| 二零一八年末期股息 | 二零一九年六月十三日 | 0.020港元 | | --- | --- | --- | | 二零一三年末期股息 | 二零一四年五月二十八日 | 0.015港元 | | 二零一一年末期股息 | 二零一二年五月二十三日 | 0.005港元 | | 二零一零年末期股息 | 二零一一年五月二十日 | 0.015港元 | | 二零零七年末期股息 | 二零零八年五月二十九日 | 0.015港元 | | 二零零七年中期股息 | 二零零七年九月二十四日 | 0.006港元 | | 二零零六年末期股息 | 二零零七年五月二十九日 | 0.015港元 | | 二零零六年中期股息 | 二零零六年九月二十五日 | 0.005港元 | | 二零零五年末期股息 | 二零零六年五月二十九日 | 0.015港元 | | 二零零四年末期股息 | 二零零五年五月三十日 | 0.010港元 | | 一九九七年末期股息 | 一九九八年六月二十九日 | 0.020港元 | | 一九九六年末期股息 | 一九九七年六月十三日 | 0.055港元 | | 一九九六年中期股息 | 一九九六年九月十六日 | 0.015港元 | | 一 ...

Group 1 - The core viewpoint of the news highlights the recent performance of the Hang Seng Index and the significant increase in the stock price of Datong Machinery [1] - Datong Machinery's stock price rose by 23.66% to HKD 0.23 per share, with a trading volume of 16,000 shares and a turnover of HKD 3,984 [1] - Over the past month, Datong Machinery has experienced a cumulative decline of 1.06%, while its year-to-date increase is only 0.54%, underperforming the Hang Seng Index by 19.1% [2] Group 2 - As of December 31, 2024, Datong Machinery reported total operating revenue of CNY 1.727 billion, representing a year-on-year growth of 8.22% [2] - The net profit attributable to shareholders reached CNY 7.312 million, showing a significant year-on-year increase of 118.03% [2] - The gross profit margin for Datong Machinery stands at 18.49%, with a debt-to-asset ratio of 39.67% [2] Group 3 - Datong Machinery was established in 1958 and has evolved into a diversified business group, primarily engaged in machinery manufacturing, plastic processing, and sales of industrial consumables [3] - The company was listed on the Hong Kong Stock Exchange in 1988, which was a crucial step for its rapid growth [3] - Datong Machinery operates under the core values of being people-oriented, grounded in industry, pragmatic, and committed to continuous learning, aiming to create maximum value for stakeholders [3]

Economic Environment - The global economy continues to be stagnant, with inflation rates proving difficult to stabilize and interest rates remaining high [13]. - The real estate market in Mainland China has remained weak, leading to sluggish demand and excess capacity in numerous industries [14]. - The business environment remains challenging, with uncertainties stemming from international relations and U.S. tariff policies [25]. - The outlook for the manufacturing market in Mainland China remains uncertain due to ongoing Sino-US tensions and a global tariff trade war, leading to unstable industrial demand [87]. - Major economies are facing insufficient growth momentum, influenced by inflation and geopolitical risks, which may affect the Group's operations [168]. Financial Performance - The Group's revenue for the year ended December 31, 2024, was approximately HK$1,865,354,000, representing an increase of 8.2% compared to HK$1,723,747,000 in 2023 [33]. - Gross profit for the same period was approximately HK$344,921,000, with a gross profit margin of 18.5%, down from 19.3% in 2023 due to intensified industry competition [34]. - Operating profit decreased by 22.6% to HK$27,914,000, while profit for the year fell by 49.0% to HK$11,063,000 [32]. - Other income, gain, and loss increased by 117.0% to approximately HK$35,180,000, primarily due to higher government grants and favorable currency fluctuations [38]. - Selling and distribution costs rose to approximately HK$179,088,000, accounting for 9.6% of revenue, up from 9.0% in 2023, driven by increased expenses in overseas market expansion [39]. - Administrative expenses increased by 11.4% to approximately HK$173,099,000, attributed to rising staff costs [40]. - Finance costs decreased by 7.3% to approximately HK$13,838,000 due to the repayment of part of the bank borrowings during the year [41]. - The Group recorded a net profit of approximately HK$18,753,000 for the year ended December 31, 2024, compared to a net loss of approximately HK$59,515,000 in 2023 [157]. - The Group's total outstanding bank borrowings as of December 31, 2024, amounted to approximately HK$115,259,000, a decrease from approximately HK$234,598,000 as of December 31, 2023 [92]. - The Group's net cash position as of December 31, 2024, was approximately HK$392,068,000, down from approximately HK$416,947,000 as of December 31, 2023 [93]. Operational Strategies - The Group has adopted a proactive attitude by focusing on specific niche markets and customer needs driven by research and development and innovation [15]. - The Group has activated a fully automated smart warehouse system to improve overall management efficiency [17]. - The Group remains committed to recruiting dynamic and creative young technical talents to strengthen its competitive edge in the market [17]. - The Group is committed to enhancing operational management and quality in lean manufacturing to improve competitiveness and respond to market challenges [26]. - The Group has implemented a talent development plan focusing on diversity in talent acquisition, progression, and retention [104]. - The Group will maintain adequate investments in research and development and talent development to sustain competitive advantages in products and services [125]. Market Competition - The Group has faced intense market competition, with industry peers adopting price reduction strategies to secure orders [14]. - The injection molding machine (IMM) manufacturing business experienced growth in sales and orders, particularly in the first quarter, but faced challenges in the domestic market from declining demand and intensified competition [46]. - The machinery manufacturing business achieved considerable sales growth, particularly in extrusion lines, despite facing weak demand and intense price competition in the overall machinery market in Mainland China [56]. - Competitive pressure from multinational and regional competitors may impede the Group's profitability, necessitating cost-effective solutions and increased R&D investment [169]. Supply Chain and Risk Management - Supply chain disruptions due to rising trade protectionism and geopolitical risks may lead to material shortages and delivery delays, impacting sales opportunities [173]. - The Group implements flexible supply chain management to mitigate risks, including strict supplier selection and enhanced inventory control [173]. - Financial risks include foreign currency, interest rate, price, credit, and liquidity risks, which are managed through internal control procedures [181]. Employee and Management - Employees are considered the most important assets of the Group, with most management serving for a long time [195]. - The Group offers competitive salaries and benefits, along with training programs to enhance employees' skills and knowledge [200]. - The Group organizes various activities, such as annual dinners and sports events, to strengthen communication and partnership among employees [200]. - The Group celebrates festive seasons with employees and distributes gifts as a token of appreciation for their hard work [200]. Future Outlook - The group anticipates a more encouraging macro-economic outlook in Mainland China for 2025, driven by government policies aimed at stimulating the economy [111]. - The government is expected to maintain ample liquidity in capital markets and relatively low interest rates for 2025, which could positively impact economic activities [112]. - Investment sentiment in the manufacturing industry is expected to experience a slight rebound after a period of weakness, with a focus on integrating artificial intelligence (AI) into products and internal systems [120]. - Industries such as consumer electronics, electric vehicles, and renewable energy are expected to remain strong, capturing market shares from foreign competitors [116].

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 1,865,354, an increase of 8.2% compared to HKD 1,723,747 in 2023[2] - Gross profit for the same period was HKD 344,921, reflecting a growth of 3.7% from HKD 332,558 in 2023[4] - Operating profit decreased by 22.6% to HKD 27,914 from HKD 36,053 in the previous year[4] - Annual profit from continuing operations was HKD 11,063, down 49.0% from HKD 21,698 in 2023[2] - The company reported a net profit of HKD 18,753 for the year, compared to a loss of HKD 59,515 in 2023[5] - Total revenue for the year ended December 31, 2024, was HKD 1,865,354,000, with external sales contributing HKD 1,865,354,000[18] - The total operating profit for the year was HKD 27,914,000, after accounting for unallocated corporate expenses of HKD 18,971,000[18] - The pre-tax profit for the year was HKD 27,137,000, with income tax expenses of HKD 16,074,000[18] - The annual profit for the year was HKD 11,063,000[18] - Other income, gains, and losses netted approximately HKD 35,180,000 for the year ending December 31, 2024, a 117.0% increase from HKD 16,212,000 in 2023, primarily due to increased government subsidies and favorable exchange rate fluctuations[42] Assets and Liabilities - Total assets decreased to HKD 1,569,405 from HKD 1,821,573 in the previous year[6] - Current liabilities reduced to HKD 825,004 from HKD 997,964 in 2023[6] - Cash and bank balances decreased to HKD 519,030 from HKD 660,468 in the previous year[6] - The net asset value decreased to HKD 1,310,517 from HKD 1,428,864 in 2023[7] - The company reported a net cash balance of approximately HKD 392,068,000 as of December 31, 2024, down from HKD 416,947,000 the previous year, with total equity attributable to shareholders at approximately HKD 1,241,637,000[64] - As of December 31, 2024, the total outstanding bank loans amounted to approximately HKD 115,259,000, a decrease from HKD 234,598,000 the previous year, with cash and bank balances at approximately HKD 519,030,000[64] Dividends - The company did not recommend a final dividend for the year ended December 31, 2024[2] - The company did not recommend a final dividend for the year ending December 31, 2024, consistent with the previous year[37] - The group will not propose a final dividend for the year ending December 31, 2024, maintaining a focus on financial stability[78] Business Segments - The industrial consumables segment generated revenue of HKD 417,473,000, while the injection molded products segment generated HKD 573,407,000[18] - The machinery segment reported a loss of HKD 18,798,000, while the machinery leasing segment achieved a profit of HKD 1,615,000[18] - Revenue from external sales in the industrial consumables segment was HKD 388,339,000, while the injection molded products segment generated HKD 525,873,000[19] - The printed circuit board business reported a profit of HKD 7,690,000 for the period ending August 21, 2024, compared to a loss of HKD 81,213,000 in the previous year[29] - Revenue for the printed circuit board business decreased to HKD 154,446,000 in 2024 from HKD 453,153,000 in 2023, representing a decline of approximately 66%[29] - The trading business of printed circuit boards recorded performance similar to the previous year, leading the company to decide to terminate this business segment to focus on areas with better cash flow potential, resulting in the sale of 52% of the issued shares for HKD 52,993,165[60] Expenses - Distribution expenses for the year ending December 31, 2024, were approximately HKD 179,088,000, representing 9.6% of revenue, up from 9.0% in 2023[43] - Administrative expenses increased by 10.1% to approximately HKD 173,099,000 for the year ending December 31, 2024, due to rising employee costs[44] - Financial expenses decreased significantly to HKD 5,000 in 2024 from HKD 1,627,000 in 2023[29] - Financial expenses decreased by 7.3% to approximately HKD 13,838,000 for the year ending December 31, 2024, due to partial repayment of bank loans[45] Market and Strategy - The company is focusing on digital transformation by integrating various systems and upgrading the manufacturing execution system (MES), expected to be fully operational by early next year[48] - The company plans to expand its market share in the standard machine market with updated models like SeKIII, JSeIII, and Se5, while targeting specialized markets with tailored solutions[49] - The company is committed to developing low-carbon materials and innovative processes in response to global demand for sustainable production[59] - The group is actively expanding its overseas market presence and product offerings through partnerships with new suppliers in the industrial consumables trading business[73] Workforce and Training - The workforce increased to 1,743 employees as of December 31, 2024, compared to 1,717 the previous year, with a gender ratio of 29:71 among non-director employees[69] - The company has implemented a talent development plan focusing on diversity in recruitment and retention, ensuring equal opportunities in various aspects of employment[69] - Training programs are provided to employees across all levels to enhance their skills and knowledge in production, operations, and management[70] Future Outlook - The group anticipates a challenging yet opportunity-filled year in 2025, with a more optimistic macroeconomic outlook for China compared to 2024 due to government stimulus policies[71] - Manufacturing investment sentiment is expected to slightly rebound after several years of weakness, driven by rapid advancements in artificial intelligence[72] - High-end equipment users are increasingly demanding customized solutions for improved energy efficiency and reduced labor costs, which the group aims to address through enhanced productivity and automation[73]

Financial Performance - Revenue for the six months ended June 30, 2024, was HK$1,004,620,000, a decrease of 11.4% compared to HK$1,133,707,000 in the same period of 2023[6] - Gross profit for the period was HK$171,963,000, down from HK$188,085,000, reflecting a gross margin decline[6] - Operating profit decreased to HK$9,913,000 from HK$10,928,000, indicating a decline of 9.3% year-over-year[6] - Profit for the period was HK$1,572,000, a significant decrease from HK$2,298,000 in the previous year, representing a decline of 31.5%[6] - Basic and diluted earnings per share were (0.29) HK cents, compared to 0.41 HK cents in the same period last year[6] - Total comprehensive expense for the period was HK$8,385,000, compared to a total comprehensive expense of HK$39,231,000 in the previous year[7] - The company reported finance costs of HK$8,714,000, an increase from HK$7,795,000 in the previous year[6] - Investment income for the period was HK$5,334,000, up from HK$3,776,000 in the same period last year[6] Assets and Liabilities - As of June 30, 2024, total assets decreased to HK$1,738,535, down from HK$1,821,573 as of December 31, 2023, representing a decline of approximately 4.55%[8] - Current liabilities decreased to HK$947,247 from HK$997,964, a reduction of about 5.08%[9] - Net current assets stood at HK$791,288, down from HK$823,609, indicating a decrease of approximately 3.93%[9] - Non-current liabilities increased to HK$41,300 from HK$35,252, an increase of about 17.3%[9] - Total equity decreased to HK$1,376,304 from HK$1,428,864, a decline of approximately 3.67%[9] Segment Performance - Revenue from contracts with customers was HK$1,002,272,000, down from HK$1,126,243,000, reflecting a decline of 11% year-over-year[21] - Sales of machinery generated HK$438,267,000, an increase of 11.8% compared to HK$391,855,000 in 2023[21] - Revenue from finance lease income significantly decreased to HK$2,348,000 from HK$7,464,000, representing a decline of 68.6%[20] - Trading of industrial consumables revenue fell to HK$175,319,000, down 18.8% from HK$215,893,000 in the previous year[21] - The segment results showed a total operating profit of HK$9,913,000, with the machinery segment reporting a loss of HK$20,013,000, while the plastic products segment generated a profit of HK$17,397,000[26] Cash Flow and Financial Health - Net cash outflow from operating activities was HK$4,367, compared to an inflow of HK$65,632 in the same period last year, reflecting a significant decline[13] - Cash and cash equivalents at the end of the period were HK$548,698, an increase from HK$440,509 in the previous year, marking a rise of approximately 24.7%[13] - The company reported a loss of HK$2,493 for the period, compared to a profit of HK$3,569 in the previous year[11] - The company’s retained profits decreased to HK$557,300 from HK$603,594, a decline of about 7.66%[11] Market Conditions and Strategy - The company continues to focus on cost management and operational efficiency to navigate the challenging market conditions[6] - The company has identified a new reportable segment, "machinery leasing," which was separated from "other operations" to better analyze business performance[26] - The company is focusing on niche market-specific research and development, continuous quality improvement, and talent development to enhance its market position[92] - The machinery leasing business adopted a cautious approach with strict customer selection criteria to control financial risk, maintaining satisfactory financial health and risk exposure[93] Corporate Governance and Compliance - The company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2024[143] - The audit committee and remuneration committee are key governance structures within the Company[151] - The Company adheres to the Corporate Governance Code as part of its operational framework[150] Shareholder Information - Mr. Tang To holds 4,970,005 shares, representing approximately 52.30% of the total issued shares[136] - Mr. Tang Yu, Freeman is deemed to have an interest in 442,157,052 shares, accounting for about 51.30% of the total issued shares[137] - The total number of shares held by substantial shareholders reflects significant ownership concentration in the company[140]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 1,004,620, a decrease of 11.4% compared to HKD 1,133,707 for the same period in 2023[1] - Gross profit for the same period was HKD 171,963, down 8.6% from HKD 188,085 in 2023[2] - Operating profit decreased by 9.3% to HKD 9,913 from HKD 10,928 year-on-year[2] - Net profit for the period was HKD 1,572, representing a significant decline of 31.6% from HKD 2,298 in the previous year[1] - Total comprehensive income for the period was a loss of HKD 8,385, compared to a loss of HKD 39,231 in the same period last year[3] - The company reported a total revenue of HKD 1,004,620,000 for the six months ended June 30, 2024, compared to HKD 1,133,707,000 for the same period in 2023, representing a decrease of approximately 11.4%[13] - The operating profit for the six months ended June 30, 2024, was HKD 10,928,000, down from HKD 14,789,000 in the previous year, indicating a decline of about 26.4%[12] - The company recorded a pre-tax profit of HKD 9,056,000 for the six months ended June 30, 2024, compared to HKD 8,004,000 for the same period in 2023, reflecting an increase of approximately 13.1%[14] Dividends and Shareholder Returns - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[1] - The company did not recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous year[18] - The board did not recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous year[43] Assets and Liabilities - Non-current assets decreased to HKD 626,316 from HKD 640,507 as of December 31, 2023[4] - Current assets totaled HKD 1,738,535, down from HKD 1,821,573 at the end of 2023[4] - Cash and bank balances decreased to HKD 571,715 from HKD 660,468[4] - Total liabilities decreased to HKD 947,247 from HKD 997,964 as of December 31, 2023[4] - As of June 30, 2024, the total outstanding bank loans amounted to approximately HKD 238,070,000, an increase from HKD 234,598,000 as of December 31, 2023[36] - The net cash position of the group was approximately HKD 321,276,000 as of June 30, 2024, down from HKD 416,947,000 as of December 31, 2023[36] - The group had no significant contingent liabilities as of June 30, 2024, consistent with the previous reporting period[37] Business Segments and Operations - The company’s income from the industrial consumables segment was HKD 186,171,000, while the injection molded products segment generated HKD 275,128,000 for the six months ended June 30, 2024[11] - The company has identified five reporting segments, including industrial consumables trading and machinery manufacturing, to better analyze business performance and allocate resources[8] - The mechanical manufacturing business saw a recovery in sales and order intake from last year's low, particularly in the first quarter, despite facing challenges in demand and investment sentiment in the second quarter[27] - The extrusion, rubber injection molding, and hydraulic machine manufacturing businesses recorded sales growth, with rubber injection molding machines performing particularly well[28] - Sales and profits from the plastic packaging factory in Zhuhai slightly lagged behind last year's figures due to a significant slowdown in consumer spending and reduced demand from major dairy clients[30] - Sales and profits from the blow molding mannequin manufacturing plant in Dongguan continued to grow strongly, driven by partnerships with global sports brands[31] - The industrial consumables trading business experienced a slight decline in sales and profits due to weak demand and intense price competition in the market[34] Financial Management and Expenses - The company’s financial expenses for the six months ended June 30, 2024, were HKD 7,795,000, compared to HKD 8,714,000 in the previous year, showing a decrease of approximately 10.5%[14] - Financial expenses increased by 11.8% to approximately HKD 8,714,000, attributed to higher effective interest rates during the interest rate hike cycle[26] - Distribution expenses rose to approximately HKD 88,902,000, accounting for about 8.8% of revenue, up from 7.3% last year, mainly due to increased efforts in overseas market expansion[24] Future Outlook and Strategy - The company anticipates a cautious outlook for the second half of 2024 due to complex domestic and international environments, with a focus on capturing potential market opportunities[41] - The company plans to enhance its digital systems and increase R&D investment to maintain competitiveness in future market cycles[42] - The company plans to explore new supply sources and products to expand its product portfolio and customer base in the industrial consumables sector[34] - The company aims to enhance production connectivity and efficiency by fully deploying and integrating digital systems, including WMS, SRM, CRM, and PLM[27] Certifications and Compliance - The company has successfully obtained ISO 14064-3:2019 certification to comply with government carbon emission reduction policies[30] - The company has adhered to all applicable provisions of the Corporate Governance Code as per the Listing Rules during the six months ending June 30, 2024[45] Corporate Structure and Governance - The board consists of six directors, including two executive directors and three independent non-executive directors[47] - The total number of issued shares remained unchanged at 861,930,692 as of June 30, 2024[39] - The employee count decreased to 1,765 as of June 30, 2024, from 2,410 a year earlier, with a gender ratio of 31:69[40] Miscellaneous - The company completed the sale of its subsidiary, with no remaining interest as of May 27, 2024, impacting the consolidation of its financial statements[38] - There were no purchases, sales, or redemptions of the company's listed securities during the six months ended June 30, 2024[44] - The interim results announcement is available on the company's website and the Hong Kong Stock Exchange website[46] - Other income, gains, and losses for the six months ended June 30, 2024, increased significantly to approximately HKD 22,156,000 from HKD 2,798,000 in the previous year, primarily due to increased government subsidies[23] - The company plans to launch a more energy-efficient model (Se5H) in the second half of the year, following the successful introduction of a high-end model (Se5 series) last year[27] - The introduction of new machinery this year aims to achieve higher efficiency and meet strict quality standards[32] - The company is focusing on developing low-carbon materials to maintain a competitive edge in environmental, social, and governance goals[32] - The new factory in North China is expected to commence operations by mid-2025, with construction set to be completed this year, marking a key asset for business expansion in the food packaging market[31] - The new ERP system and the custom-developed "iSee" MES have been successfully integrated, enhancing production efficiency and product quality tracking[31]

Economic Environment - The traditional industrial market has continued its weak posture, with ongoing geopolitical tensions severely dampening international trade stability and economic growth [14]. - Many manufacturing enterprises are shifting operations from China to ASEAN and Mexico due to targeted policies from the United States, resulting in reduced domestic market demand [15]. - The China market did not significantly recover post-pandemic, with a stagnant real estate market impacting related industries and leading to intense competition [16]. - The overall market landscape for the company is expected to be challenging, with large corporations shifting to a "China + N" sourcing strategy [89]. - The Group anticipates continued challenges in the Chinese market, particularly in traditional manufacturing sectors, due to cautious consumer spending and over-capacity [119]. - The ongoing geopolitical tensions between the US and China are expected to impact sourcing and production strategies for companies exporting to Western markets [119]. Financial Performance - The Group's revenue for the year ended December 31, 2023, was approximately HK$2,176,900,000, a decrease of 7.0% compared to HK$2,339,898,000 in 2022, primarily due to stagnant manufacturing demands and subdued consumer confidence [29]. - The net loss for the year was approximately HK$59,515,000, a significant turnaround from a net profit of approximately HK$18,837,000 in 2022, mainly due to non-recurring losses from disposals and goodwill impairment [31]. - Other income, gain, and loss decreased by 22.2% to approximately HK$18,017,000, with a net exchange loss of approximately HK$2,162,000 recorded for the year [32]. - The Group's total outstanding bank borrowings amounted to approximately HK$234,598,000, an increase from approximately HK$227,595,000 as of December 31, 2022 [99]. - The Group's net cash position as of December 31, 2023, was approximately HK$416,947,000, up from approximately HK$292,614,000 in the previous year [105]. - The total equity attributable to equity shareholders of the Company as of December 31, 2023, was approximately HK$1,271,722,000, a decrease from approximately HK$1,322,122,000 in 2022 [105]. - The Group recorded a net loss of approximately HK$59,515,000 for the year ended December 31, 2023, compared to a net profit of approximately HK$18,837,000 in 2022 [155][161]. - The Board did not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with the previous year [154][160]. Operational Strategies - The Group did not implement staff cutbacks but instead increased investments in production equipment, environmental facilities, talent recruitment, and ongoing staff training [17]. - The Group plans to maintain stable cash flow, focus on research and development, and continue business expansion despite the challenging economic environment [23]. - The Group recognized the need to improve operational management and product digitization to enhance customer satisfaction and product value [23]. - The Group will continue to invest in research and development, internal management improvements, and talent development to drive sustainable growth [58]. - The company plans to focus on brand image and corporate culture development to support sustained high-speed growth in the coming years [61]. - The Group's machinery manufacturing business will increase resources for export growth, targeting regions like Southeast Asia and South America [123]. Market and Product Development - Sales of industry-specific customized solutions for consumer packaging, particularly the PET preform applications machine series, continued to grow despite a decline in standard machine sales [47]. - The D-series all-electric machine solution achieved sales targets, with high customer satisfaction noted in the medical applications industry for its precision and reduced energy usage [47]. - Upcoming product developments will focus on reducing energy consumption and specialized industry applications, with a new standard machine series featuring clamping forces up to 3,000 tons [48]. - Significant upcoming product research and development includes ultra-large rubber track belt machines and automated telecommunication fiber optic conduit production lines [57]. - Future product development will include large rubber track machines and automated production lines, enhancing competitiveness in the market [60]. Cost Management and Efficiency - The gross profit for the year was approximately HK$369,665,000, with a gross profit margin of 17.0%, an increase from 15.9% in the previous year, attributed to reduced labor costs and lower-cost raw materials [30]. - Selling and distribution costs were approximately HK$162,771,000, representing 7.5% of revenue, which remained stable compared to the previous year [38]. - Administrative expenses were approximately HK$191,068,000, similar to last year due to effective cost measures implemented by the Group [39]. - Finance costs increased by 23.4% to approximately HK$16,549,000, driven by higher effective interest rates due to the latest rate hike cycle [40]. - The Group's administrative expenses for the year ended December 31, 2023, were approximately HKD 191,068,000, slightly down from HKD 195,245,000 in 2022, indicating effective cost control [43]. Employee and Stakeholder Engagement - Employees are considered the most important and valuable assets of the Group, with most management serving for a long time [197]. - The Group offers competitive salaries and benefits, along with training programs to enhance employees' skills and knowledge [197]. - Various activities, such as annual dinners and sports events, are organized to strengthen communication and partnership among employees and management [197]. - The success of the Group relies on the support of key stakeholders, including employees, customers, suppliers, shareholders, government, and regulatory bodies [199]. Risk Management - The Group is facing significant market risks due to weak global economic recovery, which may materially impact its financial position [163]. - Competitive pressures in the market are affecting profitability, prompting the Group to implement cost-effective solutions through digitalization and refined techniques [165]. - Supply chain risks are heightened by rising trade protectionism and geopolitical issues, leading to potential material shortages and delivery delays [166]. - The Group implements flexible supply chain management to mitigate risks, including careful selection of suppliers and enhanced inventory control [169]. - Environmental risks related to production include carbon footprint and greenhouse gas emissions, with proactive strategies in place for compliance and monitoring [171]. - Social risks encompass pay equality and workplace safety, with a focus on maintaining a caring work environment to support sustainable development [173]. - Legal and regulatory compliance is critical, with ongoing monitoring of legislative changes to avoid penalties and operational disruptions [174]. - Financial risks include foreign currency, interest rate, price, credit, and liquidity risks, detailed in the consolidated financial statements [175].

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 2,176,900, a decrease of 7.0% compared to HKD 2,339,898 in 2022[2] - Gross profit for the same period was HKD 369,665, down 0.7% from HKD 372,304 in 2022[5] - Operating profit plummeted by 84.1% to HKD 4,743 from HKD 29,758 in the previous year[5] - The company reported a net loss of HKD 59,515 for the year, compared to a profit of HKD 18,837 in 2022[5] - Total comprehensive loss for the year was HKD 74,089, compared to a loss of HKD 103,702 in 2022[6] - Basic loss per share for the year was HKD 5.08, compared to earnings of HKD 2.83 per share in 2022[5] - The company reported a total operating loss of HKD 42,458,000 for the year, compared to a profit of HKD 33,071,000 in the previous year[22][23] - The company incurred a net loss of HKD 59,515,000 for the year ended December 31, 2023, compared to a profit of HKD 18,837,000 in 2022[22][23] - Other income, gains, and losses for the year ended December 31, 2023, amounted to approximately HKD 18,017,000, a decrease of 22.2% from HKD 23,161,000 in 2022, mainly due to reduced foreign exchange gains, government subsidies, and rental income[45] Assets and Liabilities - Non-current assets decreased to HKD 640,507 from HKD 733,620 in the previous year[8] - Current assets totaled HKD 1,821,573, down from HKD 1,891,830 in 2022[8] - The company's equity decreased to HKD 1,428,864 from HKD 1,538,396 in the previous year[9] - The group's trade receivables decreased to HKD 539,287,000 in 2023 from HKD 677,708,000 in 2022, with net trade receivables at HKD 460,212,000 after accounting for impairment provisions[35] - The group's trade and other payables amounted to HKD 681,902,000 in 2023, slightly down from HKD 691,938,000 in 2022, with trade payables aging analysis indicating HKD 410,179,000 within three months[38] - As of December 31, 2023, the group's outstanding bank loans totaled approximately HKD 234.6 million, an increase from HKD 227.6 million on December 31, 2022[68] - The net cash balance as of December 31, 2023, was approximately HKD 416.9 million, up from HKD 292.6 million a year earlier[68] Revenue Breakdown - Revenue from Hong Kong decreased to HKD 211,280,000 in 2023 from HKD 313,799,000 in 2022, reflecting a decline of 32.6%[24] - Revenue from Mainland China was HKD 1,582,118,000, down from HKD 1,644,553,000 in the previous year, a decrease of 3.79%[24] - The new reporting segment "Machinery Rental" generated revenue of HKD 10,200,000, contributing to the overall performance analysis[21] - The group's revenue for the year ended December 31, 2023, was approximately HKD 2,176,900,000, a decrease of 7.0% compared to HKD 2,339,898,000 in 2022, primarily due to weak global economic recovery and stagnant demand in the manufacturing sector[42] Expenses - Distribution expenses for the year were approximately HKD 162,771,000, accounting for about 7.5% of revenue, which remained similar to the previous year[46] - Administrative expenses were approximately HKD 191,068,000, slightly down from HKD 195,245,000 in 2022, reflecting effective cost control measures[47] - Financial expenses increased by 23.4% to approximately HKD 16,549,000 due to higher effective interest rates amid a new round of interest rate hikes[48] Business Strategy and Outlook - The company plans to enhance sales of its all-electric series and is set to launch a new standard machine series with a clamping force of up to 3,000 tons, emphasizing energy efficiency and cost-effectiveness[50] - Future product development will focus on reducing energy consumption and deepening customized applications for specific industries, supported by a digital smart platform, "iSee 4.0"[52] - The company is optimistic about its machinery rental business, which has expanded into third-party financing leases, supported by strict internal controls[55] - The company plans to collaborate with the injection molding business team to launch a customized new feature for the "iSee" manufacturing execution system, enhancing user experience[57] - The expansion plan in North China is in a critical preparation stage, focusing on factory layout planning and automation production system[57] - The company is committed to improving product quality and production efficiency to meet strict quality assurance measures, while also investing in automation equipment to lower labor costs[58] - The group plans to establish a new sales office and warehouse in Vietnam to better meet customer supply chain management needs, expected to be operational next year[66] Market Challenges - The company is facing challenges due to negative population growth trends in China, particularly in the infant formula packaging sector, prompting exploration of new opportunities in adult and senior dairy products and health supplements[56] - The group anticipates ongoing challenges in the Chinese market, particularly in traditional manufacturing sectors like automotive and consumer goods, due to cautious consumer spending[76] - The industrial consumables trade business experienced a slight decline in sales, with clients reducing orders amid a lack of expected recovery in the manufacturing sector[63] Innovation and Development - Continuous investment in R&D innovation and attracting young talent will be prioritized to strengthen the company's overall competitive advantage[78] - The group will focus on launching cost-effective integrated technology solutions in its industrial consumables trading business, including servo drives, motors, and controllers[77] - The group aims to expand its export business in the machinery manufacturing sector, capitalizing on the demand for advanced machinery made in China[77] - The company plans to reduce its carbon footprint by adopting recycled resins and lowering energy consumption to meet customer environmental requirements[59] Risk Management - The group will enhance risk control measures and closely monitor customer dynamics in response to potential risks from overcapacity in the manufacturing sector[65] - The group has no significant contingent liabilities as of December 31, 2023[71] - The injection molding business is expected to continue its steady growth, driven by stable demand from long-term loyal customers[78]

Financial Performance - Revenue for the six months ended June 30, 2023, was HK$1,133,707,000, a decrease of 7.4% compared to HK$1,224,571,000 in the same period of 2022[10]. - Gross profit for the same period was HK$188,085,000, slightly down from HK$189,237,000, resulting in a gross margin of 16.6%[10]. - Operating profit decreased to HK$10,928,000 from HK$12,338,000, reflecting a decline of 11.4% year-over-year[10]. - Profit for the period increased to HK$2,298,000, compared to HK$1,648,000 in the previous year, marking a growth of 39.4%[13]. - Earnings per share for the period was 0.41 HK cents, down from 1.00 HK cent in the same period last year[10]. - Total comprehensive expense for the period was HK$39,231,000, an improvement from HK$60,443,000 in the previous year[13]. - The company reported finance costs of HK$7,795,000, an increase from HK$6,134,000 in the previous year[10]. - Other income and gains decreased to HK$2,798,000 from HK$7,384,000, indicating a decline of 62.1%[10]. - The share of results of associates was HK$2,147,000, slightly down from HK$2,213,000[10]. - The company recorded a profit of HK$3,569,000 for the six months ended June 30, 2023, down from HK$8,633,000 in the same period of the previous year[19]. Assets and Liabilities - As of June 30, 2023, total assets less current liabilities amounted to HK$1,547,725,000, a decrease of 2.9% from HK$1,594,261,000 as of December 31, 2022[15]. - Net current assets decreased to HK$829,842,000 from HK$860,641,000, reflecting a decline of 3.6%[15]. - Total equity as of June 30, 2023, was HK$1,498,719,000, down from HK$1,538,396,000 at the end of 2022, a decrease of 2.6%[17]. - The company’s cash and cash equivalents at the end of the period were HK$440,509,000, compared to HK$359,034,000 at the end of June 2022, showing an increase of 22.7%[23]. - The company’s inventories increased to HK$456,669,000 as of June 30, 2023, from HK$450,811,000 at the end of 2022, reflecting a growth of 1.9%[15]. - The company’s trade and other receivables decreased to HK$743,043,000 from HK$769,278,000, a decline of 3.4%[15]. - The company’s bank borrowings increased to HK$247,972,000 from HK$225,127,000, an increase of 10.0%[15]. - Total liabilities as of June 30, 2023, amounted to HK$1,099,862,000, with segment liabilities for machinery being HK$438,004,000[54]. Revenue Breakdown - Revenue from the sale of goods was HK$1,124,395,000, down from HK$1,208,883,000, reflecting a decline of 7.0%[40]. - Revenue from finance lease income decreased significantly to HK$7,464,000 from HK$13,319,000, representing a decline of 44.7%[40]. - External sales by segment included HK$215,893,000 from industrial consumables, HK$264,517,000 from plastic products, HK$393,703,000 from machinery, and HK$252,130,000 from printed circuit boards[51]. - Revenue from Hong Kong decreased to HK$124,209,000 from HK$171,577,000, a decline of 27.6%[65]. - Revenue from Mainland China was HK$818,041,000, down 6.4% from HK$874,268,000 in 2022[65]. Segment Performance - Segment results showed a profit of HK$12,193,000 for industrial consumables, HK$13,686,000 for plastic products, while machinery and printed circuit boards reported losses of HK$6,454,000 and HK$1,564,000 respectively, leading to a total segment profit of HK$22,201,000[51]. - Segment assets as of June 30, 2023, totaled HK$2,225,301,000, with the largest contribution from machinery at HK$1,011,498,000[54]. - The Group's PCB processing business will implement measures to reduce losses amid fierce competition[195][199]. Operational Insights - The Group's management noted stagnant manufacturing demands in China and globally as a key factor affecting revenue[112]. - The injection molding machine (IMM) manufacturing business stabilized, with overall machinery demand weaker than anticipated, influenced by ongoing challenges in the housing market and consumer spending in China[121]. - The Group plans to launch a new series of high energy-saving machines and hybrid solutions, as well as full electric machines with greater clamping force this year[123]. - The management team believes that enhancing customer value through innovation and fast response in technical discussions will strengthen the Group's competitive edge[131]. - The management team is focused on reducing operating costs by cutting frontline workforce and exploring alternatives for lower-cost raw materials[155]. Future Outlook - The Group anticipates continued weakness in most industrial sectors for the remainder of the year due to a lack of broad demand-driven stimulus policies[190][192]. - The machinery manufacturing and industrial consumables trading businesses will focus on growth opportunities in dynamic industries such as renewable energy and electric vehicles[195][199]. - The Group will continue to invest in research and development, digital platforms, and talent development despite less optimistic operating conditions[196][199]. - Operating cash flow, foreign exchange risks, and finance costs will be closely managed in a challenging market environment[196][199].

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的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於香港註冊成立之有限公司） 截至二零二三年六月三十日止六個月之中期業績 業績摘要 截至六月三十日止六個月 二零二三年 二零二二年 （未經審核）（未經審核） 千港元 千港元 變動 收入 1,133,707 1,224,571 -7.4% 毛利 188,085 189,237 -0.6% 經營溢利 10,928 12,338 -11.4% 期內溢利 2,298 1,648 +39.4% 董事會不建議派發截至二零二三年六月三十日止六個月之中期股息（二零二二 年六月三十日：無）。 ...