Revenue and Profitability - The group's revenue increased by approximately HKD 32.6 million or 130.6% year-on-year, reaching about HKD 57.5 million for the three months ended March 31, 2021[14]. - Revenue for the three months ended March 31, 2021, was approximately HKD 57,542,000, an increase of 130.5% compared to HKD 24,956,000 for the same period in 2020[24]. - The company recorded a profit of approximately HKD 4,429,000 for the three months ended March 31, 2021, compared to a loss of HKD 2,330,000 in the same period of 2020[24]. - Basic earnings per share for the three months ended March 31, 2021, was HKD 2.21, compared to a loss per share of HKD 1.17 in the same period of 2020[24]. - The group reported a pre-tax profit of HKD 2,21,000 for the three months ended March 31, 2021, compared to a loss of HKD 1,17,000 in the same period of 2020[40]. Cost and Expenses - The sales cost rose by approximately HKD 24.8 million or 116.8%, totaling about HKD 46.1 million for the same period[14]. - Administrative expenses rose by approximately HKD 0.71 million or 16.1% to HKD 5.1 million, primarily due to increased employee costs and travel expenses[17]. - Sales and distribution expenses increased by approximately HKD 0.55 million or 39.6% to HKD 2.0 million, driven by higher transportation costs due to increased sales volume[17]. - Financing costs increased by approximately HKD 38,000 or 9.7% to HKD 429,000 due to accounting recognition of lease interest expenses[18]. - Research and development expenses increased to HKD 828,000, up 57.8% from HKD 525,000 in the previous year[38]. - Employee costs, including directors' remuneration, rose to HKD 3,405,000, compared to HKD 2,881,000 in the same period last year, reflecting an increase of 18.1%[38]. Sales Performance - Transformer sales accounted for approximately 46.5% of total sales, down from 56.4% in the same period last year[9]. - Electronic components represented about 51.3% of total sales, up from 41.2% year-on-year[9]. - Transformer sales contributed HKD 26,779,000, up 90.1% from HKD 14,076,000 in the previous year, while electronic components sales rose to HKD 29,536,000 from HKD 10,276,000, marking an increase of 187.5%[33]. - The group’s revenue from external customers in Europe reached HKD 12,524,000, a substantial increase of 99.5% from HKD 6,285,000 in the previous year[35]. - The group’s total revenue from China was HKD 10,732,000, up 25.0% from HKD 8,586,000 in the previous year[35]. Government Support and Incentives - Other income surged by approximately HKD 383,000 or 1,608.6%, reaching about HKD 407,000, primarily due to increased government incentives[15]. - The group received approximately HKD 400,000 in subsidies from the Hong Kong government’s anti-epidemic fund[15]. Operational Efficiency - Gross profit increased by approximately HKD 7.8 million or 209.6%, amounting to about HKD 11.5 million, with a gross margin improvement from 14.8% to 19.9%[14]. - The operating profit margin improved due to increased production scale and optimized quality control processes[10]. - The company observed rising copper prices and is focused on improving production efficiency to reduce overall production costs[10]. Future Outlook - The management anticipates long-term economic stagnation below pre-pandemic levels, with potential increases in material costs due to global debt accumulation[21]. - The company is focusing on developing clean energy equipment in response to rising demand for sustainable products[21]. - Management is confident in capturing post-pandemic opportunities for long-term sustainable growth[22]. Corporate Governance and Compliance - The audit committee reviewed the unaudited consolidated financial performance for the three months ended March 31, 2021, and found no disagreement with the accounting treatment adopted by the company[55]. - The company confirmed compliance with the corporate governance code during the reporting period and up to the report date[58]. Dividends and Share Options - The group did not declare an interim dividend for the three months ended March 31, 2021, consistent with the previous year[39]. - No dividends were recommended for the three months ended March 31, 2021, consistent with the previous year[47]. - No share options were granted, exercised, or cancelled under the share option scheme during the period from January 1, 2021, to March 31, 2021[48]. - No purchase, sale, or redemption of listed securities occurred by the company or its subsidiaries during the reporting period[49]. Assets and Taxation - Non-current assets as of March 31, 2021, totaled HKD 15,649,000, an increase from HKD 12,637,000 in 2020[35]. - The group has not recognized deferred tax assets due to uncertainty in future profit sources, with unutilized tax losses amounting to approximately HKD 2,666,000 as of March 31, 2021[39].

Financial Performance - Total revenue for the fiscal year ended December 31, 2020, was HKD 155.935 million, a decrease from HKD 164.209 million in 2019, representing a decline of approximately 5.5%[9] - The company reported a profit before tax of HKD 1.195 million for 2020, compared to a loss of HKD 1.942 million in 2019, indicating a turnaround in profitability[9] - The group's revenue decreased from approximately HKD 164.2 million in 2019 to approximately HKD 155.9 million in 2020, a decline of about 5.1%[24] - The cost of sales decreased from approximately HKD 137.6 million in 2019 to approximately HKD 128.4 million in 2020, a reduction of about 6.7%[24] - Gross profit increased from approximately HKD 26.6 million in 2019 to approximately HKD 27.5 million in 2020, an increase of about 3.4%[24] - The gross profit margin improved from 16.2% in 2019 to 17.7% in 2020[24] - Other income increased by approximately 142.9%, from about HKD 0.7 million in 2019 to approximately HKD 1.7 million in 2020, mainly due to government subsidies[25] - The company recorded a net profit of approximately HKD 1.2 million in 2020, compared to a net loss of approximately HKD 1.9 million in 2019[28] Assets and Liabilities - Total assets increased to HKD 128.854 million in 2020 from HKD 105.941 million in 2019, reflecting a growth of approximately 21.6%[9] - Total liabilities rose to HKD 72.916 million in 2020, up from HKD 53.840 million in 2019, marking an increase of about 35.4%[9] - Current assets amounted to approximately HKD 117.8 million as of December 31, 2020, compared to HKD 92.5 million on December 31, 2019, reflecting a significant increase of 27.4%[35] - The company's current liabilities were approximately HKD 72.9 million as of December 31, 2020, up from HKD 53.5 million on December 31, 2019, indicating a rise of 36.3%[35] - As of December 31, 2020, the company's net asset value was approximately HKD 55.9 million, an increase from HKD 52.1 million on December 31, 2019, representing a growth of 7.3%[33] Operational Highlights - Transformers continued to be the flagship product, accounting for approximately 53.5% of total sales in 2020, down from 55.0% in 2019[14] - Electronic components represented about 40.0% of total sales in 2020, an increase from 34.6% in 2019[14] - The company plans to enhance product upgrades and innovations through its R&D team while increasing exposure via various online marketing channels[11] - The overall performance was maintained due to a robust and diversified business relationship foundation[11] - The company aims to explore business development opportunities despite the challenges posed by the COVID-19 pandemic[11] Cost Management - Sales and distribution expenses rose by approximately 32.3%, from about HKD 6.2 million in 2019 to approximately HKD 8.2 million in 2020[27] - Administrative expenses decreased by approximately 15.7%, from about HKD 21.7 million in 2019 to approximately HKD 18.3 million in 2020[27] - Financing costs decreased by approximately 16.7%, from about HKD 1.8 million in 2019 to approximately HKD 1.5 million in 2020[28] - The total employee cost for the year ended December 31, 2020, was approximately HKD 31.1 million, down from HKD 33.4 million for the year ended December 31, 2019, reflecting a decrease of 6.9%[44] Governance and Management - The executive team includes experienced professionals with backgrounds in finance, engineering, and market operations, enhancing the company's strategic capabilities[53][55][56] - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[67] - The company has adhered to the corporate governance code as stipulated in the GEM listing rules, ensuring proper regulation of its operations and decision-making processes[64][65] - The financial director has extensive experience in accounting and finance, contributing to the company's financial oversight and management[60] - The company has implemented a code of conduct for securities trading that is more lenient than the GEM listing rules, ensuring compliance and ethical trading practices[66] Risk Management - The company has a risk management framework that includes independent assessments and regular self-evaluations[130] - The risk management procedures include identifying, analyzing, rating risks, and prioritizing actions, along with developing action plans and monitoring procedures[126] - The company has established a risk register to document and track identified risks and monitoring measures[126] - The board is responsible for overseeing the effectiveness of the risk management and internal control systems, approving policies, and monitoring significant risks[121] - The company emphasizes the importance of risk awareness among all employees and integrates risk management into daily business activities[118] Market and Customer Relations - The company actively participates in trade fairs and exhibitions to promote new products and strengthen marketing efforts[131] - The company has established online sales channels to maintain competitiveness and improve customer service[131] - The company implemented an incentive program to encourage sales personnel to expand the customer base[136] - The top five customers accounted for approximately 53.5% of the company's revenue, up from 42.1% in 2019[136] Compliance and Reporting - The company aims to provide high levels of disclosure and financial transparency to shareholders and investors through quarterly, interim, and annual reports[155] - The company has established multiple communication channels with shareholders, including annual general meetings and updates on its website[155] - The company has complied with GEM listing rules regarding the effectiveness of its financial reporting procedures[152] - The group has established a compliance advisory role to ensure adherence to GEM listing rules, with no significant changes affecting the group during the year[146] Dividend Policy - The company did not propose a final dividend for the year ended December 31, 2020[175] - The board will consider various factors, including operational and financial performance, cash flow, and future profitability when deciding on dividends[178] - The board may declare dividends in cash or other means deemed appropriate[180] - The company has adopted a dividend policy to maintain sufficient cash reserves for operational needs and future business growth[176]

Financial Performance - The group's revenue for the nine months ended September 30, 2020, decreased by approximately HKD 18.62 million or 14.95% to about HKD 105.92 million, compared to approximately HKD 124.54 million for the same period in 2019[14] - The sales cost for the nine months ended September 30, 2020, decreased by approximately HKD 17.15 million or 16.42% to about HKD 87.33 million, compared to approximately HKD 104.47 million for the same period in 2019[14] - The group's gross profit for the nine months ended September 30, 2020, decreased by approximately HKD 1.47 million or 7.31% to about HKD 18.60 million, with a gross profit margin increasing from 16.11% to 17.56%[15] - Revenue for the nine months ended September 30, 2020, was approximately HKD 105.93 million, a decrease from HKD 124.54 million in the same period of 2019, representing a decline of about 14.94%[25] - Gross profit for the nine months ended September 30, 2020, was approximately HKD 18.60 million, down from HKD 20.07 million in 2019, reflecting a decrease of about 7.39%[25] - The company reported a pre-tax loss of HKD 20,359,000 for the nine months ended September 30, 2020, compared to a loss of HKD 22,245,000 in 2019[41] - For the nine months ended September 30, 2020, the company reported a profit attributable to shareholders of HKD 200,000, compared to a loss of HKD 2,523,000 for the same period in 2019[47] - The basic earnings per share for the nine months ended September 30, 2020, was HKD 0.001, while the loss per share for the same period in 2019 was HKD 0.0126[47] Sales and Market Performance - Transformer sales accounted for approximately 56.50% of the group's total sales for the nine months ended September 30, 2020, up from 46.35% for the same period in 2019[9] - The group experienced a recovery in sales during the recent quarter, with revenue for the three months ended September 30, 2020, increasing by approximately HKD 4.97 million or 13.94% to about HKD 40.63 million, compared to approximately HKD 35.65 million for the same period in 2019[14] - Transformer sales generated HKD 59,844,000 for the nine months ended September 30, 2020, up 3.9% from HKD 57,722,000 in 2019[34] - Sales of electronic components and enameled copper wire reached HKD 43,744,000, an increase of 4% from HKD 42,073,000 in the previous year[34] - Revenue from external customers in China for the nine months was HKD 32,822,000, a decrease of 23% from HKD 42,587,000 in 2019[37] Cost Management - The group maintained stable material costs during the review period, focusing on improving production efficiency to reduce overall production costs[10] - Administrative expenses decreased by approximately HKD 3.12 million or 18.47% to about HKD 13.78 million for the nine months ended September 30, 2020, mainly due to reduced employee costs and travel expenses[18] - Financing costs decreased by approximately HKD 0.19 million or 14.47% to about HKD 1.15 million for the nine months ended September 30, 2020, due to reduced bank charges for short-term services[18] - Total employee costs, including directors' remuneration, were HKD 21,409,000 for the nine months ended September 30, 2020, down from HKD 23,304,000 in 2019[41] Government Support and Subsidies - The group received government subsidies to support the manufacturing sector during the economic difficulties caused by the COVID-19 pandemic[10] - Other income increased by approximately HKD 1.06 million or 313.48% to about HKD 1.40 million for the nine months ended September 30, 2020, primarily due to increased financial support from government departments[17] - The company recognized government grants of HKD 1,170,000 for the nine months ended September 30, 2020, compared to HKD 21,000 in 2019[38] Operational Adjustments - The group streamlined manufacturing processes and optimized quality control to enhance overall productivity[10] - The group has been actively exploring digital channels to maintain connections with existing and potential customers[13] - The group continued its advertising and marketing activities to promote its products, despite the cancellation of most physical marketing events due to COVID-19 restrictions[13] - The group maintained sufficient inventory buffers to address demand and supply chain fluctuations during the pandemic[22] Future Outlook - Management anticipates a continued recovery in orders for products, particularly inverters, in the next quarter[22] - The group is focusing on the design enhancement of electronic health products and is confident in accelerating business growth once market demand begins to recover[22] Compliance and Governance - The company did not report any significant impact from the adoption of new and revised Hong Kong Financial Reporting Standards[31] - The audit committee, consisting of three independent non-executive directors, reviewed the financial results without objections[65] - The board confirmed compliance with the corporate governance code during the nine months ended September 30, 2020[67] - The company adopted the principles and provisions of the corporate governance code as per GEM listing rules[66] - No circumstances were identified that would require disclosure under GEM listing rules as of September 30, 2020[68] Shareholder Information - The company did not declare or propose any dividends for the nine months ended September 30, 2020, consistent with the previous year[44] - There was no provision for Hong Kong profits tax or China corporate income tax for the nine months ended September 30, 2020, due to the absence of taxable profits[43] - The company has sufficient carried forward tax losses to offset taxable profits for the nine months ended September 30, 2020[43] - The tax rate for the company's Chinese subsidiaries was 25% as per the Corporate Income Tax Law of the People's Republic of China[43] - No share options were granted, exercised, or cancelled under the share option scheme during the nine months ended September 30, 2020[56] - The company did not repurchase any of its own shares during the period from January 1, 2020, to September 30, 2020[59] - There were no changes in the board of directors or their information since the company's interim report date[54] - The company reported unaudited consolidated financial performance for the nine months ended September 30, 2020[65]

Financial Performance - The group's revenue decreased by approximately HKD 23.59 million or 26.54%, from about HKD 88.89 million for the six months ended June 30, 2019, to about HKD 65.30 million for the six months ended June 30, 2020[14]. - The gross profit decreased by approximately HKD 3.30 million or 22.45%, from about HKD 14.71 million for the six months ended June 30, 2019, to about HKD 11.41 million for the six months ended June 30, 2020[14]. - The group recorded a loss of approximately HKD 0.39 million for the six months ended June 30, 2020, compared to a loss of approximately HKD 0.37 million for the same period in 2019[18]. - The net profit for the six months ended June 30, 2020, was a loss of HKD 394,000, compared to a loss of HKD 372,000 in the same period of 2019[38]. - Total customer contract revenue for the six months ended June 30, 2020, was HKD 65,298,000, down 26.6% from HKD 88,888,000 in the same period of 2019[49]. Cost and Expenses - The sales cost decreased by approximately HKD 20.29 million or 27.35%, from about HKD 74.18 million for the six months ended June 30, 2019, to about HKD 53.89 million for the six months ended June 30, 2020[14]. - Administrative expenses decreased by approximately HKD 2.23 million or 19.77% to about HKD 9.05 million for the six months ended June 30, 2020, mainly due to reduced employee costs and travel expenses[17]. - Financing costs decreased by approximately HKD 149,000 or 16.40% to about HKD 760,000 for the six months ended June 30, 2020, primarily due to reduced bank charges for short-term leasing services[18]. - The group incurred research and development expenses of HKD 1,042,000 for the six months ended June 30, 2020, down from HKD 1,325,000 in 2019, reflecting a decrease of 21.4%[55]. - Total remuneration for directors and key management personnel for the six months ended June 30, 2020, was HKD 858,000, a decrease of 13.9% compared to HKD 997,000 in the same period of 2019[67]. Revenue Sources - Transformers continued to be the flagship product, accounting for approximately 57.55% of the group's sales for the six months ended June 30, 2020, compared to 44.06% for the same period in 2019[9]. - The contribution of switching power supplies to the group's sales was approximately 1.72% for the six months ended June 30, 2020, down from 10.76% for the same period in 2019[9]. - Electronic components and other products accounted for approximately 40.13% of the group's sales for the six months ended June 30, 2020, compared to 34.93% for the same period in 2019[9]. - The group's revenue from transformer sales for the six months ended June 30, 2020, was HKD 37,581,000, a decrease of 4.0% compared to HKD 39,166,000 in the same period of 2019[49]. - Sales of switch power supplies dropped significantly to HKD 1,125,000 for the six months ended June 30, 2020, down 88.2% from HKD 9,561,000 in 2019[49]. Government Support and Market Conditions - The group received government subsidies to support the manufacturing sector during the economic difficulties caused by the COVID-19 pandemic[10]. - Other income increased by approximately HKD 0.88 million or 314.29% to about HKD 1.16 million for the six months ended June 30, 2020, primarily due to increased government subsidies[15]. - The management is actively monitoring market conditions and is confident in accelerating business growth once market demand begins to recover[21]. Assets and Liabilities - As of June 30, 2020, the group's net asset value was approximately HKD 51.17 million, compared to approximately HKD 52.10 million as of December 31, 2019[22]. - The current ratio as of June 30, 2020, was approximately 1.73, with current assets of about HKD 94.35 million and current liabilities of about HKD 54.50 million[22]. - The group maintained a cash and bank balance of approximately HKD 7.01 million as of June 30, 2020, compared to approximately HKD 3.01 million as of December 31, 2019[24]. - Trade receivables as of June 30, 2020, amounted to HKD 29,465,000, a decrease from HKD 31,853,000 as of December 31, 2019[60]. - The total assets less current liabilities as of June 30, 2020, were HKD 51,296,000, a slight decrease from HKD 52,424,000 as of December 31, 2019[40]. Employment and Workforce - The group had approximately 390 employees as of June 30, 2020, down from approximately 490 employees as of December 31, 2019[32]. Corporate Governance - The company has adopted a code of conduct for directors regarding securities trading, which is more lenient than the GEM listing rules[86]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial performance for the six months ended June 30, 2020[89]. - The company has complied with the corporate governance code as per GEM listing rules during the reporting period[93]. - The board believes that integrating core elements of good corporate governance into the management structure and internal control procedures benefits shareholders, customers, and employees[92]. Shareholder Information - The group did not declare any dividends for the interim period ended June 30, 2020, and 2019[58]. - As of June 30, 2020, Mr. Zhong Zhiheng held a controlled corporation interest of 126,000,000 shares, representing 63.0% of the company's equity[72]. - The company has a share option scheme in place, allowing for a maximum of 20,000,000 shares to be issued, which is 10% of the total issued shares following the completion of a placement[78]. - No share options were granted, exercised, or cancelled under the share option scheme during the period from January 1, 2020, to June 30, 2020[81].

Revenue Performance - The group's revenue decreased by approximately HKD 18.02 million or 41.92%, from about HKD 42.97 million for the three months ended March 31, 2019, to approximately HKD 24.96 million for the three months ended March 31, 2020[14]. - Revenue for the three months ended March 31, 2020, was HKD 24.96 million, a decrease from HKD 42.97 million for the same period in 2019, representing a decline of approximately 41.93%[22]. - The group reported revenue of HKD 24,956,000 for the three months ended March 31, 2020, a decrease of 42.0% compared to HKD 42,972,000 in the same period of 2019[30]. - The group’s revenue from customers in China was HKD 8,586,000, down 32.5% from HKD 12,717,000 in the previous year[32]. Profitability - Gross profit decreased by approximately HKD 5.35 million or 59.09%, from about HKD 9.06 million for the three months ended March 31, 2019, to approximately HKD 3.70 million for the three months ended March 31, 2020[15]. - Gross profit for the three months ended March 31, 2020, was HKD 3.70 million, down from HKD 9.06 million for the same period in 2019, reflecting a decrease of approximately 59.14%[22]. - The group recorded a loss of approximately HKD 2.17 million for the three months ended March 31, 2020, compared to a profit of approximately HKD 1.44 million for the same period in 2019[18]. - The total comprehensive loss for the three months ended March 31, 2020, was approximately HKD 2.34 million, compared to a total comprehensive income of HKD 1.61 million for the same period in 2019[22]. - The group incurred a pre-tax loss of HKD 1,170,000 for the three months ended March 31, 2020, compared to a profit of HKD 1,445,000 in the same period of 2019[39]. Cost Management - Sales cost decreased by approximately HKD 12.66 million or 37.34%, from about HKD 33.92 million for the three months ended March 31, 2019, to approximately HKD 21.25 million for the three months ended March 31, 2020[14]. - Sales and distribution expenses decreased by approximately HKD 0.14 million or 9.09% to about HKD 1.40 million for the three months ended March 31, 2020, compared to HKD 1.54 million for the same period in 2019[16]. - Administrative expenses decreased by approximately HKD 1.20 million or 21.31% to about HKD 4.42 million for the three months ended March 31, 2020, compared to HKD 5.61 million for the same period in 2019[16]. - Financing costs decreased by approximately HKD 19,000 or 4.71% to about HKD 391,000 for the three months ended March 31, 2020, compared to HKD 411,000 for the same period in 2019[18]. - The group did not incur any income tax expenses for the three months ended March 31, 2020, compared to HKD 200,000 for the same period in 2019, due to losses recorded during the period[18]. Product Line Performance - The transformer product line accounted for approximately 56.40% of total sales for the three months ended March 31, 2020, compared to 50.43% for the same period in 2019[10]. - The sales percentage of switching power supplies was approximately 1.11% for the three months ended March 31, 2020, compared to 1.09% for the same period in 2019[10]. - The electronic health product series accounted for approximately 1.31% of total sales for the three months ended March 31, 2020, down from 12.13% for the same period in 2019[10]. - Transformer sales generated HKD 14,076,000, down 35.0% from HKD 21,672,000 year-on-year[30]. - Sales of electronic components decreased by 34.5% to HKD 10,276,000 from HKD 15,621,000 in the previous year[30]. Strategic Initiatives - The group continued its advertising and marketing activities to promote its products despite the cancellation of most exhibitions and physical marketing activities due to COVID-19 restrictions[11]. - The management is focused on maintaining business relationships through digital channels amid economic uncertainties caused by the COVID-19 pandemic[19]. - The group remains confident in its performance resilience supported by a diversified product portfolio, particularly in electronic health products[19]. Other Financial Information - Total employee costs, including directors' remuneration, were HKD 2,881,000, a decrease of 2.2% from HKD 2,945,000 in the previous year[35]. - The group did not recommend an interim dividend for the three months ended March 31, 2020, consistent with the previous year[38]. - The group’s non-current assets as of March 31, 2020, amounted to HKD 12,637,000, slightly up from HKD 12,101,000 in 2019[32]. - Bank interest income increased to HKD 24,000 from HKD 22,000 year-on-year[33]. - The group’s financing costs totaled HKD 391,000, a decrease of 4.9% from HKD 411,000 in the same period of 2019[33]. - No dividends were recommended for the three months ended March 31, 2020, consistent with the previous year[46]. - No share options were granted, exercised, or cancelled under the share option scheme during the period from January 1, 2020, to March 31, 2020[47]. - The company did not purchase, sell, or redeem any of its listed securities during the period from January 1, 2020, to March 31, 2020[48]. - The audit committee reviewed the unaudited condensed consolidated financial results for the three months ended March 31, 2020, and found no disagreement with the accounting treatment adopted by the company[53]. - The company has complied with the corporate governance code during the reporting period[57].

Financial Performance - Total revenue for the fiscal year ended December 31, 2019, was HKD 164,209,000, a decrease of 2.1% compared to HKD 168,905,000 in 2018[10] - The pre-tax loss for 2019 was HKD 1,942,000, an improvement from a loss of HKD 6,926,000 in 2018[10] - The net loss for the year was HKD 1,942,000, compared to a net loss of HKD 6,926,000 in the previous year, indicating a significant reduction in losses[10] - The group's revenue decreased from approximately HKD 168.9 million in 2018 to HKD 164.2 million in 2019, a decline of 2.8%[26] - The company’s financial performance and status as of December 31, 2019, are detailed in the consolidated financial statements[171] Assets and Liabilities - Total assets as of December 31, 2019, were HKD 105,941,000, a decrease from HKD 113,539,000 in 2018[11] - Total liabilities decreased to HKD 53,840,000 in 2019 from HKD 59,128,000 in 2018, reflecting improved financial stability[11] - As of December 31, 2019, the group's net asset value was approximately HKD 52.1 million, down from HKD 54.4 million in 2018[34] - Current assets were approximately HKD 92.5 million as of December 31, 2019, compared to HKD 98.6 million in 2018[37] Revenue Sources and Sales - Transformers continued to be the best-selling product, accounting for approximately 55.0% of total sales for the fiscal year[16] - New electronic health products, including electric toothbrushes, contributed approximately 9.2% to total sales, marking a new sustainable product line[16] - The sales percentage of switching power supplies was about 1.2%, slightly up from 1.1% in 2018[16] - The company focused on consolidating relationships with existing customers, resulting in a slight decline in revenue compared to the previous year[16] - The company’s revenue decreased by 2.8% due to a decline in sales to US customers and Hong Kong trading entities during the trade war[131] Cost and Profitability - Gross profit increased by approximately HKD 1.8 million or 7.3%, from about HKD 24.8 million in 2018 to approximately HKD 26.6 million in 2019, with a gross margin rise from 14.7% to 16.2%[26] - Sales and distribution expenses decreased by approximately HKD 0.5 million or 7.0%, from about HKD 6.7 million in 2018 to approximately HKD 6.2 million in 2019[29] - Administrative expenses decreased by approximately HKD 2.5 million or 10.4%, from about HKD 24.2 million in 2018 to approximately HKD 21.7 million in 2019[30] Business Strategy and Opportunities - The group is exploring new business opportunities to diversify revenue sources, particularly in construction projects in Hong Kong[26] - The group expects an increase in sales of inverters and chargers in the coming year, along with progress in upgrading electronic health products[33] - The company plans to enhance competitiveness by continuously developing new products and upgrading technology and machinery to improve production capacity and efficiency[131] - The company has established online sales channels and marketing activities to promote new products and maintain customer relationships[131] Corporate Governance - The board consists of six directors, including three executive directors and three independent non-executive directors[71] - The company has complied with the corporate governance code during the year ended December 31, 2019[69] - The board held four meetings during the year, with all executive directors attending all meetings[75][76] - The company has established an audit committee to assist the board in overseeing financial reporting, internal controls, and risk management, which held four meetings in the fiscal year ending December 31, 2019[91] - The company has adopted a code of conduct for securities trading that is less stringent than the GEM Listing Rules[70] Risk Management - The company has established a risk management and internal control system, which was reviewed and deemed sufficient and effective as of December 31, 2019[148] - The company emphasizes the importance of maintaining an effective risk management system for achieving business objectives and sustainable growth[120] - The company has engaged an independent internal control consultant to review its risk management and internal control systems[111] - The risk management committee held one meeting during the year ended December 31, 2019, to review risk management policies and internal controls[111] Employee and Management - The total employee cost for the year ended December 31, 2019, was approximately HKD 33.4 million, down from HKD 35.5 million in 2018[45] - The company has conducted regular training for employees on quality control and production facility operations to mitigate operational risks[144] - The company has established a governance framework that includes the audit committee, remuneration committee, nomination committee, and risk management committee to support board functions[86] Shareholder Communication and Dividends - The company aims to provide high levels of disclosure and financial transparency to shareholders and investors through quarterly, interim, and annual reports[152] - The board of directors does not intend to declare a final dividend for the fiscal year ending December 31, 2019[172] - The company has adopted a dividend policy to maintain sufficient cash reserves for operational needs and future business growth[173] - The company encourages shareholders to attend the annual general meeting and provides at least 20 business days' notice[152]

Financial Performance - The company's revenue for the nine months ended September 30, 2019, was approximately HKD 124.54 million, a decrease of about HKD 2.45 million or 1.93% compared to HKD 126.99 million for the same period in 2018[16] - The gross profit for the nine months ended September 30, 2019, was approximately HKD 20.07 million, an increase of about HKD 2.74 million or 15.81% from HKD 17.33 million in the same period of 2018[16] - The company recorded a loss of approximately HKD 2.52 million for the nine months ended September 30, 2019, compared to a restated loss of approximately HKD 6.75 million for the same period in 2018[20] - Basic and diluted loss per share for the nine months ended September 30, 2019, was HKD 1.26, compared to HKD 3.37 for the same period in 2018[23] - For the nine months ended September 30, 2019, the pre-tax loss was HKD 2,523,000, a significant improvement from a loss of HKD 6,751,000 in the same period of 2018, indicating a reduction of 62.7%[49] Sales and Product Performance - The sales of transformers accounted for approximately 46.35% of total sales for the nine months ended September 30, 2019, down from 56.00% in the same period of 2018[9] - The sales percentage of switching power supplies increased to approximately 9.92% for the nine months ended September 30, 2019, compared to 1.17% in the same period of 2018[9] - The new electronic healthcare product line accounted for approximately 9.96% of total sales for the nine months ended September 30, 2019, compared to no sales in the same period of 2018[9] - Sales of transformers decreased to HKD 57,722,000 for the nine months ended September 30, 2019, down 18.8% from HKD 71,113,000 in 2018[38] - Sales of switching power supplies increased significantly to HKD 12,349,000 for the nine months ended September 30, 2019, compared to HKD 1,481,000 in 2018, representing an increase of 733.5%[38] Cost Management - The sales cost decreased by approximately HKD 5.19 million or 4.73% to about HKD 104.48 million for the nine months ended September 30, 2019, from HKD 109.66 million in the same period of 2018[16] - Sales and distribution expenses decreased by approximately HKD 260,000 or 5.05% to about HKD 4.89 million for the nine months ended September 30, 2019, mainly due to reduced freight and handling fees[19] - Administrative expenses decreased by approximately HKD 1.45 million or 7.90% to about HKD 16.91 million for the nine months ended September 30, 2019, due to streamlined administrative workflows[19] - Financing costs slightly decreased by approximately HKD 170,000 or 11.26% to about HKD 1.34 million for the nine months ended September 30, 2019, attributed to lower interest on lease liabilities[20] - Research and development expenses for the nine months ended September 30, 2019, were HKD 1,992,000, down from HKD 2,505,000 in 2018, marking a decrease of 20.4%[45] Market Outlook and Strategy - The company remains cautiously optimistic about market prospects despite global economic uncertainties and political instability[10] - The company is optimistic about the progress of US-China trade negotiations and plans to actively explore transformer markets in other regions to mitigate risks associated with the US market[21] - The company aims to enhance production efficiency and reduce costs while promoting existing products and expanding overseas markets[21] Other Financial Information - Other income decreased by approximately HKD 325,000 or 50.98% to about HKD 338,000 for the nine months ended September 30, 2019, primarily due to reduced bank interest income and lower waste sales[17] - The company reported a total tax expense of HKD 200,000 for the nine months ended September 30, 2019, compared to no tax expense in the same period of 2018[46] - The total other income for the three months ended September 30, 2019, was HKD 59,000, compared to HKD 201,000 in 2018, indicating a decrease of 70.6%[42] Corporate Governance - The audit committee was established on February 2, 2016, and currently consists of three independent non-executive directors[67] - The company has complied with the corporate governance code during the nine months ended September 30, 2019[70] - There were no arrangements that caused directors or senior management to hold any interests in the company's shares or related securities during the period from January 1, 2019, to September 30, 2019[61] - The company has adopted a code of conduct for directors regarding securities trading, which is more lenient than the GEM Listing Rules[63] - There were no competitive businesses or conflicts of interest reported by directors or controlling shareholders during the nine months ended September 30, 2019[65]

Revenue and Sales Performance - The group's revenue for the six months ended June 30, 2019, showed a moderate growth compared to the same period last year, driven by the sales of new electronic health products[12]. - The group reported a decrease in sales of other electronic components during the review period compared to the same period in 2018[12]. - The group's revenue increased by approximately HKD 7.53 million or 9.26%, from approximately HKD 81.36 million for the six months ended June 30, 2018, to approximately HKD 88.89 million for the six months ended June 30, 2019[17]. - Total revenue for the six months ended June 30, 2019, was HKD 88,888,000, an increase of 9.3% from HKD 81,362,000 in the same period of 2018[56]. - Sales of transformers decreased to HKD 39,166,000 for the six months ended June 30, 2019, down from HKD 44,040,000 in 2018, representing a decline of 11.7%[56]. - Sales of electronic health products reached HKD 9,110,000 for the six months ended June 30, 2019, with no sales recorded in the same period of 2018, indicating a new revenue stream[56]. Profitability and Financial Metrics - Gross profit rose by approximately HKD 3.39 million or 29.95%, from approximately HKD 11.32 million to approximately HKD 14.71 million, with the gross profit margin increasing from 13.91% to 16.55%[17]. - The group recorded a loss of approximately HKD 0.37 million for the six months ended June 30, 2019, compared to a loss of approximately HKD 4.32 million for the same period in 2018[21]. - The company recognized a total of HKD 200,000 in tax expenses for the six months ended June 30, 2019, compared to no tax expenses in the same period of 2018, indicating a shift towards profitability[59]. - The company reported a loss attributable to owners of the company of HKD 371,000 for the six months ended June 30, 2019, compared to a loss of HKD 4,338,000 for the same period in 2018, representing a 91.4% improvement[63]. Expenses and Cost Management - Administrative expenses decreased by approximately HKD 0.87 million or 7.16%, from approximately HKD 12.15 million to approximately HKD 11.28 million, due to streamlined administrative processes[20]. - Financing costs slightly decreased by approximately HKD 0.10 million or 9.90%, from approximately HKD 1.01 million to approximately HKD 0.91 million, attributed to a reduction in bank loans[21]. - The cost of goods sold for the six months ended June 30, 2019, was HKD 53,751,000, down 20.9% from HKD 67,859,000 in 2018[5]. - Research and development expenses decreased to HKD 1,325,000 for the six months ended June 30, 2019, from HKD 1,547,000 in 2018, a reduction of 14.4%[5]. Assets and Liabilities - As of June 30, 2019, the group's net asset value was approximately HKD 54.15 million, a slight decrease from approximately HKD 54.41 million as of December 31, 2018[25]. - The total assets as of June 30, 2019, amounted to HKD 105.175 million, compared to HKD 98.586 million at the end of 2018[43]. - The inventory level decreased to HKD 50.039 million as of June 30, 2019, from HKD 52.115 million at the end of 2018[43]. - Trade receivables increased to HKD 38,119,000 as of June 30, 2019, compared to HKD 28,878,000 as of December 31, 2018, reflecting a 32.1% increase[67]. - Trade payables rose to HKD 29,906,000 as of June 30, 2019, from HKD 19,678,000 as of December 31, 2018, indicating a 51.9% increase[68]. Cash Flow and Financing Activities - For the six months ended June 30, 2019, the net cash used in operating activities was HKD (3,876,000), compared to HKD (2,865,000) for the same period in 2018, indicating a decline in cash flow from operations[47]. - The net cash used in investing activities was HKD (2,432,000) for the six months ended June 30, 2019, compared to a net cash inflow of HKD 1,822,000 in 2018, reflecting a significant change in investment strategy[47]. - The net cash generated from financing activities was HKD 3,190,000 for the six months ended June 30, 2019, compared to a net cash outflow of HKD (1,522,000) in 2018, showing improved financing conditions[47]. Corporate Governance and Compliance - The company has adopted the principles and code provisions of the corporate governance code as set out in the GEM Listing Rules to ensure proper regulation of its operations and decision-making processes[100]. - The company has complied with the corporate governance code from January 1, 2019, to June 30, 2019[101]. - The audit committee, formed on February 2, 2016, currently consists of three independent non-executive directors, with the chairman being Mr. Ng Wing Cheung[97]. - The company is focused on maintaining transparency and adherence to governance standards[101]. Future Outlook and Strategic Plans - The company plans to enhance production efficiency and reduce costs while expanding its product range and exploring overseas markets[24]. - The company continues to prioritize corporate governance as a key strategy[101]. - No new products, technologies, market expansions, or acquisitions were mentioned in the provided content[101][102].

Revenue and Sales Performance - The group's revenue increased by approximately HKD 4.61 million or 12.02%, from about HKD 38.36 million for the three months ended March 31, 2018, to about HKD 42.97 million for the three months ended March 31, 2019[16]. - Revenue for the three months ended March 31, 2019, was approximately HKD 42,972, an increase from HKD 38,361 in the same period of 2018, representing a growth of about 4.20%[24]. - The group's revenue for the three months ended March 31, 2019, was HKD 42,972,000, an increase of 12.0% compared to HKD 38,361,000 for the same period in 2018[34]. - Transformer sales contributed HKD 21,672,000, up 13.3% from HKD 19,134,000 in 2018, while electronic health product sales were HKD 5,212,000, a new addition to the revenue stream[34]. - Revenue from external customers in China was HKD 12,717,000, down 9.4% from HKD 14,045,000 in 2018, while Europe saw an increase to HKD 13,441,000 from HKD 8,945,000[37]. Profitability and Gross Margin - Gross profit increased by approximately HKD 3.83 million or 73.23%, from about HKD 5.23 million for the three months ended March 31, 2018, to about HKD 9.06 million for the same period in 2019[16]. - The gross profit margin rose from 13.63% for the three months ended March 31, 2018, to 21.08% for the same period in 2019[16]. - The company recorded a profit of approximately HKD 1.45 million for the three months ended March 31, 2019, compared to a loss of about HKD 2.73 million in the same period of 2018[20]. - The group reported a pre-tax profit of HKD 1,445,000 for the three months ended March 31, 2019, compared to a loss of HKD 2,727,000 in the same period of 2018[49]. Expenses and Cost Management - Sales and distribution expenses decreased by approximately HKD 260,000 or 14.44% to about HKD 1.54 million for the three months ended March 31, 2019, mainly due to reduced freight and handling fees[19]. - Administrative expenses decreased by approximately HKD 340,000 or 5.71% to about HKD 5.61 million for the three months ended March 31, 2019, due to streamlined administrative processes[19]. - The group decided to suspend the production and sale of enameled copper wire due to low profit margins, allowing resources to be allocated to more profitable products[11]. - The group incurred research and development expenses of HKD 708,000, slightly down from HKD 738,000 in 2018[44]. Product Performance - Transformer products accounted for approximately 50.43% of the group's sales for the three months ended March 31, 2019, compared to 49.88% for the same period in 2018[10]. - The new electronic health product line contributed approximately HKD 5.21 million to sales, representing about 12.13% of total sales for the three months ended March 31, 2019[10]. - The sales percentage of switching power supplies was approximately 1.09% for the three months ended March 31, 2019, down from 1.25% for the same period in 2018[10]. - The sales percentage of other electronic components decreased to approximately 36.35% for the three months ended March 31, 2019, from 48.88% for the same period in 2018[10]. Cash Flow and Financial Position - The group's cash flow situation improved due to reduced resource allocation for raw materials[12]. - Total employee costs, including directors' remuneration, were HKD 2,945,000, an increase of 6.4% from HKD 2,769,000 in 2018[44]. - The group's bank interest income decreased to HKD 22,000 from HKD 61,000 in 2018, a decline of 63.6%[39]. - The group's total revenue from other sources was HKD 31,000, down from HKD 85,000 in 2018, indicating a decrease of 63.5%[39]. Future Outlook and Strategy - The company plans to expand its product range and improve production efficiency to reduce costs while promoting existing products and exploring overseas markets[21]. - The company expects a favorable outlook for electronic health products in the European market and aims to manufacture more similar products to meet rising demand[21]. Tax and Earnings - The income tax expense increased by approximately HKD 200,000 or 100% to HKD 200,000 for the three months ended March 31, 2019, due to profit recorded during the review period[20]. - Basic earnings per share improved to HKD 0.72 for the three months ended March 31, 2019, compared to a loss of HKD 1.36 in the same period of 2018[24]. Dividends and Corporate Governance - The group did not declare an interim dividend for the three months ended March 31, 2019, consistent with the previous year[48]. - No dividends were recommended for the three months ended March 31, 2019, consistent with the previous year[57]. - The audit committee reviewed the unaudited condensed consolidated financial results for the three months ended March 31, 2019, and found no disagreement with the accounting treatment adopted by the company[64]. - The company has complied with the corporate governance code during the period from January 1, 2019, to March 31, 2019[68].

Financial Performance - For the fiscal year ended December 31, 2018, the company's revenue was HKD 168.905 million, a decrease of 2.1% compared to HKD 173.993 million in 2017[10]. - The company reported a loss before tax of HKD 6.881 million for 2018, compared to a loss of HKD 6.737 million in 2017, indicating a worsening financial performance[10]. - Total assets as of December 31, 2018, were HKD 108.930 million, a decrease of 1.4% from HKD 110.495 million in 2017[11]. - Total liabilities increased to HKD 54.335 million in 2018, up from HKD 49.403 million in 2017, reflecting a rise of 10.4%[11]. - The group recorded a loss of approximately 6.9 million HKD for the year, slightly higher than the previous year's loss of 6.7 million HKD[26]. - The gross profit decreased by approximately 4.8 million HKD or 16.4%, resulting in a gross profit margin decline from 19.0% to 14.5% due to rising material costs[22]. - The group maintained a stable liquidity level, with bad debt provisions totaling HKD 2.8 million as of December 31, 2018, unchanged from the previous year[108]. Revenue and Sales - The company's best-selling product, transformers, accounted for approximately 54.4% of total sales for the fiscal year ended December 31, 2018, up from 53.4% in 2017[15]. - The group's revenue for the year increased by approximately 14.9 million HKD or 9.7%, reaching about 168.9 million HKD, primarily driven by product price adjustments and sales from new products[22]. - Sales of new products, including electric toothbrushes and inverters, contributed approximately 6.8 million HKD in revenue in 2018[16]. - The company's revenue increased by 9.7% in 2018, attributed to stable sales growth of newly developed products such as electronic health products and inverters[104]. - The top five customers accounted for about 47.9% of the company's revenue in 2018, up from 47.2% in 2017, indicating a high dependency on a limited customer base[105]. Product Development and Market Strategy - The company plans to continue research and development on existing and new products, focusing on both domestic and overseas markets in 2019[13]. - The company plans to continue developing new products and expanding its product range to enhance capacity and strengthen customer relationships[28]. - New products are expected to continue contributing to sales in the coming year, leveraging unique designs and functionalities in the market[27]. - The company established online sales channels and launched new products to enhance market presence and customer engagement[104]. Cost Management and Expenses - Sales expenses decreased by approximately 0.3 million HKD or 4.3%, attributed to changes in reimbursement policies for sales-related expenses[25]. - Administrative expenses decreased by approximately 4.6 million HKD or 16.0%, due to successful cost-cutting measures[25]. - The total employee cost for the year ended December 31, 2018, was approximately HKD 35.5 million, slightly up from HKD 35.4 million in the previous year, showing a marginal increase of about 0.3%[37]. Risk Management and Compliance - The company has established a risk management and internal control system, confirmed by senior management[60]. - The risk management framework includes identifying, analyzing, rating, and prioritizing risks, as well as developing action plans and detailed monitoring procedures[101]. - The company has identified four categories of risks: strategic, financial, operational, and compliance, with senior management responsible for risk identification[103]. - The audit committee supports the board in reviewing the design, implementation, and monitoring of the risk management and internal control framework, providing independent opinions annually[98]. - The company emphasizes the importance of maintaining an effective risk management and internal control system for achieving business objectives and sustainable growth[96]. Corporate Governance - The company has complied with the corporate governance code for the year ending December 31, 2018[54]. - The board consists of six members, including three executive directors and three independent non-executive directors[56]. - The company has three independent non-executive directors, meeting the requirements of the GEM Listing Rules[63]. - The chairman and CEO roles are separated, with the chairman responsible for business development and strategy formulation[66]. - The company has adopted a code of conduct for securities trading that is less stringent than the GEM Listing Rules[55]. Shareholder Communication and Transparency - The company aims to provide high levels of disclosure and financial transparency to shareholders and investors[118]. - The board of directors attended the annual general meeting to address shareholder inquiries[118]. - The company has established multiple communication channels with shareholders, including quarterly and annual reports[118]. - The company encourages shareholders to attend the annual general meeting and provides at least 20 business days' notice[118]. Stock Option Plan - The company has established a share option scheme approved by shareholders on February 2, 2016, in accordance with GEM listing rules[157]. - The stock option plan aims to incentivize eligible participants to enhance performance efficiency and retain talent beneficial for the company's long-term development[160]. - The total number of stock options that can be granted under the plan is subject to adjustments based on changes in the company's capital structure[161]. - The company must ensure compliance with GEM listing rules when granting stock options to connected persons[165]. - As of December 31, 2018, the company had no stock options granted, exercised, canceled, or expired under the stock option plan[188].