Financial Performance - The group's consolidated revenue for the period was approximately HKD 308 million, a 1% increase compared to HKD 306 million in the same period last year [5]. - Profit before tax for the period was approximately HKD 30 million, a 30% increase from HKD 23 million in the previous year, despite a one-time loss of HKD 6 million related to a strategic decision to terminate the use of an asset in New York [6]. - Revenue for the six months ended December 31, 2024, was HKD 308,356,000, a slight increase from HKD 306,417,000 in the same period of 2023, representing a growth of 0.6% [44]. - Gross profit for the same period was HKD 191,624,000, compared to HKD 189,403,000 in 2023, indicating a growth of 1.2% [44]. - Operating profit increased to HKD 28,060,000 from HKD 22,036,000, reflecting a significant growth of 27.3% year-over-year [44]. - The group achieved a gross profit of HKD 193,668,000 for the six months ended December 31, 2024, compared to HKD 190,552,000 in the previous year, representing a year-on-year increase of 1.6% [77]. - The group reported a net profit of HKD 22,274,000 for the six months ended December 31, 2024, compared to HKD 22,274,000 for the same period in 2023, showing no growth [56]. - The group’s net profit for the period was HKD 21,697,000, compared to HKD 22,274,000 in the previous year, showing a slight decline of 2.6% [80]. Profitability Metrics - The gross profit margin for the period remained stable at 62% [5]. - Basic earnings per share for the period was HKD 10.23, down from HKD 10.50 in the previous year, a decline of 2.6% [44]. - Profit attributable to owners of the company for the period was HKD 21,697,000, slightly down from HKD 22,274,000 in 2023, a decrease of 2.6% [44]. - The company's net cash generated from operating activities for the six months ended December 31, 2024, was HKD 16,749,000, a decrease of 62.9% compared to HKD 45,138,000 for the same period in 2023 [59]. Capital Expenditures and Investments - Capital expenditures for the period totaled approximately HKD 9 million, consistent with the previous year [15]. - Capital expenditures for the six months ended December 31, 2024, totaled HKD 8,972,000, compared to HKD 8,633,000 in the same period of 2023, indicating an increase of 3.9% [80]. - The company’s cash flow from investing activities showed a net inflow of HKD 18,610,000 for the six months ended December 31, 2024, compared to a net outflow of HKD 35,057,000 in the previous year [59]. Assets and Liabilities - Total assets as of December 31, 2024, were HKD 820,354,000, a decrease from HKD 832,566,000 as of June 30, 2024, representing a decline of 1.5% [50]. - Current assets decreased to HKD 383,182,000 from HKD 413,179,000, indicating a decline of 7.3% [50]. - Total liabilities decreased slightly from HKD 377,626,000 as of June 30, 2024, to HKD 374,964,000 as of December 31, 2024, indicating a reduction of about 0.4% [53]. - The group’s total liabilities as of December 31, 2024, included trade and other payables of HKD 58,124,000 and lease liabilities of HKD 163,052,000, indicating a total liability of HKD 221,176,000 [73]. Cash and Cash Equivalents - As of December 31, 2024, the group's cash and cash equivalents amounted to approximately HKD 233 million, down from HKD 263 million as of June 30, 2024 [17]. - Cash and cash equivalents decreased from HKD 193,697,000 at the end of 2023 to HKD 125,423,000 at the end of 2024, a decline of approximately 35.3% [59]. - The group reported cash and cash equivalents of approximately HKD 125,423,000 as of December 31, 2024, compared to HKD 133,772,000 as of June 30, 2024, indicating a decrease in liquidity [71]. Employee and Management Compensation - The total number of employees as of December 31, 2024, was 746, a slight increase from 740 at the end of June 2024 [20]. - The company reported a salary and short-term employee benefits for key management of HKD 22,044,000, an increase from HKD 20,311,000 year-on-year [111]. Dividends and Shareholder Returns - The board did not recommend an interim dividend for the period, consistent with the previous year [14]. - The company did not recommend an interim dividend for the six months ended December 31, 2024 [30]. - The company paid dividends of HKD 25,462,000 during the period, an increase from HKD 19,097,000 in the previous year, reflecting a rise of 33.3% [59]. - The company's distributable reserves as of December 31, 2024, were approximately HKD 488,453,000, a decrease from HKD 522,359,000 in 2023, with no dividends declared for the period [88]. Strategic Initiatives - The group plans to expand its US production base and strengthen brand influence in trade and consumer markets despite ongoing global economic uncertainties [13].

Financial Performance - The group's revenue for the six months ended December 31, 2024, was approximately HKD 308,356,000, representing a 1% increase from HKD 306,417,000 in the same period last year[4] - Operating profit for the same period was HKD 28,060,000, up from HKD 22,036,000, marking a significant improvement[4] - Profit attributable to the company's owners was HKD 21,697,000, slightly down from HKD 22,274,000, with earnings per share at HKD 10.23 compared to HKD 10.50 last year[4][6] - Revenue from external customers for the six months ended December 31, 2024, was HKD 308,356,000, an increase of 0.6% compared to HKD 306,417,000 for the same period in 2023[32] - Gross profit for the group was HKD 193,668,000, reflecting an increase from HKD 190,552,000, representing a growth of approximately 1.6%[32] - Operating profit increased to HKD 28,060,000 from HKD 22,036,000, marking a growth of about 27.3%[32] - Net profit for the period was HKD 21,697,000, compared to HKD 22,274,000, a decrease of approximately 2.6%[34] - Basic earnings per share decreased to HKD 10.23 for the six months ended December 31, 2024, compared to HKD 10.50 in 2023[44] Business Operations - The carpet business generated sales of approximately HKD 302,000,000, a 1% increase from HKD 299,000,000, with Asian and US sales growing by 10% each[7] - The group reported a pre-tax profit of approximately HKD 30,000,000, a 30% increase from HKD 23,000,000, despite a one-time loss of HKD 6,000,000 related to a strategic decision[6] - The group plans to expand its US production base and strengthen brand influence in trade and consumer markets despite ongoing global economic uncertainties[11] Financial Position - As of December 31, 2024, the group's cash and cash equivalents amounted to approximately HKD 233,000,000, down from HKD 263,000,000 as of June 30, 2024[14] - Total assets decreased from HKD 832,566,000 to HKD 820,354,000, a decline of approximately 1.5%[25] - Total equity decreased from HKD 454,940,000 to HKD 445,390,000, a decline of about 2.4%[27] - The company reported a decrease in inventory from HKD 49,515,000 to HKD 52,457,000, an increase of approximately 5.5%[25] - The company’s lease liabilities increased from HKD 88,320,000 to HKD 114,304,000, reflecting a rise of about 29.4%[27] - The company’s cash and cash equivalents decreased from HKD 133,772,000 to HKD 125,423,000, a decline of approximately 6.3%[25] - Trade receivables net amount as of December 31, 2024, was HKD 61,918,000, down from HKD 72,030,000 as of June 30, 2024[46] - Trade payables as of December 31, 2024, totaled HKD 127,397,000, a decrease from HKD 169,626,000 as of June 30, 2024[48] Capital Expenditures - Capital expenditures for the period totaled approximately HKD 9,000,000, consistent with the previous year[13] - Capital expenditures for the six months ended December 31, 2024, totaled HKD 8,972,000, compared to HKD 8,633,000 in the previous year, indicating a slight increase of 3.9%[32] Taxation and Income - Total income tax expense for the six months ended December 31, 2024, was HKD 7,925,000, significantly higher than HKD 476,000 in 2023, with Hong Kong tax contributing HKD 3,777,000[41] Dividends and Reserves - The board decided not to declare any interim dividend for the six months ended December 31, 2024, consistent with the previous year[42] - The company's distributable reserves as of December 31, 2024, were approximately HKD 488,453,000, down from HKD 522,359,000 in 2023[42] Governance and Compliance - The company has complied with the corporate governance code and maintained good corporate governance practices throughout the reporting period[50] Workforce - The group maintained a stable workforce of 746 employees, with a focus on retaining talent during economic and political uncertainties[18]

Financial Performance - For the fiscal year ending June 30, 2024, the total revenue was approximately HKD 640 million, representing a 7% increase from HKD 601 million in the previous year[13]. - The net profit attributable to shareholders was approximately HKD 42 million, a 10% increase from HKD 38 million in the prior year[13]. - The pre-tax profit grew by 19% to approximately HKD 48 million, driven by increased sales and strict cost control[13]. - The group's consolidated revenue for the fiscal year ending June 30, 2024, increased by 7% to approximately HKD 640 million, compared to approximately HKD 601 million in the previous year, marking the third consecutive year of growth since the COVID-19 pandemic[17]. - Operating profit rose by 14% to approximately HKD 46 million, up from approximately HKD 40 million recorded in the previous year[18]. - The company reported a basic earnings per share of HKD 19.85, up from HKD 18.11 in the previous year[7]. - The gross profit margin improved by 2% to 62%, driven by a favorable sales mix, increased productivity at the Xiamen production facility, and a decline in global freight costs[18]. - The carpet business generated revenue of approximately HKD 625 million, a 7% increase from approximately HKD 582 million last year, with Europe, the Middle East, and Africa showing the highest growth rate of 12%[18]. Assets and Liabilities - The company’s total assets as of June 30, 2024, were HKD 832,566 thousand, up from HKD 792,867 thousand the previous year[9]. - The total liabilities increased to HKD 377,626 thousand from HKD 364,273 thousand year-over-year[9]. - The total cash and bank balances as of June 30, 2024, amounted to approximately HKD 263 million, up from approximately HKD 218 million as of June 30, 2023, with no unsecured bank borrowings[23]. Corporate Governance - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange's listing rules for the fiscal year ending June 30, 2024[30]. - The board emphasizes the importance of diversity, including gender diversity, in business development and has adopted a diversity policy to ensure a varied composition of board members[32]. - The company is committed to high standards of corporate governance, focusing on transparency, independence, accountability, and fairness[31]. - The board believes that strong corporate governance is crucial for long-term performance and value creation for shareholders and stakeholders[31]. - The company has a mission and values aligned with its corporate culture, promoting integrity and ethical conduct throughout its operations[31]. - The board consists of experienced members with diverse backgrounds, enhancing decision-making and strategic direction[32]. - The company has established a nomination committee to review and recommend board appointments, ensuring a merit-based selection process[32]. - The board is committed to fostering an inclusive environment where all opinions are valued and discrimination is not tolerated[32]. Sustainability and ESG Initiatives - The company launched its first natural product series, the Biophilic Program, emphasizing its commitment to sustainability[13]. - The company is focusing on enhancing its sustainable development positioning through long-term planning and improving production efficiency at its Xiamen facility[19]. - The company achieved a silver rating in the Ecovadis sustainability assessment, ranking in the top 23% of evaluated companies, highlighting its commitment to sustainable development and responsible business operations[89]. - The company has set various key performance indicators related to environmental performance, which are monitored monthly to ensure targets are met[89]. - The company aims to achieve zero environmental pollution incidents and comply with water and air pollution discharge standards, with all targets currently met[90]. - The company is committed to reducing greenhouse gas emissions primarily from manufacturing and transportation, implementing measures to minimize transport-related emissions[91]. - The company has established an Environmental, Health, and Safety department to manage policies and procedures for sustainable operations[83]. - The company has implemented a comprehensive waste management policy to ensure compliance with waste regulations and minimize negative environmental impacts[98]. Employee Engagement and Welfare - The company provides extensive employee benefits, including accommodation, meal plans, paid leave, and additional medical insurance, contributing to a cohesive work environment and low turnover rates[102]. - The annual sports event saw over 150 employees participate, promoting a healthy corporate culture and employee engagement[104]. - A total of 531 employees participated in various training programs, including first aid training for Xiamen production workshop staff[109]. - The company emphasizes two-way communication with employees through annual performance evaluations to discuss career planning and areas for improvement[109]. Shareholder Communication - Shareholders have the right to speak and vote at general meetings, with all resolutions presented for voting according to listing rules[69]. - The company emphasizes effective, transparent, and continuous communication with shareholders and investors through various channels, including the company website and investor briefings[72]. - The board of directors and external auditors attended the annual general meeting on December 7, 2023, and deemed the shareholder communication policy effective during the review period[72]. Financial Reporting and Audit - The company’s financial performance is audited by KPMG, ensuring that the consolidated financial statements reflect the group's true and fair condition[40]. - The audit committee confirmed that the audited consolidated financial statements fairly present the group's financial position and performance for the year[55]. - The company is responsible for preparing financial statements that are free from material misstatement due to fraud or error, and for evaluating the group's ability to continue as a going concern[153]. Future Outlook - The company plans to continue investing in digital promotion and expanding its product diversification strategy[13]. - The company plans to continue its market expansion and product development strategies in the upcoming fiscal year[170].

Financial Performance - For the fiscal year ending June 30, 2024, the company reported total revenue of HKD 640,215,000, an increase of 6.6% from HKD 600,596,000 in the previous year[1] - Gross profit for the same period was HKD 395,013,000, up from HKD 359,914,000, reflecting a gross margin improvement[1] - Operating profit increased to HKD 45,557,000, compared to HKD 39,927,000 in the prior year, marking a growth of 14.1%[1] - Net profit attributable to shareholders rose to HKD 42,113,000, a 9.4% increase from HKD 38,424,000 year-over-year[1] - Basic and diluted earnings per share increased to HKD 19.85, up from HKD 18.11, representing a growth of 9.6%[1] - The group reported a net profit of HKD 42,113 thousand for the year ending June 30, 2024, compared to HKD 38,424 thousand for the previous year, indicating an increase of about 7.5%[10] - The pre-tax profit increased by 19% to approximately HKD 48 million, driven by increased sales, strict cost control, and improved manufacturing productivity[22] - Net profit attributable to shareholders was approximately HKD 42 million, a 10% increase from approximately HKD 38 million in the previous year[22] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 832,566,000, an increase from HKD 792,867,000 in the previous year[3] - The total assets of the group as of June 30, 2024, amounted to HKD 832,566 thousand, up from HKD 792,867 thousand in the previous year, reflecting a growth of approximately 5%[10] - The group’s total liabilities as of June 30, 2024, were HKD 377,626 thousand, an increase from HKD 364,273 thousand in the previous year, indicating a rise of approximately 3.7%[10] Equity and Dividends - The company’s total equity increased to HKD 454,940,000 from HKD 428,594,000, reflecting a growth of 6.1%[4] - The company declared a final dividend of HKD 25,462,000, compared to HKD 19,097,000 in the previous year, indicating a significant increase in shareholder returns[4] - The board proposed a final dividend of HKD 0.12 per share, totaling approximately HKD 25.46 million, an increase from HKD 19.1 million last year[33] Cash Flow and Liquidity - The company reported a net cash position of HKD 129,551,000, a decrease from HKD 217,657,000, indicating a shift in liquidity management[3] - The company reported a total cash and bank balance of approximately HKD 263 million as of June 30, 2024, compared to HKD 218 million the previous year[32] Operational Highlights - The company’s inventory increased to HKD 49,515,000 from HKD 46,418,000, suggesting a strategic buildup in stock levels[3] - The group’s operating profit before tax for the year was HKD 47,788 thousand, compared to HKD 40,012 thousand in the previous year, marking an increase of around 19.4%[10] - The group’s employee benefit expenses increased to HKD 214,251 thousand in the year ending June 30, 2024, compared to HKD 203,638 thousand in the previous year, reflecting an increase of about 5.3%[11] - The company continued to invest in innovation, technology, and training to enhance performance and maintain employee health and safety as a priority[22] - The company upgraded its Oracle ERP system to enhance operational support and is focusing on further developing automated sales processes[29] Market Performance - The carpet business generated revenue of approximately HKD 625 million, a 7% increase from HKD 582 million last year[25] - Sales in Europe, the Middle East, and Africa recorded the highest growth of 12%, while Asia and the Americas saw increases of 7% and 3%, respectively[25] - The overall gross profit margin for the carpet business improved to 63%, up from 61% last year, due to economies of scale and improved productivity[25] Strategic Initiatives - The company launched its first natural product series, the Biophilic Program, reflecting its commitment to sustainability[22] - The company strategically opened new showrooms in Shanghai, Hong Kong, and London to enhance brand visibility and drive retail growth[30] - The company launched new creative product lines, including the Callidus Guild series and The Biophilic Program, showcasing innovative craftsmanship[30] Financial Management and Governance - The audit committee was established on September 23, 2005, consisting of two independent non-executive directors and one non-executive director[38] - The audit committee held four meetings during the year to review interim and annual reports, external auditor plans, and discuss financial reporting and risk management[38] - The preliminary financial statements for the year ending June 30, 2024, were reviewed by the audit committee and found to have no discrepancies compared to the amounts audited by KPMG[39] - The board of directors confirmed their responsibility for preparing the consolidated financial statements and found no events that would raise significant doubt about the company's ability to continue as a going concern[39] - The company will publish its annual report for 2023/2024 at an appropriate time, which will be sent to shareholders and posted on the company's website[41]

Financial Performance - The group's consolidated revenue for the six months ended December 31, 2023, was approximately HKD 306 million, an increase of 16% compared to HKD 265 million in the same period last year[6]. - Profit before tax for the period was approximately HKD 23 million, significantly up from HKD 4 million in the previous year, benefiting from sales growth and improved operational efficiency[6]. - Sales in the carpet business reached approximately HKD 299 million, a 17% increase from HKD 256 million in the previous year, with Asia showing a 38% revenue growth[8]. - Revenue for the six months ended December 31, 2023, was HKD 306,417,000, representing a 15.6% increase from HKD 265,148,000 in the same period of 2022[44]. - Gross profit for the same period was HKD 189,403,000, up 25.4% from HKD 151,015,000 year-on-year[44]. - Operating profit increased significantly to HKD 22,036,000, compared to HKD 4,407,000 in the previous year, marking a 397.4% growth[44]. - Profit attributable to owners of the company for the period was HKD 22,274,000, a substantial increase from HKD 4,031,000 in the prior year[44]. - Basic and diluted earnings per share for the period were HKD 10.50, compared to HKD 1.90 in the same period last year, reflecting a 552.6% increase[44]. - The group reported a profit attributable to owners of HKD 22,274,000 for the six months ended December 31, 2023, compared to HKD 4,031,000 in the previous year, representing a significant increase[91]. - Basic earnings per share for the six months ended December 31, 2023, was HKD 10.50, up from HKD 1.90 in the same period of 2022[91]. Profitability and Margins - The gross profit margin increased by 5% to 62%, attributed to improved sales mix and increased production scale efficiency[6]. - The company reported a foreign exchange gain of HKD 7,866,000 during the period, contrasting with a loss of HKD 16,203,000 in the previous year, indicating improved currency management[47]. - The operating profit for the six months was HKD 22,036,000, reflecting a decrease in operating expenses to HKD 35,120,000[77]. Cash Flow and Liquidity - As of December 31, 2023, the group's cash and cash equivalents totaled approximately HKD 222 million, with no bank borrowings[16]. - Cash generated from operating activities was HKD 46,082,000, up from HKD 28,345,000, representing a 62.5% increase year-over-year[59]. - The company’s cash and cash equivalents at the end of the period were HKD 193,697,000, slightly down from HKD 217,657,000, showing a decrease of 11%[59]. - The net cash used in investing activities was HKD 35,057,000, compared to a net cash generated of HKD 31,655,000 in the previous year, indicating a shift in investment strategy[59]. Capital Expenditures and Investments - Capital expenditures for the period amounted to approximately HKD 9 million, up from HKD 4 million in the previous year[14]. - The company’s capital expenditure for the period was HKD 8,633,000, with significant investments in various operational segments[77]. - The company has approved but not contracted capital commitments of HKD 7,527,000 as of December 31, 2023[101]. Shareholder Returns and Dividends - The company did not recommend the payment of an interim dividend for the period, consistent with the previous year[13]. - The company paid dividends of HKD 19,097,000 during the period, compared to HKD 12,731,000 in the previous year, reflecting a 49% increase in shareholder returns[59]. - The group did not declare any interim dividend for the six months ended December 31, 2023, maintaining the same position as in 2022[88]. Assets and Liabilities - The company's total assets increased to HKD 802,192,000 as of December 31, 2023, up from HKD 792,867,000 as of June 30, 2023, reflecting a growth of 1.6%[50]. - Current assets rose to HKD 383,003,000, compared to HKD 356,837,000 in the previous period, indicating an increase of 7.3%[50]. - The company's equity attributable to owners increased to HKD 439,637,000 from HKD 428,594,000, marking a growth of 2.4%[53]. - The total contingent liabilities as of December 31, 2023, were approximately HKD 1 million, down from HKD 5 million as of June 30, 2023[21]. - Trade payables increased to HKD 32,638,000 as of December 31, 2023, up from HKD 29,158,000 on June 30, 2023, representing an increase of approximately 8.5%[101]. Employee and Management - Employee headcount as of December 31, 2023, was 745, slightly up from 736 at the end of June 2023[19]. - The company’s management compensation increased to HKD 20,311,000 for the six months ended December 31, 2023, up from HKD 17,117,000 in the same period last year, indicating a growth of approximately 18.5%[107]. Corporate Governance - The audit committee has reviewed the accounting principles and internal control procedures adopted by the company[26]. - The company appointed a new independent non-executive director on December 7, 2023, enhancing board diversity[37]. Risk Management - The company has maintained its risk management policies without any changes since June 30, 2023[70].

Financial Performance - The group's revenue for the six months ended December 31, 2023, was approximately HKD 306,417,000, representing a 16% increase compared to HKD 265,148,000 in the same period last year[4]. - Operating profit increased significantly to HKD 22,036,000 from HKD 4,407,000 year-on-year, reflecting improved sales and operational efficiency[4][6]. - Profit attributable to the company's equity holders surged to HKD 22,274,000, up from HKD 4,031,000 in the previous year, marking a substantial increase[4][6]. - Revenue from external customers reached HKD 306,417,000 for the six months ended December 31, 2023, compared to HKD 265,148,000 for the same period in 2022, representing a growth of 15.6%[32]. - Operating profit for the group was HKD 22,036,000, a significant increase from HKD 4,407,000 in the previous year, marking a rise of 397.5%[32]. - The group reported a net profit of HKD 22,274,000 for the period, compared to HKD 4,031,000 in the prior year, reflecting a growth of 452.5%[32]. - Basic earnings per share increased to HKD 10.50 for the six months ended December 31, 2023, compared to HKD 1.90 in the same period of 2022[44]. Sales and Market Performance - Sales in the carpet business reached approximately HKD 299,000,000, a 17% increase from HKD 256,000,000, with Asia showing a robust growth of 38%[7]. - The increase in trade receivables suggests a growing sales volume, which may indicate positive market demand[46]. Cost and Profitability - The gross profit margin improved by 5% to 62%, driven by normalized freight costs and a favorable sales mix[5]. - Financing income increased to HKD 2,768,000 in 2023 from HKD 1,455,000 in 2022, while financing costs rose to HKD 2,054,000 from HKD 1,519,000, resulting in a net financing income of HKD 714,000 compared to a loss of HKD 64,000 in the previous year[38]. - The total income tax expense for the six months ended December 31, 2023, was HKD 476,000, up from HKD 312,000 in 2022[41]. Capital Expenditures and Assets - Capital expenditures for the period amounted to approximately HKD 9,000,000, up from HKD 4,000,000 in the previous year[13]. - Capital expenditures for the six months totaled HKD 8,633,000, compared to HKD 3,572,000 in the same period last year, indicating an increase of 141.5%[32]. - Total assets increased to HKD 802,192,000 as of December 31, 2023, compared to HKD 792,867,000 as of June 30, 2023, reflecting a growth of 1.6%[25]. - Total equity rose to HKD 439,637,000, up from HKD 428,594,000, indicating an increase of 2.4%[27]. Cash and Liquidity - As of December 31, 2023, the group had cash and cash equivalents totaling approximately HKD 222,000,000, with no bank borrowings[14]. - The group’s cash and cash equivalents decreased to HKD 193,697,000 from HKD 217,657,000, a decline of 11.0%[25]. - Inventory levels increased to HKD 49,591,000 from HKD 46,418,000, representing a rise of 4.7%[25]. - Trade and other receivables rose to HKD 109,279,000, up from HKD 91,618,000, indicating an increase of 19.2%[25]. - The group’s total liabilities decreased slightly to HKD 362,555,000 from HKD 364,273,000, a reduction of 0.5%[27]. Dividend and Retained Earnings - The company did not recommend the payment of an interim dividend for this period, consistent with the previous year[12]. - The company did not declare any interim dividend for the period, maintaining retained earnings of approximately HKD 522,359,000 as of December 31, 2023, down from HKD 550,902,000 in 2022[42]. Corporate Governance - The company maintained compliance with the corporate governance code and did not repurchase any shares during the reporting period[50][52]. - The company plans to maintain its long-term strategic direction, including expanding its production base in the U.S. and enhancing brand influence in trade and consumer markets[11].

Financial Performance - For the fiscal year ending June 30, 2023, Tai Ping Carpets reported total revenue of approximately HKD 601 million, representing a 3% increase from the previous year[18]. - The company's net profit increased by 52% to approximately HKD 38 million, compared to HKD 25 million in the previous year[18]. - The basic earnings per share rose to HKD 0.1811 from HKD 0.1191, reflecting a significant improvement in profitability[10]. - The return on equity for the company increased to 9.0% from 5.9% year-on-year, indicating enhanced financial performance[10]. - The total assets of Tai Ping Carpets as of June 30, 2023, were HKD 792.867 million, a slight increase from HKD 788.009 million in the previous year[13]. - The group's consolidated revenue for the fiscal year ending June 30, 2023, increased by 3% to approximately HKD 601 million, up from HKD 584 million in the previous year[26]. - Operating profit rose by 43% to approximately HKD 40 million, compared to about HKD 28 million in 2022, despite an increase in operating expenses due to the resumption of marketing activities[26]. - Net profit attributable to the company's owners for the year was approximately HKD 38 million, a 52% increase from about HKD 25 million in the previous year[26]. - The carpet business generated revenue of approximately HKD 582 million, a 3% increase from HKD 564 million last year, with an 8% revenue growth in the US market[27]. - The overall gross profit margin for the carpet business improved significantly to 61%, compared to 58% in the previous year[28]. Market Expansion and Strategy - The company plans to expand its market presence through new product launches and digital marketing initiatives to enhance brand awareness[19]. - Tai Ping Carpets has strategically opened seven flagship stores in major cities since 2019, with the latest openings in Los Angeles and San Francisco[19]. - The company plans to further invest in information systems to enhance manufacturing processes and resource allocation[29]. - The company opened a new showroom in San Francisco in June 2023, following the opening of a showroom in Los Angeles in July 2022, aimed at increasing brand awareness and retail opportunities[40]. Corporate Governance and Diversity - The company adheres to high standards of corporate governance, ensuring transparency, independence, accountability, and fairness in its operations[60]. - The company has a commitment to diversity in employment, treating all individuals fairly regardless of citizenship, nationality, ethnicity, gender, religion, or cultural background[65]. - The board currently consists of one female director and nine male directors, with an emphasis on increasing the proportion of female members for better gender diversity[64]. - The board has adopted a diversity policy that considers various factors such as gender, age, independence, cultural and educational background, and professional experience when appointing directors[61]. - The company believes that high standards of corporate governance are crucial for maintaining long-term performance and creating value for shareholders and stakeholders[60]. - The nomination committee will report annually on the composition of the board from a diversity perspective and monitor the implementation of the diversity policy[62]. - The company has a strong corporate culture that emphasizes integrity, ethical conduct, and responsible business practices, which are essential for its operations and long-term growth[60]. - The board is committed to regularly reviewing and updating governance principles to reflect changing regulatory requirements and corporate governance developments[60]. - The company has a diverse board composition, with members aged between 49 and 77 years[64]. - The board includes members with extensive experience in various sectors, including textiles, banking, and corporate management, enhancing its strategic decision-making capabilities[59]. Employee Welfare and Safety - Employee benefits include accommodation, meal plans, paid leave, and additional medical insurance for employees from other provinces[186]. - The company achieved a target of ≤ 4 total work-related injuries for 2023, successfully meeting this goal[191]. - The total number of work-related injuries, including severe injuries with over 105 days lost, was reported as 0, indicating a strong safety performance[191]. - The company set a target of 100% for hazard rectification rate, which was achieved during the reporting period[191]. - A total of 528 employees participated in various training programs, including first aid training for the Xiamen production workshop staff[196]. - The company has implemented a comprehensive occupational health and safety management system certified by ISO 45001, ensuring compliance with applicable laws and regulations[190]. - The company has established specific occupational health and safety goals to continuously improve its performance in this area[190]. - The introduction of automated systems and safety measures has reduced risks associated with workplace injuries[194]. - The company emphasizes employee development and training, providing customized on-the-job training and self-learning programs[195]. Environmental, Social, and Governance (ESG) Initiatives - The company presented its environmental, social, and governance (ESG) report for the fiscal year 2022/2023, covering management policies and performance[139]. - The report period spans from July 1, 2022, to June 30, 2023[140]. - The scope of the report includes the company's core business operations in Xiamen, China, and various sales offices globally, including in the USA, Europe, the Middle East, and Africa[141]. - The report adheres to the ESG reporting guidelines set by the Hong Kong Stock Exchange, ensuring compliance with mandatory disclosure requirements[142]. - The company aims to enhance transparency and accountability regarding its sustainability performance and stakeholder engagement through the report[142]. - The board of directors is responsible for overseeing compliance with regulations, stakeholder engagement, and environmental, social, and governance (ESG) performance[145]. - The group has identified 21 sustainability issues, with 12 prioritized as significant based on stakeholder feedback and global sustainability trends[156]. - The environmental, health, and safety department is responsible for managing policies and procedures related to sustainability and has obtained ISO 14001 certification[147]. - Monthly sustainability training courses are provided to employees, covering topics such as regulations, certifications, and audits[148]. - The group encourages stakeholder participation and feedback to guide its ESG development direction[146]. Supply Chain Management - The company has established and implemented various standard operating procedures for supply chain management, including "Management of External Suppliers" and "Procurement Control"[200]. - The company adheres to the highest ethical and environmental standards throughout its global operations and supply chain[200]. - Suppliers are required to sign a "Social Responsibility Commitment" and a "Hazardous Substances Restriction Commitment" to comply with WCA standards and relevant chemical regulations[200]. - A supplier management system has been established to verify supplier qualifications and assess performance, ensuring compliance with internal environmental and social standards[200]. - Annual audits are conducted on suppliers regarding their environmental, health, and safety management systems, crisis management, and hazardous substance disposal[200]. - Suppliers failing to meet standards after communication and remedial measures are removed from the qualified supplier list[200]. - The company has been recognized as an approved supplier by world-renowned luxury brands based on external audits of its responsible procurement practices[200].

Financial Performance - The group's consolidated revenue for the six months ended December 31, 2022, was approximately HKD 265 million, an increase of 12% compared to HKD 237 million in the same period last year[6]. - Operating profit for the first half was approximately HKD 4 million, up from approximately HKD 3 million in the same period last year, attributed to sales growth and improved operational efficiency[6]. - The carpet business generated sales of approximately HKD 256 million, a 13% increase from approximately HKD 227 million last year, despite some decline in Asian revenues due to sporadic COVID-19 outbreaks[8]. - Revenue for the six months ended December 31, 2022, was HKD 265,148,000, an increase of 12.0% compared to HKD 236,884,000 for the same period in 2021[44]. - Gross profit for the same period was HKD 151,015,000, representing a gross margin of 56.9%[44]. - Operating profit increased to HKD 4,407,000, up 33.8% from HKD 3,294,000 in the previous year[44]. - Profit attributable to owners of the company for the period was HKD 4,031,000, compared to HKD 2,170,000 in the prior year, marking an increase of 85.5%[44]. - Basic and diluted earnings per share for the period were HKD 1.90, up from HKD 1.02 in the previous year[44]. - The company reported a profit of HKD 4,031,000 for the period, compared to HKD 2,170,000 in the previous year, an increase of approximately 85.5%[56]. - The operating profit for the group was HKD 4,407,000 for the six months ended December 31, 2022, up from HKD 3,294,000 in the same period of 2021, reflecting a growth of 33.8%[82][84]. - The group’s gross profit for the six months ended December 31, 2022, was HKD 149,823,000, compared to HKD 134,292,000 in the previous year, indicating an increase of 11.6%[82][84]. Cash and Liquidity - As of December 31, 2022, the group's cash and cash equivalents totaled approximately HKD 195 million, an increase from HKD 163 million as of June 30, 2022, with no bank borrowings[16]. - Cash and cash equivalents increased from HKD 163,018,000 to HKD 193,428,000, an increase of about 18.6%[59]. - Operating cash flow generated was HKD 28,345,000, down from HKD 36,673,000, a decrease of approximately 22.7%[59]. - Net cash generated from investing activities was HKD 31,655,000, compared to a cash outflow of HKD 4,349,000 in the previous year[59]. - The group continues to monitor its cash flow forecasts to ensure sufficient liquidity for business needs and compliance with any borrowing covenants[71]. Investments and Capital Expenditures - The group plans to increase investment in the Premier Yarn Dyers facility in Georgia to expand carpet manufacturing in the U.S., supporting long-term growth plans[10]. - Capital expenditures for the period amounted to approximately HKD 4 million, unchanged from the previous year[15]. - Capital expenditures for the six months ended December 31, 2022, totaled HKD 3,572,000, a decrease from HKD 4,265,000 in the same period of 2021, reflecting a reduction of 16.3%[82][84]. - The company has approved but not contracted capital commitments of HKD 915,000 as of December 31, 2022, down from HKD 3,526,000 as of June 30, 2022[115]. Liabilities and Equity - The group reported a total contingent liability of approximately HKD 16 million as of December 31, 2022, compared to HKD 7 million as of June 30, 2022[23]. - Total assets decreased from HKD 788,009,000 to HKD 754,789,000, a decline of approximately 4.2%[50]. - Total equity decreased from HKD 429,131,000 to HKD 404,228,000, representing a decline of approximately 5.8%[53]. - Total liabilities decreased from HKD 358,878,000 to HKD 350,561,000, a decline of about 2.3%[53]. - The group’s total liabilities as of December 31, 2022, amounted to HKD 154,507,000, compared to HKD 162,905,000 as of June 30, 2022, indicating a decrease of approximately 5.2%[73]. - The total reserves as of December 31, 2022, decreased to HKD 247,037,000 from HKD 281,614,000 as of June 30, 2022, reflecting a decline of 12.2%[112]. Employee and Management Information - The total number of employees at the end of December 2022 was 731, a slight decrease from 751 at the end of June 2022[20]. - The company’s management compensation for the six months ended December 31, 2022, was HKD 17,117,000, a decrease of 42.7% from HKD 29,909,000 in the same period last year[121]. Dividends and Shareholder Returns - The group did not recommend the payment of an interim dividend for this period, consistent with the previous year[14]. - The company did not recommend any interim dividend for the six months ended December 31, 2022[32]. - The company paid dividends of HKD 12,731,000 during the period, compared to HKD 6,267,000 in the previous year[59]. - The total number of issued and fully paid ordinary shares remained at 212,187,488 as of December 31, 2022[19]. Risk Management and Financial Health - The group has not made any changes to its risk management team or policies since June 30, 2022, maintaining consistency in its financial risk management approach[70]. - The group’s financial risk factors include foreign exchange risk, price risk, credit risk, liquidity risk, and cash flow and fair value interest rate risk, which are critical for assessing overall financial health[69]. - The group’s management has made significant judgments and estimates in preparing the financial statements, which may affect reported assets, liabilities, income, and expenses[68]. Other Financial Metrics - The company experienced a foreign exchange loss of HKD 16,203,000, compared to a gain of HKD 3,779,000 in the previous year[47]. - The company reported a net other income of HKD 3,143,000, down from HKD 5,719,000 in the previous year[44]. - The net financing costs for the six months ended December 31, 2022, were HKD (64,000), significantly improved from HKD (846,000) in the previous year[89]. - The net exchange gain for the six months ended December 31, 2022, was HKD 1,032,000, compared to HKD 980,000 in the same period of 2021, indicating a growth of 5.3%[88].

Financial Performance - Total revenue for the year ended June 30, 2022, was approximately HKD 583,656,000, representing a 21% increase from HKD 481,379,000 in the previous year[21] - The net profit attributable to the company's owners for the year was HKD 25,275,000, up 52% from HKD 16,634,000 in the prior year[13] - Operating profit for the year was approximately HKD 28,000,000, a 47% increase from HKD 19,000,000 in the previous year[21] - The return on equity attributable to owners was 5.9%, compared to 4.0% in the previous year[13] - The group's consolidated revenue for the fiscal year ended June 30, 2022, increased by 21% to approximately HKD 584 million, compared to HKD 481 million in the previous year[29] - Operating profit rose by 47% to approximately HKD 28 million, up from HKD 19 million in the previous year[29] - Net profit attributable to the company's owners increased by 52% to approximately HKD 25 million, compared to HKD 17 million for the year ended June 30, 2021[29] - The carpet business generated revenue of approximately HKD 564 million, a 21% increase from HKD 466 million last year[31] - The overall gross profit margin slightly decreased from 58% to 57% due to the global shipping crisis and increased transportation costs[31] Employee and Workplace Safety - The total number of employees in the manufacturing business increased to 592 from 527 year-on-year[34] - The total number of employees in the company reached 751, an 11% increase from 674 in the previous year[35] - The company continues to focus on employee health, safety, and well-being as a priority during the pandemic recovery[22] - The group has set a target of ≤ 4 total work-related injuries for 2022, achieving this goal with a total of 0 reported injuries[170] - The group has implemented a 100% rectification rate for identified hazards, meeting its target for 2022[170] - The group provided various employee benefits, including accommodation, meal plans, paid leave, and medical insurance, enhancing employee welfare[165] - A total of 516 employees participated in various training courses during the reporting period, including first aid training for employees at the Xiamen production workshop[172] - The group has achieved ISO 45001 certification for occupational health and safety, demonstrating compliance with international standards[167] - The group has established a comprehensive coronavirus emergency plan, including temperature checks and quarantine measures to ensure workplace safety[164] - The group has organized safety training and emergency drills to enhance employee preparedness for accidents[168] - The group has maintained a flexible work arrangement for employees showing symptoms or having been in high-risk areas, ensuring employee safety[164] - The group actively promotes a healthy lifestyle among employees through various interest groups and social activities, fostering a cohesive work environment[165] Corporate Governance - The board emphasizes the importance of diversity, including gender diversity, for business development and has adopted a Board Diversity Policy[68] - The board consists of members with skills and experience applicable to managing the group's business, ensuring compliance with procedures and regulations[70] - The roles of the Chairman and CEO are independent, with clear written responsibilities outlined[71] - The company has four independent non-executive directors, representing over one-third of the board, with at least one possessing appropriate accounting or financial management expertise[72] - The board held a total of five meetings during the year, with all members receiving at least 14 days' notice[82] - The Executive Committee held seven meetings during the year, with all members present at each meeting[89] - The company has purchased appropriate liability insurance for all directors and senior management, with annual reviews of coverage[81] - The board has established four committees: Executive Committee, Remuneration Committee, Audit Committee, and Nomination Committee[87] - All independent non-executive directors confirmed their independence annually, with reappointment requiring shareholder approval if they have served for over nine years[73] - The company provides ongoing professional development training for all directors to enhance their knowledge and skills[78] - The Compensation Committee was established on September 23, 2005, and is responsible for recommending policies regarding the remuneration of directors and senior executives, as well as reviewing performance-based compensation[90] - The Audit Committee held four meetings during the year to review interim and annual reports, and to discuss financial reporting, risk management, and internal control matters[94] - The external auditor, KPMG, received a total of HKD 2,591,000 for audit services and HKD 1,758,000 for non-audit services during the review year[99] - The Nomination Committee reviewed the board's structure, composition, and diversity, and found them to be appropriate, ensuring a diverse range of professional knowledge and qualifications among board members[96] - The board confirmed its responsibility for the effectiveness of the group's risk management and internal control systems, which aim to promote operational efficiency and ensure compliance with relevant regulations[105] - The internal audit function reviewed the effectiveness of the risk management and internal control systems, and the board assessed their effectiveness as sufficient and effective for the year ending June 30, 2022[106] Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report covers the period from July 1, 2021, to June 30, 2022[122] - The ESG report outlines the company's management policies and performance regarding sustainability and its environmental and social impacts[121] - The report is prepared in accordance with the Hong Kong Stock Exchange's ESG reporting guidelines, ensuring transparency and accountability[124] - The board of directors approved the ESG report on September 16, 2022[127] - The company encourages stakeholder feedback to enhance its ESG development[128] - The company has set various key performance indicators related to environmental performance, achieving targets such as zero environmental pollution incidents and compliance with water and air pollution discharge standards[145] - The company is committed to reducing greenhouse gas emissions primarily generated from manufacturing and transportation, with measures implemented to minimize emissions by locating operations closer to local markets[146] - The company has established an Environmental, Health, and Safety department responsible for managing policies and procedures related to environmental protection and resource management[129] - The company has identified 21 sustainability issues, with 12 prioritized as important based on stakeholder feedback[135] - The company conducts annual internal and external environmental audits to ensure compliance with environmental management regulations, reporting no violations during the reporting period[141] - The company actively engages with stakeholders through various communication channels to understand and meet their expectations and demands[130] - The company has adopted energy-saving measures, including the installation of variable frequency drives and energy-efficient LED lighting systems, to reduce energy consumption[146] - The company has achieved its energy usage targets at its Xiamen production workshop, based on a benchmark from 2019 electricity consumption[146] - The company has established a governance framework for environmental, social, and governance matters, ensuring effective internal communication on sustainability issues[129] - The Xiamen production workshop has advanced equipment and environmentally friendly features, significantly reducing energy consumption through evaporative cooling systems and natural ventilation designs[147] - The group has set a water consumption reduction target based on 2019 levels, aiming to lower water usage per unit of production by 2021[150] - The wastewater treatment facility at the Xiamen workshop can process approximately 200 tons of wastewater daily, ensuring compliance with environmental regulations[150] - The group actively integrates sustainable practices by sourcing natural fibers such as wool, silk, and cotton, which are biodegradable and have lower environmental impacts compared to synthetic fibers[156] - The group has implemented a waste management program to minimize environmental impact, ensuring proper classification and handling of waste materials generated during production[155] Community Engagement and Training - The company emphasizes community investment and sustainable development, focusing on hiring local residents to promote local economic growth[186] - The company conducts annual customer satisfaction surveys to gather feedback on service and product quality, using the data to identify areas for improvement[180] - A total of 548 employees and all directors participated in anti-corruption training, accumulating approximately 274 hours of training during the reporting period[185] - The total number of products sold or delivered reached 86,360 square meters, an increase from 64,135 square meters in the previous fiscal year[195] - The average training hours for managers was 12.43 hours, while for general employees it was 12.47 hours[195] - The percentage of employees receiving training increased, with 94.14% of male and 94.18% of female employees trained[193]

Financial Performance - The group's consolidated revenue for the six months ended December 31, 2021, was approximately HKD 237 million, an increase of 8% compared to HKD 220 million in the same period last year[8]. - Revenue for the six months ended December 31, 2021, was HKD 236,884,000, an increase of 7.0% from HKD 220,342,000 in the same period of 2020[42]. - Sales in the carpet business were approximately HKD 227 million, a 7% increase from HKD 213 million last year, with significant growth in the Asian region, which saw a 56% increase[10]. - The company reported a significant increase in sales of yarn and other products, reaching HKD 10,080,000, compared to HKD 7,073,000 in the previous year, marking a growth of 42.4%[79]. - The net profit for the period was HKD 2,170,000, a decrease from HKD 5,838,000 in the same period last year[96]. - Basic earnings per share for the period was HKD 1.02, down from HKD 2.75 in the same period last year[42]. Operating Profit and Expenses - Operating profit for the period was approximately HKD 3 million, down from HKD 7 million in the previous year, due to increased international shipping costs and the end of temporary rent reductions[8]. - Operating profit decreased to HKD 3,294,000, down 54.0% from HKD 7,172,000 in the previous year[42]. - The total tax expense for the period was HKD 278,000, an increase from HKD 161,000 in the same period last year[93]. - The company reported a net financing cost of HKD 846,000, down from HKD 1,474,000 in the previous year[90]. Cash Flow and Liquidity - As of December 31, 2021, the group's cash and cash equivalents totaled approximately HKD 172 million, a decrease from HKD 178 million as of June 30, 2021, with no bank borrowings[20]. - Operating cash flow generated was HKD 36,673, down from HKD 46,770 in the previous year[59]. - Cash flow from financing activities showed a net outflow of HKD 38,064, compared to HKD 50,035 in the previous year[59]. - The company held cash and cash equivalents of approximately HKD 171,501,000 as of the reporting date, compared to HKD 178,173,000 as of June 30, 2021[71]. Assets and Liabilities - Total assets as of December 31 amounted to HKD 784,796, a slight decrease from HKD 784,877 as of June 30[49]. - The company reported a total liability of HKD 360,430, a marginal increase from HKD 360,094[52]. - Current assets increased to HKD 313,454 from HKD 294,016, with inventory rising significantly to HKD 71,398 from HKD 51,306[49]. - Trade receivables as of December 31, 2021, amounted to HKD 39,221,000, a decrease from HKD 39,682,000 as of June 30, 2021[114]. Capital Expenditures and Investments - Capital expenditures for the period amounted to approximately HKD 4 million, down from HKD 5 million in the previous year[18]. - The company is investing in expanding its carpet manufacturing operations in Georgia, USA, to support long-term growth in the US market[13]. - Capital expenditures totaled HKD 4,265,000, with significant investments in Asia (HKD 3,415,000) and Europe, Middle East and Africa (HKD 336,000)[83]. Shareholder and Dividend Information - The company did not recommend the payment of an interim dividend for the period[16]. - Major shareholders holding 5% or more of the issued share capital include Harneys Trustees Limited with 36.607% and Acorn Holdings Corporation with 18.858%[38]. - The company did not declare any interim dividends for the period, consistent with the previous year[94]. Employee and Management Information - The total number of employees as of the end of December 2021 was 694, compared to 674 at the end of June 2021[23]. - The remuneration for key management personnel increased significantly to HKD 29,909,000 for the six months ended December 31, 2021, compared to HKD 8,317,000 for the same period in 2020[132]. Risk Management and Compliance - The audit committee has reviewed the financial statements and internal control procedures for the period[31]. - The risk management team and policies have remained unchanged since June 30, 2021, ensuring consistent financial risk management practices[70]. - The financial risk factors include foreign exchange risk, price risk, credit risk, liquidity risk, and cash flow and fair value interest rate risk[69]. Future Outlook and Strategies - The group has begun receiving a large number of orders for the second half of the year, indicating improving trade conditions[15]. - The company provided a positive outlook for the next quarter, projecting revenue growth of A% and an increase in user engagement metrics[134]. - Market expansion strategies include potential acquisitions, with a focus on companies that align with the company's growth objectives[134].