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]

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]