Corporate Information [Corporate Information](index=4&type=section&id=Corporate%20Information) This chapter details the company's registration information, board composition, professional committees, and key partners including bankers, independent auditors, and legal advisors - The company's Board of Directors comprises executive, non-executive, and independent non-executive directors, with **Mr. Tang Yuen Tao** serving as Chairman and Chief Executive Officer[6](index=6&type=chunk) - The company's independent auditor is **Moore CPA Limited**[7](index=7&type=chunk) Management Discussion and Analysis [Business Review](index=7&type=section&id=Business%20Review) The Group, a leading back-end semiconductor transfer media provider, held an **8.4% global market share** in 2023, with **trays** as its primary revenue source, mainly from Southeast Asia, China, and Taiwan in H1 2024 - The Group ranks **third globally** in the back-end semiconductor transfer media industry by 2023 sales revenue, holding an approximate **8.4% market share**[11](index=11&type=chunk) Revenue by Product Segment for H1 2024 | Product Category | Revenue (HK$ Million) | Percentage of Total Revenue (%) | | :--- | :--- | :--- | | Trays and Tray-Related Products | 73.5 | 92.4% | | MEMS and Sensor Packaging | 5.5 | 7.0% | | Carrier Tapes | 0.5 | 0.7% | Revenue Contribution by Geographic Market for H1 2024 | Region | Percentage of Total Revenue (%) | | :--- | :--- | | Southeast Asia | 32.6% | | China | 28.9% | | Taiwan | 20.1% | | Other Regions (USA, Europe, Hong Kong, South Korea, Japan) | 18.4% | [Outlook](index=9&type=section&id=Outlook) The Board anticipates a semiconductor industry rebound, preparing for growth through enhanced automation and facility modernization, strategic expansion of carrier tape manufacturing in the Philippines, intensified sales and marketing in China and Southeast Asia, and continuous R&D investment - The Board anticipates the semiconductor industry has reached its cyclical trough and is preparing for a new growth phase by advancing **automation and facility modernization** to enhance productivity and efficiency[20](index=20&type=chunk) - To expand its geographical footprint and production capacity, the Group plans to develop **carrier tape manufacturing in the Philippines**, leveraging lower labor costs and proximity to key customers[23](index=23&type=chunk) - The Group plans to strengthen global sales and marketing, particularly in **China** with new sales points in Shenzhen and Chengdu, and by adding technical support sales representatives in Malaysia and the Philippines[24](index=24&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) For the six months ended June 30, 2024, Group revenue decreased by **16.4% to HK$79.6 million** due to a mild semiconductor recovery, with gross margin falling to **35.1%**; a **HK$9.5 million loss** was recorded, impacted by **HK$8.4 million in one-off listing expenses**, while post-listing financial position remains robust with **cash and cash equivalents increasing to HK$33.6 million** and a **current ratio of 1.3 times** Key Financial Performance for H1 2024 (Year-on-Year Comparison) | Metric | H1 2024 (HK$ Million) | H1 2023 (HK$ Million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 79.6 | 95.2 | -16.4% | | Gross Profit | 27.9 | 37.6 | -25.8% | | Gross Margin | 35.1% | 39.5% | -4.4pp | | Loss/(Profit) for the Period | (9.5) | 3.7 | N/A | | Adjusted Profit Before Tax* | 0.535 | 6.8 | -92.1% | - The loss for the period was primarily impacted by **HK$8.4 million in non-recurring listing expenses**; excluding this, the adjusted profit before tax was **HK$0.535 million**[29](index=29&type=chunk) Key Financial Position Indicators (Period-End Comparison) | Metric | As of June 30, 2024 | As of December 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents | HK$33.6 Million | HK$1.1 Million | | Current Ratio | 1.3 times | 1.1 times | | Debt-to-Asset Ratio | 0.6 times | 0.8 times | [Use of Proceeds](index=17&type=section&id=Use%20of%20Proceeds) The company, listed in June 2024, raised **HK$31.35 million** net proceeds, of which **HK$1.8 million** was utilized by June 30, 2024, primarily for enhancing China's capacity and general working capital, with **HK$29.55 million** remaining unutilized and held in banks for future allocation as per the prospectus Use of Net Proceeds from Listing (As of June 30, 2024) | Purpose | Planned Allocation (HK$ Million) | Utilized (HK$ Million) | Unutilized (HK$ Million) | | :--- | :--- | :--- | :--- | | Enhancing China's Production Capacity and Capabilities | 24.51 | 1.2 | 23.31 | | Strengthening Global Sales and Marketing | 1.95 | - | 1.95 | | Purchasing ERP System and Upgrading Information Systems | 1.32 | - | 1.32 | | Strengthening R&D and Material Engineering Capabilities | 0.97 | - | 0.97 | | General Working Capital | 2.60 | 0.6 | 2.00 | | **Total** | **31.35** | **1.8** | **29.55** | Other Information [Dividends, Corporate Governance, and Director Interests](index=18&type=section&id=Dividends,%20Corporate%20Governance,%20and%20Director%20Interests) The Board does not recommend a 2024 interim dividend; the company complies with corporate governance codes, noting a deviation where **Mr. Tang Yuen Tao** serves as both Chairman and CEO, and this section also details director and major shareholder interests - The Board does not recommend an interim dividend for the six months ended June 30, 2024[38](index=38&type=chunk) - The company deviates from corporate governance code provisions requiring separation of Chairman and CEO roles, with **Mr. Tang Yuen Tao** currently holding both positions, which the Board believes is in the Group's best interest[38](index=38&type=chunk) Shareholdings of Directors and Chief Executive (As of June 30, 2024) | Director Name | Capacity/Nature of Interest | Number of Shares Held | Percentage of Issued Share Capital (%) | | :--- | :--- | :--- | :--- | | Mr. Tang Yuen Tao | Interest in Controlled Corporation / Concert Party Interest | 193,125,000 / 157,500,000 | 37.68% / 30.73% | | Mr. Chan Kai Leung | Beneficial Owner | 7,500,000 | 1.46% | | Mr. Shek Kam Pan | Beneficial Owner | 5,625,000 | 1.10% | | Mr. Tam Ming Wah | Beneficial Owner | 5,625,000 | 1.10% | [Share Option Scheme](index=24&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme on May 20, 2024, to incentivize and retain talent, with a maximum of **51,250,000 options** (10% of issued shares at listing) available for grant, and no options have been granted as of the report date - The company adopted a share option scheme on **May 20, 2024**, with a maximum of **51,250,000 shares** (10% of total issued shares at listing) available for grant under the scheme[51](index=51&type=chunk)[55](index=55&type=chunk) - No share options have been granted or agreed to be granted by the company from the adoption date of the scheme up to the report date[56](index=56&type=chunk) Financial Statements [Report on Review of Condensed Consolidated Financial Statements](index=27&type=section&id=Report%20on%20Review%20of%20Condensed%20Consolidated%20Financial%20Statements) Independent auditor Moore CPA Limited reviewed the Group's condensed consolidated financial statements for the six months ended June 30, 2024, in accordance with Hong Kong Standard on Review Engagements 2410, concluding no material non-compliance with International Accounting Standard 34 'Interim Financial Reporting' - Independent auditor **Moore CPA Limited** concluded that the condensed consolidated financial statements comply in all material respects with **International Accounting Standard 34**[66](index=66&type=chunk)[67](index=67&type=chunk) [Condensed Consolidated Financial Statements](index=29&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, showing **H1 2024 revenue of HK$79.61 million** and a **loss of HK$9.46 million**, with total assets of **HK$217 million** and total equity of **HK$86.1 million** as of June 30, 2024, alongside cash flow details Summary of Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended June 30, 2024) | Item | Amount (HK$ Thousand) | | :--- | :--- | | Revenue | 79,612 | | Gross Profit | 27,936 | | Loss/(Profit) Before Tax | (7,828) | | Loss/(Profit) for the Period | (9,461) | | Basic Loss Per Share (HK Cents) | (2.4) | Summary of Condensed Consolidated Statement of Financial Position (As of June 30, 2024) | Item | Amount (HK$ Thousand) | | :--- | :--- | | Non-current Assets | 69,089 | | Current Assets | 148,312 | | Current Liabilities | 118,914 | | Non-current Liabilities | 12,392 | | **Net Assets** | **86,095** | | **Total Equity** | **86,095** | Summary of Condensed Consolidated Statement of Cash Flows (For the Six Months Ended June 30, 2024) | Item | Amount (HK$ Thousand) | | :--- | :--- | | Net Cash (Used in) Operating Activities | (7,649) | | Net Cash Used in Investing Activities | (4,137) | | Net Cash From Financing Activities | 44,352 | | **Net Increase in Cash and Cash Equivalents** | **32,566** | [Notes to the Condensed Consolidated Financial Statements](index=35&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and supplementary information for key financial data, including revenue segmentation by product and geography, detailed segment performance analysis, major customer concentration (two clients exceeding 10% of revenue), pre-listing dividend declarations, and related party transactions and guarantees Revenue Breakdown (For the Six Months Ended June 30, 2024) | Category | Revenue (HK$ Thousand) | | :--- | :--- | | **By Product Category** | | | Trays and Tray-Related Products | 73,535 | | Carrier Tapes | 539 | | MEMS and Sensor Packaging | 5,538 | | **By Geographic Market** | | | Southeast Asia | 25,995 | | China | 23,056 | | Taiwan | 16,006 | | Other | 14,555 | - During the period, revenue from **Customer I and Customer II** each accounted for **over 10%** of the Group's total revenue, indicating a degree of customer concentration[90](index=90&type=chunk) - Prior to listing, the company declared and paid dividends totaling **HK$19.38 million** in the first half of 2024[71](index=71&type=chunk)[104](index=104&type=chunk)[106](index=106&type=chunk)

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 79,612,000, a decrease of 16.4% compared to HKD 95,216,000 for the same period in 2023[3] - Gross profit for the same period was HKD 27,936,000, down 25.8% from HKD 37,635,000 year-on-year[3] - The company recorded a loss attributable to shareholders of HKD 9,461,000 for the six months ended June 30, 2024, compared to a profit of HKD 3,668,000 in the previous year[3] - Total comprehensive income for the period was HKD (10,914,000), a significant decline from HKD 4,645,000 in the prior year[2] - Revenue for the six months ended June 30, 2024, was HKD 79,612 thousand, a decrease of 16.4% compared to HKD 95,216 thousand for the same period in 2023[11] - Sales of pallets and related products amounted to HKD 73,535 thousand, down from HKD 87,980 thousand, representing a decline of 16.4%[11] - The revenue from MEMS and sensor packaging was HKD 5,538 thousand, compared to HKD 7,084 thousand, reflecting a decrease of 21.8%[11] - The Southeast Asia market generated revenue of HKD 25,995 thousand, down 27.4% from HKD 35,792 thousand in the previous year[11] - The company reported a pre-tax loss of HKD 7,828 thousand after accounting for listing expenses of HKD 8,363 thousand[14] - The adjusted pre-tax profit (excluding non-recurring listing expenses) was HKD 535,000, compared to HKD 6.8 million in the same period last year, with a reported loss of HKD 9.5 million after accounting for listing expenses of approximately HKD 8.4 million[60] Assets and Liabilities - Non-current assets increased to HKD 69,089,000 as of June 30, 2024, compared to HKD 66,497,000 at the end of 2023[4] - Current assets decreased to HKD 148,312,000 from HKD 138,444,000 at the end of 2023[4] - The company's cash and cash equivalents rose significantly to HKD 33,631,000 from HKD 1,073,000 at the end of 2023[4] - Total liabilities decreased to HKD 118,914,000 from HKD 128,685,000 at the end of 2023[4] - The company has a net asset value of HKD 86,095,000 as of June 30, 2024, compared to HKD 61,377,000 at the end of 2023[5] - Trade receivables, net of credit loss provisions, were HKD 29,209,000 as of June 30, 2023, compared to HKD 32,742,000 as of December 31, 2024, reflecting a decrease of approximately 10%[34] - Total trade payables increased from HKD 52,466,000 as of June 30, 2023, to HKD 55,828,000 as of December 31, 2024, representing an increase of about 6.5%[37] - Bank borrowings, including secured loans and trade receivables financing, totaled HKD 54,207,000 as of June 30, 2023, down from HKD 50,996,000 as of December 31, 2024[39] - The company’s total current liabilities, including bank borrowings due within one year, were HKD 49,262,000 as of June 30, 2023, compared to HKD 44,675,000 as of December 31, 2024[40] Operational Focus - The company is focused on the research, development, manufacturing, and sales of semiconductor packaging and MEMS sensors[6] - The company continues to focus on the manufacturing and sales of backend semiconductor transmission medium products and MEMS and sensor packaging[14][15] - The company is focused on precision manufacturing of engineering plastics, particularly in the design, development, manufacturing, and sales of pallets and related products[47] - The company plans to expand its operations in the Philippines, focusing on carrier tape manufacturing to enhance operational efficiency and delivery capabilities[53] - The company aims to strengthen its sales and marketing efforts in key global markets, particularly in China, by establishing new sales points in Shenzhen and Chengdu[53] - The company is enhancing its R&D programs to improve product offerings and meet the evolving demands of high-quality customers[54] Market Position and Strategy - The company ranked third globally in sales revenue within the semiconductor packaging industry, holding approximately 8.4% market share in 2023[47] - Revenue contributions by region showed Southeast Asia accounting for approximately 32.6%, with China and Taiwan contributing about 28.9% and 20.1% respectively[48] - The global semiconductor market is expected to experience significant expansion driven by increased demand in China and advancements in AI technology[52] - The board anticipates that the semiconductor industry has reached a cyclical low and is on the verge of a new growth phase[52] - The company is implementing automation in its production facilities to increase productivity and efficiency, ensuring a competitive edge in the market[52] Employee and Administrative Costs - The total employee costs for the six months ended June 30, 2024, were HKD 32,584,000, compared to HKD 29,186,000 in the same period of 2023, reflecting an increase of approximately 8.2%[24] - Administrative expenses increased by approximately 11.3% to HKD 13.9 million, up from HKD 12.5 million in the same period last year, primarily due to increased consulting fees related to factory renovations[58] Shareholder and Dividend Information - The company declared an interim dividend of HKD 0.33 per share, totaling HKD 11,220,000, with HKD 5,778,000 payable to a major shareholder offset against amounts receivable[28] - The company does not plan to declare an interim dividend for the six months ending June 30, 2024[75] Compliance and Governance - The company has established an Audit Committee consisting of three independent non-executive directors[80] - The external auditor, Dahuama Shiyun CPA, has reviewed the unaudited consolidated financial statements and found no issues[80] - The Audit Committee and management have reviewed the unaudited consolidated performance and confirmed compliance with applicable accounting standards and GEM listing rules[80] - The interim report for the six months ending June 30, 2024, will be published on the company's and the Hong Kong Stock Exchange's websites[81] - The announcement regarding the interim results will be sent to shareholders as per GEM listing rules[81]