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）。 ...

Market Challenges - The company faced significant challenges due to unpredictable market conditions, including the Russia-Ukraine conflict, which triggered global food and energy crises and led to soaring commodity prices and inflation[12]. - The Federal Reserve raised interest rates to curb inflation, resulting in foreign exchange rate volatility and slowing economic growth[12]. - Lockdowns imposed by the Chinese government due to COVID-19 outbreaks caused significant disruptions to the supply chain, impacting the company's operations[13]. - The geopolitical tensions and economic challenges are expected to persist, impacting global commodity supply and inflation[19]. - The pandemic and its variants have severely hindered global economies, particularly affecting China's economic growth and manufacturing demands[159]. Financial Performance - The Group's revenue for the year ended December 31, 2022, was approximately HK$2,339,898,000, a decrease of 23.9% compared to HK$3,075,305,000 in 2021[26]. - Gross profit for 2022 was approximately HK$372,304,000, down 31.6% from HK$544,491,000 in 2021, with a gross profit margin of 15.9% compared to 17.7% the previous year[27]. - The net profit for the year significantly decreased to approximately HK$18,837,000 from HK$84,205,000 in 2021, primarily due to the drop in gross profit[28]. - The Group recorded a net profit of approximately HK$18,837,000 for the year ended 31 December 2022, a decrease of 77.7% compared to approximately HK$84,205,000 in 2021[149]. - Basic earnings per share dropped to 2.83 HK cents, down 72.8% from 10.41 HK cents in 2021[186]. Cost Management - Administrative expenses decreased by 8.5% to approximately HK$195,245,000 from HK$213,423,000 in the previous year, attributed to effective cost measures[34]. - Selling and distribution costs decreased by 13.7% to approximately HK$170,462,000 from HK$197,414,000, mainly due to a reduction in sales commissions[35]. - Finance costs decreased by 24.4% to approximately HK$13,415,000 from HK$17,741,000, due to the gradual repayment of bank borrowings[36]. - The management team implemented cost reduction strategies, including realigning outsource orders and reducing frontline headcounts, to safeguard cash flow by lowering inventory levels and operating costs[77][80]. Operational Adaptations - Despite a decline in results, the company did not incur serious losses and managed to adapt to market challenges by developing high-end specialized products[14]. - The company emphasized flexibility and adaptability in its operations to meet unique market needs during the year[14]. - The Group plans to invest in optimizing production equipment and enhancing digital operations management to improve competitiveness[20]. - The Group aims to maintain healthy cash flows to support investments and navigate uncertain market dynamics[20]. Product Development and Innovation - The company continues to focus on innovation and product development to enhance its competitive position in the market[14]. - The D series all-electric injection molding machines were successfully launched and well received by key customers in the medical, electronics, and automotive industries[51][53]. - The Group is committed to long-term investments in the IMM business, including the commissioning of new machining centers and fully automated welding lines to boost productivity and quality[50]. - Ongoing investments in research and development will focus on novel technical differentiators and energy-efficient solutions[119]. Market Outlook - The overall economic environment led to a cautious outlook for future growth, with ongoing monitoring of market conditions necessary[12]. - The Group anticipates improved operating conditions for 2023 as China lifted COVID-19 restrictions, which is expected to stimulate consumption and business development activities[112]. - The Group maintains a cautiously optimistic outlook for the upcoming year, expecting steady growth from customers in lithium battery, renewable energy, and medical applications[91][94]. - The Group identifies strong opportunities in industries such as renewable energy, lithium batteries, electric vehicles, automation equipment, and eco-friendly materials, which are expected to continue thriving[118]. Risk Management - The Group acknowledges notable risks that may affect its financial position and business operations, emphasizing the importance of effective risk management[150]. - The Group's management believes that a proactive approach to risk mitigation is essential for safeguarding the interests of shareholders and stakeholders[150]. - The Sino-US relationship poses a significant geopolitical risk, affecting investment sentiments and the Group's business operations[173]. - The Group actively manages ESG-related risks through proactive strategies and compliance with environmental regulations[170]. Environmental and Social Responsibility - The Group is committed to energy conservation and emission reduction through various measures, including equipment improvements and waste management[193]. - The Group monitors and controls waste generation and greenhouse gas emissions, implementing measures such as using waterborne paint and installing solar panels[171]. - Social risks include maintaining pay equality and workplace safety, which are essential for the Group's sustainable development[172].

Financial Performance - Revenue for the six months ended June 30, 2022, was HK$1,224,571,000, a decrease of 18.3% from HK$1,499,998,000 in the same period of 2021[11]. - Gross profit for the period was HK$189,237,000, down 26.4% from HK$256,962,000 in 2021[11]. - Profit for the period was HK$1,648, a significant decline of 95.8% compared to HK$39,300 in the previous year[11]. - Earnings per share decreased to 1.00 HK cent from 4.67 HK cents, reflecting a drop of 78.6%[11]. - Total comprehensive expense for the period was HK$60,443,000, compared to a total comprehensive income of HK$54,998,000 in 2021[14]. - The company reported a share of other comprehensive expense of associates amounting to HK$1,516,000, compared to income of HK$382,000 in the previous year[14]. - The company experienced a gross profit margin of 15.5%, down from 17.1% in the previous year[11]. - The profit before tax for the period was HK$10,760,000, reflecting the company's financial performance[57]. - Profit attributable to equity shareholders for the six months ended June 30, 2022, was HK$8,633,000, down 78.5% from HK$40,215,000 in 2021[85]. Revenue Breakdown - Revenue from sales of goods was HK$1,208,883,000, down 18.6% from HK$1,485,337,000 in 2021[44]. - Revenue from contracts with customers totaled HK$1,211,252,000, a decline of 18.5% compared to HK$1,487,740,000 in the previous year[44]. - Revenue from Mainland China for the six months ended June 30, 2022, was HK$874,268,000, a decline of 23.9% from HK$1,149,419,000 in 2021[75]. - Revenue from Hong Kong decreased to HK$171,577,000, down 9.0% from HK$188,255,000 in the previous year[75]. - For the six months ended June 30, 2022, the total consolidated revenue was HK$1,224,571,000, with external sales from industrial consumables at HK$227,258,000, plastic products at HK$231,571,000, machinery at HK$442,572,000, and printed circuit boards at HK$309,851,000[59]. Expenses and Costs - Administrative expenses were HK$101,405,000, slightly reduced from HK$107,358,000 in 2021[11]. - Finance costs increased to HK$6,134,000 from HK$9,162,000, indicating a reduction in financial burden[11]. - Unallocated corporate expenses for the period were HK$14,907,000, impacting the overall operating profit[57]. - Finance costs decreased by 33.0% to approximately HK$6,134,000 from HK$9,162,000, mainly due to gradual repayment of bank borrowings[126]. Assets and Liabilities - As of June 30, 2022, total assets amounted to HK$2,090,359, a decrease of 8.3% from HK$2,290,000 as of December 31, 2021[19]. - Current liabilities decreased to HK$1,106,380, down from HK$1,246,243, representing a reduction of 11.3%[19]. - Total equity decreased to HK$1,580,081, down 3.7% from HK$1,640,524 as of December 31, 2021[21]. - Total liabilities as of June 30, 2022, were HK$1,174,750,000, with segment liabilities for machinery at HK$465,927,000[63]. - Total segment liabilities amounted to HK$977,920,000, with borrowings contributing HK$510,766,000[71]. Cash Flow - The company reported a net cash inflow from operating activities of HK$50,973 for the six months ended June 30, 2022, compared to a net outflow of HK$22,991 in the same period of 2021[27]. - Cash and cash equivalents at the end of the period were HK$359,034, down from HK$435,008 at the end of the previous year[27]. - The company experienced a net cash outflow from investing activities of HK$39,559 and from financing activities of HK$34,994 during the six months ended June 30, 2022[27]. - As of June 30, 2022, total outstanding bank borrowings amounted to approximately HK$277,370,000, down from HK$301,167,000 at the end of 2021[178]. Market and Operational Challenges - The machinery manufacturing business faced significant challenges, including weak market demand and high raw material prices, leading to a marked drop in sales and net profits[129]. - Orders from customer groups in infrastructure, electronics, and telecommunications saw the most significant declines, while medical supplies and daily necessities showed relative strength[130]. - The injection molding business faced significant challenges, with a notable decline in order volume compared to last year, attributed to high raw material prices and weak manufacturing demand in China and globally[133]. - The industrial consumables trading business underperformed due to high raw material costs and weak demand across various manufacturing sectors[169]. - Operations in Shanghai were shut down for over two months due to lockdowns, leading to a significant drop in sales[171]. Future Outlook and Strategies - The company is focusing on market expansion and new product development to recover from the current financial downturn[11]. - The Group plans to invest in the injection molding machine business for long-term growth, including new CNC machining centers and automated production lines[132]. - The management team is focused on increasing production efficiencies and cost control measures to sustain a healthy production scale[153]. - The management team aims to protect cash flow amid financial losses and does not foresee a quick turnaround in major customer orders[163]. - The macroeconomic outlook for the remainder of 2022 is challenging, with factors such as volatile raw material costs and rising inflation impacting business sentiment[197][199].

Financial Performance - The company reported a consolidated revenue of HKD 1.2 billion for the fiscal year 2021, representing a year-on-year increase of 15%[2]. - The Group's revenue for 2021 was approximately HK$3,075,305,000, representing a 26.5% increase from HK$2,432,021,000 in 2020, primarily driven by growth in plastic products processing and industrial consumables trading[63][64]. - The company reported a net profit of HKD 150 million, reflecting a 12% increase compared to the previous year[2]. - Gross profit increased by 33.5% to approximately HK$544,491,000, with a gross profit margin rising by 0.9 percentage points to 17.7%[65][68]. - Net profit for the year surged by 225.4% to approximately HK$84,205,000, attributed to improved gross profit margins and better cost control[66][69]. - Administrative expenses decreased by 4.2% to approximately HK$213,423,000 due to effective cost measures implemented by the Group[72][76]. - Selling and distribution costs rose by 30.6% to approximately HK$197,414,000, mainly due to a significant increase in sales commissions[73][74]. - Finance costs decreased by 12.7% to approximately HK$17,741,000, primarily due to the gradual repayment of bank borrowings[75][76]. - Other income decreased by 58.0% from approximately HK$15,829,000 in 2020 to approximately HK$6,646,000 in 2021, mainly due to a reduction in government grants[77][78]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 25% growth in that region over the next two years[2]. - New product launches are expected to contribute an additional HKD 200 million in revenue in 2022, with a focus on innovative machinery solutions[2]. - Future guidance estimates a revenue growth of 10-15% for 2022, driven by increased demand and market expansion efforts[2]. - The company is exploring potential acquisitions to enhance its product portfolio and market share, with a focus on complementary businesses[2]. - A new strategic partnership has been established with a leading technology firm to co-develop advanced machinery solutions, expected to launch in Q3 2022[2]. - The Group plans to continue investing in research, development, and innovation, while upgrading production equipment to meet new market requirements[56][57]. - The Group will focus on key industry markets such as renewable energy, electric vehicles, and medical equipment, foreseeing long-term growth potential in these sectors[176]. Challenges and Economic Environment - The COVID-19 pandemic continues to negatively impact the global economy, but the PRC has seen a recovery with strong international orders and significant exports of anti-pandemic items and consumer goods[45]. - Continuous surges in raw material prices, energy costs, and shipping expenses have created a challenging operating environment[47]. - The company anticipates continued challenges in 2022, including rising raw material prices and potential COVID-19 mutations[51]. - Global inflation and tapering of monetary-fiscal stimulus in European and American countries may soften the recovery of the global economy[52]. - The business environment is increasingly uncertain due to geopolitical factors and rising protectionism[52]. - The Group does not anticipate a repeat of the broad-based strength in the manufacturing sectors in the PRC as experienced in the first half of 2021, expecting a continuation of demand pullback[168]. - The outlook for the upcoming year is challenging, with expected steady consumer spending and high raw material costs affecting the household appliance market[116]. Operational Performance - The machinery manufacturing and industrial consumables trading businesses achieved satisfactory results, while the plastic products processing business maintained steady growth[47]. - The printed circuit boards processing business is facing new challenges in the current business environment[47]. - Strong order intake in the first half of 2021 led to peak production capacity, but demand pulled back significantly in the second half due to rising raw material costs and supply chain disruptions[82]. - The industrial consumables trading business achieved significant growth in sales and profits, driven by strong demand from sectors such as semiconductors and consumer electronics[135]. - The PCB processing business experienced a decline in profits despite increased sales volume, primarily due to soaring copper prices and rising raw material costs[125]. - The company is facing difficulties in recruiting workers post-Chinese New Year, leading to reliance on temporary labor[47]. Research and Development - The company has allocated HKD 50 million for research and development in new technologies, aiming to enhance product efficiency and sustainability[2]. - Significant awards were received for research and development, including recognition for innovative production machines and high-tech products[96]. - The company continues to focus on developing biodegradable plastic packaging solutions to align with eco-friendly trends and carbon reduction policies[102]. - The management team is enhancing digital smart manufacturing systems for real-time production monitoring and quality control improvements[102]. Management and Leadership - Mr. Tang To has over 40 years of experience in manufacturing and trading businesses[181]. - Mr. Tang Yu, the CEO, has a background in commercial banking and has been with the Group since 2006[182]. - Mr. Kan Wai Wah has over 40 years of experience in corporate strategy and management[186]. - Mr. Qu Jinping has over 30 years of experience in polymer dynamic plasticizing processing technology[187]. - Ms. Yeung Shuk Fan has over 30 years of experience in the finance sector and holds a Master degree in Business Administration[190]. - Mr. Cheng Tak Yin has almost 50 years of experience in business management[192]. - Mr. Huang Zhi Wei has extensive experience in government authorities and business management in Guangdong Province[193]. - Mr. Man Chi Fai has over 20 years of experience in plastic injection moulding and project management[197]. - Mr. Ye Yueran has over 10 years of experience in manufacturing machinery[198]. - Mr. Yip Kar Shun has over 40 years of experience in electronic production and management[199]. Financial Position - The Group's total outstanding bank borrowings as of December 31, 2021, amounted to approximately HK$301.17 million, a decrease from approximately HK$322.34 million in the previous year[152]. - The net cash position of the Group as of December 31, 2021, was approximately HK$53.42 million, down from approximately HK$116.49 million in 2020[153]. - Total equity attributable to equity shareholders increased to approximately HK$1.41 billion as of December 31, 2021, compared to approximately HK$1.27 billion in the previous year[153]. - The Group's gearing ratio was not presented as it maintained a net cash position as of December 31, 2021[154].

Financial Performance - Revenue for the six months ended June 30, 2021, was HK$1,499,998,000, representing a 47.5% increase from HK$1,015,273,000 in the same period of 2020[13]. - Gross profit for the period was HK$256,962,000, with a gross margin of approximately 17.1%, compared to HK$161,790,000 in 2020[13]. - Operating profit increased significantly to HK$54,124,000, compared to HK$5,983,000 in the previous year, marking a substantial improvement in operational efficiency[13]. - Profit for the period was HK$39,300,000, a turnaround from a loss of HK$8,993,000 in the same period last year[13]. - Basic earnings per share for the period was 4.67 HK cents, compared to a loss of 1.11 HK cents per share in 2020[13]. - Total comprehensive income for the period was HK$54,998,000, compared to a loss of HK$31,345,000 in the previous year[16]. - The company reported a share of results from associates amounting to HK$1,099,000, up from HK$227,000 in 2020, indicating improved performance from joint ventures[13]. - Finance costs decreased to HK$9,162,000 from HK$10,815,000, reflecting better debt management[13]. - Profit for the period was HK$40,215, compared to a loss of HK$9,554 in the previous period[25]. - The company reported a total comprehensive income of HK$53,926 for the period ended June 30, 2021[25]. Revenue Breakdown - Revenue from sales of goods was HK$1,485,337,000, up from HK$1,005,773,000, indicating a growth of 47.5% year-over-year[49]. - Revenue from the trading of industrial consumables reached HK$250,690,000, up from HK$140,430,000 in 2020, marking an increase of 78.7%[53]. - Sales of machinery amounted to HK$583,592,000, compared to HK$367,131,000 in 2020, reflecting a growth of 58.9%[53]. - Revenue from Mainland China increased significantly to HK$1,149,419,000, up from HK$727,341,000 in 2020, representing a growth of approximately 57.8%[84]. - Revenue from Hong Kong market was HK$188,255,000, an increase from HK$172,703,000 in 2020[84]. Assets and Liabilities - Total assets as of June 30, 2021, amounted to HK$2,196,644, an increase of 10.5% from HK$1,987,282 on December 31, 2020[18]. - Total consolidated assets as of June 30, 2021, amounted to HK$2,834,678,000, with total liabilities of HK$1,334,695,000[80]. - Total liabilities of HK$1,467,522,000 as of June 30, 2021[71]. - Total trade receivables increased to HK$847,758,000 as of June 30, 2021, compared to HK$741,416,000 as of December 31, 2020, representing a growth of 14.3%[103]. - Total trade payables rose to HK$765,137,000 as of June 30, 2021, up from HK$650,120,000 as of December 31, 2020, indicating an increase of 17.7%[110]. Operational Insights - The company plans to continue expanding its market presence and investing in new product development to sustain growth[16]. - Management expressed optimism about future performance, citing ongoing improvements in operational metrics and market conditions[16]. - The Group faced challenges in the supply chain, with raw material prices surging and delivery delays impacting production and export sales[146]. - The Group's injection molding machine business experienced significant revenue growth in the first half of 2021 compared to the same period last year, driven by strong sales in the small and medium-sized machine series[148]. - The Group is investing in new machining centers and equipment to enhance production capacities, with deliveries expected in the second half of 2021[151]. Challenges and Risks - The Group faced severe supply chain challenges, with raw material prices, including cast iron and drive components, surging to historical highs, impacting delivery schedules and increasing transportation costs[149]. - Rising costs of plastic resins and labor are forecasted to negatively impact profits in the latter half of the year[167]. - The PCB processing business faced significant challenges due to soaring copper prices, which adversely affected profit despite increased sales volume[179]. - Labour shortages post-Chinese New Year impacted production efficiency, leading to increased subcontracting and production costs[179]. - Management is cautious about future sales momentum due to the unpredictable impact of the pandemic on both Mainland China and global markets[190][191]. Strategic Focus - The company plans to focus on developing long-term potential industries such as renewable clean energy, electric vehicles, and telecommunications[190][191]. - The Group is focusing on developing biodegradable plastics packaging and eco-friendly solutions, aligning with sustainability values of stakeholders[165]. - The company is committed to maintaining financial health and adequate liquidity, alongside talent recruitment and retention efforts[190][191]. - The company continues to invest in biodegradable plastic packaging solutions to align with sustainability values[166]. Miscellaneous - The company did not declare an interim dividend for the six months ended June 30, 2021, consistent with the previous year[95]. - The Group's average credit period granted to customers is between 90 to 120 days[103]. - There have been no material events since the end of the reporting period[197][199].

Financial Performance - The company reported a significant increase in revenue, achieving a total of $X million, representing a Y% growth compared to the previous year[124]. - The Group's revenue for the year was approximately HK$2,432,021,000, an increase of 3.7% compared to HK$2,344,923,000 in 2019[46]. - Gross profit increased by 8.1% to approximately HK$407,978,000, with a gross profit margin of 16.8%, up by 0.7 percentage points from the previous year[49]. - The net profit for the year was approximately HK$25,878,000, representing a 4.0% increase from HK$24,884,000 in 2019, primarily due to government grants[50]. - Operating profit decreased by 7.4% to HK$49,929,000 in 2020 from HK$53,894,000 in 2019[192]. - Profit before tax fell by 9.3% to HK$35,423,000 in 2020 compared to HK$39,075,000 in 2019[192]. - Basic earnings per share increased by 24.0% to 2.27 HK cents in 2020 from 1.83 HK cents in 2019[192]. - EBITDA increased significantly to HK$133,468,000 in 2020, up from HK$103,830,000 in 2019, reflecting a growth of about 28.5%[195]. Market Expansion and Product Development - The company provided a positive outlook for the next fiscal year, projecting revenue growth of A% and an increase in net profit margin to B%[124]. - New product launches are expected to contribute an additional C million in revenue, with a focus on D technology advancements[124]. - The company is expanding its market presence in E regions, aiming for a market share increase of F% by the end of the next fiscal year[124]. - The company completed a strategic acquisition of a competitor for $30 million, expected to enhance market position and operational capabilities[150]. - A new partnership with a leading technology firm was established to co-develop innovative solutions, projected to generate $20 million in additional revenue[151]. - The company plans to invest more resources in the IMM business, including capital expenditures for manufacturing capacity and increased research and development for new product offerings[69]. Challenges and Risk Management - The Group faced significant challenges due to the COVID-19 pandemic, impacting all business segments and leading to factory shutdowns and disrupted supply chains[58]. - The company faced challenges due to supply chain disruptions and logistics issues during the pandemic but managed to maintain high product quality and smooth operations[32]. - The Group anticipates challenges in sales growth due to significant recent surges in raw material prices, which are likely to remain volatile[143]. - The management emphasized the need for continuous innovation and prudent financial risk management to navigate the uncertain operating environment[42]. - The Group's financial position is sensitive to macroeconomic changes and uncertainties, particularly due to the US-Sino trade war and its effects on manufacturing industries in Mainland China[176]. - The management team maintained a commitment to prudent financial management, resulting in relatively healthy cash flow despite challenges in sales and marketing efforts[102]. Sustainability and Innovation - The management emphasized the importance of sustainability initiatives, with plans to reduce carbon emissions by H% over the next five years[124]. - The management team emphasized a focus on sustainability initiatives, aiming to reduce operational costs by 15% over the next three years[152]. - The company plans to continue investing in research and development and innovation to integrate new products and technologies across all businesses[39]. - Ongoing research and development efforts are focused on machinery manufacturing and plastic processing to innovate and enhance product value[143]. Employee and Operational Insights - The Group had a total of 2,779 employees as of December 31, 2020, down from 2,993 employees as of December 31, 2019[129]. - The Group provided training programs for staff at all levels to enhance their technical and professional skills[131]. - The Group's remuneration policy is based on qualifications, competence, performance, and prevailing market conditions[130]. - The Group's operations were significantly impacted by the COVID-19 pandemic, leading to restrictions on manufacturing and a delay in resumption of work after the Chinese New Year Holidays[176]. Financial Position and Cash Flow - As of December 31, 2020, the Group's total outstanding bank borrowings amounted to approximately HK$322,344,000, a decrease from approximately HK$353,219,000 as of December 31, 2019[123]. - The Group's net cash amounted to approximately HK$116,486,000 as of December 31, 2020, improving from a net debt of approximately HK$103,888,000 as of December 31, 2019[125]. - The Group's net debt to equity ratio improved from 8.9% as of December 31, 2019, to net cash as of December 31, 2020, due to strong net cash flow generated from operating activities[125]. - Cash and bank balances rose significantly by 58.2% to HK$494,669,000 in 2020 from HK$312,633,000 in 2019[192].