividend of 3 HK cents per share, consistent with the previous year, and plans to issue one bonus share for every five existing shares held[13]. - The company proposed a final dividend of HKD 0.03 per share for the year ended December 31, 2020, totaling approximately HKD 15 million, consistent with the previous year[81]. - The company plans to distribute bonus shares at a ratio of one bonus share for every five existing shares held, totaling approximately 100 million shares[82]. - As of December 31, 2020, the company's reserves available for distribution to shareholders amounted to approximately HKD 361.85 million, an increase from HKD 337.07 million in 2019[83]. - The company has adopted a dividend policy targeting a payout ratio of at least 40% of the profit attributable to shareholders for each financial year[84]. Assets and Liabilities - Total assets as of December 31, 2020, were HKD 1,233,858,000, with total liabilities of HKD 72,493,000 and net assets of HKD 899,850,000[5]. - The asset-liability ratio was 0.06, reflecting a conservative financial structure[5]. - The company's total equity increased to HKD 899,850,000 in 2020 from HKD 760,434,000 in 2019, representing a growth of about 18.4%[195]. - Total liabilities decreased to HKD 331,125,000 in 2020 from HKD 347,061,000 in 2019, showing a reduction of approximately 4.6%[195]. - The total outstanding bank borrowings as of December 31, 2020, were HKD 72,493,000, slightly up from HKD 70,494,000 in the previous year, with 40,910,000 HKD due within one year[41]. Cash Flow and Financing - Operating cash flow before changes in working capital was HKD 170,399,000, a decrease from HKD 216,050,000 in the previous year[199]. - Net cash generated from operating activities increased to HKD 177,776,000, compared to HKD 81,795,000 in the prior year[199]. - Net cash used in investing activities was HKD 99,191,000, an improvement from HKD 131,551,000 in the previous year[199]. - Net cash used in financing activities was HKD 44,761,000, compared to HKD 51,563,000 in the prior year[199]. - The company’s total liabilities decreased, with bank borrowings repaid amounting to HKD 90,111,000, compared to HKD 22,571,000 in the previous year[199]. Operational Efficiency and Future Outlook - The company anticipates continued growth in the smart wearable device market, particularly for smartwatches, and has increased production capacity to meet expected demand[14]. - The company is cautiously optimistic about revenue growth in 2021, with an increase in orders noted and a focus on improving operational efficiency and profitability[48]. - The company is investing in R&D, allocating $H million to develop new technologies that align with market trends and consumer demands[54]. - Cost management strategies have been implemented, resulting in a reduction of operational expenses by I%, which is expected to improve overall profitability[54]. - The company plans to enhance its digital marketing efforts, aiming for a J% increase in online sales through targeted campaigns[54]. Governance and Compliance - The company has established a high level of corporate governance to manage business risks and enhance transparency[133]. - The board consists of four independent non-executive directors, representing at least one-third of the board's composition[143]. - The audit committee, composed entirely of independent non-executive directors, held four meetings during the year to review financial performance and internal controls[147]. - The company has adopted a corporate governance policy to ensure effective application and promotion of governance principles[134]. - The company has complied with the disclosure requirements under the Hong Kong Companies Ordinance[173]. Risk Management - The company has a structured approach to risk management, involving the board, audit committee, management, and internal audit team[160]. - The board is responsible for determining the nature and extent of risks the company is willing to take to achieve its strategic objectives[159]. - The internal audit team plays a crucial role in assessing the effectiveness of the risk management and internal control systems, reporting quarterly to the audit committee[162]. - The management assessed the expected credit loss for trade receivables based on internal credit ratings and historical default rates[177]. - The financial performance and business outlook may be affected by various risks and uncertainties related to the company's operations[71].

Financial Performance - Revenue for the six months ended June 30, 2020, increased by 9.1% to HKD 521,995,000 compared to HKD 478,511,000 in the same period last year[11] - Gross profit decreased by 24.4% to HKD 95,634,000, with a gross margin of 18.3%, down from 26.4% in the previous year[19] - Net profit for the period fell by 33.9% to HKD 35,231,000, with basic earnings per share decreasing by 34.6% to HKD 0.07[19] - Total revenue for the six months ended June 30, 2020, was HKD 521,995,000, an increase of 9.0% compared to HKD 478,511,000 for the same period in 2019[41] - The company reported a net profit of HKD 35,231,000 for the six months ended June 30, 2020, a decrease of 34.0% from HKD 53,334,000 in the prior year[41] - The total comprehensive income for the period was HKD 21,369,000, down from HKD 52,144,000 in the previous year, indicating a decrease of about 59%[46] Revenue Breakdown - The watch strap segment's revenue decreased by 41.7% to HKD 103,293,000, while the mobile phone casing and parts segment grew by 10.2% to HKD 262,373,000[14][15] - Revenue from smart wearable device casings and parts surged by 795.7% to HKD 127,901,000, compared to HKD 14,280,000 in the previous year[17] - Revenue from mobile phone frames and components was HKD 262,373,000, up 10.2% from HKD 238,093,000 in 2019[59] - Revenue from smart wearable device frames and components was HKD 127,901,000, while the revenue from straps was HKD 103,293,000, compared to HKD 14,280,000 and HKD 177,209,000 respectively in 2019[59] - Revenue from Taiwan increased to HKD 202,696,000 from HKD 188,912,000, representing a growth of 7.6%[61] - Revenue from China surged to HKD 160,570,000, a significant increase from HKD 53,234,000 in 2019, marking a growth of 201.1%[61] Costs and Expenses - Direct material costs for the six months ended June 30, 2020, amounted to HKD 225,407,000, representing approximately 52.9% of total sales costs, an increase from 51.0% in 2019[20] - Selling and distribution costs decreased by 36.1% to HKD 6,672,000 from HKD 10,444,000 in the previous year, mainly due to a decline in strap sales[22] - Administrative expenses decreased by 2.6% to HKD 54,067,000 from HKD 55,522,000 in 2019, attributed to reduced employee costs[23] - Financing costs increased by 90.1% to HKD 2,448,000 from HKD 1,288,000 in the previous year, primarily due to increased bank loans[23] Assets and Liabilities - Total assets as of June 30, 2020, were HKD 1,070,748,000, a decrease of 3.6% from HKD 1,110,774,000[8] - Total borrowings increased by 70.6% to HKD 120,284,000, compared to HKD 70,494,000 in the previous year[8] - Trade receivables as of June 30, 2020, were HKD 181,237,000, down from HKD 264,090,000 as of December 31, 2019, with a trade receivables turnover of 77.6 days compared to 62.9 days in the previous year[29] - Inventory balance decreased by 16.1% to HKD 111,919,000 from HKD 133,345,000 as of December 31, 2019, with a turnover period of 52.3 days compared to 41.8 days in the previous year[27] - The company’s outstanding bank borrowings as of June 30, 2020, were HKD 120,284,000, an increase from HKD 70,494,000 as of December 31, 2019, with 82,929,000 HKD due within one year[31] - The asset-liability ratio as of June 30, 2020, was 0.11, compared to 0.06 as of December 31, 2019[32] Operational Challenges - The company faced operational challenges due to the COVID-19 pandemic, which led to a temporary halt in production activities, impacting overall business performance[52] - The company has implemented various financial measures in response to the pandemic, including government subsidies related to COVID-19, which have affected its business operations[52] Dividends and Shareholder Information - The company declared dividends of HKD 15,000,000 during the period, compared to HKD 42,500,000 in the same period last year, indicating a reduction of approximately 65%[46] - As of June 30, 2020, the company reported that Mr. Yao Hanming holds a 66.34% stake in the company through Ming Fung Group (Hong Kong) Limited, which owns 330,000,000 shares[101] - The board of directors includes Mr. Yao Hanming as Chairman and Executive Director, and Mr. Li Zhanqiang as Managing Director since June 15, 2020[89] Governance and Compliance - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange, except for deviations from specific provisions[88] - The company’s internal control systems are deemed adequate and effective, covering all significant monitoring areas including financial, operational, and compliance controls[93] - The company has established a remuneration committee and a nomination committee, both comprising independent non-executive directors and one executive director[94] Future Outlook - The company continues to focus on developing and producing high-end stainless steel products, despite challenges posed by the COVID-19 pandemic[10] - The company is optimistic about the future development of its specialty steel products business, leveraging its core team's expertise and leading technology[37] - The company plans to continue focusing on improving operational efficiency and resource utilization to enhance profitability and achieve sustainable growth[37]

Financial Performance - The company's revenue for the fiscal year ended December 31, 2019, was HKD 1,210,334,000, an increase of 7.2% compared to HKD 1,128,653,000 in 2018[11] - The net profit for the same period was HKD 138,396,000, down 10.2% from HKD 154,126,000 in 2018, with basic earnings per share decreasing to 27.7 HK cents from 30.8 HK cents[11] - Gross profit decreased by 0.6% to HKD 306,959,000, with a gross margin decline of 2.0 percentage points to 25.4%[24] - Net profit for the year fell by 10.2% to HKD 138,396,000, down from HKD 154,126,000 in 2018[24] - Total revenue for 2019 was HKD 1,210,334 thousand, an increase of 7.2% from HKD 1,128,653 thousand in 2018[181] - Gross profit for 2019 was HKD 306,959 thousand, slightly down from HKD 308,694 thousand in 2018, resulting in a gross margin of 25.4%[181] - Net profit for the year was HKD 138,396 thousand, compared to HKD 154,126 thousand in 2018, reflecting a decrease of 10.2%[181] - Earnings per share (basic) decreased to HKD 27.7 cents from HKD 30.8 cents in 2018, a decline of 10.7%[181] Dividends - The total dividend for the year was 8 HK cents per share, a decrease from 14.5 HK cents in 2018, including an interim dividend of 5 HK cents[12] - The proposed final dividend for the year ended December 31, 2019, is HKD 0.03 per share, down from HKD 0.085 per share in 2018, resulting in a total dividend of HKD 0.08 per share for the year[79] - The company paid dividends totaling HKD 67,500 thousand in 2019, compared to HKD 65,000 thousand in 2018, an increase of 3.8%[190] - The board has adopted a dividend policy targeting a payout ratio of at least 40% of the profit attributable to shareholders for each financial year[81] Revenue Segments - The new product segment of smart wearable devices generated sales of HKD 156,719,000, with the main products being smart watch cases and components[13] - The mobile phone case and components segment achieved sales of HKD 589,104,000, an increase of 18.9% compared to the previous year[13] - The sales of watch bands decreased by 33.8% compared to the previous year[13] - The fashion jewelry and leather goods accessories segment, now renamed as trendy accessories, saw a sales increase of 13.2% compared to the previous year[13] - The sales of smart wearable device frames and parts reached HKD 156,719,000, a 72.1 times increase from HKD 2,174,000 in 2018[24] - The revenue from mobile phone frames and parts rose by 18.9% to HKD 589,104,000, up from HKD 495,437,000 in 2018[22] - The revenue from fashion jewelry increased by 13.2% to HKD 112,448,000, compared to HKD 99,341,000 in 2018[23] - The revenue from straps decreased by 33.8% to HKD 352,063,000, down from HKD 531,701,000 in 2018[20] Assets and Liabilities - Total assets as of December 31, 2019, were HKD 1,110,774,000, with total liabilities of HKD 70,494,000 and net assets of HKD 760,434,000[5] - The group's current assets net value as of December 31, 2019, was HKD 235,477,000, down 12.7% from HKD 269,788,000 in 2018[37] - The group had cash and bank balances of HKD 137,292,000 as of December 31, 2019, a decrease of 42.6% from HKD 239,478,000 in the previous year[37] - The total outstanding secured bank borrowings as of December 31, 2019, was HKD 70,494,000, an increase of 34.9% from HKD 52,250,000 in 2018[38] - The group's trade receivables amounted to HKD 264,090,000, an increase of 72.5% from HKD 153,243,000 as of December 31, 2018[33] - The group's trade payables as of December 31, 2019, were HKD 173,141,000, up 69.5% from HKD 102,206,000 in the previous year[34] - The group's inventory as of December 31, 2019, totaled HKD 133,345,000, a significant increase of 78.1% from HKD 74,804,000 in 2018[35] - Inventory balance as of December 31, 2019, was HKD 133,345,000, a 78.3% increase from HKD 74,804,000 in 2018[32] Operational Efficiency and Strategy - The company plans to invest in the growth of the smart wearable device segment to capture future market opportunities[13] - The company’s operating efficiency is highlighted as a key factor for long-term sustainable development[15] - The company aims to leverage its expertise in premium steel products to explore long-term growth opportunities amid economic uncertainties[14] - The company is committed to improving operational efficiency and utilizing resources to enhance profitability, aiming for sustainable growth[46] Governance and Compliance - The company’s board of directors includes a mix of executive and independent non-executive members, ensuring governance and oversight[85] - The company has adopted corporate governance practices in compliance with the applicable code provisions, with some deviations noted[123] - The independent auditor, Deloitte, was appointed for the year, and a resolution will be proposed at the annual general meeting for their reappointment[121] - The company has established internal control and risk management systems to ensure compliance with legal and regulatory requirements[129] - The board emphasizes the development of corporate governance and internal control systems as part of its strategic oversight[128] - The audit committee, composed entirely of independent non-executive directors, held four meetings in the fiscal year to review financial performance and internal controls[139] - The remuneration committee, which includes four independent non-executive directors, held one meeting to review performance-linked bonuses and executive compensation[140] - The company has purchased liability insurance for directors and senior management to protect against legal actions arising from corporate activities[130] Market and Economic Conditions - The global economic and trade activities faced significant disruptions due to the COVID-19 pandemic, with central banks lowering interest rates to boost liquidity[46] - The company plans to focus on high-end steel products and expand its product range to include mobile and wearable device accessories to mitigate risks associated with economic downturns[70] Shareholder Information - The total number of ordinary shares held by major shareholders includes Ming Fung Investment Limited and Ming Fung Group (Hong Kong) Limited, each holding approximately 330,000,000 shares, representing 66% of the total issued share capital[108] - The executive directors, including Yao Hanming and Luo Huiping, collectively own 66.34% of the company's issued share capital through controlled corporations[102] - Major shareholders include Shengxiong Holdings Limited, which holds 42,500,000 shares, accounting for 8.5% of the total issued share capital[108] - The company has a significant concentration of ownership, with the top two shareholders controlling 66.34% of the shares[102] - The company maintained a sufficient public float, with at least 25% of the total issued share capital held by the public[117] Environmental and Social Responsibility - The company has implemented environmental protection measures, including energy-efficient lighting and waste management systems, to comply with local regulations[76] - The company made charitable contributions totaling HKD 267,000 during the year, compared to HKD 174,000 in 2018[82]

Financial Performance - Revenue for the first half of 2019 decreased by 2.7% to HKD 478,511,000 compared to HKD 491,687,000 in the same period of 2018[9] - Profit for the period fell by 15.1% to HKD 53,334,000 from HKD 62,832,000 year-on-year[9] - The group's gross profit decreased by 5.9% to HKD 126,462,000, with a gross margin of 26.4% compared to 27.3% in the previous year[21] - Net profit for the period fell by 15.1% to HKD 53,334,000, with basic earnings per share also declining by 15.1% to HKD 0.107[21] - Profit before tax decreased to HKD 60,692,000 from HKD 66,850,000, representing a decline of 9.7%[39] - Total comprehensive income for the period was HKD 52,144,000, slightly down from HKD 53,140,000[39] Revenue Breakdown - Sales of watch bands decreased by 26.6% to HKD 191,489,000, while sales of mobile phone frames and parts increased by 29.3% to HKD 238,093,000[12] - Revenue from watch bands was HKD 191,489,000, a decrease from HKD 260,922,000 in the same period last year, representing a decline of approximately 26.6%[85] - Revenue from mobile phone frames and components increased to HKD 238,093,000 from HKD 184,073,000, marking a growth of approximately 29.4%[85] - Revenue from fashion jewelry reached HKD 43,911,000, up from HKD 37,332,000, reflecting an increase of approximately 17.0%[85] - The total revenue for the six months ended June 30, 2019, was HKD 478,511,000, compared to HKD 491,687,000 for the same period in 2018, indicating a decrease of about 2.7%[85] Expenses and Costs - Gross profit margin slightly decreased by 0.9 percentage points to 26.4% due to changes in product mix[12] - Selling and distribution expenses decreased by 30.7% to HKD 10,444,000, mainly due to the decline in watch band sales[16] - Administrative expenses increased by 9.9% to HKD 55,522,000, attributed to rising employee costs[17] - Financing costs decreased by 14.1% to HKD 1,288,000 compared to HKD 1,500,000 in the previous year[18] - The company incurred depreciation of property, plant, and equipment amounting to HKD 20,560,000 for the six months ended June 30, 2019, compared to HKD 18,912,000 in 2018, reflecting an increase of 8.7%[90] Assets and Liabilities - Total assets as of June 30, 2019, were HKD 925,349,000, a decrease of 1.6% from HKD 940,568,000[10] - Inventory balance increased by 17.6% to HKD 87,952,000, primarily due to increases in raw materials and work-in-progress[22] - Trade receivables amounted to HKD 150,699,000, with a turnover period of 57.5 days, up from 47.5 days in the previous year[24] - Trade payables stood at HKD 106,830,000, with a turnover period of 53.7 days, compared to 44.9 days in the previous year[25] - Current assets net value decreased to HKD 240,067,000, while cash and bank balances dropped to HKD 163,525,000[26] - Current liabilities decreased to HKD 207,777,000 from HKD 236,173,000, a reduction of 12.1%[41] Cash Flow - Net cash generated from operating activities for the six months ended June 30, 2019, was HKD 37,481,000, a decrease of 31.4% from HKD 54,589,000 in the same period of 2018[46] - Net cash used in investing activities amounted to HKD (58,062,000), compared to HKD (42,873,000) in the previous year, indicating a significant increase in investment outflows[46] - Cash used in financing activities totaled HKD (55,222,000), which included HKD (42,500,000) in dividends paid to shareholders, compared to HKD (35,000,000) in the previous year[46] - The company reported a net decrease in cash and cash equivalents of HKD (75,803,000) for the six months ended June 30, 2019, compared to a decrease of HKD (36,069,000) in the same period of 2018[46] Dividends - The company declared an interim dividend of HKD 0.05 per share, down 16.7% from HKD 0.06 per share in the previous year[9] - The interim dividend declared for the six months ended June 30, 2019, was HKD 0.05 per share, totaling HKD 25,000,000, down from HKD 0.06 per share and HKD 30,000,000 in the same period of 2018[94] Governance and Compliance - The company maintained compliance with the corporate governance code, with the exception of two specific provisions[115] - The audit committee reviewed the interim results for the six months ended June 30, 2019, ensuring adherence to accounting principles and internal controls[117] - The company has established a remuneration committee and a nomination committee, both consisting of independent non-executive directors[118] - The company’s board of directors includes a mix of executive and independent non-executive members, ensuring a balance of power[116] - The company has confirmed compliance with the standard code for securities transactions by directors during the reporting period[120] Shareholding Structure - As of June 30, 2019, the total number of ordinary shares held by directors and senior management in the company is approximately 331,700,000, representing 66.34% of the total issued share capital[124] - The company has a significant ownership structure, with Ming Fung Investment Limited holding 330,000,000 shares, which is 66% of the total issued share capital[133] - The company’s major shareholders include Sheng Hung Holdings Limited, which holds 42,500,000 shares, accounting for 8.5% of the total issued share capital[133] - The beneficial ownership of directors includes Mr. Yao Hanming and Ms. Luo Huiping, who collectively control 66.34% of the company through their holdings in Ming Fung Investment Limited[126] - The company has a clear governance structure with significant shareholding concentrated among a few key individuals and entities[133]

Financial Performance - Revenue for the year ended December 31, 2018, was HKD 1,128,653,000, representing a 26.6% increase from HKD 891,446,000 in 2017[6] - Gross profit for the same period was HKD 308,694,000, up 20.3% from HKD 256,529,000 in 2017[6] - Net profit for the year increased by 32.4% to HKD 154,126,000, compared to HKD 116,435,000 in the previous year[6] - Basic earnings per share rose to HKD 30.8, a 32.2% increase from HKD 23.3 in 2017[6] - Total dividend per share for the year was HKD 14.5, up from HKD 11 in 2017[6] - Profit before tax increased to HKD 178,140,000, a rise of 27.2% compared to HKD 140,062,000 in the previous year[175] - Operating profit before tax increased to HKD 178,140 million from HKD 140,062 million, representing a growth of approximately 27%[184] - The company declared dividends of HKD 65,000,000 for the year 2018, compared to HKD 50,000,000 in 2017, representing a 30% increase[181] Assets and Liabilities - Total assets as of December 31, 2018, were HKD 940,568,000, a 5.6% increase from HKD 890,449,000 in 2017[8] - The company's net asset value was HKD 704,395,000, with a net asset value per share of HKD 1.41[8] - Total liabilities increased to HKD 434,587,000 in 2018 from HKD 427,947,000 in 2017, a rise of 1.5%[179] - The company's net asset value as of December 31, 2018, was HKD 704,395,000, up from HKD 650,897,000 in 2017, reflecting an increase of 8.2%[179] - Cash and cash equivalents at year-end were HKD 239,478,000, compared to HKD 200,453,000 in 2017, an increase of 19.5%[179] Revenue Breakdown - The revenue distribution by product categories showed significant contributions from watches and fashion accessories, with the highest revenue recorded in 2018[9] - Sales from the watch strap segment increased by 23.1% to HKD 533,875,000, compared to HKD 433,849,000 in 2017[17] - Sales of mobile phone frames and parts reached HKD 495,437,000, a significant increase of 53.2% from HKD 323,393,000 in 2017[18] - The sales of fashion accessories decreased by 31.8% to HKD 80,548,000, down from HKD 118,023,000 in 2017[23] Expenses and Costs - Direct material costs accounted for approximately 49.3% of total sales costs, while direct labor costs represented about 35.5%[28] - Selling and distribution expenses rose by 15.8% to HKD 30,383,000, in line with revenue growth[28] - Administrative expenses increased by 25.6% to HKD 109,007,000, primarily due to higher salaries and performance bonuses[29] - The financing cost for the year was HKD 2,961,000, a decrease of 15.1% from HKD 3,489,000 in 2017, primarily due to the repayment of bank loans[30] Inventory and Receivables - As of December 31, 2018, the group recorded inventory balance of HKD 74,804,000, down 8.9% from HKD 82,150,000 in 2017, mainly due to a reduction in work-in-progress[33] - Trade receivables increased to HKD 153,243,000 as of December 31, 2018, up from HKD 140,261,000 in 2017, reflecting a rise in revenue[36] - Approximately HKD 33,600,000 of the trade receivables were overdue as of December 31, 2018[161] - The company did not recognize any impairment for trade receivables as of December 31, 2018, due to the amounts involved not being significant[161] Corporate Governance - The company’s board of directors includes a mix of executive and independent non-executive members, ensuring diverse governance[78] - The company has established a high level of corporate governance to manage business risks and enhance transparency[120] - The board of directors has confirmed their commitment to continuous professional development to fulfill their responsibilities effectively[131] - The company has adopted a corporate governance policy to ensure effective application and promotion of governance principles[121] Future Outlook and Strategy - The company remains optimistic about the future development of its precision steel products business, leveraging its core team's extensive experience and leading technology in steel materials and product design[43] - The company aims to expand its product range to include mobile and wearable device accessories to target high-end customers and mitigate risks associated with customer concentration[62] - The company plans to focus on high-end clients and expand its product categories to manage risks related to global economic conditions and consumer purchasing power[62] Compliance and Environmental Responsibility - The company has maintained compliance with all relevant environmental regulations and has implemented systems to monitor waste and wastewater treatment in its Chinese facilities[68] - The company has introduced energy-efficient equipment in its Chinese factories to reduce energy consumption and has established a reward system for reducing raw material waste[68] - The company has not reported any significant violations of applicable laws and regulations that would materially impact its business operations during the year[70] Audit and Financial Reporting - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and reflect the group's financial position accurately[157] - The auditors provided a clean opinion on the financial statements, confirming they were free from material misstatement[157] - The company has implemented sufficient internal control systems and risk management procedures as part of its governance practices[129] - The internal audit team plays a crucial role in assessing the effectiveness of the risk management and internal control systems, reporting quarterly to the audit committee[147]