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]

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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------|-------|-------|------------------| | | | | | | | | | | | | | | | | | | | | | | | | Perfect Optronics Limited 圓 美 光 電 有 限 公 司 (Incorporated in the Cayman Islands with limited ...