Financial Performance - The Group's revenue for the year amounted to approximately HK$254.1 million, representing a decrease of 32% compared to 2017[37]. - The consolidated loss attributable to equity holders of the Company for the year was approximately HK$55.8 million, a decrease in loss of approximately HK$42.5 million compared to 2017[37]. - The Group's revenue for the year amounted to approximately HK$254,072,000, representing a 32% year-on-year decrease from HK$371,518,000 in 2017[53]. - Loss attributable to equity holders of the Company for the year was approximately HK$55,780,000, a decrease of approximately HK$42,549,000 compared to a loss of HK$98,329,000 in 2017[53]. - Total revenue for the year ended December 31, 2018, was approximately HK$254,072,000, a decrease of approximately 32% compared to HK$371,518,000 in 2017[86]. - Total cost of sales for the year ended December 31, 2018, amounted to approximately HK$268,428,000, a decrease of approximately 37% from HK$425,311,000 in 2017[87]. - Gross loss for the year ended December 31, 2018, was approximately HK$14,356,000, significantly improved from a gross loss of HK$53,793,000 in 2017[88]. - Loss per share for the year ended December 31, 2018, was HK(3.76) cents, a decrease of approximately 43% from HK(6.63) cents in 2017[112]. - Return on total assets improved to -23.2% for the year ended December 31, 2018, compared to -33.0% in 2017[112]. Market and Operational Challenges - The virtual reality (VR) market did not meet expectations, with growth slowing down following the alleviation of the price war in 2017[39]. - Market concentration to top brands in the mobile phone market has significantly impacted the Group's business[37]. - The Group's performance was affected by slowed GDP growth and Sino-American trade tensions, leading to decreased mobile phone shipments in China[37]. - Domestic mobile phone shipments in China dropped 15.6% to 414.2 million units in 2018, with the number of new model releases decreasing by 27.5%[54]. - A slowdown in the global economy, particularly in the PRC, may adversely affect the Group's business and results of operations due to decreased market demand and selling prices[76][78]. - The Group anticipates a challenging and competitive landscape in the display component markets as the mobile phone market matures[67][69]. Product and Business Development - The Group has expanded trades of medium-to-large sized display products applied on computer notebooks, monitors, and televisions to mitigate business difficulties[37]. - Digital information signage and electronic shelf display products were sought to be introduced during the year as part of performance improvement measures[38]. - The diversification of products has helped stabilize the declining sales despite the overall revenue drop[37]. - The Group has deepened cooperation with partners Innolux Corporation and Novatek Microelectronics Corp. through their investments in its subsidiary, focusing on electronic information signage and electronic shelf display products[46]. - The Group is entering the electronic information signage market, including digital signage and electronic shelf displays, to improve performance and explore new business opportunities[67][69]. - The Group aims to widen its revenue base by exploring new business relationships with suppliers and customers in mainland China and overseas[71][74]. Financial Position and Assets - Cash and cash equivalents decreased by 19% to HK$71,153,000 from HK$88,025,000[120]. - Net current assets decreased by 29% to HK$140,164,000 from HK$197,031,000[120]. - Total assets decreased by 19% to HK$240,795,000 from HK$298,353,000[120]. - Total equity attributable to equity holders decreased by 22% to HK$203,965,000 from HK$260,036,000[120]. - The current ratio decreased from 6.2 times to 4.8 times, a decline of 1.4 times[120]. - The quick ratio decreased from 4.1 times to 2.6 times, a decline of 1.5 times[120]. - As of December 31, 2018, the Group's bank borrowings amounted to approximately HK$8,979,000, with no borrowings in 2017[129]. Corporate Governance - The board of directors consists of three executive directors and three independent non-executive directors, all of whom attended 100% of the regular board meetings held during the year[196]. - The company has complied with all code provisions of the Corporate Governance Code throughout the year, with one noted deviation regarding the roles of the Chairman and Chief Executive Officer[175]. - The company has arranged appropriate insurance coverage for directors' and officers' liabilities, reviewed annually[191]. - The management provides monthly updates to the board to ensure effective governance and oversight[185]. - The company is committed to high standards of corporate governance to safeguard shareholder interests[174]. Employee and Operational Changes - The employee headcount decreased to 72 from 98 in 2017[139]. - As of December 31, 2018, the total number of employees in the Group was 72, a decrease from 98 in 2017, with total employee costs approximately HK$24.49 million, down from HK$25.20 million in 2017[144]. - Total staff costs for the year were approximately HK$24,492,000, a decrease from HK$25,198,000 in 2017[139]. - The Group has expanded its sales support team in the PRC, recruiting additional staff and providing relevant training to enhance customer service[163]. Strategic Decisions and Future Outlook - The Group plans to continue updating its optics technologies to maximize opportunities in the augmented reality and VR markets when they experience robust growth[72][74]. - The Group has introduced new products and suppliers during the review period, performing due diligence on new suppliers as necessary[167]. - The Group has established long-term business relationships with its main suppliers for over ten years and aims to maintain these relationships while exploring new markets[144]. - The Board did not recommend or declare any dividend for the year ended December 31, 2018[152]. - The Group did not have any significant capital commitments or material acquisitions and disposals of subsidiaries during the year ended December 31, 2018[149][156].