Business Overview - The Group has nearly 30 years of experience in providing customized interconnect solutions and has expanded its business scale continuously in 2020 and 2021, covering digital cable and automotive wire harness sectors [3]. - The Group manufactures a wide variety of copper and optical fiber cable assemblies and digital cable products tailored to individual customer specifications, serving established PRC and international clients across various sectors [3]. - The Group aims to become a Tier-1 supplier of cable products and high-performance interconnect products in the 5G telecommunications, data communication, healthcare, transport, and industrial sectors [6]. - The Group's business model is based on Contract Manufacturing Services (CMS), producing made-to-order cable products upon receipt of customer orders [4]. - The Group has established long-term and stable business relationships with market leaders, enhancing its competitive strength in the interconnect market [7]. - The Group's headquarters is located in Hong Kong, with manufacturing facilities in Shanghai, Suzhou, and Huizhou, PRC [3]. - The Group's vision is to be recognized as a "Preferred Supplier" capable of delivering world-class quality products and services consistently [5]. - The Group's management team possesses extensive market knowledge, contributing to its competitive advantages in the industry [7]. Financial Performance - Revenue for the six months ended 30 September 2021 was HK$1,740.5 million, representing a 20.7% increase from HK$1,441.7 million in the same period last year [11]. - Gross profit for the same period was HK$308.4 million, a slight increase of 1.5% compared to HK$303.8 million in the previous year [11]. - Adjusted total profit for the period was HK$114.9 million, down 14.8% from HK$134.8 million in the prior year [11]. - Basic earnings per share (adjusted) decreased to 6.2 Hong Kong cents, a decline of 15.1% from 7.3 Hong Kong cents in the same period last year [11]. - The gross profit margin decreased to 17.7%, down 3.4 percentage points from 21.1% in the previous year [11]. - Operating profit for the Reporting Period was HK$157.8 million, a decrease of HK$32.4 million or 17.0% from HK$190.2 million for the same period last year, with the operating profit margin dropping to 9.1% [16]. - The Group's net profit margin for the Reporting Period was 6.6%, down from 9.4% in the previous year [16]. - Total operating expenses for the Reporting Period were HK$1,582.7 million, representing 90.9% of revenue, an increase from 86.8% in the previous year [16]. Market and Sector Performance - Data centre sector revenue increased by HK$7.1 million or 1.9% to HK$375.0 million compared to HK$367.9 million in the same period last year, maintaining the highest revenue sector in the cable assembly business [19]. - Telecommunication sector revenue declined by HK$25.8 million or 8.4% to HK$282.9 million from HK$308.7 million in the same period last year, although profit margins improved due to stable 5G product orders [20]. - Medical equipment sector revenue rose by HK$32.5 million or 34.8% to HK$126.0 million from HK$93.5 million in the same period last year, driven by increased orders for medical equipment cables [21]. - Industrial equipment sector revenue increased by HK$21.8 million or 57.5% to HK$59.7 million from HK$37.9 million in the same period last year, supported by economic recovery measures [21]. - Automotive sector generated HK$12.1 million in revenue for one month following the acquisition of automotive wire harness business, enhancing the company's investment portfolio [22]. - Networking cable revenue increased by HK$271.7 million or 47.8% to HK$839.8 million from HK$568.1 million in the same period last year, with price adjustments linked to copper price fluctuations [24]. - Specialty cable revenue decreased by HK$20.6 million or 31.4% to HK$45.0 million from HK$65.6 million in the same period last year, with a significant drop when excluding copper price impacts [25]. Acquisitions and Strategic Developments - The Group completed the acquisition of automotive wire harness manufacturing and sales business for a final consideration of HK$69.0 million, enhancing its income sources and long-term development potential [14]. - The Group has restructured its "Networking Cables Business Unit" into "Digital Cable Business Unit," subdividing it into "Networking Cable Sector" and "Specialty Cable Sector" to align with its strategy of accelerating specialty cable development [14]. - The successful acquisition of GPIM Group provides an opportunity to expand and diversify the Group's business and investment portfolio, enhancing income sources and long-term development potential [43]. - The acquisition of Linkz Cables Limited has created synergy by integrating R&D resources, enabling the production of reliable and high-quality smart car products [44]. Financial Position and Capital Management - As of September 30, 2021, shareholders' funds increased by HK$77.8 million or 9.1% to approximately HK$930.3 million from HK$852.5 million as of March 31, 2021 [46]. - The Group's bank balances and cash rose by 41.1% to HK$220.9 million as of September 30, 2021, compared to HK$156.6 million as of March 31, 2021 [46]. - The Group's bank loan increased by HK$115.4 million or 11.4% to HK$1,127.6 million as of September 30, 2021, primarily due to a new bank loan of HK$50 million for the acquisition of automotive wire harness business [46]. - Capital expenditure for the reporting period amounted to HK$39.7 million, funded entirely from internal resources [46]. - The Group's gearing ratio was 119.6% as of September 30, 2021, compared to 117.1% as of March 31, 2021 [47]. - The Group monitors foreign exchange risk exposure and enters into forward foreign exchange contracts to mitigate this risk [49]. - The Group maintains a prudent financial management policy and does not engage in high-risk speculative activities [50]. Corporate Governance and Compliance - The Company has fully complied with the Corporate Governance Code during the six months ended 30 September 2021 [84]. - The Audit Committee, established on 24 January 2018, is responsible for reviewing financial information, internal control procedures, and risk management systems [84]. - All Directors have fully complied with the required standards set out in the Model Code during the six months ended 30 September 2021 [85]. - The Company has established a framework for effective management and enhancing shareholders' value through good corporate governance practices [84]. Shareholder Information - The Group's issued share capital was HK$18.4 million with 1,840,432,000 ordinary shares as of September 30, 2021 [48]. - The company declared an interim dividend of HK1 cent per share, totaling approximately HK$18.4 million [37]. - The interim dividend is expected to be paid on or before January 7, 2022 [86]. - As of September 30, 2021, Mr. Lo Chung Wai Paul held 1,380,000,000 shares, representing approximately 74.98% interest in the Company [57]. Future Outlook - The global economy is expected to grow by 4.9% in 2022, with Asian emerging markets growing by 6.4% [38]. - The demand for cable assembly products is expected to increase due to the large-scale replacement of 5G devices and equipment in the coming years [39]. - The growth of cloud technology is anticipated to drive the development of data centers, benefiting the company's business [40]. - The medical equipment sector is expected to maintain dynamic growth, with continued demand for medical cables [41]. - The Group expects demand for sales orders in the industrial equipment sector to gradually increase in the coming year [43].

Company Overview - The Group has over 20 years of experience in providing customized interconnect solutions, with manufacturing facilities located in Shanghai, Suzhou, and Huizhou, PRC[5]. - The Group's product offerings include a wide variety of copper and optical fiber cable assemblies and networking cables, tailored to individual customer specifications[5]. - The Group serves established PRC and international customers across various market sectors, including telecommunications and medical equipment[5]. Strategic Goals - The Group aims to become a Tier-1 supplier in the 5G telecommunications, data communication, healthcare, transport, and industrial sectors[8]. - The Group's strategic focus includes expanding its market presence and enhancing product offerings in high-performance interconnect products[8]. - The Group's vision is to be recognized as a "Preferred Supplier" capable of delivering world-class quality products and services consistently[7]. Financial Performance - Revenue for the year ended 31 March 2021 was HK$3,008.0 million, an increase of 8.2% from HK$2,780.2 million in 2020[12]. - Adjusted total profit for the year was HK$230.8 million, reflecting a 32.9% increase from HK$173.6 million in the previous year[12]. - Basic earnings per share (adjusted) rose to 12.5 Hong Kong cents, up 33.0% from 9.4 Hong Kong cents in 2020[12]. - Cash generated from operations decreased significantly by 68.5% to HK$189.8 million from HK$601.9 million[12]. - The gross profit margin improved to 19.3%, up 1.3 percentage points from 18.0% in the previous year[12]. - The net profit margin (adjusted) increased to 7.7%, a rise of 1.5 percentage points from 6.2%[12]. - The return on shareholders' funds surged to 26.6%, an increase of 13.3 percentage points from 13.3%[12]. Acquisitions and Growth - The acquisition of Linkz Cables Limited was completed on 30 June 2020, aimed at expanding the income base and leveraging opportunities in 5G technology[14]. - The acquisition of the Target Group, a leading networking cables manufacturer in China, was completed on June 30, 2020, significantly enlarging the Group's revenue base and diversifying its customer base[24]. - The Group's acquisition of the Target Group allowed for an increased product mix and accelerated development of new products such as high-speed and hybrid cables[36]. Market Demand and Trends - The demand for medical cables is expected to remain strong due to ongoing COVID-19 impacts, positively affecting the Group's financial performance[16]. - The Group anticipates continued growth in the medical equipment sector, driven by ongoing demand for medical cables[54]. - Orders for new 5G products in the telecommunication sector have gradually increased, improving profit margins[36]. Research and Development - The company is focusing on enhancing research and development capabilities to broaden its product mix and maintain sustainable growth[14]. - The Group continues to enhance its research and development capabilities to optimize its product portfolio and capitalize on opportunities presented by 5G technology[23]. - Research and development expenses increased by HK$20.0 million or 29.2% to HK$88.4 million in FY2021, with R&D expenses as a percentage of revenue rising from 2.5% to 2.9%[38]. Corporate Governance - The Group is committed to maintaining high standards of corporate governance and compliance, as outlined in its governance reports[4]. - The Company has adopted the Model Code for securities transactions by Directors, with full compliance reported[165]. - The Company emphasizes good corporate governance as essential for effective management and enhancing shareholder value[163]. Environmental and Sustainability Initiatives - The Group is committed to becoming a benchmark enterprise in "green manufacturing" and digital production, contributing to the construction of 5G+ smart factories in the region[26][28]. - The company has implemented various environmental and sustainability measures, such as using LED lighting and heat recovery systems in its facilities[86]. - The Group is committed to reducing carbon emissions and has implemented various sustainability initiatives, such as using LED lighting and adopting heat recovery systems[83]. Stakeholder Engagement - The company emphasizes stakeholder engagement as a crucial tool for identifying significant environmental, social, and governance (ESG) issues, which aids in developing effective policies for sustainable growth[199]. - Engagement methods with customers include emails, direct dialogues, customer visits, and annual business reviews, ensuring effective communication and support[200]. - The Group's internal stakeholders include employees and management, while external stakeholders encompass customers, suppliers, and community groups[198]. Employee and Management Overview - The Group's final dividend is proposed at HK$1.5 per share, totaling approximately HK$27.6 million, consistent with the previous year's dividend[107]. - The total employee benefit expenses for FY2021 were approximately HK$388.9 million, compared to approximately HK$340.4 million in the previous financial year[78]. - The executive team includes experienced individuals, such as the CEO with extensive experience in the electronics industry since the 1980s[89]. Risk Management - The Company has established risk management procedures aimed at providing reasonable assurance against material errors, losses, or fraud[190]. - Risk identification and assessment are performed or updated annually, with results documented in the Risk Registry for Board and Management reviews[190]. - The Group has a policy on the disclosure of inside information to prevent breaches of statutory disclosure requirements[191].

Financial Performance - Revenue for the six months ended September 30, 2020, was HK$1,441.7 million, a decrease of 5.4% compared to HK$1,523.9 million in 2019[9]. - Gross profit increased by 8.0% to HK$303.8 million from HK$281.4 million in the previous year[9]. - Adjusted total profit for the period rose by 27.5% to HK$134.8 million, compared to HK$105.7 million in 2019[9]. - Basic earnings per share (adjusted) increased by 28.1% to 7.3 Hong Kong cents, up from 5.7 Hong Kong cents in the prior year[9]. - Gross profit margin improved to 21.1%, an increase of 2.6 percentage points from 18.5%[9]. - Adjusted net profit margin reached 9.4%, up from 6.9% in the previous year, reflecting a 2.5 percentage point increase[9]. - EBITDA as a percentage of revenue (adjusted) was 15.2%, compared to 13.0% in the previous year, marking a 2.2 percentage point increase[9]. - Operating profit for the Reporting Period was HK$190.2 million, an increase of HK$24.8 million or 15.0%, with an operating profit margin improved to 13.2%[13]. - Profit for the period was HK$130.7 million, resulting in a net profit margin of 9.1%, compared to 6.6% in the previous year[13]. - Total profit for the Reporting Period was HK$130.7 million, an increase of HK$30.7 million or 30.7% compared to HK$100.0 million for the same period last year, with a net profit margin of 9.4%[22]. Revenue Breakdown - Data centre sector revenue decreased by HK$28.6 million or 7.2% to HK$367.9 million compared to HK$396.5 million in the same period last year[16]. - Telecommunication sector revenue declined by HK$4.3 million or 1.4% to HK$308.7 million from HK$313.0 million year-on-year[17]. - Medical equipment sector revenue increased by HK$28.1 million or 43.0% to HK$93.5 million compared to HK$65.4 million in the same period last year[17]. - Industrial equipment sector revenue rose by HK$11.0 million or 40.9% to HK$37.9 million from HK$26.9 million (restated) year-on-year[17]. - Networking cables revenue decreased by HK$88.4 million or 12.2% to HK$633.7 million compared to HK$722.1 million (restated) in the same period last year[17]. Strategic Initiatives - The company aims to become a Tier-1 supplier in the 5G telecommunications and data communication sectors[5]. - The Group established a "Strategic Business Development Task Force" on 1 September 2020 to formulate long-term business strategies and accelerate market development[11]. - The Group is focused on improving its research and development capabilities and optimizing its product mix to enhance competitiveness[11]. - The Group aims to leverage opportunities presented by next-generation 5G network technology[11]. - The acquisition of Linkz Cables Limited significantly enlarges the Group's revenue base and diversifies its customer base, mitigating customer concentration risk[12]. Operational Efficiency - More than 130 indirect personnel were transferred to the production front line, improving overall production efficiency without increasing headcount[11]. - The Group has hired doctoral consultants to enhance its internal technology and product development capabilities[11]. - The Group's operating expenses decreased, contributing to the increase in operating profit margin[13]. Acquisitions and Investments - The Company completed the acquisition of the networking cables business for HK$781.0 million, with related expenses of approximately HK$4.2 million for the Reporting Period[21]. - The acquisition of the networking cables business for HK$781.0 million is expected to significantly enlarge the revenue base and mitigate customer concentration risk[24]. - The Group plans to invest approximately HK$96.1 million for production capacity expansion, including HK$88.6 million for a new production facility and HK$7.5 million for related machinery[39]. Shareholder Information - The company declared an interim dividend of HK1.5 cents per share, totaling approximately HK$27.6 million[25]. - As of September 30, 2020, shareholders' funds decreased by HK$441.6 million or 38.1% to approximately HK$716.4 million from HK$1,158.0 million as of March 31, 2020, primarily due to the acquisition of networking cables business[27]. - The Group's bank balances and cash decreased by 57.7% to HK$155.2 million as of September 30, 2020, compared to HK$366.9 million as of March 31, 2020, mainly due to the payment for the acquisition and dividend distribution[27]. Taxation and Financial Position - The effective tax rate decreased from 19.9% to 16.7% during the Reporting Period[22]. - The Group's profit before taxation was HK$156.9 million, with an effective tax rate of 16.7%[13]. - The current tax charge included HK$9,384,000 for Hong Kong Profits Tax and HK$16,614,000 for PRC Enterprise Income Tax, totaling HK$25,998,000[138]. Corporate Governance - The Company has adopted a share option scheme on January 24, 2018, and further granted share options to senior management on August 7, 2020[63]. - The Company has fully complied with the Corporate Governance Code during the six months ended September 30, 2020[64]. - The Audit Committee was established on January 24, 2018, with Mr. Chan Chung Shun Eric as the chairman[65]. Risk Management - The Group's management actively monitors foreign exchange risk exposure and employs forward foreign exchange contracts to mitigate potential impacts[30]. - The Company emphasizes the importance of internal control procedures and risk management systems as part of its governance framework[70].

ai159462101137_Time Interconnect 2019-20 cover 10mm output.pdf 1 13/7/2020 下午2:16 Annual Report 2020 匯聚科技有限公司TIME INTERCONNECT TECHNOLOGY LIMITED C017167 年度報告 (於開曼群島註冊成立之有限公司) (Incorporated in the Cayman Islands with limited liability) 股份代號 Stock Code: 1729 年度報告 Annual Report 2020 CONTENTS 目錄 Group Profile 集團簡介 2 Corporate Information 公司資料 3 Financial Highlights 財務摘要 4 Chairman's Statement 主席報告 5 Management Discussion and Analysis 管理層討論及分析 8 董事及高級管理層履歷詳情 25 Biographical Details of The Directors and Senior M ...

匯 聚 科 技 有 限 公 司 TIME Interconnect Technology Limited ( 於 開 曼 群 島 註 冊 成 立 之 有 限 公 司 ) (Incorporated in the Cayman Islands with limited liability) 中 期 報 告 Interim Report 2019/2020 | --- | --- | --- | |----------|-------|-----------------------------------------------------------------------------------------------------------------| | | | | | CONTENTS | 2 | Corporate Information 公司資料 | | 目錄 | 5 | Financial and Statistical Highlights 財務及統計摘要 | | | 6 | Management Discussion and Analysis 管理層討論及分析 | | | 20 | Othe ...