Financial Performance - Revenue for the nine months ended September 30, 2022, was approximately HKD 207.71 million, an increase of about 39.02% compared to HKD 149.41 million for the same period in 2021[6] - Profit attributable to owners of the company for the nine months ended September 30, 2022, was approximately HKD 2.64 million, compared to HKD 2.28 million for the same period in 2021[6] - Basic earnings per share for the nine months ended September 30, 2022, was approximately HKD 1.60 cents, up from HKD 0.23 cents for the same period in 2021[6] - Gross profit for the nine months ended September 30, 2022, was approximately HKD 50.33 million, compared to HKD 43.64 million for the same period in 2021[7] - The company reported a pre-tax profit of approximately HKD 2.57 million for the nine months ended September 30, 2022, compared to HKD 2.96 million for the same period in 2021[7] - Total comprehensive loss for the nine months ended September 30, 2022, was approximately HKD 4.63 million, compared to a total comprehensive income of HKD 4.11 million for the same period in 2021[7] - The group reported a loss attributable to equity holders of approximately HKD 2.64 million for the nine months ended September 30, 2022, compared to a loss of HKD 2.28 million in 2021[25] Revenue Breakdown - Revenue from finished watches for the nine months ended September 30, 2022, was HKD 168.31 million, up 94% from HKD 86.63 million in 2021[17] - Revenue from components for the nine months ended September 30, 2022, decreased to HKD 4.44 million from HKD 38.71 million in 2021, a decline of 88%[17] - Revenue from Indonesia for the nine months ended September 30, 2022, was HKD 124 million, representing a 24% increase from HKD 99.82 million in 2021[15] Expenses and Financial Ratios - The group incurred depreciation expenses of HKD 4.12 million for the nine months ended September 30, 2022, compared to HKD 2.45 million in 2021, an increase of 68%[18] - Sales and distribution expenses rose by approximately 4.55% to about HKD 2.99 million, primarily due to increased freight and transportation costs[37] - Administrative expenses increased by approximately 20.95% to about HKD 43.36 million, mainly due to rising employee salaries[37] - The group's cash and cash equivalents as of September 30, 2022, were approximately HKD 19.26 million, up from HKD 11.64 million as of September 30, 2021[40] - The current ratio as of September 30, 2022, was approximately 1.03, compared to 1.08 as of September 30, 2021[40] - The debt-to-equity ratio as of September 30, 2022, was approximately 170.11%, down from 193% a year earlier[41] Corporate Governance and Shareholder Information - The company has adhered to the corporate governance code as per GEM Listing Rules, with a noted deviation regarding the roles of Chairman and CEO being held by the same individual[65] - The audit committee was established on June 20, 2018, in accordance with GEM Listing Rules and Corporate Governance Code[67] - The audit committee's primary responsibilities include recommending the appointment and removal of external auditors and reviewing financial statements[67] - As of September 30, 2022, the major shareholders include Wan Yi Group Limited holding 93,000,000 shares, representing 56.36% of the total shares[56] - China New Economy Investment Limited holds 30,650,000 shares, accounting for 18.58% of the total shares[56] Future Outlook and Strategic Plans - The company plans to continue expanding its market presence and developing new products in the ODM sector[10] - The company has no major investment or capital asset plans for the upcoming year beyond what has been disclosed in the quarterly report[60] - The management discussion includes forward-looking statements based on current business strategies and assumptions about future operating environments[69] Miscellaneous - The group did not declare any dividends for the nine months ended September 30, 2022, consistent with the previous year[23] - The group has no capital commitments as of September 30, 2022[42] - The group has maintained consistent accounting policies with no significant impact from new or revised Hong Kong Financial Reporting Standards[14] - The financial information in the quarterly report has not been audited but has been reviewed by the audit committee[67] - During the reporting period, the company and its subsidiaries did not purchase, sell, or redeem any listed securities[57] - There were no conflicts of interest or competitive activities reported by directors or major shareholders during the reporting period[63] - The stock option plan approved on June 20, 2018, allows for the issuance of options not exceeding 10% of the total issued shares at any time[61] - No stock options have been granted since the adoption of the plan on June 28, 2018[62] - The group operates primarily in markets including Indonesia, India, Hong Kong, Brazil, and Australia, with significant revenue contributions from these regions[15] - The Hong Kong Trade Development Council's export index rose by 1.9 points to 32.8 in Q3 2022, indicating improved optimism among local exporters[32] - The executive directors as of the report date include Mr. Cheuk Sin Cheung and Ms. Au Ching Mei[69]

Financial Performance - For the six months ended June 30, 2022, the revenue was approximately HKD 134.67 million, an increase of about 39.01% compared to HKD 96.88 million for the same period in 2021[10] - The profit attributable to owners of the company for the same period was approximately HKD 3.58 million, compared to a loss of HKD 1.23 million in the previous year[10] - Basic earnings per share for the six months ended June 30, 2022, was approximately HKD 2.58 cents, compared to a basic loss per share of HKD 0.12 cents for the same period in 2021[10] - Gross profit for the six months was approximately HKD 35.77 million, up from HKD 25.92 million in the previous year, reflecting a gross margin improvement[11] - The company reported a net profit of HKD 3,871,000 for the six months ended June 30, 2022, compared to a net loss of HKD 1,232,000 in the same period of 2021[16] - The company reported a pre-tax profit of approximately HKD 3.87 million for the six months ended June 30, 2022, compared to HKD 1.23 million in 2021, reflecting a significant increase[29] Revenue Breakdown - Revenue from Indonesia was HKD 79,143,000 for the six months ended June 30, 2022, a 23% increase from HKD 64,273,000 in the same period of 2021[25] - The revenue from finished watches was HKD 109.38 million for the six months ended June 30, 2022, compared to HKD 53.26 million in 2021, representing a 105% increase[26] - The group's revenue for the six months ended June 30, 2022, was approximately HKD 134.67 million, an increase of about 39.01% compared to the same period in 2021[44] Asset and Liability Management - Total assets as of June 30, 2022, were approximately HKD 171.98 million, compared to HKD 137.57 million at the end of 2021, showing growth in asset base[12] - Current liabilities increased to HKD 182.80 million as of June 30, 2022, from HKD 158.91 million at the end of 2021, indicating potential liquidity challenges[12] - The company reported a net current liability of HKD 10.82 million, an improvement from HKD 21.35 million in the previous year[12] - The company's net asset value increased to HKD 46,460,000 as of June 30, 2022, up from HKD 38,970,000 at the end of 2021, reflecting a growth of 19%[14] Cash Flow and Financing - The company's net cash from operating activities for the six months ended June 30, 2022, was HKD 2,228,000, compared to a net cash outflow of HKD 9,752,000 in the same period of 2021[18] - Financing activities generated a net cash inflow of HKD 8,961,000 for the six months ended June 30, 2022, compared to HKD 3,221,000 in the same period of 2021[18] - Cash and cash equivalents increased to HKD 13,479,000 as of June 30, 2022, from HKD 9,350,000 at the end of 2021, marking a growth of 44%[18] Operational Insights - The company operates primarily in the ODM segment, focusing on the design, development, manufacturing, and distribution of watch products[23] - The company plans to continue expanding its market presence and developing new products to drive future growth[10] - The management expressed optimism about future performance, citing ongoing strategic initiatives and market opportunities[10] Shareholder and Governance - The company raised its share capital to HKD 15,000,000 as of June 30, 2022, from HKD 10,000,000 at the end of 2021, indicating a 50% increase[16] - As of June 30, 2022, the major shareholders, Mr. Chok and Mrs. Chok, hold 93,000,000 shares, representing 62% of the total shares of the company[65] - The beneficial ownership of shares by the associated corporation, Wan Yi, is also 93,000,000 shares, representing 62%[68] - The board believes that the current management structure, with Mr. Chok serving as both Chairman and CEO, is beneficial for the company's operations[76] Audit and Compliance - The Audit Committee was established on June 20, 2018, in accordance with GEM Listing Rules, with members including Mr. Yu Shou Ning, Mr. Zhao Zhi Peng, and Ms. Yu Hui Fang[79] - The Audit Committee's primary responsibilities include recommending the appointment and removal of external auditors, reviewing financial statements, and overseeing internal control procedures[79] - The interim report's financial data has not been audited but has been reviewed by the Audit Committee, which believes the performance is prepared in accordance with applicable accounting standards[79] Future Outlook - The group plans to focus on developing its core business and improving product design and development capabilities to maximize long-term returns for shareholders[46] - The interim report contains forward-looking statements based on various assumptions regarding the group's current and future business strategies and operating environment[80] - The forward-looking statements reflect the group's views on future events but are not guarantees of future performance and are subject to risks and uncertainties[80]

Financial Performance - Revenue for the three months ended March 31, 2022, was approximately HKD 57.95 million, an increase of about 40.89% compared to HKD 41.13 million for the same period in 2021[6] - Profit attributable to owners of the company for the three months ended March 31, 2022, was approximately HKD 0.96 million, compared to a loss of approximately HKD 3.14 million for the same period in 2021[6] - Basic earnings per share for the three months ended March 31, 2022, was approximately HKD 0.64 cents, compared to a loss of HKD 0.31 cents per share for the same period in 2021[6] - Gross profit for the three months ended March 31, 2022, was approximately HKD 15.88 million, compared to HKD 11.68 million for the same period in 2021[7] - The total comprehensive loss for the three months ended March 31, 2022, was approximately HKD 4.78 million, compared to a loss of HKD 8.60 million for the same period in 2021[7] - The company reported a pre-tax profit of approximately HKD 0.83 million for the three months ended March 31, 2022, compared to a pre-tax loss of approximately HKD 3.14 million for the same period in 2021[7] - For the three months ended March 31, 2022, the group recorded a gross profit of approximately HKD 15.88 million, an increase of about 35.95% compared to the same period in 2021[39] Revenue Breakdown - The revenue breakdown by geographic location shows significant contributions from Indonesia (HKD 37.11 million), India (HKD 5.43 million), and Hong Kong (HKD 6.64 million) for the three months ended March 31, 2022[16] - The sales of finished watches amounted to HKD 47.22 million, while components and parts generated HKD 8.94 million and HKD 1.80 million, respectively, for the same period[18] Expenses and Costs - The company’s administrative expenses for the three months ended March 31, 2022, were approximately HKD 13.92 million, compared to HKD 13.00 million for the same period in 2021[7] - The company’s financial costs for the three months ended March 31, 2022, were approximately HKD 1.31 million, compared to HKD 1.21 million for the same period in 2021[7] - Administrative expenses increased by approximately HKD 0.92 million or about 7.08% to approximately HKD 13.92 million for the period, primarily due to rising legal, professional fees, and employee costs[39] - The depreciation expense for property, plant, and equipment was HKD 1.42 million for the three months ended March 31, 2022, compared to HKD 1.25 million in the previous year[19] Equity and Capital - The company’s total equity as of March 31, 2022, was approximately HKD 44.19 million, an increase from HKD 31.22 million as of March 31, 2021[8] - The company issued new shares during the period, increasing its share capital to HKD 15 million[8] - The total amount raised from the rights issue was approximately HKD 11 million, with a net amount of approximately HKD 10 million after expenses[45] - Approximately HKD 7 million of the net proceeds from the rights issue is intended for repaying bank loans, and approximately HKD 3 million for general working capital[45] Market Outlook - The company anticipates a recovery in the watch market in 2022, driven by improved growth prospects in major external economies and the easing of public health measures due to the rollout of COVID-19 vaccines[35] - The Hong Kong Trade Development Council's export index fell to 24.7 in Q1 2022, indicating a significant decline in export confidence among local exporters compared to 39.0 in Q1 2021[34] Governance and Compliance - The company’s board believes that the current management structure is effective despite deviations from corporate governance codes[70] - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with trading regulations[73] - The audit committee was established on June 20, 2018, in accordance with GEM listing rules, with members including Mr. Yu Shou Ning, Mr. Zhao Zhi Peng, and Ms. Yu Hui Fang[74] - The audit committee's primary responsibilities include recommending the appointment and dismissal of external auditors, reviewing financial statements, and overseeing internal control procedures[74] - The financial information in the quarterly report has not been audited but has been reviewed by the audit committee, which believes it complies with applicable accounting standards and GEM listing rules[74] Shareholder Information - As of March 31, 2022, the company’s major shareholders, Mr. Chok and Mrs. Chok, each hold 93,000,000 shares, representing 62% of the total shares[58] Future Plans - The group plans to continue focusing on core business development and improving product design to maximize long-term returns for shareholders[38] - The company has no major investment or capital asset plans for the upcoming year beyond those disclosed in the prospectus published on June 28, 2018[65] Other Information - The group has not reported any tax expenses for the three months ended March 31, 2022, as it is not subject to income tax in the Cayman Islands and British Virgin Islands[21] - The group had no capital commitments as of March 31, 2022[50] - The group had no significant contingent liabilities as of March 31, 2022[56] - The company did not declare any dividends for the three months ended March 31, 2022, consistent with the previous year[24] - The company did not engage in any purchases, sales, or redemptions of its listed securities during the reporting period[63] - There were no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period[64] - The company’s stock option plan, approved on June 20, 2018, allows for the issuance of options up to 10% of the issued shares at any time[67] - No stock options have been granted since the adoption of the stock option plan up to March 31, 2022[68] - The quarterly report contains forward-looking statements based on various assumptions regarding the group's current and future business strategies and operating environment[75] - 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[75]

Financial Performance - The group's revenue for the year ended December 31, 2021, was approximately HKD 204.50 million, representing an increase of about 46.76% compared to the same period in 2020[23]. - The company's revenue increased by approximately HKD 65.16 million or 46.76% to about HKD 204.50 million for the year ended December 31, 2021, compared to approximately HKD 139.34 million for the year ended December 31, 2020[29]. - Gross profit increased by approximately HKD 23.70 million or 71.51% to about HKD 56.84 million for the year ended December 31, 2021[31]. - The company reported a net loss of approximately HKD 2.79 million for the year ended December 31, 2021, compared to a net loss of about HKD 26.21 million for the year ended December 31, 2020[38]. - The company recorded a pre-tax loss reduction of approximately HKD 2.90 million, with a pre-tax loss of about HKD 26.19 million for the year ended December 31, 2020[35]. Economic Outlook - The global economic outlook for 2022 is expected to show moderate recovery, influenced by easing public health measures and vaccine rollouts[18]. - The company aims for gradual growth, largely dependent on the performance of the global economy and the control of the COVID-19 situation[18]. - The company plans to focus on core business and enhance product design and development capabilities to maximize long-term returns for shareholders[19]. COVID-19 Impact - 87.0% of exporters reported negative impacts on their business due to COVID-19, an increase of 20.4 percentage points from the previous quarter[14]. - The company continues to engage with overseas buyers through online exhibitions despite the cancellation or postponement of many international trade fairs due to COVID-19[18]. Shareholder and Capital Management - The company completed a rights issue, issuing a total of 39,598,856 shares, which represents approximately 79.20% of the total shares available for subscription[55]. - The total amount raised from the rights issue, including compensation arrangements, was HKD 11 million, with a net amount of approximately HKD 10 million after expenses[58]. - The company plans to use approximately HKD 7 million of the net proceeds to repay bank loans and borrowings, and approximately HKD 3 million for general working capital[58]. - The board of directors did not recommend a final dividend for the year ended December 31, 2021 (2020: zero)[74]. Corporate Governance - The board consists of six members, including two executive directors and four independent non-executive directors[82]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience[86]. - The company confirmed compliance with the GEM Listing Rules regarding the independence of non-executive directors[91]. - The board believes that the current management structure, with the chairman also serving as CEO, is in the best interest of the company[88]. - The company has implemented sufficient checks and balances despite deviations from the corporate governance code[89]. Risk Management - The board is responsible for maintaining an effective risk management and internal control system, which was reviewed and deemed effective by the audit committee for the year ending December 31, 2021[107]. - The company has appointed an independent internal control consultant to assess its risk management and internal control systems, with the audit committee confirming the system's adequacy[107]. - Financial risks are detailed in the consolidated financial statements, indicating potential vulnerabilities in the company's financial health[169]. Market and Competitive Environment - The competitive environment in the watch manufacturing industry in China is intense, with over 1,000 market participants, impacting pricing and demand significantly[163]. - The company acknowledges that changes in existing laws and regulations, as well as the implementation of new laws, may increase operational costs and limit expansion capabilities[164]. Employee and Customer Relations - Employee management is prioritized, with fair recruitment policies and attractive compensation packages to ensure talent retention and development[158]. - The company actively seeks customer feedback to improve products and services, maintaining effective communication with existing and potential clients[159]. - The company has implemented a supplier management system to ensure quality and customer satisfaction, highlighting the importance of supplier relationships for business performance[160]. Environmental, Social, and Governance (ESG) - The company reported a commitment to sustainable development and compliance with relevant environmental protection laws and regulations[153]. - The board is responsible for the overall governance of the group's environmental, social, and governance (ESG) strategies and reporting[200]. - The company has established an environmental, social, and governance (ESG) report to highlight its performance in these areas[198].

Financial Performance - Revenue for the nine months ended September 30, 2021, was approximately HKD 149.41 million, an increase of about 67.03% compared to HKD 89.45 million for the same period in 2020[7] - Profit attributable to owners of the company for the nine months ended September 30, 2021, was approximately HKD 2.23 million, a turnaround from a loss of HKD 13.68 million in the same period of 2020[7] - Basic earnings per share for the nine months ended September 30, 2021, was approximately HKD 0.23, compared to a loss of HKD 1.37 per share for the same period in 2020[7] - Gross profit for the nine months ended September 30, 2021, was approximately HKD 43.64 million, compared to HKD 23.05 million for the same period in 2020[8] - The company reported a pre-tax profit of approximately HKD 2.96 million for the nine months ended September 30, 2021, compared to a pre-tax loss of HKD 13.68 million in the same period of 2020[8] - Total comprehensive income for the nine months ended September 30, 2021, was approximately HKD 4.11 million, compared to a loss of HKD 10.75 million for the same period in 2020[8] - The company reported a loss attributable to equity holders of approximately HKD 2,280,000 for the nine months ended September 30, 2021, compared to a loss of HKD 13,680,000 in 2020, indicating an improvement in financial performance[27] Revenue Breakdown - Revenue breakdown by product for the nine months ended September 30, 2021, includes finished watches at HKD 86,634,000, up 22% from HKD 71,058,000 in 2020[19] - Revenue from components increased dramatically to HKD 38,710,000 for the nine months ended September 30, 2021, compared to HKD 1,680,000 in 2020, reflecting a growth of over 2,200%[19] - Geographically, revenue from Indonesia reached HKD 99,823,000 for the nine months ended September 30, 2021, compared to HKD 32,404,000 in 2020, marking an increase of 208%[17] Expenses and Costs - The company incurred administrative expenses of approximately HKD 35.85 million for the nine months ended September 30, 2021, compared to HKD 31.69 million for the same period in 2020[8] - The company’s financial costs for the nine months ended September 30, 2021, were approximately HKD 3.75 million, slightly up from HKD 3.64 million in the same period of 2020[8] - Sales and distribution expenses increased by approximately HKD 0.31 million or about 12.16% to approximately HKD 2.86 million, primarily due to increased packaging costs[40] - Administrative expenses rose by approximately HKD 4.16 million or about 13.13% to approximately HKD 35.85 million, mainly due to relocation costs to a new factory in Shenzhen and rising employee salaries[40] - The depreciation expense for property, plant, and equipment was HKD 2,450,000 for the nine months ended September 30, 2021, compared to HKD 2,089,000 in 2020, reflecting an increase of 17%[20] Cash and Financial Ratios - The company’s cash and cash equivalents as of September 30, 2021, were not disclosed in the provided documents[12] - The cash and cash equivalents as of September 30, 2021, were approximately HKD 11.64 million, up from HKD 4.45 million as of September 30, 2020[43] - The group's current ratio as of September 30, 2021, was approximately 1.08, compared to 1.16 as of September 30, 2020[43] - The debt-to-equity ratio as of September 30, 2021, was approximately 193%, down from 268% as of September 30, 2020[44] Corporate Governance and Compliance - The company has adhered to the corporate governance code as per GEM Listing Rules, with a noted deviation regarding the roles of Chairman and CEO being held by the same individual[67] - The company has adopted a code of conduct for securities trading by directors, confirming compliance during the reporting period[68] - The audit committee was established on June 20, 2018, in accordance with GEM Listing Rules, with members including Mr. Yu Shou Ning, Mr. Zhao Zhi Peng, and Ms. Yu Hui Fang[69] - The audit committee's primary responsibilities include recommending the appointment and removal of external auditors, reviewing financial statements, and overseeing internal control procedures[69] - The financial data in the quarterly report has not been audited but has been reviewed by the audit committee, which believes the performance is prepared in accordance with applicable accounting standards[69] Future Plans and Market Focus - The company continues to focus on ODM manufacturing for global watch manufacturers and brand owners, indicating potential for market expansion[12] - The group plans to continue focusing on core business development and improving product design and development capabilities[38] - The company has established a presence in key markets including Indonesia, Brazil, India, Hong Kong, and Australia, contributing significantly to its revenue streams[17] Shareholder Information - As of September 30, 2021, major shareholders, including Mr. Chok and Mrs. Chok, hold 620,000,000 shares, representing 62% of the total shares[53] - The company will hold a special general meeting on November 17, 2021, to consider a share consolidation proposal[52] Stock Options and Investments - The stock option plan approved by shareholders in June 2018 allows for the issuance of options up to 10% of the issued shares at any time[61] - No stock options have been granted since the adoption of the plan up to September 30, 2021[62] - The company has no major investment or capital asset plans for the upcoming year beyond what has been disclosed in the quarterly report[59] - There were no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period[58] - The company did not engage in any purchases, sales, or redemptions of its listed securities during the reporting period[57]

Financial Performance - For the six months ended June 30, 2021, the revenue was approximately HKD 96.88 million, an increase of about 111.25% compared to HKD 45.86 million for the same period in 2020[11] - The loss attributable to owners of the company for the reporting period was approximately HKD 1.23 million, a significant improvement from a loss of HKD 12.39 million in the same period of 2020[11] - Basic loss per share for the reporting period was approximately HKD 0.12, compared to a basic loss per share of HKD 1.24 for the same period in 2020[11] - Gross profit for the six months ended June 30, 2021, was approximately HKD 25.92 million, up from HKD 11.98 million in the same period of 2020, reflecting a gross margin improvement[12] - The company recorded a pre-tax profit of HKD 1.91 million for the three months ended June 30, 2021, compared to a loss of HKD 4.68 million for the same period in 2020[12] - The group incurred a loss attributable to equity holders of approximately HKD 1.23 million for the six months ended June 30, 2021, compared to a loss of HKD 12.39 million for the same period in 2020[32] - The group recorded a gross profit of approximately HKD 25.92 million for the six months ended June 30, 2021, an increase of about 116.36% compared to the same period in 2020[52] Assets and Liabilities - Total assets as of June 30, 2021, were approximately HKD 138.82 million, an increase from HKD 127.20 million as of December 31, 2020[14] - The company reported a net current asset of HKD 5.90 million as of June 30, 2021, down from HKD 8.33 million as of December 31, 2020[14] - The company’s total liabilities increased to HKD 132.92 million as of June 30, 2021, compared to HKD 118.87 million as of December 31, 2020[14] - The company’s equity totalled HKD 40,376,000 as of June 30, 2021, reflecting an increase from HKD 39,822,000 as of December 31, 2020[15] - Trade receivables increased to HKD 37.15 million as of June 30, 2021, compared to HKD 16.19 million as of December 31, 2020, indicating improved sales performance[14] - Trade payables as of June 30, 2021, were HKD 21.52 million, down from HKD 26.18 million as of December 31, 2020, reflecting improved cash management[38] - The current ratio as of June 30, 2021, was approximately 1.04, compared to 1.15 as of June 30, 2020[55] - The group's debt-to-equity ratio was approximately 236.61% as of June 30, 2021, down from 282.72% as of June 30, 2020[56] Revenue Sources - The company generated HKD 64,273,000 in revenue from Indonesia for the six months ended June 30, 2021, a substantial increase from HKD 9,409,000 in the same period of 2020[26] - The company reported a total of HKD 27,957,000 in revenue from watch parts for the six months ended June 30, 2021, compared to HKD 1,612,000 in the same period of 2020, marking a growth of 1,634.5%[28] - The company’s revenue from Brazil was HKD 7,962,000 for the six months ended June 30, 2021, slightly down from HKD 8,109,000 in the same period of 2020[26] - Revenue for the six months ended June 30, 2021, was HKD 96,877,000, a significant increase of 111.1% compared to HKD 45,862,000 in the same period of 2020[28] - The group's revenue for the six months ended June 30, 2021, was approximately HKD 96.88 million, representing an increase of about 111.25% compared to the same period in 2020[47] Cash Flow - The company reported a net cash outflow from operating activities of HKD 9,752,000 for the six months ended June 30, 2021, compared to a net inflow of HKD 18,300,000 for the same period in 2020[19] - The financing activities generated a net cash inflow of HKD 3,221,000 for the six months ended June 30, 2021, compared to HKD 45,791,000 in the same period of 2020[19] - The cash and cash equivalents at the end of June 30, 2021, were HKD 9,350,000, down from HKD 14,346,000 at the end of June 30, 2020[19] - As of June 30, 2021, the group's cash and bank balances were approximately HKD 10.49 million, down from HKD 14.36 million as of June 30, 2020[55] Operational Strategy - The company aims to continue expanding its market presence and improving operational efficiency in the upcoming periods[11] - The group plans to continue focusing on core business development and improving product design and development capabilities[50] - The group has established a policy allowing trade customers a credit period typically ranging from 30 to 90 days, with some long-term customers receiving extended credit periods[36] Governance and Compliance - The company has complied with the corporate governance code during the reporting period, with a noted deviation regarding the roles of the chairman and CEO[80] - The audit committee was established on June 20, 2018, and is responsible for reviewing financial statements and overseeing internal control procedures[82] - The company has taken sufficient checks and balances in its management structure despite deviations from certain governance codes[80] - The compliance advisor agreement with Tian Cai Capital International Limited was terminated on March 31, 2021[77] - The company has confirmed that directors adhered to the trading regulations during the reporting period[81] - The board believes that the current management structure is effective for the group's operations[80] Other Financial Information - Administrative expenses increased by approximately HKD 2.61 million or about 12.12% to approximately HKD 24.15 million during the reporting period[52] - Financial costs rose by approximately HKD 0.22 million or about 9.78% to approximately HKD 2.47 million due to increased bank financing[52] - The group had no capital commitments as of June 30, 2021[57] - The group had no significant contingent liabilities as of June 30, 2021[63] - The group did not declare an interim dividend during the reporting period, consistent with the previous year[53] - The company has no significant investment or capital asset plans for the upcoming year beyond what is disclosed in the interim report[71] - The stock option plan approved on June 20, 2018, is valid for 10 years and aims to reward participants for their contributions to the group[73] - No stock options have been granted since the adoption of the plan up to June 30, 2021[74] - The interim report contains forward-looking statements based on various assumptions regarding the company's future business strategies and operating environment[83]

Financial Performance - Revenue for the three months ended March 31, 2021, was approximately HKD 41.13 million, an increase of about 99.66% compared to HKD 20.60 million for the same period in 2020[6] - Loss attributable to owners of the company for the three months ended March 31, 2021, was approximately HKD 3.14 million, compared to a loss of approximately HKD 7.70 million for the same period in 2020[6] - Basic loss per share for the three months ended March 31, 2021, was approximately HKD 0.31, compared to HKD 0.77 for the same period in 2020[6] - Gross profit for the three months ended March 31, 2021, was approximately HKD 11.68 million, compared to HKD 6.19 million for the same period in 2020[7] - Total comprehensive loss for the three months ended March 31, 2021, was approximately HKD 8.60 million, compared to HKD 6.57 million for the same period in 2020[7] - The company reported a pre-tax loss of approximately HKD 3.14 million for the three months ended March 31, 2021, compared to a loss of HKD 7.70 million in the same period of 2020[26] Revenue Breakdown - The revenue breakdown by product for the three months ended March 31, 2021, included finished watches at HKD 25.68 million, components kits at HKD 4.77 million, and watch parts at HKD 10.69 million[18] - The geographical revenue distribution showed significant contributions from Indonesia (HKD 29.65 million), Brazil (HKD 3.99 million), and Saudi Arabia (HKD 3.05 million) for the three months ended March 31, 2021[16] Expenses and Costs - Administrative expenses for the three months ended March 31, 2021, were approximately HKD 13.00 million, compared to HKD 11.98 million for the same period in 2020[7] - Financial costs for the three months ended March 31, 2021, were approximately HKD 1.21 million, compared to HKD 1.07 million for the same period in 2020[7] - The depreciation expense for property, plant, and equipment was HKD 1.25 million for the three months ended March 31, 2021, compared to HKD 1.01 million in 2020[19] - Administrative expenses increased by approximately HKD 1.02 million or about 8.51% to approximately HKD 13.00 million due to costs associated with relocating to a new factory in Shenzhen[38] Equity and Financial Ratios - The company's total equity as of March 31, 2021, was approximately HKD 31.22 million[9] - As of March 31, 2021, the group's cash and cash equivalents were approximately HKD 12.27 million, down from HKD 28.35 million as of March 31, 2020[41] - The current ratio as of March 31, 2021, was approximately 1.02, compared to 1.05 as of March 31, 2020[41] - The group's debt-to-equity ratio was approximately 256.18% as of March 31, 2021, compared to 107.38% as of March 31, 2020[43] Business Operations - The company operates primarily as an investment holding company, with subsidiaries engaged in the design, development, manufacturing, and distribution of watch products[11] - The company continues to focus on ODM (Original Design Manufacturing) as its primary business segment, with no reported assets and liabilities by segment due to the nature of its operations[15] - The group plans to continue focusing on core business development and improving product design and development capabilities[37] Workforce and Employment - The group has reduced its workforce to 108 employees as of March 31, 2021, down from 147 employees as of March 31, 2020, primarily to improve management in design, quality control, and R&D[46] Dividends and Investments - The company did not declare any dividends for the three months ended March 31, 2021, consistent with the previous year[24] - No significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period, apart from those disclosed in the quarterly report[57] - 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, and the quarterly report[58] Governance and Compliance - The audit committee has reviewed the unaudited consolidated performance for the reporting period, confirming compliance with applicable accounting standards and GEM listing rules[68] - The company has adopted a code of conduct for directors' securities trading, confirming compliance with trading regulations during the reporting period[67] - The chairman and CEO roles are held by the same individual, which the board believes is in the best interest of the company due to the rapid development phase[66] - The compliance advisor agreement with Tian Cai Capital International Limited was terminated on March 31, 2021[64] Stock Options - The stock option plan approved by shareholders on June 20, 2018, is valid for 10 years and aims to reward contributions from eligible personnel and attract high-quality employees[59] - The board of directors can grant stock options to eligible employees, with a maximum of 10% of issued shares at any time, and must seek shareholder approval for significant grants exceeding 0.1% of the company's share capital[61] - The company has not granted any stock options since the adoption of the plan up to March 31, 2021[61] Market Conditions - The Hong Kong Trade Development Council's export index improved from 16.0 in Q1 2020 to 39.0 in Q1 2021, indicating a recovery in business sentiment[33] - The watch industry index rose from 13.9 in Q1 2020 to 36.5 in Q1 2021, reflecting improved economic conditions in the sector[34] Forward-Looking Statements - Forward-looking statements in the quarterly report are based on various assumptions regarding the company's current and future business strategies and operating environment[70]

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].