Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 292,862,000, a decrease of 8.3% compared to HKD 319,513,000 for the same period in 2021[9] - Gross profit for the six months ended June 30, 2022, was HKD 41,916,000, representing an increase of 2.3% from HKD 40,968,000 in the previous year[9] - Operating profit for the six months ended June 30, 2022, was a loss of HKD 2,287,000, compared to a profit of HKD 217,000 in the same period of 2021[9] - The net profit for the six months ended June 30, 2022, was a loss of HKD 4,109,000, compared to a loss of HKD 1,930,000 in the previous year[9] - The company reported a total comprehensive loss of HKD 16,175,000 for the six months ended June 30, 2022, compared to a loss of HKD 12,683,000 in the same period of 2021[11] - Basic and diluted loss per share for the six months ended June 30, 2022, was HKD 0.85, compared to HKD 0.83 in the previous year[11] - The company experienced a foreign exchange loss of HKD 12,066,000 for the six months ended June 30, 2022, compared to a loss of HKD 10,753,000 in 2021[11] - The company experienced a total comprehensive loss of HKD 17,707,000 for the six months ended June 30, 2022, compared to a loss of HKD 16,604,000 in the previous year[17] Revenue Breakdown - Total revenue for the three months ended June 30, 2022, was HKD 196,374,000, an increase of 44.5% from HKD 135,862,000 in the same period of 2021[9] - Revenue from South Korea for the six months ended June 30, 2022, was HKD 152,462,000, down 20.1% from HKD 190,876,000 in 2021[26] - Revenue from China surged to HKD 22,408,000, a 51% increase from HKD 14,800,000 in the previous year[26] - Customer A contributed HKD 73,013,000 in revenue for the three months ended June 30, 2022, down 16.5% from HKD 87,463,000 in the same period of 2021[27] - For the six months ended June 30, 2022, Customer A's revenue was HKD 115,894,000, a decrease of 31.9% compared to HKD 170,198,000 in 2021[27] - Revenue contributions from operations in Taiwan and Vietnam were approximately HKD 19.7 million and HKD 26.9 million, respectively, accounting for about 15.91% of total revenue[50] Expenses and Costs - Research and development expenses for the six months ended June 30, 2022, were HKD 13,048,000, an increase from HKD 12,037,000 in 2021[9] - The company’s administrative expenses for the six months ended June 30, 2022, were HKD 26,123,000, an increase from HKD 23,933,000 in 2021[9] - Sales and distribution expenses increased by approximately 7.9% to HKD 9.6 million for the six months ended June 30, 2022, from HKD 8.9 million for the same period in 2021[57] - Interest expenses for bank loans due within five years were HKD 687,000 for the three months ended June 30, 2022, a decrease of 19.9% from HKD 858,000 in 2021[30] - Total interest expenses for the six months ended June 30, 2022, were HKD 1,206,000, down 32.6% from HKD 1,790,000 in the same period of 2021[30] Assets and Liabilities - As of June 30, 2022, total assets decreased to HKD 376,051,000 from HKD 319,884,000 in the previous year, reflecting a 17.4% increase[13] - The company's net asset value decreased to HKD 123,658,000 from HKD 139,833,000, representing a decline of 11.6%[15] - The company’s total liabilities increased to HKD 381,155,000 from HKD 329,936,000, marking a 15.5% rise[13] - Trade payables increased to HKD 171.3 million as of June 30, 2022, from HKD 113.6 million as of December 31, 2021[11] - Trade receivables rose to HKD 72,359,000, a 55% increase compared to HKD 46,686,000 in 2021[13] - Trade receivables as of June 30, 2022, amounted to HKD 113,361,000, an increase of 32.3% from HKD 85,684,000 on December 31, 2021[41] - The expected credit loss provision for trade receivables was HKD 41,057,000 as of June 30, 2022, compared to HKD 39,026,000 on December 31, 2021[43] Cash Flow and Working Capital - The company reported a net cash outflow from operating activities of HKD 41,000, compared to HKD 7,985,000 outflow in the previous year, indicating improved cash management[20] - Cash and cash equivalents decreased to HKD 6,130,000 from HKD 22,386,000, a decline of 72.6%[20] - The group's cash and bank balances were approximately HKD 28.0 million as of June 30, 2022, down from HKD 47.7 million as of December 31, 2021[64] - The group maintained sufficient working capital with cash and bank balances of approximately HKD 6.1 million as of June 30, 2022, compared to HKD 22.4 million as of December 31, 2021[65] Corporate Governance and Compliance - The company did not declare any dividends for the six months ended June 30, 2022, consistent with 2021[36] - The board did not recommend any dividends for the six months ended June 30, 2022, consistent with the previous year[94] - The company has complied with the corporate governance code under GEM listing rules, with some deviations noted regarding the provision of regular updates to the board[89] - The Compliance Committee held two meetings in the six months ending June 30, 2022, with a full attendance rate from all members[102] - The Compliance Committee reported no significant non-compliance events during the six months ending June 30, 2022[102] - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2022, and confirmed compliance with applicable standards and GEM listing rules[104] Future Outlook and Strategy - The company plans to launch new products, including upgraded AC routers, Wi-Fi 6 routers, IP cameras, and home cloud servers in the third and fourth quarters of 2022[52] - The company aims to enhance its market position by increasing brand awareness and profitability in emerging Asian markets[51] - The company will continue to focus on product innovation, market expansion, and operational excellence to deliver returns to shareholders[54]

Financial Performance - Revenue for the three months ended March 31, 2022, was HKD 96,488,000, a decrease of 47.5% compared to HKD 183,651,000 for the same period in 2021[5] - Gross profit for the same period was HKD 14,917,000, down 26.5% from HKD 20,368,000 in 2021[5] - Operating loss for the three months ended March 31, 2022, was HKD 9,005,000, compared to an operating loss of HKD 2,947,000 in 2021[5] - Loss before tax for the period was HKD 9,393,000, significantly higher than the loss of HKD 3,581,000 in the previous year[5] - Total comprehensive loss for the three months was HKD 11,593,000, compared to HKD 6,088,000 in 2021, indicating a 90.5% increase in losses[7] - Basic and diluted loss per share for the period was HKD 1.61, compared to HKD 0.75 in the same period last year[7] Research and Development - Research and development expenses increased to HKD 7,567,000 from HKD 6,563,000, reflecting a rise of 15.3%[5] - Research and development expenses increased by approximately 15.2% from HKD 6.6 million in the three months ended March 31, 2021, to HKD 7.6 million in the same period of 2022[32] Other Income and Costs - Other income for the period was HKD 1,886,000, up from HKD 934,000, representing a growth of 102.5%[5] - Financial costs decreased to HKD 388,000 from HKD 634,000, a reduction of 38.8%[14] - The company reported a foreign exchange loss of HKD 2,201,000 for the period, slightly improved from HKD 2,445,000 in 2021[5] Market Outlook and Strategy - The company expects growth in the Asia-Pacific market, including Vietnam and Taiwan, over the next few years[22] - The company aims to enhance its position as a manufacturer focused on wireless network product design and development by increasing brand awareness and profitability[23] - The company will continue to implement business strategies to improve growth in emerging markets and enhance overall competitiveness and market share[23] - The current business environment remains affected by the ongoing COVID-19 pandemic and geopolitical tensions, but the company remains cautiously optimistic about economic recovery[25] Financial Position - As of March 31, 2022, the group's total borrowings amounted to approximately HKD 99.2 million, a decrease from HKD 108.6 million as of December 31, 2021[35] - The group's cash and bank balances were approximately HKD 31.6 million as of March 31, 2022, down from HKD 47.7 million as of December 31, 2021[35] - The debt-to-equity ratio increased to 54.8% as of March 31, 2022, compared to 46.1% as of December 31, 2021[35] - The current ratio remained stable at approximately 1.0 as of March 31, 2022, consistent with December 31, 2021[35] - The asset-to-liability ratio improved to 79.4% as of March 31, 2022, from 80.2% as of December 31, 2021[37] - The group's cash and bank balances decreased to approximately HKD 5.4 million as of March 31, 2022, from HKD 22.4 million as of December 31, 2021[37] - The net current liabilities were approximately HKD 8.3 million as of March 31, 2022, down from HKD 10.1 million as of December 31, 2021[37] - The group had no significant contingent liabilities as of March 31, 2022, consistent with the previous year[38] - The group had no major acquisitions or disposals of subsidiaries or associates during the three months ended March 31, 2022[42] Employment and Governance - The number of employees decreased to 865 as of March 31, 2022, from 962 as of December 31, 2021[43] - The company did not recommend any dividend payment for the three months ended March 31, 2022, consistent with the previous year[62] - The company maintained sufficient public float as required under GEM listing rules as of March 31, 2022[59] - The company has adopted the trading standards as per GEM listing rules for directors' securities transactions, confirming compliance as of March 31, 2022[61] - The company established an audit committee effective January 18, 2018, responsible for overseeing financial reporting and internal control systems[74] - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ended March 31, 2022, and found them compliant with applicable standards[74] Legal and Shareholder Matters - The company faced allegations regarding the legitimacy of its major shareholder Absolute Skill, including claims of involvement in illegal fundraising activities[71] - The company received a petition from its controlling shareholder Absolute Skill on April 12, 2022, seeking to remove all directors and terminate a rights issue[64] - A second petition was received on May 4, 2022, requesting to prohibit certain individuals from serving as directors and to stop a rights issue[65] - The company held a special general meeting on April 29, 2022, to address shareholder requests, including resolutions to remove all directors[68] - There were no significant subsequent events affecting the group's assets and liabilities or future operations after March 31, 2022[63]

Financial Performance - The company reported a significant net loss of approximately HKD 42.6 million for the year ended December 31, 2021[10]. - The company recorded a revenue of approximately HKD 621.1 million for the year ended December 31, 2021, representing a growth of 2.2% compared to HKD 607.7 million in 2020[17]. - The company experienced a significant decrease in gross profit, dropping from approximately HKD 92.5 million in 2020 to about HKD 62.9 million in 2021, resulting in a gross margin of approximately 10.1%[19]. - The company reported a net loss of approximately HKD 42.6 million for the year ended December 31, 2021, compared to a loss of about HKD 8.2 million in 2020[26]. - Sales to the top five customers accounted for approximately 64.2% of total revenue for the year ended December 31, 2021[83]. - The group reported a loss of approximately HKD 42,594,000 for the year ended December 31, 2021[168]. - As of December 31, 2021, the group's net current liabilities amounted to approximately HKD 10,052,000[168]. Market and Business Strategy - The company aims to strengthen its R&D capabilities to maintain market leadership and create value for shareholders[10]. - The company operates in over 40 countries and regions, focusing on the development, manufacturing, and sales of quality network products[10]. - The company expects growth in the Asia-Pacific market, particularly in Vietnam and Taiwan, which contributed approximately 20.91% of total revenue[12]. - Revenue from the largest market, South Korea, accounted for approximately 62.1% of total revenue, with a decrease of about 6.6% year-on-year[13]. - The company aims to enhance its brand recognition and profitability while expanding its market share in emerging markets[14]. - The management is actively seeking new profitable contracts for electronic network products to enhance revenue[168]. Challenges and Risks - The company acknowledges the challenges posed by the US-China trade war and the COVID-19 pandemic on global market conditions[10]. - The company faces various financial risks, which are disclosed in the financial statements, emphasizing the importance of risk management[57]. - The group is exposed to credit risk, with 23.1% of trade receivables coming from its largest customer and five largest customers, indicating a concentration of credit risk[42]. - The group maintains a slight liquidity risk, as most financial assets and liabilities are due within one year, supported by operational cash flows[44]. Corporate Governance - The company is committed to maintaining high standards of corporate governance, with relevant practices detailed in the corporate governance report[116]. - The board of directors includes a mix of executive and independent non-executive members, with recent changes in appointments noted[74]. - The board has established specific committees to oversee various aspects of the company's operations[143]. - The audit committee held seven meetings during the year ending December 31, 2021, and reviewed the financial statements before submission to the board[147]. - The remuneration committee ensures that no director determines their own compensation[148]. - The company has adopted internal guidelines requiring board approval for major operational projects and investment decisions[139]. Employee and Talent Management - The management team expressed gratitude for the efforts and contributions of all employees during the reporting period[10]. - The company has adopted a stock option plan to attract and retain talent, with competitive compensation packages for employees[64]. - The group maintained a workforce of 850 employees as of December 31, 2021, down from 881 employees in 2020, indicating a reduction of approximately 3.5%[64]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report highlights the company's commitment to sustainable development and corporate social responsibility, focusing on balancing profitability with environmental and social impacts[190]. - The ESG report covers the company's performance in environmental protection, human resources, operational practices, and community engagement for the fiscal year ending December 31, 2021[192]. - The board of directors is responsible for overseeing ESG-related risks and opportunities, and has established a dedicated ESG working group to assist in implementing strategies and monitoring performance[196]. - The company emphasizes the importance of prudent environmental and social management for sustainable economic development, considering climate-related issues in its ESG report[194]. Future Outlook - The management believes that the current losses are temporary and expects the company to perform excellently in the coming years[10]. - The company plans to raise up to approximately HKD 23,100,000 through a rights issue to improve liquidity[168]. - The board believes that the group will have sufficient financial resources to meet its financial obligations for the next twelve months[169].