C Re al On Real International Holdings Limited 安悅國際控股有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ) 股 份 代 號 : 8245 250M (( (10 km) ��� 2) IPX2 °C, 報 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公司帶有較高投資風險。 有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣之證券承受較大的市場波動 風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確 表示概不對因本報告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 本報告的資料乃遵照聯交所的GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關安悅國際控股有限公司（「本 公司」）的資料；本公司的董事（「董事」） ...

Financial Performance - For the nine months ended December 31, 2020, the company's revenue was approximately HKD 223.7 million, a decrease of about 16.2% compared to approximately HKD 267.1 million for the same period in 2019[6]. - The loss attributable to owners for the nine months ended December 31, 2020, was approximately HKD 19.4 million, compared to a loss of approximately HKD 6.4 million for the same period in 2019[6]. - The basic and diluted loss per share for the nine months ended December 31, 2020, was approximately HKD 3.24, compared to HKD 1.64 for the same period in 2019[6]. - The gross loss for the nine months ended December 31, 2020, was HKD 9,678,000, compared to a gross profit of HKD 31,567,000 for the same period in 2019, indicating a significant downturn[49]. - The net loss attributable to owners of the company for the nine months ended December 31, 2020, was HKD 19,384,000, compared to a loss of HKD 6,402,000 in the same period of 2019, reflecting an increase in losses of approximately 202.5%[51]. - The company reported a total comprehensive loss of HKD 15,657,000 for the nine months ended December 31, 2020, compared to a loss of HKD 6,603,000 in the same period of 2019[51]. - The company reported a loss before tax of HKD 19,215 thousand for the nine months ended December 31, 2020, compared to a loss of HKD 5,434 thousand for the same period in 2019, indicating a worsening financial position[72]. Revenue Breakdown - Revenue from two-way radios decreased by approximately 17.9% to HKD 172.7 million for the nine months ended December 31, 2020, from HKD 210.4 million for the same period in 2019[9]. - Revenue from baby monitors decreased by approximately 14.6% to HKD 2.9 million for the nine months ended December 31, 2020, from HKD 3.4 million for the same period in 2019[9]. - Revenue from service business increased approximately 18.4 times to HKD 7.7 million for the nine months ended December 31, 2020, from HKD 0.4 million for the same period in 2019[9]. - Revenue from other products decreased by approximately 23.5% to HKD 40.5 million for the nine months ended December 31, 2020, from HKD 52.9 million for the same period in 2019[10]. - Total revenue from external customers for the nine months ended December 31, 2020, was HKD 223,736 thousand, a decrease from HKD 267,073 thousand for the same period in 2019, representing a decline of approximately 16.2%[69]. - The performance of the two-way radio segment generated revenue of HKD 172,685 thousand for the nine months ended December 31, 2020, compared to HKD 210,435 thousand in the same period of 2019, reflecting a decrease of about 17.9%[70]. - Revenue from the United States for the nine months ended December 31, 2020, was HKD 72,843 thousand, down from HKD 135,711 thousand in the same period of 2019, a decline of approximately 46.3%[72]. Cost and Expenses - The company's sales cost decreased by approximately 9.1% from HKD 235.5 million for the nine months ended December 31, 2019, to about HKD 214.1 million for the nine months ended December 31, 2020[17]. - The gross profit margin dropped from approximately 11.8% for the nine months ended December 31, 2019, to about 4.3% for the nine months ended December 31, 2020, primarily due to a decline in the gross margin of two-way wireless intercom products[17]. - Administrative expenses decreased from approximately HKD 32.0 million for the nine months ended December 31, 2019, to about HKD 28.2 million for the nine months ended December 31, 2020, mainly due to reduced R&D and consultancy expenses[20]. - Sales and distribution expenses increased from approximately HKD 2.7 million for the nine months ended December 31, 2019, to about HKD 3.2 million for the nine months ended December 31, 2020, primarily due to increased issuance costs and sample expenditures[18]. - Interest expenses for bank and other borrowings amounted to HKD 1,540,000 for the nine months ended December 31, 2020, down from HKD 3,489,000 in the same period of 2019[7]. - The company incurred a tax expense of HKD 169,000 for the nine months ended December 31, 2020, compared to HKD 968,000 for the same period in 2019[84]. - Rental expenses paid to a related company were HKD 1,529,000 for the nine months ended December 31, 2020, compared to HKD 1,394,000 for the same period in 2019[91]. Strategic Plans and Future Outlook - The company plans to diversify its revenue sources by expanding product varieties and exploring business opportunities with existing and potential customers[12]. - The company will continue to explore and consider potential investment opportunities to seize more business chances[16]. - The company plans to enhance its market presence and product offerings through strategic decisions made by the executive directors[66]. - The company is attempting to mitigate the impact of the US-China trade war by outsourcing production services from China to Vietnam and Malaysia[14]. - The company will continue to closely monitor the impact of COVID-19 on its financial condition, cash flow, and operational performance[16]. - The company has not disclosed any new product developments or market expansion strategies in the current report, suggesting a potential area for future focus[62]. Shareholder Information - As of December 31, 2020, Solution Smart Holdings Limited and Mr. Zhong Weishen each hold 112,589,600 shares, representing an 18.81% equity interest in the company[34]. - SMK Investment and Mr. Kor Sing Mung Michael each hold 90,997,600 shares, representing a 15.20% equity interest in the company[34]. - The company did not issue any debt securities during the nine months ended December 31, 2020[34]. - The company does not recommend the payment of dividends for the nine months ended December 31, 2020, consistent with the previous period[22]. - The company did not purchase, sell, or redeem any of its listed securities during the nine months ended December 31, 2020[43]. - The company has adopted the GEM Listing Rules as the code of conduct for directors' securities transactions, confirming compliance during the nine months ended December 31, 2020[42]. - There were no significant contracts in which directors had a direct or indirect material interest during the nine months ended December 31, 2020[38]. - No share options were granted, exercised, or lapsed under the company's share option scheme during the nine months ended December 31, 2020[46]. - The total number of shares that may be issued upon exercise of all share options granted under the scheme is 26,880,000 shares, approximately 4.5% of the issued share capital as of December 31, 2020[46]. - The weighted average number of ordinary shares for the nine months ended December 31, 2020, was 598,500,000, compared to 390,194,000 for the same period in 2019[87]. Compliance and Governance - The company has fully complied with the corporate governance code as per GEM Listing Rules during the nine months ended December 31, 2020[40]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial performance for the third quarter ended December 31, 2020[47]. - The company had no significant post-reporting date events as of the report date[93]. - The corporate income tax rate in China remained at 25% for both 2020 and 2019[7]. - The company recorded other comprehensive income of HKD 3,727,000 for the nine months ended December 31, 2020, primarily due to foreign exchange differences, compared to a loss of HKD 201,000 in the same period of 2019[49]. - The company reported a net foreign exchange loss of HKD 1,127 thousand for the nine months ended December 31, 2020, compared to a loss of HKD 3,313 thousand for the same period in 2019, indicating some improvement in currency management[80].

Financial Performance - For the six months ended September 30, 2020, the company's revenue was approximately HKD 187.1 million, an increase of about 10.7% compared to approximately HKD 169.0 million for the same period in 2019[6] - The loss attributable to owners for the six months ended September 30, 2020, was approximately HKD 15.0 million, compared to a loss of approximately HKD 9.0 million for the same period in 2019[6] - Revenue from two-way radios increased by approximately 13.5% to about HKD 146.8 million for the six months ended September 30, 2020, from approximately HKD 129.3 million for the same period in 2019[9] - Revenue from baby monitors decreased by approximately 26.7% to about HKD 1.1 million for the six months ended September 30, 2020, from approximately HKD 1.5 million for the same period in 2019[9] - Revenue from service business surged approximately 1.8 times to about HKD 7.7 million for the six months ended September 30, 2020, from approximately HKD 0.4 million for the same period in 2019[10] - Revenue from other products decreased by approximately 16.8% to about HKD 31.4 million for the six months ended September 30, 2020, from approximately HKD 37.8 million for the same period in 2019[10] - The gross profit for the six months ended September 30, 2020, was HKD 10,967,000, a decrease of 45.2% from HKD 20,017,000 in the previous year[64] - The company reported a total comprehensive loss of HKD 15,484,000 for the six months ended September 30, 2020, compared to HKD 9,442,000 for the same period in 2019[66] - The company reported a net cash outflow from operating activities of HKD 34,575 thousand for the six months ended September 30, 2020, compared to HKD 22,234 thousand for the same period in 2019, indicating a worsening cash flow situation[77] Dividends and Share Capital - The company does not recommend the payment of an interim dividend for the six months ended September 30, 2020[6] - The board does not recommend the payment of an interim dividend for the six months ended September 30, 2020[35] - The company completed a share consolidation on February 6, 2020, merging every ten existing shares into one new share[39] - The company’s authorized share capital will increase from HKD 7,800,000 to HKD 39,000,000 following the share consolidation and rights issue[39] - The company plans to raise approximately HKD 19,950,000 through a rights issue, with a subscription price of HKD 0.1 per share[40] - Approximately HKD 14,100,000 (79.2%) of the net proceeds from the rights issue will be used for business expansion and potential acquisitions, while HKD 3,700,000 (20.8%) will be allocated for general working capital[42] Assets and Liabilities - The group's current assets net value decreased from approximately HKD 60.4 million as of March 31, 2020, to approximately HKD 42.7 million as of September 30, 2020[23] - The company's cash and bank balance decreased by approximately HKD 25.1 million from approximately HKD 46.8 million as of March 31, 2020, to approximately HKD 21.7 million as of September 30, 2020[23] - The group's debt-to-equity ratio increased to approximately 134.9% as of September 30, 2020, compared to approximately 84.1% as of March 31, 2020[27] - Total liabilities increased to HKD 146,230 thousand from HKD 121,035 thousand, reflecting a rise of approximately 20.8%[68] - The company’s total equity decreased to HKD 48,034 thousand from HKD 63,518 thousand, a decline of about 24.3%[71] - The total borrowings as of September 30, 2020, were HKD 64,628,000, an increase from HKD 53,243,000 as of March 31, 2020[137] Operational Strategies - The company aims to diversify revenue sources and expand its product range while seeking business opportunities with existing and potential customers[12] - The company plans to enhance its product portfolio and strengthen its information management systems to achieve growth in existing businesses[14] - The company will explore opportunities to leverage its R&D capabilities to provide design engineering services to customers[14] - The group plans to establish new production facilities outside of China, such as in Malaysia and Vietnam, to mitigate the impact of the ongoing US-China trade war[16] - The group is committed to developing new product models and diversifying revenue sources to enhance business income and profitability[16] Employee and Management Information - As of September 30, 2020, the total employee cost was approximately HKD 8,700,000, a decrease of 26.9% compared to HKD 11,900,000 for the same period in 2019[36] - The total number of employees as of September 30, 2020, was 153[36] - The company has conducted a series of training sessions for its employees during the six months ended September 30, 2020[37] - Compensation for key management personnel amounted to HKD 2,885,000 for the six months ended September 30, 2020, up from HKD 1,737,000 for the same period in 2019, representing a 66.1% increase[151] Financial Reporting and Compliance - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from April 1, 2020, with no significant impact on the interim financial statements[84] - The financial risk management policies have not changed since the end of the last fiscal year, maintaining a focus on market risk, credit risk, and liquidity risk[88] - The interim financial statements have been reviewed by the company's audit committee but not audited by independent auditors[83] - The company maintained compliance with the corporate governance code throughout the reporting period, with no deviations except for the roles of chairman and CEO being held by different individuals[52] Market Performance - Total revenue for the six months ended September 30, 2020, was HKD 187,093,000, with significant contributions from two-way radios (HKD 146,845,000) and other products (HKD 31,445,000) [100] - The operating profit for the same period was HKD 10,967,000, with two-way radios contributing HKD 8,369,000 and other products contributing HKD 2,191,000 [100] - Total revenue from external customers for the three months ended September 30, 2020, was HKD 102,433 thousand, an increase from HKD 87,152 thousand in the same period of 2019, representing a growth of approximately 17.5%[105] - Revenue from the United States for the three months ended September 30, 2020, was HKD 31,753 thousand, a decrease of 24% compared to HKD 41,752 thousand in the same period of 2019[108] - Revenue from Asia for the three months ended September 30, 2020, significantly increased to HKD 34,392 thousand from HKD 7,345 thousand in the same period of 2019, marking a growth of approximately 369%[108] Inventory and Receivables - The company reported a significant increase in inventory, which rose to HKD 29,942 thousand from HKD 24,380 thousand, representing a growth of approximately 22.9%[68] - The total trade and other receivables as of September 30, 2020, amounted to HKD 133,749,000, an increase from HKD 108,329,000 as of March 31, 2020[131] - The company’s trade receivables as of September 30, 2020, were HKD 118,201,000, up from HKD 85,868,000 as of March 31, 2020[131] Other Financial Information - The company incurred a current tax expense of HKD 155,000 for the six months ended September 30, 2020, compared to HKD 207,000 for the same period in 2019[121] - The company’s capital expenditure for the six months ended September 30, 2020, was HKD 1,328,000[129] - The company reported a basic loss per share of HKD (1.87) for the three months ended September 30, 2020, compared to HKD (1.82) for the same period in 2019[124] - For the six months ended September 30, 2020, the company recorded a basic loss per share of HKD (2.50), compared to HKD (2.30) for the same period in 2019[124]

Revenue Performance - For the three months ended June 30, 2020, the company's revenue was approximately HKD 84.7 million, an increase of about 3.4% compared to approximately HKD 81.9 million for the same period in 2019[4] - Revenue from two-way radios increased by approximately 4.7% to HKD 64.1 million for the three months ended June 30, 2020, from HKD 61.2 million for the same period in 2019[7] - Revenue from the service business surged 640 times to approximately HKD 7.7 million for the three months ended June 30, 2020, from approximately HKD 12,000 for the same period in 2019[8] - Revenue from other products decreased by approximately 38.6% to HKD 12.4 million for the three months ended June 30, 2020, from approximately HKD 20.2 million for the same period in 2019[8] - Sales from goods amounted to HKD 76,980 thousand, a decrease of 5.3% from HKD 81,839 thousand in 2019, while service sales increased significantly to HKD 7,680 thousand from HKD 12 thousand[49] - Revenue from the United States decreased to HKD 38,097 thousand, down 13.0% from HKD 44,280 thousand in the previous year[56] - Revenue from Asia significantly increased to HKD 21,667 thousand, up 278.5% from HKD 5,722 thousand in the same period last year[56] Profit and Loss - The loss attributable to owners for the three months ended June 30, 2020, was approximately HKD 3.8 million, compared to a loss of approximately HKD 1.9 million for the same period in 2019[4] - The gross profit margin decreased from approximately 11.3% for the three months ended June 30, 2019, to approximately 4.8% for the same period in 2020, primarily due to a decline in the profit margin of two-way radio products[14] - The gross profit for the same period was HKD 4,097 thousand, down 55.7% from HKD 9,263 thousand in 2019[39] - The net loss for the three months ended June 30, 2020, was HKD 3,771 thousand, compared to a net loss of HKD 1,902 thousand in 2019, representing a 98.4% increase in loss[39] - The total comprehensive loss for the period was HKD 3,746 thousand, compared to HKD 855 thousand in 2019, indicating a significant increase in overall expenses[39] - The basic and diluted loss per share was HKD 0.63 for the current period, compared to HKD 0.49 for the same period last year[39] Expenses - Sales and distribution expenses increased from approximately HKD 0.9 million for the three months ended June 30, 2019, to approximately HKD 1.1 million for the three months ended June 30, 2020, primarily due to increased transportation costs[15] - Administrative expenses decreased from approximately HKD 9.8 million for the three months ended June 30, 2019, to approximately HKD 7.2 million for the three months ended June 30, 2020, mainly due to reduced R&D and consultancy fees[16] - Administrative expenses were HKD 7,177 thousand, down from HKD 9,763 thousand in 2019, reflecting a 26.5% reduction[39] - The cost of inventory recognized as an expense was HKD 70,671 thousand, an increase of 17.8% from HKD 60,335 thousand in the previous year[65] - Financing costs for the three months ended June 30, 2020, were HKD 737 thousand, down 38.2% from HKD 1,192 thousand in the same period of 2019[66] Corporate Governance and Shareholder Information - The board of directors did not recommend the payment of dividends for the three months ended June 30, 2020[19] - The company has fully complied with all corporate governance code provisions during the three months ended June 30, 2020[30] - No share options were granted, exercised, lapsed, or cancelled during the three months ended June 30, 2020[34] - Solution Smart Holdings Limited held 112,589,600 shares, representing an 18.81% stake in the company[23] - SMK Investment Company Limited held 90,997,600 shares, representing a 15.20% stake in the company[23] - The company did not recommend any dividend payment for the three months ended June 30, 2020, and 2019[73] Future Outlook and Challenges - The company plans to diversify revenue sources and expand product offerings to enhance customer base and business opportunities[11] - The company anticipates continued impacts from the US-China trade war on revenue and gross margins due to additional tariffs on two-way radios[13] - The company will explore new production facilities outside of China, including in Malaysia and Vietnam, to mitigate ongoing trade war effects[11] - The company will continue to monitor the impact of COVID-19 on its operations and financial condition[13] - The impact of COVID-19 on the global business environment has been significant since January 2020, with potential further changes to the group's economic situation and financial performance[75] - The extent of COVID-19's impact on the group's financial performance remains unquantifiable as of the report date[75] - The group will continue to monitor the COVID-19 situation and actively respond to its effects on financial conditions and operational performance[75] Segment Performance - The segment performance for the three months ended June 30, 2020, reported a loss of HKD 3,771 thousand, compared to a loss of HKD 1,770 thousand in the same period of 2019[56] - Other income for the three months ended June 30, 2020, was HKD 1,277 thousand, a decrease from HKD 1,497 thousand in the same period of 2019[62] - The foreign exchange gain from the translation of overseas operations was HKD 25 thousand, a decrease from HKD 1,047 thousand in the previous year[39] - The company reported a net foreign exchange loss of HKD 83 thousand for the three months ended June 30, 2020, compared to a loss of HKD 692 thousand in the same period of 2019[63] - The company continues to focus on the design, trade, and manufacturing of two-way radios, baby monitors, and other communication devices, indicating ongoing commitment to its core business[45]

Financial Performance - The group recorded a slight revenue increase of 3.4% due to an increase in customer procurement orders during the fiscal year[19]. - The overall performance of the group has deteriorated despite slight revenue growth, indicating challenges in the current economic environment[19]. - The company's revenue increased from approximately HKD 323,500,000 for the year ended March 31, 2019, to approximately HKD 334,600,000 for the year ended March 31, 2020, representing a growth of about 3.4%[26]. - Revenue from two-way radios rose approximately 15.8% from about HKD 211,500,000 in 2019 to about HKD 245,000,000 in 2020, driven by an increase in customer orders[26]. - Revenue from baby monitors significantly decreased by approximately 77.4%, from about HKD 17,100,000 in 2019 to about HKD 3,900,000 in 2020, due to reduced demand for audio baby monitor products[27]. - Service business revenue fell approximately 95.9%, from about HKD 9,700,000 in 2019 to about HKD 400,000 in 2020, primarily due to a decrease in electronic manufacturing services[27]. - The company recorded a loss of HKD 19,500,000 for the year ended March 31, 2020, compared to a loss of HKD 9,800,000 in the previous year[34]. Administrative Expenses and Cost Management - Administrative expenses significantly increased by 42% as the group invested additional costs in logistics and manufacturing outsourcing outside of China to mitigate the impact of the US-China trade war[19]. - Administrative expenses increased from approximately HKD 27,400,000 in 2019 to about HKD 38,900,000 in 2020, attributed to higher R&D and consultancy costs[33]. - The group is considering outsourcing arrangements to increase flexibility in fixed cost management, potentially moving production processes outside of China to locations like Malaysia[20]. Impact of External Factors - The group anticipates continued impacts from the US-China trade war, including increased tariffs on two-way wireless intercoms, which will affect revenue and gross margins[20]. - The COVID-19 outbreak has caused production disruptions and added uncertainty to the operating environment, potentially impacting the group's financial condition and cash flow[20]. Strategic Initiatives - The group is focusing on enhancing its product portfolio and strengthening its information management systems to drive business growth[20]. - The group plans to diversify revenue sources and explore new product opportunities while leveraging its established sales channels and networks[20]. - The group is committed to research and development of new product models to enhance business revenue and profitability[20]. - The board is evaluating current business strategies to improve operational efficiency and overall performance[19]. Governance and Management - The company adheres to high standards of corporate governance and has implemented the GEM Listing Rules throughout the fiscal year ending March 31, 2020[75][76]. - The board of directors is committed to maintaining high levels of business ethics and governance practices[75]. - The company has a diverse board with members holding various qualifications and extensive experience in finance, accounting, and corporate governance[68][69][70]. - The company has made efforts to ensure compliance with applicable governance codes, although some deviations were noted[76]. - The management team includes professionals with advanced degrees in business and finance from reputable universities[72]. - The company has a history of appointing experienced individuals to key positions, enhancing its operational capabilities[64][68][70]. - The board includes independent directors who contribute to the oversight and strategic direction of the company[68][69][70]. - The company is focused on continuous improvement in governance practices to align with legal and business standards[76]. Risk Management and Compliance - The company has implemented policies to monitor and assess risks related to sanctions laws from the US, EU, and Australia, ensuring compliance and protecting shareholder interests[114]. - The board believes that the internal control policies in place provide a reasonable and effective framework for identifying and monitoring significant risks related to sanctions laws[115]. - The external independent internal control consulting firm was engaged to assist the board in reviewing the effectiveness of the internal control system, covering financial, compliance, and operational monitoring[118]. - The company has not conducted any transactions in Russia that could expose it or its investors to sanction risks[116]. Environmental and Social Responsibility - The company’s Yunfu plant has achieved GB/T24001–2016/ISO14001:2015 environmental management system certification[143]. - The company has implemented resource-saving measures, with monthly statistics on electricity, water, paper usage, and waste recycling to control resource consumption[147]. - The company continues to comply with labor laws and provides a fair working environment, promotion opportunities, and transparent compensation for employees[151]. - The company has established a comprehensive training program for employees, including onboarding training for new hires and ongoing professional development[155]. - The company has formed an epidemic prevention committee and implemented comprehensive policies to ensure employee safety during the COVID-19 pandemic[160]. Financial Position and Capital Management - The company's cash and bank balances increased from approximately HKD 24,600,000 in 2019 to about HKD 46,800,000 in 2020, an increase of approximately HKD 22,200,000[41]. - The debt-to-equity ratio improved to approximately 84.1% as of March 31, 2020, down from 85.5% in the previous year, due to a reduction in short-term borrowings[42]. - The company has a reserve available for distribution of approximately HKD 29,992,000 as of March 31, 2020, compared to HKD 15,212,000 in 2019, an increase of about 96%[183]. - The company did not recommend the payment of dividends for the year ending March 31, 2020[180]. Stock Options and Shareholder Engagement - As of March 31, 2019, the company had granted a total of 115,200,000 stock options under the plan, with an exercise price of HKD 0.0470[191]. - By March 31, 2020, there were 268,800,000 stock options available for allocation and issuance under the plan[191]. - No stock options were granted, exercised, expired, or canceled during the fiscal year ending March 31, 2020[192]. - The company maintains various communication channels to ensure shareholders are informed about key business decisions[124]. - The company has a structured process for shareholders to propose new resolutions at special general meetings[128].

Financial Performance - For the nine months ended December 31, 2019, the company's revenue was approximately HKD 267.1 million, an increase of about 5.9% compared to approximately HKD 252.2 million for the same period in 2018[5]. - The company reported a loss attributable to owners of approximately HKD 6.4 million for the nine months ended December 31, 2019, compared to a profit of approximately HKD 3.3 million for the same period in 2018[5]. - Revenue from two-way radios increased by approximately 30.3% to about HKD 210.4 million for the nine months ended December 31, 2019, driven by an increase in customer orders[8]. - Revenue from baby monitors decreased by approximately 77.9% to about HKD 3.4 million for the nine months ended December 31, 2019, due to reduced demand for audio baby monitor products[8]. - The company's gross profit margin increased from approximately 9.0% for the nine months ended December 31, 2018, to approximately 11.8% for the same period in 2019[14]. - For the nine months ended December 31, 2019, total revenue from product sales was HKD 266,676,000, an increase from HKD 250,915,000 for the same period in 2018[78]. - The company reported a total of HKD 267,073,000 in revenue for the nine months ended December 31, 2019, compared to HKD 252,158,000 for the same period in 2018[78]. - The segment performance for the nine months ended December 31, 2019, showed a profit of HKD 31,567,000 compared to HKD 22,681,000 in the same period of 2018, indicating a year-on-year increase of about 39%[84]. - The company reported a net loss before tax of HKD 5,434,000 for the nine months ended December 31, 2019, compared to a profit of HKD 4,317,000 in the same period of 2018[86]. - The company reported a profit attributable to shareholders of HKD 2,587,000 for the three months ended December 31, 2019, compared to a loss of HKD 2,125,000 for the same period in 2018[102]. Expenses and Costs - Sales and distribution expenses decreased from approximately HKD 3.3 million for the nine months ended December 31, 2018, to approximately HKD 2.7 million for the nine months ended December 31, 2019, primarily due to cost optimization measures[16]. - Administrative expenses increased from approximately HKD 18.9 million for the nine months ended December 31, 2018, to approximately HKD 32.0 million for the nine months ended December 31, 2019, mainly due to increased R&D and consultancy expenses[17]. - The total operating expenses for the nine months ended December 31, 2019, were HKD 32,015,000, compared to HKD 18,870,000 for the same period in 2018, reflecting an increase of 69.5%[50]. - The company incurred financing costs of HKD 3,489,000 for the nine months ended December 31, 2019, compared to HKD 1,314,000 in the same period of 2018, indicating a significant increase of about 165%[97]. - The company’s employee benefit expenses for the nine months ended December 31, 2019, were HKD 16,011,000, a decrease from HKD 21,983,000 in the same period of 2018, reflecting a reduction of approximately 27%[95]. - The company’s intangible asset amortization for the nine months ended December 31, 2019, was HKD 864,000, down from HKD 1,527,000 in the same period of 2018, indicating a decrease of approximately 43.3%[95]. Corporate Actions and Governance - The board of directors does not recommend the payment of any dividend for the nine months ended December 31, 2019[5]. - The board of directors did not recommend the payment of dividends for the nine months ended December 31, 2019[19]. - The company has a stock option plan that allows for the issuance of up to 268,800,000 shares as of December 31, 2019[46]. - The company’s board of directors has confirmed compliance with the GEM Listing Rules regarding securities trading standards during the nine months ended December 31, 2019[41]. - The company has adopted high standards of corporate governance and has complied with the GEM Corporate Governance Code during the reporting period[37]. - The board proposed a share consolidation and an increase in authorized share capital, which was approved by shareholders on February 4, 2020[28]. Future Plans and Market Strategy - The company plans to enhance its product portfolio and strengthen its information management systems to achieve growth in existing businesses[13]. - The company anticipates using more outsourcing arrangements to increase flexibility in fixed cost management, potentially moving some operations outside of China[13]. - The company will continue to seek new product opportunities and leverage its sales channels to diversify revenue sources[13]. - The company plans to expand its market presence in Europe and Asia, focusing on increasing sales in these regions[86]. - The company continues to focus on expanding its market presence and enhancing its product offerings in the communication device sector[62]. Legal and Compliance Matters - The company is currently seeking legal advice regarding a lawsuit involving a claim of approximately HKD 8.0 million[110]. Financial Position - The company reported a total equity of HKD 59,978,000 as of December 31, 2019, compared to HKD 63,352,000 at the beginning of the period[54]. - The accumulated losses increased to HKD 25,285,000 as of December 31, 2019, from HKD 18,883,000 at the beginning of the period[54].

Financial Performance - For the six months ended September 30, 2019, the company's revenue was approximately HKD 169 million, an increase of about 1.3% compared to approximately HKD 166.9 million for the same period in 2018[19]. - The company reported a loss attributable to owners of approximately HKD 9 million for the six months ended September 30, 2019, compared to a profit of approximately HKD 5.3 million for the same period in 2018[19]. - Revenue for the three months ended September 30, 2019, was HKD 87,152 thousand, a decrease of 5.7% compared to HKD 92,255 thousand for the same period in 2018[66]. - The company reported a total loss before tax of HKD 8,782 thousand for the six months ended September 30, 2019, compared to a profit of HKD 6,519 thousand for the same period in 2018[108]. - Total comprehensive loss for the six months ended September 30, 2019, was HKD 9,442 thousand, compared to a profit of HKD 4,213 thousand in the same period of 2018[68]. - The company reported a net loss attributable to owners of HKD (7,087) thousand for the three months ended September 30, 2019, compared to a profit of HKD 2,944 thousand for the same period in 2018[124]. Revenue Breakdown - Revenue from two-way radios increased by approximately 36.5% to about HKD 129.3 million for the six months ended September 30, 2019, up from approximately HKD 94.7 million for the same period in 2018[22]. - Revenue from baby monitors significantly decreased by approximately 77.9% to about HKD 1.5 million for the six months ended September 30, 2019, down from approximately HKD 6.7 million for the same period in 2018[22]. - Revenue from service operations dropped by approximately 68.3% to about HKD 400,000 for the six months ended September 30, 2019, down from approximately HKD 1.2 million for the same period in 2018[23]. - Other product revenue decreased by approximately 41.1% to about HKD 37.8 million for the six months ended September 30, 2019, down from approximately HKD 64.1 million for the same period in 2018[23]. - Revenue from the United States for the six months ended September 30, 2019, was HKD 86,032 thousand, an increase from HKD 83,710 thousand in the same period of 2018, reflecting a growth of 3.96%[110]. - The segment performance for two-way radios generated a profit of HKD 11,026 thousand, while the baby monitors segment reported a loss of HKD 398 thousand for the six months ended September 30, 2019[105]. Expenses and Costs - Administrative expenses increased significantly from approximately HKD 11,100,000 to approximately HKD 24,400,000, mainly due to higher R&D costs and consultancy fees[32]. - The company’s financing costs increased to HKD 2,266 thousand for the six months ended September 30, 2019, compared to HKD 654 thousand in the same period of 2018, reflecting a significant rise of 247.25%[108]. - The company’s inventory costs recognized as expenses were HKD 62,432 thousand for the three months ended September 30, 2019, down from HKD 66,783 thousand in the same period of 2018[118]. - The company recognized inventory costs of approximately HKD 122,767,000 and HKD 114,898,000 for the six months ended September 30, 2019, and September 30, 2018, respectively[133]. Cash Flow and Financing - The net cash used in operating activities for the six months ended September 30, 2019, was HKD 22,234 thousand, compared to HKD 14,630 thousand for the same period in 2018, indicating an increase of approximately 51.5%[76]. - The financing activities generated a net cash inflow of HKD 9,843 thousand, compared to HKD 6,815 thousand in the same period of the previous year, reflecting an increase of approximately 44.5%[76]. - Cash and cash equivalents at the end of the period were HKD 21,360 thousand, down from HKD 24,619 thousand at the beginning of the period, representing a decrease of approximately 13.0%[76]. - The company completed the sale of assets related to a life insurance plan for HKD 9,500,000 on July 10, 2019[48]. - The company entered into a subscription agreement on August 22, 2019, to issue 150,000,000 shares at a subscription price of HKD 0.022 per share, representing approximately 3.91% of the existing issued share capital[49]. Assets and Liabilities - As of September 30, 2019, the company's total short-term loans and bank borrowings amounted to approximately HKD 64,100,000, an increase of about HKD 9,900,000 from HKD 54,200,000 as of March 31, 2019[35]. - Non-current assets decreased to HKD 8,058 thousand as of September 30, 2019, down from HKD 20,513 thousand as of March 31, 2019[70]. - Total trade receivables increased to HKD 81,581 thousand as of September 30, 2019, up from HKD 72,024 thousand as of March 31, 2019[130]. - The company’s net asset value as of September 30, 2019, was HKD 57,210 thousand, down from HKD 63,352 thousand as of March 31, 2019[72]. - The total amount of trade and other payables was HKD 71,632,000 as of September 30, 2019, down from HKD 84,070,000 as of March 31, 2019[141]. Corporate Governance and Compliance - The board does not recommend the payment of an interim dividend for the six months ended September 30, 2019[19]. - The company has complied with the corporate governance code during the six months ended September 30, 2019, with some exceptions noted[57]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial results for the six months ended September 30, 2019[64]. - The chairman position has been vacant since April 1, 2019, and the company is seeking a suitable candidate to fill this vacancy[59]. Future Outlook and Strategy - The company plans to diversify its revenue sources and expand its product range to explore business opportunities with existing and potential customers[25]. - The company plans to enhance its product portfolio and strengthen its information management systems to achieve growth in existing businesses[27]. - The company anticipates continued impacts from the US-China trade war, particularly due to increased tariffs on two-way wireless intercoms and additional costs from logistics and manufacturing outsourcing in Malaysia and Vietnam[29]. - The company continues to focus on the design, trade, and manufacturing of two-way radios, baby monitors, and other communication devices, indicating ongoing commitment to its core business[78]. Financial Reporting Standards - The company adopted the new and revised Hong Kong Financial Reporting Standards effective from April 1, 2019, with no significant financial impact on the unaudited condensed consolidated interim financial information[83]. - The implementation of HKFRS 16 introduced a single lessee accounting model, requiring lessees to recognize assets and liabilities for all leases longer than twelve months, unless the asset value is low[86]. - The company chose to apply the modified retrospective approach for HKFRS 16, affecting only contracts from April 1, 2019, without adjusting prior period amounts[87]. Miscellaneous - The company has no significant contingent liabilities as of September 30, 2019[39]. - The company has no significant post-reporting date events as of September 30, 2019[150]. - The board approved the unaudited interim financial statements on November 13, 2019[151].

Revenue Performance - For the three months ended June 30, 2019, the company's revenue was approximately HKD 81.9 million, an increase of about 9.7% compared to approximately HKD 74.6 million for the same period in 2018[5] - Revenue from two-way radios increased by approximately 27.7% to about HKD 61.2 million for the three months ended June 30, 2019, up from approximately HKD 47.9 million for the same period in 2018[8] - Revenue from baby monitors significantly decreased by approximately 91.3% to about HKD 0.5 million for the three months ended June 30, 2019, down from approximately HKD 5.8 million for the same period in 2018[8] - The company's revenue for the three months ended June 30, 2019, was HKD 81,851 thousand, an increase of 9.4% compared to HKD 74,605 thousand for the same period in 2018[40] - Total revenue for the three months ended June 30, 2019, was HKD 81,851,000, an increase from HKD 74,605,000 for the same period in 2018, representing a growth of 9.3%[54] - Revenue from the United States reached HKD 44,280,000, up from HKD 34,328,000 in the previous year, indicating a growth of 28.4%[56] Profit and Loss - The company reported a loss attributable to owners of approximately HKD 1.9 million for the three months ended June 30, 2019, compared to a profit of approximately HKD 2.4 million for the same period in 2018[5] - The loss attributable to owners of the company for the three months ended June 30, 2019, was approximately HKD 1.9 million, compared to a profit of approximately HKD 2.4 million for the same period in 2018[19] - The company reported a loss before tax of HKD 1,770 thousand, compared to a profit of HKD 2,935 thousand in the previous year, indicating a significant decline[40] - The total comprehensive loss for the period was HKD 855 thousand, a decrease from a comprehensive income of HKD 3,209 thousand in the same quarter of 2018[42] - Basic and diluted loss per share was HKD (0.05), compared to earnings of HKD 0.06 per share in the prior year[42] Expenses - The sales cost increased by approximately 8.4% to about HKD 72.6 million for the three months ended June 30, 2019, compared to approximately HKD 67.0 million for the same period in 2018[15] - Administrative expenses rose from approximately HKD 5.5 million for the three months ended June 30, 2018, to approximately HKD 9.8 million for the three months ended June 30, 2019, mainly due to increased R&D costs, consultancy fees, and rent[17] - The administrative expenses increased to HKD 9,763 thousand from HKD 5,539 thousand, reflecting a rise of 76.5% year-over-year[40] - Sales and distribution expenses increased from approximately HKD 0.7 million for the three months ended June 30, 2018, to approximately HKD 0.9 million for the three months ended June 30, 2019, primarily due to increased transportation costs[16] - Financing costs increased significantly to HKD 1,192,000 in 2019 from HKD 237,000 in 2018, marking a rise of 403.4%[65] Corporate Governance and Future Plans - The company plans to diversify revenue sources and expand product offerings to enhance customer base and business opportunities[12] - The company will continue to seek opportunities for new product categories and leverage R&D capabilities to provide design engineering services to clients[12] - The company has adhered to the corporate governance code and maintained high standards of business ethics during the three months ended June 30, 2019[33] Dividends - The company does not recommend the payment of any dividends for the three months ended June 30, 2019[5] - The board of directors did not recommend the payment of dividends for the three months ended June 30, 2019[20] - No dividends were recommended for the three months ended June 30, 2019, and 2018[72] Asset Management - As of June 30, 2019, approximately HKD 2.4 million of the net proceeds from the placement remained unused and deposited in a licensed bank in Hong Kong[21] - The total net proceeds of approximately HKD 30.9 million were allocated as follows: HKD 21.7 million for enhancing the product portfolio, HKD 2.4 million for enhancing information management systems, HKD 4.0 million for strengthening marketing, and HKD 2.8 million for working capital and other general corporate purposes[22] - On June 20, 2019, the company entered into an agreement for the sale of assets related to a life insurance plan for a consideration of HKD 9.5 million, which was completed on July 10, 2019[24] - On June 20, 2019, the company's executive director agreed to purchase assets of a life insurance plan for HKD 9,500,000, with the transaction completed on July 10, 2019[76] Other Financial Information - The company generated sales from goods amounting to HKD 73,545 thousand and service sales of HKD 8,306 thousand for the quarter[51] - The cost of goods sold for the period was HKD 60,335,000, an increase from HKD 48,115,000 in the previous year, reflecting a rise of 25.4%[65] - Other income for the three months ended June 30, 2019, was HKD 1,497,000, down from HKD 2,135,000 in the same period of 2018, a decrease of 29.9%[62] - The company incurred depreciation expenses of HKD 384,000 for property, plant, and equipment, compared to HKD 635,000 in the previous year, a decrease of 39.5%[65] - The total intangible asset amortization for the period was HKD 324,000, down from HKD 589,000 in the same period of 2018, a decrease of 44.9%[65] - The company has not made any tax provisions for Hong Kong profits tax for the three months ended June 30, 2019, due to no estimated taxable profits[66] - Rental expenses paid to a related company amounted to HKD 441,000 for the three months ended June 30, 2019, compared to HKD 467,000 for the same period in 2018, representing a decrease of 5.57%[73] - The rental expenses were paid to a related party, New Emerging County Antai Electronics Limited, in which the company's director has a direct interest[74] Shareholding Structure - Solution Smart Holdings Limited held a 29.32% stake in the company, with 1,125,896,000 shares as of June 30, 2019[27] - SMK Investment Company Limited owned 23.70% of the company, with 909,976,000 shares as of June 30, 2019[27] Audit and Review - The audit committee, consisting of three independent non-executive directors, reviewed the financial results for the quarter[38]

Sales Performance - Sales of key products, including two-way radios and baby monitors, decreased by 6.4% and 41.6% respectively during the fiscal year due to increased trade tensions between China and the United States[9] - Revenue increased from approximately HKD 297.1 million for the year ended March 31, 2018, to approximately HKD 323.5 million for the year ended March 31, 2019, representing an increase of about 8.9%[32] - Revenue from two-way radios decreased by approximately 6.4% from HKD 225.9 million to HKD 211.4 million, primarily due to reduced customer demand[32] - Revenue from baby monitors significantly decreased by approximately 41.6% from HKD 29.4 million to HKD 17.1 million, attributed to decreased demand for audio baby monitor products[32] - Service business revenue increased by approximately 36.6% from HKD 7.1 million to HKD 9.7 million, mainly due to the expansion of electronic manufacturing services[33] - Other products revenue surged by approximately 144.7% from HKD 34.8 million to HKD 85.2 million, driven by HKD 39.9 million from the new smart TV trading business[33] Business Strategy and Development - The company plans to diversify revenue sources by exploring opportunities in design engineering services and expanding its distribution network for related products[10] - The company anticipates using more outsourcing arrangements to enhance operational flexibility and reduce fixed cost burdens, potentially relocating production outside of China to meet customer demands[11] - The company is focused on enhancing its product portfolio and strengthening its information management systems to drive existing business growth[10] - The company has initiated smart TV trade business to explore opportunities in the electronic component distribution sector[9] - The company is committed to continuous research and development of new product models to enhance business efficiency and overall performance[11] - The company is actively seeking potential investment opportunities to explore new business prospects[11] - The company aims to improve profitability and mitigate risks through strategic negotiations with customers and suppliers[14] - The company aims to enhance its product portfolio and strengthen its information management systems to achieve business growth[17] - The company plans to diversify its revenue sources by leveraging its R&D capabilities to provide design engineering services[17] Financial Performance - The gross profit margin and profitability were impacted by exchange rate fluctuations and rising raw material costs, prompting the company to adjust its pricing strategies with customers and suppliers[14] - The company recorded a loss of HKD 9.7 million for the year ended March 31, 2019, compared to a profit of HKD 0.9 million for the previous year[40] - Cash and cash equivalents decreased from approximately HKD 29.7 million to HKD 24.6 million, a reduction of about HKD 5.1 million[47] - The debt-to-equity ratio increased to approximately 85.6% from 61.3%, primarily due to increased short-term borrowings for settling with suppliers[49] - The company’s available distributable reserves were approximately HKD 15,212,000, down from HKD 23,408,000 in 2018[165] - The company did not recommend any dividend payment for the fiscal year ending March 31, 2019[163] Corporate Governance - The board held 9 meetings during the fiscal year, ensuring effective governance and oversight of company strategies[72] - The company maintained compliance with GEM listing rules, demonstrating commitment to high standards of corporate governance[68] - The financial management team, led by the CFO, has over 20 years of experience in auditing and financial control, ensuring robust financial reporting[64] - The company aims to create long-term shareholder value while balancing the interests of broader stakeholders[72] - The company has three independent non-executive directors, with at least one possessing appropriate financial management expertise, in compliance with GEM listing rules[75] - The chairman and CEO roles are not separated, with Mr. Tan serving both positions since 2001, which the board believes enhances business planning and decision-making efficiency[76] - The board is responsible for maintaining proper accounting records to monitor the company's overall financial status and provides updates to shareholders on operational and financial conditions[78] - The board has established a diversity policy for its members, ensuring a balanced mix of skills, experience, and perspectives, which will be reviewed annually[84] - The audit committee was established on September 16, 2015, with a written terms of reference outlining its authority and responsibilities, including reviewing financial information and the effectiveness of internal controls[86] - The audit committee held 4 meetings during the year to oversee the internal control system and review the consolidated financial statements for the year ending March 31, 2019[88] - As of March 31, 2019, the audit committee consisted of three independent non-executive directors, ensuring no conflicts of interest with the current external auditor[89] - The remuneration committee held 2 meetings during the year to review the remuneration of directors and senior management, ensuring fairness and reasonableness[91] - As of March 31, 2019, the remuneration committee included three members, all of whom are independent non-executive directors[93] - The nomination committee held 2 meetings during the year to review the composition of the board and recommend re-election of retiring directors at the annual general meeting[94] Risk Management and Compliance - The company has implemented policies to monitor and assess risks related to sanctions laws from the US, EU, and Australia, ensuring compliance and protection of shareholder interests[98] - The board is responsible for maintaining an effective internal control system to safeguard the company's assets and shareholder interests[98] - The company has adopted appropriate accounting policies and has ensured that the consolidated financial statements are prepared on a going concern basis[97] - The company has established written policies and procedures applicable to all operating units to ensure effective internal control[98] - The company has not engaged in any transactions in Russia that could expose itself or its investors to sanction risks[101] - The company has implemented a semi-annual review of its internal control policies and procedures regarding compliance with sanction laws[101] - The board believes that the existing internal control system is sufficient and effective after a thorough review conducted by external consultants[102] Environmental, Social, and Governance (ESG) Initiatives - The company has established environmental protection procedures to comply with national standards, achieving ISO 14001:2015 certification for its Yunfu factory[130] - In the reporting year, the Yunfu factory recycled a total of 0.17 tons of non-hazardous waste, including waste lead-free tin dross[131] - The company reported that the discharged domestic wastewater met the local discharge standards, with specific pollutant concentrations such as COD at 156 mg/L, below the limit of 250 mg/L[133] - The company emphasizes the importance of stakeholder engagement in the preparation of its ESG report, collecting valuable feedback to improve internal management[127] - The board of directors is responsible for overseeing the company's ESG strategy and risk management, ensuring effective internal control systems are in place[126] - The company has implemented a greenification plan for its production and living areas, enhancing the environmental quality around its facilities[130] - The company maintains regular communication with environmental monitoring departments to ensure compliance with emission standards[130] - The company has committed to enhancing stakeholder participation in future ESG performance assessments[128] Employee and Social Responsibility - The company adheres to the "Safety First" principle, with no major accidents or injuries reported in the year[144] - The company conducts regular safety training and has established a safety production management system to mitigate risks[142] - The company encourages the use of video conferencing to reduce unnecessary overseas travel and carbon emissions[137] - The company has a strict recruitment policy ensuring equal opportunities regardless of gender, race, or age[139] - The company provides comprehensive employee benefits, including social insurance and paid leave for various circumstances[139] Shareholder Communication and Transparency - The company has established a written inquiry procedure for shareholders to contact the company secretary via email or postal mail[117] - The company is dedicated to timely, fair, accurate, and complete information disclosure to enable informed decision-making by shareholders and the public[118] - The company has established various communication channels to keep shareholders informed about key business decisions, including annual general meetings and reports[111] - The company commits to timely disclosure of any inside information to enhance operational transparency and accountability[113] Financial Auditing and Reporting - The consolidated financial statements have been audited by KPMG, and a resolution for the reappointment of the auditor will be presented at the upcoming annual general meeting[194] - The company has purchased directors and officers liability insurance during the year to protect its directors and senior officers from any claims arising from their duties[193] - The fees payable to KPMG for audit services for the year ending March 31, 2019, amounted to HKD 950,000[106] - The company has complied with the GEM Listing Rules and completed its second full financial year since listing, as of July 31, 2019[192]

Financial Performance - The company's revenue for the nine months ended December 31, 2018, was approximately HKD 252.2 million, an increase of about 9.7% compared to approximately HKD 229.9 million for the same period in 2017[4]. - The profit attributable to owners for the nine months ended December 31, 2018, was approximately HKD 3.2 million, compared to a loss of approximately HKD 6.6 million for the same period in 2017[4]. - The basic and diluted earnings per share for the nine months ended December 31, 2018, was approximately HKD 0.08, compared to a loss of HKD 0.17 for the same period in 2017[4]. - The gross profit for the nine months ended December 31, 2018, was HKD 22,681,000, compared to HKD 16,271,000 for the same period in 2017, reflecting a growth of about 39.5%[66]. - The net loss attributable to owners of the company for the nine months ended December 31, 2018, was HKD 3,201,000, a significant improvement from a loss of HKD 6,603,000 in the same period of 2017[66]. - The total comprehensive loss for the three months ended December 31, 2018, was HKD 4,337,000, compared to a loss of HKD 802,000 for the same period in 2017[68]. - Basic and diluted loss per share for the three months ended December 31, 2018, was HKD 0.06, compared to a loss of HKD 0.01 for the same period in 2017[68]. - The company reported a significant increase in other income for the nine months ended December 31, 2018, totaling HKD 6,658,000, compared to HKD 6,888,000 in the same period of 2017[66]. - The company’s financing costs for the nine months ended December 31, 2018, were HKD 1,314,000, compared to HKD 725,000 in the same period of 2017, indicating an increase of approximately 81.1%[66]. - The company’s administrative expenses for the nine months ended December 31, 2018, were HKD 18,870,000, compared to HKD 26,126,000 in the same period of 2017, showing a decrease of about 27.8%[66]. - The company reported a net foreign exchange loss of HKD 165,000 for the three months ended December 31, 2018, compared to a gain of HKD 625,000 for the same period in 2017[113]. - The company reported a current tax expense of HKD 1,045,000 for the nine months ended December 31, 2018, compared to HKD 361,000 for the same period in 2017, reflecting an increase in tax liabilities[117]. Revenue Breakdown - The revenue from two-way radios decreased by approximately 8.3% to about HKD 161.4 million for the nine months ended December 31, 2018, primarily due to reduced customer demand[7]. - The revenue from baby monitors decreased by approximately 18.6% to about HKD 15.2 million for the nine months ended December 31, 2018, mainly due to decreased demand for audio baby monitor products[7]. - The revenue from smart TVs, which began trading during the period, was approximately HKD 39.9 million for the nine months ended December 31, 2018[8]. - The revenue from other products increased by approximately 27.7% to about HKD 34.3 million for the nine months ended December 31, 2018, mainly due to increased sales to customers in China[7]. - Revenue from the United States for the nine months ended December 31, 2018, was HKD 113,417,000, up from HKD 93,612,000 in the same period of 2017, marking an increase of approximately 21.1%[104]. Cost Management - Sales cost increased by approximately 7.4% from HKD 213.6 million for the nine months ended December 31, 2017, to HKD 229.5 million for the nine months ended December 31, 2018, primarily due to the launch of smart TV trading business[31]. - Gross profit margin improved from approximately 7.1% for the nine months ended December 31, 2017, to approximately 9.0% for the nine months ended December 31, 2018, attributed to the company's cost restructuring plan[31]. - The company will continue to seek opportunities for operational cost reduction and flexibility by converting fixed costs into variable costs[27]. - The company expects to increase the use of outsourcing arrangements to enhance flexibility in fixed cost management[30]. - The company incurred interest expenses of HKD 1,314,000 for the nine months ended December 31, 2018, compared to HKD 725,000 for the same period in 2017, reflecting an increase in financing costs[116]. Strategic Initiatives - The company aims to enhance its product portfolio and strengthen its information management systems to achieve growth in existing businesses[17]. - The company plans to enhance its product portfolio by developing new high-end two-way radios and baby monitor products, with a focus on new features and technologies[27]. - The company aims to diversify its revenue sources by leveraging its R&D capabilities to provide design engineering services to clients[28]. - The company is exploring opportunities in the smart TV trade to diversify revenue sources and enhance business growth potential[30]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[78]. Shareholder Information - The company plans to issue up to 450 million shares at a price of HKD 0.19 per share, representing approximately 11.7% of the existing issued share capital[37]. - The total amount expected from the share placement is HKD 85.5 million, with a net amount of approximately HKD 84.4 million after deducting placement commissions and other expenses[39]. - Major shareholders include Solution Smart Holdings Limited with a 29.32% stake and SMK Investment Company Limited with a 23.39% stake[49]. - The company does not recommend the payment of dividends for the nine months ended December 31, 2018[36]. - The company has approximately HKD 6.1 million of unutilized funds deposited in a licensed bank in Hong Kong as of December 31, 2018[41]. Corporate Governance - The company has adhered to the corporate governance code as per the GEM listing rules during the nine months ending December 31, 2018, with some deviations noted[55]. - The roles of the chairman and CEO have not been separated, with Mr. Tan serving in both capacities since 2001, which the board believes enhances operational efficiency[57]. - The company has adopted a share option scheme to attract and retain talented participants for future development, with 115,200,000 options granted on October 2, 2018[60][62]. - No share options were exercised, lapsed, or cancelled during the nine months ending December 31, 2018[62]. - The company has not purchased, sold, or redeemed any of its listed securities during the nine months ending December 31, 2018[59]. Compliance and Reporting - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards and the GEM Listing Rules, ensuring compliance with applicable disclosure requirements[82]. - The implementation of HKFRS 9 and HKFRS 15 is not expected to have a significant impact on the company's financial performance and position[83][90]. - The company has established an expected credit loss model based on historical settlement records and available forward-looking information, concluding that the impact of expected credit losses on financial assets is minimal[89]. - The company did not early adopt any new or revised standards that have been issued but are not yet effective, anticipating no significant impact on its financial performance[85]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited financial results for the third quarter[65].