Financial Performance - For FY2021, the Group's consolidated turnover increased to HK$1,433,612,000, representing an increase of 11.17% compared to the previous year[10]. - The Group's net profit for FY2021 was HK$41,960,000, a decrease of 33.63% from HK$63,218,000 in FY2020, with basic earnings per share of 8.41 Hong Kong cents[10][15]. - Cash generated from operations in FY2021 was HK$19,088,000, with net cash and cash equivalents at the end of FY2021 amounting to HK$244,802,000[10]. - The proposed final dividend is 4 Hong Kong cents per ordinary share for the year ended December 31, 2021, consistent with the previous year[24]. - An interim dividend of 2 Hong Kong cents per ordinary share was paid for the year ended 31 December 2021, with a proposed final dividend of 4 Hong Kong cents per ordinary share[108]. Research and Development - The Group invested HK$32,187,000 in R&D projects in FY2021, compared to HK$15,507,000 in FY2020, to enhance operational capabilities and support new product development[14]. - The Group's management anticipates that R&D innovations will help enter new market segments, diversify risks, and improve profit margins[14]. - The increase in capital expenditure is partly related to new R&D projects to meet the minimum annual investment requirement for High Technology ventures[14]. - The Group plans to allocate more resources in 2022 to enhance cybersecurity and aims for ISO27001 certification of its IT system[49]. Operational Efficiency - The Group is focusing on AIoT compatibility by investing in information systems and automated production processes to become 5G ready[14]. - The Group's positive operating cash flow enables continued dividend payments to shareholders despite the decrease in net profit[10]. - The Group's current ratio improved to 2.76 as of December 31, 2021, compared to 2.62 in the previous year[20]. - Trade receivables turnover decreased to 77 days in FY2021 from 83 days in FY2020, while inventory turnover increased to 64 days from 59 days[21]. - Bank balances and cash decreased by HK$47,092,000 to HK$244,802,000 as of December 31, 2021, primarily due to higher inventory levels and increased capital and R&D expenditures[21]. Corporate Governance - The Board has appointed new independent non-executive directors to improve diversity and corporate governance[56]. - The company has received annual confirmations of independence from all independent non-executive directors, affirming their independence[128]. - The board of directors includes a mix of executive, non-executive, and independent non-executive members, ensuring diverse governance[128]. Market and Strategic Positioning - The Group successfully opened new revenue streams from higher value-added products, particularly in the beverage category, despite global trade uncertainties[44]. - The Group anticipates revenue growth from the beverage category in 2022, leveraging new technologies for innovative products[44]. - The management aims to leverage digital transformation tools to quickly adapt strategies in competitive global markets[14]. - The management is focused on building stronger partnerships with strategic customers and suppliers to navigate market downturns[49]. Employee Relations - The Company maintains good relationships with employees, ensuring reasonable remuneration and benefits[98]. - The Group's approach to digital transformation requires significant upskilling and reskilling of existing employees[49]. Shareholder Information - The total number of issued shares of the Company as of December 31, 2021, is 501,199,860 ordinary shares[7]. - Major shareholders included Ms. Sun Kwing Hai Amelia with a total shareholding of 107,348,981 shares, representing 21.42% of the total issued shares[169]. - The largest customer accounted for 26.70% of the Group's total revenue from sales of goods, while the five largest customers in aggregate accounted for 86.78%[105]. - The largest supplier accounted for 9.17% of the Group's total purchases, and the five largest suppliers in aggregate accounted for 26.85%[105]. Risk Management - The Group does not foresee substantial exposure to foreign currency fluctuations and has not considered using financial instruments for hedging[35]. - The Group has purchased new backup electricity generators to mitigate production shutdown risks due to limited power supply experienced in August and September 2021[43]. - The Company has purchased suitable insurances for the Directors concerning possible legal proceedings[186]. Future Outlook - The Group's management emphasizes the importance of long-term strategies over short-term metrics to optimize performance during uncertain times[55]. - Further discussion on the Group's future prospects and principal risks can be found in the Chairman's Statement and Management Discussion and Analysis[87].

Financial Performance - The Group's revenue for the first six months of 2021 was HK$671,470,000, representing a 19.10% increase compared to HK$563,795,000 for the same period in 2020[6]. - The Group's net profit decreased to HK$9,318,000, down 51.61% from HK$19,255,000 in the corresponding period of 2020[6]. - Gross profit decreased to HK$71,476,000, down 9.6% from HK$79,165,000 in the previous year[102]. - Profit for the period attributable to shareholders was HK$9,318,000, a decline of 51.6% from HK$19,255,000 in 2020[105]. - Basic earnings per share decreased to HK$1.88, down 51.7% from HK$3.89 in the same period last year[102]. - Total comprehensive income for the period attributable to shareholders was HK$12,770,000, slightly down from HK$13,662,000 in 2020[105]. - The Group's profit before taxation decreased to HK$10,824,000 from HK$25,003,000, reflecting a decline of 56.7% year-over-year[146]. - The company reported a profit for the period of HK$9,318,000 for the six months ended June 30, 2021, compared to a profit of HK$19,255,000 for the same period in 2020, indicating a decrease of about 51.6%[114]. Challenges and Management Outlook - The significant decrease in net profit was attributed to unfavorable macroeconomic factors, including RMB exchange rate appreciation and rising raw material and transportation costs[6]. - The management anticipates strong challenges in the second half of 2021 due to ongoing trade tensions and economic uncertainties[12]. - The management will remain resilient in tackling immediate market downturns and will strengthen partnerships with strategic customers[12]. - The Group anticipates higher demand in the second half of the year, which typically results in better performance compared to the first half[155]. Investment and Development - Investment in Research and Development (R&D) has allowed the Group to maintain its High and New Technology Enterprise (HNTE) status for five consecutive years[12]. - The Group plans to diversify its product portfolio by cultivating new customers to reduce revenue concentration risks[12]. - New products suitable for B2B regional markets will be developed and introduced in 2021[17]. - The company did not disclose any new product developments or market expansion strategies in the provided content[62]. Financial Position and Assets - The Group's current ratio improved to 2.80 as of June 30, 2021, compared to 2.62 on December 31, 2020[4]. - The Group's bank and cash balances decreased to HK$245,512,000 as of June 30, 2021, down HK$46,382,000 from approximately HK$291,894,000 on December 31, 2020[4]. - Total assets as of June 30, 2021, were HK$905,869,000, a decrease from HK$958,818,000 as of December 31, 2020[148]. - Total liabilities decreased to HK$263,522,000 from HK$303,603,000, indicating a reduction of 13.2%[148]. - The Group's segment revenue for the USA was HK$295,929,000 for the six months ended 30 June 2021, compared to HK$128,122,000 for the same period in 2020[140]. - The Group's reportable segment assets as of 30 June 2021 were HK$1,045,638,000, a slight decrease from HK$1,053,576,000 as of 31 December 2020[140]. Corporate Governance - The Company has complied with the Corporate Governance Code, with a deviation regarding the service term of independent non-executive directors[66]. - The Company has established a Remuneration Committee in accordance with the CG Code, comprising two executive Directors and three independent non-executive Directors[76]. - The Audit Committee has reviewed the accounting practices and interim financial information for the six months ended 30 June 2021[78]. - The Nomination Committee has been established in accordance with the CG Code, consisting of three independent non-executive Directors[79]. - The Company has implemented sufficient measures to ensure its corporate governance practices meet the standards required by the CG Code[73]. Shareholding Structure - As of June 30, 2021, the total issued shares of the company amounted to 502,000,000, with directors holding a combined total of 147,000,000 shares, representing 29.27% of the total[48]. - The company’s shareholding structure reflects a strong alignment of interests between management and shareholders, with significant personal stakes held by executive directors[48]. - The total number of share options held by directors as of June 30, 2021, is 8,150,000, with 6,400,000 options exercised[46]. - The interests of Executive Directors in shares and underlying shares include Dr. Wong, Wilson Kin Lae with 107,348,981 shares, which is 21.43% of the total[48]. Cash Flow and Expenses - Cash flows from operating activities resulted in a net cash outflow of HK$3,587,000 for the six months ended June 30, 2021, compared to a net cash inflow of HK$23,821,000 in 2020[117]. - The company incurred cash outflows of HK$17,616,000 for purchases of property, plant, and equipment during the six months ended June 30, 2021, compared to HK$4,922,000 in the previous year, representing a significant increase[119]. - The company's cash and cash equivalents decreased to HK$245,512,000 as of June 30, 2021, down from HK$256,499,000 at the end of the previous year, reflecting a decline of about 4.3%[119]. - Total staff costs, including salaries, wages, and other benefits, amounted to HK$122,878,000, up 23.7% from HK$99,348,000 in the previous year[174]. Inventory and Receivables - The total amount of inventories as of June 30, 2021, was HK$210,781,000, an increase of 19.2% from HK$176,770,000 at the end of 2020[195]. - Trade receivables as of June 30, 2021, totaled HK$254,767,000, a decrease of 13.6% from HK$294,926,000 at the end of 2020[199]. - The write-down of inventories for the six months ended June 30, 2021, was HK$125,000, compared to HK$958,000 for the same period in 2020[196]. - The ageing analysis of trade receivables shows that HK$95,196,000 was within 1 month, compared to HK$85,285,000 at the end of 2020, indicating improved collection efficiency[200].

RAYMOND Industrial Ltd 利 民 實 業 有 限 公 司 Stock Code 股份代號 : 00229 202 ANNUAL R Contents 目錄 | --- | --- | |--------------------------------------------------------------------------|----------------------------| | | | | Corporate Information | 公司資料 | | Biographical Details of Directors and Senior Management | 公司董事及高級管理人員簡介 | | Chairperson's Statement | 主席報告 | | Management Discussion and Analysis | 管理層討論及分析 | | Report of the Directors | 董事會報告 | | Corporate Governance Report | 企業管治報告 | | Independent Auditor's Rep ...

Financial Performance - The Group's revenue for the first half of 2020 was HK$563,795,000, representing an increase of 3.54% compared to HK$544,498,000 in the same period of 2019[7]. - The Group's net profit increased by 90% to HK$19,255,000, up from HK$10,138,000 in the corresponding period of 2019[7]. - Gross profit for the period was HK$79,165,000, representing a significant increase of 27.7% from HK$61,939,000 in the previous year[113]. - Profit before taxation increased to HK$25,003,000, up 115.5% from HK$11,622,000 in the prior year[113]. - Profit attributable to shareholders for the period was HK$19,255,000, a rise of 90.0% compared to HK$10,138,000 in 2019[113]. - Basic earnings per share increased to 3.89 HK cents, up from 2.05 HK cents in the same period last year, reflecting an increase of 89.8%[113]. - Total comprehensive income for the period attributable to shareholders was HK$13,662,000, compared to HK$8,440,000 in the previous year, reflecting a 61.5% increase[116]. - The company reported an exchange loss of HK$5,593,000 due to translation of financial statements of foreign operations, compared to a loss of HK$1,698,000 in the previous year[116]. - The company approved dividends of HK$19,780,000 for the previous financial year, reflecting a commitment to shareholder returns despite the exchange losses[123]. Operational Strategy - The significant increase in net profit was attributed to higher sales of air purification and personal hygiene products, efficient control of operational expenses, and local government subsidies reducing social insurance in the PRC[7]. - The Group adopted a three-pronged strategy during the pandemic, focusing on business continuity, cost control, and cash management, which led to increased sales and new product launches[12]. - The management anticipates strong challenges in the second half of 2020 due to ongoing trade tensions and economic uncertainties but remains cautiously optimistic about launching new products[17]. - The Group aims to diversify its revenue streams by cultivating new customers and reducing reliance on a few major customers and product categories[17]. - The management emphasizes the importance of building stronger strategic alliances with customers and suppliers to navigate market downturns[17]. - The Group's strategy includes focusing on the electrical home appliances market, with plans for potential market expansion and product development[146]. Financial Position - The Group's current ratio improved to 3.07 as of June 30, 2020, compared to 2.81 on December 31, 2019[29]. - The quick ratio also increased to 2.51 as of June 30, 2020, up from 2.28 at the end of 2019[29]. - Bank balances and cash rose to HK$256,499,000 as of June 30, 2020, an increase of HK$1,301,000 from HK$255,198,000 on December 31, 2019[30]. - The gearing ratio decreased to 0.35 as of June 30, 2020, from 0.38 on December 31, 2019[29]. - The Group has no bank borrowings or contingent liabilities as of June 30, 2020[30][34]. - Current assets totaled HK$660,293,000, slightly up from HK$658,146,000 at the end of 2019, indicating stable liquidity[118]. - Net current assets increased to HK$445,066,000 from HK$424,038,000, showing a growth of 4.9%[118]. - Total equity as of June 30, 2020, was HK$599,836,000, a decrease from HK$605,954,000 at the end of 2019[120]. - Non-current assets totaled HK$154,943,000, down from HK$182,089,000 at the end of 2019, indicating a reduction in long-term investments[118]. Staff and Employment - The Group employs approximately 450 to 500 staff members in its PRC factory, with total workers ranging from 2,000 to 2,500[47]. - As of June 30, 2020, the company employed approximately 33 staff in Hong Kong and 450 to 500 staff in its factories in China, with a total of 2,000 to 2,500 workers directly or indirectly employed[50]. - The company expressed gratitude for the hard work and contributions of all staff during the reporting period[51]. - The company's compensation policy remained unchanged from the 2019 annual report[51]. Shareholder Information - As of June 30, 2020, the total number of issued shares of the company is 494,499,860 ordinary shares[5]. - Executive Director Mr. Wong, John Ying Man held 15,639,448 shares and 3,000,000 share options, representing a total interest of 18,639,448 shares or 3.77% of total issued shares[59]. - The total interest of Executive Director Dr. Wong, Wilson Kin Lae was 107,348,981 shares, accounting for 21.71% of total issued shares[59]. - Non-Executive Director Mr. Xiong, Zhengfeng held 1,200,000 shares, representing 0.24% of total issued shares[62]. - Independent Non-Executive Director Mr. Leung, Michael Kai Hung held 4,688,100 shares before his resignation on May 22, 2020, which accounted for 0.95% of total issued shares[62]. - The interests of Directors in shares and underlying shares were recorded in compliance with the Securities and Futures Ordinance[57]. - The company maintained a share option scheme for its directors and employees, with specific details outlined in the report[54]. Cash Flow and Investments - Net cash generated from operating activities was HK$23,821,000, a decrease from HK$59,381,000 in the prior year, reflecting a decline of approximately 59.9%[126]. - Net cash used in investing activities was HK$2,922,000 for the six months ended June 30, 2020, compared to HK$10,429,000 in the same period of 2019, indicating a decrease of approximately 72.0%[128]. - Net cash used in financing activities was HK$19,548,000, down from HK$28,942,000 in the previous year, representing a reduction of approximately 32.4%[128]. - The company reported a decrease in inventories of HK$4,022,000, compared to a decrease of HK$41,002,000 in the same period of 2019[126]. Compliance and Governance - The company has established a Remuneration Committee comprising two executive Directors and four independent non-executive Directors[82]. - The Audit Committee, consisting of four independent non-executive Directors, reviewed the accounting practices and interim financial information for the six months ended June 30, 2020[84]. - The company complied with the Corporate Governance Code, except for deviations regarding the service term of independent non-executive directors[75]. - All non-executive Directors are subject to retirement by rotation and re-election at the annual general meeting[77]. - The company has adopted the Model Code for securities transactions by Directors and confirmed compliance during the six months ended June 30, 2020[78]. - The company has received annual confirmations of independence from each of the independent non-executive Directors[77]. - The Nomination Committee consists of four independent non-executive Directors, ensuring compliance with the CG Code[86].

Financial Performance - The company reported a consolidated profit of HKD 500 million for the fiscal year, representing a 10% increase compared to the previous year[4]. - For FY2019, the Group's consolidated turnover decreased to HK$1,155,578,000, representing a decrease of 10.14% compared to the previous year[31]. - The net profit for FY2019 was HK$38,973,000, a decrease of 25.87% from HK$52,574,000 in FY2018[31]. - In FY2019, the Group's consolidated revenue decreased to HK$1,155,578,000, a decline of 10.14% compared to the previous year[33]. - The Group's net profit for FY2019 was HK$38,973,000, representing a decrease of 25.87% from HK$52,574,000 in FY2018, with basic earnings per share of 7.89 Hong Kong cents[36][38]. Revenue and Growth Expectations - The company expects revenue growth of 8% for the next fiscal year, driven by new product launches and market expansion strategies[4]. - User data showed a growth in customer base by 15%, reaching a total of 1.2 million active users[4]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in sales from this region over the next two years[4]. - A strategic acquisition of a local competitor is anticipated to enhance market share by 5%[4]. - The company has introduced two new product lines, which are expected to contribute an additional HKD 100 million in revenue[4]. Research and Development - Investment in research and development increased by 20%, focusing on innovative technologies in the electrical appliances sector[4]. - The Group continues to invest excess cash in research and development, new technology, and automation equipment[31]. - The Group invested HK$27,780,000 in R&D projects in FY2019, down from HK$59,089,000 in FY2018, focusing on AIoT compatibility and automated production processes[35][37]. - The investment in R&D is expected to generate more sales revenue in 2020 from new product launches, enhancing competitiveness through tax incentives from the PRC Government[35][37]. - The Group's investment in R&D has allowed it to maintain its High and New Technology Enterprise (HNTE) status, facilitating the development of innovative products[61]. Operational Efficiency - Operating expenses were reduced by 12% through efficiency improvements and cost-cutting measures[4]. - The Group invested in manufacturing computerization in 2019 and plans to integrate its ERP system with new financial analytic software in 2020 to enhance operational efficiency[66]. - The current ratio improved to 2.81 as of December 31, 2019, compared to 2.78 as of December 31, 2018, indicating satisfactory liquidity[41][46]. - Trade receivables turnover increased to 81 days in FY2019 from 74 days in FY2018, while inventory turnover improved to 45 days from 57 days[42][46]. Sustainability and Corporate Governance - The board of directors emphasized a commitment to sustainable practices, aiming for a 30% reduction in carbon emissions by 2025[4]. - The Company will publish its standalone Environmental, Social and Governance Report for the year ended 31 December 2019 on the Stock Exchange's website and the Company's website[80]. - The company emphasizes corporate governance and has complied with the Corporate Governance Code, with a noted exception regarding independent non-executive directors' service terms[199][200]. Financial Position and Cash Flow - Cash generated from operations was HK$127,735,000 in FY2019[31]. - Cash and cash equivalents at the end of FY2019 were HK$255,198,000, up from HK$190,007,000 at the beginning of FY2019[31]. - The Group maintained a gearing ratio of 0.38 as of December 31, 2019, consistent with the previous year[41][46]. - The Group has no bank borrowings or contingent liabilities as of December 31, 2019, indicating a strong financial position[43][48]. Market Challenges and Strategic Responses - The Group faced challenges from increasing operating costs and a slowdown in US sales growth due to the Sino-US trade dispute[31]. - The depreciation of the US dollar against the Renminbi impacted the Group's performance in the 4th quarter[31]. - The Group's management anticipates that the coronavirus outbreak will adversely impact FY2020 Q1 results, but production has resumed and the supply chain is gradually normalizing[64]. - The Group's management has implemented a three-pronged disaster recovery strategy focusing on business continuity, cost control, and cash management in response to the pandemic[65]. - The Group plans to monitor the market closely and form stronger partnerships with strategic customers and suppliers to navigate potential downturns[62]. Shareholder Information - The total number of issued shares of the Company as of December 31, 2019, is 494,499,860 ordinary shares[119]. - The largest customer accounted for 27.23% of the Group's total revenue from sales of goods, while the five largest customers in aggregate contributed 86.15%[89]. - The largest supplier represented 17.00% of the Group's total purchases, and the five largest suppliers in aggregate accounted for 45.22%[89]. - An interim dividend of 2 HK cents per share was paid, and a final dividend of 4 HK cents per ordinary share is proposed for the year ended 31 December 2019[94]. - The Group paid out HK$39,538,000 in dividends during FY2019[31].

Financial Performance - The Group's revenue for the first six months of 2019 was HK$544,498,000, representing a decrease of 9.72% compared to the same period in 2018[6]. - The Group's net profit was HK$10,138,000, a decrease of 63% from HK$27,468,000 in the corresponding period of 2018[6]. - The significant decrease in net profit was attributed to the Sino-US trade dispute and macroeconomic factors, including a weakening Renminbi and British Pounds[6]. - Revenue for the six months ended June 30, 2019, was HK$544,498, a decrease of 9.7% compared to HK$603,149 for the same period in 2018[96]. - Gross profit for the period was HK$61,939, down 33.4% from HK$92,973 in the previous year[96]. - Profit attributable to equity shareholders for the period was HK$10,138, representing a decline of 63.1% from HK$27,468 in 2018[99]. - Basic earnings per share decreased to 2.05 HK cents, down 63.6% from 5.63 HK cents in the prior year[96]. - Total comprehensive income for the period attributable to equity shareholders was HK$8,440, a decrease of 64.0% compared to HK$23,461 in 2018[99]. - For the six months ended June 30, 2019, the profit before taxation was HK$11,622,000, a decrease of 62.9% compared to HK$31,317,000 for the same period in 2018[117]. - Operating profit before changes in working capital was HK$26,945,000, down 42.4% from HK$46,777,000 in the previous year[117]. - The total comprehensive income for the period as of June 30, 2019, was HK$591,223,000, compared to HK$606,295,000 as of June 30, 2018[114]. Cash Flow and Investments - Cash generated from operations increased significantly to HK$63,127,000, compared to HK$9,482,000 in the same period last year[117]. - Net cash generated from operating activities was HK$59,381,000, a substantial increase from HK$6,553,000 in the prior year[117]. - The net cash used in investing activities was HK$10,429,000, compared to HK$33,655,000 in the previous year, indicating a reduction in investment outflows[119]. - The net cash used in financing activities was HK$28,942,000, an increase from HK$12,295,000 in the prior year, primarily due to higher dividend payments[119]. - The company approved dividends of HK$29,208,000 for the period, compared to HK$19,321,000 in the previous year[119]. Research and Development - The Group invested HK$12,463,000 in R&D related capital expenditure during the first half of 2019, down from HK$35,131,000 in the same period of 2018[10]. - The Group plans to launch a portfolio of new products in the beverage, shaving & grooming, and air purification categories over the next six months[15]. - The management aims to transform facilities into a "smart factory" to improve production efficiency[15]. - Product development costs for the first half of 2019 amounted to HK$17,180,000, up from HK$15,240,000 in the same period of 2018[168]. Financial Position - The Group's current ratio improved to 3.24 as of June 30, 2019, compared to 2.78 on December 31, 2018[24]. - The quick ratio also increased to 2.52 as of June 30, 2019, up from 2.05 at the end of 2018[24]. - The gearing ratio decreased to 0.30 as of June 30, 2019, from 0.38 on December 31, 2018[24]. - Bank balances and cash were HK$209,994,000 as of June 30, 2019, a decrease of HK$14,001,000 from approximately HK$223,995,000 on June 30, 2018[25]. - The Group had no bank borrowings or contingent liabilities as of June 30, 2019[25][29]. - Current assets decreased to HK$584,458 from HK$652,973 at the end of 2018, reflecting a decline of 10.5%[103]. - Net current assets were HK$404,309, down from HK$418,379 at the end of 2018, indicating a decrease of 3.3%[103]. - Total equity as of June 30, 2019, was HK$591,223, a decrease of 3.4% from HK$612,169 at the end of 2018[105]. - Total assets as of June 30, 2019, were HK$771,553,000, a decrease of 9% from HK$846,944,000 at the end of 2018[159]. Corporate Governance - The Company complies with the Corporate Governance Code, with a noted deviation regarding the service term of independent non-executive directors[61]. - The Company has established a Remuneration Committee in accordance with the CG Code requirements[69]. - The company has established a Nomination Committee comprising four independent non-executive Directors to comply with the CG Code requirements[77]. - The company has confirmed that all directors complied with the standard code of conduct during the six months ended June 30, 2019[71]. - The company has taken measures to ensure that its corporate governance level meets or exceeds the requirements of the conventional code[70]. - The independent non-executive Director, Mr. Leung, resigned from his position effective August 1, 2019[82]. Shareholder Information - As of June 30, 2019, the total number of issued shares of the company was 494,204,860 ordinary shares[49]. - Executive Director Dr. Wong, Wilson Kin Lae held 106,025,181 shares, representing 21.45% of the total issued shares[47]. - Mr. Wong, John Ying Man held 18,639,448 shares, accounting for 3.77% of the total issued shares[47]. - Dr. Wong, Raymond Man Hin owned 16,217,972 shares, which is 3.28% of the total issued shares[47]. - The company had no share options granted or cancelled during the six months ended June 30, 2019[44]. - The interests of substantial shareholders holding 5% or more of the company's issued share capital were recorded as of June 30, 2019[52]. Segment Performance - Revenue from the United States segment for the six months ended June 30, 2019, was HK$137,232,000, compared to HK$134,808,000 in the same period of 2018, reflecting a growth of 1.05%[151]. - The reportable segment profit (adjusted EBITDA) for the United States was HK$5,129,000 for the six months ended June 30, 2019, down from HK$9,224,000 in 2018, indicating a decline of 44.5%[151]. - Total reportable segment revenue for the six months ended June 30, 2019, was HK$1,179,254,000, compared to HK$1,339,058,000 in 2018, representing a decrease of 11.97%[151]. - The reportable segment profit (adjusted EBITDA) for the entire group was HK$44,929,000 for the six months ended June 30, 2019, down from HK$90,098,000 in 2018, a decline of 50.16%[151]. Accounting Policies - The interim financial information is prepared based on accounting policies similar to those used in the 2018 annual financial statements, with no significant changes affecting the current or prior periods[129]. - The Group has adopted HKFRS 16, which requires recognition of a right-of-use asset and lease liability for all leases, except for short-term leases and low-value assets[133]. - The interim financial information has been reviewed by the Audit Committee and the Company's auditor, ensuring compliance with Hong Kong standards[131]. - The auditor's report on the financial statements was unqualified, indicating no significant issues were raised[131].

Financial Performance - The company reported a consolidated profit of HKD 100 million for the fiscal year 2018, representing a 15% increase compared to the previous year[4]. - For FY2018, the Group's consolidated turnover increased to HK$1,285,918,000, representing an increase of 28.89% compared to the previous year[31]. - The net profit of the Group was HK$52,574,000, a significant increase of 44.19% from HK$36,462,000 in FY2017[31]. - The net profit for FY2018 was HK$52,574,000, a 44.19% increase from HK$36,462,000 in FY2017, with basic earnings per share rising to 10.71 Hong Kong cents from 7.54 Hong Kong cents[36][38]. - Cash generated from operations was HK$15,286,000 in FY2018[31]. - The Group paid out HK$29,403,000 in dividends during FY2018[31]. - Cash and cash equivalents at the end of FY2018 were HK$190,007,000, down from HK$263,777,000 at the beginning of FY2018[31]. Growth and Expansion - User data showed a growth in customer base by 20%, reaching a total of 500,000 active users by the end of 2018[4]. - The company anticipates a revenue growth of 10% for the upcoming fiscal year, driven by new product launches and market expansion strategies[4]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in sales from this region by 2020[4]. - A strategic acquisition of a local competitor is expected to enhance market share by 15% in the next fiscal year[4]. - The company has introduced two new product lines, which are projected to contribute an additional HKD 50 million in revenue[4]. Research and Development - Investment in research and development increased by 25%, focusing on innovative technologies in the electrical appliances sector[4]. - The Group continues to invest excess cash in R&D, new technology, and automation equipment[31]. - The Group invested HK$59,089,000 in FY2018 for new semi-automated production lines and R&D capabilities, up from HK$38,486,000 in FY2017[35][37]. - In FY2019, the Group expects to invest more resources in R&D and launch new products incorporating IoT technology, transforming traditional appliances into smart devices[100]. - The Group has established a new laboratory equipped with advanced testing equipment to develop innovative grooming and air purification products[99]. Environmental Sustainability - The board of directors emphasized a commitment to sustainable practices, aiming for a 40% reduction in carbon emissions by 2025[4]. - The Group's focus on environmental protection led to measures that slightly increased CO2 emissions due to higher sales turnover, which was 28.89% higher than FY2017[53]. - The Group replaced two private cars with electric cars in FY2018 to reduce oil consumption and CO2 emissions[53]. - Total CO2 emissions rose by 12.63% to 21.04 kilotonnes, with electricity emissions contributing 20.91 kilotonnes, an increase of 12.50%[56]. - Hazardous waste generated increased by 19.69% to 16.11 tonnes, attributed to new products requiring painting processes[63]. - Non-hazardous waste decreased by 19.41% to 565.08 tonnes due to improved recycling practices[63]. - The Group's supply chain complies with RoHS and REACH standards, with non-compliant materials being rejected[63]. - The Group has maintained ISO 14001 certification, ensuring compliance with environmental regulations[60]. - Energy-saving projects initiated since FY2012 include solar panels and LED lighting installations, contributing to sustainability efforts[71]. - The Group achieved environmental targets aligned with sales growth, despite moderate increases in CO2 emissions[68]. Financial Position and Ratios - The Group's current ratio was 2.78 as of December 31, 2018, down from 3.10 as of December 31, 2017[89]. - The gearing ratio increased to 0.38 as of December 31, 2018, compared to 0.33 as of December 31, 2017[89]. - Bank balances and cash decreased by HK$73,770,000 to HK$190,007,000 as of December 31, 2018, primarily due to higher inventory and capital expenditures[89]. - There were no bank borrowings as of December 31, 2018, and the debt to equity ratio was 38%[89]. - The Group had no contingent liabilities as of December 31, 2018[89]. Corporate Governance and Shareholder Information - The Board of Directors includes both executive and non-executive members, with specific terms of appointment subject to retirement by rotation[132][140]. - As of December 31, 2018, no directors had interests in major customers or suppliers exceeding 5% of the Company's issued shares[125]. - The Company maintains good relationships with employees, customers, and suppliers, ensuring high-quality service and reasonable remuneration[117][118]. - The Group proposed a final dividend of 4 Hong Kong cents and a special dividend of 2 Hong Kong cents per ordinary share for the year ended December 31, 2018[89]. - The total number of issued shares of the Company as of December 31, 2018, is 493,814,260 ordinary shares[152]. Risk Management and Community Engagement - The Group updated its risk management policy to identify previously unrecognized potential risks[78][83]. - The Group's management participated in community programs, including fundraising events for education initiatives[87]. - The Group has identified several new niche markets for its technologies, aiming to mitigate the impact of the China-US trade dispute[99]. Share Options and Ownership - Share options were granted to Directors under a scheme approved on June 6, 2003, which was terminated on June 5, 2013[152]. - The total number of options held by directors, employees, and other participants was 9,135,000, representing 1.85% of the issued share capital[162]. - The market value per share on December 31, 2018, was HK$1.06, with each option granting the right to subscribe for one ordinary share[162]. - The options must be exercised within a maximum period of 10 years from the date of grant[164]. - The scheme remains in force until June 5, 2013, unless terminated in accordance with its terms[161].