股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 龍記集團控股有限公司 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00255 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | HKD | | 0.1 HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | HKD | | | | 本月底結存 | | | 1,000,000,000 | HKD | | 0.1 HKD | | 100,000,000 | 本月底法定/註冊股本總額： HKD 100,000,00 ...

Financial Performance - The group's revenue for the year ended December 31, 2024, was HKD 1,553,244,000, representing a 7.2% increase from HKD 1,449,340,000 in 2023[16][25] - The loss attributable to shareholders for the year was HKD 13,673,000, a significant improvement from a loss of HKD 72,431,000 in 2023[16][23] - Basic loss per share for the year was HKD 0.0216, compared to HKD 0.1147 in the previous year[16] - The cost of materials and consumables used to generate revenue decreased by 5.3%, with the percentage of these costs relative to revenue dropping to 38.7% from 43.8% in 2023[25] - The fair value of investment properties decreased by HKD 3,000,000 compared to the same period last year, and other income, gains, and losses decreased by HKD 11,387,000[27] - The tax credit decreased by HKD 34,499,000 mainly due to a reduction in deductible losses, resulting in a loss of HKD 13,673,000 for the year ended December 31, 2024, a decrease of 81.1% from HKD 72,431,000 in 2023[27] - As of December 31, 2024, the total equity of the group was HKD 1,673,543,000, down from HKD 1,798,762,000 as of December 31, 2023[28] - The group's bank deposits and cash amounted to HKD 546,648,000 as of December 31, 2024, compared to HKD 428,758,000 as of December 31, 2023, with no borrowings reported[28] Strategic Focus and Market Outlook - The group plans to adjust marketing strategies to explore greater opportunities in China and other overseas markets to mitigate risks and enhance market coverage[17] - The demand for high-end electronic technology products and environmentally friendly appliances is expected to continue improving, driven by government initiatives to stimulate consumption[19] - The group will focus on research and development of plastic and die-casting production technologies to enhance overall processing capabilities and product quality[19] - The group aims to maintain a competitive edge by continuously reducing costs and improving efficiency[19] - The geopolitical tensions and economic uncertainties are anticipated to pose challenges for business prospects in 2025[17] - The group will celebrate its 50th anniversary in 2025, committing to innovation and steady growth in a changing business environment[19] Corporate Governance - The board of directors consists of six executive directors and three independent non-executive directors, ensuring a balance of governance and independence[36] - The company has complied with all provisions of the Corporate Governance Code as set out in the Listing Rules during the fiscal year ended December 31, 2024[32] - The board held four regular meetings during the fiscal year, with all directors attending the annual general meeting[39] - The company has established specific committees, including audit, nomination, and remuneration committees, to oversee various matters throughout the year[48] - The nomination committee's responsibilities include reviewing the board's structure, assessing the independence of non-executive directors, and evaluating retirement policies[50] - The board's diversity policy emphasizes the importance of various factors such as gender, age, cultural background, and professional experience in board composition[54] - The company aims to maintain the current level of female representation on the board and gradually increase it through qualified candidate selection[57] - The nomination committee held four meetings in the fiscal year ending December 31, 2024, with full attendance from all members[49] Risk Management and Internal Controls - The Audit Committee reviewed the consolidated financial statements for the year ending December 31, 2023, and recommended their approval to the board[67] - The Audit Committee met four times in the fiscal year ending December 31, 2024, to review quarterly performance and internal audit results[66] - The company plans to reappoint Deloitte as the external auditor for the fiscal year 2025, subject to shareholder approval[69] - The Audit Committee evaluated the effectiveness of the group's risk management and internal control systems[70] - The risk management and internal control systems are reviewed annually by a special committee, ensuring effectiveness in managing significant risks, including ESG-related risks[72] - The internal audit department regularly reports to the board and audit committee on the effectiveness of internal controls and identifies any significant weaknesses[74] - The group has established policies to ensure assets are safeguarded and complies with relevant regulations, maintaining reliable financial records[72] - The board is responsible for preparing financial statements that fairly reflect the group's financial position, with no known significant uncertainties affecting the group's ability to continue as a going concern[71] Environmental, Social, and Governance (ESG) Initiatives - The ESG report outlines the company's policies, strategies, governance direction, and performance in fulfilling environmental and social responsibilities for the fiscal year ending December 31, 2024[100] - The company is committed to sustainable development and has established a rigorous ESG governance framework to oversee related matters[108] - The company has implemented policies to reduce emissions and conserve energy, aiming to minimize environmental impact[124] - The company engages with stakeholders regularly to understand their expectations and prioritize ESG aspects in reporting[115] - The importance matrix indicates that environmental aspects such as greenhouse gas emissions and energy consumption are of high importance to the business[121] - The company has established strategic goals and indicators for ESG over the next three to five years to focus on achieving its ESG vision[114] - The company has identified and prioritized ESG projects based on their significance to the business through internal discussions among senior management[119] - The company emphasizes ethical and responsible business practices, urging employees to maintain integrity and accountability[108] Employee and Workforce Management - The group employed approximately 3,000 employees as of December 31, 2024, with a competitive compensation system in place[31] - The total number of employees in the China factory increased to 2,832 in 2024, up from 2,761 in 2023, representing a growth of approximately 2.6%[144] - The employee turnover rate rose to 16% in 2024, compared to 12% in 2023, indicating a significant increase in employee attrition[145] - In the reporting year, employees at the China factory received a total of 49,010 hours of training, an increase from 34,360 hours in 2023[150] - The average training hours per employee for 2024 is 17 hours (99% participation), up from 12 hours (99% participation) in 2023[151] - Female employees received an average of 21 hours of training in 2024, compared to 14 hours in 2023[151] - The company promotes diversity at all employee levels, ensuring equal training and career development opportunities[60] Community Engagement and Corporate Culture - The company emphasizes community investment and prioritizes hiring from local communities to alleviate unemployment pressures[164] - The company has established a corporate culture that emphasizes integrity and anti-corruption training for employees[162] - The company is committed to minimizing its operational impact on the environment and supports the sustainable use of natural resources[137] Shareholder Information - The company declared an interim dividend of HKD 0.05 per share, totaling HKD 31,584,000, and proposed a final dividend of HKD 0.06 per share and a special final dividend of HKD 0.12 per share, amounting to HKD 37,901,000 and HKD 75,802,000 respectively[169] - The company has a retained earnings reserve available for distribution to shareholders amounting to HKD 246,356,000 as of December 31, 2024[176] - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting within two months of their request[88] - The company will take appropriate actions upon receiving valid requests from shareholders for resolutions to be proposed at the general meeting[89]

Financial Performance - Revenue for the year ended December 31, 2024, increased to HKD 1,553,244,000, up from HKD 1,449,340,000 in 2023, representing a growth of approximately 7.2%[2] - The net loss for the year was HKD 13,673,000, significantly improved from a loss of HKD 72,431,000 in the previous year, indicating a reduction in losses by approximately 81.1%[2] - Total comprehensive expenses for the year amounted to HKD 62,487,000, down from HKD 118,457,000 in 2023, reflecting a decrease of about 47.3%[3] - Basic and diluted loss per share improved to HKD (2.16) from HKD (11.47), indicating a significant enhancement in per-share performance[3] - The company reported a loss attributable to shareholders of HKD 13,673,000 for 2024, compared to a loss of HKD 72,431,000 in 2023[24] - The loss attributable to the company's owners decreased by 81.1% to HKD 13,673,000, compared to HKD 72,431,000 in 2023[34] Revenue Breakdown - Revenue from the manufacturing and sales of molds and related products for the year ended December 31, 2024, was HKD 1,553,244,000, an increase of 7.2% from HKD 1,449,340,000 in 2023[17] - Revenue from China was HKD 1,365,141,000 in 2024, up 8.5% from HKD 1,258,229,000 in 2023[17] - Other income for 2024 totaled HKD 13,766,000, a decrease of 34% from HKD 20,846,000 in 2023[18] Assets and Liabilities - The company's total assets less current liabilities decreased to HKD 1,770,150,000 from HKD 1,899,680,000, a decline of approximately 6.8%[5] - Non-current assets, including investment properties, decreased to HKD 809,141,000 from HKD 956,539,000, a reduction of about 15.4%[5] - The company’s total equity decreased to HKD 1,673,543,000 from HKD 1,798,762,000, a decline of about 7.0%[7] - Trade receivables increased to HKD 99,319,000 in 2024 from HKD 94,977,000 in 2023[26] - Total trade, notes, and other receivables decreased to HKD 155,368,000 in 2024 from HKD 177,177,000 in 2023[26] - Trade payables rose to HKD 46,137,000 in 2024 from HKD 35,820,000 in 2023[28] Cash Flow and Expenses - The company's cash and cash equivalents increased to HKD 546,648,000 from HKD 428,758,000, representing a growth of approximately 27.5%[5] - The total inventory cost recognized as an expense during the year was HKD 1,330,513,000, slightly down from HKD 1,336,058,000 in 2023[25] - The company reported a decrease in employee benefit expenses to HKD 427,494,000 from HKD 411,454,000, an increase of approximately 3.9%[2] - The cost of materials and consumables used to generate revenue decreased by 5.3%, with the percentage of these costs relative to revenue dropping to 38.7% from 43.8% in 2023[34] Dividends and Grants - The company declared an interim dividend of HKD 0.05 per share for 2024, totaling HKD 31,584,000, consistent with the previous year[23] - The board has proposed a final dividend of HKD 0.06 per share and a special final dividend of HKD 0.12 per share for the year ending December 31, 2024, subject to shareholder approval[45] - The company received government grants of HKD 1,085,000 in 2024, down from HKD 4,429,000 in 2023[18] Strategic Focus and Market Outlook - The company plans to cautiously adjust marketing strategies to adapt to market changes and expand opportunities in China and other overseas markets[39] - The company aims to leverage its competitive advantages to secure high-value mold orders and adjust pricing to enhance sales revenue[32] - The group anticipates continued demand for high-end electronic technology products and high-performance environmentally friendly home appliances, driven by government initiatives to stimulate consumption and economic growth[40] - The group expects sustained growth in the environmentally friendly electric vehicle sector, which will accelerate the development of its automotive business[40] - The group will focus on research and development of plastic and die-casting production technologies to enhance overall processing capabilities and product quality[40] - The group aims to reduce costs and increase efficiency to mitigate operational risks and strengthen its competitive advantage[40] - The group is committed to exploring existing and potential market opportunities to maintain its industry leadership[40] - The group will continue to innovate and adapt to the changing business environment as it approaches its 50th anniversary in 2025[40] Corporate Governance - The group acknowledges the support of all employees, shareholders, and business partners in its ongoing efforts[41] - The group has adhered to all corporate governance codes as stipulated by the Hong Kong Stock Exchange for the year ending December 31, 2024[49] - There were no purchases, sales, or redemptions of the company's shares or other securities by the company or its subsidiaries for the year ending December 31, 2024[48]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 785,212,000, representing an increase of 10.7% compared to HKD 708,923,000 for the same period in 2023[5] - The company reported a loss before tax of HKD 27,757,000, an improvement from a loss of HKD 51,552,000 in the previous year, indicating a reduction in losses by 46.1%[5] - The net loss for the period was HKD 23,915,000, compared to a net loss of HKD 31,506,000 in the prior year, reflecting a decrease in net losses by 24.2%[5] - Total comprehensive loss for the period was HKD 63,300,000, down from HKD 101,331,000 in the previous year, marking a reduction of 37.6%[5] - Basic loss per share improved to HKD 3.79 from HKD 4.99, showing a 24.1% decrease in loss per share[5] - Total expenses for the six months ended June 30, 2024, amounted to HKD 196,977,000, an increase of 13.3% from HKD 173,838,000 in the same period of 2023[20] - The group reported a loss of HKD 685,156,000 for the six months ended June 30, 2024, compared to a loss of HKD 644,168,000 in the same period of 2023[23] Assets and Liabilities - Non-current assets decreased to HKD 865,794,000 as of June 30, 2024, from HKD 956,539,000 at the end of 2023, a decline of 9.5%[6] - Current assets totaled HKD 1,132,047,000, slightly down from HKD 1,136,446,000 at the end of 2023, indicating a decrease of 0.4%[6] - The company's total equity decreased to HKD 1,703,878,000 from HKD 1,798,762,000, reflecting a decline of 5.3%[7] - The group’s total liabilities increased, reflecting a need for further analysis on financial health and liquidity[20] Cash Flow - Operating cash flow before changes in working capital for the six months ended June 30, 2024, was HKD 54,332,000, compared to HKD 30,911,000 in 2023, indicating a significant improvement[10] - Net cash generated from operating activities for the six months ended June 30, 2024, was HKD 93,119,000, compared to a cash outflow of HKD 4,194,000 in the same period of 2023[10] - The company reported a net increase in cash and cash equivalents of HKD 52,150,000 for the six months ended June 30, 2024, compared to a decrease of HKD 105,635,000 in 2023[10] - The cash and cash equivalents increased to HKD 470,541,000 from HKD 428,758,000, representing a growth of 9.7%[6] Market and Revenue Growth - Revenue from China increased to HKD 694,610,000 in the first half of 2024, up from HKD 611,445,000 in the same period of 2023, reflecting a growth of about 13.6%[18] - The company plans to continue expanding its market presence, particularly in China, where it has seen significant revenue growth[18] - The company has no single customer contributing more than 10% of total revenue, indicating a diversified customer base[18] Dividends and Shareholder Information - The interim dividend declared is HKD 0.05 per share, totaling HKD 31,584,000, consistent with the previous year's interim dividend[23] - As of June 30, 2024, the total equity held by key directors amounts to 407,372,381 shares, representing 64.49% of the company[40] - The company has a total of 2,430,000 employee stock options available, with no options granted during the reporting period[46] - Pan Island Investments Limited holds 366,210,937 shares, representing 57.97% of the company's issued share capital[48] - HSBC International Trustee Limited holds 366,514,990 shares, representing 58.02% of the company's issued share capital[48] - David Michael Webb owns 37,938,498 shares, accounting for 6.00% of the company's issued share capital[48] Operational Insights - The company has maintained its accounting policies consistent with the previous year, ensuring stability in financial reporting[13] - Employee benefits expenses increased by 5.5% during the reporting period[34] - The group employed approximately 3,000 employees as of June 30, 2024, with a competitive remuneration policy in place[36] Future Outlook - The company anticipates a cautious evaluation of the market environment and demand due to uncertainties in the global business landscape and political situation[37] - The group expects to actively explore emerging trade markets, such as ASEAN member countries, to increase trade partnerships and reduce market risks[37] - The Chinese government is expected to implement measures to boost consumption and investment, which may accelerate the recovery of the domestic market[37] - The company plans to focus on research and development to enhance overall processing capabilities and product quality, while also monitoring and reducing operational costs[37] - The company will continue to adjust marketing strategies to explore other emerging overseas markets for stable development and income[37] - The group is confident in its ability to navigate the changing business environment and achieve stable and healthy business development[37] Other Financial Information - Other income for the six months ended June 30, 2024, totaled HKD 6,980,000, slightly down from HKD 7,453,000 in the same period of 2023[19] - The company experienced a net foreign exchange loss of HKD 1,705,000 for the six months ended June 30, 2024, compared to a loss of HKD 3,872,000 in 2023, indicating an improvement in currency management[19] - The fair value of investment properties decreased by HKD 5,100,000 during the period, compared to a decrease of HKD 1,500,000 in the same period of 2023[25] - The group incurred a deferred tax credit of HKD 4,840,000 for the six months ended June 30, 2024, down from HKD 18,310,000 in the same period of 2023[21] - The group’s cash proceeds from the sale of certain properties, plant, and equipment amounted to HKD 1,166,000, compared to HKD 1,958,000 in the same period of 2023[25] - The group reported a decrease in the fair value of investment properties by HKD 3,600,000 compared to the same period last year[34] - No purchases, sales, or redemptions of the company's shares or other securities occurred during the six months ending June 30, 2024[50] - The company has complied with all provisions of the Corporate Governance Code during the review period[50]

Revenue Performance - Revenue for the six months ended June 30, 2024, was HKD 785,212, compared to HKD 708,923 for the same period in 2023, representing an increase of approximately 10.8%[1] - The group's total revenue for the six months ended June 30, 2024, was HKD 785,212,000, compared to HKD 708,923,000 for the same period in 2023[12] - The cost of goods sold for the six months ended June 30, 2024, was HKD 685,156,000, compared to HKD 644,168,000 for the same period in 2023[15] - Other income, including interest income, was HKD 6,980,000 for the six months ended June 30, 2024, down from HKD 7,453,000 in 2023[13] Loss and Expenses - The pre-tax loss for the six months ended June 30, 2024, was HKD 27,757, an improvement from a loss of HKD 51,552 in the same period of 2023[2] - The net loss for the period was HKD 23,915, compared to a net loss of HKD 31,506 in the previous year, indicating a reduction in losses of approximately 24.5%[2] - Total comprehensive expenses for the period amounted to HKD 63,300, down from HKD 101,331 in the previous year, reflecting a decrease of approximately 37.6%[2] - The loss attributable to the company's owners for the same period was HKD 23,915,000, a decrease of 24.1% from HKD 31,506,000 in 2023[23] Assets and Liabilities - The group's total assets decreased to HKD 1,799,438 as of June 30, 2024, from HKD 1,899,680 as of December 31, 2023, a decline of about 5.3%[3] - Non-current assets, including investment properties, decreased to HKD 865,794 from HKD 956,539, a reduction of approximately 9.5%[3] - Inventory as of June 30, 2024, was HKD 480,295, down from HKD 530,511 at the end of 2023, representing a decrease of about 9.5%[3] - Trade payables as of June 30, 2024, were HKD 35,755,000, slightly down from HKD 35,820,000 as of December 31, 2023[21] Shareholder Information - The basic loss per share for the period was HKD 3.79, compared to HKD 4.99 in the same period last year, indicating an improvement in per-share loss[2] - The group declared an interim dividend of HKD 0.05 per share, totaling HKD 31,584,000, consistent with the previous year[16] - The board declared an interim dividend of HKD 0.05 per share for the six months ended June 30, 2024, unchanged from the previous year[28] Cash Flow - The company's cash and cash equivalents increased to HKD 470,541 from HKD 428,758, an increase of approximately 9.7%[3] - Cash and bank balances increased to HKD 470,541,000 as of June 30, 2024, compared to HKD 428,758,000 as of December 31, 2023[24] Market and Strategic Focus - The group plans to explore emerging trade markets such as ASEAN countries to mitigate market risks and enhance trade partnerships[26] - The company will focus on research and development to improve overall processing capabilities and product quality, while also implementing automated production lines to enhance efficiency[26] - The geopolitical tensions and trade protectionism are expected to pose challenges to global economic recovery, impacting the group's export business[26] Accounting and Reporting - The company has maintained its accounting policies consistent with those applied in the previous financial year, ensuring stability in financial reporting[6] - Revenue from the manufacturing and sales of molds and related products is recognized upon delivery to customers, with a credit period ranging from 30 to 90 days[10] - The group’s tax rate for eligible entities in Hong Kong is 8.25% on the first HKD 2 million of profits, and 16.5% on profits exceeding that threshold[15] Trade Receivables - As of June 30, 2024, trade receivables amounted to HKD 104,364,000, an increase from HKD 85,387,000 as of December 31, 2023[18]

Financial Performance - The company reported a significant increase in revenue for the fiscal year ending December 31, 2023, with total revenue reaching $1.2 billion, representing a 15% year-over-year growth[3]. - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 12%, with expected total revenue between $1.32 billion and $1.344 billion[3]. - The company reported a net profit margin of 12%, reflecting improved operational efficiency and cost management strategies[3]. - The company reported a comprehensive financial statement for the year ending December 31, 2023, reflecting its accounting policies and significant financial data[42]. User Growth and Market Expansion - User data showed a 20% increase in active users, bringing the total to 5 million users by the end of the fiscal year[3]. - The company is expanding its market presence in Asia, targeting a 30% increase in market share within the next two years[3]. Product Development and Sales - New product launches contributed to a 25% increase in sales in the last quarter, with the introduction of two major products[3]. - Research and development expenses increased by 18%, totaling $150 million, focusing on innovative technologies and product enhancements[3]. - The company completed a strategic acquisition of a tech startup for $200 million, aimed at enhancing its product offerings and technological capabilities[3]. Sustainability and Corporate Responsibility - The board emphasized the importance of sustainability initiatives, with a commitment to reduce carbon emissions by 40% by 2025[3]. - The company plans to implement a new customer loyalty program, expected to increase customer retention rates by 15% over the next year[3]. Governance and Board Composition - The company’s board nomination policy outlines the criteria and procedures for selecting and recommending director candidates[62]. - The board consists of 10 members, with 1 female member, representing 10% of the board and 25% of independent non-executive directors[80]. - The board aims to maintain the current level of female representation and will gradually increase the proportion of female directors through the selection and recommendation of qualified candidates[80]. - As of December 31, 2023, the board consists of 60% independent non-executive directors and 40% executive directors[114]. - The company emphasizes the importance of board diversity for enhancing overall performance quality[110]. - The company has implemented measures to promote diversity among all employees, with male employees making up 86% and female employees 14% of the workforce[121]. Audit and Internal Controls - The Audit Committee consists of four independent non-executive directors, with Mr. Wang Keqin serving as the chairman[133]. - The audit committee held four meetings during the fiscal year ending December 31, 2023, to review quarterly performance and internal audit results[173]. - The company’s financial reporting procedures and internal controls are audited and supervised by the Audit Committee[136]. - The company’s governance report includes a review of risk management and internal control systems, ensuring effectiveness against potential risks[183]. Remuneration and Compensation - The remuneration committee reviewed the compensation policies and structures for directors and senior management, considering the company's performance and market data[126]. - The remuneration committee held four meetings during the fiscal year ending December 31, 2023, with full attendance from all members[122]. - The company confirmed that there are no other disclosures regarding the remuneration of senior management, as the remuneration of directors has been disclosed individually[132]. Financial Assets and Liabilities - The company’s deferred tax liabilities and assets are measured based on expected tax results from the recovery or settlement of its assets and liabilities at the end of the reporting period[146]. - The company recognizes deferred tax assets only when it is probable that sufficient taxable profits will be available to utilize the temporary differences[145]. - The company’s retirement benefit costs are recognized as expenses when employees provide services that entitle them to contributions[158]. - The company confirms that liabilities for employee benefits are measured at the present value of expected future cash outflows[160]. Miscellaneous - The company has not entered into any management contracts for significant portions of its business during the year[54]. - There were no purchases, sales, or redemptions of the company's listed securities during the year[57]. - The company has maintained appropriate directors' liability insurance for its directors throughout the year[53]. - The company has not established any stock-linked agreements during the year[55]. - The company has not disclosed any significant interests held by directors in major transactions or contracts during the fiscal year[170]. - The company has not been informed of any other individuals holding significant interests in its shares, aside from its directors and key executives[165]. - The company has not established any arrangements that would allow directors to benefit from purchasing shares or bonds of the company or any other entity during the year[169]. - The audit committee recommended the reappointment of Deloitte as the external auditor for the fiscal year 2024[194]. - Mr. Li Yuhai has been an independent non-executive director since September 2004[200]. - He is the chairman of the nomination committee and a member of various accounting and director associations[200]. - Mr. Li has extensive experience in accounting and auditing fields[200]. - He is currently an independent director of Hyflux Ltd. and IPC Corporation Limited, both listed on the Singapore Exchange[200]. - Mr. Li served as a director of PGG Wrightson Limited until October 24, 2023, when he resigned[200]. - He has not held any directorships in public companies listed on Hong Kong or overseas securities markets in the past three years[200].

Financial Performance - The group's revenue for the year ended December 31, 2023, was HKD 1,449,340, a decrease of 9.5% compared to HKD 1,601,433 in 2022[9] - The group reported a loss before tax of HKD 112,614, compared to a profit of HKD 21,670 in the previous year[9] - The net loss for the year was HKD 72,431, compared to a profit of HKD 15,814 in 2022[9] - Total revenue for the year ended December 31, 2023, was 20,846,000 HKD, a decrease from 23,204,000 HKD in 2022, reflecting a decline of approximately 10.2%[22] - Interest income decreased to 8,370,000 HKD in 2023 from 12,300,000 HKD in 2022, representing a decline of about 32.4%[22] - The company reported a net loss for the year due to reduced sales orders and increased operational costs, leading to a significant drop in profitability[35] - The company reported a loss attributable to owners of HKD 72,431,000 for 2023, compared to a profit of HKD 15,814,000 in 2022[60] - Basic loss per share for 2023 was HKD 0.1147, down from earnings of HKD 0.0250 per share in 2022[60] - The company recorded a loss of HKD 72,431,000 for the year ended December 31, 2023, compared to a profit of HKD 15,814,000 in 2022[84] Assets and Liabilities - Non-current assets decreased from HKD 1,007,409 in 2022 to HKD 956,539 in 2023[11] - Current assets decreased from HKD 1,294,068 in 2022 to HKD 1,136,446 in 2023[11] - The group’s inventory decreased from HKD 606,924 in 2022 to HKD 530,511 in 2023[11] - Trade and other receivables increased from HKD 150,501 in 2022 to HKD 177,177 in 2023[11] - The net asset value decreased to 1,798,762,000 HKD in 2023 from 1,986,581,000 HKD in 2022, a decline of about 9.4%[38] - The total liabilities decreased from 229,109,000 HKD in 2022 to 214,624,000 HKD in 2023, a reduction of approximately 6.3%[32] Dividends - The board declared a final dividend of 0.05 HKD per share for 2023, down from 0.06 HKD per share in 2022, totaling 31,584,000 HKD compared to 37,901,000 HKD in the previous year[28] - The company declared an interim dividend of HKD 0.05 per share for 2023, down from HKD 0.06 per share in 2022[54] - The proposed final dividend for the year ended December 31, 2023, is HKD 0.05 per share, down from HKD 0.06 per share in 2022[90] Government Support - The company recognized government subsidies related to COVID-19 support amounting to 3,188,000 HKD in 2022, with no such subsidies reported for 2023[22] - The company recognized government grants of HKD 4,429,000 in 2023, compared to HKD 352,000 in 2022[49] Market Outlook - The company anticipates continued challenges in the market due to weak consumer confidence and geopolitical tensions affecting global economic recovery[35] - The company anticipates a slow recovery in the domestic market due to external economic pressures and changing post-pandemic consumer behaviors[61] - The company anticipates a significant decline in export orders to Europe and the US due to ongoing trade tensions and economic slowdowns[87] Operational Strategy - The company plans to optimize its production structure and continue developing high-quality, high-tech production capabilities[68] - The company aims to control raw material and operating cost fluctuations to reduce operational risks and increase product profitability[88] - The company plans to strengthen its sales team and management to further expand into the domestic market and other overseas markets[87] Employee Information - The company employed approximately 2,900 employees as of December 31, 2023, with a competitive compensation system in place[86] Financial Reporting Standards - The group has not early adopted any new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[7]

Financial Performance - For the six months ended June 30, 2023, the group's revenue from manufacturing and sales of modular frames and related products was HKD 611,445,000, a decrease of 22.4% compared to HKD 787,688,000 in the same period of 2022[25]. - The group reported a loss of HKD 31,506,000 for the period, reflecting a significant downturn compared to previous earnings[15]. - Revenue for the six months ended June 30, 2023, was HKD 708,923,000, a decrease of 21.9% compared to HKD 907,552,000 for the same period in 2022[69]. - The total comprehensive loss for the period was HKD 101,331,000, compared to a loss of HKD 40,453,000 in the previous year[69]. - Basic loss per share for the period was HKD (4.99), compared to earnings of HKD 6.49 per share in the same period last year[69]. - The company recorded a loss of HKD 31,506,000 for the six months ended June 30, 2023, compared to a profit of HKD 40,988,000 in the same period last year, representing a significant decline in performance[94]. - Revenue decreased by 21.9% year-on-year due to a substantial reduction in total orders within the market, reflecting the challenging operating environment[117]. Assets and Liabilities - The net asset value as of June 30, 2023, was HKD 976,017,000, down from HKD 1,096,362,000 as of December 31, 2022, representing a decline of 11%[14]. - The total equity as of June 30, 2023, was HKD 1,847,349,000, compared to HKD 1,986,581,000 at the end of 2022, indicating a decrease of 7%[14]. - The group’s total liabilities decreased from HKD 117,190,000 to HKD 103,937,000, a reduction of 11.2%[14]. - As of June 30, 2023, total non-current assets amounted to HKD 975,269,000, a decrease of 3.2% from HKD 1,007,409,000 as of December 31, 2022[35]. - Current assets totaled HKD 1,160,799,000, down 10.3% from HKD 1,294,068,000 in the previous year[35]. - The company's cash and bank balances decreased to HKD 417,040,000, a decline of 22.3% compared to HKD 536,643,000 as of December 31, 2022[35]. Cash Flow and Management - The group’s cash flow statement for the six months ended June 30, 2023, indicates a need for improved cash management strategies[16]. - Operating cash flow before changes in working capital was HKD 30,911,000, a decrease from HKD 111,716,000 in the prior year[70]. - Cash and cash equivalents at the end of the period were HKD 417,040,000, down from HKD 603,565,000 at the end of the previous year[70]. Market Strategy and Future Outlook - The company plans to focus on market expansion and new product development to recover from the current downturn[34]. - Future guidance indicates a cautious outlook, with expectations of gradual recovery in revenue as market conditions improve[34]. - The company plans to cautiously assess market conditions and demand in response to ongoing global economic uncertainties and high inflation risks[97]. - The group anticipates that the performance in the second half of the year will not be worse than the first half, driven by a recovery in consumer confidence and economic activity in China[144]. - The group plans to actively expand into the Chinese market and other overseas markets to stabilize development and income[144]. Shareholder Information - Major shareholders include Pan Island Investments Limited holding 366,210,937 shares, representing 57.97% of the issued share capital[183]. - HSBC International Trustee Limited, as a trustee, controls 366,514,990 shares, accounting for 58.02% of the issued share capital[183]. - The beneficial owners, Shao Tielong and Shao Yulong, each hold 41,161,444 shares, contributing to a total equity of 407,372,381 shares, which is 64.49%[174]. - The total equity held by Shao Xutong and Shao Yuheng includes significant family interests, indicating a strong family influence in the company's ownership structure[174]. Corporate Governance - The company has complied with all provisions of the Corporate Governance Code as per the Listing Rules during the review period[184]. - The company has not reported any changes in shareholdings by directors or key executives outside of the disclosed information[178].

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) The company announced its unaudited consolidated financial results for H1 2023, detailing a significant revenue decline and a shift from profit to loss [Company Information](index=1&type=section&id=Company%20Information) Lung Kee (Bermuda) Holdings Limited announced its unaudited consolidated financial results for the six months ended June 30, 2023 - Company name: Lung Kee (Bermuda) Holdings Limited, stock code: **255**[14](index=14&type=chunk) - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement[1](index=1&type=chunk) [Financial Performance Summary](index=10&type=section&id=Financial%20Performance%20Summary) For the six months ended June 30, 2023, the Group's revenue decreased by **21.9%** year-on-year, turning from profit to a loss of **HK$31,506,000**, with basic loss per share of **4.99 HK cents** Summary of Key Financial Data for the Six Months Ended June 30, 2023 | Indicator | June 30, 2023 (HK$ Thousand) | June 30, 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 708,923 | 907,552 | | (Loss) Profit Attributable to Owners of the Company | (31,506) | 40,988 | | Basic (Loss) Earnings Per Share | (4.99) HK Cents | 6.49 HK Cents | [Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated statements of profit or loss, comprehensive income, and financial position [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2023, the Group's revenue was **HK$708,923 thousand**, a decrease from the prior period, resulting in a loss for the period of **HK$31,506 thousand** and total comprehensive expense of **HK$101,331 thousand** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 708,923 | 907,552 | | Other income, gains and losses | 5,411 | 2,525 | | (Decrease) Increase in fair value of investment properties | (1,500) | 2,000 | | Net impairment loss recognised (reversed) under expected credit loss model | (244) | 2,181 | | Changes in inventories of finished goods and work in progress | 5,000 | 7,468 | | Raw materials and consumables used | (306,019) | (359,766) | | Employee benefit expenses | (204,317) | (238,020) | | Depreciation of right-of-use assets | (3,018) | (2,985) | | Depreciation of property, plant and equipment | (81,720) | (75,359) | | Other expenses | (173,838) | (191,527) | | Interest expense on lease liabilities | (230) | (168) | | (Loss) Profit before tax | (51,552) | 53,901 | | Income tax credit (expense) | 20,046 | (12,913) | | (Loss) Profit for the period | (31,506) | 40,988 | | Exchange differences arising on translation of overseas operations | (69,825) | (81,441) | | Total comprehensive expense for the period | (101,331) | (40,453) | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the Group's total assets less current liabilities were **HK$1,951,286 thousand**, and net assets were **HK$1,847,349 thousand**, a decrease from December 31, 2022 Condensed Consolidated Statement of Financial Position (As at June 30, 2023) | Indicator | June 30, 2023 (HK$ Thousand) | December 31, 2022 (HK$ Thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Investment properties | 173,500 | 175,000 | | Property, plant and equipment | 664,151 | 667,715 | | Right-of-use assets | 67,965 | 73,603 | | Deposits paid for acquisition of property, plant and equipment | 43,586 | 78,583 | | Deferred tax assets | 26,067 | 12,508 | | **Current assets** | | | | Inventories | 594,579 | 606,924 | | Trade, bills and other receivables | 149,180 | 150,501 | | Bank balances and cash | 417,040 | 536,643 | | **Current liabilities** | | | | Trade, bills and other payables | 120,324 | 135,808 | | Contract liabilities | 25,977 | 21,765 | | Lease liabilities | 3,615 | 3,574 | | Tax payable | 34,526 | 36,264 | | Dividends payable | 340 | 295 | | **Non-current liabilities** | | | | Deferred tax liabilities | 13,721 | 17,903 | | Lease liabilities | 4,038 | 5,986 | | Other payables | 86,178 | 93,301 | | **Total equity** | 1,847,349 | 1,986,581 | [Notes to the Condensed Consolidated Financial Statements](index=4&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides notes on the basis of presentation, accounting policies, and specific items in the financial statements [Basis of Presentation and Principal Accounting Policies](index=4&type=section&id=Basis%20of%20Presentation%20and%20Principal%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and Appendix 16 of the Listing Rules, using the historical cost basis except for investment properties, with accounting policies consistent with the prior year, save for amendments to HKFRS - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 Interim Financial Reporting issued by the HKICPA and the applicable disclosure requirements of Appendix 16 to the Listing Rules of The Stock Exchange of Hong Kong Limited[10](index=10&type=chunk) - The condensed consolidated financial statements are prepared on the historical cost basis, except for investment properties which are stated at fair value[10](index=10&type=chunk) - The accounting policies and methods of computation used are the same as those followed in the preparation of the annual financial statements for the year ended December 31, 2022, except for changes in accounting policies due to amendments to HKFRS[16](index=16&type=chunk) [Application of Amendments to Hong Kong Financial Reporting Standards](index=4&type=section&id=Application%20of%20Amendments%20to%20Hong%20Kong%20Financial%20Reporting%20Standards) This interim period saw the first-time application of certain new and amended HKFRSs issued by the HKICPA, including HKFRS 17 and amendments to HKAS 8 and 12, which had no significant impact on the Group's financial statements, except for clarifying the definition of accounting estimates - During the current interim period, the Group has applied HKFRS 17, and the amendments to HKAS 8 (Definition of Accounting Estimates) and HKAS 12 (Deferred Tax related to Assets and Liabilities arising from a Single Transaction) for the first time[17](index=17&type=chunk)[18](index=18&type=chunk) - The application of these amendments has had no material impact on the Group's condensed consolidated financial statements, except for the amendment to HKAS 8 which clarifies the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors[13](index=13&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [Revenue and Segment Information](index=5&type=section&id=Revenue%20and%20Segment%20Information) The Group primarily manufactures and sells mould bases and related products, recognizing revenue when control of goods transfers to customers, operating as a single segment with consolidated results including all income, expenses, and tax - The Group is principally engaged in the manufacture and sale of mould bases and related products, with revenue representing the invoiced value of goods sold to external customers during the period, net of returns and trade discounts provision[13](index=13&type=chunk) - Revenue is recognised when control over the goods has been transferred to the customers, which is at the point in time when the goods are delivered to the customers[35](index=35&type=chunk) - The Group has only one operating segment, which is determined based on information reported to the chief operating decision maker for the purposes of resource allocation and performance assessment[21](index=21&type=chunk) Revenue by Geographical Location (For the six months ended June 30) | Geographical Location | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Asia | 611,445 | 787,688 | | Others | 97,478 | 119,864 | | **Total Revenue** | **708,923** | **907,552** | [Other Income, Gains and Losses](index=6&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) For the six months ended June 30, 2023, the Group's other income totaled **HK$7,453 thousand**, primarily from interest and rental income, but net exchange losses resulted in negative other gains and losses Other Income, Gains and Losses (For the six months ended June 30) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | **Other income** | | | | Interest income | 4,174 | 7,479 | | Rental income | 2,824 | 2,708 | | Government grants | 0 | 236 | | Miscellaneous income | 455 | 2,090 | | **Other gains and losses** | | | | Gain on disposal of property, plant and equipment | 1,830 | 4,606 | | Net exchange losses | (3,872) | (14,594) | | **Total** | **5,411** | **2,525** | [Income Tax](index=7&type=section&id=Income%20Tax) Hong Kong profits tax operates under a two-tiered system, with the first **HK$2 million** of assessable profits taxed at **8.25%** and the remainder at **16.5%**, while Chinese subsidiaries face a **25%** tax rate, with a **5%** dividend withholding tax under tax treaties - Hong Kong profits tax is calculated under a two-tiered profits tax regime, where the first **HK$2 million** of assessable profits is taxed at **8.25%** and the remaining assessable profits are taxed at **16.5%**[25](index=25&type=chunk)[40](index=40&type=chunk) - The tax rate for the Group's subsidiaries in Mainland China is **25%**, but the applicable withholding tax rate for the Group under the tax treaty between Hong Kong and Mainland China is **5%**[26](index=26&type=chunk)[41](index=41&type=chunk) Components of Income Tax (Expense) Credit (For the six months ended June 30) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong tax | (631) | (1,088) | | Tax outside Hong Kong | 2,367 | (11,115) | | Deferred tax | 18,310 | (710) | | **Total income tax credit (expense)** | **20,046** | **(12,913)** | [Loss (Profit) for the Period](index=7&type=section&id=Loss%20%28Profit%29%20for%20the%20Period) The loss for the period was **HK$31,506 thousand**, primarily influenced by factors such as inventory costs, inventory provisions, and depreciation Items Deducted from (Credited to) Loss (Profit) for the Period (For the six months ended June 30) | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Cost of inventories recognised as an expense | 644,168 | 723,741 | | Provision for (utilisation of) inventories recognised | 2,243 | (4,428) | [Dividends](index=8&type=section&id=Dividends) The Board resolved to declare an interim dividend of **5 HK cents** per share, totaling **HK$31,584 thousand**, in addition to the final dividend of **6 HK cents** per share for 2022 already declared and paid - The Board resolved to declare an interim dividend of **5 HK cents** per share (2022: 6 HK cents) for the six months ended June 30, 2023, totaling **HK$31,584,000**[29](index=29&type=chunk) - During the period, a final dividend of **6 HK cents** per share (for the six months ended June 30, 2022: 20 HK cents) for the year ended December 31, 2022, totaling **HK$37,901,000**, was declared and paid to shareholders[62](index=62&type=chunk) [Loss (Earnings) Per Share](index=8&type=section&id=Loss%20%28Earnings%29%20Per%20Share) For the six months ended June 30, 2023, basic loss per share was **4.99 HK cents**, compared to basic earnings per share of **6.49 HK cents** in the prior period, with no diluted earnings per share presented due to the absence of potential ordinary shares Basic (Loss) Earnings Per Share (For the six months ended June 30) | Indicator | 2023 | 2022 | | :--- | :--- | :--- | | Basic (Loss) Earnings Per Share | (4.99) HK Cents | 6.49 HK Cents | | (Loss) Profit Attributable to Owners of the Company | (31,506,000) HK$ | 40,988,000 HK$ | | Number of ordinary shares in issue | 631,677,303 Shares | 631,677,303 Shares | - No diluted (loss) earnings per share for both periods are presented as there were no potential ordinary shares outstanding during the period or at the end of the reporting period[63](index=63&type=chunk) [Trade, Bills and Other Receivables](index=9&type=section&id=Trade%2C%20Bills%20and%20Other%20Receivables) As of June 30, 2023, trade receivables amounted to **HK$80,110 thousand** and bills receivable to **HK$12,217 thousand**, with credit terms for trade customers ranging from **30 to 90 days** - Trade, bills and other receivables include trade receivables of **HK$80,110,000** (net of allowance for credit losses) and bills receivable of **HK$12,217,000**[45](index=45&type=chunk) - The Group grants credit terms to trade customers ranging from **30 to 90 days**[64](index=64&type=chunk) Ageing Analysis of Trade and Bills Receivables (As at the end of the reporting period) | Ageing | June 30, 2023 (HK$ Thousand) | December 31, 2022 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 60 days | 78,348 | 86,508 | | 61 to 90 days | 16,253 | 12,187 | | Over 90 days | 6,531 | 6,248 | | **Total** | **101,132** | **104,943** | [Trade, Bills and Other Payables](index=9&type=section&id=Trade%2C%20Bills%20and%20Other%20Payables) As of June 30, 2023, trade payables were **HK$34,448 thousand** with no bills payable, and credit terms for purchases ranged from **30 to 150 days** - Trade, bills and other payables include trade payables of **HK$34,448,000** and no bills payable[46](index=46&type=chunk) - In general, the credit terms for purchases of goods range from **30 to 150 days**[47](index=47&type=chunk) Ageing Analysis of Trade and Bills Payables (As at the end of the reporting period) | Ageing | June 30, 2023 (HK$ Thousand) | December 31, 2022 (HK$ Thousand) | | :--- | :--- | :--- | | 0 to 60 days | 27,952 | 23,494 | | 61 to 90 days | 4,547 | 4,334 | | Over 90 days | 1,949 | 3,554 | | **Total** | **34,448** | **31,382** | [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) This section discusses the Group's business and financial performance, liquidity, human resources, and future outlook [Business Review](index=10&type=section&id=Business%20Review) During the review period, the global economy and business environment faced significant challenges, including COVID-19 impacts, US-China trade disputes, interest rate hikes, and geopolitical tensions, leading to a substantial decrease in total orders, declining sales revenue, and a shift from profit to loss - Factors such as global economic slowdown, US-China trade disputes, interest rate hikes in major economies, and geopolitical tensions negatively impacted the Group's operating environment[48](index=48&type=chunk)[49](index=49&type=chunk) - A significant reduction in total orders led to underutilized processing volume and capacity, a substantial decline in sales revenue, and, coupled with relatively fixed operating costs, resulted in the Group's first-half performance turning from profit to loss[48](index=48&type=chunk)[49](index=49&type=chunk) - The recovery of the domestic sales market in China has been slow, with consumer sentiment and confidence still needing restoration, leading to weak demand for consumer goods[69](index=69&type=chunk) - Raw material prices for mould steel remained relatively stable, with narrowing short-term fluctuations[70](index=70&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) For the six months ended June 30, 2023, the Group's revenue decreased by **21.9%** year-on-year, raw materials and consumables cost as a percentage of revenue increased, employee benefits and other expenses decreased, but depreciation of property, plant and equipment increased, resulting in a loss of **HK$31,506 thousand** - Revenue decreased by **21.9%** compared to the same period last year, primarily due to a significant reduction in total market orders caused by a challenging operating environment[51](index=51&type=chunk) - Cost of raw materials and consumables used decreased by 14.6%, but its percentage of revenue increased to **42.5%** (2022: **38.8%**)[51](index=51&type=chunk) - Employee benefit expenses and other expenses decreased by **14.2%** and **9.2%** respectively, while depreciation of property, plant and equipment increased by **8.4%**[51](index=51&type=chunk) - The change in fair value of investment properties decreased by **HK$3,500,000** compared to the same period last year, while other income increased by **HK$2,886,000**[72](index=72&type=chunk) - For the six months ended June 30, 2023, the net impairment loss recognised under the expected credit loss model was **HK$244,000** (2022: net impairment loss reversed of **HK$2,181,000**)[72](index=72&type=chunk) - Income tax credit of **HK$20,046,000** (2022: income tax expense of **HK$12,913,000**), including a tax refund of **HK$3,646,000** for over-provision in prior years[72](index=72&type=chunk) [Liquidity and Financial Resources](index=11&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2023, the Group's total equity was **HK$1,847,349 thousand**, with bank balances and cash of **HK$417,040 thousand** and no borrowings, indicating ample cash to meet operational and capital commitments Liquidity Position (As at period end) | Indicator | June 30, 2023 (HK$ Thousand) | December 31, 2022 (HK$ Thousand) | | :--- | :--- | :--- | | Total equity | 1,847,349 | 1,986,581 | | Bank balances and cash | 417,040 | 536,643 | | Borrowings | Nil | Nil | - Bank balances and cash are placed as short-term deposits with major banks in Hong Kong and China[73](index=73&type=chunk) - The COVID-19 pandemic did not affect the Group's financial position[53](index=53&type=chunk) [Employees and Remuneration Policy](index=11&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2023, the Group employed approximately **2,900** staff, implementing a competitive remuneration system where promotions and salary increments are performance-based, with share options also granted - As of June 30, 2023, the Group employed approximately **2,900** staff[54](index=54&type=chunk) - The Group maintains a competitive remuneration system for its employees, with promotions and salary increments based on performance evaluations, and share options granted according to individual performance[54](index=54&type=chunk) [Outlook](index=12&type=section&id=Outlook) The Group anticipates that second-half performance will not be worse than the first half, with consumer spending and market orders expected to recover due to China's economic normalization and government stimulus measures, while actively expanding markets, optimizing operations with automation, and managing costs - The Group expects that the second-half performance will not be worse than the first half, as China's economic activities normalize, consumer confidence and spending power will gradually improve, and the Chinese economy will recover positively[55](index=55&type=chunk) - The Chinese government is expected to introduce macro-economic stimulus measures, which are anticipated to boost consumption and strengthen the development of the domestic sales market[55](index=55&type=chunk) - The Group expects demand for consumer goods such as environmentally friendly new energy vehicles, high-end electronic technology products, and smart home appliances to gradually recover, leading to an increase in market order volume[55](index=55&type=chunk) - The Group will actively expand into the Chinese market and other overseas markets to achieve stable development and revenue[55](index=55&type=chunk) - The Group will continue to optimize and strengthen its internal operating structure, adopting automated production lines to enhance overall processing capabilities, production speed, and product quality, while striving to control cost fluctuations[77](index=77&type=chunk) - Despite the uncertain business outlook, the Group will strive for stable and healthy business growth and maintain its competitive advantages amidst adversity[56](index=56&type=chunk)[76](index=76&type=chunk) [Other Information](index=13&type=section&id=Other%20Information) This section covers the review of interim financial statements, dividend, share transfer, securities, corporate governance, and board composition [Review of Interim Financial Statements](index=13&type=section&id=Review%20of%20Interim%20Financial%20Statements) The Audit Committee, in conjunction with management and external auditor Deloitte Touche Tohmatsu, reviewed the Group's accounting principles and practices, discussing internal controls and financial reporting matters - The Audit Committee, together with management and the external auditor, Deloitte Touche Tohmatsu, has reviewed the accounting principles and practices adopted by the Group and discussed internal control and financial reporting matters[79](index=79&type=chunk) [Interim Dividend](index=13&type=section&id=Interim%20Dividend) The Board has resolved to declare an interim dividend of **5 HK cents** per share for the six months ended June 30, 2023, payable on or about September 25, 2023 - The Board has resolved to declare an interim dividend of **5 HK cents** per share (2022: 6 HK cents) for the six months ended June 30, 2023[80](index=80&type=chunk) - The interim dividend will be paid on or about September 25, 2023, to shareholders whose names appear on the register of members of the Company on September 13, 2023[80](index=80&type=chunk) - Shareholders whose shares of the Company are deposited in securities accounts with The Central Depository (Pte) Limited in Singapore will be entitled to the interim dividend[82](index=82&type=chunk) [Closure of Register of Members](index=13&type=section&id=Closure%20of%20Register%20of%20Members) To qualify for the interim dividend, the Company will suspend its share transfer registration from September 12, 2023, to September 13, 2023 - The Company's register of members will be closed from September 12, 2023, to September 13, 2023 (both days inclusive)[81](index=81&type=chunk) - All duly completed transfer forms, together with the relevant share certificates, must be lodged with the Company's Hong Kong Share Registrar by 4:30 p.m. on September 11, 2023[57](index=57&type=chunk) [Purchase, Sale or Redemption of Securities](index=13&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's shares or other securities during the six months ended June 30, 2023 - Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company's shares or other securities during the six months ended June 30, 2023[83](index=83&type=chunk) [Corporate Governance](index=13&type=section&id=Corporate%20Governance) Throughout the review period, the Company complied with all code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules of The Stock Exchange of Hong Kong Limited - Throughout the review period, the Company complied with all code provisions of the Corporate Governance Code set out in Appendix 14 to the Listing Rules of The Stock Exchange of Hong Kong Limited[84](index=84&type=chunk) [Board of Directors](index=13&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors comprises six executive directors, including Mr. Shao Tie Lung (Chairman), and four independent non-executive directors, including Dr. Li Tat Yee - The executive directors of the Company are Mr. Shao Tie Lung (Chairman), Mr. Shao Yuk Lung, Mr. Wai Lung Shing, Mr. Ding Zong Hao, Mr. Shao Xu Tong and Mr. Shao Yu Heng[85](index=85&type=chunk) - The independent non-executive directors of the Company are Dr. Li Tat Yee, Mr. Li Yu Hoi, Mr. Wong Hak Kan and Ms. Ho Lap Mei[85](index=85&type=chunk)

Procurement and Suppliers - The largest supplier accounted for 41% of the total procurement amount for the year, while the top five suppliers together accounted for 65%[3]. Corporate Governance - The company has a total equity of 407,372,381 shares, representing 64.49% of the issued share capital[9]. - The company has not entered into any arrangements that would allow directors to benefit from purchasing shares or bonds of the company or any other entity during the year[15]. - The board consists of six executive directors and four independent non-executive directors as of December 31, 2022[20]. - The company has adopted the standard code of conduct for securities trading by directors, ensuring compliance throughout the year[19]. - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange's listing rules[96]. - The board of directors held four regular meetings during the fiscal year, with all directors attending[77]. - The company does not grant performance-related equity compensation to independent non-executive directors[6]. Financial Performance - The group's revenue for the year ended December 31, 2022, was HKD 1,601,433,000, with a profit of HKD 15,814,000[44]. - The group's revenue for the year ended December 31, 2022, decreased by 29.6% to HKD 1,601,433,000 compared to HKD 2,273,399,000 in the previous year, primarily due to the impact of COVID-19 and strict prevention measures in China[47]. - The annual profit for the year was HKD 15,814,000, down from HKD 227,841,000 in the previous year[55]. - The group reported a profit before tax of HKD 21,670,000, a significant decline from HKD 315,489,000 in the previous year[55]. - The basic earnings per share decreased to HKD 2.50 from HKD 36.07 in the previous year[55]. - The group’s total comprehensive income for the year was HKD 268,500,000, reflecting the impact of foreign exchange differences from overseas operations[1]. - The group’s total comprehensive expenses for the year amounted to HKD 120,455,000, influenced by foreign exchange losses[1]. Cash Flow and Financial Position - Operating cash flow before changes in working capital was HKD 146,679,000, with net cash from operating activities amounting to HKD 76,865,000[35]. - The group reported a net cash decrease of HKD 249,786,000 for the year, with year-end cash and cash equivalents at HKD 536,643,000[35]. - The group's bank deposits and cash amounted to HKD 536,643,000 as of December 31, 2022, compared to HKD 833,586,000 in 2021, with no borrowings reported[91]. - The group has sufficient cash to meet its operational and capital commitments, with no financial impact from the COVID-19 pandemic[93]. Operational Challenges - The group experienced a significant decline in total customer orders due to a contraction in the overall Chinese market, leading to a corresponding decrease in revenue[45]. - The group faced challenges from geopolitical tensions and the ongoing impact of the COVID-19 pandemic, which affected consumer confidence and economic activity[45]. - The management highlighted significant market and inflationary pressures affecting the prices of mold steel raw materials, resulting in increased operational costs[46]. - Demand for household appliances and furniture products continues to decline, and the medical product demand is expected to decrease as the pandemic recedes[197]. Employee and Compensation - The group employed approximately 2,900 employees as of December 31, 2022, with a competitive compensation system in place[94]. - Employee benefit expenses decreased by 23.6% to HKD 436,242,000, while other expenses decreased by 15.2% to HKD 369,563,000[49]. Investment and Assets - The fair value measurement of investment properties is based on observable and unobservable inputs, classified into three levels[85]. - The fair value of investment properties increased by HKD 19,500,000 compared to the same period last year[122]. - The carrying amount of property, plant, and equipment is reviewed for impairment indicators at the end of the reporting period[120]. - The group measures inventory at the lower of cost and net realizable value, with costs determined using the weighted average cost method[170]. Taxation - Income tax expenses decreased by 93.3%, with the effective tax rate reduced to 27.0% (2021: 27.8%)[122]. - Deferred tax assets and liabilities are reviewed at each reporting date and adjusted if it is no longer probable that sufficient taxable profits will be available to recover the assets[176]. Future Outlook - The company will adopt a cautious approach to market changes while striving for sustainable business development in 2023[112]. - The group anticipates that as the pandemic is controlled, Chinese consumer spending will gradually increase, further driving economic growth in the domestic market, although the growth rate remains to be observed[197]. - Raw material and mold steel prices are expected to continue fluctuating due to inflationary pressures, prompting the group to optimize management models and enhance automated production processes to mitigate potential risks and pressures from rising costs[198]. - The group is focused on managing operational costs while improving production efficiency to lower the impact of cost increases[198].