Share Options - As of June 30, 2023, the weighted average exercise price of unexercised share options was HK0.684,withatotalof30,150,000optionsremaining[3].−Duringtheperiod,1,300,000shareoptionswereexercisedataweightedaveragesubscriptionpriceofHK0.2181, generating approximately US37,000incashbeforeexpenses[15].−Thecompanygranted5,900,000shareoptionsduringtheperiodatanaverageexercisepriceofHK0.470[3]. - The average closing price of the company's ordinary shares on the exercise date of share options was HK0.49[37].−Thecompanyhad354,297dilutiveshareoptionsoutstandingforthesixmonthsendedJune30,2023,comparedto1,283,976inthesameperiodof2022[27].−Thetotalnumberofshareoptionsgrantedduringtheyearis30,150thousandunits[200].−Thetotalnumberofshareoptionsexercisedduringtheyearis5,900thousandunits[200].−Thetotalnumberofshareoptionslapsed/forfeitedduringtheyearis1,300thousandunits[200].−ThetotalnumberofshareoptionsheldasofJune30,2023is27,150thousandunits[200].−TheexercisepricepershareforoptionsgrantedonJune22,2022isHK0.530[200]. - The exercise price per share for options granted on March 24, 2023 is HK0.546[200].−TheexercisepricepershareforoptionsgrantedonMay25,2023isHK0.463[200]. - The vesting period for options granted on June 22, 2022 is from June 22, 2022 to June 21, 2023[200]. - The exercise period for options granted on May 25, 2023 is from May 25, 2023 to May 25, 2025[200]. - The total number of share options held on June 30, 2023 is 30,150 thousand units[200]. Financial Performance - Revenue for the six months ended June 30, 2023, was US85.3million,adecreaseof21.4108.5 million in the same period of 2022[63]. - Gross profit for the same period was US27.9million,down33.842.2 million year-over-year[63]. - Profit attributable to owners of the parent was US13.2million,reflectingadeclineof39.521.8 million in the prior year[63]. - Earnings per share decreased to 0.53 US cents, a drop of 39.1% compared to 0.87 US cents in the previous year[63]. - Profit before tax decreased to 13,165,000,adeclineof39.521,771,000 in the previous year[66]. - Profit for the period was 13,165,000,comparedto21,758,000 in the same period last year, representing a decrease of 39.5%[67]. - Total comprehensive income for the period was 10,731,000,downfrom21,871,000, a decrease of 51.0%[67]. - The profit for the period ending June 30, 2023, is reported at US13.165million,comparedtoUS21.760 million for the same period in 2022, indicating a decrease of approximately 39.5%[97]. Assets and Liabilities - Total assets increased to US160.2million,aslightriseof1.2158.3 million at the end of 2022[62]. - Shareholders' funds rose to US120.2million,markinga10.1109.2 million at the end of 2022[62]. - Cash and cash equivalents at the end of the period were US70.874million,upfromUS46.420 million in the previous year[54]. - Total current assets increased to 151,435,000from146,126,000, reflecting a growth of 3.5%[69]. - Net current assets rose to 111,800,000,comparedto97,739,000, indicating an increase of 14.3%[69]. - Total assets less current liabilities amounted to 120,575,000,upfrom109,876,000, a growth of 9.5%[69]. - The total liabilities related to contracts decreased from US6,346,000attheendof2022toUS5,773,000 as of June 30, 2023[9]. - Trade payables as of June 30, 2023, amounted to US13,935,000,adecreasefromUS15,807,000 as of December 31, 2022[9]. - The ageing analysis of trade payables showed that 1-30 days overdue payables were US7,715,000,whilethoseoverdueby61−90dayswereUS1,311,000[13]. - Trade receivables as of June 30, 2023, amounted to US17,678,000,downfromUS19,227,000 as of December 31, 2022, reflecting a decrease of approximately 8.06%[33]. - The impairment provision for trade receivables was US173,000asofJune30,2023,slightlyimprovedfromUS214,000 in the previous year[33]. - The company reported a reversal of impairment losses of US41,000duringtheperiod[7].Dividends−NointerimdividendwasdeclaredforthesixmonthsendedJune30,2023,consistentwiththepreviousyear[30].−ThecompanydoesnotrecommendthepaymentofaninterimdividendforthesixmonthsendedJune30,2023[64].−ThecompanydidnotdeclareorpayanydividendsfortheyearendedDecember31,2022[28].MarketPerformance−SalesinHongKongandMainlandChinaamountedtoUS46,427,000, down from US62,675,000,reflectingadeclineof269,899,000 from US18,734,000[132].−SalesinJapanincreasedby31.111,968,000 compared to US9,092,000inthepreviousyear[132].−TheGroup′ssalesinEuroperoseby65.512,600,000 from US7,618,000[132].−RevenuefromnewdisplayICswasUS39,847,000, down from US49,731,000inthepreviousyear,representingadeclineof19.032,566,000 in sales, accounting for over 10% of the Group's total revenue, compared to US$43,146,000 from the largest customer in the same period last year[159]. Financial Management - The current ratio improved to 3.82 from 3.02, indicating better short-term financial stability[44]. - The debt to equity ratio remained low at 0.00, down from 0.013, reflecting a strong equity position[44]. - The fair value of financial instruments approximates their carrying amounts due to their short-term nature, indicating effective liquidity management[94]. - The Group's cash and cash equivalents, along with other financial assets, have been assessed to have fair values closely aligned with their carrying amounts, ensuring stability in financial reporting[94]. - The Group has not identified any significant impact on its financial position or performance due to the recent accounting policy changes[88]. - The Group did not make any provision for Hong Kong profits tax due to available tax losses from prior years[179]. Operational Insights - The company specializes in the design, development, and sales of integrated circuits for various display applications, indicating ongoing focus on innovation and market expansion[74]. - The Group has maintained a single operating segment focused on the design, development, and sales of proprietary IC products and system solutions[148]. - The Group's operating segments are assessed by the Executive Director and senior management to allocate resources effectively[126]. - The Group has applied amendments to HKAS 1 and HKAS 12 since January 1, 2023, which are expected to impact annual consolidated financial statements but did not affect interim financial information[111][115]. - The Group has adopted new and revised HKFRSs, including HKFRS 17 for insurance contracts, which may impact future financial reporting[108].
