Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Perfect Optronics Limited

圓美光電有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 8311)

ANNUAL RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2025

CHARACTERISTICS OF GEM ("GEM") OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE")

GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration.

Given that the companies listed on GEM are generally small and mid-sized companies, there is a risk that securities traded on GEM may be more susceptible to high market volatility than securities traded on the Main Board of the Stock Exchange and no assurance is given that there will be a liquid market in the securities traded on GEM.

This announcement, for which the directors (the "Directors") of Perfect Optronics Limited (the "Company") collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited (the "GEM Listing Rules") for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

RESULTS

The board of directors of the Company (the "Board") announces the audited consolidated results of the Company and its subsidiaries (collectively, the "Group") for the year ended 31 December 2025 (the "Year"), together with the comparative figures for the previous year as follows:

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 December 2025

	Note	2025 HK$'000	2024 HK$'000
Revenue	4	104,163	92,605
Cost of sales		(87,236)	(81,951)
Gross profit		16,927	10,654
Other gains/(losses), net	5	881	(18,818)
Distribution and selling expenses		(9,479)	(12,533)
General and administrative expenses		(20,765)	(21,557)
Research and development expenses		(792)	(1,227)
Operating loss		(13,228)	(43,481)
Finance income		27	104
Finance costs		(113)	(229)
Finance costs, net		(86)	(125)
Loss before income tax	6	(13,314)	(43,606)
Income tax expense	7	(19)	(35)
Loss for the year		(13,333)	(43,641)
Other comprehensive (loss)/income:
Item that may be subsequently reclassified to income statement
Currency translation differences		(277)	316
Items that will not be subsequently reclassified to income statement
Change in value of financial asset at fair value through other comprehensive income		(1,233)	(132)
Currency translation differences		(121)	91
Total comprehensive loss for the year		(14,964)	(43,366)
Loss for the year attributable to:
Equity holders of the Company		(12,492)	(42,906)
Non-controlling interests		(841)	(735)
		(13,333)	(43,641)
Total comprehensive loss for the year attributable to:
Equity holders of the Company		(14,002)	(42,722)
Non-controlling interests		(962)	(644)
		(14,964)	(43,366)
Loss per share for loss attributable to equity holders of the Company for the year
Basic and diluted (expressed in HK cents per share)	8	(0.84)	(2.89)

As at 31 December 2025

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	Note	2025	2024
		HK$'000	HK$'000
Assets
Non-current assets
Property, plant and equipment		475	688
Right-of-use assets		—	—
Intangible assets		5,322	5,322
Financial asset at fair value through other comprehensive income		135	1,368
		5,932	7,378
Current assets
Inventories		4,369	5,060
Trade receivables, prepayments and other receivables	10	5,836	4,871
Financial asset at fair value through profit or loss	11	9,911	16,641
Cash and cash equivalents		18,244	24,407
		38,360	50,979
Total assets		44,292	58,357
Equity and liabilities
Equity attributable to equity holders of the Company
Share capital	12	14,837	14,837
Reserves		114,892	116,402
Accumulated losses		(94,158)	(81,666)
		35,571	49,573
Non-controlling interests		(5,125)	(4,163)
Total equity		30,446	45,410
Liabilities
Non-current liabilities
Bank loan		2,297	3,066
Lease liabilities		—	16
Deferred income tax liabilities		22	3
		2,319	3,085
Current liabilities
Trade and other payables	13	10,742	8,250
Bank loan		769	743
Lease liabilities		16	869
		11,527	9,862
Total liabilities		13,846	12,947
Total equity and liabilities		44,292	58,357

Notes:

1. GENERAL INFORMATION

The Company was incorporated in the Cayman Islands on 13 June 2013, as an exempted company with limited liability under the Companies Law (as Revised) of the Cayman Islands. The address of its registered office is Windward 3, Regatta Office Park, PO Box 1350, Grand Cayman KY1-1108, Cayman Islands. The Company's shares are listed on the GEM.

The Company is an investment holding company and the Group is principally engaged in trading, development and sale of display and optics products and other related electronic components, as well as trading of health-related products and other products.

These consolidated financial statements are presented in Hong Kong dollars ("HK$"), unless otherwise stated.

2. BASIS OF PREPARATION

The consolidated financial statements of the Group have been prepared in accordance with HKFRS Accounting Standards as issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of the Hong Kong Companies Ordinance Cap. 622.

HKFRS Accounting Standards comprise the following authoritative literature:

Hong Kong Financial Reporting Standards;
Hong Kong Accounting Standards; and
Interpretations developed by the Hong Kong Institute of Certified Public Accountants.

The consolidated financial statements have been prepared on a historical cost basis, except for financial asset at fair value through other comprehensive income ("FVOCI") and financial asset at fair value through profit or loss ("FVTPL") which have been measured at fair value.

(a) Going concern basis

For the year ended 31 December 2025, the Group recorded a loss for the year of HK$13,333,000 (2024: HK$43,641,000) and had a net cash outflow from operating activities of HK$11,833,000 (2024: HK$18,014,000). As at 31 December 2025, the Group's net current assets position was HK$26,833,000 (2024: HK$41,117,000) with only cash and cash equivalents of HK$18,244,000 (2024: HK$24,407,000). The Group experienced recurring losses and multiple challenges from frequent changes in market demands and external macro-environment which pose negative impact on the Group's sales performance.

The above conditions indicate the existence of a material uncertainty which may cast significant doubt about the ability of the Group to continue as a going concern. The Board has assessed the appropriateness of adopting the going concern basis for the preparation of the consolidated financial statements for the year ended 31 December 2025. In order to improve the Group's liquidity and financial position, the Group has been implementing various measures as follows:

(i) the Group will continue to dispose of its financial asset at FVTPL with a carrying amount of HK$9,911,000 as at 31 December 2025 within a certain period;

(ii) the Group will continue to take initiatives to implement cost control measures, including adjusting human resources;

(iii) the Group will continue to implement plans and measures to improve the sales of the Group so as to generate operating cash inflow; and

(iv) the Group will continue its efforts to implement measures to strengthen its operating cash flows and working capital position, including not commencing any significant capital expenditure programmes in the near term.

The Board has reviewed the Group’s cashflow forecast prepared by management which covers a period of not less than twelve months from 31 December 2025. The Board, after making due enquiries and considering the basis of management’s cashflow forecast described above and after taking into account the reasonably possible changes in the operation performance of the Group, believes there will be sufficient financial resources available to the Group for at least twelve months after 31 December 2025 to meet its financial obligations as and when they fall due. Accordingly, the Board considers that it is appropriate to prepare the consolidated financial statements on a going concern basis.

Notwithstanding the above, a material uncertainty exists as to whether management of the Group is able to achieve its plans and measures as described above. Whether the Group will be able to continue as a going concern would depend upon the Group’s ability to generate adequate cash flows through achieving the below plans and measures:

(i) Successful disposal of its financial asset at FVTPL within a certain period and at a reasonable price to generate the cash flow as planned;

(ii) Successful implementation of the plans and measures to improve the sales of the Group so as to generate operating cash inflow; and

(iii) Successful implementation of measures to control operating costs and not commencing any significant capital expenditure programmes in the near term, so as to improve the Group’s cash flow position.

Should the Group be unable to continue as a going concern, adjustments would have to be made to write down the carrying values of the Group’s assets to their recoverable amounts, to provide for any further liabilities which might arise, and to reclassify non-current assets and non-current liabilities as current assets and current liabilities, respectively. The effects of these adjustments have not been reflected in the consolidated financial statements.

(b) New and amended standards adopted by the Group

The Group has applied the following amendment to standards for the first time for its annual reporting period commencing 1 January 2025:

Lack of Exchangeability — amendments to HKAS 21 and HKFRS 1

The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.

Certain new accounting standards and amendments to accounting standards have been published that are not mandatory for 31 December 2025 reporting periods and have not been early adopted by the Group:

Classification and Measurement of Financial Instruments — Amendments to HKFRS 9 and HKFRS 7(1)

Annual Improvements to HKFRS Accounting Standards — Volume 11 — HKFRS 1, HKFRS 7, HKFRS 9, HKFRS 10 and HKAS 7(1)

Contracts Referencing Nature-dependent Electricity — Amendments to HKFRS 9 and HKFRS 7(1)

Presentation and Disclosure in Financial Statements — HKFRS 18(2)

Subsidiaries without Public Accountability: Disclosures — HKFRS 19(2)

Hong Kong Interpretation 5 Presentation of Financial Statements — Classification by the Borrower of a Term Loan that Contains a Repayment on Demand Clause — Amendments to HK Int 5(2)

Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures — Amendments to HKFRS 10 and HKAS 28(3)

(1) Effective for annual periods beginning on or after 1 January 2026
(2) Effective for annual periods beginning on or after 1 January 2027
(3) Effective date is to be determined

The directors have performed assessment on the new and amended standards and interpretation, and has concluded on a preliminary basis that these new and amended standards and interpretation would not have a significant impact on the Group's consolidated financial statements when they become effective, except for HKFRS 18 which will impact the presentation of profit and loss. The Group is still in the process of evaluating the impact of adoption of HKFRS 18.

SEGMENT INFORMATION

Information reported to board of directors of the Company, being the chief operating decision-maker, for the purposes of resource allocation and assessment focuses on the revenue analysis by products.

Other than the Group's results and financial position as a whole, no other discrete financial information is provided for the assessment of different business activities. Accordingly, only entity-wide disclosures, major customers and geographic information are presented.

(a) The Group's revenues from its major products for the years ended 31 December 2025 and 2024 are as follows:

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Thin film transistor liquid crystal display (“TFT-LCD”) panels and modules | 82,493 | 40,161 |
| Health-related products | 12,952 | 12,799 |
| Electronic signage | 6,439 | 12,997 |
| Optics products | 115 | 25,594 |
| Others | 2,164 | 1,054 |
| | 104,163 | 92,605 |

(b) Segment revenue by customers' geographical location

The amount of the Group's revenue from external customers by locations where the Group's products are delivered to its customers is shown in the table below.

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Hong Kong | 100,259 | 83,607 |
| Taiwan | 3,001 | 3,747 |
| Mainland China | 903 | 5,251 |
| | 104,163 | 92,605 |

(c) Revenues from major customers who have individually contributed 10% or more of the total revenue for the years ended 31 December 2025 and 2024 are disclosed as follow:

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Customer A | 42,877 | — |
| Customer B | 29,467 | 2,071 |
| Customer C | — | 24,610 |

(d) An analysis of the Group's non-current assets (other than financial and deferred income tax assets) by location of assets is as follows:

| | Hong Kong
HK$'000 | Mainland
China
HK$'000 | Taiwan
HK$'000 | Total
HK$'000 |
| --- | --- | --- | --- | --- |
| As at 31 December 2025 | | | | |
| Non-current assets | | | | |
| Property, plant and equipment | 415 | 8 | 52 | 475 |
| Intangible assets | 4,200 | 1,122 | — | 5,322 |
| | 4,615 | 1,130 | 52 | 5,797 |
| As at 31 December 2024 | | | | |
| Non-current assets | | | | |
| Property, plant and equipment | 539 | 4 | 145 | 688 |
| Intangible assets | 4,200 | 1,122 | — | 5,322 |
| | 4,739 | 1,126 | 145 | 6,010 |

REVENUE

Revenue represents the sales of display products, optics products and related electronic components, health-related products and other products to external parties.

5. OTHER GAINS/(LOSSES), NET

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Fair value changes in financial asset at FVTPL (Note) | 189 | (19,207) |
| Government subsidies | 309 | 684 |
| Net exchange gains/(losses) | 178 | (257) |
| Gain on disposal of property, plant and equipment | 90 | — |
| Others | 115 | (38) |
| | 881 | (18,818) |

Note: During the year ended 31 December 2025, the Group disposed of 7,515,000 Mobvoi Shares (the "Disposed Shares") through the open market for aggregate cash consideration of HK$6,919,000 (the "Disposals"). Based on the carrying amount of the Disposed Shares as at 31 December 2024 and the net proceeds from the Disposals after deducting broker's commission, stamp duty and various levies of HK$12,000, the Disposed Shares contributed a net gain of HK$1,947,000 for the year. This gain was partly offset by a fair value loss of HK$1,770,000 on the remaining Mobvoi Shares held by the Group as at 31 December 2025.

6. LOSS BEFORE INCOME TAX

The Group's loss before income tax is arrived at after charging/(crediting):

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Cost of inventories sold | 85,482 | 79,778 |
| Provision/(reversal of provision) for obsolete inventories | 401 | (122) |
| Depreciation of property, plant and equipment | 227 | 151 |
| Depreciation of right-of-use assets | — | 122 |
| Provision for impairment of right-of-use assets | — | 387 |

7. INCOME TAX EXPENSE

Taxation on profits has been calculated on the estimated assessable profits for the year at the applicable rates of taxation prevailing in the countries/places in which the Group operates, based on existing legislation, interpretations and practices in respect thereof.

The amount of income tax charged to profit or loss represents:

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Current income tax
— Over-provision of prior year's Hong Kong profits tax | — | (37) |
| Deferred income tax | 19 | 72 |
| Income tax expense | 19 | 35 |

8. BASIC AND DILUTED LOSS PER SHARE

Basic loss per share for the year is calculated by dividing the loss attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the year.

	2025	2024
Loss attributable to equity holders of the Company (HK$'000)	(12,492)	(42,906)
Weighted average number of ordinary shares in issue (thousands)	1,483,687	1,483,687
Basic and diluted loss per share (HK cents per share)	(0.84)	(2.89)

For the purpose of determining the diluted loss per share amount, no adjustment has been made to the basic loss per share amount for the years ended 31 December 2025 and 2024 as the Group had no potentially dilutive ordinary shares in issue during these years.

9. DIVIDEND

The Board did not declare any dividend for the Year (2024: Nil).

10. TRADE RECEIVABLES, PREPAYMENTS AND OTHER RECEIVABLES

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Trade receivables | 1,665 | 1,764 |
| Prepayments | 1,850 | 1,244 |
| Deposits | 1,030 | 1,239 |
| Other receivables | 1,291 | 624 |
| | 5,836 | 4,871 |

The Group generally grants credit periods of 30 to 90 days. The ageing analysis of trade receivables based on invoice date is as follows:

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| 0-30 days | 487 | 1,077 |
| 31-60 days | 514 | 423 |
| 61-90 days | 275 | 48 |
| Over 90 days | 389 | 216 |
| | 1,665 | 1,764 |

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11. FINANCIAL ASSET AT FAIR VALUE THROUGH PROFIT OR LOSS

The balance of the Group's financial asset at FVTPL as at 31 December 2025 comprised the Group's holding of 17,698,220 (2024: 25,213,220) ordinary shares ("Mobvoi Shares") of Mobvoi Inc. ("Mobvoi"), a company principally engaged in the rendering of artificial intelligence software solutions and sale of smart devices to enterprise and individual customers. The Group's shareholding proportion in Mobvoi was approximately 1.14% as at 31 December 2025 (2024: 1.66%). The balance was denominated in HK$. No dividend has been received by the Group from Mobvoi since its investment. Depending on the prevailing market conditions, the Group may from time to time dispose of up to all of the Mobvoi Shares held. The Mobvoi Shares held by the Group have therefore been classified as current assets.

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Balance at 1 January | 16,641 | 35,848 |
| Disposals | (6,919) | — |
| Fair value changes recognised in other gains/(losses), net | 189 | (19,207) |
| Balance at 31 December | 9,911 | 16,641 |

12. SHARE CAPITAL

	31 December 2025 and 2024
	Number of shares (thousands)	Amount
HK$'000
Authorised:
Ordinary shares of HK$0.01 each	5,000,000	50,000
	Number of shares	Ordinary shares of HK$0.01 each
HK$'000
Issued and fully paid:
At 1 January 2024, 31 December 2024,
1 January 2025 and 31 December 2025	1,483,687,151	14,837

There were no movements in the Company's share capital during the Year (2024: Nil).

11 -

13. TRADE AND OTHER PAYABLES

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| Trade payables | 125 | 101 |
| Deposits received from customers | 2,520 | 2,460 |
| Contract liabilities | 2,956 | 557 |
| Accruals and other payables | 5,141 | 5,132 |
| | 10,742 | 8,250 |

The ageing analysis of trade payables based on invoice date is as follows:

| | 2025
HK$'000 | 2024
HK$'000 |
| --- | --- | --- |
| 0-30 days | 57 | 49 |
| 31-60 days | 51 | — |
| 61-90 days | 5 | — |
| Over 90 days | 12 | 52 |
| | 125 | 101 |

EXTRACT OF INDEPENDENT AUDITOR'S REPORT

The following is an extract of the independent auditor's report prepared by PricewaterhouseCoopers on the Group's consolidated financial statements for the year ended 31 December 2025.

Our opinion

In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2025, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with HKFRS Accounting Standards as issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA") and have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance.

Material Uncertainty Related to Going Concern

We draw your attention to Note 2.1(a) to the consolidated financial statements, which states that the Group recorded a loss for the year of HK$13,333,000 and there was a net cash outflow from operating activities of HK$11,833,000 for the year ended 31 December 2025. As at 31 December 2025, the Group had cash and cash equivalents of HK$18,244,000. These conditions, along with other matters as described in Note 2.1(a) to the consolidated financial statements, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

BUSINESS REVIEW

The Group is principally engaged in the trading, development and sales of display and optics products and related electronic components, as well as the trading of health-related and other products.

During the Year, the display panel industry continued to show signs of recovery from the previous downturn. Nevertheless, uncertainties in global trade policies, intensified price competition, slower-than-expected demand growth and a complex macroeconomic environment continued to create a challenging operating environment and exert pressure on the Group's overall performance.

The Group recorded revenue of approximately HK$104,163,000, representing an increase of approximately 12% as compared with approximately HK$92,605,000 for the year ended 31 December 2024. Through enhanced operational efficiency and strengthened cost control measures, the Group achieved a rational reduction in operating expenses, which helped mitigate its loss position during the Year. The Group also recorded a net gain of approximately HK$177,000 from its financial asset at FVTPL in respect of its investment in Mobvoi (a company listed on The Stock Exchange of Hong Kong Limited, stock code: 2438), as compared with a fair value loss of approximately HK$19,207,000 recognised in 2024. Loss attributable to equity holders of the Company for the Year amounted to approximately HK$12,492,000, representing a decrease of approximately 71% as compared with the loss attributable to equity holders of the Company of approximately HK$42,906,000 recorded for the year ended 31 December 2024.

Sales of medium-to-large-sized display products, including display panels and modules for notebook computers, monitors and televisions, remained the Group's primary revenue contributor and were the main driver of the increase in revenue for the Year. As television panels experienced more stable pricing conditions compared with recent years, together with the marketing strategy adopted by the Group's supplier, the Group's gross profit margin was improved during the Year. Amid a weaker macroeconomic environment, consumers prioritised practicality in their purchases, creating opportunities for small and medium-sized TV brands, which generally offer more affordable pricing. As part of the display panel supply chain for these small and medium-sized TV brands, the Group's sales also benefited from this trend. In addition, new customers were developed during the Year, which supported revenue growth. These factors collectively contributed to the increase in the Group's sales of TFT-LCD panels and modules during the Year. Revenue from TFT-LCD panels and modules amounted to approximately HK$82,493,000, representing an increase of approximately HK$42,332,000 as compared with approximately HK$40,161,000 in 2024.

In contrast to the increase in revenue from TFT-LCD panel and module, revenue from the Group's electronic signage products, including digital information signage, electronic shelf displays and electronic whiteboards, etc., amounted to approximately HK$6,439,000, representing a decline of approximately 50% as compared with approximately HK$12,997,000 in 2024. The Group's electronic signage products faced intensive competition during the Year. Retailers also generally reduced capital expenditure on electronic shelf displays amid the prevailing weak economic environment, while the

12 -

education sector likewise tightened budget allocation. Taken together, these factors placed significant adverse downward pressure on the sales of the Group's electronic signage products during the Year.

The Group's optics products, which mainly comprised automotive head-up display components in 2024, experienced a substantial decline in sales during the Year. Intensified price competition in the new energy vehicle sector in mainland China prompted automotive manufacturers to favour cost-competitive components produced domestically. Under such market conditions, the competitiveness of the Group's optics products, which are primarily sourced from a Taiwan manufacturer, was adversely impacted. As a result, the Group's revenue from optics products declined significantly from approximately HK$25,594,000 in 2024 to approximately HK$115,000 during the Year. To address the above challenge, the Group will continue working closely with its suppliers to introduce more competitive products for upcoming automotive models.

Sales of the Group's health-related products during the Year mainly comprised its "K-clean" personal hygiene and disinfection products, as well as combination rapid antigen test kits. Despite post-pandemic adjustments in market demand, sales of combination rapid antigen test kits increased during the Year, supported by expanded distribution channels across clinics and pharmacies, partially offsetting the weaker demand for disinfection products. The Group also continued to optimise its product mix in response to evolving market conditions. In addition to test kits, the Group expanded its pet health food product lines, further enhancing product diversification and contributing to revenue growth. Revenue from health-related products amounted to approximately HK$12,952,000, representing a slight increase of approximately 1% compared with approximately HK$12,799,000 in 2024.

Beyond the expansion of its product portfolio, the Group continued exploring other business opportunities. In view of government policy support and growing market adoption of electric vehicles in Hong Kong, the Group expanded into the electric vehicle charging infrastructure sector by offering smart charging equipment and solutions during the Year. This initiative is expected to further strengthen the Group's diversified business profile. The development of this line of business is expected to proceed with limited funding needs, and the Group will collaborate with suppliers to manage costs required for development and ongoing operations.

The Group's investment in Mobvoi consists of certain ordinary shares of Mobvoi. Capitalising on the rebound in Mobvoi's share price in the third quarter of 2025, the Group in aggregate disposed of 7,515,000 Mobvoi Shares through open-market at an aggregate net cash proceeds of approximately HK$6,907,000, thereby enhancing the Group's cash flow position and liquidity. These disposals, after offsetting the fair value loss arising from the remaining 17,698,220 Mobvoi Shares held by the Group as at 31 December 2025, generated a net gain of approximately HK$177,000 for the Year, as compared to a fair value loss of approximately HK$19,207,000 in respect of the Group's investment in Mobvoi recorded in 2024. The financial impact of the Group's investment in Mobvoi significantly contributed to the narrowing of the Group's loss for the Year. Subject to market conditions, the Group will dispose its remaining Mobvoi Shares to improve the Group's liquidity and financial position.

13 -

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PROSPECTS

Looking ahead, profound global economic uncertainties are expected to persist, and the Group's business is expected to face pressure under such conditions. In response, the Group will maintain its prudent and disciplined operational principles to navigate market volatility. Operationally, the Group will continue to strengthen cost control measures to enhance the resilience of its core businesses, while closely monitoring changes in global policies and structural shifts within the industry. At the same time, the Group will proactively identify growth opportunities across different sectors through flexible strategies, supported by prudent management of its financial and operational resources. By optimising resource allocation, furthering business diversification and strengthening cooperative relationships with suppliers and customers, the Group aims to pursue steady development in a complex operating environment and remains committed to delivering long-term, sustainable value to shareholders.

FINANCIAL REVIEW

Revenue

Total revenue of the Group for the Year amounted to approximately HK$104,163,000, representing an approximately 12% increase as compared with approximately HK$92,605,000 in 2024. The increase was mainly due to the increase in sales of the Group's TFT-LCD panels and modules during the Year.

Cost of sales

Cost of sales of the Group mainly consisted of purchase costs, staff costs, provision for obsolete inventories and other direct costs. Mainly due to the increase in sales of TFT-LCD panels and modules, purchase costs increased and thus cost of sales increased during the Year as compared with 2024. Total cost of sales of the Group for the Year amounted to approximately HK$87,236,000 which increased by approximately 6% as compared to approximately HK$81,951,000 in 2024.

Gross profit

Gross profit of the Group during the Year amounted to approximately HK$16,927,000, which increased by approximately 59% as compared with approximately HK$10,654,000 in 2024. The increase in gross profit during the Year was mainly due to the increase in revenue and the improvement in gross profit margin of the Group's TFT-LCD panels and modules.

Other gains/(losses), net

Net other gains of approximately HK$881,000 was recorded for the Year, while net other losses of approximately HK$18,818,000 was recorded in 2024. It was mainly due to the net gain on the Group's financial asset at FVTPL in respect of its investment in Mobvoi during the Year of approximately HK$177,000 as compared to the fair value loss of approximately HK$19,207,000 recognised on the Group's financial asset at FVTPL in 2024.

Distribution and selling expenses

The Group's distribution and selling expenses for the Year amounted to approximately HK$9,479,000, representing an approximately 24% decrease as compared with approximately HK$12,533,000 in 2024. The decrease was mainly attributable to the decrease in staff costs and promotion expenses incurred for the Group's health-related products.

General and administrative expenses

The Group's general and administrative expenses for the Year amounted to approximately HK$20,765,000, representing an approximately 4% decrease as compared with approximately HK$21,557,000 in 2024. The decrease was mainly attributable to the decrease in legal and professional fees as compared to 2024.

Research and development expenses

The Group's research and development expenses for the Year amounted to approximately HK$792,000, representing an approximately 35% decrease as compared to approximately HK$1,227,000 in 2024, which was due to the decrease in staff costs.

Finance costs

The Group's finance costs for the Year represented interest expenses on bank loan and lease liabilities of approximately HK$103,000 (2024: HK$150,000) and HK$10,000 (2024: HK$79,000), respectively.

Loss attributable to equity holders of the Company

The Group recorded a loss attributable to equity holders of the Company for the Year amounted to approximately HK$12,492,000, representing a decrease in loss of approximately 71% as compared to the loss of approximately HK$42,906,000 for 2024. The Group's loss narrowed during the Year, primarily due to the increase in revenue from the Group's TFT-LCD panels and modules, which also supported an improvement in gross profit; a net gain recognised on the Group's financial asset at FVTPL, whereas a net loss was recorded in 2024; and a reduction in operating expenses as a result of the Group's ongoing cost control initiatives during the Year.

LIQUIDITY AND FINANCIAL RESOURCES

The Group's funds are principally used to finance working capital, and the growth and expansion of the Group's operations and sales network. The Group's principal sources of funds are cash generated from operations and bank borrowings. As at 31 December 2025, the Group's cash and cash equivalents, represented by cash on hand and at bank, amounted to approximately HK$18,244,000 (2024: HK$24,407,000).

As at 31 December 2025, the Group's total bank borrowings comprised bank loan of approximately HK$3,066,000 (2024: HK$3,809,000).

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As at 31 December 2025, the Group's net current assets position was HK$26,833,000 (2024: HK$41,117,000) with cash and cash equivalents of HK$18,244,000 (2024: HK$24,407,000). As detailed in note 2 above, the Board has been implementing various measures in order to improve the Group's liquidity and financial position. The Board, after making due enquiries and considering the basis of management's cashflow forecast and after taking into account the reasonably possible changes in the operation performance of the Group, believes there will be sufficient financial resources available to the Group for at least twelve months after 31 December 2025 to meet its financial obligations as and when they fall due.

GEARING RATIO

The Group's gearing ratio as at 31 December 2025 was 10.1% (2024: 8.4%), which is calculated based on the Group's total interest-bearing bank borrowings divided by the Group's total equity.

CONTINGENT LIABILITIES

As at 31 December 2025, the Group had no material contingent liabilities (2024: Nil).

CHARGE OF ASSETS

As at 31 December 2025, the Group had no charge of assets (2024: Nil).

CAPITAL COMMITMENTS

As at 31 December 2025, the Group did not have any significant capital commitments (2024: Nil).

DIVIDEND

The Board does not recommend nor declare any dividend for the Year (2024: Nil).

PURCHASE, SALE OR REDEMPTION OF SECURITIES

During the Year, the Company did not redeem any of its shares, and neither did the Company nor any of its subsidiaries purchase or sell any of the Company's shares. The Company did not hold or sell any treasury shares during the Year.

LEGAL PROCEEDINGS INVOLVING THE COMPANY AND THE DIRECTORS

Reference is made to the announcements of the Company dated 26 September 2019, 4 October 2019, 10 January 2020, 9 April 2020, 10 July 2020 and 25 September 2020. On 25 September 2019, the Company received a sealed copy of a petition (the "Petition") issued by the High Court of the Hong Kong Special Administrative Region (the "High Court") which was taken out by the Securities and Futures Commission (the "SFC") pursuant to section 214 of the Securities and Futures Ordinance against certain current Directors, namely Mr. Cheng Wai Tak, Mr. Liu Ka Wing and Mr. Tse Ka Wing, and certain former Directors, namely Mr. Wong Yik Chung John, Mr. Wong Chi Chiu

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and Mr. Li Shui Yan (collectively “the Director Respondents”), and the Company. The SFC alleged in the Petition that the Director Respondents had breached their duties as directors of the Company in relation to the disposal of a subsidiary of the Company holding an approximately 50.14% shareholding in 尚立光電股份有限公司 (Shinyoptics Corporation*) (details of such disposal were disclosed in the announcement of the Company dated 22 December 2016). As the Company is only a nominal respondent to the Petition and pursuant to the order of the High Court, the Company is not required to actively participate in the legal proceedings in respect of the Petition.

As detailed in the Company's announcement dated 25 September 2020, with effect from 25 September 2020, pending the outcome of the legal proceedings of the Petition, the Director Respondents have been suspended from their duties as Directors. Mr. Cheng Wai Tak has also been suspended from his duties as the Chairman of the Board and the Chief Executive Officer ("CEO") of the Company. Mr. Kan Man Wai, an independent non-executive Director, has been appointed as the acting Chairman in place of Mr. Cheng Wai Tak. The function of the CEO is shared among the management staff of the Company and other members of the Board.

The Company understands the Director Respondents disagree with the allegations of the SFC in the Petition, and intend to vigorously contest the Petition. As at the date of this announcement, the legal proceedings of the Petition are ongoing.

CORPORATE GOVERNANCE PRACTICES

The Company is committed to achieving high standards of corporate governance with a view to safeguarding the interests of its shareholders. To accomplish this, the Company has adopted the principles and the code provisions of the Corporate Governance Code (the "CG Code") contained in Appendix C1 of the GEM Listing Rules.

Throughout the Year, the Company had complied with all the code provisions of the CG Code for the time being in force.

AUDIT COMMITTEE

The Company has established an audit committee on 20 January 2014 with written terms of reference in compliance with Rule 5.28 of the GEM Listing Rules and code provision D.3.3 of the CG Code. As at the date of this announcement, the audit committee consists of three independent non-executive Directors, namely, Ms. Hsu Wai Man Helen, who has the appropriate accounting and related financial management expertise and serves as the chairperson of the audit committee, Mr. Kan Man Wai and Mr. Lau Ngai Kee Ricky. The audited annual results of the Group for the Year have been reviewed by the audit committee.

for identification purpose only

SCOPE OF WORK OF PRICEWATERHOUSECOOPERS

The figures in respect of the Group's consolidated statement of financial position, consolidated statement of comprehensive income and the related notes thereto for the year ended 31 December 2025 as set out in this preliminary announcement have been agreed by the Group's auditor, PricewaterhouseCoopers, to the amounts set out in the Group's audited consolidated financial statements for the Year. The work performed by PricewaterhouseCoopers in this respect did not constitute an assurance engagement and consequently no opinion or assurance conclusion has been expressed by PricewaterhouseCoopers on this preliminary announcement.

ANNUAL GENERAL MEETING

It is proposed that the forthcoming annual general meeting of the Company (the "AGM") will be held on Wednesday, 17 June 2026. A notice convening the AGM will be published and despatched to the shareholders of the Company in the manner required by the GEM Listing Rules in due course.

CLOSURE OF REGISTER OF MEMBERS

For determining the entitlement to attend and vote at the AGM, the register of members of the Company will be closed from Friday, 12 June 2026 to Wednesday, 17 June 2026, both days inclusive, during which period no transfer of shares will be registered. The record date for determining the eligibility of the shareholders to attend and vote at the AGM will be Wednesday, 17 June 2026. In order to be eligible to attend and vote at the AGM, all transfers of shares documents, accompanied by the relevant share certificates, must be lodged with the Company's branch share registrar and transfer office in Hong Kong, Tricor Investor Services Limited, at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong, not later than 4:30 p.m. on Thursday, 11 June 2026.

By order of the Board
Perfect Optronics Limited
Kan Man Wai
Acting Chairman

Hong Kong, 27 March 2026

As at the date of this announcement, the Board comprises four executive directors, namely, Mr. Cheng Wai Tak (suspended), Mr. Liu Ka Wing (suspended), Mr. Tse Ka Wing (suspended) and Mr. Chang Huan Chia; and three independent non-executive directors, namely, Mr. Kan Man Wai (acting Chairman), Ms. Hsu Wai Man Helen and Mr. Lee Ngai Kee Ricky.

This announcement will remain on the GEM website at http://www.hkgem.com on the "Latest Company Announcements" page for at least 7 days from the day of its publication and on the Company's website at http://www.perfect-optronics.com.

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