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].