Financial Performance - The group's revenue increased by approximately HKD 43.1 million or 59.1%, from about HKD 73.0 million for the three months ended March 31, 2022, to approximately HKD 116.1 million for the three months ended March 31, 2023[14]. - The sales cost rose by approximately HKD 36.2 million or 57.3%, from about HKD 63.2 million for the three months ended March 31, 2022, to approximately HKD 99.4 million for the three months ended March 31, 2023[14]. - The gross profit increased by approximately HKD 6.9 million or 70.7%, from about HKD 9.8 million for the three months ended March 31, 2022, to approximately HKD 16.7 million for the three months ended March 31, 2023[14]. - The gross profit margin improved from 13.4% for the three months ended March 31, 2022, to 14.4% for the three months ended March 31, 2023[14]. - The company recorded a profit of approximately HKD 8.1 million for the three months ended March 31, 2023, compared to HKD 1.8 million for the same period in 2022, reflecting a significant increase in pre-tax profit[18]. - Revenue for the three months ended March 31, 2023, was approximately HKD 116.1 million, up from HKD 73.0 million in the same period of 2022, representing a growth of about 58.0%[23]. - The basic earnings per share for the three months ended March 31, 2023, was HKD 4.03, compared to HKD 0.91 for the same period in 2022, indicating a substantial improvement in profitability[23]. - The company reported a pre-tax profit of HKD 8,051,000 for the three months ended March 31, 2023, compared to HKD 1,827,000 in the same period of 2022, marking a substantial increase[41]. Sales and Product Performance - Transformers accounted for approximately 40.8% of the group's sales for the three months ended March 31, 2023, down from 51.4% for the same period in 2022[10]. - Electronic components and other products represented approximately 57.7% of the group's sales for the three months ended March 31, 2023, up from 47.8% for the same period in 2022[10]. - Transformer sales amounted to HKD 47,409,000, up 26.4% from HKD 37,506,000 year-over-year[30]. - Sales of electronic components surged to HKD 66,982,000, a significant increase of 92.0% compared to HKD 34,891,000 in the previous year[30]. - The geographical revenue breakdown shows that sales in India increased significantly to HKD 29,328,000 from HKD 16,365,000, reflecting a growth of 79.5%[32]. Costs and Expenses - Administrative expenses increased by approximately HKD 1.8 million or 36.7% to about HKD 6.9 million, driven by higher R&D expenditures for new product development and upgrades[16]. - Financing costs increased by approximately HKD 0.2 million or 37.5% to about HKD 0.8 million, attributed to rising bank borrowings and interest rates during the review period[16]. - The total employee costs, including directors' remuneration, increased to HKD 6,309,000 from HKD 4,514,000 year-over-year[38]. - Research and development expenses rose to HKD 2,380,000, up from HKD 721,000 in the previous year, indicating a focus on innovation[38]. Other Income and Gains - Other income increased by approximately HKD 39,000 or 843.9% to about HKD 44,000 for the three months ended March 31, 2023, primarily due to increased interest income during the review period[15]. - Other gains rose by approximately HKD 2.6 million or 1,005.4% to about HKD 2.9 million for the same period, mainly due to investment income from copper options hedging policies[15]. Strategic Initiatives - The group plans to enhance production efficiency to reduce waste and overall production costs[11]. - The management maintained close communication with existing customers to follow up on revised delivery schedules[11]. - The company is optimistic about market demand for clean energy equipment, particularly electronic components, due to global policies favoring renewable and sustainable development[19]. - The management has adopted new hedging policies regarding copper options to effectively control material costs amid economic uncertainties[19]. - The company has increased production capacity during the review period to meet the growing demand from its developed customer base[19]. Corporate Governance and Compliance - The audit committee reviewed the unaudited condensed consolidated financial results for the three months ended March 31, 2023, and had no objections to the accounting treatments adopted by the company[62]. - The company has complied with the corporate governance code during the reporting period[65]. - The board confirmed no knowledge of any circumstances that would require disclosure under GEM Listing Rules as of March 31, 2023[66]. - The company is committed to transparency in accordance with GEM listing regulations[66]. - The report emphasizes the importance of corporate governance and accountability[66]. Shareholder Information - As of March 31, 2023, Mr. Zhong Zhiheng holds a 63.0% equity interest in the company through controlled corporation with 126,000,000 shares[45]. - Mr. Zhong Tiancheng has a beneficial interest of 7.0% with 14,000,000 shares[45]. - The company did not declare an interim dividend for the three months ended March 31, 2023, consistent with the previous year[40]. - The company did not declare any dividends for the three months ended March 31, 2023, consistent with the previous year[51]. - No share options were granted, exercised, or cancelled under the share option scheme during the three months ended March 31, 2023[52]. - The company did not purchase, sell, or redeem any listed securities during the period from January 1, 2023, to March 31, 2023[54]. - There were no capital commitments or contingent liabilities for the group as of March 31, 2023[55][56]. Significant Events - The company entered into two provisional agreements to acquire properties in Tsuen Wan, Hong Kong, for a total consideration of HKD 21,680,000 on February 23, 2023[57]. - No significant events or changes were reported that would impact the company's financial standing[66]. - The company continues to monitor market conditions and regulatory requirements closely[66]. - The board remains focused on strategic growth and operational efficiency[66]. - The company is preparing for future disclosures as required by the GEM listing rules[66].

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的內容概不負責， 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的任何損失承擔任何責任。 KEEN OCEAN INTERNATIONAL HOLDING LIMITED 僑 洋 國 際 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8070） 截至2023年3月31日止三個月 第一季度業績公告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交 所上市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在 風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣 之證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量 的市場。 本公告的資料乃遵照《聯交所GEM證券上市規則》（「GEM上市規則」）而刊載，旨 在提供有關僑洋國際控股有限公司（「本公司」或「我們」）及其附屬公司（統稱「本 集團」）的資料；本公司董 ...

Financial Performance - Total revenue for the fiscal year ended December 31, 2022, was HKD 394.87 million, an increase from HKD 267.27 million in 2021, representing a growth of approximately 47.7%[8] - The pre-tax profit for 2022 was HKD 21.01 million, compared to HKD 12.99 million in 2021, indicating a year-over-year increase of about 62.3%[8] - The net profit for the year was HKD 16.80 million, up from HKD 12.22 million in 2021, reflecting a growth of approximately 37.5%[8] - The total assets of the company as of December 31, 2022, amounted to HKD 238.22 million, an increase from HKD 177.67 million in 2021, which is a growth of about 34.1%[8] - The gross profit rose by approximately HKD 15.5 million or 36.7%, from about HKD 42.2 million in 2021 to approximately HKD 57.7 million in 2022, while the gross profit margin decreased from 15.8% to 14.6% due to rising material and production costs[24] - Sales costs increased by approximately HKD 112.1 million or 49.8%, from about HKD 225.0 million in 2021 to approximately HKD 337.1 million in 2022, consistent with revenue growth and driven by higher material costs[24] Market Demand and Product Focus - The company’s flagship product, transformers, accounted for approximately 55.6% of total sales in 2022, up from 50.1% in 2021[13] - The demand for transformers and electronic components increased due to a surge in clean energy equipment needs, contributing to the revenue growth[13] - The company is exploring business development opportunities in response to the increasing demand for clean energy equipment[10] - The company has reallocated resources for electronic health products to other product lines to meet changing customer demands, indicating a strategic shift in product focus[30] Research and Development - The company plans to continue focusing on product upgrades and innovations through its R&D team to meet market demands[10] - Research and development expenses increased by approximately HKD 8.6 million, contributing to a rise in administrative expenses by approximately HKD 9.8 million or 48.3%, from about HKD 20.3 million in 2021 to approximately HKD 30.0 million in 2022[26] Financial Stability and Assets - As of December 31, 2022, the group's net asset value reached approximately HKD 81.8 million, an increase from HKD 69.6 million as of December 31, 2021, representing a growth of about 31.5%[33] - The group's current assets amounted to approximately HKD 223.2 million as of December 31, 2022, compared to HKD 161.1 million as of December 31, 2021, reflecting a growth of approximately 38.6%[33] - The group's current liabilities were approximately HKD 156.4 million as of December 31, 2022, up from HKD 106.2 million as of December 31, 2021, indicating an increase of about 47.2%[33] - The group had a debt-to-equity ratio of approximately 0.41 as of December 31, 2022, down from 0.55 as of December 31, 2021, indicating improved financial stability despite increased bank borrowings[34] Employee and Management - The total employee cost for the year ended December 31, 2022, was approximately HKD 46.0 million, compared to HKD 41.6 million for the year ended December 31, 2021, representing an increase of about 10.6%[44] - The number of employees increased to approximately 598 as of December 31, 2022, from about 487 as of December 31, 2021, reflecting a growth of approximately 22.8%[44] - The executive team includes experienced professionals with backgrounds in finance, engineering, and market operations, enhancing the company's strategic capabilities[54][56][57] Corporate Governance - The company has adhered to the corporate governance code as stipulated in the GEM listing rules, ensuring proper regulation of its operational activities and decision-making processes[65][66] - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[73] - The board emphasizes the importance of corporate culture as a foundation for long-term business development and economic achievement[67][68] - The company has established a risk management committee to oversee risk management and internal control systems, ensuring effective governance[83] Risk Management - The company has implemented a comprehensive risk management and internal control system to effectively address risks that may hinder strategic, financial, operational, and compliance objectives[130] - The board has conducted an annual review of the effectiveness of the risk management and internal control systems as of December 31, 2022, and found them to be adequate and effective[135] - The risk assessment process includes identifying, analyzing, prioritizing, and developing action plans for significant risks[132] Shareholder Communication and Dividends - The company has established multiple communication channels with shareholders and investors, including quarterly, interim, and annual reports[140] - The company reported no final dividend for the fiscal year ending December 31, 2022, consistent with the previous year[162] - The company has adopted a dividend policy that requires maintaining sufficient cash reserves to meet operational needs and future business growth[163] Stock Option Plan - The company has a share option plan aimed at rewarding eligible participants for their contributions to the group[188] - The maximum number of shares involved in the stock option plan is capped at 10% of the total issued shares post-placement, equating to 20,000,000 shares[190] - Stock options granted to directors or major shareholders require approval from independent non-executive directors[194]

Financial Performance - The group's revenue increased by approximately HKD 80.71 million or 44.80%, from about HKD 180.16 million for the nine months ended September 30, 2021, to approximately HKD 260.87 million for the nine months ended September 30, 2022[14]. - For the nine months ended September 30, 2022, the company recorded a profit of approximately HKD 9.04 million, an increase of 5.7% compared to HKD 8.55 million for the same period in 2021[17]. - Revenue for the nine months ended September 30, 2022, was approximately HKD 260.87 million, representing a 44.7% increase from HKD 180.15 million in the same period of 2021[23]. - Gross profit for the nine months ended September 30, 2022, was approximately HKD 35.26 million, up 16.8% from HKD 30.21 million for the same period in 2021[23]. - The company reported a total revenue of HKD 101.944 million for the three months ended September 30, 2022, compared to HKD 63.968 million in the same period of 2021, marking a growth of 59.2%[34]. - For the three months ended September 30, 2022, the company reported a profit attributable to shareholders of HKD 4,330,000, compared to HKD 1,184,000 for the same period in 2021, representing an increase of 265.4%[45]. - For the nine months ended September 30, 2022, the profit attributable to shareholders was HKD 9,044,000, up from HKD 8,554,000 in 2021, reflecting a growth of 5.7%[45]. Cost and Expenses - Sales cost rose by approximately HKD 75.67 million or 50.47%, from about HKD 149.94 million for the nine months ended September 30, 2021, to approximately HKD 225.61 million for the nine months ended September 30, 2022[14]. - Gross margin decreased from 16.77% for the nine months ended September 30, 2021, to 13.52% for the nine months ended September 30, 2022, primarily due to rising raw material and production costs[14]. - The company's administrative expenses increased by approximately HKD 3.16 million or 21.19% to about HKD 18.04 million for the nine months ended September 30, 2022, compared to HKD 14.89 million for the same period in 2021[17]. - Financing costs rose by approximately HKD 0.58 million or 40.57% to about HKD 2.01 million for the nine months ended September 30, 2022, due to increased interest rates[17]. - Total employee costs, including directors' remuneration, amounted to HKD 34.956 million for the nine months ended September 30, 2022, compared to HKD 30.790 million in the same period of 2021, reflecting an increase of 13.5%[39]. - The financing costs for the nine months ended September 30, 2022, totaled HKD 2.007 million, up 40.4% from HKD 1.428 million in the same period of 2021[37]. Sales and Product Performance - Transformers continued to be the flagship product, accounting for approximately 55.48% of the group's sales for the nine months ended September 30, 2022, compared to 51.71% for the same period in 2021[9]. - Revenue from transformer sales increased to HKD 144.728 million for the nine months ended September 30, 2022, up 55.3% from HKD 93.160 million in the same period of 2021[31]. - Revenue from electronic components sales increased to HKD 112.548 million for the nine months ended September 30, 2022, up 34.5% from HKD 83.685 million in the same period of 2021[31]. - Customer contract revenue reached HKD 260.870 million for the nine months ended September 30, 2022, representing a 44.7% increase compared to HKD 180.155 million in the prior year[31]. Other Income and Gains - Other income increased by approximately HKD 0.83 million or 130.17%, from about HKD 0.64 million for the nine months ended September 30, 2021, to approximately HKD 1.47 million for the nine months ended September 30, 2022[15]. - Other gains surged by approximately HKD 1.83 million or 3,524.97%, from about HKD 0.05 million for the nine months ended September 30, 2021, to approximately HKD 1.88 million for the nine months ended September 30, 2022[15]. Research and Development - Research and development expenses for the nine months ended September 30, 2022, were HKD 3.903 million, an increase of 65.7% from HKD 2.354 million in the same period of 2021[39]. Corporate Governance and Compliance - The company has maintained compliance with the GEM Listing Rules regarding securities transactions by directors during the reporting period[60]. - The board believes that integrating core elements of good corporate governance into the management structure helps balance the interests of shareholders, customers, and employees[66]. - The company has complied with the corporate governance code for the nine months ending September 30, 2022[67]. - The board confirmed that there are no known circumstances that would require disclosure under GEM Listing Rules as of September 30, 2022[69]. Risk Management - The Risk Management Committee was established on February 2, 2016, to oversee risk governance and hedging policies, including copper futures purchases[65]. - The company adopted a series of new hedging policies on September 29, 2021, which the Risk Management Committee is responsible for reviewing and approving[65]. - The company has adopted new hedging policies regarding copper options contracts to better control material costs amid supply chain uncertainties[18]. Dividends and Shareholder Information - The company did not declare or propose any dividends for the nine months ended September 30, 2022, consistent with the previous year[42]. - The board of directors did not recommend any interim dividend for the nine months ended September 30, 2022, consistent with the previous year[55]. - There were no share options granted, exercised, or cancelled under the share option scheme during the nine months ended September 30, 2022[56]. - The company did not repurchase any of its own shares during the period from January 1 to September 30, 2022[58]. Audit and Review - The audit committee reviewed the unaudited consolidated financial results for the nine months ended September 30, 2022, and had no objections to the accounting treatments adopted by the group[64]. - The company has not applied any new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective, and is currently assessing their potential impact[30]. Market Outlook - The management is optimistic about market demand for clean energy equipment, particularly electronic components, driven by global policies favoring renewable and sustainable development[18]. - The group observed a rise in average copper prices and is focused on improving production efficiency to reduce waste and overall production costs[10]. - The company has increased production capacity during the review period to meet the growing demand from its developed customer base[18]. Comprehensive Income - The total comprehensive income for the nine months ended September 30, 2022, was approximately HKD 6.61 million, compared to HKD 8.80 million for the same period in 2021[23]. - Basic and diluted earnings per share for the nine months ended September 30, 2022, were HKD 4.52, compared to HKD 4.28 for the same period in 2021[23].

Revenue and Profitability - The group's revenue increased by approximately HKD 42.74 million or 36.78%, from approximately HKD 116.19 million for the six months ended June 30, 2021, to approximately HKD 158.93 million for the six months ended June 30, 2022[13]. - For the six months ended June 30, 2022, the company's revenue increased to HKD 158,926 thousand, representing a 36.8% growth compared to HKD 116,187 thousand in the same period of 2021[40]. - The company reported a net profit of HKD 4,714 thousand for the six months ended June 30, 2022, down 36.0% from HKD 7,370 thousand in the same period of 2021[40]. - Profit for the six months ended June 30, 2022, was approximately HKD 4.71 million, down from HKD 7.37 million for the same period in 2021[17]. - The group’s net profit attributable to owners for the six months ended June 30, 2022, was HKD 4,714,000, a decrease of 36.0% from HKD 7,370,000 in the same period of 2021[58]. Costs and Expenses - Sales costs rose by approximately HKD 43.55 million or 45.82%, from approximately HKD 95.06 million for the six months ended June 30, 2021, to approximately HKD 138.61 million for the six months ended June 30, 2022[13]. - Administrative expenses rose by approximately HKD 1.23 million or 12.62% to about HKD 10.98 million for the six months ended June 30, 2022, driven by an increase in employee costs due to a rise in headcount[15]. - Financing costs increased by approximately HKD 366,000 or 41.83% to about HKD 1.24 million for the six months ended June 30, 2022, mainly due to an increase in short-term loans[17]. - The group’s total financing costs for the six months ended June 30, 2022, amounted to HKD 1,241,000, up from HKD 875,000 in the same period of 2021, indicating an increase of 41.7%[55]. Gross Profit and Margins - Gross profit decreased by approximately HKD 0.81 million or 3.85%, from approximately HKD 21.13 million for the six months ended June 30, 2021, to approximately HKD 20.32 million for the six months ended June 30, 2022[13]. - The gross profit margin fell from 18.19% for the six months ended June 30, 2021, to 12.78% for the six months ended June 30, 2022, primarily due to increased raw material costs[13]. - The operating profit margin declined due to rising raw material costs, particularly for electronic components and steel[10]. Assets and Liabilities - The group's net asset value as of June 30, 2022, was approximately HKD 71.83 million, compared to HKD 69.55 million as of December 31, 2021[23]. - Current assets as of June 30, 2022, were approximately HKD 177.63 million, up from HKD 161.15 million as of December 31, 2021[23]. - The total assets as of June 30, 2022, amounted to HKD 177,629 thousand, an increase from HKD 161,147 thousand as of December 31, 2021[42]. - The debt-to-equity ratio increased to approximately 0.57 as of June 30, 2022, compared to 0.55 as of December 31, 2021, due to increased bank borrowings[24]. Sales Performance - Transformers accounted for approximately 49.35% of the group's sales for the six months ended June 30, 2022, compared to 49.51% for the same period in 2021[9]. - Electronic components represented approximately 49.67% of sales for the six months ended June 30, 2022, up from 48.63% for the same period in 2021[9]. - Revenue from transformer sales of HKD 78,424,000 for the six months ended June 30, 2022, an increase of 36.3% compared to HKD 57,527,000 in the same period of 2021[52]. - Revenue from electronic components sales reached HKD 78,936,000 for the six months ended June 30, 2022, up 39.7% from HKD 56,500,000 in the previous year[52]. - Customer contract revenue totaled HKD 158,926,000 for the six months ended June 30, 2022, representing a 36.5% increase from HKD 116,187,000 in 2021[52]. Market Trends and Demand - The group has observed an increasing demand for clean energy equipment, particularly electronic components, driven by global policies favoring renewable and sustainable development[19]. - The group observed an increase in procurement orders for transformers and electronic components from existing customers to meet the rising demand for clean energy equipment[9]. Research and Development - The group incurred research and development expenses of HKD 1,637,000 for the six months ended June 30, 2022, compared to HKD 1,490,000 in 2021, reflecting an increase of 9.9%[57]. Shareholder Information - Major shareholder Zhong Zhiheng holds a 63.0% stake in the company, while Zhong Tiancheng holds a 7.0% stake as of June 30, 2022[71]. - The company has a total of 200,000,000 issued and fully paid ordinary shares as of June 30, 2022, unchanged from December 31, 2021[65]. Corporate Governance - The audit committee reviewed and approved the unaudited condensed consolidated financial results for the six months ended June 30, 2022[88]. - The risk management committee was established to oversee risk governance structures and hedging policies, including copper futures purchasing activities[90]. - The company adhered to the corporate governance code principles and provisions during the reporting period[92].

Financial Performance - The group's revenue increased by approximately HKD 15.5 million or 26.9%, from approximately HKD 57.5 million for the three months ended March 31, 2021, to approximately HKD 73.0 million for the three months ended March 31, 2022[14]. - For the three months ended March 31, 2022, the company reported revenue of HKD 72,995,000, an increase of 26.8% compared to HKD 57,542,000 for the same period in 2021[23]. - The company recorded a profit of HKD 1,827,000 for the three months ended March 31, 2022, a decrease of 58.8% from HKD 4,429,000 in the same period of 2021[23]. - The company reported a profit before tax of HKD 1,827,000, down 58.8% from HKD 4,429,000 in the same period last year[38]. Cost and Profitability - The sales cost rose by approximately HKD 17.1 million or 37.1%, from approximately HKD 46.1 million for the three months ended March 31, 2021, to approximately HKD 63.2 million for the three months ended March 31, 2022[14]. - The gross profit decreased by approximately HKD 1.7 million or 14.8%, from approximately HKD 11.5 million for the three months ended March 31, 2021, to approximately HKD 9.8 million for the three months ended March 31, 2022[14]. - The gross profit margin fell from 19.9% for the three months ended March 31, 2021, to 13.4% for the three months ended March 31, 2022[14]. - The gross profit margin for the period was impacted by a cost of sales amounting to HKD 57,292,000, compared to HKD 34,562,000 in the previous year[36]. Sales Composition - Transformer products accounted for approximately 51.4% of the group's sales for the three months ended March 31, 2022, compared to 46.5% for the same period in 2021[9]. - The switch power products represented approximately 0.8% of the group's sales for the three months ended March 31, 2022, down from 2.0% in the same period of 2021[9]. - Electronic components and other products accounted for approximately 47.8% of the group's sales for the three months ended March 31, 2022, compared to 51.3% for the same period in 2021[9]. - Transformer sales accounted for HKD 37,506,000, up 40.2% from HKD 26,779,000 in the previous year[32]. - The sales of electronic components increased to HKD 34,891,000, a rise of 18.1% from HKD 29,536,000 in 2021[32]. - Revenue from external customers in India surged to HKD 16,365,000, a significant increase of 58.5% compared to HKD 10,321,000 in the prior year[34]. Expenses and Financing - Administrative expenses remained stable at approximately HKD 5,052,000 for the three months ended March 31, 2022, compared to HKD 5,128,000 in the previous year[20]. - Financing costs increased by 45.7% to HKD 625,000 for the three months ended March 31, 2022, from HKD 429,000 in the same period of 2021, primarily due to an increase in short-term loans[20]. - Total employee costs, including directors' remuneration, increased to HKD 4,514,000 from HKD 3,405,000, reflecting a rise of 32.5%[36]. Corporate Governance and Compliance - The company has complied with the corporate governance code during the reporting period[59]. - The audit committee reviewed the unaudited consolidated financial results for the three months ended March 31, 2022, with no objections to the accounting treatments adopted by the company[55]. - The company has adopted a code of conduct for directors regarding securities trading, which has been fully complied with during the reporting period[52]. - There were no changes in the board of directors or senior management since the date of the company's 2021 annual report[45]. Market Outlook and Strategy - The company anticipates ongoing economic uncertainty due to the COVID-19 pandemic and its variants, affecting demand patterns and supply chain stability[18]. - Management is optimistic about market demand for clean energy equipment, particularly electronic components, driven by global policies favoring sustainability[21]. - The company has implemented new hedging policies regarding copper options to better control material costs[18]. - Management plans to maintain sufficient buffer inventory to address uncertainties in demand and supply chains[18]. - The company is confident in its ability to seize post-pandemic business opportunities for long-term sustainable growth[21]. Shareholder Information - As of March 31, 2022, the major shareholder, Mr. Zhong Zhiheng, holds 126,000,000 shares, representing 63.0% of the company's equity[41]. - The company did not declare an interim dividend for the three months ended March 31, 2022, consistent with the previous year[37]. - The company reported no dividends for the three months ended March 31, 2022, consistent with the previous year[47]. Risk Management - The risk management committee was established to oversee risk governance structures and hedging policies, including copper futures purchasing activities[57]. - The company has been closely monitoring the COVID-19 situation and believes it has not had a significant impact on its business operations and management[51].

Share Transfer Information - The company will suspend the transfer of shares from May 31, 2022, to June 6, 2022, instead of the previously stated dates[5] - All share transfer documents must be submitted by 4 PM on May 30, 2022, for eligible shareholders to attend the annual general meeting and vote[5] Board Confirmation - The board of directors confirms that the information in the announcement is accurate and complete, with no misleading or fraudulent elements[6]

Financial Performance - Total revenue for the fiscal year ended December 31, 2021, was HKD 267.3 million, representing a 71.4% increase from HKD 155.9 million in 2020[9]. - The company achieved a profit before tax of HKD 13.0 million, compared to a profit of HKD 1.2 million in the previous year[9]. - The gross profit rose by approximately HKD 14.7 million or 53.5% from HKD 27.5 million in 2020 to HKD 42.2 million in 2021, although the gross margin decreased from 17.7% to 15.8% due to rising material costs[25]. - The company recorded a profit of approximately HKD 12.2 million for the year ended December 31, 2021, compared to HKD 1.2 million in the previous year[29]. - Sales costs increased by approximately HKD 96.6 million or 75.2% from HKD 128.4 million in 2020 to HKD 225.0 million in 2021, aligning with revenue growth[25]. - Administrative expenses rose by approximately HKD 2.0 million or 10.9% from HKD 18.3 million in 2020 to HKD 20.3 million in 2021, mainly due to increased costs associated with revenue growth[28]. Assets and Liabilities - Total assets increased to HKD 177.7 million in 2021, up from HKD 128.9 million in 2020, marking a 37.8% growth[9]. - Total liabilities rose to HKD 108.1 million, an increase of 48.5% from HKD 72.9 million in 2020[9]. - The group's net asset value reached approximately HKD 69.6 million as of December 31, 2021, compared to HKD 55.9 million as of December 31, 2020, reflecting a growth of 24.8%[35]. - Current assets amounted to approximately HKD 161.1 million as of December 31, 2021, up from HKD 117.8 million as of December 31, 2020, indicating a 36.8% increase[37]. - The group maintained a current liability of approximately HKD 106.2 million as of December 31, 2021, compared to HKD 72.9 million as of December 31, 2020, which is an increase of 45.5%[37]. Product Performance - Transformers continued to be the flagship product, accounting for approximately 50.1% of total sales in 2021, down from 53.5% in 2020[15]. - Electronic components and other products represented about 48.2% of total sales in 2021, up from 40.0% in 2020[15]. - Sales of transformers reached HKD 133.9 million in 2021, up from HKD 83.4 million in 2020, representing a significant increase[19]. - Revenue from external customers in Europe increased significantly from HKD 47.7 million in 2020 to HKD 94.5 million in 2021[21]. Strategic Initiatives - The company plans to enhance production efficiency to reduce overall production costs amid rising raw material prices[11]. - The R&D team will focus on product upgrades and breakthroughs to drive future growth[11]. - The company aims to increase exposure through various online marketing channels to explore business development opportunities[11]. - The group has observed a growing demand for clean energy equipment due to global policies favoring renewable and sustainable development, leading to increased orders from new customer segments[34]. Governance and Compliance - The company has adhered to the corporate governance code throughout the fiscal year ending December 31, 2021, demonstrating commitment to regulatory compliance[67]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[69]. - The company has implemented a code of conduct for securities trading that exceeds the requirements set by the GEM listing rules, ensuring ethical trading practices[68]. - The company is committed to maintaining transparency and accountability in its financial reporting and governance practices[91]. Risk Management - The company emphasizes the importance of maintaining an effective risk management and internal control system for achieving business objectives and sustainable growth[118]. - The risk management framework is designed based on five components: control environment, risk assessment, control activities, information and communication, and monitoring[119]. - The board is responsible for establishing the company's business strategy and assessing the nature and extent of risks the company is willing to take to achieve its strategic objectives[124]. - The company conducts annual reviews of the effectiveness of its risk management and internal control systems, including self-assessment results from senior management[128]. Shareholder Communication - The company aims to provide high levels of disclosure and financial transparency to shareholders and investors through quarterly, interim, and annual reports[137]. - The board encourages shareholders to attend the annual general meeting and ensures that external auditors are present to answer questions related to the audit process[137]. - The company has established multiple communication channels with shareholders, including publishing reports and holding annual general meetings[137]. Dividend Policy - The company did not declare a final dividend for the fiscal year ending December 31, 2021[157]. - The company has adopted a dividend policy that requires maintaining sufficient cash reserves to meet operational needs and future business growth[158]. - The company has not set a predetermined dividend payout ratio and will consider various factors before declaring dividends[159]. Share Option Plan - The share option plan allows for a maximum of 20,000,000 shares to be granted, which is 10% of the total issued shares following the completion of the placement[184]. - The total number of shares that may be issued upon exercise of options granted under the share option plan cannot exceed 30% of the total issued shares at any time[184]. - The exercise price for shares under the share option plan must not be less than the higher of the closing price on the date of grant or the average closing price for the five trading days immediately preceding the date of grant[186].

Financial Performance - The group's revenue increased by approximately HKD 74.24 million or 70.09%, from about HKD 105.92 million for the nine months ended September 30, 2020, to approximately HKD 180.16 million for the nine months ended September 30, 2021[14]. - The company recorded a profit of approximately HKD 8.55 million for the nine months ended September 30, 2021, compared to a profit of HKD 0.20 million for the same period in 2020, representing a significant increase[18]. - Revenue for the nine months ended September 30, 2021, was approximately HKD 180.16 million, up 70.25% from HKD 105.93 million in the same period of 2020[25]. - Gross profit for the nine months ended September 30, 2021, was approximately HKD 30.21 million, an increase of 62.50% from HKD 18.60 million in the previous year[25]. - Customer contract revenue for the nine months ended September 30, 2021, was HKD 180,155,000, up 70.0% from HKD 105,925,000 in the same period of 2020[33]. - For the nine months ended September 30, 2021, the revenue from transformer sales was HKD 93,160,000, an increase of 55.5% compared to HKD 59,844,000 in the same period of 2020[33]. - The revenue from electronic components sales reached HKD 83,685,000 for the nine months ended September 30, 2021, representing a 91.3% increase from HKD 43,744,000 in the previous year[33]. - The revenue from sales of switching power supplies was HKD 2,979,000 for the nine months ended September 30, 2021, an increase of 52.5% from HKD 1,951,000 in the same period of 2020[33]. - For the nine months ended September 30, 2021, the company reported a profit attributable to owners of HKD 8,554,000, a significant increase from HKD 200,000 for the same period in 2020, representing a growth of 4177%[46]. Cost and Expenses - The sales cost rose by approximately HKD 62.61 million or 71.69%, from about HKD 87.33 million to approximately HKD 149.94 million during the same period[14]. - Sales and distribution expenses increased by approximately HKD 1.29 million or 27.16%, from HKD 4.75 million to HKD 6.04 million for the nine months ended September 30, 2021[17]. - Administrative expenses rose by approximately HKD 1.11 million or 8.06%, from HKD 13.78 million to HKD 14.89 million for the same period[17]. - Financing costs increased by approximately HKD 0.28 million or 24.35%, from HKD 1.15 million to HKD 1.43 million for the nine months ended September 30, 2021[17]. - The total employee costs, including directors' remuneration, amounted to HKD 30,790,000 for the nine months ended September 30, 2021, compared to HKD 21,409,000 in the same period of 2020, reflecting a 43.8% increase[39]. - Research and development expenses for the nine months ended September 30, 2021, were HKD 2,354,000, which is a 43.8% increase from HKD 1,636,000 in the same period of 2020[39]. Market and Sales Analysis - Transformers accounted for approximately 51.71% of the group's sales for the nine months ended September 30, 2021, down from 56.50% in the same period of 2020[9]. - Electronic components represented about 46.45% of sales for the nine months ended September 30, 2021, up from 41.30% in the same period of 2020[9]. - The geographical breakdown of revenue shows that sales in China reached HKD 40,149,000 for the nine months ended September 30, 2021, up from HKD 32,822,000 in the same period of 2020, a growth of 22.4%[36]. Strategic Initiatives - The company plans to establish an additional production line by the end of the fiscal year to meet the growing customer demand following the establishment of a new production line in July 2021[22]. - The management is focusing on maintaining sufficient buffer inventory and strengthening business relationships to sustain competitive advantages amid supply chain uncertainties[22]. - The company continues to advertise in well-known industry magazines to promote its products despite restrictions on traditional exhibitions[13]. - The company maintained close communication with existing customers to follow up on revised delivery schedules[13]. Risk Management and Governance - The company has established a risk management committee to oversee risk governance structures and hedging policies, including copper futures purchasing activities[66]. - The board believes that integrating core elements of good corporate governance into the management structure and internal control procedures helps balance the interests of shareholders, customers, and employees[67]. - The company confirms compliance with the corporate governance code as of September 30, 2021[68]. - The company has adopted a code of conduct for directors regarding securities transactions, which is more lenient than the GEM Listing Rules[61]. Taxation and Dividends - The company did not make any provisions for Hong Kong profits tax or Chinese corporate income tax for the nine months ended September 30, 2021, due to sufficient prior tax losses to offset taxable profits[41][42]. - The tax rate for the Chinese subsidiaries was 25% for the nine months ended September 30, 2021[42]. - No dividends were declared or proposed for the nine months ended September 30, 2021, consistent with the same period in 2020[43]. Shareholder Information - The company’s major shareholder, Mr. Zhong Zhiheng, holds 63.0% of the shares, while Mr. Zhong Tiancheng holds 7.0%[49]. - The company has a total of three executive directors and three independent non-executive directors as of the report date[69]. - No directors or controlling shareholders have any business that directly or indirectly competes with the company's business as of September 30, 2021[63]. Compliance and Audit - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial performance for the nine months ended September 30, 2021, and found no objections to the accounting treatments adopted by the company[64]. - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2021, with no significant impact on its accounting policies or financial statements[30]. - The company has not issued, exercised, or cancelled any share options under the share option scheme during the nine months ended September 30, 2021[57]. - There were no significant events after the reporting period up to the date of this report[60]. - The company did not repurchase any of its own shares during the period from January 1, 2021, to September 30, 2021[59].

Financial Performance - The group's revenue increased by approximately HKD 50.89 million or 77.93%, from about HKD 65.30 million for the six months ended June 30, 2020, to approximately HKD 116.19 million for the six months ended June 30, 2021[14]. - The gross profit rose significantly by approximately HKD 9.72 million or 85.19%, from about HKD 11.41 million to approximately HKD 21.13 million, with a gross margin increase from 17.47% to 18.19%[14]. - The group recorded a profit of approximately HKD 7.37 million for the six months ended June 30, 2021, compared to a loss of approximately HKD 0.39 million in the previous period[18]. - The group achieved a net profit of HKD 7,370,000 for the six months ended June 30, 2021, compared to a loss of HKD 393,000 in the same period of 2020[57]. - The group recorded a profit before tax of HKD 7.37 million for the six months ended June 30, 2021, compared to a loss of HKD 0.39 million in the same period of 2020[39]. Sales and Revenue Breakdown - Transformer sales accounted for approximately 49.51% of total sales for the six months ended June 30, 2021, down from 57.55% in the same period of 2020[9]. - Electronic components represented about 48.63% of total sales for the six months ended June 30, 2021, up from 40.13% in the same period of 2020[9]. - Revenue from transformer sales of HKD 57,527,000 for the six months ended June 30, 2021, an increase of 53% compared to HKD 37,581,000 in the same period of 2020[51]. - Revenue from electronic components sales reached HKD 56,500,000 for the six months ended June 30, 2021, up 116% from HKD 26,206,000 in the previous year[51]. - The group reported total customer contract revenue of HKD 116,187,000 for the six months ended June 30, 2021, an increase of 78% from HKD 65,298,000 in the previous year[51]. Cost and Expenses - The cost of sales increased by approximately HKD 41.17 million or 76.40%, from about HKD 53.89 million to approximately HKD 95.06 million, consistent with revenue growth[14]. - Sales and distribution expenses increased by approximately HKD 0.65 million or 20.31% to about HKD 3.85 million for the six months ended June 30, 2021, due to increased shipping and transportation costs[17]. - Administrative expenses rose by approximately HKD 0.70 million or 7.73% to about HKD 9.75 million for the six months ended June 30, 2021, attributed to increased employee costs and other expenses[18]. - Financing costs increased by approximately HKD 115,000 or 15.14% to about HKD 875,000 for the six months ended June 30, 2021, mainly due to accounting recognition of lease interest[18]. - The total employee costs (excluding directors' remuneration) for the six months ended June 30, 2021, were approximately HKD 19.01 million, compared to HKD 12.79 million for the same period in 2020[33]. Assets and Liabilities - As of June 30, 2021, the company's net asset value was approximately HKD 63.78 million, up from HKD 55.94 million as of December 31, 2020[24]. - The total assets as of June 30, 2021, amounted to HKD 135.02 million, an increase from HKD 117.81 million as of December 31, 2020[41]. - The current ratio as of June 30, 2021, was approximately 1.59, indicating a stable liquidity position[25]. - Total trade receivables as of June 30, 2021, amounted to HKD 42,649,000, up from HKD 33,232,000 in December 2020, reflecting a growth of 28.4%[61]. - Total trade payables as of June 30, 2021, reached HKD 42,247,000, an increase from HKD 34,842,000 in December 2020, indicating a rise of 21.5%[62]. Government Support and Economic Conditions - The company received government subsidies to support the manufacturing sector during the economic difficulties caused by the COVID-19 pandemic[10]. - The company maintained close communication with existing customers to follow up on revised delivery schedules, strengthening business relationships[13]. - The company has been unable to promote products through traditional exhibitions due to COVID-19 restrictions, but has continued advertising in industrial magazines[13]. - The company is committed to ensuring a healthy work environment for employees amid the ongoing pandemic[13]. - The company maintains a conservative outlook due to ongoing economic uncertainties and anticipates potential increases in material costs[21]. Employee and Management Information - The group employed approximately 405 employees as of June 30, 2021, down from 432 employees as of December 31, 2020[33]. - The remuneration for directors and key management personnel for the six months ended June 30, 2021, was HKD 1,080,000, compared to HKD 858,000 for the same period in 2020, showing a growth of 26%[69]. - The group did not recognize any tax provisions for Hong Kong profits tax due to sufficient prior tax losses to offset taxable profits for the period[55]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial results for the six months ended June 30, 2021[90]. - The company confirmed compliance with the corporate governance code during the period from January 1, 2021, to June 30, 2021[93]. - There were no arrangements that caused directors or senior management to hold any interests in the company's shares or related securities during the reporting period[84]. - The company adopted a code of conduct for securities transactions by directors that is more lenient than the GEM Listing Rules[87]. - No directors or controlling shareholders had any business that directly or indirectly competed with the group during the reporting period[89].