Financial Performance - The Group recorded revenue of approximately HK$528.4 million for the year, representing an increase of 155% compared to 2020[16]. - Loss attributable to equity holders of the Company for the year amounted to approximately HK$43.9 million, an increase in loss of approximately HK$27.0 million compared to the loss of approximately HK$16.9 million in 2020[16]. - The Group's revenue for the Year amounted to approximately HK$528.4 million, representing an increase of approximately 155% compared to HK$206.9 million in 2020[36]. - The Group recorded a loss attributable to equity holders of approximately HK$43.9 million, an increase in loss of approximately HK$27.0 million compared to HK$16.9 million in 2020[36]. - The Group's total revenue for the Year amounted to approximately HK$528,350,000, an increase of approximately HK$321,377,000 compared to HK$206,973,000 in 2020[64]. - The Group's total revenue for the year was approximately HK$528,350,000, an increase of about 155% compared to approximately HK$206,973,000 in 2020[69]. Sales Performance - Sales of thin film transistor liquid crystal display (TFT-LCD) panels and modules reached approximately HK$431.8 million, more than doubling compared to 2020[20]. - Revenue from electronic signage business was approximately HK$15.3 million, an increase of approximately 30% compared to 2020[20]. - Sales of polarisers amounted to approximately HK$44.9 million, representing an increase of approximately 25% compared to 2020[20]. - Sales of integrated circuits for the Year were approximately HK$7.4 million, an increase of approximately HK$6.2 million compared to 2020[20]. - Sales of health-related products amounted to approximately HK$19.2 million, an increase of approximately HK$14.7 million compared to HK$4.5 million in 2020[22]. - Sales of TFT-LCD panels and modules amounted to approximately HK$431,770,000, representing an increase of approximately HK$293,304,000 compared to approximately HK$138,466,000 in 2020[40]. - Sales of integrated circuits increased to approximately HK$7,428,000, up by approximately HK$6,232,000 from approximately HK$1,196,000 in 2020[40]. - Sales of polarisers reached approximately HK$44,865,000, reflecting a 25% increase compared to approximately HK$35,794,000 in 2020[41]. - Sales of electronic signage products amounted to approximately HK$15,266,000, representing a 30% increase compared to approximately HK$11,774,000 in 2020[42]. - Sales of health-related products increased to approximately HK$19,162,000, up by approximately HK$14,655,000 from approximately HK$4,507,000 in 2020[49]. - Sales of optics products decreased to approximately HK$3,171,000, a decline of approximately 50% compared to approximately HK$6,353,000 in 2020[46]. Cost and Expenses - The Group's cost of sales for the Year was approximately HK$510,795,000, which increased by approximately HK$320,926,000 compared to HK$189,869,000 in 2020[65]. - The total cost of sales increased to approximately HK$510,795,000, up about 170% from approximately HK$189,869,000 in 2020[70]. - Distribution and selling expenses increased by approximately 57% to about HK$15,843,000 from approximately HK$10,119,000 in 2020[74]. - General and administrative expenses decreased by approximately 5% to about HK$25,472,000 from approximately HK$26,747,000 in 2020[80]. - Research and development expenses remained stable at approximately HK$1,301,000, compared to approximately HK$1,394,000 in 2020[76]. Investment and Fair Value - The fair value of the Group's investment in Mobvoi Inc. dropped significantly during the year due to new policies in the education sector in the People's Republic of China[16]. - The fair value of the Group's investment in Mobvoi dropped significantly, resulting in a fair value loss of approximately HK$21.1 million for the Year[23]. - Fair value of the Group's investment in Mobvoi dropped to approximately HK$38,461,000 as of 31 December 2021, down from approximately HK$59,547,000 as of 31 December 2020, resulting in a fair value loss of approximately HK$21,086,000 during the Year[52]. - A fair value loss of approximately HK$21,086,000 was recognized on the investment in Mobvoi during the year[131]. Financial Position and Liquidity - The current ratio decreased to 1.7 times from 2.3 times in 2020, indicating a reduction in liquidity[96]. - As of December 31, 2021, the Group's cash and cash equivalents amounted to approximately HK$88,512,000, an increase from HK$76,403,000 in 2020, representing a growth of 14%[99]. - The Group's total bank borrowings as of December 31, 2021, were approximately HK$5,888,000, compared to nil in 2020[102]. - The Group's unutilized banking facilities restricted for trade finance purposes amounted to approximately HK$15.6 million as of December 31, 2021[106]. - The Group charged its trade receivables of approximately HK$5,377,000 in favor of a bank to secure banking facilities as of December 31, 2021[121]. - The Group's management has adopted a prudent financial management approach, maintaining a healthy liquidity position throughout the year[109]. - The Group has no material contingent liabilities as of December 31, 2021, maintaining a risk-averse financial position[120]. Corporate Governance - The Company complied with all code provisions of the Corporate Governance Code throughout the year[150]. - The Board comprises four executive Directors and five independent non-executive Directors as of the date of the annual report[153]. - The company has complied with all provisions of the corporate governance code effective during the year[154]. - The board consists of four executive directors and five independent non-executive directors as of the report date[156]. - All directors have adhered to the required trading standards and code of conduct regarding securities transactions during the year[155]. - Four regular board meetings were held during the year, with all directors attending all meetings[170]. - The company has arranged appropriate insurance coverage for directors and senior management against legal actions arising from corporate activities, reviewed annually[165]. - Independent non-executive directors have entered into appointment letters for a term of three years[175]. - The management provides monthly updates to the board in accordance with corporate governance code provisions[164]. - The company continuously updates directors on the latest developments regarding GEM Listing Rules to ensure compliance[174]. - Continuous professional development is mandated for all directors to ensure their contributions remain informed and relevant[173]. - All Directors are subject to retirement by rotation at least once every three years, with one-third of the Directors retiring at each annual general meeting[180]. - The Company has appointed five independent non-executive Directors, representing more than one-third of the Board, ensuring compliance with GEM Listing Rules[183]. - The audit committee held four meetings during the year, with all members attending all meetings[194]. - The audit committee reviewed the Company's annual financial statements and internal control systems during the year[196]. - The remuneration committee held one meeting to review the remuneration policy and structure for Directors and senior management[200]. - The Company has established three Board committees: audit committee, remuneration committee, and nomination committee, to oversee specific aspects of its affairs[188]. - The audit committee consists of three independent non-executive Directors, with Ms. Hsu Wai Man Helen serving as chairperson[189]. - The remuneration committee is responsible for making recommendations on the remuneration of Directors and senior management[199]. - The Company received annual independence confirmation from each independent non-executive Director, affirming their independence[185]. - The Company has established a formal and transparent procedure for developing remuneration policies for Directors and senior management[199].

[Financial Summary](index=3&type=section&id=%E6%91%98%E8%A6%81) [Performance Overview](index=3&type=section&id=%E6%91%98%E8%A6%81) The Group's revenue grew significantly, but its net loss widened, and no interim dividend was declared Key Performance Indicators for the First Three Quarters of 2021 | Metric | For the nine months ended September 30, 2021 | For the nine months ended September 30, 2020 | | :--- | :--- | :--- | | Revenue | Approx. HK$377.5 million | Approx. HK$101.8 million | | Loss Attributable to Equity Holders of the Company | Approx. HK$39.7 million | Approx. HK$17.6 million | | Interim Dividend | Nil | Nil | [Financial Performance](index=4&type=section&id=%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE) [Unaudited Consolidated Statement of Comprehensive Income](index=4&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B6%9C%E5%90%88%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) Revenue grew substantially, but higher costs and other net losses led to a wider operating and net loss Summary of Consolidated Statement of Comprehensive Income (For the nine months ended September 30) | Item (HK$'000) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Revenue | 377,462 | 101,778 | | Gross Profit | 11,420 | 1,830 | | Other net losses | (18,843) | 6,993 | | Operating loss | (39,940) | (18,393) | | Loss for the period | (40,297) | (18,878) | | Loss attributable to equity holders of the Company | (39,676) | (17,638) | | Basic and diluted loss per share | (2.67) HK cents | (1.19) HK cents | [Unaudited Consolidated Statement of Changes in Equity](index=6&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) The statement details changes in equity components like share capital and reserves for the period - The report includes an unaudited consolidated statement of changes in equity, detailing movements in share capital, reserves, and retained earnings, with "Other reserve" mainly from a group reorganization and "Revaluation reserve" from fair value changes of financial assets[13](index=13&type=chunk)[14](index=14&type=chunk) [Notes to the Consolidated Financial Results](index=7&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E6%A5%AD%E7%B8%BE%E9%99%84%E8%A8%BB) These notes detail accounting policies, revenue segmentation, and the source of significant other losses [Revenue Analysis](index=8&type=section&id=3.%20%E6%94%B6%E5%85%A5) Total revenue grew 271% YoY, driven by a surge in sales of TFT-LCD panels and modules Revenue Breakdown by Product (For the nine months ended September 30, HK$'000) | Product Category | 2021 (Unaudited) | 2020 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | TFT-LCD panels and modules | 297,644 | 66,874 | +345% | | Polarizers | 37,683 | 18,668 | +102% | | Health-related products | 15,628 | 2,810 | +456% | | Electronic advertising boards | 11,697 | 5,497 | +113% | | Integrated circuits | 6,291 | 53 | +11770% | | Optical products | 2,867 | 1,452 | +97% | | Others | 5,652 | 6,424 | -12% | | **Total** | **377,462** | **101,778** | **+271%** | [Analysis of Other Net (Losses)/Gains](index=9&type=section&id=4.%20%E5%85%B6%E4%BB%96%EF%BC%88%E8%99%A7%E6%90%8D%EF%BC%89%E2%95%B1%E6%94%B6%E7%9B%8A%E6%B7%A8%E9%A1%8D) The Group recorded a significant net loss from other items, primarily due to a fair value loss on its investment in Mobvoi Inc - The Group's investment in Mobvoi Inc is classified as a financial asset at fair value through profit or loss, with its fair value declining to approximately **HK$40.3 million** from HK$59.55 million, resulting in a fair value loss of **HK$19.25 million**[23](index=23&type=chunk) [Dividends and Loss Per Share](index=10&type=section&id=7.%20%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF%20&%208.%20%E6%AF%8F%E8%82%A1%E5%9F%BA%E6%9C%AC%E5%8F%8A%E6%94%A4%E8%96%84%E8%99%A7%E6%90%8D) No interim dividend was declared, and the loss per share increased due to a wider net loss attributable to shareholders - The Board of Directors did not declare an interim dividend for the nine months ended September 30, 2021[28](index=28&type=chunk) Calculation of Loss Per Share | Item | For the nine months ended September 30, 2021 | For the nine months ended September 30, 2020 | | :--- | :--- | :--- | | Loss attributable to equity holders of the Company (HK$'000) | (39,676) | (17,638) | | Weighted average number of ordinary shares in issue ('000 shares) | 1,483,687 | 1,483,687 | | Basic and diluted loss per share | (2.67) HK cents | (1.19) HK cents | [Management Discussion and Analysis](index=11&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Business Review and Prospects](index=11&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E5%89%8D%E6%99%AF) Revenue grew 2.7 times, but a fair value loss on an investment widened the net loss despite successful new business expansion - Despite revenue growth of 2.7 times to **HK$377 million**, the loss attributable to equity holders widened by 125% to **HK$39.68 million** due to a recognized fair value loss on the investment in Mobvoi[32](index=32&type=chunk) - Sales from the core business of TFT-LCD panels and modules increased **3.5 times** year-over-year, while revenue from polarizers doubled, and sales of integrated circuits also increased significantly[33](index=33&type=chunk) - New business expansion was successful: revenue from the electronic advertising board business more than doubled, and sales of health-related products (K-clean disinfection series) grew nearly **5-fold** to **HK$15.63 million**[34](index=34&type=chunk)[36](index=36&type=chunk) - The fair value of the investment in Mobvoi dropped significantly due to the negative impact of new Chinese government policies on after-school tutoring, leading to a fair value loss of approximately **HK$19.25 million**[37](index=37&type=chunk) [Financial Review](index=13&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) Revenue grew 271% due to strong demand, but a significant investment loss was the primary driver of the increased net loss - Total revenue increased by **271%** year-over-year to **HK$377 million**, mainly driven by demand for display components from remote learning and work-from-home models[40](index=40&type=chunk) - Gross profit increased from HK$1.83 million to **HK$11.42 million**, primarily due to higher revenue and improved product gross margins[41](index=41&type=chunk) - Other net losses of **HK$18.84 million** were recorded, mainly due to a **HK$19.25 million** fair value loss on the investment in Mobvoi[42](index=42&type=chunk) - Distribution and selling expenses increased by **62%** to **HK$13.02 million**, mainly due to higher sales commissions, staff costs, and promotional expenses for new products[44](index=44&type=chunk) - The loss attributable to equity holders of the Company widened to **HK$39.68 million**, primarily due to the fair value loss on the Mobvoi investment[46](index=46&type=chunk) [Other Disclosures](index=15&type=section&id=%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A0%85) [Directors' and Chief Executives' Interests](index=15&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%AC%8A%E7%9B%8A) Director Mr. Cheng Wai Tak is the controlling shareholder, holding a 62.39% interest in the company Directors' Shareholdings (as at September 30, 2021) | Director's Name | Capacity | Number of shares held | Percentage of issued shares | | :--- | :--- | :--- | :--- | | Mr. Cheng Wai Tak | Interest of a controlled corporation and beneficial owner | 925,647,151 | 62.39% | | Mr. Kan Man Wai | Beneficial owner | 320,000 | 0.02% | - Substantial shareholder Winful Enterprises Limited, wholly owned by Mr. Cheng Wai Tak, held **923,427,151 shares**, representing **62.24%** of the issued shares[53](index=53&type=chunk)[55](index=55&type=chunk) [Share Option Scheme and Others](index=16&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83%E5%8F%8A%E5%85%B6%E4%BB%96) No share options have ever been granted under the 2014 scheme, and no share transactions were conducted by the company - No share options have been granted by the Company since the adoption of the share option scheme in 2014[56](index=56&type=chunk)[57](index=57&type=chunk) - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares[60](index=60&type=chunk) [Corporate Governance and Compliance](index=17&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%90%88%E8%A6%8F) The company complied with governance codes but faces ongoing SFC legal proceedings regarding alleged breaches of director duties - The Company has complied with the Corporate Governance Code and has an audit committee comprising three independent non-executive directors[69](index=69&type=chunk)[70](index=70&type=chunk) - The controlling shareholder, Mr. Cheng Wai Tak, and Winful Enterprises have provided non-competition undertakings[62](index=62&type=chunk) - The Hong Kong SFC initiated legal proceedings in 2019 against the Company and certain directors, including Mr. Cheng Wai Tak, alleging a breach of directorial duties, with proceedings ongoing[66](index=66&type=chunk)[67](index=67&type=chunk)

Financial Performance - For the six months ended June 30, 2021, the group recorded revenue of approximately HKD 231.2 million, compared to HKD 37.7 million for the same period in 2020, representing a significant increase[7]. - The loss attributable to equity holders of the company for the six months ended June 30, 2021, was approximately HKD 3.0 million, an improvement from a loss of HKD 17.5 million for the same period in 2020[7]. - Gross profit for the six months ended June 30, 2021, was HKD 17.7 million, compared to a gross loss of HKD 1.6 million for the same period in 2020[9]. - Operating loss for the six months ended June 30, 2021, was HKD 3.2 million, compared to an operating loss of HKD 10.1 million for the same period in 2020, indicating improved operational efficiency[9]. - Total comprehensive loss for the six months ended June 30, 2021, was HKD 3.5 million, compared to HKD 18.6 million for the same period in 2020, reflecting a reduction in overall losses[11]. - The company reported a basic and diluted loss per share of HKD 0.20 for the six months ended June 30, 2021, compared to HKD 1.18 for the same period in 2020, indicating a reduction in loss per share[11]. - The company reported a loss of HKD 3,462,000 for the period, with non-controlling interests accounting for HKD 430,000 of this loss[17]. - The company’s retained earnings showed a loss of HKD 17,474,000 for the period, indicating a significant decrease in profitability[17]. - The company reported a loss attributable to equity holders of HKD 3,032,000 for the six months ended June 30, 2021, an improvement from a loss of HKD 17,474,000 in the same period of 2020[71]. - The gross loss attributable to equity holders decreased by approximately 83% to about HKD 3,032,000 from approximately HKD 17,474,000 in the same period of 2020[86]. Revenue Breakdown - For the six months ended June 30, 2021, the revenue from the main products was HKD 231,168 thousand, a significant increase from HKD 37,733 thousand in the same period of 2020, representing a growth of approximately 514%[59]. - The revenue from TFT-LCD panels and modules reached HKD 174,217 thousand, compared to HKD 20,096 thousand in the previous year, indicating an increase of about 769%[59]. - Revenue from health-related products surged to HKD 12,182 thousand, up from HKD 1,254 thousand, marking a growth of approximately 871%[59]. - The company reported external customer revenue by geographic location, with Hong Kong contributing HKD 160,777 thousand, a rise from HKD 27,895 thousand, reflecting an increase of about 476%[60]. - Revenue from major customers (each contributing 10% or more to total revenue) for the six months ended June 30, 2021, was HKD 85,523,000, compared to HKD 12,075,000 for the same period in 2020, representing a significant increase[62]. - The revenue from electronic advertising board products was approximately HKD 7,793,000, more than double the HKD 3,719,000 recorded in the same period of 2020[88]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2021, were HKD 18.5 million, down from HKD 34.0 million as of December 31, 2020, highlighting liquidity challenges[13]. - The company reported a net cash generated from operating activities of HKD 7,733,000 for the six months ended June 30, 2021, compared to a net cash used of HKD 23,303,000 in the same period of 2020[20]. - The cash and cash equivalents increased to HKD 81,588,000 as of June 30, 2021, up from HKD 44,074,000 at the end of the previous year[20]. - The company had cash and cash equivalents of approximately HKD 81,588,000 as of June 30, 2021, compared to HKD 76,403,000 as of December 31, 2020[102]. Assets and Liabilities - As of June 30, 2021, total liabilities amounted to HKD 117.1 million, an increase from HKD 68.8 million as of December 31, 2020[15]. - The company's total equity attributable to equity holders was HKD 147.6 million as of June 30, 2021, compared to HKD 151.1 million as of December 31, 2020[15]. - The company’s financial liabilities increased to HKD 114,835,000 as of June 30, 2021, compared to HKD 65,851,000 at the end of 2020[28]. - The company reported accounts payable of HKD 95,177,000 as of June 30, 2021, compared to HKD 44,885,000 as of December 31, 2020[82]. - The company’s accounts receivable decreased to HKD 16,893,000 from HKD 32,606,000, indicating a reduction in credit sales or improved collection efforts[28]. - The company’s lease liabilities decreased slightly to HKD 10,699,000 from HKD 11,563,000, suggesting better management of lease obligations[28]. - Non-current assets as of June 30, 2021, totaled HKD 15,067,000, up from HKD 9,867,000 as of December 31, 2020, indicating growth in asset value[62]. Expenses - Distribution and selling expenses increased by approximately 74% to about HKD 8,816,000, primarily due to increased employee costs, sales commissions, transportation, and promotional expenses[96]. - Research and development expenses rose by approximately 17% to about HKD 768,000, mainly due to increased employee costs[98]. - Interest expenses on lease liabilities decreased to HKD 246,000 for the six months ended June 30, 2021, from HKD 360,000 in the same period of 2020, indicating improved cost management[65]. Corporate Governance and Shareholding - As of June 30, 2021, Mr. Zheng Weide holds 923,427,151 shares through Winful Enterprises Limited, representing 62.24% of the company's issued shares[118]. - Mr. Zheng Weide is also recognized as the beneficial owner of an additional 2,220,000 shares, bringing his total beneficial ownership to 925,647,151 shares, or 62.39%[120]. - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with GEM listing rules[130]. - The company has adopted the principles and code provisions of the corporate governance code as per GEM Listing Rules Appendix 15, and has complied with all code provisions during the six months ended June 30, 2021[139]. - The independent non-executive director Xu Huimin resigned from the board of Mei Medical Holdings Limited effective March 25, 2021, and the company's shares were delisted on the same date[140]. - The audit committee has been established and consists of three independent non-executive directors, with Xu Huimin serving as the chairperson, ensuring compliance with the corporate governance code[141].

Company Overview - Perfect Optronics Limited is incorporated in the Cayman Islands and listed on the GEM of the Hong Kong Stock Exchange[1]. - The company acknowledges the higher investment risks associated with small and mid-sized companies listed on GEM[2]. - There is a risk of high market volatility for securities traded on GEM compared to those on the Main Board[3]. Governance and Compliance - The directors of Perfect Optronics Limited accept full responsibility for the accuracy and completeness of the information in the report[5]. - The report includes compliance with the GEM Listing Rules to provide information regarding the company[5]. - The Company has adopted a code of conduct for securities transactions by Directors, which complies with the required standards set out in the GEM Listing Rules[150]. - The Company is committed to high standards of corporate governance to safeguard shareholder interests[148]. - The management provides monthly updates to the Board in accordance with the Corporate Governance Code[162]. - The Company ensures compliance with GEM Listing Rules and updates directors on regulatory requirements[175]. - All directors are subject to retirement by rotation at least once every three years, ensuring governance accountability[178]. - The Board comprises four executive Directors and five independent non-executive Directors, with several Directors suspended pending legal proceedings[155]. - Independent non-executive directors represent more than one-third of the Board, ensuring compliance with GEM Listing Rules[184]. - The Company has established three Board committees: audit committee, remuneration committee, and nomination committee, ensuring sufficient resources for their duties[192]. - The audit committee was formed on January 20, 2014, consisting of three independent non-executive Directors, with Ms. Hsu Wai Man Helen as chairperson[197]. - The primary duties of the audit committee include overseeing the financial reporting process, internal control, and risk management systems[199]. - The audit committee held four meetings during the year, with attendance details provided for individual members[200]. Financial Performance - The financial summary and consolidated statements are included in the annual report, detailing the company's financial performance[7]. - The Group recorded a revenue of approximately HK$207.0 million for the year ended 31 December 2020, representing a 24% increase compared to HK$166.6 million in 2019[14][30]. - The consolidated loss attributable to equity holders of the Company for the year amounted to approximately HK$16.9 million, a reduction of approximately 50% from the loss of HK$34.1 million in 2019[14][30]. - Sales of thin film transistor liquid crystal display (TFT-LCD) panels and modules amounted to approximately HK$138.5 million, an increase of approximately 3% compared to 2019[15][18]. - Sales of polarisers reached approximately HK$35.8 million, representing an increase of approximately HK$31.1 million compared to 2019[15][18]. - Revenue from the electronic signage business was approximately HK$11.8 million, reflecting a 52% increase compared to 2019[15][18]. - The Group's total revenue for the Year amounted to approximately HK$206,973,000, representing an increase of approximately 24% compared to HK$166,607,000 in 2019[65]. - The gross profit margin improved to 8.3% from a negative margin in 2019, reflecting a significant recovery in profitability[91]. - Cash and cash equivalents increased to approximately HK$76,403,000 from HK$70,308,000 in 2019, marking a 9% increase[100]. - Total liabilities rose significantly to HK$68,816,000 from HK$33,306,000 in 2019, an increase of 107%[96]. - The current ratio decreased to 2.3 times from 5.0 times in 2019, indicating a reduction in liquidity[96]. - The Group had no bank borrowings as of December 31, 2020, consistent with the previous year[104]. Business Strategy and Operations - The Group plans to maintain a flexible business strategy to seize new business opportunities and create greater value for shareholders[24]. - The Group introduced a personal hygiene and disinfectant product line branded "K-clean" in Hong Kong, responding to strong demand during the pandemic[20][21]. - The Group plans to continue promoting K-clean products while expanding its revenue base and product diversity[49]. - The Group has been actively working to secure business with existing customers while developing new reliable customers in new markets[117]. Legal and Regulatory Matters - The Company received a petition from the Securities and Futures Commission (SFC) alleging that certain Directors breached their duties related to the disposal of a subsidiary holding approximately 50.14% of Shinyoptics Corporation[140]. - The legal proceedings regarding the petition are ongoing, and the Director Respondents intend to contest the allegations vigorously[141]. - Trading in the Company's shares on GEM resumed on September 28, 2020, at 9:00 a.m.[145]. Human Resources - As of December 31, 2020, the employee headcount was 66, with total staff costs amounting to approximately HK$23,911,000, an increase of 11% from HK$21,533,000 in 2019[113]. - The management regularly reviews employee remuneration packages to ensure competitiveness with market standards[112]. - Continuous professional development is emphasized for all directors to ensure their contributions remain informed and relevant[172]. Audit and Financial Review - The audit is conducted by PricewaterhouseCoopers, ensuring an independent review of the financial statements[8]. - Net other gains amounted to approximately HK$3,256,000, including a fair value gain from the Group's investment in Mobvoi of approximately HK$2,009,000[73]. - The Group's finance costs for the Year were approximately HK$678,000, down from HK$890,000 in 2019[78]. - General and administrative expenses for the year were approximately HK$26,747,000, relatively stable compared to HK$26,916,000 in 2019[80]. - Research and development expenses decreased to approximately HK$1,394,000 from HK$1,972,000 in 2019, a reduction of about HK$578,000 due to lower employee costs and development expenses[81].

Financial Performance - For the nine months ended September 30, 2020, the group recorded revenue of approximately HKD 101.8 million, a decrease of 27.2% compared to HKD 140.0 million for the same period in 2019[4] - The loss attributable to equity holders for the nine months ended September 30, 2020, was approximately HKD 17.6 million, an improvement from a loss of HKD 25.9 million for the same period in 2019, representing a reduction of 31.8%[4] - The gross profit for the nine months ended September 30, 2020, was HKD 1.83 million, compared to a gross loss of HKD 1.14 million for the same period in 2019[6] - Operating loss for the nine months ended September 30, 2020, was HKD 18.39 million, a significant improvement from an operating loss of HKD 26.06 million for the same period in 2019[6] - The total comprehensive loss for the nine months ended September 30, 2020, was HKD 19.59 million, compared to HKD 27.23 million for the same period in 2019, indicating a reduction of 28.1%[6] - Total revenue for the nine months ended September 30, 2020, was HKD 101,778,000, compared to HKD 139,951,000 for the same period in 2019, indicating a decrease of 27%[30] - The company reported a net loss attributable to equity holders of HKD 17,638,000 for the nine months ended September 30, 2020, an improvement from a loss of HKD 25,883,000 in the same period of 2019[50] - Basic and diluted loss per share for the nine months ended September 30, 2020, was HKD 1.19, compared to HKD 1.74 for the same period in 2019, reflecting a reduction in loss per share[52] Revenue and Sales - Revenue from TFT-LCD panels and modules for the three months ended September 30, 2020, was HKD 46,778,000, a significant increase from HKD 21,684,000 in the same period of 2019, representing a growth of 115%[30] - Sales of TFT-LCD panels and modules amounted to approximately HKD 66,874,000, a decline of about 44% from approximately HKD 120,353,000 in the same period of 2019[58] Expenses and Costs - Research and development expenses for the nine months ended September 30, 2020, were HKD 941,000, down from HKD 1.45 million for the same period in 2019[6] - The company reported a net finance cost of HKD 490,000 for the nine months ended September 30, 2020, compared to HKD 813,000 for the same period in 2019, reflecting a decrease of 39.7%[6] - Financial expenses for the nine months ended September 30, 2020, totaled HKD 513,000, a decrease from HKD 961,000 in the same period of 2019[43] - Distribution and selling expenses increased by about 20% to approximately HKD 8,053,000, primarily due to expenses from a newly established subsidiary in Taiwan and increased promotional costs for new products[67] Investments - The fair value of financial assets measured at fair value through profit or loss was approximately HKD 63,408,000 as of September 30, 2020, up from HKD 57,538,000 as of December 31, 2019[40] - The company recognized other income of HKD 1,253,000 for the nine months ended September 30, 2020, primarily from government subsidies under the "Employment Support Scheme" in Hong Kong[41] - Other net income for the nine months ended September 30, 2020, was approximately HKD 6,993,000, an increase from approximately HKD 3,271,000 in the same period of 2019, primarily due to fair value gains from the investment in Mobvoi[66] - The company’s investment in Mobvoi saw a fair value increase to approximately HKD 63,408,000 as of September 30, 2020, up from HKD 57,538,000 as of December 31, 2019[61] - The company’s equity interest in Mobvoi was diluted from approximately 1.50% to about 1.23% following a recent acquisition, but the investment's fair value increased[61] Corporate Governance and Compliance - The company has adopted a code of conduct for directors regarding securities trading, which aligns with the GEM Listing Rules[83] - The company has confirmed compliance with the adopted trading standards and code of conduct for directors during the reporting period[83] - The company has adopted the principles and code provisions of the corporate governance code as per GEM listing rules, with some deviations noted[92] - The audit committee has been established, consisting of three independent non-executive directors, with a qualified member serving as the chair[94] - The company believes that having the same individual serve as both chairman and CEO provides unified leadership, although it plans to separate these roles in the long term[92] - The company has ensured that the roles of chairman and CEO are clearly delineated despite being held by the same person[92] - The company is committed to maintaining appropriate power distribution within the board and management, ensuring effective checks and balances[92] Legal Proceedings - The company is currently involved in legal proceedings initiated by the Securities and Futures Commission regarding the sale of approximately 50.14% of its subsidiary's shares[89] - As of September 25, 2020, several directors, including the CEO, have suspended their roles pending the outcome of the legal proceedings[90] - The independent non-executive director has been appointed as the acting chairman to replace the suspended CEO[93] - The legal proceedings are ongoing, and the company is actively defending against the claims made by the Securities and Futures Commission[89] Shareholder Information - As of September 30, 2020, the company has issued a total of 923,427,151 shares, with major shareholder Winful Enterprises holding 62.24% of the shares[72][76][77] - Zheng Wei Teh, the major shareholder, holds 923,427,151 shares through Winful Enterprises and has a beneficial ownership of 2,220,000 shares, representing 0.15%[72][78] - The company has not granted any stock options under its stock option plan since its adoption on January 20, 2014[79][80] - There were no arrangements made for directors to benefit from purchasing shares or bonds of the company or any other entity during the nine months ending September 30, 2020[81] - The company did not redeem any of its shares nor did it purchase or sell any shares during the nine months ending September 30, 2020[82] - No other individuals or entities, apart from the disclosed parties, held any interests in the company's shares or related securities that required disclosure as of September 30, 2020[73][78] - A non-competition agreement was established on January 20, 2014, by major shareholder Zheng Wei Teh and Winful Enterprises, preventing them from engaging in competing businesses[86] Future Plans - The company aims to continue its focus on trading, developing, and selling display and optical products, as well as related electronic components[22] - The company plans to expand its revenue base, enhance product diversity, and explore new business opportunities in response to economic uncertainties and challenges posed by the COVID-19 pandemic[62] - The company is currently evaluating the impact of new accounting standards on its performance and financial position[27]

Financial Performance - For the six months ended June 30, 2020, the group recorded revenue of approximately HKD 37.7 million, a decrease of 65.5% compared to HKD 109.3 million for the same period in 2019 [4]. - The loss attributable to equity holders for the six months ended June 30, 2020, was approximately HKD 17.5 million, compared to a loss of HKD 19.7 million for the same period in 2019, representing a 11.2% improvement [4]. - The company reported a comprehensive loss of HKD 19,730,000 for the six months ended June 30, 2020, compared to a loss of HKD 295,000 from non-controlling interests, resulting in a total loss of HKD 20,025,000 [27]. - The group reported a net loss attributable to equity holders of HKD 17,474,000 for the six months ended June 30, 2020, compared to a loss of HKD 19,730,000 in 2019 [101]. - The basic and diluted loss per share for the six months ended June 30, 2020, was HKD 1.18, an improvement from HKD 1.33 in the same period of 2019 [101]. Revenue Breakdown - Revenue from the main product categories included HKD 20,096,000 from TFT-LCD panels and modules, down 79.7% from HKD 98,669,000 in 2019 [87]. - Revenue from polarizers increased significantly from approximately HKD 488,000 in 2019 to HKD 7,873,000 in the current period [126]. - Revenue from electronic advertising boards reached HKD 3,719,000, an increase of approximately HKD 897,000 compared to HKD 2,822,000 in the same period of 2019 [126]. - Major customers contributed HKD 12,075,000 to revenue, significantly up from HKD 3,574,000 in the previous year, with Customer A generating HKD 8,209,000 [90]. Assets and Liabilities - Total assets as of June 30, 2020, amounted to HKD 171.5 million, a decrease of 15.7% from HKD 203.7 million as of December 31, 2019 [12]. - Total liabilities as of June 30, 2020, were HKD 19.8 million, down 40.3% from HKD 33.3 million as of December 31, 2019 [23]. - The company’s total equity decreased to HKD 119,795,000 as of June 30, 2020, from HKD 150,773,000 as of December 31, 2019 [45]. - The company’s accounts receivable and other receivables were HKD 15,386,000 as of June 30, 2020, down from HKD 20,254,000 as of December 31, 2019 [41]. - The total accounts payable as of June 30, 2020, was HKD 4,935,000, a decrease from HKD 14,467,000 as of December 31, 2019 [53]. Cash Flow and Liquidity - Cash used in operating activities was HKD 23,303,000 for the six months ended June 30, 2020, a significant decrease from the net cash generated of HKD 4,398,000 in the same period of 2019 [31]. - The company recorded a decrease in cash and cash equivalents, with a net decrease of HKD 26,179,000, bringing the total to HKD 44,074,000 as of June 30, 2020, down from HKD 70,308,000 at the beginning of the period [31]. - The company’s cash and cash equivalents decreased from HKD 70.3 million as of December 31, 2019, to HKD 44.1 million as of June 30, 2020, a decline of 37.3% [13]. - The company had no bank borrowings as of June 30, 2020, compared to a repayment of HKD 911,000 in the same period of 2019 [117]. Expenses - The cost of sales for the six months ended June 30, 2020, was HKD 39,545,000, a decrease of 67.3% from HKD 120,879,000 in 2019 [93]. - Distribution and selling expenses for the six months ended June 30, 2020, were approximately HKD 5,056,000, an increase of about 22% compared to approximately HKD 4,148,000 for the same period in 2019 [132]. - General and administrative expenses for the six months ended June 30, 2020, were approximately HKD 11,727,000, a decrease of about 13% from approximately HKD 13,428,000 for the same period in 2019 [132]. - R&D expenses for the six months ended June 30, 2020, were approximately HKD 657,000, a decrease of about 32% compared to approximately HKD 961,000 for the same period in 2019 [132]. Corporate Governance - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with GEM listing rules [168]. - The company has confirmed that all directors complied with the trading standards and code of conduct during the reporting period [168]. - The company has complied with all provisions of the corporate governance code during the six months ending June 30, 2020, with the exception of the separation of roles between the Chairman and CEO [176]. - The Chairman and CEO roles are currently held by Mr. Zheng Weide, who is believed to provide unified leadership for effective business decision-making [176]. Shareholder Information - As of June 30, 2020, the company has issued 923,427,151 shares, with Winful Enterprises holding a direct beneficial interest of 62.24% [155][161]. - The company has no share buybacks or purchases of its own shares during the six months ending June 30, 2020 [167]. - There have been no stock options granted under the stock option plan since its adoption on January 20, 2014 [164]. - The company has a non-competition agreement in place with its controlling shareholder, effective from the date of listing [169].

Financial Performance - For the three months ended March 31, 2020, the group recorded revenue of approximately HKD 19.5 million, a decrease of 70.3% compared to HKD 65.6 million for the same period in 2019[3] - The loss attributable to equity holders of the company for the three months ended March 31, 2020, was approximately HKD 7.7 million, compared to a loss of HKD 8.0 million for the same period in 2019, representing a 3.8% improvement[3] - Gross profit for the three months ended March 31, 2020, was HKD 160,000, down 85.5% from HKD 1.1 million in the same period of 2019[5] - Operating loss for the three months ended March 31, 2020, was HKD 8.1 million, compared to an operating loss of HKD 7.7 million for the same period in 2019[5] - The total comprehensive loss for the period attributable to equity holders was HKD 7.9 million, compared to HKD 7.9 million for the same period in 2019, indicating no significant change[8] - Basic and diluted loss per share for the three months ended March 31, 2020, was HKD 0.52, slightly improved from HKD 0.54 in the same period of 2019[8] - The company reported a net loss before tax of HKD 8.2 million for the three months ended March 31, 2020, compared to a loss of HKD 8.0 million for the same period in 2019[5] - The company reported a loss attributable to equity holders of approximately HKD 7,743,000 for the three months ended March 31, 2020, compared to a loss of approximately HKD 7,953,000 for the same period in 2019[32] Revenue Breakdown - The company's revenue for the three months ended March 31, 2020, was approximately HKD 19,498,000, a significant decrease of about 70% from HKD 65,627,000 for the same period in 2019[34] - Sales of TFT-LCD panels and modules were approximately HKD 9,397,000, representing a decline of about 85% compared to approximately HKD 61,829,000 in the same period of 2019[35] - Revenue from polarizers increased to approximately HKD 4,736,000, up from approximately HKD 185,000 in the same period of 2019, marking an increase of about 2,448%[35] - Revenue from electronic advertising boards was approximately HKD 2,326,000, an increase of about 237% from approximately HKD 690,000 in the same period of 2019[35] Expenses and Cost Management - The group incurred finance costs of HKD 190,000 for the three months ended March 31, 2020, down from HKD 355,000 in the same period of 2019, reflecting a 46.5% decrease[5] - The company’s operational expenses and cost of sales reductions helped mitigate the negative impact on its performance during the period[34] - Distribution and selling expenses increased by approximately 12% to HKD 2,300,000, primarily due to the establishment of a new subsidiary in Taiwan[41] - General and administrative expenses decreased by about 13% to HKD 5,653,000, mainly due to a reduction in professional fees[41] - Research and development expenses were approximately HKD 367,000, down about HKD 152,000 from HKD 519,000 in the previous year, attributed to reduced employee costs[41] Dividend and Shareholder Information - The board of directors did not declare an interim dividend for the three months ended March 31, 2020, consistent with the previous year[3] - The company did not redeem any shares during the three months ended March 31, 2020[58] Market Conditions and Future Outlook - The company experienced a significant decline in customer orders due to factory shutdowns caused by COVID-19 prevention measures[34] - The smartphone market in China saw a shipment volume decrease of 36.4% to 49 million units compared to the same period in 2019[35] - The company anticipates continued weakness in sales of electronic components and products in the first half of 2020 due to the ongoing pandemic and international tensions[37] - The company plans to explore opportunities for collaboration with new suppliers and customers across various industries and regions to mitigate the economic impact of the COVID-19 pandemic and international conflicts[37] Corporate Governance and Compliance - All directors confirmed compliance with the company's securities trading code during the three months ended March 31, 2020[59] - There were no business interests held by directors or controlling shareholders that would compete with the company's business during the three months ended March 31, 2020[63] - The company has adopted the corporate governance code as per GEM Listing Rules and has complied with all provisions except for the separation of roles between the Chairman and CEO[67] - The audit committee, consisting of five independent non-executive directors, has reviewed the report and provided feedback[69] Investments and Product Development - The fair value of financial assets measured at fair value through profit or loss related to the investment in Mobvoi Inc. was approximately HKD 57,745,000 as of March 31, 2020[25] - Mobvoi continued to launch new products, including the TicWatch Pro 2020 and TicPods 2 Pro, which are expected to generate significant investment returns for the company[37]

Financial Performance - The Group's revenue for the year amounted to approximately HK$166.6 million, representing a decrease of 34% compared to 2018[19] - Consolidated loss attributable to equity holders of the Company for the year amounted to approximately HK$34.1 million, a decrease in loss of approximately HK$21.7 million compared to 2018[19] - The Group's revenue for the year was approximately HK$166.6 million, a decrease of 34% compared to approximately HK$254.1 million in 2018[23] - The loss attributable to equity holders of the Company was approximately HK$34.1 million, a reduction of approximately HK$21.7 million from a loss of approximately HK$55.8 million in 2018[23] - Total revenue for the year ended December 31, 2019, was approximately HK$166,607,000, a decrease of approximately 34% compared to HK$254,072,000 in 2018[65] - Loss attributable to equity holders of the Company was HK$34,078,000 for the year ended December 31, 2019, a reduction of 39% from HK$55,780,000 in 2018[90] Revenue Segments - The Group's medium-to-large sized display products continued to be a key revenue generator despite a decrease in trades compared to 2018[20] - Sales from the display products segment amounted to approximately HK$164.1 million, representing a decrease of approximately 34% from approximately HK$249.5 million in 2018[39] - Sales of thin film transistor liquid crystal display (TFT-LCD) panels and modules were approximately HK$135.0 million, a drop of approximately 40% from approximately HK$226.2 million in 2018[39] - Revenue from electronic signage products reached approximately HK$7,749,000, significantly up from HK$397,000 in 2018[42] - The optics products segment recorded revenue of approximately HK$2,458,000, a decrease of approximately HK$2,096,000 compared to HK$4,554,000 in 2018[43] Business Development - The new electronic signage business began to contribute notable revenue during the year, with promotional showcases at major expos[20] - The Group is focused on widening its revenue base through proactive development of new business segments[20] - The Group has actively developed new electronic advertising board business, which began contributing significant revenue during the year[23] - A branch was established in Taiwan in late 2019 to expand the electronic signage business[20] - The Group established a subsidiary in Taiwan at the end of 2019 to expand its electronic advertising board business[23] Economic Challenges - The Group faced challenges due to economic uncertainties and Sino-American trade tensions, impacting the mobile phone market[18] - The overall market for mobile phones in China experienced a decline in shipments during the year[18] - Domestic mobile phone shipments in China dropped by 6.2% to 388.6 million units in 2019 compared to 2018, impacting the Group's performance[35] - The economic outlook remains uncertain due to trade frictions and the impact of COVID-19, which may negatively affect sales in the first half of 2020[53] - The Group anticipates a weak sales outlook for electronic components and products in the first half of 2020 due to economic uncertainties and the impact of COVID-19[54] Cost Management - Total cost of sales for the year ended December 31, 2019, amounted to approximately HK$166,902,000, a decrease of approximately 38% compared to HK$268,428,000 in 2018[71] - Gross loss recorded for the year ended December 31, 2019, was approximately HK$295,000, a decrease from HK$14,356,000 in 2018[72] - Distribution and selling expenses for the year ended December 31, 2019, were approximately HK$8,680,000, representing a decrease of approximately 26% from HK$11,761,000 in 2018[74] - Research and development expenses for the year ended December 31, 2019, amounted to approximately HK$1,972,000, a decrease of approximately HK$1,393,000 compared to HK$3,365,000 in 2018[82] Assets and Equity - The Group's total assets decreased by 15% to HK$203,663,000 as of December 31, 2019, down from HK$240,795,000 in 2018[97] - Total equity attributable to equity holders of the Company decreased by 17% to HK$168,947,000 in 2019 from HK$203,965,000 in 2018[97] - Cash and cash equivalents amounted to HK$70,308,000 as of December 31, 2019, a slight decrease of 1% from HK$71,153,000 in 2018[102] - The Group had no bank borrowings as of December 31, 2019, compared to HK$8,979,000 in bank borrowings in 2018[106] Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code throughout the year ended December 31, 2019, except for one deviation[148] - The Board comprises three executive Directors and five independent non-executive Directors, with all attending four regular board meetings held during the year[167] - The Company has arranged appropriate insurance coverage for Directors' and officers' liabilities, reviewed annually[163] - The audit committee consists of five independent non-executive Directors, with Mr. Wong Yik Chung John serving as the chairman, ensuring effective oversight of financial reporting and internal controls[190] - The primary duties of the audit committee include providing an independent view of the Company's financial reporting process and overseeing the audit process[191] Shareholder Matters - The Company did not recommend or declare any dividend for the year ended December 31, 2019[129] - Trading in the Company's shares on GEM has been suspended since 9:00 a.m. on September 26, 2019, until further notice[142] - The Company received a petition from the Securities and Futures Commission alleging breaches of duties by six Directors regarding the disposal of a subsidiary holding approximately 50.14% of Shinyoptics Corporation[141]

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-----------------|---------------------------------------------------|-------|-------|-------|-------|------------------| | | | | | | | | | | | | | | | | | | | | | | Perfect Optronics Limited 圓 美 光 電 有 限 公 司 | | | | | | | | | | | | | 股份代號 : 8311 | (於関曼群島註冊成立之有限公司) | | | | | | | | | | | | | | o for a for our of on of o | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 00 | ...

Financial Performance - For the three months ended March 31, 2019, the group recorded revenue of approximately HKD 65.6 million, a decrease from HKD 68.7 million for the same period in 2018[4] - The loss attributable to equity holders of the company for the three months ended March 31, 2019, was approximately HKD 8.0 million, compared to a loss of HKD 9.7 million for the same period in 2018[4] - The gross profit for the three months ended March 31, 2019, was HKD 1.1 million, compared to HKD 0.6 million for the same period in 2018[6] - Operating loss for the three months ended March 31, 2019, was HKD 7.7 million, an improvement from an operating loss of HKD 9.7 million in the same period of 2018[6] - The total comprehensive loss for the three months ended March 31, 2019, was HKD 7.9 million, compared to HKD 9.4 million for the same period in 2018[8] - Basic and diluted loss per share for the three months ended March 31, 2019, was HKD 0.54, compared to HKD 0.65 for the same period in 2018[12] - The group reported revenue from major products for the three months ended March 31, 2019, totaling HKD 65,627,000, a decrease of 4.1% from HKD 68,722,000 in the same period of 2018[28] - The revenue from TFT-LCD panels and modules was HKD 61,829,000, down from HKD 62,334,000 year-on-year[28] - The group reported a basic loss per share of HKD 0.54 for the three months ended March 31, 2019, compared to HKD 0.65 for the same period in 2018[34] Dividend and Shareholder Information - The board of directors did not declare an interim dividend for the three months ended March 31, 2019, consistent with the previous year[4] - The group did not declare an interim dividend for the three months ended March 31, 2019, consistent with the same period in 2018[32] - Winful Enterprises directly holds 923,427,151 shares, representing 62.24% of the company's issued share capital[53] - The company has not granted any options under its share option scheme since its adoption on January 20, 2014[55] - No shares were repurchased by the company or its subsidiaries during the three months ended March 31, 2019[57] Accounting and Financial Standards - The group’s financial performance has been prepared in accordance with Hong Kong Financial Reporting Standards and GEM Listing Rules[16] - The financial results have been reviewed by the company's audit committee[17] - The group recognized a net impact of a decrease of HKD 968,000 in retained earnings due to changes in accounting policies as of January 1, 2019[24] - The group’s lease liabilities increased by HKD 15,966,000 as of January 1, 2019, reflecting the adoption of new accounting standards[22] - The group’s usage assets increased by HKD 14,943,000 as of January 1, 2019, following the implementation of the new lease accounting standard[20] - The group’s deferred tax assets increased by HKD 55,000 as of January 1, 2019[21] Business Operations and Challenges - The company operates in the trading and processing of display panels, development and sales of optical products, and trading of related electronic components[16] - The company faced significant challenges in the optical products segment, with revenue dropping to approximately HKD 24,000 from HKD 1,303,000 in the same period of 2018[39] - The company has launched new display products, including electronic advertising boards, and received investments of USD 190,000 from Innolux Corporation and Novatek Microelectronics Corp., each holding a 19% stake in the electronic advertising board business[39] - The company expects no major changes in the Chinese mobile display panel market for the remainder of 2019 and plans to diversify its product offerings and expand its customer base[40] Expenses and Cost Management - Distribution and selling expenses decreased by approximately 28% to HKD 2,048,000 from HKD 2,827,000 in the same period of 2018, primarily due to reduced warehousing rental costs[44] - Research and development expenses were approximately HKD 519,000, a decrease of about HKD 465,000 from HKD 984,000 in the same period of 2018[44] Corporate Governance - The company has adopted a code of conduct for directors' securities transactions, confirming compliance during the reporting period[59] - The company has established an audit committee consisting of three independent non-executive directors, ensuring proper oversight[65]