Financial Performance - Revenue for the year ended December 31, 2023, was HKD 523,262,000, a decrease of 38.4% compared to HKD 849,096,000 in 2022[4] - Gross profit for the same period was HKD 39,266,000, down 60.0% from HKD 97,883,000 in the previous year[4] - The company reported a net loss of HKD 29,361,000 for the year, compared to a profit of HKD 8,079,000 in 2022[4] - Basic and diluted loss per share was HKD 6.36, compared to earnings of HKD 2.21 per share in the prior year[4] - The group reported a pre-tax loss of HKD 22.998 million in 2023, compared to a profit of HKD 11.769 million in 2022[26] - The net loss for the fiscal year 2023 was approximately HKD 29.4 million, compared to a net profit of HKD 8.1 million in fiscal year 2022, primarily due to a decrease in orders from a major customer[57] - The toy division's revenue decreased by approximately 38.4% to HKD 522.8 million, with a gross profit of about HKD 39.2 million, down from HKD 97.9 million in fiscal year 2022[60] - The toy division recorded a pre-tax segment loss of approximately HKD 7.26 million in fiscal year 2023, compared to a pre-tax profit of HKD 53.1 million in fiscal year 2022[60] - The agriculture division generated revenue of HKD 0.44 million in fiscal year 2023 and recorded a pre-tax segment loss of approximately HKD 3.3 million due to its developmental stage in Japan[61] Assets and Liabilities - Total assets as of December 31, 2023, were HKD 291,907,000, an increase from HKD 218,596,000 in 2022[8] - The company had net current liabilities of HKD 185,184,000, compared to HKD 192,768,000 in the previous year[8] - Cash and cash equivalents amounted to HKD 119,335,000, up from HKD 49,765,000 in 2022[8] - The total loans increased to HKD 238,097,000 in 2023 from HKD 190,943,000 in 2022, reflecting an increase of 24.6%[38] - The company has a bank balance of approximately HKD 119,335,000, but total loans and convertible bonds amount to HKD 240,573,000, indicating significant financial uncertainty[52] - As of December 31, 2023, the company's net current liabilities were approximately HKD 185.2 million, with cash and cash equivalents of about HKD 119.3 million[62] Financing and Capital Raising - The company plans to raise approximately HKD 6,500,000 through the issuance of 101,964,566 shares at HKD 0.066 each[15] - A bank financing agreement was extended, with a total amount of RMB 160,000,000 (approximately HKD 176,561,000) due by December 13, 2024[15] - The company plans to issue 101,964,566 new shares at a net price of approximately HKD 0.066 per share, generating net proceeds of HKD 6,500,000[48] - The company aims to complete its capital raising activities by the end of 2024, assuming all plans proceed as intended[71] - The company issued 101,964,566 new shares at a net issue price of approximately HKD 0.066 per share on January 15, 2024[76] Cost Management - The group implemented cost-saving measures to improve cash flow and meet operational funding needs[19] - The company has implemented cost-cutting measures to reduce operating costs and improve financial stability[73] - Employee benefits expenses decreased to HKD 106,082,000 in 2023 from HKD 126,828,000 in 2022, representing a reduction of 16.4%[31] - The company has reduced its workforce from 1,696 employees in 2022 to 1,513 employees in 2023, resulting in employee costs decreasing from approximately HKD 126.8 million to HKD 106.1 million[75] Future Outlook - The company anticipates continued challenges in the toy sector, with significant pressure on product profitability and sales expected to persist into 2024[73] - The board is optimistic about future performance improvements in both the toy and agricultural sectors while exploring new business opportunities to increase market share[73] - The company plans to expand its agricultural business in Japan following the acquisition of 78.9% of Meishin Co., Ltd.[61] Governance and Compliance - The company has complied with all applicable corporate governance code provisions during the fiscal year ending December 31, 2023[74] - The audit opinion raised significant uncertainty regarding the company's ability to continue as a going concern, with the auditors not expressing an opinion on the financial statements for the fiscal year 2023[65] Shareholder Returns - No dividends were declared or proposed for both years, indicating a focus on retaining earnings for future growth[33] - The company does not recommend a final dividend for the fiscal year ending December 31, 2023[56] Acquisitions - The company acquired 100% of the issued share capital of Hengda Investment Group for a total cash consideration of HKD 1,700,000, enhancing its agricultural business in Japan[46] - The fair value of identifiable assets and liabilities acquired from Hengda Investment Group amounted to HKD 2,209,000, resulting in goodwill of HKD 740,000[47]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不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之任何損失承擔任何責任。 WINSHINE SCIENCE COMPANY LIMITED * 209 補充公告 茲提述瀛晟科學有限公司*（「本公司」，連同其附屬公司統稱「本集團」）截至二零二二年十 二月三十一日止年度（「二零二二財年」）之全年業績公告（「二零二二年業績公告」）及年度 報告（「二零二二年年報」）。除文義另有界定外，本公告所用詞彙與二零二二年業績公告 及二零二二年年報所界定者具有相同涵義。 本公司董事（「董事」）會（「董事會」）謹此提供以下二零二二年年報以及於二零二二年三月 二十一日公佈（「該公告」）有關出售龐富實業有限公司（「龐富」）60%權益及龐富結欠一名 獨立第三方之股東貸款（「銷售貸款」）之60%的須予披露交易（「出售事項」）及二零二二年 業績公告和二零二二年年報所披露其他應收款項減值虧損之額外資料。 該公告與二零二二年年報之間的重大差異 股東貸款為約21,025,836.47港元，該公告所載其中60%款項 ...

Revenue Performance - For the interim period ended 30 June 2023, the Group recorded a revenue of HK$202.5 million in the toys division, a decrease of 59.3% compared to the same period in 2022[23]. - Overall toy sales in the US, the Group's largest market, declined by over 50% compared to the interim period ended 30 June 2022[20]. - Revenue for the six months ended June 30, 2023, was HK$202,686,000, a decrease of 59% compared to HK$497,188,000 for the same period in 2022[63]. - Revenue from the toy segment decreased by 59.3% to HK$202.5 million, primarily due to reduced procurement orders from major customers in the United States[25]. - The newly introduced agricultural products segment generated revenue of HK$158,000 in H1 2023, marking its first contribution to the Group's revenue[98]. - The total revenue for the Group in H1 2023 was HK$202,686,000, down from HK$497,188,000 in H1 2022, indicating an overall decline of about 59.3%[104]. Profit and Loss - Gross profit for the interim period ended 30 June 2023 amounted to approximately HK$10.9 million, representing a decrease of approximately HK$63.3 million from HK$74.2 million in the same period in 2022[21]. - The Group recorded a loss of approximately HK$21.1 million for the interim period ended 30 June 2023, compared to a profit of approximately HK$13.0 million for the same period in 2022, representing a decrease of approximately HK$34.1 million[22]. - Loss before tax for the period was HK$21,109,000, compared to a profit of HK$13,474,000 in the previous year[63]. - Loss attributable to owners of the Company was HK$21,050,000, a significant decline from a profit of HK$12,986,000 in 2022[63]. - The total comprehensive expense for the period was HK$25,122,000, compared to a total comprehensive income of HK$2,083,000 for the same period in 2022, indicating a significant decline in overall financial health[72]. Financial Position - As of June 30, 2023, the Group's current assets were HK$304,119,000, an increase from HK$218,596,000 as of December 31, 2022[29]. - The Group's borrowings totaled HK$246,284,000 as of June 30, 2023, compared to HK$190,943,000 as of December 31, 2022[30]. - The capital deficiencies attributable to owners of the Company decreased by 9.8% to HK$80,876,000 as of June 30, 2023, from HK$89,648,000 as of December 31, 2022[31]. - The Group's gearing ratio was approximately 122% as of June 30, 2023, down from 134% as of December 31, 2022[34]. - As of June 30, 2023, net current liabilities decreased to HK$179,880,000 from HK$192,768,000 as of December 31, 2022, reflecting a reduction of approximately 6%[69]. - Total assets as of June 30, 2023, amounted to HK$423,907,000, an increase from HK$340,946,000 as of December 31, 2022[107]. Cash Flow and Financing - Cash used in operating activities for the first half of 2023 was HK$123,138,000, a substantial increase from HK$5,293,000 in the prior year, indicating a worsening cash flow situation[75]. - The company raised HK$36,370,000 from the issuance of convertible bonds during the period, contributing to financing activities[75]. - Cash and cash equivalents at the end of the period stood at HK$38,789,000, down from HK$49,575,000 at the end of June 2022, reflecting a decrease of approximately 22%[75]. - The company’s net cash from financing activities was HK$123,202,000 for the first half of 2023, a turnaround from a net cash used of HK$15,163,000 in the same period last year[75]. Inventory and Receivables - The decrease in revenue was primarily due to reduced purchase orders from a major customer based in the USA[23]. - Lower gross profit margin for the interim period was attributed to elevated discounts and writedowns to manage inventory levels[23]. - The Group's trade receivables are expected to be recovered within one year, with credit terms generally ranging from 30 to 60 days[134]. - The total trade receivables as of June 30, 2023, were HK$128,082,000, compared to HK$71,503,000 as of December 31, 2022, representing an increase of 79%[137]. Strategic Initiatives - The Group plans to diversify its businesses and enhance existing operations while exploring new sales opportunities to improve profitability[49]. - The acquisition of a 78.9% equity interest in a Japanese agricultural company is expected to create synergies and better returns for shareholders[50]. - The Group is focused on addressing inventory issues and adapting to market conditions moving forward[19]. Employee and Management Expenses - Employee benefit expenses decreased significantly to HK$47,885,000 in 2023 from HK$118,077,000 in 2022, representing a reduction of approximately 59.5%[122]. - Total remuneration for directors and key executives was HK$2,108,000 for the six months ended June 30, 2023, compared to HK$1,894,000 in 2022, indicating an increase of 11.29%[200]. Debt and Borrowings - The Group's total borrowings included a loan of HK$612,000 at a fixed rate of 2.50% per month from a major shareholder, maturing in one year[169]. - The company has secured bank loans with fixed interest rates ranging from 4.00% to 5.85% per annum, totaling HK$150,672,000 as of June 30, 2023[158]. - The current portion of total borrowings as of June 30, 2023, is HK$246,284,000, up from HK$190,943,000 as of December 31, 2022, marking an increase of approximately 29.1%[158]. Acquisitions - The Group acquired 100% of Huge Advanced Investment Holding Limited for a total cash consideration of HK$1,700,000 on 24 May 2023[167]. - Revenue of approximately HK$158,000 and a net loss of approximately HK$278,000 were contributed by Huge Advanced Group for the period from 24 May 2023 to 30 June 2023[171].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈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。 WINSHINE SCIENCE COMPANY LIMITED 瀛 晟 科 學 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：209） 截至二零二三年六月三十日止六個月 中期業績公佈 瀛晟科學有限公司（「本公司」）之董事會（「董事會」）謹此宣佈本公司及其附屬公司（下文統 稱「本集團」）截至二零二三年六月三十日止六個月之未經審核簡明綜合業績，連同比較數 字如下： 簡明綜合損益表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （未經審核） （未經審核） 收入 4 202,686 497,188 銷售成本 (191,765) (422,979) 毛利 10,921 74,209 其他收入、收益及虧損 5 7,063 7,769 出售附屬公司之收益 – (3,297) 銷售及分銷成本 (5,586) (10,561) ...

Financial Performance - The Group recorded revenue of approximately HK$849.1 million for FY2022, representing an increase of approximately 17.2% compared to HK$724.6 million for FY2021[26]. - For FY2022, the Group's revenue increased by approximately 17.2% to HK$849.1 million compared to HK$724.6 million in FY2021[31]. - The net profit for FY2022 was approximately HK$8.1 million, a significant turnaround from a net loss of approximately HK$136.0 million in FY2021[28]. - The gross profit for FY2022 amounted to approximately HK$97.9 million, representing an increase of approximately 162.7% compared to HK$37.3 million in FY2021[30]. - The Toys Division recorded a segment profit before taxation of approximately HK$53.1 million in FY2022, compared to a loss of approximately HK$69.1 million in FY2021[41]. - The increase in revenue and gross profit in the Toys Division was primarily due to increased purchase orders from the largest customer based in the USA[30]. Business Strategy and Opportunities - The Toys Division resumed full operations, contributing significantly to the revenue increase[16]. - The Group plans to issue Convertible Bonds amounting to HK$22.5 million and HK$14 million to explore new business opportunities and provide working capital[19]. - The potential investment in a watermelon planting project in Japan aligns with the Group's strategy to diversify into the agricultural sector[19]. - The Group aims to explore new business opportunities with lower management costs to increase market share[24]. - The Group's strategy includes diversifying into more profitable business activities to maintain competitiveness and ensure shareholder returns[18]. - The Group's management is focused on analyzing risks and returns on investments in new sectors, leveraging the experience of its executive directors[19]. Financial Stability and Funding - Cost-cutting measures have been implemented to reduce operating costs and improve financial stability[18]. - The Group's net current liabilities at the end of FY2022 were approximately HK$192.8 million, down from HK$232.4 million in FY2021[37]. - The capital deficiencies attributable to owners of the Company decreased to approximately HK$89.6 million as of December 31, 2022, from approximately HK$98.9 million in 2021[38]. - The Group's gearing ratio as of December 31, 2022, was approximately 134%, compared to 123% in 2021[38]. - The Group believes it will have sufficient working capital for at least 12 months from December 31, 2022, due to successful measures including the issuance of two convertible bonds and negotiations for extending the maturity of outstanding borrowings[50]. - Management acknowledges the need for further equity funding to address auditor concerns regarding the going concern issue and plans to contact potential investors for raising equity funds by the end of 2023[56]. - The Audit Committee agrees with Management's position on the action plan to address the Audit Qualification and supports the Group's ability to continue as a going concern[52]. - The Group's financial resources are expected to meet its obligations in the foreseeable future, contingent on the successful completion of planned actions and obtaining alternative financing[57]. - Management intends to conduct equity fundraising activities through placing new shares and/or rights issues to secure necessary funds[56]. - The Group aims to remove the Disclaimer in the audit of the consolidated financial statements for the year ending December 31, 2023, assuming all plans are executed as intended[57]. Environmental, Social, and Governance (ESG) Management - The Board emphasizes the importance of effective ESG management to enhance corporate image and reduce risks, establishing a working group to oversee ESG matters[62]. - Regular assessments of performance indicators in resource consumption and occupational safety are conducted to ensure operational efficiency[65]. - The Group has made a basic assessment of ESG-related risks and incorporated them into its risk management and internal control systems[64]. - The ESG Report covers the period from January 1, 2022, to December 31, 2022, focusing on the primary business of toy manufacturing and trading[76]. - The Group maintains the same ESG management structure and processes as the previous reporting period, ensuring consistency in monitoring ESG issues and performance[82]. - The Group has established multiple communication channels to engage stakeholders, including meetings, reports, and surveys, to identify and prioritize material ESG aspects[88]. - The Group's commitment to sustainable development includes integrating environmental and social initiatives into its business strategy to enhance competitiveness[75]. - The ESG Report adheres to the principles of materiality, quantitative measurement, balance, and consistency as outlined in the ESG Reporting Guide[72]. Environmental Performance - Total GHG emissions decreased by 8% from 7,992 tonnes in 2021 to 7,380 tonnes in 2022[108]. - Scope 1 emissions increased by 111% from 97 tonnes in 2021 to 205 tonnes in 2022[108]. - Scope 2 emissions decreased by 9% from 7,894 tonnes in 2021 to 7,175 tonnes in 2022[108]. - GHG emissions intensity per production volume improved by 31%, from 0.39 tonnes CO2e per 1,000 pieces in 2021 to 0.27 tonnes in 2022[108]. - No environmental non-compliance incidents resulted in fines or prosecutions during the 2022 reporting period[101]. - The Group adheres to the ISO 14001 environmental management system standard to enhance environmental performance[102]. - The Group's primary source of GHG emissions is from purchased electricity, followed by fuel consumption from company vehicles[103]. - The Group has established an emission reduction pathway with a long-term perspective as a directional target[103]. - The Group has complied with all relevant national and local environmental laws and regulations[99]. - The Group's environmental management initiatives are overseen by an Environmental Management Committee[99]. - The Group targets to reduce total GHG emissions by 2-3% in the coming year through various energy efficiency initiatives[109]. - Air pollutant emissions increased significantly in 2022, with Nitrogen Oxides (NOx) rising by 180% to 595,104 grams, Sulphur Oxides (SOx) increasing by 96% to 1,205 grams, and Particulate Matter (PM) up by 182% to 58,726 grams compared to 2021[115]. - The Group aims to reduce hazardous air pollutant emissions (SOx, NOx, and PM) by 2-3% in the upcoming year[116]. - Non-hazardous waste increased by 6% to 55 tonnes in 2022, while hazardous waste rose by 5% to 60 tonnes, attributed to increased production volume[124]. - The intensity of non-hazardous waste per production volume decreased by 33% to 0.02 tonnes per 10,000 pieces in 2022[124]. - The Group has implemented a waste management principle of 3R (Reduce, Reuse, Recycle) to minimize waste generation[120]. - The Group has established a resource management procedure to regulate energy use and has adopted various energy-saving measures[128]. - The Group has replaced conventional lighting with LED and procured environmentally friendly equipment to reduce energy consumption[128]. - The Group has set a long-term target for energy consumption reduction, focusing on minimizing reliance on fossil fuels[126]. - The Group has introduced a VOCs removal system to ensure emissions are within legal requirements and connected to the Ministry of Environmental Protection for monitoring[110]. - Total electricity consumption decreased by 5% from 9,435,158 kWh in 2021 to 8,922,200 kWh in 2022[130]. - Diesel consumption surged by 234%, increasing from 14,200 litres in 2021 to 47,450 litres in 2022[130]. - The Group aims to reduce energy consumption by 2-3% in the coming year[132]. - Water consumption in Zhongshan decreased by 3% from 237,511 m³ in 2021 to 230,113 m³ in 2022[137]. - Total raw materials consumption decreased by 5% from 3,057.2 tonnes in 2021 to 2,915.2 tonnes in 2022[143]. - The intensity of electricity consumption per piece decreased by 30%, from 0.47 kWh/piece in 2021 to 0.33 kWh/piece in 2022[130]. - The intensity of diesel consumption per 100 pieces increased by 147%, from 0.76 kWh/100 pieces in 2021 to 1.88 kWh/100 pieces in 2022[130]. - The Group has established a long-term water consumption reduction pathway, although water consumption remained stable in 2022[134]. - The Group continues to implement initiatives to save water, including reminders for employees to conserve water[137]. - The Group was recognized as "Hong Kong – Guangdong Cleaner Production Excellent Partners (Manufacturing)" for its environmental efforts[146]. Employment and Training - The Group employed 1,696 full-time employees as of December 31, 2022, in Zhongshan and Hong Kong[169]. - The Group has achieved zero complaints and no pollution occurrences during the 2022 reporting period[155]. - There were no cases of non-compliance regarding employment practices during the 2022 reporting period[159]. - The Group's employment policy is regularly reviewed to ensure fair and equal recruitment practices[163]. - All employees are entitled to various statutory holidays and paid leave, including maternity and paternity leave[165]. - The Group has established contingent plans to address extreme weather conditions to ensure staff safety[153]. - The Group is committed to promoting safe and fair working conditions, certified by ICTI CARE Foundation[159]. - The Group's remuneration package is benchmarked against industry norms to maintain competitiveness[165]. - Employee turnover rate increased to 36% in the 2022 Reporting Period[178]. - Average training hours for employees were 32 hours in the 2022 Reporting Period[196]. - Percentage of employees trained was 99.41% in 2022, slightly up from 99.37% in 2021[198]. - Male employees trained accounted for 38.85% in 2022, down from 41.55% in 2021[198]. - Female employees trained accounted for 61.15% in 2022, up from 58.45% in 2021[198]. - Senior management training increased to 0.53% in 2022 from 0.29% in 2021[198]. - Middle and junior management training increased to 1.60% in 2022 from 0.97% in 2021[198]. - Supervisor training increased to 1.78% in 2022 from 1.21% in 2021[198]. - General staff training decreased to 96.09% in 2022 from 97.52% in 2021[198]. - No incidents of non-compliance with occupational health and safety regulations were reported in the 2022 Reporting Period[188]. - Average training hours per employee increased to 31.87 hours in 2022 from 24.90 hours in 2021, reflecting a growth of approximately 27.5%[200]. - Male employees completed an average of 31.75 training hours in 2022, up from 25.26 hours in 2021, representing a rise of about 25.5%[200]. - Female employees completed an average of 31.95 training hours in 2022, compared to 24.64 hours in 2021, indicating an increase of approximately 29.7%[200]. - Senior management training hours rose significantly to 9.40 hours in 2022 from 4.36 hours in 2021, marking an increase of about 115%[200]. - Middle and Junior management training hours increased to 23.70 hours in 2022 from 12.31 hours in 2021, showing a growth of approximately 92.8%[200]. - General staff training hours improved to 31.91 hours in 2022, up from 24.89 hours in 2021, reflecting an increase of around 28.2%[200]. - Supervisor training hours remained constant at 48.00 hours in both 2022 and 2021, indicating stability in this category[200].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不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。 WINSHINE SCIENCE COMPANY LIMITED 瀛 晟 科 學 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：209） 截至二零二二年十二月三十一日止年度 末期業績公告 業績概要 瀛晟科學有限公司（「本公司」）董事會（「董事會」）之董事（「董事」）欣然公告本公司及其附 屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度之經審核綜合財務業績， 與截至二零二一年十二月三十一日止年度的比較數字如下： ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不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。 WINSHINE SCIENCE COMPANY LIMITED 瀛 晟 科 學 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：209） 截至二零二二年十二月三十一日止年度 末期業績公告 業績概要 瀛晟科學有限公司（「本公司」）董事會（「董事會」）之董事（「董事」）欣然公告本公司及其附 屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度之經審核綜合財務業績， 與截至二零二一年十二月三十一日止年度的比較數字如下： ...

Financial Performance - The company recorded revenue of HKD 497.2 million for the six months ended June 30, 2022, an increase of 88.7% compared to HKD 263.5 million for the same period in 2021[11]. - The gross profit for the same period was approximately HKD 74.2 million, up from HKD 6.2 million in the previous year, representing an increase of about HKD 68.0 million[11]. - The net profit for the six months ended June 30, 2022, was approximately HKD 13.0 million, a significant improvement from a net loss of HKD 31.2 million in the same period of 2021, an increase of about HKD 44.2 million[11]. - The group reported revenue of HKD 497,188,000 for the six months ended June 30, 2022, representing a 88.7% increase from HKD 263,462,000 in the same period of 2021[28]. - Gross profit for the same period was HKD 74,209,000, compared to HKD 6,184,000 in 2021, indicating a significant improvement in profitability[28]. - The group achieved a profit before tax of HKD 13,474,000, a turnaround from a loss of HKD 32,262,000 in the previous year[28]. - The net profit for the period was HKD 12,986,000, compared to a loss of HKD 31,223,000 in 2021, showcasing a strong recovery[28]. - The company reported a profit of 12,986 thousand HKD for the six months ended June 30, 2022, compared to a loss of 31,223 thousand HKD in the same period of 2021, indicating a significant turnaround[80]. Assets and Liabilities - As of June 30, 2022, the company's current assets were HKD 541.9 million, compared to HKD 384.9 million as of December 31, 2021[15]. - The company reported a total asset value of HKD 541,892,000 as of June 30, 2022, compared to HKD 384,900,000 at the end of 2021, indicating growth in asset base[36]. - Total assets as of June 30, 2022, amounted to HKD 675,250,000, with HKD 589,864,000 attributed to the toy segment[67]. - Total liabilities as of June 30, 2022, were HKD 776,275,000, with HKD 664,844,000 related to the toy segment[67]. - The company had net current liabilities of approximately HKD 202,345,000 as of June 30, 2022, with bank balances and cash of HKD 48,056,000 against loans of HKD 251,022,000 due within the next twelve months[48]. - The company reported a total of HKD 1,894,000 in compensation for directors and key management personnel for the six months ended June 30, 2022, compared to HKD 1,982,000 for the same period in 2021[109]. Cash Flow and Financing - The company sold 60% of its subsidiary's issued share capital and shareholder loans for HKD 15,000,000 to enhance liquidity[51]. - The company reported a net cash inflow from investing activities of HKD 8,611,000 for the six months ended June 30, 2022, compared to HKD 1,101,000 in the previous year[42]. - The company plans to implement cost-saving measures and review its investments to improve cash flow and meet operational funding needs[51]. - The company has extended its bank financing agreement, with the total amount revised to RMB 141,000,000 (approximately HKD 164,874,000) as of March 15, 2022[97]. - The company issued additional loans of HKD 15,000,000 on May 23, 2022, with a maturity date of March 31, 2023[98]. - The company has received a deposit of HKD 28,537,000, which represents 60% of the sale price for the disposal of Triumph Development Limited[92]. Operational Highlights - The toy division's revenue increased by 88.7% to HKD 497.2 million, primarily due to increased orders from major customers based in the United States[12]. - The company plans to invest in production automation facilities to enhance production efficiency and cost-effectiveness amid rising operational costs due to global inflation[25]. - The group aims to diversify its product offerings and optimize its product mix to expand into different regions and markets, creating new business opportunities[25]. - Employee headcount increased to approximately 3,300 as of June 30, 2022, up from 2,650 a year earlier, reflecting the company's growth strategy[23]. - Inventory levels rose to HKD 189,620,000 from HKD 113,864,000, indicating increased production and sales activities[36]. - Trade receivables increased significantly to HKD 225,600,000 from HKD 134,162,000, suggesting improved sales performance and customer demand[36]. Cost and Expenses - Employee benefits expenses increased to 118,077 thousand HKD in 2022 from 54,657 thousand HKD in 2021, reflecting a rise of approximately 115%[76]. - The cost of inventory recognized as an expense (included in cost of sales) rose to 427,678 thousand HKD in 2022 from 256,746 thousand HKD in 2021, representing an increase of about 66%[76]. - The company reported a significant increase in subcontracting costs, which rose to 66,942 thousand HKD in 2022 from 44,828 thousand HKD in 2021[77]. Governance and Compliance - The company has complied with all applicable corporate governance codes during the six months ended June 30, 2022, with minor deviations noted[125]. - The audit committee reviewed the accounting principles and policies adopted by the company for the six months ended June 30, 2022[131]. - The company has not disclosed any unfulfilled performance obligations as of the reporting date, in accordance with the applicable accounting standards[58]. Shareholder Information - As of June 30, 2022, major shareholders included Zhongce Group Limited with a 17.80% stake and Mr. Ji with a 13.57% stake[122]. - The company did not declare or recommend any dividends during the interim period[78]. - No share buybacks or repurchases occurred during the six months ended June 30, 2022[132].

Financial Performance - The company reported a net loss of approximately HKD 136,015,000 for the fiscal year 2021 and an operating cash outflow of about HKD 15,164,000[4]. - As of December 31, 2021, the company had current liabilities and total liabilities of approximately HKD 232,439,000 and HKD 98,942,000, respectively[4]. - The company's bank balances and cash, along with pledged bank deposits, amounted to approximately HKD 66,634,000 and HKD 1,190,000, respectively, against borrowings and payables of approximately HKD 263,567,000 and HKD 3,967,000[4]. Management Actions - Management has implemented measures to improve financial conditions, including extending repayment terms with lenders and controlling operating costs to enhance cash flow[6]. - The company is considering alternative financing arrangements, including equity and debt financing, to alleviate liquidity pressure and improve cash flow[10]. - Management acknowledges the uncertainties related to cash flow generation and the impact of the COVID-19 pandemic on business operations[7]. Future Outlook - The company believes it will have sufficient working capital for at least 12 months from December 31, 2021, based on successful implementation of its measures[7]. - The board of directors believes that the company will have sufficient working capital to meet its financial obligations for the next twelve months[11]. - The company aims to eliminate the audit opinion by successfully executing its plans, including obtaining alternative financing[11]. Audit and Compliance - The audit committee has reviewed the management's actions to address the audit opinion and supports the management's position regarding the company's ability to continue as a going concern[9].

Financial Performance - The company reported a revenue increase of approximately 98.9% to HKD 724.6 million for the fiscal year ending December 31, 2021, compared to HKD 364.3 million in the previous fiscal year[12]. - The gross profit for the fiscal year was approximately HKD 37.3 million, up about 101.2% from HKD 18.5 million in the previous fiscal year[12]. - The net loss for the fiscal year was approximately HKD 136.0 million, compared to a net loss of HKD 95.8 million in the previous fiscal year[12]. - The toy division's revenue increased by approximately 98.9% to HKD 724.6 million, with a pre-tax segment loss of approximately HKD 69.1 million[14]. - The company reported a loss before tax of HKD 129,873,000 for 2021, compared to a loss of HKD 102,120,000 in 2020, reflecting ongoing financial challenges[189]. - Total comprehensive loss for the year was HKD 136,843,000, compared to HKD 82,378,000 in 2020, highlighting an increase in overall losses[192]. - The company reported a basic and diluted loss per share of HKD 3.71 for 2021, compared to HKD 2.62 in 2020, reflecting worsening per-share performance[189]. - The company recorded a net cash outflow from operating activities of HKD 15,164,000 in 2021, an improvement from HKD 49,595,000 in 2020[200]. Current Financial Position - As of December 31, 2021, the company's net current liabilities were approximately HKD 232.4 million, an increase from HKD 200.2 million in 2020[20]. - The company reported a capital deficit of approximately HKD 98.9 million as of December 31, 2021, compared to equity of HKD 37.9 million as of December 31, 2020, primarily due to operating losses during the year[20]. - The company's debt-to-equity ratio was approximately 123% as of December 31, 2021, up from 90% in 2020[20]. - The company held cash and cash equivalents of approximately HKD 66.6 million as of December 31, 2021, compared to HKD 56.1 million in 2020[20]. - The group’s assets, including property, plant, and equipment, had a carrying value of HKD 106,673,000, with right-of-use assets valued at HKD 14,190,000 and investment properties at HKD 44,276,000[182]. - The group had bank balances and cash of approximately HKD 66,634,000 and pledged bank deposits of HKD 1,190,000, while borrowings and notes payable amounted to HKD 263,567,000 and HKD 3,967,000 respectively[179]. Operational Measures - The company adopted cost-cutting measures to reduce operating costs and improve financial conditions for future challenges[9]. - The company has secured loan extensions and sold a subsidiary for HKD 15 million to support ongoing operations[20]. - The company remains cautiously optimistic about future prospects, driven by the continued strong performance of the toy division[10]. - The board is exploring new business opportunities while maintaining lower management costs[10]. Environmental and Social Responsibility - The board emphasizes the importance of environmental, social, and governance (ESG) management to improve corporate image and compliance with regulations[24]. - The company continues to implement COVID-19 preventive measures to ensure employee health and operational resilience[25]. - The total greenhouse gas emissions for the year 2021 amounted to 7,992 tons of CO2 equivalent, an increase of 25.9% from 6,345 tons in 2020[44]. - The company has established an environmental management committee to oversee environmental performance and compliance with ISO 14001 standards[42]. - The company is committed to reducing environmental risks and impacts through careful assessment and monitoring[42]. - The company has established a long-term reduction pathway for greenhouse gas emissions, focusing on energy-saving measures[43]. - The company has received recognition as a "Clean Production Superior Partner" in the manufacturing sector, affirming its commitment to clean production technologies[62]. Employee and Workplace Safety - The total workforce as of December 31, 2021, is 2,071 employees, with a turnover rate of 31% during the reporting period[70]. - The average training hours per employee during the reporting period is 25 hours, with 99% of employees participating in various training programs[76]. - The company has achieved OHSAS 18001 certification for occupational health and safety management systems, with no work-related fatalities or injuries reported in the past three years[73]. - The company has established a health and safety committee to oversee performance and identify potential risks in the workplace[72]. Governance and Compliance - The company confirmed its responsibility for preparing financial statements that fairly reflect the group's financial position, adhering to applicable accounting standards[164]. - The company has established an internal control system to safeguard assets and ensure reliable financial reporting, with an independent professional firm reviewing the internal control processes for the year ended December 31, 2021[167]. - The company has maintained compliance with laws and regulations, ensuring adherence to import regulations in key markets including the US, EU, Japan, and China[141]. - The company has maintained compliance with all applicable corporate governance codes as per the listing rules during the fiscal year ending December 31, 2021[147]. Community Engagement - The group sponsored cash of RMB 10,000 and food groceries to individuals facing financial difficulties[98]. - The group provided 320 hours of physical support through community service during the reporting period[98]. - The company focuses on the needs of the labor class as part of its social responsibility initiatives[98].