香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因倚賴該 等內容而引致之任何損失承擔任何責任。 本公告僅供參考之用，並不構成收購、購買或認購本公司證券之邀請或要約。 SHOUGANG CENTURY HOLDINGS LIMITED 首佳科技製造有限公司 （於香港註冊成立之有限公司） （股份代號：103） 按於記錄日期每持有五(5)股現有股份 可獲發一(1)股供股股份之基準 以非包銷基準進行供股之結果 茲提述首佳科技製造有限公司（「本公司」）日期為二零二四年十月二日之供股章程（「章程」），內容 有關供股。除另有所指外，本公告所用之詞彙與章程所定義者具有相同涵義。 供股結果 董事會欣然宣佈，供股於二零二四年十月十八日（星期五）成為無條件，而截至二零二四年十月 十七日（星期四）下午四時正為最後接納時限， 根據上述接納及申請結果，合共收到41份有關424,923,100股供股股份之有效接納及申請，佔根據 供股可供認購之391,676,365股供股股份總數約108.49%。因此，供股獲超額認購33,246 ...

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 1,260,697,000, representing a 2.1% increase from HKD 1,235,047,000 in the same period of 2023[5] - Gross profit for the same period was HKD 197,835,000, up 9.8% from HKD 180,106,000, with a gross margin of 15.7%, an increase of 1.1 percentage points[5] - Profit for the period increased by 36.6% to HKD 42,523,000 compared to HKD 31,140,000 in the previous year[5] - Basic earnings per share rose by 37.3% to HKD 0.0217 from HKD 0.0158[5] - Total revenue, including rental income, was HKD 1,260,697,000 for the six months ended June 30, 2024, compared to HKD 1,235,047,000 for the same period in 2023, showing an increase of about 2.1%[34] - The net profit for the period was HKD 42,523,000 for the six months ended June 30, 2024, compared to HKD 31,140,000 for the same period in 2023, representing an increase of approximately 36%[31][32] Assets and Liabilities - Net assets as of June 30, 2024, were HKD 1,717,609,000, a 1.7% increase from HKD 1,689,673,000 at the end of 2023[5] - Total assets as of June 30, 2024, amounted to HKD 3,441,995, up from HKD 3,312,149 at the end of 2023[14][15] - Current liabilities increased to HKD 1,692,870 from HKD 1,594,603, indicating a rise in short-term obligations[15] - Total liabilities, including accounts payable and notes payable, amounted to HKD 880,606,000 as of June 30, 2024, compared to HKD 795,445,000 at the end of December 2023, reflecting an overall increase of about 10.7%[52] - Bank loans reached HKD 522,489,000 as of June 30, 2024, compared to HKD 487,537,000 at the end of December 2023, marking an increase of approximately 7.1%[56] Cash Flow - For the six months ended June 30, 2024, the company reported a net cash inflow from operating activities of HKD 88,274, compared to HKD 50,609 for the same period in 2023, representing a 74.4% increase[19] - The company incurred a net cash outflow from investing activities of HKD 36,739 for the six months ended June 30, 2024, compared to HKD 20,505 in the same period of 2023, indicating an increase in investment expenditures[19] - The financing activities generated a net cash inflow of HKD 31,958 for the six months ended June 30, 2024, reversing a net outflow of HKD 30,813 in the same period of 2023[19] Market Position and Strategy - The company aims to become one of the top three manufacturers in the steel cord industry in China, with a target annual production capacity of over 300,000 tons[2] - The company is focused on building a strong "Eastern" brand in the steel cord industry based on principles of integrity, pragmatism, and efficiency[2] - The company continues to explore market expansion opportunities and new product development strategies to drive future growth[13] Shareholder Information - The company proposed a final dividend of HKD 0.01 per share, totaling approximately HKD 19,584,000, to be paid in July 2024[46] - Total issued shares as of June 30, 2024, were 1,958,381,828, a decrease from 1,968,903,828 shares as of December 31, 2023[73] Research and Development - Research and development expenses for the period were HKD 52,192, slightly down from HKD 53,995, suggesting a focus on cost management[13] - The company’s research and development expenses increased to HKD 53,995,000, up from HKD 52,192,000 in the previous year[71] Corporate Governance - The company has adhered to all principles and provisions of the corporate governance code as of June 30, 2024[86] - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and risk management[87] Foreign Exchange and Financial Instruments - The company reported a foreign exchange loss of HKD 14,587, compared to a loss of HKD 26,920 in the previous year, indicating improved currency stability[13] - The company reported a net foreign exchange gain of HKD 5,369,000 for the six months ended June 30, 2024, compared to HKD 2,699,000 in 2023, indicating a significant increase in foreign exchange gains[36] Employee Expenses - Employee benefits expenses, including directors' remuneration, rose to HKD 161,526,000 for the six months ended June 30, 2024, compared to HKD 146,363,000 in 2023, marking an increase of approximately 10.4%[37] - Employee welfare expenses totaled approximately HKD 161.5 million during the review period[79]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 1,260,697, an increase of 2.1% from HKD 1,235,047 in the same period of 2023[1] - Gross profit for the same period was HKD 197,835, representing a 9.9% increase compared to HKD 180,106 in 2023[1] - Profit attributable to the owners of the company for the six months was HKD 42,523, up 36.4% from HKD 31,140 in the previous year[1] - Basic and diluted earnings per share for the period were both HKD 2.17, compared to HKD 1.58 and HKD 1.12 in 2023 respectively[2] - The net profit for the period was HKD 42,523, up from HKD 31,140 in the previous year, marking an increase of around 36%[16] - Basic earnings per share for the six months ended June 30, 2024, were HKD 2.17, compared to HKD 1.58 for the same period in 2023, reflecting a 37.3% increase[25] - The company's diluted earnings per share for the six months ended June 30, 2024, were HKD 2.17, compared to HKD 1.12 for the same period in 2023, indicating a significant increase[27] - The total tax expense for the six months ended June 30, 2024, was HKD 3,569,000, an increase of 32.5% from HKD 2,693,000 in the same period of 2023[22] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 3,441,995, an increase from HKD 3,312,149 as of December 31, 2023[3] - Current assets increased to HKD 2,028,623 from HKD 1,851,928 at the end of 2023, driven by higher inventory and accounts receivable[3] - Total liabilities rose to HKD 1,724,386 from HKD 1,622,476, with current liabilities increasing to HKD 1,692,870[3] - Accounts receivable as of June 30, 2024, were HKD 708,251,000, an increase of 6.2% from HKD 667,322,000 as of December 31, 2023[31] - Accounts payable increased to HKD 757,997,000 as of June 30, 2024, compared to HKD 707,608,000 at the end of 2023, reflecting a growth of approximately 7.1%[36] - Bank loans amounted to HKD 513,921,000 as of June 30, 2024, up from HKD 469,936,000 at the end of 2023, indicating an increase of about 9.4%[40] - Net debt decreased from HKD 390,397,000 to HKD 335,722,000, indicating improved financial health[58] - The debt ratio improved from 23.1% to 19.5%, demonstrating better leverage management[59] Segment Performance - The revenue from external customers for the steel wire segment reached HKD 1,260,079, an increase from HKD 1,234,354 in the same period last year, representing a growth of approximately 2.1%[16] - The segment profit for the steel wire division was HKD 69,295, compared to HKD 54,194 in the previous year, indicating a year-over-year increase of about 28%[16] - Sales volume of steel cord for tires reached 120,658 tons, a 13.5% increase from 106,264 tons year-on-year[46] - The sales volume of cutting steel wire products increased by 12.0% to 421 tons, compared to 376 tons in the previous year[46] - Other steel wire products saw a sales volume increase of 30.4%, rising from 4,816 tons to 6,282 tons[46] - Export sales volume of steel cord increased by 7.4% to 37,478 tons compared to 34,883 tons in the same period last year, accounting for 31.1% of total sales[47] Expenses and Costs - The cost of goods sold was HKD 1,057,573, slightly higher than HKD 1,049,770 in the previous year, showing a marginal increase of about 0.7%[20] - Employee benefit expenses, including director remuneration, rose to HKD 161,526 from HKD 146,363, reflecting an increase of approximately 10.4%[20] - Administrative expenses rose to HKD 28,915,000 from HKD 27,572,000, with a slight increase in the ratio to revenue[53] - Research and development expenses for the six months were HKD 53,995, slightly up from HKD 52,192 in 2023[1] - Other income increased to HKD 7,485,000 from HKD 7,258,000, primarily due to foreign exchange gains[51] Financial Gains and Losses - The fair value gain from derivative financial instruments was HKD 2,431, compared to HKD 1,078 in the previous year, representing a significant increase of approximately 125%[19] - The foreign exchange gain for the period was HKD 5,369, up from HKD 2,699 in the previous year, indicating an increase of about 99%[19] - Financial income for the six months ended June 30, 2024, was HKD 1,296,000, compared to HKD 985,000 for the same period in 2023, representing a 31.6% increase[21] - Total financial costs for the six months ended June 30, 2024, amounted to HKD 14,937,000, a decrease of 15.2% from HKD 17,616,000 in the same period of 2023[21] Corporate Governance and Future Outlook - The company is currently evaluating the impact of new and revised accounting standards on its financial performance and position, with no significant effects anticipated at this time[10] - The company is optimistic about future business growth despite global economic uncertainties, driven by the increasing demand for electric vehicle tires[66] - The company is committed to reducing carbon emissions through energy-saving measures and the development of low-carbon products[66] - The company has adopted corporate governance codes and internal control guidelines to ensure effective risk management[70] Shareholder Information - The company proposed a final dividend of HKD 0.01 per share for the year ended December 31, 2023, totaling approximately HKD 19,584,000[28] - The company has not declared an interim dividend for the six months ended June 30, 2024[67] - The mid-term performance announcement is available on the company's website and the Hong Kong Stock Exchange[74] - The mid-term report for 2024 will be sent to shareholders at an appropriate time and published on the specified websites[74] Employee and Operational Information - The company employs a total of 2,543 employees across Hong Kong and China as of June 30, 2024[63] - The board of directors consists of key members including Chairman Su Fanrong and Managing Director Li Jinping[74] - The company has capital commitments of HKD 60,500,000 for the purchase of property, plant, and equipment as of June 30, 2024[44] - The company repurchased 10,522,000 shares for approximately HKD 2,319,000, which were cancelled in January 2024[43] - The company operates a single reportable segment, which is the steel wire segment, and performance is reviewed from a product perspective by the chief operating decision maker[15]

Financial Performance - In 2023, the Group's total sales volume grew by 18.1% year-on-year, despite a decrease in average selling price due to lower raw material costs and export sales[6]. - The gross profit margin improved by 1.6 percentage points to 15.0%, resulting in a net profit increase of 30.6% year-on-year, from HK$47,858,000 to HK$62,506,000[6]. - For the year ended December 31, 2023, the Group recorded a revenue of HK$2,494,534,000, an increase of 1.2% compared to HK$2,464,242,000 in 2022[111]. - Gross profit increased by 13.2% to HK$374,166,000 from HK$330,540,000 in the previous year[111]. - Net profit rose by 30.6% to HK$62,506,000 from HK$47,858,000 year-on-year[111]. - Basic earnings per share rose by 29.9% to HK3.17 cents for the year, up from HK2.44 cents in the previous year[29]. - The final dividend for 2023 is set at HKD 1 cent per share, with the payment date scheduled for July 31, 2024[1]. - The Group's net asset value increased by 2.4% to HK$0.86 per Share as of December 31, 2023, compared to HK$0.84 per Share at the end of 2022[29]. - The Group's total revenue for the year ended December 31, 2023, was HK$2,494,534,000, representing an increase of 1.2% compared to HK$2,464,242,000 in 2022[144]. - The basic earnings per share for 2023 were HKD 1.58 cents for the interim and HKD 3.17 cents for the final[1]. Production and Capacity Expansion - The Group aims to add an additional 100,000 tonnes of steel cord production capacity at its Tengzhou plant, with new facilities already in operation during the year[7]. - The company aims to gradually develop into an enterprise with an annual manufacturing capacity exceeding 300,000 tonnes of high-quality steel cord[64]. - The Group's annual production capacity of steel cords increased to 240,000 tonnes, with plans to manufacture over 300,000 tonnes annually[193]. Market Outlook and Demand - The outlook for 2024 is positive, driven by increased demand for tires due to the recovery from the COVID-19 pandemic and government policies supporting domestic circulation[11]. - The Group anticipates increased global demand for logistics and large vehicle tyres in 2024 due to the mitigation of the COVID-19 pandemic[31]. - The sales of steel cords are expected to grow significantly, driven by solid tyre demand and government policies on energy conservation and emission reduction[31]. - The rise in electric vehicle production is expected to boost demand for accessorial tyres, enhancing market opportunities for the steel cord industry[31]. Cost Management and Financial Strategy - The decline in finance costs contributed to the increase in net profit, showcasing the Group's effective cost management strategies[6]. - Selling and distribution expenses decreased by 3.2% to HK$56,433,000 from HK$58,307,000 in the previous year, as the Group continues to implement cost control measures[148]. - Selling and distribution expenses increased by 8.3% to HK$124,033,000, driven by higher sales volume in the steel cord segment[195]. Corporate Governance and Management - The company has established a robust corporate governance structure with various committees, including nomination and remuneration committees[76]. - The company is committed to maintaining transparency and compliance with listing rules and regulations[85]. - The company has a strong management team with over 30 years of experience in the steel industry, particularly in sales and management[76]. - Mr. Li Jinping was appointed as the managing director effective from July 1, 2023, after serving as an executive director since January 1, 2020[77]. - Mr. Su Fanrong resigned as managing director on July 1, 2023, but remains as the chairman of the company[76]. Sustainability and Social Responsibility - The Group is committed to sustainable development and fulfilling social responsibilities by implementing green practices across all production levels[12]. - The company is committed to implementing green practices in production to achieve sustainable development and fulfill social responsibilities[32]. Economic Context - The gross domestic product of China in 2023 exceeded RMB126 trillion, representing a year-on-year increase of 5.2%, indicating a recovering economic environment[2]. - China's GDP reached RMB126,058.2 billion, up by 5.2% year-on-year in 2023[136].

智通财经APP讯，首佳科技(00103)公布2023年业绩，营业额约24.945亿港元，同比增长1.2%;毛利约3.74亿港元，同比增长13.2%;净利6250.6万港元，同比增长30.6%;每股基本盈利3.17港仙，建议末期每股股息1港仙。 其中，钢帘线分部的营业额约24.93亿港元，较上一年度增加1.2%。由于子午线轮胎的需求增加，钢帘线分部于本年度售出约22.86万吨钢帘线，较去年增加18.0%。在切割钢丝产品的销售方面，由于公司努力不懈地开拓新客户，以及光伏、蓝宝石和磁性材料市场的好转，销售量从去年同期的752吨增加 0.7%至757吨。其他钢丝产品的销售量从同期的8886吨增加21.3%至10,782吨。 公告称，净利增长主要由于生产成本下降导致毛利率的提高，及财务成本净额降低。 ...

Financial Performance - For the year ended December 31, 2023, the company reported product sales of HKD 2,493,165,000, an increase from HKD 2,462,767,000 in 2022, representing a growth of approximately 1.2%[7] - The total revenue for the year was HKD 2,494,534,000, compared to HKD 2,464,242,000 in 2022, reflecting an overall increase of approximately 1.2%[7] - The company achieved a profit before tax of HKD 57,688,000, with a net profit of HKD 47,858,000 for the year, compared to HKD 9,830,000 in tax expenses[8] - Financial income increased to HKD 7,003,000 in 2023 from HKD 2,246,000 in 2022, marking a significant rise of approximately 211.5%[9] - The total financial costs decreased to HKD 25,917,000 in 2023 from HKD 52,861,000 in 2022, showing a reduction of about 50.9%[9] - The company's revenue for the year ended December 31, 2023, was HKD 2,494,534,000, representing a 1.2% increase from HKD 2,464,242,000 in 2022[30] - Gross profit increased by 13.2% to HKD 374,166,000, with a gross margin of 15.0%, up from 13.4% in the previous year[30] - Net profit attributable to the company's owners rose by 30.6% to HKD 62,506,000, compared to HKD 47,858,000 in 2022[30] - Basic earnings per share increased by 29.9% to HKD 3.17, while diluted earnings per share rose by 55.0% to HKD 2.65[30] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.01 per share, totaling approximately HKD 19,584,000, subject to shareholder approval[17] - The proposed final dividend per share is HKD 0.01, a 37.0% increase from HKD 0.0073 in 2022[30] - The proposed final dividend for the year ending December 31, 2023, is HKD 0.01 per share, totaling approximately HKD 19,584,000, an increase from HKD 14,389,000 in 2022[82] Assets and Liabilities - Total assets decreased slightly to HKD 3,312,149,000 from HKD 3,327,430,000 in the previous year, reflecting a decrease of 0.5%[50] - The company's cash and cash equivalents, including pledged bank deposits, decreased by 57.0% to HKD 97,140,000 from HKD 225,908,000 year-over-year[61] - Total interest-bearing loans amounted to HKD 487,537,000, down 16.9% from HKD 586,626,000 in the previous year[61] - The debt ratio, calculated as total interest-bearing loans minus cash and cash equivalents divided by total equity, increased from 21.8% to 23.1%[62] - The current ratio remained stable at 1.2 times for both years, indicating consistent liquidity management[62] Operational Highlights - The company has ongoing projects in Tangzhou, with a planned annual production capacity of 100,000 tons of steel wire, supported by local government initiatives[65] - The annual production capacity of steel wire has reached 160,000 tons, with ongoing investments to further increase this capacity[80] - The increasing production of electric vehicles is expected to boost demand for supporting tires, accelerating the market expansion for steel wire used in domestic radial tires[80] - The company aims to achieve green, low-carbon, and sustainable development by reducing carbon emissions through energy-saving measures and the use of clean energy[80] - The company is actively pursuing its expansion plans in response to the evolving automotive and tire markets[95] Employee and Operational Costs - Employee benefit expenses increased to HKD 301,678,000 from HKD 261,756,000, reflecting a rise of 15.2%[59] - Research and development expenses for the year were HKD (108,296,000), compared to HKD (103,335,000) in the previous year[36] - Administrative expenses decreased by 3.2% to HKD 56,433,000 in 2023, down from HKD 58,307,000 in 2022, as the company continues to implement cost control measures[168] Market and Sales Performance - The steel cord division's revenue was HKD 2,493,165,000, a 1.2% increase from HKD 2,462,767,000 in 2022, driven by an 18.0% increase in sales volume to 228,637 tons[141] - Total export sales decreased by 16.5% to HKD 897,554,000, down from HKD 1,074,701,000, with significant declines in South America (down 46.2%) and the Middle East and Africa (down 38.7%) markets[143] - The total sales volume of steel cord increased by 18.0% to 228,637 tons in 2023, compared to 193,701 tons in 2022[161] Governance and Compliance - The company has adopted corporate governance codes and internal control guidelines to ensure effective risk management and compliance with regulations[72] - The chairman and CEO roles were separated on July 1, 2023, to comply with corporate governance standards[73] Miscellaneous - The company expressed gratitude to shareholders, suppliers, and customers for their ongoing support and commitment to business[74] - The company is evaluating the potential impact of new accounting standards on its financial performance and position[43] - The company has no outstanding convertible bonds as of February 2023, having redeemed all outstanding principal amounting to HKD 126,000,000[24] - The company’s auditor confirmed that the preliminary performance announcement aligns with the audited financial report for the year ending December 31, 2023[84]

Financial Performance - Revenue from external customers for the steel wire segment was HKD 1,234,354, a decrease of 1.5% compared to HKD 1,252,713 in the previous period[10]. - Gross profit increased by 8.4% to HKD 180,106, with a gross margin of 14.6%, up 1.3 percentage points from 13.3%[26]. - Profit for the period was HKD 31,140, representing a 2.9% increase from HKD 30,269 in the prior period[26]. - Basic earnings per share rose by 1.9% to HKD 1.58, compared to HKD 1.55 in the previous period[26]. - The company reported a revenue of HKD 1,235,047,000 for the six months ended June 30, 2023, a decrease of approximately 1.5% compared to HKD 1,253,473,000 in the same period last year[119]. - Net profit for the period rose by 2.9% to HKD 31,140,000, compared to HKD 30,269,000 in the same period last year[119]. - The diluted earnings per share for the six months ended June 30, 2023, was HKD 1.12, compared to HKD 1.00 in the previous year, representing a 12% increase[61]. Cost and Expenses - For the six months ended June 30, 2023, the cost of goods sold was HKD 1,049,770, a decrease of 2.4% from HKD 1,079,688 in 2022[31]. - Employee benefits expenses remained stable at HKD 146,363 compared to HKD 146,409 in the previous year[31]. - The total financial costs for the period were HKD (12,143), significantly improved from HKD (23,475) in the previous year, indicating a reduction of 48.3%[41]. - The income tax expense for the current period was HKD 2,693, compared to HKD 3,674 in the previous year, showing a decrease of 26.8%[49]. - Administrative expenses decreased to HKD 27,572,000 from HKD 29,178,000, with the ratio to revenue improving from 2.3% to 2.2%[130]. - Research and development expenses were reported at HKD 52,192,000, down from HKD 55,770,000 in the previous year[131]. Assets and Liabilities - Net assets as of June 30, 2023, were HKD 1,661,963, reflecting a 0.3% increase from HKD 1,657,743[26]. - The debt ratio decreased to 21.0%, down 0.8 percentage points from 21.8%[26]. - The fair value of investment properties decreased from HKD 55,637,000 to HKD 54,605,000, reflecting a change of approximately 1.85%[65]. - The net carrying amount of property, plant, and equipment decreased from HKD 1,187,280,000 to HKD 1,110,017,000, a reduction of about 6.5%[68]. - Total bank loans increased from HKD 454,552,000 to HKD 547,831,000, an increase of approximately 20.5%[85]. - The total accounts payable decreased from HKD 800,885,000 to HKD 768,629,000, a decrease of about 4.4%[79]. - The net amount of other payables decreased from HKD 204,253,000 to HKD 146,686,000, a reduction of approximately 28%[83]. Shareholder Information - The company had a market capitalization of HKD 340,989,198 as of June 30, 2023[44]. - Fair Union holds 894,349,179 shares, representing 45.37% of the total issued shares, classified as beneficial owner[155]. - Shougang Group holds 979,446,451 shares, representing 49.69% of the total issued shares, classified as controlled corporation[156]. - Bekaert Combustion holds 250,000,000 shares, representing 12.68% of the total issued shares, classified as beneficial owner[155]. - The total number of issued shares increased from 1,898,653,000 to 1,971,380,000 due to the conversion of convertible bonds[96]. Dividends and Capital Management - The company proposed a final dividend of HKD 0.73 cents per share, totaling approximately HKD 14,389,000, to be paid in July 2023[62]. - No interim dividend was declared or proposed for the six months ended June 30, 2023[63]. - The company issued convertible bonds amounting to HKD 150,000,000 with a coupon rate of 4% on February 11, 2019[90]. - The company redeemed HKD 126,000,000 of the convertible bonds that matured in February 2023, resulting in a fair value gain of HKD 3,554,000 for the six months ended June 30, 2023[94]. Operational Highlights - The company aims to develop into a high-quality steel wire manufacturing enterprise with an annual production capacity of over 300,000 tons[32]. - The sales volume of cutting steel wire products rose by 17.5% to 376 tons, compared to 320 tons in the previous year[123]. - Sales volume of steel cord increased by 12.9% to 106,264 tons, up from 94,129 tons year-on-year[123]. - The company plans to expand production capacity by an additional 100,000 tons of steel cord during the "14th Five-Year Plan" period[147]. Governance and Compliance - The company has complied with all principles and provisions of the corporate governance code as of June 30, 2023, except for the separation of roles between the chairman and managing director[165]. - The audit committee consists of three independent non-executive directors, with Mr. Ye Jianmin as the chairman, overseeing financial reporting and risk management[169]. - The independent auditor reviewed the unaudited interim financial information for the six months ending June 30, 2023, in accordance with the relevant auditing standards[169]. Future Outlook - The company is optimistic about the macroeconomic environment improving due to increased infrastructure investment in China, which is expected to drive sales growth in the automotive and tire industries[151]. - The company is committed to reducing carbon emissions through energy-saving measures and the development of low-carbon products[151].

Financial Performance - The group’s revenue for the year ended December 31, 2022, was HK$2,464,242,000, a decrease of 8.6% compared to HK$2,694,810,000 in 2021[67]. - The gross profit for the continuing operations decreased by 20.3% to HK$330,540,000, down from HK$414,547,000 in the previous year[110]. - The Group recorded a net profit of HK$47,858,000 for the year, a decrease of 40.8% from HK$80,879,000 in the same period last year[110]. - The basic earnings per share for the year were HK2.44 cents[103]. - The gross profit margin declined from 15.4% to 13.4% due to macroeconomic challenges, resulting in a net profit of HK$47,858,000 for the year, with basic earnings per share of HK$0.0244[67]. - The decline in profit after tax was mainly due to the resurgence of the COVID-19 pandemic, which weakened demand for accessory and replacement tyres[110]. - The Group's long-term business outlook remains positive, with expectations for substantial results in the future[104]. - Total revenue for the year ended December 31, 2022, was HK$2,464,242,000, a decrease of 8.6% compared to HK$2,694,810,000 in 2021[199]. - Steel cords generated revenue of HK$2,462,767,000, accounting for 99.9% of total revenue, down from HK$2,693,480,000 in the previous year, reflecting an 8.6% decline[199]. Dividends - The final dividend for 2022 is set at HK0.73 cents per share, with no interim dividend declared[37]. - The board recommended a final dividend of HK$0.73 per share for the year ended December 31, 2022[68]. - The Board proposed a final dividend of HK0.73 cents per share for the financial year ended December 31, 2022, subject to shareholder approval[140]. Market Conditions - China's GDP growth for 2022 was only 3%, significantly lower than expected, with a year-on-year increase of 3.9% in Q3 and a decrease to 2.9% in Q4[65][66]. - China's GDP growth slowed to 3.0% in 2022, down from 8.1% in 2021, impacting the Group's operational environment[141]. - The conflict between Russia and Ukraine is anticipated to continue impacting global energy markets, presenting challenges for 2023[69]. Production and R&D - The company aims to achieve an annual manufacturing capacity exceeding 300,000 tonnes of high-quality steel cord[33]. - The company plans to enhance the stability of steel cord product quality and invest in the development of high-end products for diverse customers[69]. - Research and development will focus on new specifications of steel cords, techniques to lower energy costs, and modifications to reduce pollutant emissions[69]. - Future R&D efforts will focus on developing new specifications for steel cords, new technologies to reduce energy costs, and improving production facilities to decrease emissions[104]. - The increasing production of electric vehicles is expected to significantly boost the demand for matching tyres, accelerating market expansion for steel cords[104]. Governance and Management - The company is under the supervision of the Shougang Group, a state-owned enterprise directly overseen by the Beijing State-owned Assets Supervision and Administration Commission[3]. - The company is focused on maintaining strong governance through experienced board members with diverse backgrounds in finance and management[52][55]. - The company has implemented corrective measures following past regulatory issues, ensuring compliance with disclosure requirements[61]. - The board composition includes members with extensive experience in legal, financial, and engineering sectors, enhancing strategic decision-making[52][60]. - The company is committed to transparency and accountability in its financial reporting and governance practices[61]. - The company aims to appoint at least one female board member by December 31, 2024, as part of its commitment to board diversity[149]. - The Nomination Committee will seek to improve board diversity by identifying potential candidates through internal and external talent markets[165]. Shareholder Communication - The Company has maintained effective communication with shareholders through multiple channels, including financial reports and general meetings[180]. - The Shareholders' Communication Policy was reviewed and deemed properly implemented and effective during the year[193]. - The Company actively solicits opinions from shareholders and engages in various activities to enhance communication, including meetings and presentations[194]. - The Company’s website is utilized to provide timely updates and information regarding business developments[195]. - The Company is committed to responding to shareholder inquiries and suggestions in accordance with its Continuous Disclosure Obligation Policy[195].

Financial Performance - The basic earnings per share for the six months ended June 30, 2022, was HKD 0.0155[28]. - Revenue for the six months ended June 30, 2022, was HKD 1,253,473, a decrease from HKD 1,283,336 in 2021, representing a decline of approximately 2.0%[38]. - Gross profit for the same period was HKD 166,122, down from HKD 226,886 in 2021, indicating a decrease of about 26.7%[38]. - The net profit from continuing operations was HKD 30,269, compared to HKD 52,256 in the previous year, reflecting a decline of approximately 42.1%[39]. - Basic earnings per share decreased to HKD 1.00 from HKD 2.75, a drop of about 63.6%[38]. - For the six months ended June 30, 2022, the total comprehensive income amounted to HKD 73,956,000, which includes a profit of HKD 52,256,000[47]. - Cash generated from operating activities for the six months ended June 30, 2022, was HKD 38,172,000, a decrease from HKD 128,510,000 in the same period last year[50]. - The company reported a net profit attributable to owners of HKD 30,269 for the six months ended June 30, 2022, compared to HKD 52,256 in the same period of 2021[104]. - The profit attributable to the company's owners from continuing operations for the six months ended June 30, 2022, was HKD 30,269,000, a decrease of 42.1% compared to HKD 52,256,000 for the same period in 2021[108]. - The net profit for the period fell by 42.1% to HKD 30,269,000, compared to HKD 52,256,000 in the same period last year[169]. Financial Position - Total assets as of June 30, 2022, were HKD 3,769,870, down from HKD 3,973,724 at the end of 2021, a decrease of approximately 5.1%[41]. - The total equity as of June 30, 2022, was HKD 1,705,044, a slight decrease from HKD 1,732,946 at the end of 2021, reflecting a decline of about 1.6%[43]. - The company's accounts payable decreased to HKD 550,243,000 as of June 30, 2022, from HKD 625,882,000 as of December 31, 2021, reflecting a reduction of 12.0%[125]. - The net book value of property, plant, and equipment was HKD 1,244,591,000 as of June 30, 2022, compared to HKD 1,271,922,000 as of June 30, 2021, showing a decrease[117]. - The total receivables, including notes receivable, were HKD 1,429,177,000 as of June 30, 2022, compared to HKD 1,608,172,000 as of December 31, 2021, a decrease of 11.1%[119]. - The company's debt ratio increased from 24.1% to 26.5% as of June 30, 2022[188]. Cash Flow - The net cash used in investing activities for the six months ended June 30, 2022, was HKD (62,093,000), compared to HKD (130,867,000) in the previous year[52]. - The net cash generated from financing activities for the six months ended June 30, 2022, was HKD 114,802,000, significantly higher than HKD 35,277,000 in the prior year[52]. - As of June 30, 2022, cash and cash equivalents increased to HKD 159,243,000 from HKD 127,236,000 at the end of the previous year[52]. - The company’s cash and bank balances increased to HKD 305,122,000, an increase compared to December 31, 2021[170]. Investments and Capital Expenditures - The company reported a capital reserve of HKD 23,990,000 as of June 30, 2022, reflecting previous acquisitions[48]. - The company has capital commitments for the purchase of property, plant, and equipment amounting to HKD 41,911,000 as of June 30, 2022, down from HKD 59,132,000 in the previous year[157]. - The company’s investment in property, plant, and equipment for the six months ended June 30, 2022, included purchases totaling HKD 100,735,000[50]. - The group plans to invest in a production line with an annual capacity of 100,000 tons of steel wire, supported by the Tengzhou government for infrastructure development[192]. Market and Operational Insights - The company’s management believes that the decrease in profit after tax is primarily due to the impact of the COVID-19 pandemic on economic activities, leading to a decline in automobile sales and transportation volume[169]. - The group anticipates a recovery in consumer confidence in China, driven by government incentives and a half-price purchase tax policy[198]. - The increasing production of electric vehicles is expected to drive demand for associated tires, enhancing the market for steel wire[199]. - The company will continue to monitor market conditions and adjust its strategies and operations as necessary to improve efficiency and profitability[170]. Shareholder Information - The company proposed a final dividend of HKD 0.015 per share, totaling approximately HKD 29,571,000, to be paid in July 2022[110]. - The board decided not to declare an interim dividend for the six months ended June 30, 2022[200]. Accounting and Compliance - The interim financial data was reviewed by PwC, confirming compliance with Hong Kong Accounting Standards[35]. - The company has not reported any significant issues in its interim financial data as of June 30, 2022[35]. - The company has not yet adopted new accounting standards effective from January 1, 2023, and is currently assessing their potential impact on financial performance[63].

Financial Performance - Revenue from continuing operations increased by 32.0% to HK$2,694,810,000 in 2021 from HK$2,041,553,000 in 2020[23] - Gross profit from continuing operations rose by 5.1% to HK$414,547,000 in 2021 compared to HK$394,322,000 in 2020[23] - Profit for the year decreased by 45.4% to HK$80,879,000 in 2021 from HK$148,254,000 in 2020[23] - Basic earnings per share dropped by 45.1% to 4.26 HK cents in 2021 from 7.76 HK cents in 2020[23] - Total equity increased by 5.3% to HK$1,732,946,000 in 2021 from HK$1,645,571,000 in 2020[23] - Net asset value per share improved by 4.6% to 0.91 HK$ in 2021 from 0.87 HK$ in 2020[23] - The Group's net profit for the year decreased by 45.4% to HK$80,879,000 from HK$148,254,000 in the previous year[87] - The gross profit margin fell to 15.4% due to significant increases in raw material prices and ocean freight rates that could not be passed on to customers in time[74] Dividends and Shareholder Information - Proposed final dividend per share remained unchanged at 1.5 HK cents[23] - The final dividend for 2021 is set at HK1.5 cents per share, with an interim dividend of nil[26] - The payment date for the 2021 final dividend is scheduled for 29 July 2022[26] - The total number of issued shares was 1,898,652,556 as of December 31, 2021, with a net asset value of HK$1,732,946,000, reflecting a 5.3% increase from the previous year[133] Operational Capacity and Market Position - The company aims to achieve an annual manufacturing capacity exceeding 300,000 tonnes of high-quality steel cords[9] - Shougang Century aims to become one of the three major manufacturers in the steel cord industry in China[9] - The steel cord/wire production capacity at TESC expanded to an annual capacity of 160,000 tonnes during the year[72] - TESC's annual production capacity of steel cords has increased to 160,000 tonnes, contributing to a total Group capacity of 240,000 tonnes as of December 31, 2021[157] Sales and Market Trends - The Group's total sales volumes grew by 10.6% year-on-year in 2021, with export sales of steel cords increasing by 76.1%[71] - The anticipated growth in demand for replacement tyres is driven by rising car ownership and increased production of electric vehicles, which is expected to expand the domestic steel cord market[78] - The increasing production of electric vehicles, driven by China's energy-saving and emission-reduction regulations, is boosting demand for supporting tires, which will accelerate the market expansion for radial tire steel cord[174] Challenges and Economic Environment - The Group faced challenges from rising raw material prices, increased freight costs, inflation pressure, and energy prices in the second half of 2021[72] - The COVID-19 epidemic caused economic and social disruptions, impacting the Group's operations[71] - The Group's performance was influenced by the complex international environment and domestic COVID-19 epidemic[71] Corporate Governance and Board Structure - The company considers all independent non-executive directors, including Mr. Yip, to be independent throughout the year under review[196] - The roles of chairman and managing director are performed by Mr. Su Fanrong, which deviates from Code Provision A.2.1, but the board believes this arrangement allows for prompt decision-making[200] - The board will review the management structure periodically to assess the need for separating the roles of chairman and managing director[200] - The board maintains sufficient checks and balances to ensure decisions are made in the interests of the company and its shareholders[200] Research and Development - Research and development expenses grew by 45.2% to HK$103,676,000, all incurred by the steel cord segment[119] Financial Management - The Group's treasury policies focus on managing liquidity and monitoring financial risks to ensure adequate financial resources for business growth[130] - The net interest-bearing borrowings decreased from HK$483,372,000 at December 31, 2020, to HK$418,332,000 at December 31, 2021[141] - The gearing ratio decreased from 29.4% at December 31, 2020, to 24.1% at December 31, 2021[145] Future Plans and Sustainability - The company aims to achieve green, low-carbon, and sustainable development by reducing carbon emissions through energy conservation, clean energy use, and the development of low-carbon products and new technologies[174] - In 2022, the company plans to explore other businesses specifically, believing this will create synergies with its core steel cord and wire manufacturing business and drive growth under the "14th Five-Year Plan"[174]