Financial Performance - For the year ended December 31, 2023, the company reported total revenue of HKD 1,362,732,000, representing a 28.2% increase from HKD 1,063,058,000 in 2022[3] - Gross profit for the year was HKD 183,725,000, up 41.3% from HKD 129,987,000 in the previous year[3] - The company's net profit attributable to shareholders was HKD 67,871,000, a significant increase of 122.3% compared to HKD 30,504,000 in 2022[3] - Basic earnings per share rose to HKD 13.54, compared to HKD 6.09 in the prior year, reflecting a 122.3% increase[3] - Total comprehensive income for the year was HKD 62,768,000, compared to HKD 5,029,000 in 2022, indicating a substantial improvement[4] - The company reported a consolidated profit before tax of HKD 78,498,000 for 2023, up from HKD 34,336,000 in 2022, marking an increase of approximately 128.5%[20] - The group reported a net profit of HKD 67,871,000 for 2023, a substantial increase from HKD 30,504,000 in 2022, reflecting a growth of approximately 121.5%[34] - Basic earnings per share for fiscal year 2023 were HKD 0.1354, up from HKD 0.0609 in fiscal year 2022[46] Revenue and Sales - Total reported segment revenue for 2023 reached HKD 3,022,310,000, a significant increase from HKD 2,281,576,000 in 2022, representing a growth of approximately 32.5%[20] - Revenue from external customers in North America for 2023 was HKD 271,496,000, while in Europe it was HKD 615,866,000, showing a diversified revenue stream across regions[19] - Major customer A contributed HKD 462,470,000 to total revenue in 2023, up from HKD 311,480,000 in 2022, reflecting a growth of approximately 48.5%[23] - Revenue from goods sales increased to HKD 1,362,732,000 in 2023, up from HKD 1,063,058,000 in 2022, representing a growth of approximately 28.2%[24] Assets and Liabilities - The company's total assets increased to HKD 761,955,000 from HKD 711,225,000, marking a growth of 7.1%[6] - Current assets net value improved to HKD 544,603,000, up from HKD 503,110,000, an increase of 8.2%[6] - The total liabilities reported for 2023 were HKD (217,509,000), a slight increase from HKD (208,274,000) in 2022, indicating a stable financial position[22] - The company's total assets for 2023 were HKD 891,050,000, compared to HKD 854,140,000 in 2022, reflecting a growth of about 4.3%[22] Operational Efficiency - The company reported a decrease in inventory to HKD 144,473,000 from HKD 198,491,000, a reduction of 27.2%[6] - Trade and other receivables increased to HKD 248,009,000 from HKD 178,355,000, reflecting a growth of 38.9%[6] - Trade receivables increased to HKD 223,215,000 in 2023 from HKD 159,402,000 in 2022, reflecting a growth of approximately 39.96%[39] - Trade payables decreased to HKD 148,343,000 in 2023 from HKD 162,873,000 in 2022, a reduction of approximately 8.97%[43] Investments and R&D - The company invested HKD 40,505,000 in new injection molding machines and high-precision laboratory testing equipment to enhance R&D and operational capabilities[49] - The company continues to invest surplus cash into R&D and automation, maintaining its status as a high-tech enterprise in China[47] - The company plans to continue expanding its product offerings with new specifications and models, leading to the write-off of obsolete molds and tools valued at HKD 23,588,000 in 2023[30] Dividends and Employee Costs - The company declared a special dividend of HKD 0.06 per share for 2023, compared to no special dividend in 2022, totaling HKD 30,079,000[31] - Total employee costs rose to HKD 242,236,000 in 2023, up from HKD 209,045,000 in 2022, an increase of approximately 15.9%[28] Compliance and Governance - The company has adopted the standard code for securities trading by directors as per the listing rules, confirming compliance by all directors[68] - The remuneration committee held one meeting during the 2023 fiscal year, consisting of two executive directors and three independent non-executive directors[69] - The audit committee reviewed the group's accounting principles and financial reporting processes, holding two meetings in the 2023 fiscal year[70] - The nomination committee, comprising three independent non-executive directors, convened once during the 2023 fiscal year[71] Future Outlook and Challenges - The group expects significant challenges in 2024 due to geopolitical tensions and economic uncertainties, necessitating rapid responses and new strategies[60] - The group is preparing for the potential new requirements of the Carbon Border Adjustment Mechanism (CBAM) and will consider these in the development of new innovative products[61] Miscellaneous - The group achieved ISO27001 certification on May 4, 2023, demonstrating satisfactory cybersecurity measures to protect data privacy[50] - The company's annual general meeting is scheduled for May 20, 2024, at the InterContinental Hotel in Tsim Sha Tsui, Hong Kong[73]

Financial Performance - Revenue for the six months ended June 30, 2023, was HK$648,916,000, representing an increase of 14.14% compared to HK$568,455,000 for the same period in 2022[38]. - Gross profit for the period was HK$87,798,000, up 43.96% from HK$60,906,000 in the previous year[38]. - Profit before taxation increased to HK$32,157,000, a significant rise of 274.36% from HK$8,585,000 in the prior period[38]. - Profit attributable to shareholders for the period was HK$25,662,000, compared to HK$8,617,000 in the same period last year, marking an increase of 197.66%[38]. - Basic earnings per share rose to 5.12 HK cents, compared to 1.72 HK cents for the same period in 2022[38]. - Total comprehensive income for the period attributable to shareholders was HK$17,299,000, compared to a loss of HK$3,793,000 in the previous year[83]. - The consolidated profit before taxation for the six months ended June 30, 2023, was HK$32,157,000, up from HK$8,585,000 in the previous year, reflecting an increase of approximately 274.5%[193]. Cash and Liquidity - The Group's current ratio improved to 3.50 as of June 30, 2023, compared to 3.42 on December 31, 2022, and the quick ratio increased to 2.83 from 2.46[1]. - Bank balances and cash rose to HK$362,966,000 as of June 30, 2023, up HK$28,587,000 from approximately HK$334,379,000 on December 31, 2022, primarily due to lower inventory levels[1]. - The Group had no bank borrowings as of June 30, 2023, maintaining a gearing ratio of 0.32[1]. - Cash and cash equivalents at January 1, 2023, were HK$334,379, up from HK$244,802 at the same time in 2022, reflecting a growth of 36.5%[66]. - The net increase in cash and cash equivalents for the six months ended June 30, 2023, was HK$27,360, compared to HK$33,236 for the same period in 2022, showing a decrease of 17.5%[66]. - The net cash generated from operating activities for the first half of 2023 was HK$51,563,000, slightly down from HK$54,795,000 in the prior year[87]. Operational Efficiency - The Group's operating profit before working capital changes for the first half of 2023 was HK$48,908,000, compared to HK$18,734,000 in the same period last year, indicating improved operational efficiency[87]. - The Group's depreciation of property, plant, and equipment for the first half of 2023 was HK$14,267,000, down from HK$16,344,000 in the previous year[87]. - The decrease in inventories for the first half of 2023 was HK$58,300,000, while trade and other receivables saw a decrease of HK$49,429,000[87]. Staff and Employment - The Group employed 22 staff in Hong Kong and approximately 495 to 505 staff in its factories in China during the reporting period[16]. - The Group employs approximately 22 staff members in Hong Kong and between 1,400 to 2,000 workers in its PRC factory[154]. Corporate Governance - The Company has established a Remuneration Committee and a Nomination Committee in compliance with Listing Rules[51][29]. - The Company adopted the Model Code for Securities Transaction by Directors to ensure compliance with securities trading standards[48]. - Management confirmed compliance with the required standards set out in the Model Code during the six months ended June 30, 2023[48]. - The independent review report confirms that the interim financial information is prepared in accordance with the relevant provisions of the Listing Rules and HKAS 34[171]. Market and Strategic Outlook - Future outlook remains cautious due to market volatility and economic uncertainties, with no specific guidance provided for the upcoming quarters[64]. - The company is exploring market expansion opportunities in North America and Asia, particularly in the PRC and Japan[77]. - The management anticipates strong challenges in the second half of 2023 due to geopolitical tensions and economic uncertainties, necessitating quick strategic responses[127]. - The Group plans to find an additional manufacturing partner in Southeast Asia, such as Indonesia and Vietnam, to start small-scale pilot production outside China in the second half of 2023 due to ongoing US-China trade tensions[107]. Research and Development - The Group's R&D team will consider new environmental, social, and governance (ESG) requirements when developing innovative products to align with global sustainability trends[12]. - The Group has maintained its status as a high-tech enterprise for the seventh consecutive year through investments in R&D[136]. - The Group plans to invest in new machinery to support the launch of a series of new products while optimizing fixed costs[124]. Shareholder Information - As of June 30, 2023, the total number of issued shares was 501,324,860[10]. - Major shareholder Ms. SUN, Kwing Hai Amelia holds 21.41% of the total issued shares[158]. - The interim dividend declared was 3 Hong Kong cents per ordinary share, up from 2 Hong Kong cents in the corresponding period of 2022[100][108]. - The company approved dividends amounting to HK$20,053,000 during the period, reflecting its commitment to returning value to shareholders[86]. Compliance and Reporting - The company is committed to compliance with Hong Kong Accounting Standard 34 for interim financial reporting, ensuring transparency and accuracy in its financial disclosures[171]. - The Group's management has redefined its operating segments on a continental basis, focusing on customer locations, which may impact future reporting and performance assessments[104]. - The Group's remuneration policies remained unchanged from those disclosed in the 2022 annual report[144].

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，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴該等 內容而引致之任何損失承擔任何責任。 （股份代號：0229） 截至2023年6月30日止6個月之中期業績公告 未經審核財務業績摘要 截至2023年6月30日止6個月 利民實業有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本公司及其附屬 公司（統稱「本集團」）截至2023年6月30日止6個月之未經審核中期業績。本集團截至2023年6月 30日止6個月之簡明綜合損益表，簡明綜合損益及其他全面收益報表及本集團於2023年6月30日之 簡明綜合財務狀況表及選定之說明附註均為未經審核賬目形式編製，但已經由本公司審核委員會 （ 「審核委員會」）及本公司之獨立核數師羅申美會計師事務所審閱。 ...

Financial Performance - For FY2022, the Group's consolidated turnover decreased to HK$1,063,058,000, representing a decrease of approximately 25.85% compared to the previous year[13]. - The net profit for FY2022 was HK$30,504,000, a decrease of approximately 27.30% from HK$41,960,000 in FY2021[13]. - The Group's net profit for FY2022 was HK$30,504,000, with basic earnings per share of 6.09 Hong Kong cents, a decrease from HK$41,960,000 and 8.41 Hong Kong cents in FY2021, respectively[18][20]. - The current ratio improved to 3.42 as of December 31, 2022, compared to 2.76 in the previous year, while the quick ratio increased to 2.46 from 1.99[22][28]. - The gearing ratio decreased to 0.32 as of December 31, 2022, down from 0.42 in FY2021[22][28]. - Trade receivables turnover improved to 55 days in FY2022 from 77 days in FY2021, while inventory turnover increased to 78 days from 64 days[23][29]. - Bank balances and cash rose to HK$334,379,000 as of December 31, 2022, an increase of HK$89,577,000 compared to HK$244,802,000 in FY2021, attributed to lower inventory and capital expenditures[24][29]. - The Board proposed a final dividend of 4 Hong Kong cents per ordinary share for FY2022, consistent with the previous year[27][33]. Research and Development - The Group invested HK$20,102,000 in R&D projects in FY2022, down from HK$32,187,000 in FY2021, to enhance operational capabilities and product development[14]. - The Group's management anticipates that R&D innovations will help enter new market segments and improve profit margins[14]. - The qualification as a high-tech enterprise is expected to provide tax benefits, enhancing the Group's competitiveness in the industry[19]. - The Group maintained its High and New Technology Enterprise (HNTE) status for the sixth consecutive year through investment in R&D[50]. - Research and development expenses increased by 30%, totaling $30 million, to support new technology initiatives[70]. Operational Strategy - The Group's strategy includes maintaining safety stock and optimizing fixed costs to mitigate the impact of supply chain disruptions and geopolitical tensions[9]. - The management has contingency plans to address supply chain disruptions and economic uncertainties, with a focus on maintaining agility and resilience in 2023[43][44]. - The Group's management will focus on improving operational stability by building a more stable global supply chain[51]. - The management's strategy includes scrutinizing the entire value chain to open new business opportunities and better manage working capital[50]. - The Group's management is committed to upskilling and reskilling existing employees to adapt to the adoption of digital technologies[50]. Market and Product Development - The Group plans to launch new products in 2023, aiming to generate more sales revenue from these innovations[17]. - New product launches are expected to contribute an additional $50 million in revenue, with a focus on innovative technology solutions[70]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share within the next two years[70]. - The Group successfully opened new revenue sources from new customers and launched high-value new products in 2022 despite global trade uncertainties[48]. Employee and Governance - Approximately 27 staff members are employed in Hong Kong, while the factory in the PRC employs around 500 to 515 staff members, with total direct or indirect workers ranging from 1,450 to 2,000[55]. - The Company maintains good relationships with employees, ensuring reasonable remuneration and benefits[95]. - The Company is committed to improving communication mechanisms with customers to address complaints and feedback promptly[96]. - The Board comprises three executive Directors, three non-executive Directors, and three independent non-executive Directors[191]. - The Board convened four meetings during FY2022 to ensure effective governance and oversight[200]. Financial Management and Investments - The Group did not have any significant investments, material acquisitions, or disposals during FY2022[41][45]. - The Company has not purchased, sold, or redeemed any of its shares during the year ended 31 December 2022[111]. - The Company has not entered into any substantial management contracts during the year[166]. - There were no arrangements for directors to acquire benefits through shares or debentures during the year ended December 31, 2022[164]. - The auditors RSM Hong Kong have been appointed since June 1, 2020, and will be proposed for re-appointment at the forthcoming annual general meeting[188]. Cybersecurity and Digital Transformation - The Group plans to allocate more resources in 2023 to enhance cybersecurity and aims to achieve ISO27001 certification, which began in 2022[50]. - Significant resources will be required to manage cyber threats, ensuring privacy, identity management, and information security[50]. - The Group has engaged consultants for financial digital transformation to enhance data processing and analysis speed, aiming for improved operational efficiency and better business decision-making[19]. Charitable Contributions - Charitable donations made by the Group during the year ended 31 December 2022 amounted to approximately HK$1,462,000, compared to NIL in 2021[180].

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，並明確表示概不就因本公告全部或任何部分內容而產生或因依賴該等 內容而引致之任何損失承擔任何責任。 （股份代號：0229） 截至2022年12月31日止年度之業績公告 利民實業有限公司（「本公司｣）董事（「董事｣）會（「董事會｣）欣然宣佈本公司及其附屬公司 （統稱「本集團｣）截至2022年12月31日止年度之經審核年度業績及上年度比較數字如下： 綜合損益表 （以港幣為單位） 2022年 2021年 附註 港幣千元 港幣千元 收入 3&4 1,063,058 1,433,612 銷售成本 (933,071) (1,261,281) 毛利 129,987 172,331 其他收入 5 3,455 449 其他淨收益 5 9,438 2,272 銷售費用 (12,350) (15,798) 一般及行政費用 (96,194) (111,982) ...

Financial Performance - The Group's revenue for the first six months of 2022 was HK$568,455,000, representing a decrease of 15.34% compared to HK$671,470,000 in the same period of 2021[7]. - The Group's net profit for the first half of 2022 was HK$8,617,000, down 7.52% from HK$9,318,000 in the corresponding period of 2021[7]. - Gross profit for the same period was HK$60,906,000, down 14.7% from HK$71,476,000 in 2021[118]. - Profit before taxation decreased to HK$8,585,000, a decline of 20.5% from HK$10,824,000 in the previous year[118]. - Profit attributable to shareholders for the period was HK$8,617,000, down 7.5% from HK$9,318,000 in 2021[121]. - Total comprehensive income for the period attributable to shareholders was a loss of HK$3,793,000, compared to a gain of HK$12,770,000 in 2021[121]. - The company reported a decrease in inventories of HK$43,776,000, contrasting with an increase of HK$34,011,000 in the previous year[131]. - The company paid dividends of HK$20,053,000 during the period, compared to HK$29,929,000 in the previous year[133]. - The company reported a foreign exchange loss of HK$12,410,000 during the period[129]. - The Group experienced lower revenue and results in the first half of the year due to seasonal demand, with expectations for higher demand in the second half[165]. Challenges and Market Conditions - Supply chain disruptions, rising interest rates, and geopolitical tensions contributed to the decline in sales demand and net profit[12]. - The management anticipates strong challenges in the second half of 2022 due to ongoing geopolitical tensions and economic uncertainties[13]. - Sales demand for small appliances began to recover at the end of May 2022 following the lifting of lockdowns in the PRC[12]. - The Group's management will focus on forming stronger partnerships with strategic customers to adapt to the evolving business ecosystem[13]. Financial Position and Ratios - The Group's current ratio improved to 3.74 as of June 30, 2022, compared to 2.76 on December 31, 2021[27]. - The quick ratio increased to 2.78 as of June 30, 2022, from 1.99 on December 31, 2021[27]. - Bank balances and cash rose to HK$278,024,000 as of June 30, 2022, up HK$33,222,000 from approximately HK$244,802,000 on December 31, 2021[28]. - The gearing ratio decreased to 0.28 as of June 30, 2022, down from 0.42 on December 31, 2021[27]. - The Group had no bank borrowings or contingent liabilities as of June 30, 2022[28][32]. - Current assets totaled HK$679,927,000, a decrease from HK$789,383,000 as of December 31, 2021[123]. - Net current assets were HK$498,260,000, slightly down from HK$503,501,000 at the end of 2021[123]. - Total equity as of June 30, 2022, was HK$647,070,000, compared to HK$670,830,000 at the end of 2021, indicating a decrease of 3.5%[125]. Corporate Governance - The Company complied with the Corporate Governance Code, with a deviation regarding the service term of independent non-executive directors[77]. - The Company believes sufficient measures have been taken to ensure corporate governance practices meet CG Code standards[86]. - The Company has adopted the Model Code for Securities Transaction by Directors, ensuring compliance by all Directors during the six months ended 30 June 2022[87]. - The Audit Committee reviewed the accounting practices and interim financial results for the six months ended 30 June 2022, ensuring adherence to relevant standards[93]. - The Company has established a Nomination Committee comprising three independent non-executive Directors to oversee director nominations[94]. Shareholder Information - As of June 30, 2022, the total number of issued shares of the company was 501,324,860 ordinary shares[67]. - Dr. Wong, Man Hin Raymond held 16,527,972 shares, representing 3.30% of the total issued shares[60]. - Mr. Wong, Ying Man John owned 58,845,136 shares, accounting for 11.74% of the total issued shares[60]. - Dr. Wong, Kin Lae Wilson was the beneficial shareholder of 107,198,981 shares, which is 21.41% of the total issued shares[63]. - The interests disclosed represent long positions in the shares of the company[67]. - As of June 30, 2022, substantial shareholders include Ms. SUN, Kwing Hai Amelia with 107,348,981 shares, representing 21.41% of total issued shares[71]. Operational Developments - The Group will continue to invest in research and development to maintain its High and New Technology Enterprise status for the sixth consecutive year[13]. - The integration of the ERP system with Microsoft Power BI aims to enhance financial analytics and decision-making capabilities[17]. - The Group is preparing to comply with the Carbon Border Adjustment Mechanism (CBAM) and other ESG requirements to remain competitive in the market[18]. - The Group did not engage in any significant investments, acquisitions, or disposals during the six months ended June 30, 2022[35][38]. - The Group's transactions were primarily conducted in USD, HKD, and RMB, with no further exposure to foreign currency fluctuations anticipated[37][40].

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].