Financial Performance - The company reported a sales revenue growth despite challenging economic conditions, with a strong rebound in profitability[18]. - The company recorded a revenue increase of HKD 914.7 million, representing a growth of 10.0%, from HKD 9,167.2 million in FY2023 to HKD 10,081.9 million in FY2024, driven by strong demand for graphics cards following the launch of NVIDIA's "SUPER" series GPUs[29]. - The company's net profit margin improved significantly from 0.7% in FY2023 to 2.6% in FY2024, attributed to the strong demand for new graphics cards and lower advertising expenses[30]. - Gross profit for FY2024 was HKD 955.5 million, an increase of HKD 254.8 million or 36.4% from FY2023, with a gross margin of 9.5% compared to 7.6% in FY2023[66]. - Net profit attributable to shareholders for FY2024 was HKD 262.1 million, compared to HKD 60.8 million in FY2023, driven by improved gross margins offsetting increased expenses[74]. Product Development and Innovation - The new generation Blackwell GPU is set to launch in January 2025, expected to enhance gaming performance and attract significant market demand[20]. - New product lines introduced include laptops, medical-grade computers, and a GPU server line for AI and machine learning applications[20]. - The company is committed to innovation and product development, investing in operational excellence to increase shareholder returns[20]. - The company must continuously innovate and adapt to rapid technological changes to remain competitive in the electronics manufacturing industry[47]. Market Expansion and Strategy - The company has successfully implemented a "China +1" strategy, relocating its headquarters to Singapore and listing on the Singapore Exchange[18]. - The company aims to explore new global business opportunities through its expansion into Southeast Asia[18]. - The company has strategically relocated its headquarters to Singapore and established a new manufacturing facility in Indonesia, expanding its footprint in Southeast Asia[28]. - The company is exploring new global opportunities and expanding its market presence, particularly in the gaming sector, driven by increasing demand for high-performance graphics cards[26]. Supply Chain and Procurement Risks - The company relies heavily on NVIDIA as its main GPU supplier, with approximately 67.9% of total procurement coming from NVIDIA, posing a concentration risk[33]. - The company faces potential risks if NVIDIA reallocates resources to AI-related products, which could lead to delays or shortages in obtaining GPUs necessary for manufacturing graphics cards[34]. - Disruptions to manufacturing facilities and production processes, due to geopolitical tensions or supply chain issues, could significantly impact the company's capacity and reputation[41]. - Trade tariffs and export restrictions may pose significant risks to the company's business operations and financial performance[45]. Financial Position and Liquidity - The balance sheet remains robust, with improving liquidity[18]. - The company has maintained strong cash inflows and a solid financial position, gradually improving its working capital[30]. - Current assets decreased by 8.4% from HKD 4,627.9 million to HKD 4,238.9 million, primarily due to a reduction in inventory and cash[79]. - Cash and bank balances decreased by 6.3% from HKD 2,491.2 million to HKD 2,334.0 million, primarily due to increased cash usage for procurement and financing[83]. Governance and Corporate Structure - The board has seen new appointments, enhancing governance and oversight[7]. - The company is committed to maintaining a robust corporate governance framework to create long-term value for stakeholders while considering sustainability factors in its business development strategy[113]. - The company has established a two-tier governance structure, including a board of directors and an ESG working team, to oversee ESG strategies and ensure effective management and internal control systems[116]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to improve data collection and reporting systems in environmental management, social responsibility, and governance, gradually expanding the scope of disclosures[117]. - The company has identified 21 key ESG issues impacting its operations and stakeholders, including environmental compliance and greenhouse gas emissions management[126]. - The company has implemented a series of environmental protection measures aimed at reducing energy and water consumption, carbon emissions, and waste disposal[131]. - The company actively engages in community support and charitable activities, contributing to local employment and development[126]. Employee Welfare and Training - The company is committed to providing competitive compensation and career development paths for employees, ensuring their rights and welfare[122]. - Approximately 82.45% of employees received training during the reporting period, with each employee completing an average of 12.68 hours of training[170]. - The company emphasizes open communication with employees and has established a framework to handle complaints and prevent retaliation[167]. - The company achieved a 0% fatality rate due to work-related incidents over the past three years, with five recorded work injuries during the reporting period, resulting in a total of 463 lost workdays[169]. Community Engagement and Support - The company donated approximately HKD 7,000 to support local communities during the reporting period[193]. - The company aims to continue supporting community and environmental projects that align with its mission and values in the coming years[194].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of HKD 10,081.9 million, representing a 10.0% increase from HKD 9,167.2 million in 2023[4] - Gross profit for the same period was HKD 955.5 million, a significant increase of 36.4% compared to HKD 700.7 million in the previous year, resulting in a gross margin of 9.5%[4] - The net profit attributable to shareholders surged to HKD 262.1 million, marking a 331.1% increase from HKD 60.8 million in 2023, with a net profit margin of 2.6%[4] - The company reported total comprehensive income of HKD 242.9 million for the year, compared to HKD 58.5 million in 2023[6] - Basic and diluted earnings per share rose to HKD 0.68, up from HKD 0.16 in the previous year, reflecting strong profitability growth[8] Revenue Breakdown - Revenue from the design, manufacturing, and trading of electronic and personal computer parts reached HKD 10,081,957 thousand in 2024, up from HKD 9,167,215 thousand in 2023, representing an increase of 9.9%[21] - Revenue from the Asia-Pacific region increased to HKD 4,355,025 thousand in 2024, compared to HKD 3,274,159 thousand in 2023, reflecting a growth of 33%[23] - The sales of graphics cards accounted for HKD 8,481,820 thousand in 2024, up from HKD 7,266,157 thousand in 2023, marking a growth of 16.7%[23] - Sales in the graphics card segment rose from HKD 7,266.1 million in FY2023 to HKD 8,481.8 million in FY2024, an increase of 16.7%[93] - Sales of self-branded graphics cards grew from HKD 5,661.2 million in FY2023 to HKD 6,318.1 million in FY2024, marking an 11.6% increase, primarily due to higher sales volume in the Chinese market[93] Asset and Liability Management - Non-current assets increased to HKD 776.3 million from HKD 667.5 million in the previous year, driven by investments in property, plant, and equipment[10] - Current assets decreased to HKD 4,238.9 million from HKD 4,627.9 million, primarily due to a reduction in inventory levels[10] - Total liabilities decreased to HKD 2,073.9 million from HKD 2,452.1 million, reflecting improved management of trade and other payables[10] - The company's net assets increased to HKD 2,862.0 million from HKD 2,774.2 million, indicating a solid financial position[11] - Trade payables decreased from HKD 1,046.9 million to HKD 816.2 million, a reduction of 22.0%, due to decreased procurement of raw materials[125] Investment and Expansion - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[13] - The company has strategically relocated its headquarters to Singapore and established a new manufacturing facility in Indonesia, expanding its footprint in Southeast Asia[60] - The company invested a total of HKD 123.3 million to establish a headquarters in Singapore and for capital expenditures related to a new manufacturing facility in Indonesia[62] - The establishment of a new production facility in Indonesia aims to improve flexibility in response to trade restrictions and tariffs, allowing the company to seize new business opportunities[91] Cost Management - The total cost of sales was HKD 9,126,471 thousand in 2024, compared to HKD 8,466,469 thousand in 2023, reflecting an increase of 7.8%[35] - Research and development expenses amounted to HKD 63,838 thousand in 2024, down from HKD 74,971 thousand in 2023, a decrease of 14.8%[35] - Selling and distribution expenses decreased by HKD 8.6 million to HKD 129.6 million in FY2024, a reduction of 6.2%, attributed to lower advertising and marketing costs[107] - Administrative expenses rose by HKD 89.2 million to HKD 532.0 million in FY2024, an increase of 20.1%, primarily due to higher employee costs and professional fees related to the Singapore listing[108] Risks and Challenges - The company relies heavily on NVIDIA as its main GPU supplier, with approximately 67.9% of total procurement coming from NVIDIA, posing a risk if the relationship is disrupted[65] - The shift of NVIDIA's business focus towards AI applications may lead to resource reallocation that could affect the supply of GPUs for gaming, potentially causing delays or shortages[66] - The company faces intense competition in the industry, and failure to respond effectively to market trends and consumer preferences may result in loss of market share and revenue[70] - Disruptions to manufacturing facilities and production processes due to geopolitical tensions or natural disasters could significantly impact the company's capacity and overall performance[73] Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules, with a board consisting of 13 directors, over half of whom are non-executive directors[160] - The audit committee was established on December 21, 2011, and consists of three independent non-executive directors as of November 5, 2024[165] - The audit committee reviewed the audited consolidated financial statements for the year ending December 31, 2024[166] Future Outlook - The company plans to launch the next-generation Blackwell gaming GPU in January 2025, which is expected to enhance gaming performance and attract market demand[91] - The self-branded graphics card business is expected to remain a key growth driver for the company in the coming years, driven by increasing demand for high-performance gaming graphics[58]

Revenue and Sales Performance - Revenue for the first half of fiscal year 2024 increased by approximately 18.4% to HKD 4,944.2 million, up from HKD 4,175.4 million in the same period of fiscal year 2023[9]. - Sales of graphics cards grew by 22.6% to HKD 4,088.7 million, compared to HKD 3,333.9 million in the first half of fiscal year 2023[9]. - ODM/OEM graphics card sales surged by 87.4% to HKD 1,055.4 million, up from HKD 563.1 million in the previous year[9]. - Own brand graphics card sales increased by 9.5% to HKD 3,033.3 million, compared to HKD 2,770.8 million in the first half of fiscal year 2023[9]. - Revenue increased from HKD 4,175.4 million in the first half of FY2023 to HKD 4,944.2 million in the first half of FY2024, representing an 18.4% growth[15]. - Sales of graphics cards rose from HKD 3,333.9 million in the first half of FY2023 to HKD 4,088.7 million in the first half of FY2024, a growth of 22.6%[15]. - ODM/OEM graphics card sales surged from HKD 563.1 million in the first half of FY2023 to HKD 1,055.4 million in the first half of FY2024, marking an 87.4% increase[16]. - Revenue from the Asia-Pacific region increased by 50.6%, from HKD 1,438.8 million in the first half of FY2023 to HKD 2,167.5 million in the first half of FY2024[18]. - Revenue from China rose by 17.6%, from HKD 939.3 million in the first half of FY2023 to HKD 1,104.6 million in the first half of FY2024[22]. Financial Performance - Gross profit rose by 72.5% from HKD 323.7 million in the first half of FY2023 to HKD 558.4 million in the first half of FY2024, with a gross margin improvement from 7.8% to 11.3%[26]. - Net profit attributable to shareholders increased to HKD 194.1 million in the first half of FY2024 from HKD 20.1 million in the first half of FY2023, driven by improved gross margins[36]. - Basic and diluted earnings per share rose to HKD 0.500 in the first half of FY2024 from HKD 0.052 in the first half of FY2023, with an interim dividend of HKD 0.20 per share declared[37]. - Profit before tax increased to HKD 228,459,000 from HKD 29,715,000, representing a growth of 669.5% year-over-year[88]. - Net profit for the period was HKD 192,265,000, compared to HKD 19,175,000 in the previous year, marking a substantial increase[88]. Expenses and Costs - Raw material costs increased by 14.8% from HKD 3,731.6 million in the first half of FY2023 to HKD 4,282.1 million in the first half of FY2024, aligning with the sales growth[25]. - Selling and distribution expenses decreased by 10.1% from HKD 60.3 million in the first half of FY2023 to HKD 54.2 million in the first half of FY2024, due to reduced marketing costs[29]. - Administrative expenses increased by 35.7% from HKD 210.3 million in the first half of FY2023 to HKD 285.4 million in the first half of FY2024, primarily due to higher employee costs[30]. - Financing costs decreased by 49.4% from HKD 35.2 million in the first half of FY2023 to HKD 17.8 million in the first half of FY2024, as the company relied more on internal reserves[32]. - Income tax expenses surged by 244.8% from HKD 10.5 million in the first half of FY2023 to HKD 36.2 million in the first half of FY2024, attributed to increased profits from key subsidiaries[35]. Assets and Liabilities - Total current assets increased from HKD 4,627.9 million as of December 31, 2023, to HKD 4,765.7 million as of June 30, 2024, an increase of 3.0%, primarily due to increases in inventory and trade receivables[40]. - Total current liabilities increased from HKD 2,452.2 million on December 31, 2023, to HKD 2,467.6 million on June 30, 2024, representing a growth of 0.6%[45]. - Total non-current assets decreased by 3.6% from HKD 667.5 million as of December 31, 2023, to HKD 643.8 million as of June 30, 2024, mainly due to a reduction in the carrying value of property, plant, and equipment[38]. - Total liabilities for borrowings are classified as current liabilities due to the banks' rights to demand repayment regardless of compliance with covenants[161]. Corporate Developments - The company plans to establish a new global headquarters in Singapore and a new manufacturing facility in Indonesia by the end of 2024 to expand its regional footprint[12]. - The company plans to apply for a listing on the Singapore Exchange and establish a global headquarters in Singapore, along with a new manufacturing facility in Indonesia[67]. - The group did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2024[66]. - The group has terminated the 2016 share option scheme, which had a maximum number of shares involved of 7,961,866, representing approximately 2.05% of the total issued shares[69]. Shareholder Information - The company declared an interim dividend of HKD 0.20 per share, totaling HKD 77,577,000, compared to HKD 0.10 per share and HKD 38,788,000 in the previous year[79]. - The beneficial ownership of Mr. Wang Fangbo is 27,639,750 shares, representing 7.13% of the equity[75]. - As of June 30, 2024, Mr. Wang Xihao holds 55,405,750 shares, representing 14.28% of the company's equity[73]. - Ms. He Huang Meide has a beneficial interest in 55,050,000 shares, accounting for 14.19% of the equity, including 54,850,000 shares held by Perfect Choice Limited[73]. Compliance and Governance - The company continues to maintain compliance with various legal and regulatory requirements, adhering to ISO standards and responsible business practices[11]. - The company has not established an internal audit function but has engaged an auditing firm to evaluate its risk management and internal control systems[84]. - The board consists of 10 directors, with a mix of executive and independent non-executive directors, ensuring a balanced governance structure[84].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 4,944.2 million, an increase of 18.4% compared to HKD 4,175.4 million in 2023[2] - Gross profit rose to HKD 558.4 million, reflecting a significant increase of 72.5% from HKD 323.7 million in the previous year[2] - Net profit attributable to shareholders surged to HKD 194.1 million, marking an impressive increase of 865.7% from HKD 20.1 million in 2023[2] - The gross profit margin improved to 11.3%, up 44.9% from 7.8% in the prior year[2] - The company reported a net profit margin of 3.9%, a substantial increase of 680.0% compared to 0.5% in the previous year[2] - Basic and diluted earnings per share for the period were HKD 0.500, compared to HKD 0.052 in the same period last year[4] - Basic and diluted earnings per share for the six months ended June 30, 2024, were based on a profit attributable to shareholders of HKD 194,060,000, a significant increase from HKD 20,102,000 for the same period in 2023[27] Revenue Breakdown - The Asia-Pacific region generated HKD 2,167,457,000 in revenue, up 50.7% from HKD 1,438,821,000 year-over-year[14] - Sales of graphics cards grew by 22.6% to HKD 4,088.7 million, driven by an increase in ODM/OEM orders, which rose by 87.4% to HKD 1,055.4 million[39] - Non-branded business revenue increased by 38.8% to HKD 1,849.9 million, primarily due to higher sales in the ODM/OEM graphics card segment[40] - Sales of self-branded graphics cards increased by 9.5% to HKD 3,033.3 million, supported by the popularity of new products using NVIDIA's "SUPER" series GPUs[39] - Brand business revenue grew from HKD 2,842.5 million in the first half of FY2023 to HKD 3,094.3 million in the first half of FY2024, an 8.9% increase[45] Expenses and Costs - Research and development expenses amounted to HKD 37,416,000 for the six months ended June 30, 2024, slightly down from HKD 39,340,000 in the previous year[22] - Sales and distribution expenses decreased by 10.1% from HKD 60.3 million in the first half of FY2023 to HKD 54.2 million in the first half of FY2024, primarily due to reduced advertising and marketing expenses[55] - Administrative expenses increased by 35.7% from HKD 210.3 million in the first half of FY2023 to HKD 285.4 million in the first half of FY2024, with employee costs rising by 45.8% to HKD 221.3 million[56] - Financing costs decreased by 49.4% from HKD 35.2 million in the first half of FY2023 to HKD 17.8 million in the first half of FY2024, mainly due to reduced bank borrowings[58] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 5,409.5 million, compared to HKD 5,295.4 million as of December 31, 2023[5] - Current assets increased to HKD 4,765.7 million, up from HKD 4,627.9 million at the end of 2023[5] - The company's net current assets stood at HKD 2,298.1 million, an increase from HKD 2,175.8 million in the previous year[6] - Total liabilities as of June 30, 2024, were reported at HKD 1,300,429,000, slightly up from HKD 1,280,048,000 as of December 31, 2023[32] - Total current liabilities rose by 0.6% to HKD 2,467.6 million, mainly due to bank borrowings and a decrease in product warranty and return provisions[68] Cash Flow and Financing - Net cash generated from operating activities for the first half of the fiscal year 2024 was HKD 558.5 million, significantly lower than the previous year's HKD 228.5 million pre-tax profit[73] - Net cash used in financing activities for the first half of fiscal year 2024 was HKD 817.6 million, primarily for repaying import loans of HKD 797.5 million[75] - The net cash to equity ratio decreased from 50.8% on December 31, 2023, to 41.8% on June 30, 2024, due to a reduction in cash and bank balances and an increase in total equity[78] Strategic Developments - The company is establishing a new global headquarters in Singapore and a manufacturing facility in Indonesia, expected to be operational by the end of 2024, as part of its strategy to expand into Southeast Asia[42] - The company has launched a new GPU server product line specifically for AI and machine learning applications to capitalize on rapid growth opportunities[42] - The group plans to apply for a listing on the Singapore Exchange and will establish a global headquarters in Singapore, along with a new manufacturing facility in Indonesia[84] Governance and Compliance - The company has complied with the corporate governance code, except for deviations regarding the separation of roles between the chairman and CEO, and the establishment of an internal audit function[90] - The audit committee, consisting of four independent non-executive directors, reviewed the group's unaudited interim results for the six months ending June 30, 2024[92]

Financial Performance - The company's profit attributable to shareholders for 2023 was HKD 60.8 million, a decrease of 91.3% from HKD 702.5 million in 2022[2]. - Financial asset impairment losses increased from HKD 0.5 million in 2022 to HKD 3.1 million in 2023, representing a growth of 520.0%[1]. - Total equity decreased from HKD 2,848.8 million as of December 31, 2022, to HKD 2,772.8 million as of December 31, 2023, a decline of 2.7%[4]. - Total current assets as of December 31, 2023, were HKD 4,627.9 million, down from HKD 5,428.4 million as of December 31, 2022[5]. - The production cost for 2023 was HKD 6,886.23 million, a decrease from HKD 8,331.53 million in 2022, reflecting a reduction of approximately 17.3%[170]. Employee Statistics - The number of employees decreased from 2,714 in 2022 to 2,490 in 2023[17]. - The total number of employees in the group reached 2,490 as of December 31, 2023, a decrease from 2,714 in 2022[138]. - The number of employees aged 30 and below decreased to 756 in 2023 from 899 in 2022, showing a decline of approximately 16%[174]. - Full-time employees numbered 2,484 in 2023, down from 2,714 in 2022, indicating a decrease of 8.5%[174]. - During the reporting period, 92.36% of employees received training, with an average of 14.04 hours of training per employee[120]. Environmental Impact - The total greenhouse gas emissions increased in 2023 due to higher consumption from new factories and increased vehicle usage as activities resumed post-pandemic[42]. - Dongguan Baoneng's energy consumption per million HKD of product production cost was 2,556.32 kWh, an increase of 29.89% compared to 2022, primarily due to increased direct energy usage[76]. - In 2023, the greenhouse gas emissions per million HKD of production cost increased by 29.79% to 1.4455 tons of CO2, compared to 1.1137 tons in 2022, due to the inclusion of new facilities' natural gas and electricity consumption[88]. - The total amount of non-hazardous waste generated per million HKD of production cost increased by 27.12% to 0.0075 tons, attributed to the additional waste from new facilities[91]. - The company has implemented various policies to minimize environmental impact, including greenhouse gas management guidelines and waste management procedures[81]. Corporate Governance and Compliance - The board is responsible for overseeing ESG matters and ensuring effective management and internal control systems are in place[45]. - The ESG working team, led by the CFO, is tasked with collecting, analyzing, and verifying ESG data to assist the board in addressing ESG-related issues[46]. - The company emphasizes the importance of employee rights and creating a work environment that fosters value and innovation[85]. - Dongguan Baoneng emphasizes compliance with labor laws, strictly prohibiting child labor and forced labor in its operations[122]. - The company has not received any complaints regarding misconduct or illegal activities during the reporting period, indicating a strong ethical compliance framework[164]. Sustainability Initiatives - The company aims to continue efforts to reduce or maintain greenhouse gas emissions per million HKD of production cost by the end of the fiscal year 2024[42]. - The company has established an energy management program to comply with national energy-saving laws and promote resource conservation among employees[97]. - The company will continue to invest resources to improve water efficiency as part of its sustainable growth objectives[79]. - The group has committed to using environmentally friendly packaging materials and has redesigned packaging to reduce paper and plastic usage[132]. - The company has implemented various energy-saving measures, including installing solar panels and upgrading production and lighting systems, to optimize energy usage[98]. Product Quality and Safety - The company has not experienced any product returns or recalls due to safety and health issues in 2023, maintaining a strong product safety record[159]. - The group strictly controls product quality and conducts various safety and reliability tests to ensure consumer safety[183]. - The group has implemented a quality certification management system in accordance with ISO 9001 standards to ensure product safety and quality[159]. - The group has achieved ISO45001 certification for its occupational health and safety policies and procedures[147]. - The group processed a total of 4 customer complaints regarding products or services, all of which were handled according to the established procedures[186].

Financial Performance - Total revenue for 2023 was HKD 9,167,215,000, a decrease of 14.9% compared to HKD 10,775,308,000 in 2022[18] - Revenue for the year ended December 31, 2023, was HKD 9,167.2 million, a decrease of 14.9% from HKD 10,775.3 million in 2022[24] - The total comprehensive income for the year was HKD 58.5 million, down from HKD 694.6 million in 2022, highlighting the overall decline in financial performance[25] - The company's net profit attributable to shareholders for 2023 was HKD 60,843,000, a significant decrease from HKD 702,484,000 in 2022, representing a decline of approximately 91.3%[67] - Profit attributable to owners of the company decreased by 91.3% to HKD 60.8 million from HKD 702.5 million in 2022, with a net profit margin of 0.7% versus 6.5%[24] - The group's operating profit attributable to shareholders was HKD 60.8 million in 2023, a significant drop from HKD 702.5 million in 2022[149] Revenue Breakdown - Revenue from the Asia-Pacific region was HKD 3,274.2 million, down from HKD 3,733.9 million, while North America and Latin America revenue decreased to HKD 1,282.3 million from HKD 2,078.5 million[36] - Sales of graphics cards accounted for HKD 7,266.2 million, down from HKD 8,994.8 million in 2022, indicating a decline in this key product segment[36] - The EMS business revenue fell from HKD 828.9 million in 2022 to HKD 739.0 million in 2023, a decrease of 10.8%[82] - Brand business revenue decreased from HKD 7,047.3 million in 2022 to HKD 5,815.6 million in 2023, a decline of 17.5%[83] - Revenue from other PC-related products and components increased from HKD 951.6 million in 2022 to HKD 1,162.1 million in 2023, an increase of 22.1%[103] Asset and Liability Changes - Total current assets decreased to HKD 4,627,894,000 in 2023 from HKD 5,428,391,000 in 2022, a decline of 14.7%[5] - Total non-current assets decreased to HKD 667,473,000 in 2023 from HKD 733,619,000 in 2022, a decline of 9%[5] - Total liabilities decreased to HKD 2,521,152,000 in 2023 from HKD 3,213,671,000 in 2022, a decrease of 21.6%[5] - Net assets decreased to HKD 2,774,215,000 in 2023 from HKD 2,851,145,000 in 2022, a decrease of 2.7%[6] - The company's trade payables increased to HKD 1,046,866,000 in 2023 from HKD 965,382,000 in 2022, reflecting an increase of approximately 8%[54] Cash Flow and Financing - Cash and bank balances increased to HKD 2,491,217,000 in 2023 from HKD 2,207,323,000 in 2022, representing a growth of 12.9%[5] - The company experienced a significant increase in financing costs, which rose to HKD 59.3 million from HKD 32.6 million in the previous year[25] - The company’s income tax expense for 2023 was HKD 28,248,000, a decrease from HKD 141,311,000 in 2022, representing a decline of about 80%[64] - The net cash equity ratio rose from 11.9% as of December 31, 2022, to 50.8% as of December 31, 2023, driven by increased cash and bank balances and reduced borrowings[154] Inventory and Receivables - Inventory decreased significantly to HKD 1,135,492,000 in 2023 from HKD 1,831,959,000 in 2022, a reduction of 38%[5] - The company's inventory levels for raw materials decreased from HKD 1,106,830,000 in 2022 to HKD 639,171,000 in 2023[69] - The net trade receivables decreased to HKD 752,767,000 in 2023 from HKD 1,155,788,000 in 2022, reflecting a decline of approximately 35%[50] - Trade and other receivables decreased by 29.1% to HKD 894.1 million, with trade receivables down 34.9% to HKD 752.7 million[125] Research and Development - Research and development expenses increased to HKD 74,971,000 in 2023 from HKD 64,286,000 in 2022, an increase of 16.5%[23] - The company’s research and development expenses included depreciation of machinery and equipment, contributing to the overall expenditure for the year[63] Corporate Governance and Management - The company complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules, with some deviations noted[183] - The chairman and CEO roles were held by the same individual, Mr. Wang Xihao, during the fiscal year, which is a deviation from the governance code[184] - The audit committee consists of four independent non-executive directors, ensuring oversight of the financial reporting process[185] Future Outlook and Strategy - The company plans to continue its focus on expanding its market presence and developing new technologies to enhance its product offerings[56] - The company plans to launch a new line of GPU servers for AI and machine learning in Q1 2024, which is expected to contribute to future sales and profits[112] - The group plans to launch a new series of GPU gaming cards in January 2024, anticipating strong demand from gamers[139] - The company aims to continue investing in product innovation and operational excellence despite geopolitical uncertainties, positioning itself favorably for future growth[90]

Revenue Performance - Total revenue decreased from HKD 6,607.8 million in the first half of 2022 to HKD 4,175.4 million in the first half of 2023, a decline of 36.8%[15] - Brand business revenue fell from HKD 4,450.1 million in the first half of 2022 to HKD 2,842.5 million in the first half of 2023, a decline of 36.1%[8] - ODM/OEM graphics card sales dropped from HKD 1,417.9 million in the first half of 2022 to HKD 563.1 million in the first half of 2023, a decrease of 60.3%[7] - Revenue in the Asia-Pacific region decreased from HKD 2,424.7 million in the first half of 2022 to HKD 1,438.8 million in the first half of 2023, a drop of 40.7%[9] - Revenue in China was HKD 939.3 million in the first half of 2023, down from HKD 1,181.1 million in the first half of 2022, a decrease of 20.5%[10] - Revenue in the NALA region fell to HKD 638.0 million, down 54.7% from HKD 1,409.6 million in the first half of 2022, primarily due to declining sales in the US and high inflation[32] - Sales in all regions dropped significantly by 20.5% to 54.7% compared to the same period last year[31] - The EMEAI region reported revenue of HKD 1,159,322 thousand, a decline of 27.2% compared to HKD 1,592,376 thousand in the previous year[107] Financial Performance - Net profit for the period was HKD 19,175,000, a significant decline of 97.6% from HKD 801,876,000 in the same period last year[62] - Gross profit for the same period was HKD 323,752,000, down 76.4% from HKD 1,365,816,000 in the previous year[62] - For the six months ended June 30, 2023, the company reported revenue of HKD 4,175,441,000, a decrease of 37% compared to HKD 6,607,825,000 for the same period in 2022[62] - The company reported a profit of HKD 20.102 million for the six months ended June 30, 2023, compared to HKD 802.129 million for the same period in 2022, indicating a significant decline in profitability[92] - The company declared an interim dividend of HKD 0.10 per share, totaling HKD 38,788,000, compared to HKD 0.80 per share and HKD 310,147,000 in the prior year[55] Cost and Expenses - The total sales cost for the six months ended June 30, 2023, was HKD 3,851,689,000, down from HKD 5,242,009,000 in the same period of 2022, representing a reduction of approximately 26.5%[163] - Employee costs for the first half of 2023 were HKD 194,008,000, significantly lower than HKD 316,581,000 in the previous year, indicating a decrease of about 38.7%[163] - Research and development expenses rose to HKD 39,340,000 in the first half of 2023, compared to HKD 29,016,000 in the same period of 2022, reflecting an increase of about 35.7%[163] Cash Flow and Liquidity - Cash and bank balances increased from HKD 2,207.3 million as of December 31, 2022, to HKD 2,231.1 million as of June 30, 2023[20] - Operating cash generated was HKD 2,196,866 thousand, significantly up from HKD 913,538 thousand in the previous year, marking an increase of 140.5%[114] - The company reported a net decrease in cash and cash equivalents of HKD 157,323 thousand, compared to a much larger decrease of HKD 1,004,143 thousand in the same period last year[114] - The cash and cash equivalents at the end of the period stood at HKD 2,034,787 thousand, down from HKD 2,738,107 thousand a year earlier[114] Liabilities and Equity - Total assets decreased to HKD 5,054,549,000 from HKD 6,155,439,000, reflecting a reduction of approximately 17.9%[64] - Current liabilities were reported at HKD 2,202,143,000, down from HKD 3,207,100,000, indicating a decrease of 31.3%[66] - The total equity attributable to owners of the company was HKD 2,768,746,000, down from HKD 2,848,806,000, a decrease of 2.8%[66] - Total borrowings as of June 30, 2023, were HKD 954,586,000, a significant decrease of 45.1% from HKD 1,738,733,000 as of December 31, 2022[196] Tax and Financing - Financing costs increased from HKD 9.4 million in the first half of 2022 to HKD 35.2 million in the first half of 2023, an increase of 274.5%[16] - Income tax expense decreased from HKD 160.2 million in the first half of 2022 to HKD 10.5 million in the first half of 2023, a reduction of 93.4%[17] - The total tax expense for the six months ended June 30, 2023, was HKD 10,540, a decrease of 93.4% compared to HKD 160,217 for the same period in 2022[141] Market Conditions and Challenges - The ongoing geopolitical tensions and economic factors are expected to impact consumer spending and corporate investment, affecting market confidence[35] - The impact of US-China trade restrictions on technology and product imports may increase product costs and ultimately affect consumer demand[35] - The company anticipates challenges in the market due to the ongoing economic downturn and geopolitical issues[36] Corporate Governance and Compliance - The company continues to comply with various social responsibility standards, including ISO9001 and ISO14001[34] - The board confirmed compliance with the corporate governance code, except for specific deviations noted in the report[58] - The company has not established an internal audit function but has engaged an external auditor to assess its risk management and internal control systems, enhancing governance and oversight[82]

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of HKD 4,175.4 million, a decrease of 36.8% compared to HKD 6,607.8 million in the same period of 2022[5]. - Gross profit for the same period was HKD 323.7 million, down 76.3% from HKD 1,365.8 million, resulting in a gross margin of 7.8%, a decline of 62.3% year-over-year[5]. - The profit attributable to the company's owners was HKD 20.1 million, a significant drop of 97.5% from HKD 802.1 million, leading to a net profit margin of 0.5%, down 95.9% from the previous year[5]. - Revenue for the six months ended June 30, 2023, was HKD 4,175,441, a decrease of 37% compared to HKD 6,607,825 for the same period in 2022[23]. - The net profit for the period was HKD 19,175, a sharp decrease from HKD 801,876 in the previous year, indicating a decline of approximately 97.6%[24]. - Basic earnings per share for the six months ended June 30, 2023, was HKD 0.052, compared to HKD 2.070 in 2022, representing a decrease of 97.5%[24]. - The total comprehensive income for the period was HKD 15,662, a significant drop from HKD 794,720 in the same period last year[23]. Revenue Breakdown - Revenue from graphics cards was HKD 3,333.9 million, a decrease of 42.4% from HKD 5,781.5 million in the previous year[21]. - Brand business revenue was HKD 2,842.6 million, down from HKD 4,450.1 million, while non-brand business revenue was HKD 1,332.9 million[22]. - Revenue from the Asia-Pacific region decreased to HKD 1,438,821,000 in 2023 from HKD 2,424,655,000 in 2022, representing a decline of 40.7%[50]. - Revenue from the NALA region decreased by 54.7% to HKD 638.0 million from HKD 1,409.6 million, primarily due to declining sales in the U.S. and currency depreciation in Latin America[76]. - Revenue in China for the first half of 2023 was HKD 939.3 million, a decrease of HKD 241.8 million or 20.5% compared to HKD 1,181.1 million in the first half of 2022, attributed to slow economic recovery and RMB depreciation[89]. - ODM/OEM revenue dropped by 38.2% to HKD 1,332.9 million from HKD 2,157.7 million year-on-year, primarily due to geopolitical and economic instability affecting consumer spending[74]. Cost and Expenses - The cost of sales for the six months ended June 30, 2023, was HKD 3,851,689,000, down from HKD 5,242,009,000 in 2022, reflecting a decrease of 26.5%[59]. - Material costs as a percentage of sales increased from 77.3% in the first half of 2022 to 89.3% in the first half of 2023, an increase of 12.0%[115]. - Operating expenses decreased by 14.3% from HKD 358.2 million in the first half of 2022 to HKD 306.8 million in the first half of 2023[115]. - Administrative expenses decreased by 29.9% from HKD 300.0 million in the first half of 2022 to HKD 210.3 million in the first half of 2023[116]. - Research and development expenses for the period were HKD 39,340,000, an increase from HKD 29,016,000 in the previous year, indicating a rise of 35.7%[59]. Assets and Liabilities - Non-current assets, including property, plant, and equipment, totaled HKD 585.6 million as of June 30, 2023, compared to HKD 596.4 million at the end of 2022[8]. - Current assets decreased to HKD 4,346.4 million from HKD 5,421.8 million, with inventory dropping to HKD 1,152.1 million from HKD 1,832.0 million[8]. - Total assets were reported at HKD 5,054.5 million, down from HKD 6,155.4 million at the end of 2022[9]. - Trade receivables decreased by HKD 423.0 million, from HKD 1,184.7 million as of December 31, 2022, to HKD 761.7 million as of June 30, 2023, a decline of 35.7% consistent with the drop in sales[155]. - Trade payables amounted to HKD 798.621 million as of June 30, 2023, down from HKD 965.382 million at the end of 2022[81]. Dividends and Shareholder Returns - The company declared a special dividend of HKD 0.25 per share for the year 2022, compared to HKD 0 for the previous year[44]. - The company plans to pay an interim dividend of HKD 0.10 per share for the six months ended June 30, 2023, compared to HKD 0.80 per share in 2022, totaling HKD 38,788,000 versus HKD 310,147,000 in the prior year[63]. - The board proposed an interim dividend of HKD 0.10 per share, totaling an estimated HKD 38.8 million, reflecting a strong cash position[132]. Inventory and Risk Management - The company adopted a more conservative approach to reduce inventory risks associated with purchasing GPUs, particularly from the previous generation product line[88]. - The group recorded a profit attributable to owners of HKD 20.1 million for the first half of 2023, a significant decrease of HKD 782 million or 97.5% from HKD 802.1 million in the same period of 2022[131]. - The company is tightening inventory control and reducing procurement, especially of older generation GPUs, to mitigate potential inventory risks[93]. - The company's sales return provision decreased from HKD 83.8 million as of December 31, 2022, to HKD 61.4 million as of June 30, 2023, representing a reduction of 26.7% due to declining sales[153]. Financing and Costs - The company reported a financing cost of HKD 35,163 for the current period, significantly higher than HKD 9,387 in the previous year[23]. - Financing costs increased significantly to HKD 35,163,000 in 2023 from HKD 9,387,000 in 2022, marking a rise of 274.5%[58]. - Income tax expense decreased by 93.4% from HKD 160.2 million in the first half of 2022 to HKD 10.5 million in the first half of 2023[118]. Employment and Corporate Governance - The company had 2,327 employees as of June 30, 2023, down from 2,714 employees as of December 31, 2022[158]. - The company has engaged an external auditor to assess its risk management and internal control systems, as it has not established an internal audit function[146]. - The board believes that combining the roles of Chairman and CEO can provide strong leadership and decisive decision-making in a competitive global business environment[168].

Financial Performance - As of December 31, 2022, trade payables amounted to HKD 965.4 million, a decrease of HKD 637.3 million or 39.8% compared to HKD 1,602.7 million as of December 31, 2021[1]. - The capital expenditure for the year 2022 was HKD 538.9 million for the acquisition of properties, plants, and equipment[4]. - The total capital commitments as of December 31, 2022, were HKD 3.8 million, with no significant contingent liabilities or off-balance sheet debts[7]. - The company did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year[8]. - There are no major investment or capital asset acquisition plans as of December 31, 2022[9]. Employee Information - The total number of employees as of December 31, 2022, was 2,714, down from 3,029 in the previous year[11]. - The company has implemented an employee stock option plan to reward contributions from executive directors and key employees[11]. - The company reported a total employee count categorized by gender, employment type, age group, and region[46]. - The employee turnover rate was detailed by gender, age group, and region[46]. - The percentage of employees trained in Dongguan was not disclosed for 2022, similar to 2021[40]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to improving its ESG reporting quality and comprehensiveness, focusing on environmental, social, and governance impacts[21]. - Key performance indicators have been quantified to assess the effectiveness of ESG policies and management systems[24]. - The company ensures balanced reporting of performance, disclosing both achievements and challenges in ESG aspects[24]. - The company maintains consistent disclosure methodologies for meaningful comparisons of ESG data over time[24]. - The company emphasized its commitment to providing a safe working environment and protecting employees from occupational hazards[46]. Corporate Governance - The company has established four board committees: audit, remuneration, nomination, and investment, each with defined terms of reference[93]. - The board consists of 10 members, including 5 executive directors, 1 non-executive director, and 4 independent non-executive directors[85]. - The company has a board diversity policy ensuring a balanced mix of gender, culture, education background, skills, and experience among board members, with 2 out of 10 directors being female[129]. - The company has adopted a nomination policy for appointing directors, ensuring candidates meet the expected personality, professional skills, and experience[125]. - The company has a remuneration committee responsible for reviewing and approving management's compensation proposals[102]. Risk Management and Compliance - The audit committee reviewed the effectiveness of the company's risk management and internal control systems, deeming them effective and sufficient[116]. - The management has committed to strict compliance with all regulatory requirements and updates[28]. - The company ensures compliance with legal and regulatory requirements through its corporate governance policies and practices[110]. - The company has not established an internal audit function but has appointed an external auditor to conduct internal audits, providing independent assessments to enhance risk management and internal controls[136]. - The company has a communication policy in place to facilitate shareholder engagement during meetings[145]. Shareholder Engagement - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting[119]. - The company emphasizes effective communication with shareholders and investors, ensuring timely access to information through various channels[167]. - The company has adopted a shareholder communication policy to ensure equal access to information for all shareholders and investors[167]. - The company’s website provides shareholders and investors with quick access to company information[146]. - The board proposed amendments to the company's articles of association to comply with listing rules and to facilitate electronic and hybrid shareholder meetings[144]. Business Strategy and Market Position - PC Partner Group Limited is a leading manufacturer of computer electronic products, primarily focusing on graphics cards, motherboards, and mini PCs[190]. - The company is focused on expanding its market presence in the Asia-Pacific region through strategic sales initiatives[180]. - The company will continue to allocate resources to seize new business opportunities in AI and the metaverse, despite a recent slowdown in the metaverse trend[200]. - High-performance hardware and powerful processors are essential for processing large amounts of machine learning data related to ChatGPT[200]. - The company has a strong commitment to research and development in new products and technologies to enhance its market position[190].

Financial Performance - For the year ended December 31, 2022, the company reported revenue of HKD 10,775.3 million, a decrease of 30.3% from HKD 15,459.1 million in 2021[7] - Gross profit for the same period was HKD 1,563.0 million, down 63.5% from HKD 4,287.2 million, resulting in a gross margin of 14.5%, a decline of 47.7% year-over-year[7] - The profit attributable to owners of the company was HKD 702.5 million, representing a 70.4% decrease from HKD 2,374.3 million in the previous year[7] - The net profit margin for 2022 was 6.5%, down 57.8% from 15.4% in 2021[7] - The company reported a net profit of HKD 702,484,000 for 2022, a decline of approximately 70.5% from HKD 2,374,320,000 in 2021[76] - The company recorded a profit attributable to owners of HKD 702.5 million in 2022, a decrease of 70.5% from HKD 2,374.3 million in 2021, primarily due to a reduction in gross profit[161] Revenue Breakdown - Revenue from the Asia-Pacific region decreased to HKD 3,733.9 million in 2022 from HKD 5,099.7 million in 2021, a decline of 26.8%[44] - Revenue from China dropped to HKD 2,000 million in 2022 from HKD 3,790.9 million in 2021, a decrease of 47.3%[44] - Revenue from the EMEAI region was HKD 2,963.2 million, a decrease of HKD 951.2 million or 24.3% compared to HKD 3,914.4 million in 2021[122] - Revenue from the NALA region decreased by HKD 575.7 million, a decline of 21.7% from HKD 2,654.1 million in 2021 to HKD 2,078.4 million in 2022[96] - Revenue from graphics cards decreased by HKD 4,575.2 million, a decline of 33.7%, from HKD 13,570.0 million in 2021 to HKD 8,994.8 million in 2022[151] - Revenue from the ODM/OEM business decreased by HKD 1,361.7 million or 26.8%, from HKD 5,089.7 million in 2021 to HKD 3,728.0 million in 2022[139] Assets and Liabilities - Total assets decreased to HKD 6,155.4 million from HKD 6,924.5 million in 2021, reflecting a decline in overall financial position[13] - Current assets fell to HKD 5,421.8 million from HKD 6,654.9 million, primarily due to a decrease in cash and bank balances[13] - The company’s cash and bank balance decreased significantly to HKD 2,207.3 million from HKD 3,765.1 million[13] - Non-current liabilities increased, with borrowings rising to HKD 1,738.7 million from HKD 702.3 million in the previous year[13] - Shareholders' equity decreased by HKD 238.6 million, or 7.7%, from HKD 3,087.4 million as of December 31, 2021, to HKD 2,848.8 million as of December 31, 2022[183] Expenses and Costs - The cost of sales for 2022 was HKD 9,212,346,000, down from HKD 11,171,893,000 in 2021, indicating a decrease of about 17.5%[71] - Administrative expenses decreased by HKD 293.4 million or 35.9%, from HKD 816.7 million in 2021 to HKD 523.3 million in 2022, primarily due to a decline in employee performance bonuses and director profit-sharing levels[132] - Operating expenses decreased by HKD 666.5 million, a decline of 49.6%, from HKD 1,344.4 million in 2021 to HKD 677.9 million in 2022[158] - Material costs as a percentage of sales increased from 70.4% in 2021 to 83.2% in 2022, an increase of 12.8%[155] Market and Operational Insights - The ongoing geopolitical tensions between the US and China may impact market confidence and consumer demand[99] - The company emphasizes the importance of talent acquisition for technology development and product innovation[98] - The company plans to continuously review human resources to attract suitable talent and maintain competitiveness in the technology sector[98] - The company plans to allocate resources to seize new business opportunities related to AI and the metaverse[148] - The company is closely monitoring market conditions and will take appropriate actions to mitigate business risks[149] Dividends and Shareholder Returns - The total dividends paid in 2022 amounted to HKD 934,318,000, which is more than double the HKD 410,267,000 paid in 2021[76] - The group plans to pay a special dividend of HKD 0.25 per share for the year ended December 31, 2022, subject to shareholder approval[87] - The group aims to maintain a higher cash flow level for future investments, foregoing any final dividend for the year[87] Compliance and Governance - The group has complied with the corporate governance code, except for specific deviations noted in the report[194] - The external auditor has confirmed that the preliminary performance figures are consistent with the audited consolidated financial statements for the year ended December 31, 2022[198]