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]

Financial Performance - For the fiscal year ended December 31, 2019, the group's revenue increased by 15.5% to approximately HKD 213.0 million from approximately HKD 184.4 million in 2018[10] - The gross profit rose by 2.1% to approximately HKD 41.7 million, while the group recorded a loss of HKD 684,000 for the year[10] - The company's revenue for the year was approximately HKD 213.0 million, an increase of 15.5% from HKD 184.4 million in the previous year[19] - Revenue from bonding wire products increased by 19.8% to approximately HKD 170.9 million, up from HKD 142.6 million in the previous year[19] - The gross profit slightly increased to approximately HKD 41.7 million, with a gross margin of 19.6%, down from 22.1% in the previous year[20] - The company recorded a loss attributable to owners of approximately HKD 684,000, compared to a profit of HKD 350,000 in the previous year[24] Business Strategy and Development - The significant growth in the gold and silver alloy bonding wire business contributed to the strong performance of the bonding wire segment[10] - The group plans to focus on developing new products, particularly small LED packaging, which is expected to make a significant contribution in mid-2020[11] - The group aims to enhance its R&D capabilities and develop products for the AI and 5G industries to capitalize on emerging market trends[11] - The company plans to promote liquid-forming epoxy for small LEDs, expecting significant contributions to revenue starting in Q2 2020[16] - The company is developing new products for the 5G industry, anticipating it to be another growth driver[16] - The company is expanding its market presence in regions E and F, aiming for a market share increase of G% by the end of the fiscal year[61] Market Conditions and Risks - The semiconductor packaging materials market is expected to see significant growth driven by the Chinese government's support for 5G deployment[11] - The group’s financial performance and outlook are significantly influenced by the economic and market conditions affecting the downstream industries it serves, particularly in the LED and IC sectors[145] - The company faces risks if it fails to accurately predict future customer technology or product needs, potentially leading to substantial investments in new production machinery that may not yield significant returns[148] - The group reported that sales to the top five customers accounted for approximately 48.8% of total sales, with the largest customer contributing about 22.4%[141] - The company relies on a limited number of suppliers for raw materials, with the top supplier accounting for 36.0% of total procurement, highlighting a concentration risk[146] Corporate Governance - The board of directors consists of seven members, including three executive directors and three independent non-executive directors, ensuring a balance of power and experience[75] - The company has adhered to the GEM Listing Rules and has implemented corporate governance practices to enhance accountability and transparency[74] - The independent non-executive directors have confirmed their independence according to GEM Listing Rules, ensuring unbiased oversight[78] - The company has adopted a board diversity policy to enhance efficiency by considering various factors such as gender, age, and professional experience[84] - The board retains decision-making authority on major matters, including financial data and significant transactions, ensuring proper governance[81] Sustainability and Social Responsibility - The company is committed to environmental sustainability, adhering to environmental laws and implementing effective resource utilization and waste reduction measures[152] - The company has implemented green office measures to reduce energy consumption, such as encouraging double-sided printing and turning off unnecessary lighting and equipment[152] - The company has adopted a stock option plan as an incentive for eligible employees, reflecting its commitment to employee engagement and retention[163] Financial Management - The total investment for expanding and upgrading production facilities reached HKD 13.2 million, with an average production capacity increase from about 40% to over 80%[28] - The current ratio as of December 31, 2019, was approximately 2.9, down from 6.0 in the previous year[29] - The company’s total bank financing amounted to HKD 114.5 million, an increase from HKD 80 million in the previous year[31] - The company has a distributable reserve of approximately HKD 189.8 million as of December 31, 2019, which includes a share premium of about HKD 128.1 million[140] Shareholder Information - The company did not recommend a final dividend for the year ended December 31, 2019, consistent with the previous year[38] - The board does not recommend the payment of a final dividend for the reviewed year, consistent with the previous year where no dividend was declared[129] - The major shareholder BVI Holdings owns 357,000,000 shares, also accounting for 50.60% of the issued share capital[182] - The company is controlled by BVI Chows, which holds 100% interest in BVI Holdings, thereby consolidating control over the company[180] Audit and Compliance - The consolidated financial statements for the year ended December 31, 2019, were audited by Deloitte Touche Tohmatsu[195] - The total fees paid/owed to Deloitte for audit and non-audit services amounted to HKD 2,600,000 in 2019, compared to HKD 1,248,000 in 2018, representing a 108.5% increase[106] - The board of directors is responsible for ensuring effective risk management and internal controls, which are reviewed at least annually[109] - The company has maintained effective internal control measures to ensure compliance with corporate governance codes and applicable laws[110]

Financial Performance - For the three months ended September 30, 2019, the company reported revenue of HKD 51,457 thousand, a decrease of 9.1% compared to HKD 57,012 thousand for the same period in 2018[6]. - The gross profit for the nine months ended September 30, 2019, was HKD 30,026 thousand, slightly down from HKD 31,257 thousand in the same period of 2018, representing a decrease of 3.9%[6]. - The company recorded a net profit of HKD 862 thousand for the three months ended September 30, 2019, compared to a profit of HKD 3,273 thousand in the same period of 2018, indicating a decline of 73.6%[9]. - Total comprehensive expenses for the nine months ended September 30, 2019, amounted to HKD 6,580 thousand, compared to HKD 11,266 thousand in the same period of 2018, reflecting a decrease of 41.5%[19]. - The company reported a total equity of HKD 230,548 thousand as of September 30, 2019, down from HKD 235,899 thousand as of September 30, 2018, reflecting a decrease of 2.3%[39]. - The total revenue for the nine months ended September 30, 2019, was HKD 153,836,000, an increase of 9.4% compared to HKD 140,605,000 for the same period in 2018[54]. - The company reported a net other income of HKD 1,884,000 for the nine months ended September 30, 2019, compared to a loss of HKD 555,000 for the same period in 2018[61]. - The company achieved a net profit of approximately HKD 1.0 million for the period, compared to a net loss of approximately HKD 4.4 million in the same period of 2018[94]. - Other income, gains, and losses for the period amounted to approximately HKD 1.9 million, compared to a loss of HKD 0.6 million for the nine months ended September 30, 2018[99]. - The profit attributable to the owners of the company for the period was approximately HKD 1.0 million, compared to a loss of HKD 4.4 million for the nine months ended September 30, 2018[101]. Revenue Breakdown - Revenue from the Chinese market (excluding Hong Kong) for the nine months ended September 30, 2019, was HKD 152,539,000, up from HKD 137,098,000 in 2018, representing an increase of 11.3%[57]. - The revenue from bonding wire products increased by 12.6% to approximately HKD 122.0 million, driven by higher sales volume[96]. - The revenue from packaging glue products decreased by 11.5% to approximately HKD 18.8 million, primarily due to a reduction in average selling prices[96]. - The total revenue from packaging materials for the nine months ended September 30, 2019, was HKD 18,800,000, a decrease of 11.5% from HKD 21,249,000 in 2018[54]. - The company reported a decrease in revenue from encapsulation materials, which totaled HKD 18,800,000 for the nine months ended September 30, 2019, down from HKD 21,249,000 in 2018[54]. Expenses and Costs - The company incurred administrative expenses of HKD 18,492 thousand for the nine months ended September 30, 2019, an increase of 24.0% from HKD 14,847 thousand in the same period of 2018[6]. - The financing costs for the nine months ended September 30, 2019, were HKD 1,544 thousand, which is significantly higher than HKD 592 thousand in the same period of 2018, representing an increase of 161.3%[6]. - The company incurred financing costs of HKD 692,000 for bank borrowings in the nine months ended September 30, 2019, compared to HKD 523,000 in 2018, reflecting a 32.3% increase[62]. - The company’s financing costs related to lease liabilities amounted to HKD 594,000 for the nine months ended September 30, 2019, with no prior costs reported in 2018[62]. - The company's cost of sales rose by 13.2% to approximately HKD 123.8 million, consistent with the revenue increase[97]. - Gross profit decreased by 3.9% to approximately HKD 30.0 million, with a slight decline in gross margin from 22.2% to 19.5%[97]. - Sales and distribution expenses decreased to HKD 7.7 million, down from HKD 8.4 million for the nine months ended September 30, 2018, while administrative expenses increased by approximately HKD 3.6 million to about HKD 18.5 million[100]. Corporate Governance and Compliance - The audit committee, composed of three independent non-executive directors, reviewed the unaudited condensed consolidated results for the period and found them compliant with applicable accounting standards[142]. - The company has adopted a code of conduct for directors' securities transactions in accordance with GEM Listing Rules[139]. - The company has complied with the corporate governance code as stipulated in the GEM Listing Rules during the period[136]. - The company regularly reviews its corporate governance practices to ensure compliance with the corporate governance code[137]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or any of its subsidiaries during the period[140]. Future Outlook and Strategy - The company has not provided specific guidance for future performance or new product developments in the conference call[6]. - The company continues to focus on the development and sales of semiconductor packaging materials, with no mention of market expansion or acquisitions in the report[41]. - The company is actively developing and launching new products, including mini LED packaging, which has received widespread customer recognition[94]. - The company is also working on advanced materials for the QLED and 5G network markets[94]. - The company aims to expand its customer base and enrich its product portfolio, focusing on advanced semiconductor packaging materials to meet the demands of emerging markets such as 5G, automotive electrification, and IoT[107]. - The company is implementing effective cost control measures to enhance economic efficiency, including streamlining sales processes and improving production efficiency[107]. - No significant investments or acquisitions were made during the period[108]. Shareholder Information - The company holds a 50.60% equity interest in the group, with key shareholders being Mr. Zhou and Professor Zhou, each holding 50.60% of the shares[119]. - The issued share capital of the company as of September 30, 2019, was HKD 7,055,000, divided into 705,500,000 shares with a par value of HKD 0.01 each[119]. - As of September 30, 2019, the company had issued ordinary shares amounting to HKD 7,055,000, divided into 705,500,000 shares with a par value of HKD 0.01 each[128]. - Chows Investment Group Limited holds a 100% interest in Niche Technology Investment Holdings Limited, which owns 357,000,000 shares, representing 50.60% of the issued share capital[128]. - Ms. Chow Fung Wai Lan Rita holds a spouse interest in 357,510,000 shares, accounting for 50.67% of the issued share capital[128]. - Mr. Ma Ya Mu holds a beneficial interest in 152,490,000 shares, which is 21.61% of the issued share capital[128]. - The company has not granted any options under the share option scheme as of the report date[132].

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 102,379 thousand, an increase of 22.4% compared to HKD 83,593 thousand for the same period in 2018[8] - Gross profit for the six months ended June 30, 2019, was HKD 19,918 thousand, representing a gross margin of 19.5%, compared to HKD 17,186 thousand and a gross margin of 20.5% for the same period in 2018[8] - The company reported a net loss of HKD 420 thousand for the three months ended June 30, 2019, compared to a net loss of HKD 8,396 thousand for the same period in 2018, indicating a significant improvement[8] - The company reported a profit of HKD 183 thousand for the six months ended January 1, 2019, compared to a loss in the previous period[19] - The company reported a loss of HKD 420,000 for the three months ended June 30, 2019, compared to a loss of HKD 8,396,000 for the same period in 2018[61] - The company reported a profit attributable to owners of approximately HKD 0.2 million, a significant improvement from a loss of HKD 7.7 million in the first half of 2018[89] Assets and Liabilities - Total assets as of June 30, 2019, were HKD 259,623 thousand, an increase from HKD 246,221 thousand as of December 31, 2018[14] - The company’s total liabilities increased to HKD 236,724 thousand as of June 30, 2019, compared to HKD 237,128 thousand as of December 31, 2018, showing a slight decrease[14] - The company’s total equity as of June 30, 2019, was HKD 236,724 thousand, slightly down from HKD 237,128 thousand at the beginning of the year[19] - The company’s cash and cash equivalents decreased to HKD 8,260 thousand as of June 30, 2019, from HKD 15,410 thousand as of December 31, 2018[12] - The company’s net current assets as of June 30, 2019, were approximately HKD 134.2 million, down from HKD 145.2 million as of December 31, 2018[95] - The current ratio as of June 30, 2019, was approximately 3.6, compared to 6.0 as of December 31, 2018[95] Revenue Sources - Key product revenue for the six months included HKD 81,257 thousand from wire bonding, up 19.9% from HKD 67,704 thousand in 2018[35] - Revenue from the Chinese market (excluding Hong Kong) reached HKD 101,251 thousand, a 24.3% increase from HKD 81,434 thousand in the previous year[38] - The revenue from bonding wires increased by 20.0% to approximately HKD 81.3 million, driven by increased sales volume[83] - The revenue from packaging materials grew by 14.6% to approximately HKD 12.3 million, primarily due to increased sales of LED epoxy resins[83] Expenses and Costs - The company incurred financing costs of HKD 456 thousand for the three months ended June 30, 2019, compared to HKD 177 thousand for the same period in 2018, representing a 157.6% increase[8] - Total employee costs amounted to HKD 8,696,000 for the six months ended June 30, 2019, an increase from HKD 6,808,000 in the same period of 2018, representing a growth of approximately 26%[50] - Administrative expenses increased by approximately HKD 4.7 million to about HKD 12.8 million, primarily due to a rise in employee costs and increased legal and compliance fees post-IPO[87] - Sales and distribution expenses for the period were approximately HKD 5.9 million, compared to HKD 5.7 million in the first half of 2018[87] Investments and Capital Expenditures - The company has purchased additional machinery and equipment to enhance production capacity, with two new packaging adhesive production lines now operational[81] - The company plans to invest HKD 19.5 million in purchasing machinery and equipment for R&D improvements from July 1, 2019, to December 31, 2020[121] - The company has allocated HKD 5.9 million for hiring external consultants for R&D projects during the same period[121] - The company’s capital expenditures on property, plant, and equipment were HKD 3,845,000 for the six months ended June 30, 2019, down from HKD 8,299,000 in the same period of 2018[64] Corporate Governance and Compliance - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited condensed consolidated results for the period and found them compliant with applicable accounting standards[148] - The company has complied with the corporate governance code as stipulated in the GEM Listing Rules during the reporting period[140] - There were no known conflicts of interest involving directors or controlling shareholders with respect to the company's business during the period[138] - The company regularly reviews its corporate governance practices to ensure compliance with the code[141] Future Plans and Market Strategy - The company plans to continue its focus on the development and sales of semiconductor packaging materials[21] - The company plans to continue expanding its market presence in China and Hong Kong, leveraging its product offerings to drive growth[38] - The company is strategically enhancing production capacity with the second packaging adhesive production line now operational, significantly increasing overall capacity[92] - The company is focusing on developing new products, particularly LED packaging for agriculture and medical lighting, which are expected to drive future growth[92] Shareholder Information - The company’s major shareholders, Mr. Zhou and Professor Zhou, each hold 50.60% of the issued share capital[125] - As of June 30, 2019, the company had issued ordinary shares totaling HKD 7,055,000, divided into 705,500,000 shares with a par value of HKD 0.01 each[133] - Chows Investment Group Limited holds a 100% interest in Niche Technology Investment Holdings Limited, which owns 357,000,000 shares, representing 50.60% of the company's issued share capital[133] - Chow Fung Wai Lan Rita holds 357,510,000 shares, representing 50.67% of the company's issued share capital, as a spouse interest[133] Accounting Standards - The company has adopted new accounting standards, including HKFRS 16, which affects the accounting for leases[25] - The total assets and liabilities related to leases were recognized in accordance with the new accounting policy effective from January 1, 2019[29] - Lease liabilities were measured at present value, including fixed payments and variable lease payments based on indices or rates[31]

Financial Performance - The group's revenue for the three months ended March 31, 2019, was HKD 45,924,000, representing a 31.6% increase from HKD 34,911,000 in the same period of 2018[6] - Gross profit for the same period was HKD 8,810,000, up 32.5% from HKD 6,646,000 year-on-year[6] - The group's net profit for the three months ended March 31, 2019, was HKD 603,000, a decrease of 16.8% compared to HKD 725,000 in the previous year[6] - The cost of sales increased to HKD 37,114,000, which is a 31.2% rise from HKD 28,265,000 in the prior year[6] - Administrative expenses rose to HKD 5,493,000, an increase of 55.9% from HKD 3,523,000 in the same quarter of 2018[6] - Basic earnings per share for the quarter were HKD 0.09, compared to HKD 0.14 in the same period last year[8] - The group incurred finance costs of HKD 410,000, which increased from HKD 239,000 in the previous year[6] - The company reported other income of HKD 781,000, down 46.6% from HKD 1,464,000 in the previous year[6] Revenue Breakdown - Revenue for the first quarter of 2019 reached HKD 45,924 thousand, a 31.6% increase from HKD 34,911 thousand in the same period of 2018[29] - Revenue from the Chinese market (excluding Hong Kong) was HKD 45,556 thousand, up 35.4% from HKD 33,644 thousand year-on-year[30] - The total revenue from key products included HKD 38,320 thousand from wire bonding, up from HKD 30,086 thousand in the previous year[29] - The revenue from packaging glue products increased by approximately 72.9% to about HKD 5.2 million, driven by growth in LED epoxy resin sales[49] - The revenue from bonding wire products rose by approximately 27.4% to about HKD 38.3 million, primarily due to increased sales of high gold content bonding wire products[49] Costs and Expenses - The sales cost for the period was approximately HKD 37.1 million, an increase of about 31.3% compared to HKD 28.3 million in the previous year, aligning with revenue growth[50] - Total employee costs for the period amounted to HKD 7.875 million, up from HKD 6.277 million in the previous year, reflecting an increase in staff and director remuneration[53] - The company recognized a total of HKD 781 thousand in financing costs, down from HKD 1,464 thousand in the same period last year[32] - The company’s financing costs included HKD 210 thousand in interest on lease liabilities, which was not present in the previous year[32] Market and Growth Potential - The semiconductor packaging materials market in China is expected to reach approximately RMB 109.9 billion by 2022, with a compound annual growth rate (CAGR) of about 16.6% from 2018 to 2022[58] - The company continues to focus on the development and sales of semiconductor packaging materials, indicating potential for future growth in this sector[15] - The company plans to enhance its production capacity by acquiring necessary machinery and equipment, following the trial operation of its second packaging adhesive production line[59] - The company will continue to invest in research and development for new products and applications, particularly in packaging adhesives, to meet growing market demand[59] - The company aims to increase resources for sales and marketing activities to enhance its corporate image and drive business growth[61] - The company is optimistic about the industry outlook and market potential, focusing on developing high-quality products for customers[59] Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules during the reporting period[4] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated results and found them compliant with applicable accounting standards and GEM Listing Rules[5] - The company has established an audit committee to oversee financial reporting and internal control processes[8] - The company regularly reviews its corporate governance practices to ensure compliance with the code[9] Shareholder Information - Major shareholders include Junma Technology Investment Holdings Limited and Chows Investment Group Limited, each holding 50.60% of the issued share capital[75] - The company’s issued share capital as of March 31, 2019, was HKD 7,055,000, divided into 705,500,000 shares[67] - Chow Kuo Li Jen holds 100% equity in Chows Investment Group Limited, which owns 357,000,000 shares in the company, as per the Securities and Futures Ordinance[2] - The company has not granted any options under the share option scheme as of the report date[3] Operational Updates - The company continued to enhance production capacity by purchasing more machines and upgrading facilities, with a new packaging glue production line starting trial operations[47] - The company serves over 300 customers, including major LED, camera module, and IC manufacturers primarily located in China[47] - No significant investments or acquisitions were made during the reporting period[62] - The company will continue to execute its implementation plan as outlined in the prospectus and prudently assess new business opportunities[61] - The company is positioned to capitalize on emerging markets such as the internet, smart vehicles, artificial intelligence, and smart factories in China[58] - The company did not recommend any dividend payment for the period, consistent with the previous year[55] - There are no known interests or potential conflicts of interest from directors or controlling shareholders that could compete with the company's business[7] - The executive directors include Zhou Boxuan, Zhou Zhenji, and Shi Yiwu, while the non-executive directors include Ma Yongjing and independent non-executive directors[10]