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].