Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 122,928 thousand, a slight increase from HKD 122,290 thousand in the same period of 2021, representing a growth of 0.5%[4] - Gross profit for the six months ended June 30, 2022, was HKD 33,247 thousand, compared to HKD 26,545 thousand for the same period in 2021, reflecting a growth of 25.6%[4] - The net profit for the six months ended June 30, 2022, was HKD 5,659 thousand, an increase of 36.0% from HKD 4,163 thousand in the same period of 2021[4] - Basic earnings per share for the six months ended June 30, 2022, was HKD 0.80, compared to HKD 0.59 for the same period in 2021, an increase of 35.6%[7] - The company reported a gross margin of 27.0% for the six months ended June 30, 2022, compared to 21.7% for the same period in 2021, indicating an improvement of 5.3 percentage points[4] - The company reported a total comprehensive income of HKD 5,667 thousand for the six months ended June 30, 2022, compared to HKD 4,163 thousand for the same period in 2021[14] - The group reported a profit attributable to owners of approximately HKD 5.7 million, up from HKD 4.2 million in the same period last year[73] Assets and Liabilities - Total assets as of June 30, 2022, were HKD 256,241 thousand, a decrease from HKD 261,587 thousand as of December 31, 2021, indicating a decline of 2.5%[9] - Total liabilities decreased to HKD 16,232 thousand as of June 30, 2022, from HKD 18,402 thousand as of December 31, 2021, a decline of 11.8%[12] - The company’s non-current assets totaled HKD 130,602 thousand as of June 30, 2022, slightly down from HKD 132,036 thousand as of December 31, 2021, a decrease of 1.1%[9] - Trade receivables decreased to HKD 119,732 thousand as of June 30, 2022, from HKD 129,001 thousand as of December 31, 2021, representing a reduction of 7.5%[9] - The group’s bank borrowings decreased to HKD 20.3 million as of June 30, 2022, from HKD 23.6 million as of December 31, 2021[56] - Trade payables decreased to HKD 15.3 million as of June 30, 2022, from HKD 18.1 million as of December 31, 2021[54] Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2022, was HKD 20,612 thousand, a significant improvement from a cash outflow of HKD 8,282 thousand in the same period of 2021[18] - The net cash used in investing activities was HKD 11,412 thousand for the six months ended June 30, 2022, compared to HKD 3,854 thousand in the same period of 2021[18] - Cash and cash equivalents increased to HKD 24,550 thousand as of June 30, 2022, from HKD 20,483 thousand at the beginning of the period[18] - The company has invested HKD 19.4 million in expanding capacity and upgrading production facilities, with no amount utilized as of June 30, 2022[124] - The company has allocated HKD 10.2 million for acquiring new intellectual property related to bonding wires, fully utilized by June 30, 2022[124] - The company has purchased equipment worth HKD 19.5 million to improve existing R&D facilities, with HKD 8.2 million utilized by June 30, 2022[124] - The company has engaged external consultants for R&D projects, with an expenditure of HKD 5.9 million, of which HKD 3.4 million has been utilized[124] Revenue Breakdown - The revenue from key products included HKD 60,300 thousand from bonding wires and HKD 55,150 thousand from packaging adhesives for the six months ended June 30, 2022[25] - Revenue from customers in mainland China (excluding Hong Kong) was HKD 122,055 thousand for the six months ended June 30, 2022, compared to HKD 120,899 thousand in the same period of 2021[28] - Revenue from bonding wire products decreased by 32.5% to approximately HKD 60.3 million, while revenue from packaging glue products surged by 94.0% to approximately HKD 55.2 million[67] Shareholder Information - As of June 30, 2022, the company has issued share capital of HKD 7,055,000, divided into 705,500,000 shares with a par value of HKD 0.01 each[137] - Mr. Zhou and Professor Zhou each hold 50.60% of the shares through BVI Holdings, which represents 357,000,000 shares[134] - The major shareholders include BVI Holdings with 50.60% and Chow Fung Wai Lan Rita with 50.67% due to spouse rights[134] - The company has a total of 16,050,000 shares held by Mr. Li, representing 2.27% of the issued share capital[134] Corporate Governance - The company has a clear governance structure with significant shareholding by its directors, ensuring alignment of interests[134] - The company has adhered to the corporate governance code as per GEM listing rules, ensuring a clear distinction between the roles of the chairman and the CEO, with no CEO appointed[144] - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited condensed consolidated results for the period and confirmed compliance with applicable accounting standards and GEM listing rules[150] Future Plans and Market Outlook - The group plans to continue focusing on developing advanced semiconductor materials suitable for electric vehicles, mini LED, artificial intelligence, and 5G communication industries[66] - The group plans to launch three new series of adhesive products for the semiconductor and 5G industries, including epoxy insulation adhesive and conductive silver adhesive for LEDs[76] - The global semiconductor equipment sales are expected to grow by approximately 14.7% to USD 115.7 billion in 2022, with further growth anticipated in 2023[75] - The group is actively exploring potential merger and acquisition opportunities to capitalize on the recovery and rapid development of the 5G industry[79]

Financial Performance - Revenue for the three months ended March 31, 2022, was HKD 58,683 thousand, an increase of 6.1% from HKD 54,985 thousand in the same period of 2021[5] - Gross profit for the same period was HKD 15,250 thousand, representing a gross margin of 25.9%, compared to HKD 12,035 thousand in 2021[5] - The net profit for the period was HKD 2,113 thousand, up 24.0% from HKD 1,705 thousand in the previous year[5] - Total comprehensive income for the period was HKD 3,166 thousand, significantly higher than HKD 370 thousand in the same period last year[10] - Basic earnings per share increased to HKD 0.30 from HKD 0.24, reflecting a growth of 25.0%[12] - The company reported a net profit attributable to shareholders of approximately HKD 2.1 million for the period, compared to HKD 1.7 million in the previous year[66] - The profit attributable to the company's owners for the period was approximately HKD 2.1 million, compared to HKD 1.7 million for the same period last year[75] Revenue Breakdown - Revenue from bonding wire decreased by 27.3% to approximately HKD 29.4 million, while revenue from packaging adhesive increased significantly by 117.7% to approximately HKD 26.7 million[70] - The company served over 600 customers, including major LED, camera module, and IC manufacturers located primarily in China[68] Expenses and Costs - Selling and distribution expenses rose to HKD 4,461 thousand, up from HKD 2,611 thousand, indicating increased investment in market expansion[5] - Administrative expenses were HKD 7,465 thousand, slightly higher than HKD 7,026 thousand in the same period last year[5] - Financing costs increased to HKD 409,000 from HKD 294,000 in the previous year, primarily due to interest on discounted notes with recourse[29] - Sales and distribution expenses increased by 70.9% to approximately HKD 4.5 million, driven by increased transportation costs and higher sales commissions[74] Government Support and Taxation - The company received government subsidies amounting to HKD 360,000, slightly up from HKD 355,000 in the previous year[29] - The company’s effective tax rate for the period was 15% due to its qualification as a high-tech enterprise in Shantou, China[34] Market Outlook and Strategy - The company continues to focus on the development and sales of semiconductor packaging materials, with plans for future product innovations[20] - The company plans to continue focusing on the development of advanced semiconductor materials suitable for mini LED, artificial intelligence, and 5G industries[69] - The company expects continued growth in the global semiconductor materials market, projected to increase by 15.9% in 2021, reaching USD 64.3 billion[77] - The demand for semiconductor packaging materials is anticipated to grow steadily, particularly in China, due to effective COVID-19 control and rapid growth in the 5G industry[77] - The company plans to enhance its product development efforts in response to increasing demand from emerging markets such as 5G networks, automotive electrification, and IoT[77] Corporate Governance and Shareholding - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance and transparency[21] - The company has established an audit committee composed of three independent non-executive directors to review and supervise the financial reporting process and internal control procedures[110] - The company has complied with the corporate governance code as stipulated in the GEM Listing Rules during the reporting period[105] - Major shareholders include Mr. Zhou and Professor Zhou, each holding 50.60% of the company through controlled corporations[84] - As of March 31, 2022, the company had issued share capital of HKD 7,055,000, divided into 705,500,000 shares[88] - The company has not granted any share options under the share option scheme since its adoption on May 8, 2018, and there are no unexercised options as of March 31, 2022[102] - The maximum number of shares that can be granted under the share option scheme is capped at 10% of the shares issued at the time of listing, which amounts to 68,000,000 shares, approximately 9.6% of the issued shares as of the report date[101] Dividend and Acquisitions - The board did not recommend any dividend payment for the period, consistent with the previous year[80] - No significant acquisitions or disposals of subsidiaries or joint ventures occurred during the period[81] - There were no purchases, sales, or redemptions of the company's listed securities by the company or any of its subsidiaries during the reporting period[109] - The company has not identified any competing business interests held by its directors or controlling shareholders during the reporting period[103] Other Income - The company recorded other income of approximately HKD 0.4 million, compared to HKD 0.3 million for the same period in 2021[73]

Financial Performance - The group's revenue increased by 45.2% to approximately HKD 249.0 million for the year ended December 31, 2021, compared to approximately HKD 171.6 million in 2020[13] - Gross profit rose by 69.8% to approximately HKD 58.3 million, with a gross margin improvement from 20.0% in 2020 to 23.4% in 2021[13] - Profit attributable to owners of the company was approximately HKD 6.8 million, with EBITDA of approximately HKD 29.3 million, up from HKD 4.5 million in 2020[13] - The group recorded revenue of approximately HKD 249.0 million for the year, an increase of about 45.2% compared to HKD 171.6 million in 2020, driven by strong demand in the semiconductor and LED industries as the Chinese market recovered from COVID-19[22] - The group's gross profit increased by 69.8% to approximately HKD 58.3 million, with a gross margin rising from about 20.0% to approximately 23.4% due to a better product mix and strong sales performance of new products[23] - The group reported a net profit attributable to shareholders of approximately HKD 6.8 million for the year, a significant turnaround from a loss of HKD 14.1 million in 2020[27] Business Strategy and Market Outlook - The company continues to focus on innovation in semiconductor packaging materials to capitalize on anticipated market recovery opportunities[18] - The company plans to seek new business collaborations and explore product agency opportunities related to electronic products and 5G technology[14] - The semiconductor industry is expected to experience rapid growth driven by demand for efficient power electronics and advancements in 5G, AI, cloud computing, and new energy vehicles[14] - The group plans to continue developing advanced semiconductor packaging materials and expand its product portfolio in 2022 to capture opportunities from the anticipated market recovery, particularly in the 5G sector[19] - The group expects the global semiconductor materials market to grow at a rate of 8.8% in 2022, reaching a historical high of USD 601 billion[19] Corporate Governance - The company emphasizes the importance of corporate governance, adhering to the GEM listing rules and corporate governance code as of December 31, 2021[79] - The board consists of seven members, including three executive directors and three independent non-executive directors, ensuring a balance of power[81] - The company has not appointed a CEO, with daily management executed by senior management and overseen by executive directors[79] - The independent non-executive directors have confirmed their independence according to GEM listing rules, ensuring compliance[85] - The company has a clear division of responsibilities between the chairman and the CEO, which is crucial for effective governance[82] - The board retains decision-making authority on major matters, including financial data and significant transactions[88] - The company has a compliance officer to oversee adherence to regulations and governance standards[75] - The company has established a structured approach to risk management and internal controls, vital for navigating economic changes[88] - The board of directors has adopted a diversity policy to enhance efficiency, considering factors such as gender, age, cultural background, and professional experience[92] Research and Development - The company has a strong focus on research and development, with key personnel having advanced degrees and significant industry experience[58][62] - The company has engaged external consultants for R&D projects, with an initial allocation of HKD 5.9 million, and has utilized HKD 3.0 million[49] - The company has invested HKD 19.4 million in acquiring or investing in the bonding wire business or related businesses[49] - The company has spent HKD 19.5 million on improving R&D facilities, with HKD 8.3 million reallocated[49] - The company has acquired bonding wire intellectual property in 2021 to enrich its product categories[49] Shareholder Information - The board proposed a final dividend of HKD 0.190 per share, subject to shareholder approval[13] - The group declared an interim dividend of HKD 0.00295 per share, totaling approximately HKD 2.1 million, and proposed a final dividend of HKD 0.00190 per share, amounting to about HKD 1.3 million[35][36] - As of December 31, 2021, the company's distributable reserves were approximately HKD 169.7 million, down from HKD 180.2 million as of December 31, 2020[145] - The company has adopted a dividend policy prioritizing cash distribution to shareholders, with the payout ratio determined by the board based on financial performance and future prospects[199] Risk Management - The company is exposed to risks related to economic downturns, which may affect downstream customer demand for its products[150] - The company has expanded its supplier base to mitigate risks associated with supplier concentration[151] - The company's performance is significantly influenced by economic, political, and legal developments in China, where most of its assets and operations are located[152] - The semiconductor packaging materials industry is characterized by rapid technological changes, impacting the company's competitiveness[155] Sustainability and Corporate Social Responsibility - The company has implemented green office measures to promote sustainability and reduce energy consumption[157] - The group made charitable donations of approximately HKD 12,000 (RMB 10,000) during the review year, compared to none in 2020[198] Management and Personnel - Professor Zhou, the co-founder and executive director, has over 40 years of experience in the electronic materials industry and was appointed as an executive director on February 21, 2017[56] - Mr. Shi, the general manager, has over 15 years of experience in the electronic materials industry and has been with the group since May 2007[57] - The management team is well-versed in corporate governance and compliance, with members holding various leadership roles in other listed companies[65][67] - The company has a history of appointing experienced individuals to its management team, enhancing operational efficiency[81] Audit and Compliance - The audit committee, consisting of three independent non-executive directors, held four meetings during the year to review financial reporting and internal controls[103] - The remuneration committee convened two meetings to review the remuneration policy and structure for directors and senior management[106] - The nomination committee is responsible for developing nomination policies and advising on changes to the board, comprising two executive directors and three independent non-executive directors[107] - The audit committee reviewed the audited consolidated results for the year and confirmed compliance with applicable accounting standards[104] - The board has reviewed the internal control system and deemed it effective and adequate for the review year[117] - The risk management procedures were reviewed and considered effective and adequate for the review year[120]

Financial Performance - For the three months ended September 30, 2021, the company reported revenue of HKD 61,086,000, representing a 31.0% increase from HKD 46,592,000 in the same period of 2020[6] - The gross profit for the nine months ended September 30, 2021, was HKD 40,569,000, up 82.0% from HKD 22,317,000 in the same period of 2020[6] - The company achieved a profit before tax of HKD 9,444,000 for the nine months ended September 30, 2021, compared to a loss of HKD 5,144,000 in the same period of 2020[6] - The net profit for the three months ended September 30, 2021, was HKD 2,126,000, a turnaround from a loss of HKD 3,666,000 in the same period of 2020[6] - The company reported total comprehensive income of HKD 2,303,000 for the three months ended September 30, 2021, compared to a total comprehensive loss of HKD 2,433,000 in the same period of 2020[9] - Basic earnings per share for the three months ended September 30, 2021, was HKD 0.30, compared to a loss per share of HKD 0.52 in the same period of 2020[9] - Revenue for the nine months ended September 30, 2021, reached HKD 183,376 thousand, up 58.5% from HKD 115,827 thousand in the same period of 2020[22] - For the nine months ended September 30, 2021, the company's revenue was approximately HKD 183.4 million, an increase of 58.3% compared to HKD 115.8 million for the same period in 2020[50] - Gross profit for the same period increased by 81.8% to approximately HKD 40.6 million, with a gross margin of 22.1%, up from 19.3% in the previous year[51] - The company reported a profit attributable to owners of approximately HKD 6.3 million for the nine months ended September 30, 2021, compared to a loss of HKD 6.4 million for the same period in 2020[55] Revenue Sources - Key product revenue for the nine months included HKD 129,130 thousand from bonding wire, a 46.4% increase from HKD 88,176 thousand in 2020[22] - Revenue from packaging materials for the nine months was HKD 47,533 thousand, a 138.0% increase from HKD 19,864 thousand in 2020[22] - Revenue from customers in mainland China (excluding Hong Kong) for the nine months was HKD 181,635 thousand, a 57.7% increase from HKD 115,068 thousand in 2020[25] Costs and Expenses - Total employee costs for the nine months ended September 30, 2021, were HKD 25,732 thousand, an increase from HKD 20,141 thousand in 2020[37] - Sales and distribution expenses increased by 27.9% to approximately HKD 9.6 million, primarily due to increased freight and travel expenses related to higher sales[54] - The sales cost for the nine months ended September 30, 2021, increased by 52.7% to approximately HKD 142.8 million, consistent with revenue growth[51] - The group incurred finance costs of HKD 290 thousand for bank loans in the nine months ended September 30, 2021, down from HKD 353 thousand in 2020[30] Government Support and Grants - The group received government grants totaling HKD 1,243 thousand for the nine months ended September 30, 2021, compared to HKD 3,478 thousand in 2020[29] - Other income and losses for the period were approximately HKD 1.3 million, a decrease from HKD 2.9 million in the previous year, mainly due to the absence of one-time government subsidies[52] Research and Development - The company continues to focus on developing advanced semiconductor materials suitable for the LED, AI, 5G, and automotive industries[47] - The company’s R&D expenses (excluding depreciation and employee costs) were approximately HKD 0.4 million for the nine months ended September 30, 2021, down from HKD 0.6 million in the previous year[51] - The group has launched three new LED application products, including non-conductive epoxy resin, non-conductive silicone, and conductive silver glue, expected to generate revenue in the coming years[60] - The company has developed a new type of copper alloy bonding wire specifically for IC products, which has received positive feedback from customers[60] Future Outlook - The company has not disclosed specific future outlook or guidance in the provided documents[6] - The company anticipates an increase in semiconductor demand due to the rapid development of 5G networks and big data processing systems[60] - The board remains optimistic about future industry developments, particularly in emerging markets such as 5G networks, automotive electrification, industrial automation, IoT, and AI[61] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal control processes[92] - The company has complied with the corporate governance code as stipulated in the GEM Listing Rules during the reporting period[86] - The company has not identified any business or interests that may compete with its operations from its directors or controlling shareholders[85] Shareholder Information - As of September 30, 2021, the company has issued capital of HKD 7,055,000, divided into 705,500,000 shares with a par value of HKD 0.01 each[68] - Major shareholders include Junma Technology Investment Holdings Limited and Chows Investment Group Limited, each holding 357,000,000 shares, representing 50.60% of the issued capital[76] - Chow Kuo Li Jen holds 100% equity in Chows Investment Group Limited, which is considered to have an interest in 357,000,000 shares of the company[2] - As of September 30, 2021, the beneficial ownership of shares includes 510,000 shares held by a director, representing 0.07% of the issued capital[66] Share Option Scheme - The company has not granted any share options under the share option scheme since its adoption on May 8, 2018, and there are no unexercised options as of September 30, 2021[4] - The share option scheme allows for a maximum of 68,000,000 shares to be granted, which is 10% of the shares issued at the time of listing on GEM[82] - The company has not issued any share options since the adoption of the scheme, and no options have lapsed, been exercised, or cancelled during the reporting period[84] Acquisitions and Disposals - The company has not made any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[63] - The company is actively seeking potential acquisition opportunities to enhance its market position[61] Operational Challenges - The production of the innovative mini LED display packaging product was delayed by over six months due to COVID-19 but is now gradually returning to normal operations[60]

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 122,290 thousand, representing an increase of 76.7% compared to HKD 69,235 thousand for the same period in 2020[4] - Gross profit for the six months ended June 30, 2021, was HKD 26,545 thousand, up 100.0% from HKD 13,287 thousand in the same period of 2020[4] - The company reported a profit of HKD 4,163 thousand for the six months ended June 30, 2021, compared to a loss of HKD 2,740 thousand for the same period in 2020[4] - Total revenue for the six months ended June 30, 2021, was HKD 122,290,000, a 76.7% increase from HKD 69,235,000 in the same period of 2020[42] - The company reported a net profit of 4,163 thousand HKD for the six months ended June 30, 2021, compared to a loss of 2,740 thousand HKD in the same period of 2020[66] - The profit attributable to the company's owners for the period was approximately HKD 4.2 million, compared to a loss of approximately HKD 2.7 million in the first half of 2020, with EBITDA of approximately HKD 17.1 million, up from HKD 7.3 million in the previous year[104] Assets and Liabilities - Total assets as of June 30, 2021, were HKD 258,075 thousand, an increase from HKD 251,031 thousand as of December 31, 2020[24] - The net asset value of the company was HKD 237,725 thousand as of June 30, 2021, compared to HKD 232,058 thousand as of December 31, 2020[24] - The company had bank borrowings of HKD 19.69 million as of June 30, 2021, compared to HKD 11.46 million as of December 31, 2020[83] - The group's total bank borrowings and overdrafts amounted to approximately HKD 40.3 million as of June 30, 2021, compared to HKD 32.9 million as of December 31, 2020[111] - As of June 30, 2021, the group's current assets net value was approximately HKD 131.9 million, up from HKD 124.8 million as of December 31, 2020, with a current ratio of approximately 3.0[111] Cash Flow - The company’s cash and cash equivalents increased to HKD 34,650 thousand as of June 30, 2021, from HKD 32,188 thousand as of December 31, 2020[23] - Cash and cash equivalents decreased to HKD 31,591,000 as of June 30, 2021, down from HKD 56,049,000 at the beginning of the year[33] - The net cash used in operating activities was HKD 8,282,000 for the six months ended June 30, 2021, compared to a net cash inflow of HKD 25,033,000 in the same period of 2020[27] - The company reported a net cash inflow from financing activities of HKD 6,926,000 for the period, contrasting with a net cash outflow of HKD 25,143,000 in the previous year[29] Expenses - The company’s administrative expenses for the six months ended June 30, 2021, were HKD 14,710 thousand, compared to HKD 12,927 thousand for the same period in 2020, reflecting an increase of 13.8%[4] - The company’s sales and distribution expenses for the six months ended June 30, 2021, were HKD 5,753 thousand, compared to HKD 4,630 thousand for the same period in 2020, indicating a rise of 24.2%[4] - The company incurred financing costs of HKD 656 thousand for the six months ended June 30, 2021, down from HKD 797 thousand for the same period in 2020[4] - The total financing costs for the six months ended June 30, 2021, were 656 thousand HKD, a decrease of 17.7% from 797 thousand HKD in the same period of 2020[48] Revenue Sources - Revenue from wire bonding increased to HKD 89,318,000 for the six months ended June 30, 2021, up from HKD 53,592,000 in the same period of 2020, representing a growth of 66.7%[42] - Revenue from packaging adhesive also saw significant growth, reaching HKD 28,427,000, compared to HKD 10,873,000 in the previous year, an increase of 161.5%[42] - Revenue from customers in mainland China reached HKD 120,899,000 for the six months ended June 30, 2021, compared to HKD 68,681,000 in the same period of 2020, reflecting a growth of 76.1%[45] Dividends and Investments - The company plans to declare an interim dividend of 0.00295 HKD per share for the year ending December 31, 2021, totaling approximately 2.1 million HKD[67] - The board announced an interim dividend of HKD 0.00295 per share for the year ending December 31, 2021, compared to no dividend in the first half of 2020[122] - The company has invested HKD 19.4 million in expanding production capacity and upgrading production facilities since July 30, 2021[173] - The company plans to invest HKD 41.9 million in new production machinery and equipment, with a portion already utilized[188] Research and Development - The company plans to continue focusing on developing advanced semiconductor materials suitable for the LED, AI, and 5G industries[97] - The company has engaged external consultants from Anhui University and National Cheng Kung University to assist in R&D projects[137][139] - Research and development resources include an allocation of HKD 10.2 million for acquiring new intellectual property[200] Market Conditions - The company has faced a decline in semiconductor packaging material demand due to the COVID-19 pandemic, impacting sales orders and production in 2020[148] - The ongoing US-China trade tensions have created uncertainty, negatively affecting the industry and export businesses[148] - The group expects global semiconductor equipment sales to increase by approximately 34% to reach USD 95.3 billion in 2021, with a forecast of reaching USD 100 billion in 2022[106] Operational Developments - The company continues to procure machinery to address production bottlenecks in response to customer order demands since 2020[133] - The company has relocated its headquarters to Hong Kong Science Park to enhance operational capabilities[146] - The company is actively seeking potential acquisition opportunities to enhance its growth prospects as the economy recovers from COVID-19[107] - The group has developed a new type of copper alloy bonding wire specifically for IC products, which has been recognized by customers and is expected to generate revenue in the coming years[107]

Financial Performance - The group reported revenue of HKD 54,985,000 for the three months ended March 31, 2021, compared to HKD 35,681,000 for the same period in 2020, representing a year-over-year increase of 54%[5] - Gross profit for the first quarter of 2021 was HKD 12,035,000, up from HKD 6,871,000 in the same quarter of 2020, indicating a gross margin improvement[5] - The net profit for the period was HKD 1,705,000, compared to a loss of HKD 500,000 in the first quarter of 2020, marking a significant turnaround[5] - Basic earnings per share for the first quarter of 2021 were HKD 0.24, compared to a loss per share of HKD 0.07 in the same period last year[8] - Revenue for the three months ended March 31, 2021, was HKD 54,985,000, representing a 54.1% increase from HKD 35,681,000 in the same period of 2020[23] - Gross profit for the same period increased by 75.2%, driven by strong demand in the semiconductor and LED industries[49] - The group recorded a profit attributable to owners of approximately HKD 1.7 million, compared to a loss of HKD 0.5 million in the same period last year[58] Revenue Sources - Key product revenue included HKD 40,419,000 from bonding wires, up from HKD 28,963,000, and HKD 12,287,000 from packaging adhesives, up from HKD 4,891,000[23] - Revenue from customers in mainland China was HKD 54,395,000, a significant increase from HKD 35,427,000 in the previous year[24] - Revenue from bonding wire products increased by 39.6% to approximately HKD 40.4 million, while revenue from packaging adhesive products surged by 151.2% to approximately HKD 12.3 million[53] Expenses and Costs - The group incurred administrative expenses of HKD 7,026,000, an increase from HKD 5,665,000 in the prior year, reflecting higher operational costs[5] - Total employee costs amounted to HKD 7,984,000, an increase from HKD 7,159,000 in the previous year[35] - The company experienced a loss of HKD 22,000 from the sale of property and equipment during the period[27] Credit Management - The group recognized a credit for expected credit loss of HKD 312,000, compared to a charge of HKD 2,611,000 in the same period last year, showing improved credit management[5] Corporate Governance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and have not been audited, but were reviewed by the audit committee[19] - The board of directors consists of experienced individuals, including three independent non-executive directors, ensuring a balance of power and authority[91] - The company has complied with the corporate governance code as stipulated in the GEM Listing Rules during the reporting period[91] - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal control processes[96] - The audit committee reviewed the unaudited condensed consolidated results for the period and confirmed compliance with applicable accounting standards and GEM listing rules[96] - The company regularly reviews its corporate governance practices to ensure compliance with the code[92] Future Outlook and Strategy - The global semiconductor equipment sales are expected to recover and reach a new record of USD 66.8 billion in 2021, which may increase the demand for semiconductor packaging adhesives[59] - The group plans to launch three new products for LED applications, which are non-conductive epoxy adhesive, non-conductive silicone adhesive, and conductive silver adhesive, targeting the semiconductor and 5G industries[59] - The group aims to enhance its R&D capabilities to develop advanced products for emerging markets such as 5G networks, automotive electrification, industrial automation, IoT, and AI[62] - The group will focus on expanding its customer base and business network to achieve sustainable business growth[62] Shareholder Information - Chows Investment Group Limited holds 100% equity in Junma Technology Investment Holdings Limited, which in turn holds 50.60% equity in the company[75] - As of March 31, 2021, the company has issued share capital of HKD 7,055,000, divided into 705,500,000 shares with a par value of HKD 0.01 each[81] - Major shareholders include Chows Investment Group Limited with 357,000,000 shares (50.60%) and Ma Yamu with 152,490,000 shares (21.61%) as of March 31, 2021[79] - The company has not granted any stock options under its stock option plan since its adoption on May 8, 2018[87] - The maximum number of shares that can be granted under the stock option plan is capped at 10% of the shares issued at the time of listing, which amounts to 68,000,000 shares[86] - No stock options have been exercised or cancelled during the reporting period, and there are no unexercised stock options as of March 31, 2021[87] Compliance and Transactions - No dividends were recommended for the period, consistent with the previous year[63] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period[64] - No purchases, sales, or redemptions of the company's listed securities were made by the company or its subsidiaries during the period[94] - The company has adopted a code of conduct for directors regarding securities transactions, in compliance with GEM listing rules[93] - The compliance advisor, Tian Tai Financial Services Limited, has no interests in the group as of March 31, 2021[89] - The company does not have any business interests that compete with its operations, nor are there any known conflicts of interest[88]

Financial Performance - The company's revenue for the year ended December 31, 2020, decreased by 19.5% to approximately HKD 171.6 million from approximately HKD 213.0 million in 2019[8] - Gross profit for the year decreased by 17.6% to approximately HKD 34.4 million, with a gross margin slightly increasing from 19.6% in 2019 to 20.0% in 2020[8] - The company reported a loss of approximately HKD 14.1 million for the year[8] - Sales revenue and gross profit for the first half of 2020 decreased by 32.4% and 33.3% respectively compared to the same period in 2019[13] - Revenue from bonding wire products decreased by 25.2% to approximately HKD 127.8 million, primarily due to delayed purchases caused by COVID-19[17] - Revenue from packaging adhesive products increased by 22.5% to approximately HKD 33.2 million, compared to HKD 27.1 million in 2019[17] - The group recorded a loss attributable to owners of approximately HKD 14.1 million for the year, compared to a loss of HKD 0.7 million in 2019[25] - The company's available distributable reserves as of December 31, 2020, were approximately HKD 180.2 million, a decrease from HKD 189.8 million as of December 31, 2019[142] - The board has not recommended the payment of a final dividend for the review year, consistent with the previous year where no dividend was declared[131] Market and Business Strategy - The company continues to focus on innovation in advanced semiconductor packaging materials to seize market recovery opportunities[8] - The company aims to develop new LED display products, expected to significantly contribute to revenue in the first half of 2021[9] - The company plans to seek new business partners and explore product agency opportunities related to electronic products and 5G technology[9] - The semiconductor industry is expected to recover rapidly, driven by demand for efficient power electronics and developments in 5G, AI, cloud computing, and new energy vehicles[9] - The group expects the global semiconductor materials market to grow by 5% in 2021, reaching a historical high of USD 56.5 billion[15] - The group plans to promote its innovative liquid molding epoxy for small LEDs and develop new products for the semiconductor and 5G industries in 2021[15] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in sales from this region by 2022[66] - A strategic acquisition of a local competitor is anticipated to enhance production capacity by 40% and reduce operational costs by 15%[66] Research and Development - Investment in R&D included HKD 19.5 million for improving R&D facilities, of which HKD 8.2 million was utilized by December 31, 2020[48] - The company hired external consultants for R&D projects, spending HKD 5.9 million, with HKD 2.1 million utilized by December 31, 2020[48] - The R&D department has successfully developed a new epoxy resin that is expected to improve product performance by 20%[66] - The company has implemented a new digital management system aimed at increasing production efficiency by 25%[68] Corporate Governance - The board consists of seven members, including three executive directors and three independent non-executive directors, ensuring a balance of power and experience[77] - The independent non-executive directors have confirmed their independence according to GEM listing rules, ensuring compliance and governance standards[80] - The company adopted a board diversity policy in May 2018, focusing on various factors such as gender, age, and professional experience to enhance board efficiency[88] - The company emphasizes good corporate governance practices to enhance accountability and transparency for shareholders[76] - The company is committed to improving its corporate governance practices to align with legal requirements and recent developments[76] - The audit committee held six meetings during the review year to review the group's quarterly, interim, and annual performance, financial reporting, and compliance procedures[97] - The company has established a clear division of responsibilities between the chairman and the CEO roles to enhance operational efficiency[78] Risk Management - The company maintained a risk management and internal control system designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatements or losses[111] - The risk management procedures have been reviewed and deemed effective, with quarterly risk identification and analysis conducted to mitigate potential risks[114] - The company faces risks related to reliance on a few suppliers, as the largest and top five suppliers accounted for 30.8% and 73.3% of total procurement, respectively[148] - The company has appointed senior management to closely monitor economic, political, and legal developments in China, where most of its assets and operations are located[149] Shareholder Information - The company has issued a total of 705,500,000 shares with a nominal value of HKD 0.01 per share as of December 31, 2020[180] - Mr. Zhou and Professor Zhou each hold 357,000,000 shares, representing 50.60% of the company's issued share capital[180] - Mr. Li holds 16,050,000 shares, accounting for 2.27% of the total issued share capital[180] - Chow Fung Wai Lan Rita holds 357,510,000 shares, accounting for 50.67% of the company's issued share capital[190] - Ma Ya Mu holds 152,490,000 shares, which is 21.61% of the company's issued share capital[190] Compliance and Legal Matters - The company has maintained compliance with relevant laws and regulations, with no significant violations reported during the review period[155] - The compliance advisor, Tian Tai Financial Services Limited, reported no interests in the company as of December 31, 2020[198] - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM listing rules[107]

Financial Performance - For the three months ended September 30, 2020, the company reported revenue of HKD 46,592 thousand, a decrease of 21.5% compared to HKD 51,457 thousand for the same period in 2019[6]. - The gross profit for the nine months ended September 30, 2020, was HKD 22,317 thousand, down 25.8% from HKD 30,026 thousand in the same period of 2019[6]. - The company incurred a loss before tax of HKD 3,186 thousand for the three months ended September 30, 2020, compared to a profit of HKD 1,579 thousand in the same period of 2019[6]. - The total comprehensive income for the nine months ended September 30, 2020, was a loss of HKD 2,433 thousand, compared to a loss of HKD 6,580 thousand for the same period in 2019[20]. - The company reported a basic loss per share of HKD 0.52 for the three months ended September 30, 2020, compared to earnings of HKD 0.12 per share in the same period of 2019[21]. - Total revenue for the nine months ended September 30, 2020, was HKD 115,827,000, a decrease of 24.7% compared to HKD 153,836,000 for the same period in 2019[33]. - The company reported a loss attributable to owners of approximately HKD 6.4 million for the nine months ended September 30, 2020, compared to a profit of approximately HKD 1.0 million in the same period of 2019[98]. Expenses and Costs - The sales and distribution expenses for the nine months ended September 30, 2020, were HKD 7,484 thousand, slightly down from HKD 7,746 thousand in the same period of 2019[6]. - The administrative expenses increased to HKD 20,326 thousand for the nine months ended September 30, 2020, compared to HKD 18,492 thousand in the same period of 2019[6]. - Total employee costs for the nine months ended September 30, 2020, were HKD 20,141,000, a decrease from HKD 24,735,000 in the same period of 2019[68]. - Interest expenses for bank loans decreased to HKD 353,000 for the nine months ended September 30, 2020, compared to HKD 692,000 in the same period of 2019[44]. - The total sales cost decreased by 24.5% to approximately HKD 93.5 million, consistent with the revenue decline[92]. - The company has implemented various cost control measures to mitigate the impact of COVID-19 and the macroeconomic slowdown, focusing on reducing administrative expenses[89]. Revenue Sources - Revenue from key products included HKD 88,176,000 from lead frames and HKD 19,864,000 from packaging adhesives for the nine months ended September 30, 2020[33]. - Revenue from customers in mainland China was HKD 115,068,000 for the nine months ended September 30, 2020, down 24.6% from HKD 152,539,000 in the same period of 2019[38]. - The revenue from bonding wire products decreased by 27.7% to approximately HKD 88.2 million, while the revenue from packaging adhesive products increased by 5.7% to approximately HKD 19.9 million[91]. Equity and Share Capital - The total equity as of September 30, 2020, was HKD 228,994 thousand, a decrease from HKD 237,128 thousand as of January 1, 2019[24]. - As of September 30, 2020, the company’s issued share capital is HKD 7,055,000, divided into 705,500,000 shares with a par value of HKD 0.01 each[113]. - Major shareholders include Junma Technology Investment Holdings Limited, holding 357,000,000 shares, representing 50.60% of the issued share capital[123]. - Chow Fung Wai Lan Rita holds 357,510,000 shares, representing 50.67% of the issued share capital, as a spouse interest[123]. - Ma Ya Mu holds 152,490,000 shares, representing 21.61% of the issued share capital, as a beneficial owner[123]. Government Grants and Support - The company received government grants totaling HKD 3,478,000 for the nine months ended September 30, 2020, compared to HKD 1,118,000 in the same period of 2019[41]. Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal control processes[149]. - The company has complied with the corporate governance code as outlined in the GEM Listing Rules during the reporting period[140]. - The company will continue to review its corporate governance practices to ensure compliance with the corporate governance code[141]. Market Outlook and Strategy - The company remains optimistic about future developments in the industry despite ongoing global economic pressures, anticipating a gradual recovery in semiconductor demand[101]. - The company is taking measures to enhance its market competitiveness in anticipation of a market recovery driven by the development of 5G networks and big data processing trends[101]. - The company continues to focus on innovation in advanced semiconductor packaging materials to seize opportunities from the expected market recovery[89]. - The anticipated demand for advanced semiconductors is expected to grow strongly due to China's push for 5G network deployment, prompting the company to enhance its R&D capabilities to capture market opportunities[103]. - The company has made progress with its innovative products, specifically the liquid epoxy molding compound for small-pitch LED, which has begun mass production for several well-known RGB LED packaging companies, expected to significantly contribute to revenue[103]. - The company has launched three new die attach adhesive products for LED applications, which will be extended to other semiconductor manufacturers and the 5G industry after adjusting certain formulations[103]. - The company is actively developing new household LED packaging materials that are more cost-effective, which is expected to become another growth driver in the future[103]. Other Information - The company has not granted any stock options under its stock option plan since its adoption on May 8, 2018, and there are no unexercised stock options as of September 30, 2020[135]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the period[146]. - No significant acquisitions or disposals of subsidiaries, associates, or joint ventures occurred during the period[104]. - The company has not identified any business or interests that may compete with its operations during the reporting period[136]. - The stock option plan allows for a maximum of 68,000,000 shares to be granted, which is 10% of the shares issued at the time of listing[131]. - The company’s board of directors consists of experienced individuals, ensuring a balance of power and authority within the management structure[140].

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 69,235, a decrease of 32.4% compared to HKD 102,379 for the same period in 2019[7] - Gross profit for the six months ended June 30, 2020, was HKD 13,287, down 33.5% from HKD 19,918 in the same period of 2019[7] - The company reported a loss before tax of HKD 1,958 for the six months ended June 30, 2020, compared to a profit of HKD 1,236 for the same period in 2019[7] - The company reported a total comprehensive income of HKD (404,000) for the six months ended June 30, 2020, compared to HKD 10,405,000 in the same period of 2019[20] - The company reported a loss of HKD 2,740,000 for the six months ended June 30, 2020, compared to a profit of HKD 183,000 in the same period of 2019[49] - The company reported a loss attributable to owners of approximately HKD 2.7 million, compared to a profit of HKD 0.2 million in the previous year[80] Assets and Liabilities - Total assets as of June 30, 2020, were HKD 243,937, a decrease from HKD 251,785 as of December 31, 2019[16] - The company's total equity as of June 30, 2020, was HKD 224,923, down from HKD 231,427 as of December 31, 2019[18] - The company’s total liabilities decreased to HKD 19,014 as of June 30, 2020, from HKD 20,358 as of December 31, 2019[18] - Trade receivables as of June 30, 2020, were HKD 41.7 million, down from HKD 64.8 million as of December 31, 2019[52] - Total bank borrowings as of June 30, 2020, were HKD 26.3 million, a decrease from HKD 50.4 million as of December 31, 2019[62] Cash Flow and Financing - The company reported a net cash inflow from operating activities of HKD 25,033,000 for the six months ended June 30, 2020, compared to a net outflow of HKD 22,019,000 in the same period of 2019[23] - The company’s financing activities resulted in a net cash outflow of HKD 25,143,000 for the six months ended June 30, 2020, compared to a net inflow of HKD 17,165,000 in the same period of 2019[23] - Cash and cash equivalents increased to HKD 56,049,000 as of June 30, 2020, compared to HKD 26,329,000 at the end of the same period in 2019[23] Revenue Breakdown - Revenue from key products showed a significant decline, with wire bonding revenue at HKD 53,592,000 for the six months ended June 30, 2020, down 34.1% from HKD 81,257,000 in 2019[30] - Revenue from customers in mainland China (excluding Hong Kong) was HKD 68,681,000 for the six months ended June 30, 2020, down 32.2% from HKD 101,251,000 in 2019[33] - Revenue from packaging glue products decreased by approximately 11.4% to about HKD 10.9 million, down from HKD 12.3 million in the first half of 2019[74] - Revenue from bonding wire products decreased by approximately 34.0% to about HKD 53.6 million, down from HKD 81.3 million in the first half of 2019[74] Cost Management - The total employee costs for the six months ended June 30, 2020, were HKD 13,543,000, a decrease of 18.5% from HKD 16,571,000 in the same period last year[43] - Sales cost decreased by 32.2% to approximately HKD 55.9 million, with gross profit down 33.3% to about HKD 13.3 million, resulting in a gross margin of approximately 19.2%[76] - Selling and distribution expenses were approximately HKD 4.6 million, a decrease from HKD 5.9 million in the same period last year[78] Strategic Focus and Future Outlook - The company continues to focus on the development and sales of semiconductor packaging materials, with no significant changes in accounting policies affecting the financial statements[26] - The company expects semiconductor demand to recover quickly as the impact of COVID-19 diminishes, driven by 5G, AI, and automotive sectors[82] - The company plans to continue developing advanced semiconductor packaging materials and expand its product portfolio to capture market recovery opportunities[83] - The company has launched a new liquid epoxy molding compound for small-pitch LED applications, which is expected to significantly contribute to revenue[83] Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to oversee the financial reporting process and internal control procedures[154] - The company has complied with the corporate governance code as stipulated in the GEM Listing Rules during the reporting period[149] - The company does not have any business interests that compete or may compete with the group’s business among its directors and controlling shareholders[145] Share Capital and Dividends - The company had a total issued share capital of HKD 7,055,000, divided into 705,500,000 shares with a par value of HKD 0.01 each[139] - The board does not recommend the payment of an interim dividend for the period[97] - The company has not granted any share options under the share option scheme since its adoption on May 8, 2018, and there are no unexercised options as of June 30, 2020[144]

Financial Performance - The group's revenue for the three months ended March 31, 2020, was HKD 35,681,000, a decrease of 22.2% compared to HKD 45,924,000 in the same period of 2019[6] - Gross profit for the same period was HKD 6,871,000, down 22.1% from HKD 8,810,000 year-on-year[6] - The group reported a loss of HKD 500,000 for the period, compared to a profit of HKD 603,000 in the previous year, representing a significant decline[6] - The total comprehensive income for the period was a loss of HKD 4,486,000, compared to a gain of HKD 4,975,000 in the same period last year[10] - The basic loss per share was HKD 0.07, compared to a profit of HKD 0.09 per share in the previous year[10] - The company's revenue for the period was approximately HKD 35.7 million, a decrease of about 22.3% compared to HKD 45.9 million for the same period in 2019[43] - The company's gross profit decreased by approximately 22.0% to about HKD 6.9 million, compared to HKD 8.8 million for the same period in 2019, with a gross margin of approximately 19.3%[46] Revenue Breakdown - Revenue for the three months ended March 31, 2020, was HKD 35,681,000, a decrease of 22.3% from HKD 45,924,000 in the same period of 2019[22] - Revenue from key products: Bonding wire revenue was HKD 28,963,000, down 24.0% from HKD 38,320,000 in 2019; Packaging adhesive revenue was HKD 4,891,000, down 6.8% from HKD 5,249,000[22] - Revenue from customers in Mainland China was HKD 35,427,000, a decrease of 22.2% from HKD 45,556,000 in 2019[23] - Revenue from bonding wire products decreased by approximately 24.4% to about HKD 29.0 million, down from HKD 38.3 million in the same period of 2019[43] Other Income and Expenses - Other income and gains increased to HKD 2,259,000 from HKD 781,000, showing a growth of 189.5%[6] - Other income for the three months ended March 31, 2020, was HKD 2,259,000, significantly up from HKD 781,000 in 2019[26] - The company's total employee costs for the period were HKD 6,851,000, down from HKD 7,875,000 in 2019[31] - The group's administrative expenses rose to HKD 5,665,000, up 3.1% from HKD 5,493,000 in the previous year[6] - The financing costs decreased to HKD 290,000 from HKD 410,000, a reduction of 29.3%[6] - Depreciation of property, plant, and equipment was HKD 1,981,000, slightly down from HKD 2,064,000 in 2019[36] - Other income and gains recorded were approximately HKD 2.3 million, an increase from HKD 0.8 million in the same period of 2019, mainly due to a one-time government subsidy of about HKD 2.0 million[47] Future Outlook and Strategy - The company continues to focus on the development and sales of semiconductor packaging materials, with plans for future market expansion and product innovation[15] - The company expects global semiconductor equipment sales to recover in 2020 and reach a historic high of USD 66.8 billion in 2021, driven by the rapidly growing 5G industry[50] - The company successfully trialed a new liquid-forming epoxy for small LEDs, which is expected to make a significant contribution to revenue[51] - Three new adhesive products for LED applications have been launched, which are expected to drive future growth for the company[52] - The company is implementing cost control measures to enhance economic efficiency and maintain long-term business growth amid macroeconomic uncertainties[55] Shareholder Information - The company has issued share capital of HKD 7,055,000, divided into 705,500,000 shares with a par value of HKD 0.01 per share as of March 31, 2020[62] - Chows Investment Group Limited holds 100% equity in Chows Technology Investment Holdings Limited, which in turn holds 50.60% equity in the company[65] - Major shareholders include Chows Technology Investment Holdings Limited with 357,000,000 shares, representing 50.60% of the issued share capital[69] - Chow Fung Wai Lan Rita holds 357,510,000 shares, accounting for 50.67% of the issued share capital, as a spouse interest[69] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to review and supervise the financial reporting process and internal control procedures[89] - The company has complied with the corporate governance code as per GEM listing rules during the reporting period[83] - The compliance advisor, Tian Tai Financial Services Limited, has no interests in the group as of March 31, 2020[79] Dividends and Investments - The company did not recommend any dividend payment for the period[56] - No significant investments or acquisitions were made during the period[58] - No purchases, sales, or redemptions of the company's listed securities were made by the company or its subsidiaries during the period[86] Stock Options - The company has not granted any stock options under the stock option plan since its adoption on May 8, 2018[77] - The maximum number of shares that can be granted under the stock option plan is capped at 10% of the shares issued at the time of listing, which is 68,000,000 shares, approximately 9.6% of the issued shares as of the report date[76] - No stock options have been exercised, lapsed, or cancelled during the year, and there are no unexercised stock options as of March 31, 2020[77] Business Interests - The company does not have any business interests that compete or may compete with its operations as of the reporting period[78] - The company is currently evaluating the impact of new accounting standards on its performance and financial position[20] - The company is controlled by Mr. Chow and Professor Chow, who hold 40% and 60% of Chows Investment Group Limited, respectively[63]