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。 Hi-Level Technology Holdings Limited 揚 宇 科 技 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8113） 截至二零二三年六月三十日止六個月之 中期業績公告 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上市的公司普遍為中小型公司，在GEM買賣的證券可能較於聯交所主 板買賣的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 ...

Financial Performance - For the three months ended March 31, 2023, the group recorded revenue of HKD 312,280,000, a decrease of 34% from HKD 472,838,000 for the same period in 2022[3] - The profit attributable to owners of the company for the same period was HKD 4,182,000, down from HKD 5,038,000 in the previous year, representing a decline of 17%[3] - Revenue from the China market was HKD 225,896,000, a decrease of 35% from HKD 350,433,000 in the previous year[13] - Revenue from Hong Kong was HKD 75,332,000, down 29% from HKD 106,193,000 in the same period last year[13] - The total comprehensive income for the period was HKD 10,452,000, compared to HKD 5,038,000 in the same period of 2022, indicating an increase due to foreign exchange gains[5] - The financing costs increased to HKD 2,790,000 from HKD 1,198,000 in the previous year, reflecting a rise of 133%[5] - Gross profit for the same period was HKD 15,345,000, down 1% from HKD 15,541,000 year-on-year, with a gross margin increase from 3.3% to 4.9%[27] - The overall consumer electronics market remains weak, impacting sales and gross profit margins[22] Dividend Policy - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2023, consistent with the previous year[15] - The company does not recommend an interim dividend for the three months ended March 31, 2023, consistent with the previous year[21] Operational Costs - The company reported total employee costs of HKD 2,026,000 for the period, down from HKD 2,336,000 in the previous year[22] - Operating costs, including distribution and administrative expenses, decreased by 6% to HKD 8,613,000 from HKD 9,151,000 year-on-year[28] Strategic Focus - The company is focusing on developing products related to new energy vehicles and energy storage equipment, adapting to trends in the semiconductor industry[23] - The company is developing solutions for metaverse hardware applications, which are expected to drive future revenue growth[25] - The company has obtained distribution rights from E Ink, the world's largest supplier of electronic paper, and is developing applications for portable appliances and testing instruments[25] Corporate Governance - The company has complied with the applicable corporate governance code provisions during the reporting period[42] - All directors confirmed compliance with the code of conduct for securities transactions during the reporting period[46] - The audit committee reviewed the accounting principles and policies adopted by the group for the three months ending March 31, 2023[44] Shareholder Information - As of March 31, 2023, major shareholder Shijie holds 224,423,000 shares, representing 34.38% of the issued share capital[36] - The company raised approximately HKD 30 million from the placement of 150,000,000 shares in January 2016[38] - The revised use of proceeds includes HKD 4.6 million for upgrading the ERP system, with a remaining balance of HKD 4.0 million expected to be utilized by the end of 2024[39] - The company allocated HKD 11.2 million for expanding its ELA business, with HKD 3.7 million already utilized[39] Miscellaneous - The company did not grant any share options under the share option scheme during the reporting period[34] - The company has not purchased, sold, or redeemed any of its listed securities during the review period[41] - The board expresses gratitude to employees, shareholders, customers, suppliers, and business partners for their ongoing support[47]

Financial Performance - Revenue for 2022 was HKD 1,732,213,000, a decrease of 39.2% compared to HKD 2,847,359,000 in 2021[11] - The company reported a loss attributable to owners of HKD 68,545,000, which is an increase of 46.0% from a loss of HKD 46,954,000 in the previous year[11] - Basic loss per share was HKD 10.50, up 46.0% from HKD 7.19 in 2021[11] - The gross loss for the year ended December 31, 2022, was HKD 23,553,000, an increase of 296.5% from HKD 5,940,000 in the previous year, resulting in a gross loss margin of 1.4%[30] - The net capital debt ratio was 417.4% as of December 31, 2022, compared to 182.1% as of December 31, 2021[36] - The company reported cumulative losses of HKD 133,615,000 as of December 31, 2022, which affects the reserves available for distribution to shareholders[114] - The total comprehensive income for the year was a loss of HKD 76,282,000, which includes a foreign exchange loss of HKD 7,737,000 from overseas operations[177] - The total equity as of December 31, 2022, was HKD 27,203,000, a decrease from HKD 103,485,000 at the beginning of the year, primarily due to accumulated losses[177] Sales and Market Performance - The MID segment, including tablets and smart home speakers, experienced a significant decline in sales due to pandemic-related restrictions in mainland China[17] - Sales of automotive infotainment systems increased due to rising demand in Europe and the Americas post-lockdown[18] - Sales of video camera products improved, benefiting from early pandemic recovery in Europe and the US, with increased demand for mid-to-high-end products[19] - Sales of smartphone panel modules decreased significantly due to reduced demand in domestic and emerging markets[22] Corporate Governance - The company emphasizes high levels of corporate governance to enhance its corporate image and performance[56] - The board consists of eight directors, including executive, non-executive, and independent non-executive members[58] - The company has been listed on GEM since January 7, 2016, and has complied with applicable corporate governance code provisions[56] - The independent non-executive directors confirmed their independence in accordance with GEM Listing Rules[67] - The company has established a Nomination Committee, which includes one executive director and two independent non-executive directors[77] - The board is responsible for maintaining effective risk management and internal control systems, covering financial, operational, compliance monitoring, and risk management functions[96] Future Plans and Strategies - The company plans to expand revenue sources, enhance product diversification, and explore new suppliers in response to a challenging business environment in 2023[25] - The company is actively developing new products, including applications for electronic paper in consumer electronics and solutions for the metaverse[27] - The company plans to participate in the 2023 Hong Kong Electronics Fair and the 2023 Canton Fair to showcase new products[27] Financial Management and Reporting - The company has adopted the Hong Kong Financial Reporting Standards, ensuring compliance with all relevant regulations and disclosure requirements[194] - The financial statements are prepared based on historical cost, except for certain financial instruments measured at fair value[195] - The independent auditor's report confirms that the consolidated financial statements fairly present the financial position of the group as of December 31, 2022[156] Inventory and Cash Management - The company implemented strict inventory control measures, reducing year-end inventory levels to normal levels[16] - The carrying amount of inventory was HKD 140,771,000, net of a provision of HKD 48,727,000[160] - The company’s inventory decreased significantly by HKD 295,777,000 compared to an increase of HKD 302,579,000 in the previous year, indicating improved inventory management[182] - The cash and cash equivalents at the end of the year were HKD 91,896,000, a decrease from HKD 98,864,000 at the beginning of the year[184] Employee and Management Structure - The company is committed to providing adequate training for employees to ensure they possess the necessary qualifications and experience for their roles[97] - The remuneration policy for employees is based on merit, qualifications, skills, and job nature, with directors' remuneration determined by the remuneration committee[144] - The company has established a management structure that defines authority to assist in achieving business objectives and protecting assets from unauthorized use[96]

Financial Performance - Revenue for the nine months ended September 30, 2022, was HKD 1,324,288, a decrease of 39% compared to HKD 2,206,347 in the same period of 2021[4] - The company reported a loss attributable to owners of HKD 16,280 for the nine months ended September 30, 2022, compared to a profit of HKD 33,217 in the same period of 2021, representing a 149% decline[4] - Basic loss per share for the nine months ended September 30, 2022, was HKD (2.49), down 149% from HKD 5.09 in the same period of 2021[4] - Gross loss for the nine months ended September 30, 2022, was HKD 15,957, compared to a gross profit of HKD 69,447 in the same period of 2021[6] - Total comprehensive loss for the nine months ended September 30, 2022, was HKD 21,836, compared to total comprehensive income of HKD 33,217 in the same period of 2021[6] - Gross profit for the nine months ended September 30, 2022, was HKD 15,957,000, down 77% from HKD 69,447,000 in the same period of 2021, resulting in a gross margin decline from 3.2% to 1.2%[29] Dividends and Shareholder Information - The company did not declare an interim dividend for the nine months ended September 30, 2022, compared to an interim dividend of HKD 1.00 per share in the same period of 2021[4] - The company did not declare an interim dividend for the nine months ended September 30, 2022, compared to an interim dividend of HKD 0.01 per share in 2021[24] - As of September 30, 2022, the company had a total of 652,000,000 shares issued, with Dr. Yan holding 267,545,861 shares, representing 40.99% of the total issued shares[33] - The company’s major shareholder, Shijie, holds 224,423,000 shares, representing 34.38% of the total issued shares[39] - The company did not grant any share options under its share option scheme during the reporting period, with a maximum of 60,000,000 shares available for issuance, equivalent to approximately 9.2% of the total issued shares[37] Costs and Expenses - The company experienced a significant increase in sales costs, which amounted to HKD 1,326,331 for the nine months ended September 30, 2022, compared to HKD 2,136,900 in the same period of 2021[6] - Administrative expenses decreased to HKD 16,441 for the nine months ended September 30, 2022, from HKD 19,915 in the same period of 2021[6] - The company incurred financing costs of HKD 4,152 for the nine months ended September 30, 2022, compared to HKD 1,806 in the same period of 2021[6] - Operating costs (distribution costs and administrative expenses) for the nine months ended September 30, 2022, were HKD 27,787,000, a 9% decrease from HKD 30,387,000 in the same period of 2021[30] Market Conditions and Business Outlook - The company experienced weak customer demand and adverse business conditions, including lockdowns in China and geopolitical tensions, impacting overall performance[25] - The company noted that panel supply was excessive due to high inventory levels among tablet manufacturers, affecting the small display panel business[25] - The company plans to explore new market opportunities in Southeast Asia and India, focusing on strong IC solutions for various metaverse hardware applications[26] Foreign Exchange and Compliance - The company reported a foreign exchange loss of HKD 5,556 related to its overseas operations for the nine months ended September 30, 2022[6] - The company recorded a net foreign exchange loss of HKD 2,879,000 for the nine months ended September 30, 2022[20] - The company reported that it has complied with the GEM Listing Rules and corporate governance code, with no significant deviations noted[46] - The company has adopted the GEM Listing Rules as its own code of conduct for securities trading by directors, confirming compliance as of September 30, 2022[49] Future Plans and Allocations - The company allocated HKD 11.2 million for expanding its product range, including automotive infotainment and AI & IoT development, with a remaining balance of HKD 7.5 million expected to be utilized by the end of 2024[43] - The company plans to utilize the remaining proceeds for the development of metaverse hardware, with an expected expenditure of HKD 7.5 million by the end of 2024[43] Governance and Acknowledgments - The company’s audit committee reviewed the accounting principles and policies, internal controls, and risk management for the nine months ending September 30, 2022[48] - The board expresses gratitude to all employees for their contributions and efforts, as well as to shareholders, customers, suppliers, and business partners for their long-term support[51] - The report will be available on the Hong Kong Stock Exchange website for at least seven days from the date of publication[52]

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 1,017,045, a decrease of 34% compared to HKD 1,551,575 in 2021[6] - Profit attributable to owners of the company for the same period was HKD 13,090, down 57% from HKD 30,146 in 2021[6] - Basic earnings per share decreased to HKD 2.00, a 57% decline from HKD 4.62 in the previous year[6] - Gross profit for the six months was HKD 36,373, down from HKD 56,207, reflecting a significant decrease in gross margin[8] - Total revenue for the six months ended June 30, 2022, was HKD 1,017,045,000, down 34.4% from HKD 1,551,575,000 in the same period of 2021[20] - Revenue from the China market for the six months ended June 30, 2022, was HKD 746,326,000, representing a decrease of 22.3% compared to HKD 960,832,000 in the same period of 2021[20] - The company reported a net profit attributable to shareholders of HKD 13,090,000 for the six months ended June 30, 2022, down 56.5% from HKD 30,146,000 in the same period of 2021[29] - The total employee costs for the six months ended June 30, 2022, amounted to HKD 4,530,000, a decrease of 35.7% from HKD 7,039,000 in the same period of 2021[27] - The company incurred a net foreign exchange loss of HKD 1,688,000 for the six months ended June 30, 2022, compared to no loss in the same period of 2021[27] - The profit attributable to owners for the six months ended June 30, 2022, was HKD 13,090,000, a decrease of 57% compared to HKD 30,146,000 for the same period in 2021[52] Dividends - The company did not declare an interim dividend for 2022, compared to HKD 1.00 per share in 2021[6] - The company did not recommend an interim dividend for the six months ended June 30, 2022, compared to HKD 0.01 per share for the same period in 2021[44] - The company did not declare or pay any dividends for the financial year ended December 31, 2021[25] Assets and Liabilities - Total assets as of June 30, 2022, were HKD 696,524, a decrease from HKD 745,050 at the end of 2021[10] - Current liabilities amounted to HKD 596,694, down from HKD 647,795 in the previous year[10] - The total amount of trade and other receivables was HKD 151,147,000, slightly up from HKD 146,694,000 in 2021[31] - Trade receivables amounted to HKD 107,985,000 as of June 30, 2022, down from HKD 132,197,000 at the end of 2021[31] - Trade payables were HKD 322,430,000 as of June 30, 2022, compared to HKD 308,790,000 at the end of 2021[34] Cash Flow - The company reported a net cash inflow from operating activities, reflecting ongoing operational efficiency despite the revenue decline[8] - The net cash generated from operating activities for the six months ended June 30, 2022, was HKD 51,391,000, a significant improvement from a net cash outflow of HKD 134,516,000 in the same period of 2021[13] - The company’s financing activities resulted in a net cash outflow of HKD 50,006,000 for the six months ended June 30, 2022, compared to a net cash inflow of HKD 106,139,000 in the same period of 2021[13] - The total cash and cash equivalents at the end of the period increased to HKD 115,602,000 from HKD 113,864,000 at the beginning of the period[13] - The bank balance and cash amounted to HKD 115,602,000 as of June 30, 2022, compared to HKD 113,864,000 on December 31, 2021[54] Financial Ratios - As of June 30, 2022, the current ratio was 117%, slightly up from 115% on December 31, 2021[54] - The net debt-to-equity ratio was 102% as of June 30, 2022, down from 182% on December 31, 2021[55] - The average accounts receivable turnover days increased to 21 days in the reporting period, compared to 18 days in 2021[54] - The inventory turnover days increased to 83 days, while the average accounts payable turnover days increased to 58 days, compared to 46 days and 39 days in 2021, respectively[54] Market Conditions and Strategy - The company faced a supply surplus in the panel market, leading to downward pressure on panel prices and a decrease in panel sales compared to the previous year[46] - The company plans to strengthen inventory control and cash flow management in response to market uncertainties and price competition in the panel sector[48] Corporate Governance and Compliance - The company has complied with the GEM Listing Rules and corporate governance codes during the reporting period[78] - No purchases, sales, or redemptions of the company's listed securities were made during the review period[77] Employee and Operational Information - The total number of employees remained stable at approximately 100 as of June 30, 2022[64] - The company did not grant any share options under the share option scheme during the reporting period[70] Investments and Future Plans - The company plans to upgrade its ERP system with an allocated budget of HKD 4.6 million, of which HKD 0.6 million has been utilized[75] - For expanding the ELA business, HKD 11.2 million was allocated, with HKD 3.7 million utilized for R&D personnel expenses and equipment purchases[75] - The company allocated HKD 11.2 million for expanding product categories, with full utilization of HKD 11.2 million for automotive infotainment and drone Wi-Fi transmission[75] - The company has earmarked HKD 5.6 million for artificial intelligence and IoT development, which has been fully utilized[75] - The company plans to develop metaverse hardware with a revised allocation of HKD 7.5 million, expected to be utilized by the end of 2024[75] - General working capital was allocated HKD 3.0 million, which has been fully utilized[75] Other Financial Information - There were no significant contingent liabilities as of June 30, 2022, consistent with the previous year[57] - The group did not hold any significant investments or conduct major acquisitions or disposals during the reporting period[62]

Financial Performance - The group recorded revenue of HKD 472,838,000 for the three months ended March 31, 2022, a decrease of 34.2% compared to HKD 718,037,000 for the same period in 2021[4] - Profit attributable to owners of the company was HKD 5,038,000, down 62.7% from HKD 13,503,000 in the same period last year[4] - The gross profit margin decreased to 3.3% from 3.5% year-on-year, with gross profit of HKD 15,541,000 compared to HKD 25,290,000 in the previous year[6] - Revenue from the China market was HKD 350,433,000, a decline of 20.7% from HKD 442,094,000 in the previous year[15] - Revenue from Hong Kong decreased significantly to HKD 106,193,000 from HKD 263,383,000, representing a drop of 59.7%[15] - For the three months ended March 31, 2022, the group recorded sales revenue of HKD 472,838,000, a decrease of 34.2% compared to HKD 718,037,000 for the same period in 2021[29] - Gross profit for the same period was HKD 15,541,000, down 38.6% from HKD 25,290,000 in 2021, with a gross margin decrease from 3.5% to 3.3%[30] - The profit attributable to the company's owners for the three months ended March 31, 2022, was HKD 5,038,000, a decline of 62.7% from HKD 13,503,000 in 2021[32] Expenses and Costs - Administrative expenses decreased to HKD 5,497,000 from HKD 6,605,000, reflecting a reduction of 16.7%[6] - Financing costs increased to HKD 1,198,000 from HKD 303,000, indicating a rise of 295.7%[6] - Employee costs totaled HKD 2,336,000 for the period, down from HKD 3,106,000 in the previous year, reflecting a reduction of 24.8%[21] - Operating costs (distribution costs and administrative expenses) were HKD 9,151,000, a decrease of 8.0% from HKD 9,941,000 in the previous year, due to strict cost control measures[31] Dividends and Shareholder Information - The company did not declare an interim dividend for the three months ended March 31, 2022, consistent with the previous year[4] - The company did not recommend an interim dividend for the three months ended March 31, 2022, consistent with the previous year[19] - As of March 31, 2022, major shareholder Shijie holds 220,213,000 shares, representing 33.74% of the company's issued share capital[38] Business Operations and Market Conditions - The company experienced a soft demand for MID, ELA, smartphones, and smart speakers due to the resurgence of COVID-19 in China[26] - The company noted an increase in sales of video camera product solutions due to demand from export customers for their sports cameras and hunting devices[26] - The company anticipates a gradual recovery in sales of consumer electronics products such as STB and automotive infotainment systems as restrictions in Europe and the United States are lifted[27] Corporate Governance and Compliance - The company has complied with the corporate governance code as per GEM listing rules, with no significant deviations reported[44] - The audit committee reviewed the accounting principles and policies, internal controls, and risk management for the three months ending March 31, 2022[46] - All directors confirmed compliance with the code of conduct for securities transactions during the review period[47] Use of Proceeds - The company raised approximately HKD 30 million from the placement of 150,000,000 shares on January 7, 2016[40] - The revised use of proceeds includes HKD 4.6 million for upgrading the ERP system, with a remaining balance of HKD 4.0 million expected to be utilized by the end of 2024[41] - For expanding the ELA business, HKD 11.2 million was allocated, with actual usage of HKD 3.7 million and a remaining balance of HKD 7.5 million[41] - The company allocated HKD 11.2 million for expanding product categories, with all funds utilized for automotive infotainment and drone Wi-Fi transmission[41] - General operating funds accounted for HKD 3.0 million, fully utilized[41] - The company did not purchase, sell, or redeem any of its listed securities during the review period[43]

Financial Performance - The company reported a revenue of HKD 2,847,359,000 for the year ended December 31, 2021, representing a 26.3% increase from HKD 2,254,195,000 in 2020[11] - The company incurred a loss attributable to shareholders of HKD 46,954,000 in 2021, a decline of 246.2% compared to a profit of HKD 32,127,000 in 2020[11] - Basic loss per share was HKD 7.19 in 2021, compared to earnings of HKD 4.92 per share in 2020, marking a decrease of 246.1%[11] - For the year ended December 31, 2021, the company reported a gross loss of HKD 5,940,000, a decrease of 107.3% compared to a gross profit of HKD 81,591,000 in the previous year[26] - The total comprehensive loss for the year was HKD 42,387,000, contrasting with a comprehensive income of HKD 37,330,000 in 2020[162] - The group reported a cumulative loss of HKD 15,150,000 as of December 31, 2021, indicating a significant financial challenge[113] Dividends - The company did not recommend a final dividend for the year ended December 31, 2021, compared to a final dividend of HKD 0.025 per share in 2020[14] - The board does not recommend a final dividend for the year, compared to a dividend of HKD 0.025 per share in 2020[106] - The company paid dividends amounting to HKD 22,847,000 in 2021, significantly higher than HKD 6,528,000 in 2020[173] Inventory and Assets - The company reported a significant increase in inventory, which rose to HKD 477,692,000 in 2021 from HKD 239,680,000 in 2020, marking a 99.5% increase[165] - The consolidated financial statements reflect a total inventory value of HKD 477,692,000, with a provision for inventory of HKD 72,939,000 as of December 31, 2021[151] - The company has identified inventory provision as a key audit matter due to management's estimates and assumptions regarding obsolete and slow-moving inventory[151] Financial Position - Total assets increased to HKD 745,050,000 in 2021 from HKD 547,676,000 in 2020, indicating a growth of 36%[165] - Current liabilities rose to HKD 647,795,000 in 2021, up from HKD 384,532,000 in 2020, reflecting a 68.4% increase[165] - The company’s equity decreased to HKD 103,485,000 in 2021 from HKD 168,719,000 in 2020, a decline of 38.6%[165] Cash Flow and Financing - The net cash used in operating activities was HKD 248,406,000, a stark contrast to the net cash generated of HKD 126,834,000 in 2020[171] - The company raised bank borrowings of HKD 1,210,328,000 in 2021, an increase of approximately 87.5% from HKD 645,506,000 in 2020[173] - The net cash generated from financing activities was HKD 216,742,000, compared to a cash outflow of HKD 106,041,000 in the previous year[173] Corporate Governance - The company has a board of directors consisting of eight members, including three independent non-executive directors[56] - The company emphasizes the importance of corporate transparency and accountability, aiming for high levels of corporate governance[54] - The independent non-executive directors bring extensive experience from various sectors, enhancing the board's oversight capabilities[47] - The company has established various committees, including audit, nomination, and remuneration committees, to ensure effective governance[54] - The company has a clear delegation of authority to management while ensuring regular reporting to the board[55] Risk Management - The board has reviewed the effectiveness and adequacy of the risk management and internal control systems, finding them satisfactory for the overall group[95] - The audit identified risks related to fraud and error that could lead to significant misstatements in the financial statements[159] - The company faces risks related to compliance with local and international regulations, which could impact its operations[120] Management and Employees - The company employed approximately 100 employees in the Greater China region as of December 31, 2021[36] - The total compensation for key management personnel in the year ended December 31, 2021, ranged from HKD 1,000,000 to HKD 1,500,000 for 2 individuals, while 9 individuals received below HKD 1,000,000[58] Future Outlook - The company plans to implement a balanced business development strategy and increase the sales proportion of IC solutions through IDH services[24] - The company aims to capitalize on opportunities in the metaverse by providing efficient IC solutions for various metaverse hardware[24] Audit and Compliance - The audit opinion confirms that the consolidated financial statements present a true and fair view of the group's financial position as of December 31, 2021[147] - The company is responsible for preparing the consolidated financial statements in accordance with the Hong Kong Financial Reporting Standards[155] - The audit was conducted in accordance with the Hong Kong Auditing Standards, ensuring that the financial statements are free from material misstatement due to fraud or error[158]

Financial Performance - For the nine months ended September 30, 2021, the company reported revenue of HKD 2,206,347, representing a 34% increase compared to HKD 1,645,803 for the same period in 2020[5] - The profit attributable to owners of the company for the same period was HKD 33,217, reflecting a 44% increase from HKD 23,147 in 2020[5] - Basic earnings per share increased by 43% to HKD 5.09, up from HKD 3.55 in the previous year[5] - Gross profit for the nine months was HKD 69,447, up from HKD 56,016, indicating a strong performance in cost management[7] - The total comprehensive income for the period was HKD 33,217, consistent with the profit attributable to owners[7] - For the nine months ended September 30, 2021, the group's revenue was HKD 2,206,347,000, an increase of 34% compared to HKD 1,645,803,000 for the same period in 2020[31] - The group's gross profit for the nine months ended September 30, 2021, was HKD 69,447,000, up 24% from HKD 56,016,000 in the same period of 2020, with a gross margin decrease from 3.4% to 3.2%[32] - Profit attributable to owners of the company for the nine months ended September 30, 2021, was HKD 33,217,000, representing a 44% increase from HKD 23,147,000 in the same period of 2020[34] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 1.00 per share, compared to no dividend in the same period last year[5] - The company did not recommend the payment of an interim dividend for the nine months ended September 30, 2021[26] Operational Challenges - In the third quarter of 2021, the company's revenue decreased by 8% to HKD 654,772,000 compared to HKD 713,657,000 in the third quarter of 2020[28] - The profit attributable to owners for the third quarter of 2021 was HKD 3,071,000, a decline of 70% from HKD 10,088,000 in the third quarter of 2020[24] - The company faced challenges due to new regulations in China affecting customer procurement and power shortages impacting production and shipping[28] Strategic Focus and Future Plans - The company continues to focus on expanding its market presence and enhancing its product offerings, although specific new products or technologies were not detailed in the report[15] - The company plans to focus on reducing panel inventory levels and actively develop new IC solutions in collaboration with new and existing suppliers in the fourth quarter of 2021[29] - The sales of IC solutions are expected to stabilize in the fourth quarter of 2021, entering the traditional peak season[29] - The company has made additional inventory provisions related to potential panel price declines for the third quarter of 2021[28] Expenses and Financial Management - The company’s administrative expenses increased to HKD 19,915 from HKD 16,263, highlighting a focus on operational growth[7] - The company’s financing costs decreased significantly to HKD 1,806 from HKD 3,002, indicating improved financial management[7] - Operating costs (distribution costs and administrative expenses) for the nine months ended September 30, 2021, were HKD 30,387,000, a 14% increase from HKD 26,664,000 in the same period of 2020[33] Shareholder Information - As of September 30, 2021, major shareholders include Shijie with a 33.63% stake, holding 219,543,000 shares[42] - The company did not grant any share options under its share option scheme during the reporting period[39] - The company did not purchase, sell, or redeem any of its listed securities during the review period[48] Compliance and Governance - The company has adopted the GEM Listing Rules as its own code of conduct for securities trading by directors, confirming compliance by all directors for the nine months ending September 30, 2021[52] - The audit committee has reviewed the accounting principles, internal controls, risk management, and the unaudited consolidated financial statements for the nine months ending September 30, 2021[51] - The board expresses gratitude to all employees for their contributions and efforts, as well as to shareholders, customers, suppliers, and business partners for their long-term support[54] Investment and Budget Allocation - The company plans to upgrade its ERP system with an allocated budget of HKD 4.6 million, of which HKD 0.6 million has been utilized as of September 30, 2021[46] - The company allocated HKD 11.2 million for expanding its ELA business, with HKD 3.7 million utilized as of September 30, 2021[46] - The company has allocated HKD 11.2 million for expanding its product range, with all funds utilized for automotive infotainment and drone Wi-Fi transmission[46]

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 1,551,575, representing a 66% increase compared to HKD 932,146 for the same period in 2020[7] - Profit attributable to owners of the company for the same period was HKD 30,146, reflecting a 131% increase from HKD 13,059 in 2020[7] - Basic earnings per share increased to HKD 4.62, up 131% from HKD 2.00 in the previous year[7] - Gross profit for the six months was HKD 56,207, up from HKD 34,452, indicating improved profitability[9] - Total revenue for the six months ended June 30, 2021, was HKD 1,551,575,000, representing a 66.5% increase from HKD 932,146,000 in the same period of 2020[21] - The company recorded a net profit attributable to owners of HKD 30,146,000 for the six months ended June 30, 2021, compared to HKD 13,059,000 in the same period of 2020, marking a 130.8% increase[28] - The company’s total operating expenses increased to HKD 7,039,000 for the six months ended June 30, 2021, from HKD 5,241,000 in the same period of 2020[26] - Operating costs for the reporting period were HKD 20,405,000, up 22% from HKD 16,713,000 in 2020[48] Dividends - The company declared an interim dividend of HKD 1.00 per share, compared to no dividend in the same period last year[7] - The company paid a final dividend of HKD 0.025 per share, totaling HKD 16,319,250, approved on May 18, 2021[24] - The company declared an interim dividend of HKD 0.01 per share, compared to no dividend in the previous year[41] Assets and Liabilities - Total assets as of June 30, 2021, were HKD 830,932, compared to HKD 547,676 as of December 31, 2020[11] - Current liabilities increased to HKD 657,767 from HKD 389,995, indicating a rise in short-term obligations[11] - The company’s cash and cash equivalents decreased to HKD 112,525 from HKD 140,961, reflecting cash flow dynamics[11] - The total equity increased to HKD 182,546 from HKD 168,719, showing growth in shareholder value[11] - Trade receivables increased to HKD 247,754,000 as of June 30, 2021, up from HKD 146,126,000 as of December 31, 2020, reflecting a growth of 69%[30] - The net amount of trade and other receivables reached HKD 282,911,000, compared to HKD 166,335,000 in the previous year, indicating a 70% increase[30] - Trade payables amounted to HKD 412,295,000 as of June 30, 2021, an increase from HKD 295,407,000 as of December 31, 2020, representing a growth of 39%[33] - The total contract liabilities related to advance payments from customers increased to HKD 31,504,000 as of June 30, 2021, compared to HKD 10,279,000 in 2020[35] Cash Flow - The company reported a net loss from operating activities of HKD 134,516,000 for the six months ended June 30, 2021, compared to a net cash inflow of HKD 27,388,000 in the same period of 2020[14] - Cash and cash equivalents at the end of the period were HKD 112,525,000, a slight increase from HKD 110,817,000 at the end of June 2020[14] - The company’s financing activities generated a net cash inflow of HKD 106,139,000 for the six months ended June 30, 2021, compared to a net cash outflow of HKD 31,350,000 in the same period of 2020[14] Inventory and Operations - The company reported a significant increase in inventory to HKD 428,404 from HKD 239,680, suggesting expansion in operations[11] - The aging analysis of trade receivables shows that amounts overdue by 1 to 30 days increased to HKD 176,164,000 from HKD 96,052,000 year-on-year[31] - The company benefited from strong sales of Innolux panel solutions, particularly in the tablet and automotive application sectors, contributing to overall revenue growth[43] - Inventory turnover days were 40 days, slightly up from 41 days in 2020[51] Future Outlook - The company expects to maintain growth momentum in the second half of 2021, driven by the demand for panels used in smartphones, automobiles, and wearable devices due to the rollout of 5G networks[45] - The company is developing IC solutions for portable fast charging devices, expected to achieve significant shipment volumes by the end of 2021[45] Corporate Governance - The company has complied with the GEM Listing Rules and corporate governance code during the reporting period[76] - No purchase, sale, or redemption of the company's listed securities occurred during the review period[75] - The board expresses gratitude to all employees, shareholders, customers, suppliers, and business partners for their ongoing support[81] Shareholder Information - As of June 30, 2021, major shareholder Shijie holds 212,513,000 shares, representing 32.56% of the company's issued share capital[69]

Financial Performance - For the three months ended March 31, 2021, the group recorded revenue of HKD 718,037,000, representing a 76.2% increase from HKD 407,213,000 for the same period in 2020[5] - The profit attributable to owners of the company for the same period was HKD 13,503,000, compared to HKD 4,582,000 in the previous year, marking a 194.5% increase[5] - The gross profit for the three months ended March 31, 2021, was HKD 25,290,000, up from HKD 14,610,000 in the same period last year, reflecting a gross margin improvement[7] - The group reported a pre-tax profit of HKD 16,313,000, compared to HKD 5,451,000 for the same period in 2020, showing significant operational improvement[7] - The total comprehensive income for the period was HKD 13,503,000, which is the same as the profit attributable to owners, reflecting no other comprehensive income items[7] - The earnings per share for the period was HKD 2.07, compared to HKD 0.70 in the same period last year, indicating improved profitability on a per-share basis[7] Revenue Sources - Revenue from the China market was HKD 442,094,000, significantly increasing from HKD 228,865,000 in 2020, indicating strong market demand[15] - Revenue from Hong Kong also saw growth, reaching HKD 263,383,000 compared to HKD 164,380,000 in the previous year, representing a 60.3% increase[15] - For the three months ended March 31, 2021, the company recorded sales revenue of HKD 718,037,000, an increase of 76.3% compared to HKD 407,213,000 for the same period in 2020[29] Cost Management - The company incurred financing costs of HKD 303,000, a decrease from HKD 1,406,000 in the previous year, indicating better cost management[7] - Employee costs totaled HKD 3,106,000 for the period, compared to HKD 2,170,000 in the previous year, reflecting an increase of 43.0%[21] - Operating costs for the period were HKD 9,941,000, an increase of 24.5% from HKD 7,985,000 in 2020, primarily due to rising transportation and logistics costs[31] Dividends - The company did not declare an interim dividend for the three months ended March 31, 2021, consistent with the previous year[5] - The company did not recommend an interim dividend for the three months ended March 31, 2021, consistent with the same period in 2020[19] Strategic Focus - The company is focusing on developing mini LED panel solutions, anticipating 2021 to be a significant year for mini LED in the display market[27] - The company is promoting its IC and panel solutions to automotive manufacturers in response to the rapid development of electric vehicles[27] - The MID segment remains the largest revenue contributor for the company, driven by increased demand for consumer electronics during the COVID-19 pandemic[26] Shareholder Information - As of March 31, 2021, major shareholder Shijie holds 211,963,000 shares, representing 32.47% of the issued share capital[40] - The net proceeds from the placement of 150,000,000 shares in January 2016 amounted to approximately HKD 30,000,000[42] Use of Proceeds - The revised allocation of net proceeds includes HKD 4.6 million for upgrading the ERP system, with HKD 4.0 million remaining to be utilized by the end of 2021[45] - The company allocated HKD 11.2 million for expanding its ELA business, with HKD 7.5 million remaining to be utilized by the end of 2021[45] Compliance and Governance - The company has complied with the corporate governance code as per GEM listing rules, with some deviations noted[48] - The audit committee reviewed the accounting principles and policies, internal controls, and risk management for the three months ending March 31, 2021[50] - All directors confirmed compliance with the code of conduct for securities transactions during the reporting period[51] Acknowledgments - The board expresses gratitude to employees, shareholders, customers, suppliers, and business partners for their ongoing support[53]