Financial Performance - For the year ended December 31, 2020, the Group's revenue was approximately HK$139.34 million, a decrease of approximately 29.64% compared to 2019 due to the COVID-19 pandemic[17]. - The decline in revenue was primarily due to the COVID-19 pandemic, which led to quarantine, lockdown, and travel restrictions, resulting in weak demand and decreased sales in major markets[34]. - The Group's revenue decreased by approximately HK$58.71 million or approximately 29.64% from approximately HK$198.05 million for the year ended 31 December 2019 to approximately HK$139.34 million for the year ended 31 December 2020[45]. - Gross profit decreased by approximately HK$17.17 million or approximately 34.13% from approximately HK$50.31 million for the year ended 31 December 2019 to approximately HK$33.14 million for the year ended 31 December 2020[47]. - Loss before taxation increased by approximately HK$26.19 million for the year ended 31 December 2020 compared to a loss before taxation of approximately HK$13.87 million for the year ended 31 December 2019[56]. - The Group recorded a loss for the year of approximately HK$26.21 million for the year ended 31 December 2020 compared to approximately HK$14.55 million for the year ended 31 December 2019[58]. Market Outlook - The pandemic led to weak demand and decreased sales in major markets, but demand is expected to gradually increase with vaccine availability in January 2021[17]. - The HKTDC Export Index rose from 18.8 in 4Q19 to 36.2 in 4Q20, indicating improved exporter sentiment but remaining below the neutral mark of 50[18]. - The timepieces sector's index improved from 15.5 in 4Q19 to 33.5 in 4Q20, reflecting a broad economic recovery across major industry sectors[19]. - Mainland China and ASEAN markets showed the most positive short-term outlook, with 48.4% and 47.2% of interviewees respectively expressing optimism[19]. - Despite improvements, the overall export index remains below the watershed mark of 50, indicating ongoing uncertainties in the short-term export outlook[39]. - The Group anticipates gradual growth in 2021, contingent on global economic performance and control of the COVID-19 situation[27]. Cost Management - The cost of sales decreased by approximately HK$41.55 million or 28.12% from approximately HK$147.74 million for the year ended 31 December 2019 to approximately HK$106.19 million for the year ended 31 December 2020[46]. - Selling and distribution expenses decreased by approximately HK$0.99 million or approximately 18.54% from approximately HK$5.34 million for the year ended 31 December 2019 to approximately HK$4.35 million for the year ended 31 December 2020[48]. - Administrative expenses decreased by approximately HK$6.12 million or approximately 11.34% from approximately HK$53.96 million for the year ended 31 December 2019 to approximately HK$47.84 million for the year ended 31 December 2020[54]. - Finance costs increased by approximately HK$1.01 million or approximately 25.31% from approximately HK$3.99 million for the year ended 31 December 2019 to approximately HK$5.00 million for the year ended 31 December 2020[55]. Cash and Assets - As of 31 December 2020, the Group had cash and cash equivalents of approximately HK$17.85 million, down from HK$22.19 million in 2019[70]. - The gearing ratio of the Group calculated by total borrowings as a percentage of total equity was approximately 160% as of 31 December 2020, up from 89% in 2019[71]. - As of December 31, 2020, the Group had total assets pledged to banks amounting to HK$131.71 million[79]. Corporate Governance - The Company has complied with the Corporate Governance Code provisions during the year ended December 31, 2020, with specified deviations explained[122]. - The Board consists of six Directors, including two Executive Directors and four Independent Non-executive Directors as of the date of the annual report[139]. - The roles of chairman and chief executive officer are held by Mr. Cheuk Sin Cheong Clement, which the Board believes strengthens leadership and allows for efficient business planning[129]. - The Company has adopted a Board Diversity Policy to achieve diversity through various factors, including gender, age, and professional experience[145]. - The Company has complied with GEM Listing Rules by appointing at least three Independent Non-executive Directors, with one possessing relevant professional qualifications[157]. Employee Management - The number of employees decreased from 166 in 2019 to 112 in 2020, primarily due to outsourcing manufacturing[85]. - The Company has a share option scheme approved on June 20, 2018, to incentivize and retain high-caliber employees[102]. Audit and Internal Control - The Audit Committee, comprising four Independent Non-executive Directors, oversees the financial reporting process and has reviewed annual results for the year ended December 31, 2020[165]. - The Company engaged HLB Hodgson Impey Cheng Limited as its auditors for the year ended December 31, 2020, with total auditors' remuneration amounting to HK$860,000[194]. - The Group did not have an internal audit function for the year ended 31 December 2020, as required under code provision C.2.5 of the CG Code[197]. - An external independent internal control consultant was engaged to review the Group's risk management and internal control systems for the year ended 31 December 2020[197]. - The Audit Committee reviewed the internal control review report and deemed the risk management and internal control systems effective and adequate[197].

Financial Performance - Revenue for the nine months ended 30 September 2020 amounted to approximately HK$89.45 million, representing a decrease of approximately 35.11% compared to HK$137.84 million for the same period in 2019[10]. - Loss attributable to owners of the Company for the nine months ended 30 September 2020 was approximately HK$13.68 million, compared to a loss of approximately HK$2.09 million for the same period in 2019[10]. - Basic loss per share for the nine months ended 30 September 2020 was approximately HK1.37 cent, compared to HK0.21 cent for the same period in 2019[10]. - Gross profit for the nine months ended 30 September 2020 was approximately HK$23.05 million, down from HK$43.02 million for the same period in 2019[12]. - Total comprehensive loss for the nine months ended 30 September 2020 was approximately HK$10.75 million, compared to a loss of HK$1.09 million for the same period in 2019[12]. - The Company reported a loss before taxation of approximately HK$13.68 million for the nine months ended 30 September 2020, compared to a loss of HK$1.21 million for the same period in 2019[12]. - The Group recorded a gross profit of approximately HK$23.05 million, representing a decline of approximately 46.42% compared to the same period in 2019[64]. Expenses - Selling and distribution expenses for the nine months ended 30 September 2020 were approximately HK$2.55 million, down from HK$4.17 million for the same period in 2019[12]. - Administrative expenses for the nine months ended 30 September 2020 were approximately HK$31.69 million, compared to HK$37.25 million for the same period in 2019[12]. - Finance costs for the nine months ended 30 September 2020 were approximately HK$3.64 million, up from HK$2.90 million for the same period in 2019[12]. - Selling and distribution expenses decreased by approximately 38.79% compared to the same period in 2019, mainly due to reduced packing and exhibition expenses[64]. Equity and Capital - As of September 30, 2020, the total equity of the company was HK$52,226,000, a decrease from HK$62,977,000 as of December 31, 2019, reflecting a loss for the period of HK$13,676,000[13]. - The company’s retained earnings decreased from HK$24,233,000 at the end of 2018 to HK$9,685,000 by the end of 2019, indicating a significant loss impact[13]. - The company’s share capital was increased from HK$380,000 to HK$10,000,000 by creating an additional 9,962,000,000 shares[15]. - As of September 30, 2020, the Group had cash and cash equivalents of approximately HK$4.45 million, down from HK$35.27 million as of September 30, 2019[67]. - The current ratio was approximately 1.16 times as of September 30, 2020, compared to 1.24 times as of September 30, 2019[67]. - The gearing ratio was approximately 268% as of September 30, 2020, compared to 84% as of September 30, 2019[68]. Revenue Sources - The company’s revenue is primarily derived from customers in Indonesia, India, Brazil, Hong Kong, and Saudi Arabia, indicating a diverse geographical revenue base[26]. - Revenue from finished watches for the nine months ended 30 September 2020 was HK$71.06 million, down from HK$96.20 million in 2019, representing a decline of approximately 26.2%[32]. - Revenue from SKD kits decreased to HK$16.71 million for the nine months ended 30 September 2020, down from HK$39.32 million in 2019, a decline of approximately 57.5%[32]. - The Group's revenue from other geographical locations amounted to HK$10.83 million for the nine months ended 30 September 2020, down from HK$13.78 million in 2019[32]. - For the nine months ended September 30, 2020, the Group's revenue was approximately HK$89.45 million, a decrease of about 35.11% compared to the same period in 2019, primarily due to the global outbreak of COVID-19[54]. Corporate Governance - The Company has complied with the Corporate Governance Code throughout the period, except for a deviation regarding the roles of chairman and CEO[117]. - The Audit Committee was established on June 20, 2018, to oversee the financial reporting process and internal control procedures[125]. - The financial information in the quarterly report has not been audited, but the Audit Committee reviewed the unaudited consolidated results and found them compliant with applicable accounting standards[127]. - The Company confirms that the Directors have complied with the required standard of dealings regarding securities transactions throughout the period[120]. Future Outlook - The Group intends to focus on strengthening product design and development capabilities to maximize long-term returns for shareholders[60]. - The quarterly report contains forward-looking statements regarding the Group's financial conditions and business operations, based on various assumptions about future strategies and environments[128]. - The report emphasizes that forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties[131]. - The Group's current views on future events are reflected in the forward-looking statements, which are based on multiple assumptions[131]. Employment and Operations - As of September 30, 2020, the company had a total of 113 employees, a decrease from 159 employees as of September 30, 2019[78]. - The Group's goods delivery to customers is gradually recovering as the pandemic situation improves in Asia[50]. - The company operates on an original design manufacturing (ODM) basis, catering to global watch manufacturers and brand owners[17]. Dividends and Share Options - The Group did not declare any dividend for the nine months ended 30 September 2020, consistent with the previous year[39]. - The Board decided not to declare any dividend for the Period[65]. - The Company has a share option scheme approved on June 20, 2018, valid for 10 years, aimed at incentivizing and retaining high-caliber employees[108]. - No share options have been granted since the adoption of the scheme during the nine months ended September 30, 2019, and 2020[110]. Miscellaneous - The company was successfully listed on the GEM of the Stock Exchange on July 12, 2018, raising approximately HK$34,470,000 after deducting listing fees[15]. - The company did not engage in any derivatives or hedging activities related to foreign exchange risk during the reporting period[84]. - There were no material contingent liabilities as of September 30, 2020, consistent with the previous year[80]. - The company did not purchase, sell, or redeem any of its listed securities during the period[101]. - The company had no significant events occurring after the reporting period[81]. - There were no significant investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures during the period[102].

Financial Performance - Revenue for the six months ended 30 June 2020 amounted to approximately HK$45.86 million, representing a decrease of approximately 45.79% compared to HK$84.60 million for the same period in 2019[17]. - Loss attributable to owners of the Company for the Period amounted to approximately HK$12.39 million, compared to a loss of approximately HK$6.83 million for the same period in 2019[17]. - Basic loss per share for the Period amounted to approximately HK1.24 cents, compared to approximately HK0.68 cents for the six months ended 30 June 2019[17]. - Revenue for the three months ended June 30, 2020, was HK$25,259,000, a decrease of 47.5% compared to HK$48,133,000 for the same period in 2019[20]. - Gross profit for the six months ended June 30, 2020, was HK$11,978,000, down 46.3% from HK$22,305,000 in the same period of 2019[20]. - Loss before taxation for the three months ended June 30, 2020, was HK$4,683,000, compared to a loss of HK$3,321,000 in the same period of 2019, representing a 41.0% increase in loss[20]. - Total comprehensive loss for the period attributable to owners of the Company was HK$5,231,000 for the three months ended June 30, 2020, compared to HK$3,560,000 in the same period of 2019, an increase of 47.0%[20]. - Total revenue for the first half of 2020 was HK$45,862,000, a decrease of 46% compared to HK$84,596,000 in the same period of 2019[42]. - Revenue for finished watches decreased by 32.2% to HK$21.85 million for the three months ended June 30, 2020, compared to HK$32.21 million in the same period of 2019[45]. - The Group incurred a loss before taxation of approximately HK$12.39 million for the six months ended June 30, 2020, compared to a loss of HK$6.83 million in the same period of 2019[52]. Assets and Liabilities - Non-current assets increased to HK$82,117,000 as of June 30, 2020, from HK$52,975,000 as of December 31, 2019, reflecting a growth of 55.5%[21]. - Current assets rose to HK$160,222,000 as of June 30, 2020, compared to HK$146,643,000 as of December 31, 2019, an increase of 9.2%[21]. - Net current assets improved to HK$21,475,000 as of June 30, 2020, from HK$11,745,000 as of December 31, 2019, representing an increase of 83.0%[21]. - Total equity decreased to HK$51,174,000 as of June 30, 2020, down from HK$62,977,000 as of December 31, 2019, a decline of 18.7%[22]. - Borrowings increased to HK$50,675,000 as of June 30, 2020, from HK$0 as of December 31, 2019, indicating a new debt acquisition[22]. - Trade receivables decreased to HK$36.87 million as of June 30, 2020, from HK$45.07 million as of December 31, 2019, reflecting a reduction of 18.5%[58]. - Trade payables decreased to HK$27.63 million as of June 30, 2020, from HK$39.64 million as of December 31, 2019, a decline of 30.4%[64]. Cash Flow - The company generated net cash from operating activities of HK$18,300,000 for the six months ended June 30, 2020, compared to a cash outflow of HK$12,379,000 in the same period of 2019[27]. - The net cash used in investing activities was HK$71,133,000 for the first half of 2020, a significant decrease from the cash generated of HK$17,341,000 in 2019[27]. - Financing activities generated net cash of HK$45,791,000 in the first half of 2020, compared to a cash outflow of HK$10,055,000 in the previous year[27]. - The company's cash and cash equivalents decreased to HK$14,346,000 at the end of June 2020, down from HK$35,946,000 at the end of June 2019[27]. - As of June 30, 2020, the Group had cash and cash equivalents of approximately HK$14.36 million, down from HK$35.95 million as of June 30, 2019[95]. Revenue Sources - Revenue from Hong Kong increased to HK$15,281,000 in the first half of 2020, a 105% increase from HK$7,457,000 in 2019[42]. - Revenue from India dropped significantly to HK$1,112,000 in 2020, down 92% from HK$14,838,000 in 2019[42]. Operational Insights - The company has been engaged in the design and development, manufacturing, and distribution of watch products on an original design manufacturing (ODM) basis[30]. - The company operates primarily in the manufacturing and trading business of watches, with no separate reportable segments identified[39]. - The Group plans to focus on core business and enhance product design and development capabilities, including the introduction of Augmented Reality (AR) technology[87]. - The Group expects a slow recovery in the global economy and its business as COVID-19 is contained in China and Europe, but still faces short-term sales pressure[86]. Expenses - Selling and distribution expenses decreased by approximately 27.45% compared to the same period in 2019, mainly due to reduced packing and exhibition expenses[88]. - Administrative expenses decreased by approximately 11.63%, primarily due to lower professional, advertising, and staff costs[88]. - Finance costs increased by approximately HK$2.25 million, an increase of 11.51% compared to the same period in 2019, mainly due to increased bank borrowings[88]. Corporate Governance - The company has established an Audit Committee on June 20, 2018, in compliance with GEM Listing Rules, with members including Mr. Yu Sau Ning Homer M.H., Mr. Zhao Zhipeng, and Ms. Yee Wai Fong Wendy[155]. - The Audit Committee's primary duties include recommending the appointment and removal of external auditors, reviewing financial statements, and overseeing internal control procedures[156]. - The company believes that the management structure, where the roles of chairman and CEO are held by Mr. Cheuk Sin Cheong Clement, is effective for operations and provides solid leadership[149]. - The company has adopted a code of conduct regarding securities transactions by Directors, ensuring compliance with GEM Listing Rules throughout the period[151]. - The company confirms that all Directors complied with the required standards of dealings regarding securities transactions during the reporting period[153]. - The report contains forward-looking statements regarding the financial conditions and business strategy of the Group, which are subject to risks and uncertainties[158]. - The company has met the provisions of the Corporate Governance Code throughout the reporting period, with specified deviations explained[148]. - The company emphasizes the importance of checks and balances in its management structure despite the deviation from the Corporate Governance Code[150]. Employment and Shareholding - The Group had a total of 147 employees as of June 30, 2020, down from 161 employees as of June 30, 2019[104]. - The Group did not declare an interim dividend for the period, consistent with the previous year[93]. - As of June 30, 2020, Mr. Cheuk and Mrs. Cheuk each hold a beneficial interest of 1 ordinary share, representing 50% of the total shares in the associated corporation Million Easy[123]. - Million Easy holds a long position of 620,000,000 ordinary shares, accounting for 62% of the total shares of the Company as of June 30, 2020[128]. Investments and Acquisitions - During the reporting period, the Company and its subsidiaries did not purchase, sell, or redeem any of the Company's listed securities[131]. - There were no significant investments, material acquisitions, or disposals of subsidiaries, associates, and joint ventures by the Company during the reporting period[132]. - The Group did not have plans for material investments or capital assets for the coming year, aside from those disclosed in the prospectus dated June 28, 2018[133]. Share Option Scheme - The Company has a share option scheme valid for 10 years, expiring on June 19, 2028, to incentivize and retain high-caliber employees[134]. - No share options have been granted since the adoption of the share option scheme during the six months ended June 30, 2019, and 2020[141]. - The total number of shares for which options may be granted under the scheme cannot exceed 10% of the shares in issue at any time without prior shareholder approval[140]. - None of the Directors or substantial shareholders engaged in any business that competes with the Group during the reporting period[142]. - As of June 30, 2020, the compliance adviser TC Capital had no interest in the securities of the Company[143].

Financial Performance - Revenue for the three months ended March 31, 2020, amounted to approximately HK$20.60 million, representing a decrease of approximately 43.50% compared to HK$36.46 million for the same period in 2019[8]. - Loss attributable to owners of the Company for the three months ended March 31, 2020, was approximately HK$7.70 million, compared to HK$3.46 million for the same period in 2019[8]. - Basic loss per share for the three months ended March 31, 2020, was approximately HK0.77 cent, compared to HK0.35 cent for the same period in 2019[8]. - Gross profit for the three months ended March 31, 2020, was approximately HK$6.19 million, down from HK$10.47 million in the same period of 2019[10]. - Total comprehensive loss for the period ended March 31, 2020, was approximately HK$6.57 million, compared to a total comprehensive loss of HK$2.91 million for the same period in 2019[10]. - Administrative expenses for the three months ended March 31, 2020, were approximately HK$11.98 million, compared to HK$11.55 million for the same period in 2019[10]. - Finance costs for the three months ended March 31, 2020, were approximately HK$1.07 million, slightly up from HK$1.02 million in the same period of 2019[10]. - Other income, gains, and losses for the three months ended March 31, 2020, were a loss of approximately HK$64, compared to a loss of HK$306 for the same period in 2019[10]. Revenue Breakdown - Revenue from finished watches was HK$12,408,000, down 43.8% from HK$22,085,000 in 2019[32]. - Revenue from SKD kits decreased by 51.3% to HK$6,779,000 from HK$13,913,000 in 2019[32]. - Revenue from watch parts increased to HK$1,416,000, up 203.0% from HK$465,000 in 2019[32]. - Revenue from Hong Kong increased to HK$7,702,000, up 126.8% from HK$3,407,000 in 2019[28]. - Revenue from Brazil decreased by 24.9% to HK$5,561,000 from HK$7,399,000 in 2019[28]. Equity and Capital Structure - The balance at March 31, 2020, showed total equity of approximately HK$56.41 million, down from HK$74.15 million at March 31, 2019[11]. - The authorized share capital of the Company was increased from HK$380,000 to HK$10,000,000 by creating an additional 9,962,000,000 shares[14]. - The total amount utilized from the net proceeds since the listing was HK$34.47 million, with HK$33.97 million already used by March 31, 2020[82]. Cash Flow and Financial Ratios - As of 31 March 2020, the Group had cash and cash equivalents of approximately HK$28.35 million, down from HK$37.61 million as of 31 March 2019[61]. - The current ratio was approximately 1.05 times as of 31 March 2020, compared to 1.21 times as of 31 March 2019[61]. - The gearing ratio, calculated as total bank borrowings as a percentage of total equity, was approximately 170.38% as of March 31, 2020, up from 115.54% as of March 31, 2019[66]. Employment and Corporate Governance - The Group had a total of 147 employees as of March 31, 2020, down from 170 employees as of March 31, 2019[71]. - The Company has complied with the Corporate Governance Code throughout the period, except for the deviation regarding the roles of chairman and CEO being held by the same individual[112]. - The Company has established an Audit Committee to oversee financial reporting and internal control procedures, ensuring compliance with GEM Listing Rules[119]. Market Conditions and Future Outlook - The Group expects a slow recovery in business as COVID-19 is contained in China and other regions, but short-term sales pressure remains[53]. - The HKTDC Export Index for timepieces fell from 35.5 in Q1 2019 to 13.9 in Q1 2020, indicating a significant decline in export confidence[52]. - The outbreak of COVID-19 has introduced uncertainties that may impact the Group's financial performance, although the extent of the impact cannot be reasonably estimated at this stage[74]. Shareholding and Securities Transactions - As of March 31, 2020, Mr. Cheuk Sin Cheong and Ms. Au Corona Ching Mei each hold 750,000,000 ordinary shares, representing 75% of the total shares of the Company[87]. - Million Easy Enterprises Ltd. holds a beneficial interest in 750,000,000 shares, which is also 75% of the total shares of the Company[96]. - During the reporting period, the Company did not purchase, sell, or redeem any of its listed securities[97]. Compliance and Internal Controls - The Audit Committee reviewed the unaudited consolidated results for the Period, confirming they were prepared in compliance with applicable accounting standards[121]. - The Company confirms that all Directors complied with the required standards of dealings regarding securities transactions during the Period[117]. - The Company adopted a code of conduct for securities transactions by Directors, ensuring compliance with GEM Listing Rules throughout the Period[115].

Revenue and Financial Performance - For the year ended December 31, 2019, the Group's revenue amounted to approximately HK$198.05 million, an increase of approximately 8.53% compared to the corresponding period of 2018[17]. - The increase in revenue is primarily attributed to increased sales orders from the Southeast Asia market[17]. - For the year ended December 31, 2019, the Group's revenue amounted to approximately HK$198.05 million, an increase of approximately 8.53% compared to HK$182.48 million for the year ended December 31, 2018[30]. - The cost of sales increased by approximately HK$19.89 million or 15.56% from approximately HK$127.85 million in 2018 to approximately HK$147.74 million in 2019[38]. - Gross profit decreased by approximately HK$4.32 million or 7.91%, from approximately HK$54.63 million in 2018 to approximately HK$50.31 million in 2019, leading to a gross profit margin decline from 29.94% to 25.40%[39]. - Selling and distribution expenses decreased by approximately HK$0.65 million or 10.85% from approximately HK$5.99 million in 2018 to approximately HK$5.34 million in 2019[40]. - Administrative expenses increased by approximately HK$15.88 million or 41.70% from approximately HK$38.08 million in 2018 to approximately HK$53.96 million in 2019[46]. - The Group recorded a loss before taxation of approximately HK$13.87 million for the year ended December 31, 2019, compared to a loss of approximately HK$4.50 million in 2018[48]. - The loss for the year amounted to approximately HK$14.55 million for 2019, compared to a loss of approximately HK$7.10 million in 2018[50]. Economic Environment and Market Outlook - The Hong Kong Trade Development Council's Export Index fell from 35.2 in Q4 2018 to 18.8 in Q4 2019, indicating a significant decline in export sentiment[18]. - All major industry sub-indices remained below the neutral mark of 50, reflecting pervasive pessimism across export sectors[18]. - The timepieces sector recorded an index of 15.5 in Q4 2019, marking a new all-time low[18]. - The world economy is expected to experience a modest rebound in 2020 following its weakest performance since the global financial crisis[19]. - However, the outbreak of COVID-19 is anticipated to adversely impact global economic growth, with significant challenges to social and economic activities[20]. - Market sentiment has been somewhat boosted by positive developments in US-China trade negotiations and central banks adopting accommodative monetary policies[19]. - The Group acknowledges that 2020 will be a challenging year due to the ongoing pandemic and its effects on economic activities[20]. - The Group's future outlook remains cautious amid the uncertainties posed by the global economic environment[19]. Cash Flow and Financial Position - As of December 31, 2019, the group had cash and cash equivalents of approximately HK$22.19 million, down from HK$40.33 million in 2018[61]. - The current ratio as of December 31, 2019, was 1.09 times, compared to 1.22 times as of December 31, 2018[61]. - The gearing ratio as of December 31, 2019, was approximately 134.86%, an increase from 102.41% in 2018[62]. Corporate Governance and Management - The Company has complied with the Corporate Governance Code during the year ended December 31, 2019, except for specified deviations[112]. - The roles of chairman and chief executive officer are held by the same individual, Mr. Cheuk Sin Cheong Clement, which the Board believes strengthens leadership and allows for efficient business planning[119]. - The company has adopted a board diversity policy considering factors such as gender, age, cultural background, and professional experience to achieve board diversity[142]. - The company confirms compliance with the Corporate Governance Code, except where otherwise stated, for the year ended December 31, 2019[128]. - The Board is responsible for overall business plans and strategies, monitoring business performance, and supervising management[130]. - The company has established an Audit Committee consisting of three independent non-executive Directors to oversee financial reporting and risk management[159]. - The Audit Committee reviewed the annual results and financial statements for the year ended December 31, 2019, and interim results for the three, six, and nine months ended March 31, June 30, and September 30, 2019[160]. - The company has established a formal and transparent procedure for developing remuneration policies for Directors and senior management[161]. Future Plans and Investments - The Group intends to strengthen product design and development capabilities to maximize long-term shareholder returns while observing market trends[25]. - A non-legally binding memorandum of understanding was signed on March 26, 2020, to acquire 51% of Innovative Corporate Development Limited, which is engaged in the production and sale of disposable face masks[81]. - The Group has utilized HK$21.63 million for the acquisition of new production facilities and HK$2.2 million for strengthening design capabilities as of December 31, 2019[83]. - The Group plans to continue hiring new graphic designers and R&D staff in 2020 to expand its e-commerce customer base[88]. - A new Metal 3D printer was purchased for approximately HK$2.1 million to enhance design capabilities[88]. - The Group deposited RMB17.93 million (approximately HK$20.44 million) for the acquisition of a new factory in Shenzhen, with a total purchase price of RMB27.93 million (approximately HK$31.84 million)[88]. - The acquisition of the new factory is pending due to the outbreak of COVID-19, affecting the timeline for obtaining property ownership[88]. - The Group has not made any significant investments or material acquisitions beyond those disclosed in the annual report for the year ended December 31, 2019[90]. Shareholder and Dividend Policy - The Board does not recommend the payment of a final dividend for the year ended December 31, 2019, consistent with the previous year[111]. - The Board aims to balance shareholder interests with prudent capital management through a sustainable dividend policy, considering actual and expected financial performance, retained earnings, and economic conditions[198]. - The Board will review the dividend policy periodically, taking into account business strategies, future cash commitments, and capital requirements[198]. - The Group ensures that announcements are not misleading and present a clear view of both positive and negative facts[195]. - Shareholders holding at least one-tenth of the paid-up capital have the right to requisition an extraordinary general meeting, which must be held within two months of the request[199].

Financial Performance - Revenue for the nine months ended September 30, 2019, was approximately HK$137.84 million, representing an increase of approximately 20.14% compared to HK$114.73 million for the same period in 2018[8]. - Loss attributable to owners of the Company for the nine months ended September 30, 2019, was approximately HK$2.09 million, a decrease from a loss of approximately HK$7.53 million for the same period in 2018[8]. - Basic loss per share for the nine months ended September 30, 2019, was approximately HK0.21 cent, improved from HK0.75 cent for the same period in 2018[8]. - Gross profit for the nine months ended September 30, 2019, was approximately HK$43.02 million, compared to HK$39.65 million for the same period in 2018, indicating a growth of approximately 8.93%[10]. - Profit before taxation for the nine months ended September 30, 2019, was a loss of HK$1.21 million, an improvement from a loss of HK$5.87 million for the same period in 2018[10]. - Total comprehensive income for the period attributable to owners of the Company was a loss of HK$1.09 million for the nine months ended September 30, 2019, compared to a loss of HK$7.93 million for the same period in 2018[10]. - The Company reported a gross profit margin of approximately 31.2% for the nine months ended September 30, 2019, compared to 34.5% for the same period in 2018[10]. Revenue Breakdown - Revenue from finished watches for the three months ended 30 September 2019 was HK$41.91 million, up from HK$27.75 million in the same period of 2018, indicating a growth of approximately 51.1%[30]. - Revenue from SKD kits for the nine months ended 30 September 2019 was HK$39.32 million, compared to HK$24.10 million in the same period of 2018, reflecting an increase of approximately 63.3%[30]. - The Group's revenue from Indonesia for the three months ended 30 September 2019 was HK$27.50 million, significantly higher than HK$8.14 million in the same period of 2018, marking an increase of approximately 237.5%[30]. - The Group's revenue from Brazil for the three months ended 30 September 2019 was HK$7.23 million, a decrease from HK$8.54 million in the same period of 2018, indicating a decline of approximately 15.4%[30]. - Revenue from watch parts for the nine months ended September 30, 2019, was HK$2.32 million, down from HK$4.55 million in the same period of 2018, reflecting a decrease of approximately 48.9%[30]. - The Group's revenue for the nine months ended September 30, 2019, was approximately HK$137.84 million, representing an increase of about 20.14% compared to the same period in 2018, primarily due to increased sales orders from the Southeast Asian market[52]. Expenses and Costs - Selling and distribution expenses for the nine months ended September 30, 2019, were approximately HK$4.17 million, a slight decrease from HK$4.36 million for the same period in 2018[10]. - Administrative expenses increased to approximately HK$37.25 million for the nine months ended September 30, 2019, from HK$26.87 million for the same period in 2018[10]. - Depreciation of property, plant, and equipment for the nine months ended September 30, 2019, was HK$3.43 million, slightly up from HK$3.34 million in the same period of 2018[32]. - Selling and distribution expenses decreased by approximately 4.36% compared to the same period in 2018, mainly due to reduced commissions from sales to European customers[56]. - Administrative expenses increased by approximately 38.61%, primarily due to higher professional compliance costs and staff costs[56]. Financial Position - As of September 30, 2019, the retained earnings stood at HK$22,141,000, reflecting a decrease from HK$24,233,000 as of December 31, 2018[11]. - As of September 30, 2019, the Group had cash and cash equivalents of approximately HK$35.27 million, down from HK$42.99 million as of September 30, 2018[59]. - The current ratio was approximately 1.24 times as of September 30, 2019, compared to 1.23 times as of September 30, 2018[59]. - The gearing ratio was approximately 84% as of September 30, 2019, calculated by total bank borrowings as a percentage of total equity[60]. - The Group had no capital commitments as of September 30, 2019, and its operating lease commitment amounted to approximately HK$2.6 million[66]. Share Capital and Equity - The Company successfully listed on the GEM of the Stock Exchange on July 12, 2018, raising approximately HK$34,470,000 from the share offer[13]. - The authorized share capital was increased from HK$380,000 to HK$10,000,000 by creating an additional 9,962,000,000 shares[13]. - The company issued 25,000,000 public offer shares and 225,000,000 placing shares at an offer price of HK$0.25 per share during its listing[13]. - The total equity as of September 30, 2018, was HK$76,311,000, which increased to HK$77,062,000 by December 31, 2018[11]. - The company incurred transaction costs of HK$10,156,000 related to the issuance of new shares[11]. Corporate Governance - The audit committee was established on June 20, 2018, and is responsible for reviewing financial statements and overseeing internal control procedures[115]. - The financial information in the report has not been audited, but the audit committee reviewed the unaudited consolidated results and deemed them compliant with applicable accounting standards[117]. - The audit committee's primary responsibilities include recommending the appointment and removal of external auditors, reviewing financial statements, and overseeing the group's internal control procedures[120]. Future Outlook - The Group expects to acquire a production facility in Shenzhen by 31 December 2019[85]. - The report contains forward-looking statements regarding the financial conditions and business strategy of the group, which are subject to risks and uncertainties[118]. - Forward-looking statements in the report are based on various assumptions regarding the group's current and future business strategies and operating environment[121]. - The forward-looking statements reflect the group's current views on future events but are not guarantees of future performance and are subject to risks and uncertainties[121].

Financial Performance - Revenue for the six months ended June 30, 2019, amounted to approximately HK$84.60 million, representing an increase of approximately 9.88% compared to HK$76.99 million for the same period in 2018[10]. - Loss attributable to owners of the Company for the Period amounted to approximately HK$6.83 million, compared to a loss of approximately HK$2.98 million for the same period in 2018[10]. - Basic loss per share for the Period was approximately HK0.68 cents, an increase from approximately HK0.40 cents for the six months ended June 30, 2018[10]. - Gross profit for the six months ended June 30, 2019, was approximately HK$22.30 million, slightly down from HK$22.74 million for the same period in 2018[13]. - Total comprehensive loss for the period attributable to owners of the Company was approximately HK$6.47 million, compared to HK$2.85 million for the same period in 2018[13]. - The Company reported a loss before taxation of approximately HK$6.75 million for the six months ended June 30, 2019, compared to a profit of approximately HK$2.47 million for the same period in 2018[13]. - Other income, gains, and losses for the six months ended June 30, 2019, resulted in a net loss of approximately HK$188,000, compared to a gain of approximately HK$1.07 million for the same period in 2018[13]. - Selling and distribution expenses for the six months ended June 30, 2019, were approximately HK$2.47 million, a decrease from HK$2.66 million for the same period in 2018[13]. - The company reported a net loss arising from the disposal of financial assets at fair value through profit or loss of HK$1.28 million for the six months ended June 30, 2019[38]. Assets and Liabilities - As of June 30, 2019, total assets amounted to HK$175,248,000, a decrease from HK$201,973,000 as of December 31, 2018, representing a decline of approximately 13%[14]. - Current liabilities decreased to HK$103,055,000 from HK$123,306,000, reflecting a reduction of about 16%[14]. - Net assets as of June 30, 2019, were HK$70,588,000, down from HK$77,062,000 at the end of 2018, indicating a decrease of approximately 8%[15]. - Trade receivables decreased to HK$34,555,000 from HK$43,474,000, a decline of about 20%[14]. - Trade payables decreased to HK$29.81 million as of June 30, 2019, from HK$34.89 million as of December 31, 2018, representing a decline of approximately 14.5%[59]. - Bills payables also decreased to HK$25.52 million as of June 30, 2019, down from HK$34.07 million as of December 31, 2018, indicating a reduction of approximately 25.1%[64]. Cash Flow - The company reported a net cash outflow from operating activities of HK$12,379,000 for the six months ended June 30, 2019, compared to a cash inflow of HK$16,188,000 in the same period of 2018[20]. - Cash and cash equivalents at the end of the period were HK$35,946,000, down from HK$40,333,000 at the beginning of the period, marking a decrease of about 11%[20]. - As of June 30, 2019, the Group had cash and cash equivalents of approximately HK$35.95 million, up from HK$8.42 million as of June 30, 2018[82][87]. Revenue Breakdown - Revenue from Hong Kong decreased significantly to HK$7.46 million, down 69.5% from HK$24.36 million in 2018[34]. - Revenue from India increased substantially to HK$14.84 million, up 70.5% from HK$8.73 million in 2018[34]. - The geographical revenue breakdown indicates that Brazil contributed HK$9.04 million, while the UAE contributed HK$1.79 million, both showing varying trends compared to 2018[34]. Expenses - Administrative expenses increased to approximately HK$24.38 million for the six months ended June 30, 2019, compared to HK$15.94 million for the same period in 2018[13]. - Selling and distribution expenses decreased by approximately 6.96% compared to the same period in 2018, mainly due to a reduction in commissions to European customers[76][78]. - Administrative expenses increased by approximately 52.93%, primarily due to higher professional compliance expenses and staff costs[76][78]. Shareholder Information - The company’s share capital remained unchanged at HK$10,000,000 as of June 30, 2019[15]. - As of June 30, 2019, Mr. Cheuk and Mrs. Cheuk each held a long position of 750,000,000 shares, representing 75% of the total shares[107]. - Million Easy Enterprises Ltd. holds a beneficial interest in 750,000,000 shares, also representing 75% of the total shares[116]. Corporate Governance - The company has established an Audit Committee to oversee financial reporting and internal control procedures, comprising three members[139]. - The Audit Committee reviewed the unaudited consolidated results for the period and confirmed compliance with applicable accounting standards and GEM Listing Rules[141]. - The company believes that the current management structure, with the chairman also serving as CEO, is effective for operations and provides solid leadership[133]. - The company confirms that all directors complied with the required standards of dealings regarding securities transactions throughout the period[135]. - The company has adopted a code of conduct for directors' securities transactions that meets or exceeds GEM Listing Rules standards[137]. Future Outlook - Forward-looking statements in the report are based on numerous assumptions regarding the company's future business strategy and environment, and are subject to risks and uncertainties[142]. - The company has no major investment or capital asset plans for the upcoming year, aside from those disclosed in the prospectus published on June 28, 2018[127].

Financial Performance - Revenue for the three months ended March 31, 2019, amounted to approximately HK$36.46 million, representing an increase of approximately 4.98% compared to HK$34.73 million for the same period in 2018[8] - Loss attributable to owners of the Company for the three months ended March 31, 2019, was approximately HK$3.46 million, a slight improvement from a loss of approximately HK$3.61 million for the same period in 2018[8] - Basic loss per share for the three months ended March 31, 2019, was approximately HK0.35 cent, compared to HK0.36 cent for the same period in 2018[8] - Gross profit for the three months ended March 31, 2019, was approximately HK$10.47 million, down from HK$11.18 million in the same period of 2018, reflecting a decrease of approximately 6.36%[10] - Total comprehensive loss for the period attributable to owners of the Company was approximately HK$2.91 million for the three months ended March 31, 2019, compared to HK$2.88 million for the same period in 2018[10] - The Company reported a loss before taxation of approximately HK$3.43 million for the three months ended March 31, 2019, compared to a loss of approximately HK$3.41 million for the same period in 2018[10] - Other income, gains, and losses resulted in a net loss of approximately HK$306,000 for the three months ended March 31, 2019, compared to a gain of HK$299,000 in the same period of 2018[10] - The company reported a loss before taxation of HK$1,209,000 for the three months ended March 31, 2019, compared to a loss of HK$1,058,000 for the same period in 2018[32] Revenue Breakdown - Revenue from finished watches decreased to HK$22,085,000 in Q1 2019 from HK$24,683,000 in Q1 2018, a decline of approximately 10.5%[30] - Revenue from SKD kits increased significantly to HK$13,913,000 in Q1 2019 from HK$8,996,000 in Q1 2018, marking a growth of approximately 54%[30] - The geographical revenue breakdown shows that the largest contribution came from Brazil at HK$7,399,000, followed by Hong Kong at HK$3,407,000[26] Expenses and Costs - Administrative expenses increased to approximately HK$11.55 million for the three months ended March 31, 2019, compared to HK$8.17 million for the same period in 2018, representing an increase of approximately 41.00%[10] - Selling and distribution expenses decreased approximately 29.60% compared to the same period in 2018, primarily due to reduced commissions to European customers[50] - The Company incurred finance costs of approximately HK$1.02 million for the three months ended March 31, 2019, slightly down from HK$1.12 million for the same period in 2018[10] Equity and Assets - The balance at March 31, 2019, showed total equity of approximately HK$74.15 million, a decrease from HK$77.06 million at December 31, 2018[11] - As of March 31, 2019, the Group had cash and cash equivalents of approximately HK$37.61 million, up from HK$12.80 million as of March 31, 2018[59] - The total value of assets pledged to secure the Group's banking facilities was HK$77.554 million, including property, plant, and equipment valued at HK$24.029 million and pledged bank deposits of HK$21.701 million[69] Corporate Governance - The Company has complied with the Corporate Governance Code throughout the three months ended March 31, 2019, with a noted deviation regarding the roles of chairman and CEO[112] - The Audit Committee was established on June 20, 2018, and is responsible for reviewing financial statements and overseeing internal control procedures[119] - The financial information in the report has not been audited, but the Audit Committee reviewed the unaudited consolidated results for the three months ended March 31, 2019[121] Future Outlook - The Group intends to focus on core business and strengthen product design and development capabilities to maximize long-term returns for shareholders[49] - The report contains forward-looking statements regarding the Group's financial conditions and business strategy, which are subject to risks and uncertainties[122] - The forward-looking statements reflect the group's current views on future events and are subject to risks and uncertainties[125] Share Capital and Ownership - The company has been listed on the GEM of the Stock Exchange since July 12, 2018, with net proceeds from the share offer amounting to approximately HK$34,500,000[12] - The company’s authorized share capital was increased to HK$10,000,000 with the creation of an additional 9,962,000,000 shares as of June 20, 2018[12] - Directors Mr. Cheuk and Ms. Au each held a long position of 750,000,000 shares, representing 75% of the total shares[86] - As of March 31, 2019, Million Easy holds a beneficial interest of 750,000,000 ordinary shares, representing 75% of the total shares[95] Employee Information - The Group employed a total of 170 employees as of March 31, 2019, with an annual review system in place for performance assessment[76] Miscellaneous - The Group had no material contingent liabilities as of March 31, 2019, consistent with the previous year[71] - There were no significant events occurring after the reporting period that would impact the Group[77] - The Group did not engage in any derivatives or hedging activities related to foreign exchange risk during the reporting period[70] - The Group's purchases were primarily in Hong Kong Dollars, while sales were predominantly in United States Dollars, Renminbi, and Hong Kong Dollars[69] - During the three months ended March 31, 2019, the Company and its subsidiaries did not purchase, sell, or redeem any of the Company's listed securities[96] - There were no significant investments, material acquisitions, or disposals of subsidiaries and associated companies during the three months ended March 31, 2019[100] - The Company has no plans for material investments or capital assets as of the date of this report, aside from what is disclosed in the Prospectus[101] - The Share Option Scheme was approved on June 20, 2018, but no share options have been granted since its adoption[102]

Financial Performance - The revenue of Hanvey Group Holdings Limited in 2018 increased approximately 4.4% compared to 2017[16] - The Group's revenue for the year ended December 31, 2018, was approximately HK$182.48 million, representing an increase of approximately 4.4% compared to HK$174.82 million in 2017[27][35] - The gross profit increased by approximately HK$3.61 million or 7.1%, from approximately HK$51.02 million in 2017 to approximately HK$54.63 million in 2018, with a gross profit margin rising from 29.2% to 29.9%[37][42] - The Group incurred listing expenses of approximately HK$13.05 million in 2018, which contributed to a net loss of approximately HK$7.10 million for the year, compared to a profit of approximately HK$3.96 million in 2017[30][50] - After excluding listing expenses, the net profit would be approximately HK$5.94 million, representing a decrease of 32.3% compared to 2017[17] - The Group recorded a loss before taxation of approximately HK$4.50 million in 2018, compared to a profit before taxation of approximately HK$6.02 million in 2017[48][53] - The income tax expenses increased by approximately HK$0.54 million or 26.6%, from approximately HK$2.06 million in 2017 to approximately HK$2.60 million in 2018[49][54] Business Strategy - The company aims to enhance design capabilities by recruiting more design talents and upgrading hardware and software[18] - Hanvey Group is shifting its product focus from quartz watches to automatic mechanical watches to cater to the growing middle-class in emerging markets[19] - The company plans to source more automatic mechanical movement suppliers to secure global supply[19] - The Group plans to enhance design capabilities by recruiting more design talents and upgrading hardware and software for design work in 2019[57] - The Group plans to purchase a new metal 3D printer in 2019 to strengthen its design capabilities[87] Operational Efficiency - Selling and distribution expenses decreased by approximately HK$0.34 million or 5.3%, from approximately HK$6.33 million in 2017 to approximately HK$5.99 million in 2018[38][43] - Administrative expenses increased by approximately HK$6.44 million or 20.3%, from approximately HK$31.64 million in 2017 to approximately HK$38.08 million in 2018, primarily due to higher compliance costs[39][44] - The Group utilized HK$7.4 million to repay bank loans during the year, resulting in a decrease in finance costs by approximately HK$0.57 million or 12.2% from approximately HK$4.71 million in 2017 to approximately HK$4.14 million in 2018[87] Market Conditions - The ongoing Sino-US trade war is expected to continue impacting the global economy in 2019[18] - The Group's diversified customer base helped minimize the impact of the Sino-US trade war in 2018[16] Corporate Governance - The company has complied with the Corporate Governance Code since the Listing Date on July 12, 2018, except for specified deviations[124] - The Board consists of six Directors, including three executive Directors and three independent non-executive Directors[132] - The roles of chairman and chief executive officer are held by Mr. Cheuk Sin Cheong Clement, which the Board believes strengthens leadership and decision-making[118] - The company has adopted a code of conduct regarding securities transactions by Directors, ensuring compliance with GEM Listing Rules from the Listing Date to December 31, 2018[125] - The Board is responsible for the overall business plans and strategies of the Group, including monitoring performance and risk management[126] - The Directors are subject to re-election at least once every three years, with one-third of the Directors retiring by rotation[134] - The company has confirmed that there are no business or interests that compete with the Group's business as of December 31, 2018[112] - The company has engaged Tian Cai Capital International Limited as a compliance advisor since its listing[114] Shareholder Relations - The Board's dividend policy aims to balance shareholder interests with prudent capital management, considering factors such as financial performance and economic conditions[192][195] - The Company promotes investor relations and encourages suggestions from investors and stakeholders[199] - Shareholders holding at least one-tenth of the paid-up capital have the right to requisition an extraordinary general meeting[196] Employee and Board Structure - The Group had a total of 178 employees as of December 31, 2018, with an established annual review system for performance assessment[75][78] - The Company Secretary, Mr. Xie Xing, completed not less than 15 hours of relevant professional training in accordance with GEM Listing Rules during the year ended December 31, 2018[183] - The attendance record of Directors at Board meetings shows that all Executive Directors attended 100% of the meetings held during the period from the Listing Date to December 31, 2018[171] Audit and Compliance - The Audit Committee, comprising three independent non-executive directors, oversees the effectiveness of the company's financial reporting and internal control systems[157] - The Group did not have an internal audit function for the year ended 31 December 2018, but engaged an external consultant to review risk management and internal control systems, which were deemed effective and adequate[188] - The auditors' remuneration for the year ended 31 December 2018 totaled HK$1,000,000, with all fees attributed to audit services[186]