Financial Performance - Revenue for 2020 was HKD 2,254,195, an increase of 25% compared to HKD 1,801,130 in 2019[12] - Profit attributable to owners for 2020 was HKD 32,127, representing a 119% increase from HKD 14,652 in 2019[12] - Basic earnings per share for 2020 was HKD 4.92, up 119% from HKD 2.25 in 2019[12] - The company achieved sales revenue of HKD 2,254,195,000 for the year ended December 31, 2020, representing a 25.1% increase from HKD 1,801,130,000 in 2019[26] - Gross profit for the year was HKD 81,591,000, up 26.6% from HKD 64,465,000 in the previous year, with a gross margin of 3.62% compared to 3.58% in 2019[28] - The company reported a total comprehensive income of HKD 37,330 for 2020, compared to HKD 11,184 in 2019[170] - The company's total equity rose to HKD 168,719 from HKD 137,917 in 2019, indicating a stronger financial position[172] - The pre-tax profit for the year ended December 31, 2020, was HKD 38,832,000, a significant increase of 122% compared to HKD 17,421,000 in 2019[179] Dividend and Shareholder Returns - The company proposed a final dividend of HKD 0.025 per share, an increase from HKD 0.01 in 2019, totaling HKD 0.025 for the year[15] - The company proposed a final dividend of 2.5 HK cents per share for the year ended December 31, 2020, compared to 1.0 HK cent per share in 2019[106] - As of December 31, 2020, the company's retained earnings available for distribution to shareholders amounted to HKD 35,549,000[113] Operational Highlights - Sales of Innolux panel solutions significantly increased due to the pandemic, as consumers engaged in indoor activities[16] - The smartphone panel module segment saw substantial growth driven by the upgrade from 4G to 5G devices in China[18] - The ELA solutions sales increased as they became essential tools for students during school closures due to the pandemic[20] - The STB solutions sales decreased due to the pandemic's impact in key markets such as the Middle East and South America[22] - The company plans to diversify its revenue sources and expand its customer base in response to economic uncertainties[24] - The company aims to maintain flexible operational strategies to explore new business opportunities[24] Financial Position and Liquidity - The company's current ratio improved to 140.4% as of December 31, 2020, compared to 131.7% in 2019, indicating a strong liquidity position[35] - Cash and bank balances stood at HKD 140,961,000, an increase from HKD 114,485,000 in 2019, while bank borrowings decreased to HKD 54,667,000 from HKD 147,577,000[35] - Current liabilities decreased to HKD 389,995 from HKD 416,813 in 2019, improving the company's liquidity position[172] - Cash and cash equivalents increased to HKD 140,961 from HKD 114,485 in 2019, reflecting better cash flow management[172] Corporate Governance - The company is committed to high levels of corporate governance to enhance its corporate image and performance[55] - The board of directors consists of eight members, including three independent non-executive directors[57] - The company has complied with the applicable code provisions of the corporate governance code since its listing on January 7, 2016[55] - The independent non-executive directors have extensive experience in finance and management, contributing to the company's strategic oversight[48] - The company emphasizes transparency and accountability in its operations, aligning with its corporate governance principles[55] - The board is responsible for formulating corporate strategies and monitoring the group's operational and financial performance[56] - The company has established various committees, including audit, nomination, and remuneration committees, to enhance governance practices[55] Audit and Financial Reporting - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2020[152] - The financial statements for the year ended December 31, 2019, were audited by another auditor who issued an unqualified opinion[158] - The auditor's responsibility includes identifying and assessing risks of material misstatement due to fraud or error[166] - The auditor communicated significant audit findings to the audit committee, including any material weaknesses in internal controls identified during the audit[167] - The financial statements are prepared in accordance with all applicable HKFRS and the disclosure requirements of the Hong Kong Companies Ordinance[199] Risk Management - The board is responsible for maintaining effective risk management and internal control systems, which were reviewed and deemed effective during the year[96] - The risk management and internal control reports are submitted to the audit committee and board at least annually, ensuring oversight of major risk areas[96] Environmental Responsibility - The company is committed to environmental responsibility through various resource-saving measures, including the use of LED lights and eco-friendly materials[116] Shareholder Communication - The company emphasizes the importance of shareholder communication, providing detailed information in annual reports and press releases[101] - The board aims to ensure that all announcements are clear and not misleading, adhering to the Securities and Futures Ordinance and GEM Listing Rules[98]

Financial Performance - For the nine months ended September 30, 2020, the group recorded revenue of HKD 1,645,803,000, representing an increase of 24.3% compared to HKD 1,323,491,000 for the same period in 2019[3] - The profit attributable to owners of the company for the nine months ended September 30, 2020, was HKD 23,147,000, up 18.5% from HKD 19,500,000 in the same period last year[3] - The gross profit for the nine months ended September 30, 2020, was HKD 56,016,000, a decrease of 2.5% from HKD 57,441,000 for the same period in 2019[5] - The total comprehensive income for the nine months ended September 30, 2020, was HKD 23,147,000, compared to HKD 16,031,000 for the same period in 2019, reflecting a growth of 44.2%[5] - The basic and diluted earnings per share for the nine months ended September 30, 2020, were HKD 3.55, an increase from HKD 2.99 for the same period in 2019[5] - Operating costs for the reporting period were HKD 26,664,000, a decrease of 8.6% compared to HKD 29,184,000 in 2019[30] Dividends and Shareholder Information - The company did not recommend the payment of an interim dividend for the nine months ended September 30, 2020, compared to no dividend declared for the same period in 2019[3] - The company did not declare an interim dividend for the nine months ended September 30, 2020, compared to no dividend declared for the same period in 2019[24] - As of September 30, 2020, the company had a total of 250,135,861 shares held by Dr. Yan, representing 38.32% of the issued share capital[33] Market Performance - Revenue from the Chinese market for the three months ended September 30, 2020, was HKD 392,650,000, compared to HKD 374,440,000 in the same period of 2019[14] - Revenue from the Hong Kong market for the three months ended September 30, 2020, was HKD 298,128,000, significantly up from HKD 121,964,000 in the same period of 2019[14] - A major customer contributed HKD 251,886,000 to the group's revenue for the nine months ended September 30, 2020, although this did not exceed 10% of total revenue[14] Costs and Financing - The company reported a decrease in financing costs to HKD 3,002,000 for the nine months ended September 30, 2020, down from HKD 6,844,000 in the same period last year[5] - Gross profit for the nine months ended September 30, 2020, was HKD 56,016,000, a decrease of 2.5% from HKD 57,441,000 in the same period of 2019, with a gross margin decline from 4.3% to 3.4%[29] Corporate Governance and Compliance - The company has complied with the applicable code provisions of the GEM Listing Rules on corporate governance during the nine months ended September 30, 2020[46] - The company has confirmed that all directors have adhered to the code of conduct for securities transactions during the nine months ended September 30, 2020[50] - The board consists of four executive directors, one non-executive director, and three independent non-executive directors[52] Future Outlook and Strategic Developments - The company expects the negative impact of the pandemic on the global economy to intensify in the fourth quarter and will monitor the situation closely[26] - The company has not disclosed any new product developments or market expansion strategies in the current report[3] - There were no significant mergers or acquisitions reported during the nine months ended September 30, 2020[3] - The company has not granted any share options under its share option scheme during the reporting period[36] - The company has not purchased, sold, or redeemed any of its listed securities during the review period[45] Employee and Stakeholder Acknowledgment - 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] Use of Proceeds - The net proceeds from the placement of 150,000,000 shares in January 2016 amounted to approximately HKD 30,000,000[41] - The revised allocation of the 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[43] - The company allocated HKD 11.2 million for expanding its ELA business, with HKD 7.5 million remaining for equipment purchases by the end of 2021[43] Report Availability - The report will be available on the GEM website for at least seven days from the date of publication[52]

Financial Performance - For the six months ended June 30, 2020, the group recorded revenue of HKD 932,146,000, representing an increase of 14.7% compared to HKD 812,932,000 for the same period in 2019[5] - The profit attributable to owners of the company for the same period was HKD 13,059,000, up from HKD 12,692,000 in 2019, reflecting a growth of 2.9%[5] - The gross profit margin decreased to 3.7% for the six months ended June 30, 2020, compared to 4.7% in the previous year[7] - The company reported a basic and diluted earnings per share of HKD 2.00 for the six months ended June 30, 2020, compared to HKD 1.95 for the same period in 2019[7] - Profit for the period was HKD 13,059,000, compared to HKD 12,692,000 for the same period in 2019, reflecting a growth of 2.9%[17] - Gross profit for the same period was HKD 34,452,000, a decrease of 9.5% from HKD 38,073,000 in 2019, with a gross margin decline from 4.7% to 3.7%[46] Dividends - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2020, compared to a dividend of HKD 0.01 per share in 2019[5] - The company did not declare an interim dividend for the six months ended June 30, 2020, compared to a dividend of HKD 0.01 per share for the same period in 2019[41] - The company declared a dividend of HKD 6,528,000 for the period, consistent with the previous year[22] Assets and Liabilities - Total assets as of June 30, 2020, were HKD 551,960,000, slightly up from HKD 548,847,000 as of December 31, 2019[8] - Current liabilities decreased to HKD 405,361,000 as of June 30, 2020, from HKD 416,813,000 at the end of 2019[8] - The company’s total equity increased to HKD 150,976,000 as of June 30, 2020, from HKD 137,917,000 at the end of 2019, reflecting a growth of 9.5%[8] - Trade receivables as of June 30, 2020, amounted to HKD 129,793,000, a decrease from HKD 143,813,000 as of December 31, 2019, indicating a decline of 9.7%[28] - The total amount of trade and other payables increased to HKD 262,090,000 as of June 30, 2020, compared to HKD 252,208,000 as of December 31, 2019, showing an increase of 3.1%[32] Cash Flow - Operating cash flow for the six months ended June 30, 2020, was HKD 27,388,000, a decrease of 74.3% from HKD 106,907,000 in 2019[11] - Net cash used in financing activities for the six months ended June 30, 2020, was HKD 31,350,000, significantly improved from HKD 119,076,000 in 2019[11] - The company reported a decrease in cash and cash equivalents of HKD 3,668,000 for the period, compared to a decrease of HKD 11,988,000 in 2019[11] - The company had cash and bank balances of HKD 110,817,000 as of June 30, 2020, compared to HKD 114,485,000 on December 31, 2019[49] Market Performance - Revenue from the Chinese market for the six months ended June 30, 2020, was HKD 561,360,000, a decrease of 7.1% from HKD 604,283,000 in 2019[18] - Revenue from the Hong Kong market increased significantly to HKD 342,357,000, up 76.3% from HKD 194,311,000 in 2019[18] - The company experienced a notable increase in smartphone sales in China during the second quarter as COVID-19 control measures were gradually relaxed[42] Employee Costs - Total employee costs for the six months ended June 30, 2020, were HKD 5,241,000, down from HKD 6,302,000 in 2019, reflecting a decrease of 16.8%[26] Corporate Governance - The company has complied with the corporate governance code as of June 30, 2020, with minor deviations noted[76] - The board expresses gratitude to employees, shareholders, customers, suppliers, and business partners for their ongoing support[81] Investments and Future Plans - The company did not have any significant investments or acquisitions during the reporting period[57] - There are no major capital commitments or contingent liabilities as of June 30, 2020[56] - The company allocated HKD 4.6 million for upgrading its ERP system, with only HKD 0.5 million utilized by June 30, 2020[73] - Research and development expenses for expanding the ELA business amounted to HKD 2.5 million, fully utilized by June 30, 2020[73] - The company plans to expand its product range with an allocation of HKD 11.2 million, of which HKD 6.7 million has been utilized[73] - General working capital was allocated HKD 3.0 million, fully utilized by June 30, 2020[73]

Financial Performance - The company reported revenue of HKD 407,213,000 for the three months ended March 31, 2020, representing an increase of 5.0% from HKD 385,792,000 in the same period last year[3] - The profit attributable to owners of the company for the same period was HKD 4,582,000, up from HKD 4,471,000, reflecting a growth of 2.5% year-on-year[3] - Gross profit decreased to HKD 14,610,000, down 11.8% from HKD 16,561,000 in the previous year, indicating a decline in gross margin[5] - The company had a basic and diluted earnings per share of HKD 0.70, compared to HKD 0.69 in the same period last year[5] - The total comprehensive income for the period was HKD 4,582,000, matching the profit attributable to owners[5] - For the first quarter of 2020, the company reported sales revenue of HKD 407,213,000, an increase of 5.6% compared to HKD 385,792,000 in the same period of 2019[28] - Gross profit for the first quarter of 2020 was HKD 14,610,000, a decrease of 11.8% from HKD 16,561,000 in the same period of 2019, with a gross margin dropping from 4.3% to 3.6%[29] - The company's profit attributable to owners for the first quarter of 2020 was HKD 4,582,000, reflecting a 2.5% increase from HKD 4,471,000 in the same period of 2019[31] Revenue Breakdown - Revenue from the China market was HKD 228,865,000, a decrease of 19.8% compared to HKD 285,337,000 in the prior year[15] - Revenue from Hong Kong increased significantly to HKD 164,380,000, up 75.3% from HKD 93,784,000 year-on-year[15] Dividends and Equity - The company did not declare an interim dividend for the period, consistent with the previous year[3] - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2020, consistent with the previous year[18] - The company had a total equity of HKD 142,499,000 as of March 31, 2020, an increase from HKD 139,013,000 at the beginning of the year[7] Operating Costs and Expenses - Operating costs for the reporting period were HKD 7,985,000, a reduction of 23.6% compared to HKD 10,449,000 in 2019[30] - The company’s income tax expense for the first quarter of 2020 was HKD 869,000, slightly down from HKD 878,000 in the same period of 2019[4] - The company’s employee costs totaled HKD 2,170,000 for the first quarter of 2020, down from HKD 2,634,000 in the same period of 2019[20] Shareholder Information - As of March 31, 2020, the company had 211,963,000 shares held by its controlling entity, representing 32.47% of the issued share capital[39] - The number of ordinary shares used for calculating basic and diluted earnings per share was 652,770,000 for the first quarter of 2020, compared to 651,964,000 in 2019[22] Fund Allocation and Utilization - The revised allocation of the net proceeds includes HKD 4.6 million for upgrading the ERP system, with only HKD 0.4 million utilized as of March 31, 2020[44] - For expanding ELA business, HKD 11.2 million was allocated, with HKD 3.4 million utilized by March 31, 2020[44] - The company allocated HKD 5.6 million for artificial intelligence and IoT development, with HKD 1.0 million utilized as of March 31, 2020[44] - The total actual usage of the net proceeds was HKD 13.4 million, leaving a balance of HKD 16.6 million as of March 31, 2020[44] Corporate Governance and Compliance - The company has complied with the corporate governance code as per GEM listing rules, with minor deviations noted[47] - The audit committee reviewed the accounting principles and policies adopted by the group for the three months ending March 31, 2020[48] Business Strategy and Market Focus - The company experienced strong demand in the domestic MID and smart speaker markets due to the COVID-19 pandemic, which led to increased online education needs[25] - The company plans to focus on the domestic ELA and smart speaker markets and will actively develop AI solutions in response to the pandemic[26] Miscellaneous - The company did not purchase, sell, or redeem any of its listed securities during the review period[46] - The board expressed gratitude to employees, shareholders, customers, suppliers, and business partners for their ongoing support[51]

Financial Performance - The company's revenue for the year ended December 31, 2019, was HKD 1,801,130,000, a decrease of 2.9% compared to HKD 1,855,277,000 in 2018[25] - Profit attributable to the owners of the company increased by 250.7% to HKD 14,652,000 from HKD 4,178,000 in the previous year[28] - The basic earnings per share rose by 246.2% to HKD 2.25 from HKD 0.65 in 2018[12] - The gross profit for the year was HKD 64,465,000, an increase of 16.7% from HKD 55,258,000 in 2018, with a gross margin of 3.6%[26] - Operating costs decreased by 10.9% to HKD 39,950,000 from HKD 44,830,000 in the previous year[27] - The company reported a total lease liability of HKD 5,949,000 as of January 1, 2019, with a breakdown of HKD 3,087,000 classified as current and HKD 2,862,000 as non-current[197] - The company paid dividends totaling HKD 13,055,000 in 2019, compared to HKD 12,970,000 in 2018, reflecting a slight increase[187] - The company issued new shares raising HKD 775,000 in 2019, a significant decrease from HKD 7,319,000 in 2018[187] - The company repaid bank borrowings amounting to HKD 954,625,000 in 2019, which is an increase of 5.9% from HKD 901,641,000 in 2018[187] Market Outlook - The company expects an optimistic sales performance for 2020 driven by the outbreak of COVID-19, the upgrade of 5G smartphones, and the widespread use of smart speaker products[24] - The MID segment, including tablet and smart home speaker products, generated the highest revenue for the company in 2019, with increased orders from several well-known brands[17] - Sales of smartphone panel modules decreased due to weak demand for domestic TFT LCD screens amid trade tensions[18] - The company's STB solutions showed stable performance in South America and North Africa, although sales in the Middle East did not meet expectations due to political unrest[19] - ELA solutions saw a decline in sales due to oversupply in the domestic LCD screen market, leading to lower panel prices[23] - The company has set a revenue guidance of HKD 1,200 million for the next fiscal year, indicating a projected growth of 20%[55] - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on smart home devices[56] - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by 2021[57] Corporate Governance - The management team emphasized the importance of corporate governance, adhering to GEM listing rules since January 2016[60] - The board of directors consists of eight members, ensuring diverse expertise and oversight[61] - The company has implemented a performance-based compensation structure for its executives, aligning their interests with shareholder value[62] - The audit committee reviewed the group's financial statements and held four meetings to discuss quarterly and annual performance[70] - The company emphasizes board diversity, considering factors such as gender, age, and professional experience in its selection process[80] - The board consists of eight members, with three being independent non-executive directors, achieving the target of at least one-third independent directors[83][84] - The company has adopted measurable targets for board diversity, including at least one member with accounting or other professional qualifications[83] - The company is committed to maintaining effective risk management and internal control systems as part of its governance practices[69] Employee and Shareholder Relations - The company employs around 100 staff in the Greater China region, ensuring competitive compensation packages[34] - The company has adopted a dividend policy prioritizing cash dividends, subject to board discretion and shareholder approval[35] - Any proposed dividend payments will consider factors such as financial performance, capital needs, and tax implications[39] - The board will review the dividend policy periodically, with no guarantee of payment in any specified period[38] - The company encourages shareholder participation in annual general meetings, considering them significant events for direct communication[100] Financial Position and Ratios - As of December 31, 2019, the group's current ratio was 132%, an increase from 128% in 2018[32] - The group's bank deposits and cash amounted to HKD 114,485,000, slightly down from HKD 115,082,000 in 2018[32] - The net debt-to-equity ratio improved to 24% from 136.4% in 2018, with net debt calculated at approximately HKD 33,092,000[32] - Accounts receivable turnover days were approximately 31 days, compared to 30 days in 2018[33] - Inventory turnover days increased to 56 days from 53 days in 2018, while accounts payable turnover days rose to 41 days from 33 days[33] Audit and Compliance - The independent auditor's report emphasizes the importance of identifying and assessing risks of material misstatement due to fraud or error[172] - The auditor's responsibility includes evaluating the appropriateness of accounting policies and the reasonableness of accounting estimates and disclosures[172] - The auditor's report was issued on March 30, 2020, indicating the completion of the audit for the fiscal year ending December 31, 2019[176] - The audit partner responsible for the independent auditor's report was Lin Xiufeng[175] Environmental Responsibility - The company is committed to environmental responsibility, implementing measures such as using LED lights and eco-friendly materials[115] Risk Management - The company has faced regulatory risks and is closely monitoring changes in government policies and regulations[119] - The company has established strong relationships with customers and suppliers to effectively meet their needs[118]

Financial Performance - For the nine months ended September 30, 2019, the group recorded revenue of HKD 1,323,491,000, a decrease of 14.8% compared to HKD 1,552,420,000 for the same period in 2018[5] - The profit attributable to owners of the company for the nine months ended September 30, 2019, was HKD 19,500,000, down 19.0% from HKD 24,202,000 in the previous year[5] - The total comprehensive income for the nine months ended September 30, 2019, was HKD 16,031,000, compared to HKD 24,359,000 for the same period in 2018, reflecting a decrease of 34.3%[7] - Total revenue for the three months ended September 30, 2019, was HKD 510.6 million, a decrease of 2.0% compared to HKD 525.5 million in the same period of 2018[26] - Revenue from China for the nine months ended September 30, 2019, was HKD 978.7 million, down 12.0% from HKD 1,112.4 million in the same period of 2018[26] - Revenue from Hong Kong for the nine months ended September 30, 2019, was HKD 316.3 million, a decrease of 23.5% compared to HKD 413.4 million in the same period of 2018[26] - Revenue from Taiwan for the nine months ended September 30, 2019, was HKD 11.0 million, down 46.8% from HKD 20.7 million in the same period of 2018[26] - The basic earnings per share for the nine months ended September 30, 2019, was 2.99 HK cents, down from 3.77 HK cents in the same period of 2018[7] - Gross profit for the nine months ended September 30, 2019, was HKD 57,441,000, down about 11.3% from HKD 64,776,000 in the same period of 2018, with a gross margin increase from 4.2% to 4.3%[42] Dividends and Shareholder Information - The company did not recommend the payment of an interim dividend for the nine months ended September 30, 2019, consistent with the previous year[5] - As of September 30, 2019, the company had a total of 245,045,861 shares held by director Yan Yulin, representing 37.54% of the issued share capital[46] - Director Zhang Weihua held 76,847,000 shares, accounting for 11.77% of the issued share capital[46] - The company has a total of 60,000,000 share options granted under the pre-IPO share option plan, equivalent to 10% of the issued share capital post-placement[49] - The company’s major shareholder, Shijie Group, is deemed to have an interest in 211,963,000 shares held by its wholly-owned subsidiary, Shijie Investment[54] - The company’s directors and employees have exercised a total of 5,850,000 share options during the reporting period[50] - The share options granted to directors and employees are exercisable at a price of HKD 0.31 per share[50] Costs and Expenses - Operating costs for the nine months ended September 30, 2019, were HKD 29,184,000, a decrease of about 17.1% compared to HKD 35,203,000 in the same period of 2018[43] - The company reported a decrease in employee costs, with total employee costs for the nine months ended September 30, 2019, at HKD 9,706,000, down from HKD 11,661,000 in the same period of 2018[33] - The company’s bank interest income for the nine months ended September 30, 2019, was a loss of HKD 383,000, compared to a loss of HKD 94,000 in the same period of 2018[33] Foreign Exchange and Equity - The company reported a foreign exchange loss of HKD 3,469,000 for the nine months ended September 30, 2019, compared to a gain of HKD 157,000 in the previous year[8] - The total equity as of September 30, 2019, was HKD 149,596,000, an increase from HKD 143,819,000 as of January 1, 2018[8] Corporate Governance and Compliance - The company has adhered to the corporate governance code as per GEM listing rules, with no significant deviations reported[60] - The audit committee has reviewed the accounting principles and policies, internal controls, and risk management for the nine months ending September 30, 2019[61] - All directors confirmed compliance with the securities trading code during the nine-month period ending September 30, 2019[62] Accounting Policies and Standards - The application of HKFRS 16 resulted in changes to accounting policies, impacting the recognition of lease liabilities and right-of-use assets[13][19] - The company adopted a practical expedient for leases previously classified as operating leases under HKAS 17, without reassessing contracts not identified as containing leases[24] - The initial application of HKFRS 16 on January 1, 2019, resulted in cumulative effects recognized in retained earnings without restating comparative information[23] - The company expects that the adoption of new and revised HKFRS will not have a significant impact on its financial information[12] - The company will continue to assess the impact of market rental rates on lease liabilities and adjust accordingly[24] Market and Product Development - The company benefited from the growth in the domestic smart speaker market, receiving orders from well-known brands in mainland China, which boosted sales of Innolux screen solutions[38] - The company anticipates a new replacement cycle for smartphones due to the launch of new 5G phones, which is expected to drive stable market demand for Innolux screen solutions[40] - The company has not disclosed any new product developments or market expansion strategies in the current report[6] - There were no significant mergers or acquisitions reported during the nine months ended September 30, 2019[6] Investment and Budget Allocation - The upgrade of the ERP system has an allocated budget of HKD 4.6 million, with only HKD 0.4 million utilized so far, leaving a balance of HKD 4.2 million expected to be used by the end of 2021[58] - Research and development expenses for ELA business are fully utilized at HKD 2.5 million, while equipment purchases have only seen HKD 0.6 million spent out of HKD 8.7 million allocated, leaving HKD 8.1 million remaining[58] - Investment in new product categories includes HKD 2.8 million for automotive infotainment and HKD 2.8 million for drone Wi-Fi transmission, both fully utilized[58] - The allocation for artificial intelligence and IoT has been revised to HKD 5.6 million, with only HKD 0.7 million spent, leaving HKD 4.9 million to be utilized by the end of 2021[58] - General working capital has been fully utilized at HKD 3.0 million, with no remaining balance[58] Securities Transactions - The company did not purchase, sell, or redeem any of its listed securities during the review period[59] - The company has not entered into any arrangements for the purchase of shares or debentures by its directors during the nine months ended September 30, 2019[53]

Financial Performance - The group recorded revenue of HKD 812,932,000 for the six months ended June 30, 2019, a decrease of 20.8% compared to HKD 1,026,896,000 for the same period in 2018[5]. - Profit attributable to owners of the company was HKD 12,692,000, down 19.0% from HKD 15,646,000 in the previous year[5]. - Gross profit for the six months ended June 30, 2019, was HKD 38,073,000, representing a gross margin of 4.68%[8]. - Basic earnings per share for the period was HKD 1.95, down from HKD 2.44 in the same period last year[8]. - The total comprehensive income for the six months ended June 30, 2019, was HKD 12,740,000, which included a profit of HKD 12,692,000[10]. - The overall revenue for the six months ended June 30, 2019, decreased by approximately 20.8% compared to the same period in 2018 due to political and economic fluctuations[51]. - The profit attributable to owners for the three months ended June 30, 2019, was HKD 8,221,000, a decrease of approximately 1.9% compared to HKD 8,383,000 for the same period in 2018[40]. - For the six months ended June 30, 2019, the profit attributable to owners was HKD 12,692,000, down 19.0% from HKD 15,646,000 in 2018[40]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.01 per share, compared to no dividend for the same period last year[6]. - The company declared an interim dividend of HKD 0.01 per share for 2019, compared to no dividend in 2018[49]. Assets and Liabilities - Total assets decreased to HKD 558,984,000 as of June 30, 2019, from HKD 610,466,000 at the end of 2018[9]. - Current liabilities increased to HKD 421,126,000 from HKD 475,632,000 at the end of 2018[9]. - The company reported a net current asset value of HKD 137,858,000, slightly up from HKD 134,834,000 at the end of 2018[9]. - The company’s total equity increased to HKD 146,305,000 as of June 30, 2019, compared to HKD 139,013,000 at the end of 2018[9]. - Trade receivables decreased to HKD 124,922,000 as of June 30, 2019, from HKD 161,981,000 as of December 31, 2018, representing a decline of approximately 22.9%[42]. - Total trade and other receivables amounted to HKD 157,699,000 as of June 30, 2019, down from HKD 200,200,000 as of December 31, 2018, a decrease of about 21.1%[42]. - Trade payables increased to HKD 197,234,000 as of June 30, 2019, compared to HKD 147,536,000 as of December 31, 2018, reflecting an increase of approximately 33.7%[43]. Cash Flow - The net cash used in operating activities for the six months ended June 30, 2019, was HKD 106,907,000, compared to a net cash used of HKD 71,741,000 in the same period of 2018[11]. - The net cash generated from investing activities for the six months ended June 30, 2019, was HKD 181,000, while it was a net cash used of HKD 2,083,000 in 2018[11]. - The net cash used in financing activities for the six months ended June 30, 2019, was HKD 119,076,000, compared to a net cash generated of HKD 75,806,000 in the same period of 2018[11]. - The cash and cash equivalents at the end of the period on June 30, 2019, were HKD 103,094,000, compared to HKD 94,359,000 at the end of June 30, 2018[11]. - The company reported a decrease in cash and cash equivalents of HKD 11,988,000 for the six months ended June 30, 2019[11]. Strategic Initiatives and Market Position - The company aims to enhance its market position through strategic initiatives and potential new product developments[4]. - The company plans to launch AI-based products, including AI CCTV cameras and AI door locks, in the second half of the year, expecting these to drive future revenue growth[52]. - The local smart speaker market is anticipated to grow rapidly, with the company's Rockchip IC solutions and 6.95-inch Innolux screen solutions certified by several manufacturers, set to begin mass production in Q3 2019[52]. - Global tablet shipments are expected to surge by approximately 20% in Q3 2019, benefiting the company from sales of Innolux screen solutions[52]. - The demand for Avalink IC solutions from STB customers increased, particularly in South America and the Middle East markets[51]. - The company successfully promoted its wireless internet solutions to OTT customers in the second quarter of 2019, anticipating significant demand for these products[51]. - Sales of smartphone panel modules decreased due to weak demand for domestic TFT LCD screens[51]. Accounting and Compliance - The company did not anticipate any significant impact from the adoption of new accounting standards on its financial performance[15]. - The company’s total liabilities related to leases were recognized in accordance with the new accounting standards, reflecting a shift in accounting policy[18]. - The group has adopted HKFRS 16 retrospectively, recognizing cumulative effects on retained earnings without restating comparative information[29]. - The group’s effective tax rate for the qualifying entities under the two-tiered profits tax system is 8.25% for the first HKD 2 million of assessable profits[36]. - The group recognized a tax expense of HKD 2.4 million for the six months ended June 30, 2019, compared to HKD 2.3 million for the same period in 2018[35]. - The Audit Committee reviewed the accounting principles, internal controls, risk management, and the unaudited consolidated financial statements for the six months ended June 30, 2019[85]. - All directors confirmed compliance with the GEM Listing Rules regarding securities transactions for the six months ended June 30, 2019[86]. - The company adhered to the GEM Listing Rules Appendix 15 Corporate Governance Code during the six months ended June 30, 2019, with minor deviations noted[84]. Shareholder Information - As of June 30, 2019, the major shareholder, Shijie, holds 211,963,000 shares, accounting for 32.47% of the company's issued share capital[78]. - The company granted options to subscribe for a total of 60,000,000 shares at an exercise price of HKD 0.31 per share, representing 10% of the issued share capital post-placement[73]. - The company’s options granted to employees and related persons included 27,900,000 shares, with 50,270,000 options exercised by June 30, 2019[74]. - The company has a maximum number of 60,000,000 shares available for issuance under the share option plan, equivalent to approximately 9.2% of the issued shares[75]. - The company has not purchased, sold, or redeemed any of its listed securities during the review period[83]. - The total actual usage of the net proceeds was HKD 12.6 million, significantly lower than the total revised allocation of HKD 30 million[82]. - The revised allocation of the net proceeds includes HKD 4.6 million for upgrading the ERP system, with only HKD 0.4 million utilized as of June 30, 2019[82]. - The company did not grant any options under the 2015 Share Option Scheme during the reporting period[75]. Employee and Operational Costs - The group’s employee costs totaled HKD 6.3 million for the six months ended June 30, 2019, a decrease of 16.0% from HKD 7.5 million in the same period of 2018[38]. - The group’s depreciation on property, plant, and equipment was HKD 433,000 for the six months ended June 30, 2019, down from HKD 846,000 in the same period of 2018[38]. - The operating costs decreased to HKD 19,420,000, a reduction of approximately 17.9% compared to HKD 23,655,000 in 2018[55]. Acknowledgments - The company expressed gratitude to all employees, shareholders, customers, suppliers, and business partners for their ongoing support and contributions[87]. - The board of directors includes four executive directors, one non-executive director, and three independent non-executive directors as of the report date[88].

Financial Performance - For the first quarter ended March 31, 2019, the company reported revenue of HKD 385,792,000, a decrease of 22.2% compared to HKD 495,562,000 for the same period in 2018[5] - The profit attributable to owners of the company for the first quarter was HKD 4,471,000, down 38.9% from HKD 7,263,000 in the previous year[5] - The gross profit margin for the first quarter was approximately 4.3%, compared to 4.1% in the same quarter of 2018[7] - Revenue from the Chinese market was HKD 285,337,000, representing a decline of 18.7% from HKD 350,861,000 in the previous year[14] - Revenue from Hong Kong decreased by 30.9% to HKD 93,784,000 from HKD 135,923,000 year-on-year[14] - The total comprehensive income for the period was HKD 4,471,000, compared to HKD 7,420,000 in the previous year[7] - Gross profit for the same period was HKD 16,561,000, down about 19.3% from HKD 20,509,000 in 2018, with a gross margin increase from 4.1% to 4.3%[28] - The profit attributable to the owners of the company for the three months ended March 31, 2019, was HKD 4,471,000, a decrease of approximately 38.4% from HKD 7,263,000 in 2018[30] Dividends and Earnings - The company did not recommend the payment of an interim dividend for the first quarter, consistent with the previous year[5] - The company’s basic earnings per share for the first quarter was HKD 0.69, down from HKD 1.15 in the same quarter of 2018[7] - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2019, consistent with the same period in 2018[23] Cost Management - The company reported a decrease in sales costs to HKD 369,231,000 from HKD 475,053,000 year-on-year, reflecting a reduction of 22.3%[7] - Employee costs totaled HKD 2,634,000 for the period, down from HKD 3,007,000 in 2018, reflecting a decrease of approximately 12.4%[19] - The operating costs for the reporting period were HKD 10,449,000, a slight decrease of about 1.9% from HKD 10,649,000 in 2018[29] Business Activities and Strategy - The group experienced a slowdown in business activities, leading to unsatisfactory shipment volumes during the first quarter of 2019[24] - The company is actively participating in AI and AIOT applications in consumer electronics to stimulate future growth[25] - The company anticipates significant demand for its STB solutions from customers in Mediterranean countries such as Turkey, Egypt, and Greece[24] - The company has not disclosed any new product developments or market expansion strategies in this report[6] Share Options and Capital Management - The company granted a total of 60,000,000 share options under the pre-IPO share option plan, representing 10% of the issued share capital post-placement, with an exercise price of HKD 0.31 per share[36] - As of March 31, 2019, the company had 60,000,000 share options available for issuance, equivalent to approximately 9.2% of the total issued shares[40] - Major shareholder Shijie holds 211,963,000 shares, representing 32.47% of the company's issued share capital[43] - The net proceeds from the placement of 150,000,000 shares in January 2016 amounted to approximately HKD 30,000,000[46] - No share options were granted under the share option plan during the reporting period[40] - The pre-IPO share option plan was terminated on January 7, 2016, with no further options granted thereafter[36] - The exercise period for the granted options allows for 50% to be exercised within two years from the first anniversary of the listing date[36] Compliance and Governance - The company’s effective tax rate for its Chinese subsidiaries is 25%, with a reduced rate of 15% applicable to Shenzhen Yangyu Technology Development Co., Ltd. due to its status as a high-tech enterprise[17] - The company adhered to the corporate governance code, with no significant deviations reported[51] - The audit committee reviewed the accounting principles and policies, internal controls, and risk management for the three months ending March 31, 2019[52] - All directors confirmed compliance with the securities trading code during the review period[53] Use of Proceeds - The company’s board approved changes to the use of net proceeds from the placement on March 15, 2018[47] - The company allocated HKD 30 million for various purposes, with actual usage amounting to HKD 11.9 million, representing approximately 39.67% of the planned allocation[49] - For upgrading the ERP system, the company planned HKD 4.6 million but only utilized HKD 0.4 million, which is about 8.7% of the budget[49] - The company invested HKD 11.2 million to expand its ELA business, with actual spending of HKD 5.6 million, equating to 50% of the planned budget[49] - Research and development expenses for expanding product categories totaled HKD 2.5 million, fully utilized[49] Acknowledgments - The company expressed gratitude to employees, shareholders, customers, suppliers, and business partners for their ongoing support[55] - The board of directors consists of four executive directors and three independent non-executive directors as of the report date[56]

Financial Performance - The company reported a revenue of HKD 1,855,277,000 for the year ended December 31, 2018, a decrease of approximately 17.71% compared to HKD 2,254,447,000 in 2017[23]. - The profit attributable to the owners of the company was HKD 4,178,000, representing a significant decline of 88.77% from HKD 37,212,000 in the previous year[10]. - The gross profit for the year was HKD 55,258,000, down 43.08% from HKD 97,087,000 in 2017, with a gross margin of 2.98% compared to 4.31% in the prior year[24]. - The company reported a pre-tax profit of HKD 5,537, a decline of 87.8% compared to HKD 45,468 in 2017[174]. - Net profit for the year was HKD 4,178, a decrease of 88.8% from HKD 37,212 in 2017[174]. - Basic earnings per share for 2018 were HKD 0.65, down from HKD 6.05 in the previous year[174]. - Total comprehensive income for the year was HKD 973, a significant drop from HKD 42,289 in the previous year[174]. Dividends - The company proposed a final dividend of HKD 0.01 per share, down from HKD 0.02 per share in 2017, resulting in a total dividend of HKD 0.01 per share for the year, a decrease of 66.67% from HKD 0.03 per share in 2017[13]. - The company has adopted a dividend policy prioritizing cash dividends, with any proposed dividends subject to board discretion and shareholder approval[32][35]. - The board will consider various factors, including financial performance and tax implications, when deciding on dividend distributions[36]. Inventory and Assets - The company's inventory rose significantly from HKD 239,349 thousand in 2017 to HKD 287,310 thousand in 2018, an increase of 20.0%[176]. - As of December 31, 2018, the total inventory value was HKD 287,310,000, with a provision for obsolete inventory amounting to HKD 16,399,000[160]. - Total assets increased from HKD 506,361 thousand in 2017 to HKD 610,466 thousand in 2018, representing a growth of 20.5%[176]. Debt and Financing - The group's bank balances and cash as of December 31, 2018, were HKD 115,082,000, compared to HKD 92,377,000 as of December 31, 2017, while bank borrowings increased to HKD 304,656,000 from HKD 161,282,000[29]. - The net debt-to-equity ratio as of December 31, 2018, was 136.4%, significantly up from 47.9% as of December 31, 2017, calculated based on net debt of approximately HKD 189,574,000[29]. - Bank borrowings increased significantly from HKD 161,282 thousand in 2017 to HKD 304,656 thousand in 2018, a rise of 88.6%[176]. - The financing activities generated a net cash inflow of HKD 130,066 thousand in 2018, compared to HKD 16,702 thousand in 2017, indicating improved financing conditions[182]. Corporate Governance - The company has a board of directors consisting of eight members, including three independent non-executive directors[54]. - The company is committed to high standards of corporate governance and transparency, adhering to the GEM Listing Rules since its listing date on January 7, 2016[52]. - The company has independent non-executive directors with extensive experience in finance and management, contributing to its governance structure[45][46]. - The company has established various committees, including audit, nomination, and remuneration committees, to oversee different aspects of governance[54]. - The board is responsible for formulating corporate strategies and monitoring the group's operational and financial performance[53]. Risk Management - The board has confirmed that there were no significant issues regarding risk management and internal controls during the review year[94]. - The risk management and internal control systems were deemed effective and adequate by the board after review[94]. - The company faces regulatory risks and closely monitors changes in government policies and regulations that may impact its operations[117]. Market and Operational Strategy - The MID segment, which includes tablet and smart home speaker products, generated the highest revenue for the company, although sales decreased due to a global market downturn starting in Q3 2018[15]. - The company shifted its sales focus to the repair market in response to reduced demand for domestic TFT LCD screens due to trade tensions starting in Q3 2018[16]. - The company experienced a decline in demand for automotive infotainment systems due to a drop in car sales in China amid trade tensions[18]. - The video camera products segment has been a stable source of revenue, with satisfactory returns from hunting cameras, action cameras, drones, and newly launched video doorbell solutions[21]. Employee and Management - The company employed approximately 100 employees in the Greater China region as of December 31, 2018, ensuring competitive compensation packages[31]. - The company’s employee compensation policy is based on merit, qualifications, and the nature of work[139]. - The management team regularly reviews the overall business performance and coordinates resources for financial and operational decisions[53]. Accounting Standards - The company has adopted the new and revised Hong Kong Financial Reporting Standards (HKFRS), including HKFRS 9 (Financial Instruments) and HKFRS 15 (Revenue from Contracts with Customers) for the current year[186]. - The cumulative impact of adopting HKFRS 15 was recognized on January 1, 2018, with no restatement of comparative information, and adjustments were made to the financial statements accordingly[188]. - The adjustments made under HKFRS 9 and HKFRS 15 did not have a significant impact on the company's financial performance and position for the current and prior years[188].