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佈之內容概不負 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佈全部或 任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：387） 截至二零二三年六月三十日止六個月之 中期業績公佈 力豐（集團）有限公司（「本公司」）董事會（「董事」或「董事會」）謹此提呈本公司及其 附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月之未經審核簡明綜 合中期業績，連同未經審核之比較數字及選定說明附註，此乃根據香港會計師公 會頒佈之香港會計準則第34號「中期財務報告」編製而成，並已由本公司審核委員 會審閱。 中期股息 截至二零二三年六月三十日止六個月，董事會議決宣派中期股息每股1港仙（二零 二二年：無）。該股息將派付予於二零二三年九月十三日（「記錄日期」）名列本公司 股東名冊之股東。預期中期股息將於二零二三年九月二十九日（星期五）或前後分 派予股東。 ...

Financial Performance - In 2022, the group's sales amounted to HKD 874,011,000, representing a 23.5% increase from HKD 707,752,000 in 2021[6] - The group's gross profit for 2022 was HKD 133,205,000, up 32.0% from HKD 100,918,000 in 2021, with a gross margin of 15.2% compared to 14.3% in the previous year[6] - The group's operating profit for 2022 was HKD 16,329,000, compared to an operating loss of HKD 9,332,000 in 2021[15] - The profit attributable to the company's owners for 2022 was HKD 8,317,000, a significant recovery from a loss of HKD 38,984,000 in 2021[14] - Basic earnings per share for 2022 were HKD 0.0361, compared to a loss per share of HKD 0.1694 in 2021[16] - The net profit margin improved to approximately 1.0% in 2022, compared to (5.5%) in 2021, mainly due to increased sales in the electric vehicle sector and the elimination of a financial impact from a subsidiary's dissolution[31] - The return on equity for the group was approximately 1.7% in 2022, up from (8.6%) in 2021, reflecting the rise in profit[32] Income and Expenses - Other income and gains totaled HKD 6,311,000 in 2022, a decrease of 38.3% from HKD 10,221,000 in 2021[7] - The group's financing expenses for 2022 were HKD 9,598,000, an increase of 144.7% from HKD 3,923,000 in 2021, primarily due to rising market interest rates[10] - The income tax expense for 2022 was HKD 3,355,000, down 27.5% from HKD 4,625,000 in 2021[12] Dividends - The proposed final dividend for the year ended December 31, 2022, is HKD 0.01 per share, totaling HKD 2,301,000, which, combined with a special dividend of HKD 0.08 per share paid on January 4, 2023, results in a total dividend of HKD 0.09 per share for the year, compared to HKD 0.05 per share in 2021[18] - The company reported a final dividend of HKD 0.01 per share, totaling HKD 2,301,000, and a special interim dividend of HKD 0.08 per share, resulting in a total dividend of HKD 0.09 per share for the year, compared to HKD 0.05 per share in the previous year[53] Assets and Liabilities - The group's cash balance as of December 31, 2022, was HKD 63,438,000, similar to HKD 65,522,000 in the previous year[28] - The group's inventory balance as of December 31, 2022, was HKD 92,890,000, down from HKD 111,908,000 in 2021, with inventory turnover days decreasing from 67 days to 46 days[28] - The accounts receivable balance as of December 31, 2022, was HKD 263,661,000, up from HKD 109,980,000 in 2021, with accounts receivable turnover days increasing from 57 days to 110 days[28] - The net asset liability ratio as of December 31, 2022, was approximately 33.5%, up from 26.4% in 2021, due to increased borrowing levels[29] - The net debt-to-equity ratio increased to approximately 33.5% as of December 31, 2022, compared to 26.4% in 2021, due to increased bank borrowings supporting sales growth[32] Market and Industry Outlook - The production of new energy vehicles in China increased by 90.5% in 2022, contributing to the success of the group's machine tool and electronic equipment division[21] - The group expects to focus on the new energy vehicle industry in 2023, supported by government initiatives including tax reductions for new energy vehicle purchases[24] - The GDP growth rate target set by the Chinese government for 2023 is 5%, with encouraging signs from the manufacturing PMI reaching 52.6% in February 2023[24] - The group anticipates improved financial performance in 2023 compared to 2022, with lower currency volatility expected to reduce foreign exchange risks[25] Employee and Workforce - The group employed 237 staff as of December 31, 2022, a decrease from 250 staff in 2021[38] - The company had a total of 237 employees as of December 31, 2022, with a gender distribution of 160 males and 77 females[165] - Employee turnover rates were 10.5% for males and 7.2% for females, with a notable 12.2% turnover rate in mainland China[166] - The average training hours for employees were 14.8 hours for males and 10.1 hours for females, with 72.8% of trained employees being female[173] - The company emphasizes employee growth and development through various internal training programs and encourages participation in external training and educational activities[172] Corporate Governance - The company confirmed compliance with the corporate governance code as of December 31, 2022[95] - The audit committee consists of three independent non-executive directors who reviewed the group's accounting principles and financial reporting[97] - The board of directors held a total of nine meetings and one annual general meeting during the fiscal year ending December 31, 2022[114] - The company has established a defined contribution retirement plan for eligible employees in Hong Kong, with a contribution rate of 5% of salary[101] - The company has arranged for directors' liability insurance to cover potential costs and liabilities arising from claims against directors[105] Risk Management - The company has established risk management systems to identify and manage significant risks that could adversely affect its performance[56] - The board is responsible for overseeing the company's risk management and internal control systems, ensuring they are effective in managing operational risks[139] - The internal audit department ensures the effectiveness of internal controls to protect shareholder investments and company assets[141] Environmental, Social, and Governance (ESG) - The company emphasizes its commitment to reducing environmental impact and promoting sustainable community development[164] - The board is responsible for managing environmental, social, and governance (ESG) matters, ensuring alignment with the company's strategy[155] - The company has identified 16 significant ESG issues, including energy efficiency and waste management, which will be detailed in the report[162] - The company aims to optimize waste, energy consumption, and natural resource management as part of its future development and sustainability plans[164] - Greenhouse gas emissions from electricity consumption decreased from 249 tons CO2 equivalent in 2021 to 211 tons in 2022, representing a reduction of approximately 15.3%[200] Compliance and Legal Matters - There were no significant violations of applicable laws and regulations that had a major impact on the group's business and operations during the fiscal year[64] - The company has not experienced any legal cases related to corruption in the fiscal years 2021 and 2022[189] - The company strictly adheres to local labor laws, prohibiting forced labor and child labor in its operations[175] Procurement and Supply Chain - The company has 116 suppliers located in mainland China, 44 in Hong Kong, and 41 outside of China[193] - The company emphasizes responsible procurement as an integral part of its procurement and supply chain management processes[191] - The company adheres to ISO 9001:2015 quality management system standards, covering various aspects including customer satisfaction monitoring[183]

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佈之內容概不負 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佈全部或 任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：387） 截至二零二二年十二月三十一日止年度 之業績公佈 力豐（集團）有限公司（「本公司」）董事（「董事」）會謹此提呈本公司及其附屬公司（統 稱「本集團」）截至二零二二年十二月三十一日止年度之綜合年度業績，連同截至 二零二一年十二月三十一日止年度之比較數字。本年度業績已由本公司之審核委 員會審閱。 財務表現 銷售 於二零二二年，儘管中國的經濟情況尤其因政府實施與2019冠狀病毒有關的嚴格 管制措施而顯得複雜，惟本集團的訂單及發票銷售額仍分別達致1,046,432,000港 元及874,011,000港元。此出色的業務表現乃由於年內新能源汽車製造發展蓬勃。 ...

Financial Performance - Total contract value signed in the first half of 2022 reached HKD 757,384,000, an increase of 62.2% compared to HKD 466,939,000 in the same period last year[19] - Sales revenue for the first half of 2022 was HKD 348,434,000, nearly unchanged from HKD 348,436,000 in the same period last year, impacted by lockdowns in Shanghai[5] - Gross profit for the first half of 2022 was HKD 47,859,000, a decrease of 6.6% from HKD 51,252,000 in the previous year, with a gross profit margin of 13.7% compared to 14.7% last year[5] - Other income and gains totaled HKD 7,405,000, up 40.5% from HKD 5,269,000 in the previous year, with service income increasing by 56.4% to HKD 6,987,000[6] - Net loss from derivative financial instruments was HKD 4,344,000, an increase of 569.3% from HKD 649,000 in the previous year, primarily due to significant currency exchange losses[8] - Financing costs, net of interest income, increased by 105.3% to HKD 2,946,000 compared to HKD 1,435,000 in the previous year[10] - Share of profit from associates after tax was HKD 2,369,000, a 52.1% increase from HKD 1,558,000 in the previous year, reflecting recovery in European and Chinese markets[13] - Loss attributable to owners of the company was HKD 5,686,000, a significant reduction of 81% from HKD 29,993,000 in the previous year[15] - Basic loss per share was HKD 0.0247, down 81.1% from HKD 0.1304 in the previous year[16] - The company expects significant improvement in revenue for the second half of 2022, driven by a recovery in deliveries and sales[20] Cash and Liquidity - As of June 30, 2022, cash and cash equivalents totaled HKD 51,823,000, down from HKD 65,522,000 on December 31, 2021[24] - The company's inventory balance as of June 30, 2022, was HKD 111,056,000, with inventory turnover days remaining stable at 67 days[24] - Accounts receivable as of June 30, 2022, amounted to HKD 162,483,000, with an increase in turnover days to 85 days from 57 days due to longer credit terms for customers[24] - The net debt-to-equity ratio increased to approximately 42.1% as of June 30, 2022, compared to 26.4% on December 31, 2021, due to higher borrowing levels[27] - The company reported a net financing cost of HKD 2,946 for the first half of 2022, compared to HKD 1,435 in the same period of 2021, reflecting an increase of about 105.5%[58] - The company's cash and cash equivalents as of June 30, 2022, were HKD 51,823, down from HKD 65,522 as of December 31, 2021, indicating a decrease of approximately 20.9%[54] Assets and Liabilities - Total assets as of June 30, 2022, amounted to HKD 965,164, an increase from HKD 885,323 as of December 31, 2021, representing a growth of approximately 9.0%[52] - The company's total liabilities increased to HKD 557,014 as of June 30, 2022, compared to HKD 418,578 as of December 31, 2021, reflecting a rise of about 33.1%[56] - The total equity attributable to the owners of the company decreased to HKD 408,150 as of June 30, 2022, from HKD 466,745 as of December 31, 2021, a decline of about 12.5%[56] - The company’s total liabilities increased, leading to a higher debt-to-equity ratio compared to the previous reporting period[69] Operational Highlights - The value of unfinished orders as of July 31, 2022, was HKD 759,099,000, while the invoiced sales for the first half of 2022 amounted to HKD 348,434,000[20] - The company reported an order volume of HKD 757,384,000 for the first half of 2022, indicating strong performance despite earlier lockdowns[28] - The overall sales volume of new energy vehicles in China is expected to increase by 56% in 2022, benefiting the company's business[28] - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming quarters[71] - The company has invested in new technologies and product development to drive future growth and improve operational efficiency[71] Shareholder and Governance - The board decided not to declare any interim dividend for the first half of 2022, but plans to propose a special cash dividend of HKD 0.08 per share pending shareholder approval[17] - As of June 30, 2022, the major shareholder, Mr. Li, held 144,529,982 shares, representing 74.41% of the company[42] - The company has complied with the corporate governance code as of June 30, 2022, ensuring a balance of power and responsibilities within the board[46] - The audit committee reviewed the accounting principles and practices adopted by the group, discussing internal controls and financial reporting matters[50] Financial Risks and Management - The group faced various financial risks, including market risk, credit risk, and liquidity risk, with no significant changes in risk management policies since year-end[84][85] - The company has established foreign currency hedging strategies to mitigate exchange rate risks associated with its sales and purchases[37] Investment and Capital Expenditures - Capital expenditures for the first six months of 2022 totaled HKD 996,000, down from HKD 1,177,000 in the same period of 2021[35] - The company reported a depreciation expense of HKD 4,561,000 for property, plant, and equipment for the six months ended June 30, 2022, compared to HKD 4,737,000 in 2021[110] - The investment in associates showed a slight increase, reaching HKD 62,072,000 as of June 30, 2022, compared to HKD 61,930,000 in the previous year[118] Other Financial Information - The company recorded a loss attributable to owners of the company from continuing operations of HKD 5,686,000 for the six months ended June 30, 2022, compared to a loss of HKD 29,993,000 in the same period of 2021, showing a significant reduction in losses[136] - The company incurred a loss of HKD 13,216,000 due to currency exchange differences during the reporting period[69] - The company provided a loan to OPS-Ingersoll Holding GmbH with a principal value of HKD 16,450,000 as of June 30, 2022, down from HKD 17,717,000 as of December 31, 2021[145] - Interest received from OPS for the period amounted to HKD 458,000, compared to HKD 399,000 in the previous year[145] - A loss provision of HKD 160,000 has been recognized for the loan, consistent with the previous year[145] - The company agreed to sell 649,921 equity securities for a cash consideration of EUR 16,248,025, equivalent to approximately HKD 131,776,358, with the transaction expected to complete in October 2022[146]

Financial Performance - The total value of contracts signed in 2021 was HKD 887,485,000, an increase of 35.1% compared to HKD 657,013,000 in 2020[10] - The sales revenue for 2021 was HKD 707,752,000, up 14.5% from HKD 617,937,000 in 2020[10] - The gross profit for 2021 was HKD 100,918,000, an increase of 8.6% from HKD 92,934,000 in 2020, with a gross margin of 14.3% compared to 15.0% in 2020[10] - Other income and gains totaled HKD 10,221,000 in 2021, a decrease of 56.7% from HKD 23,599,000 in 2020[11] - The operating loss for the trading business in 2021 was HKD 9,332,000, compared to an operating profit of HKD 9,175,000 in 2020[19] - The company reported a loss attributable to owners of HKD 38,984,000 in 2021, compared to a profit of HKD 4,451,000 in 2020[18] - The basic loss per share for 2021 was HKD 0.1694, compared to a basic earnings per share of HKD 0.0193 in 2020[20] - The administrative expenses for 2021 were HKD 96,607,000, an increase of 5.7% from HKD 91,423,000 in 2020[13] - The income tax expense for 2021 was HKD 4,625,000, an increase of 11.9% from HKD 4,132,000 in 2020[16] - The total comprehensive income attributable to the owners of the company for 2021 was HKD 19,330,000, a decrease of 40.1% from HKD 32,248,000 in 2020, primarily due to losses recorded in 2021[21] Dividends - The company proposed a final dividend of HKD 0.025 per ordinary share, totaling HKD 5,752,000, which, combined with a special dividend paid in September 2021, results in a total dividend of HKD 0.050 per share for the year, down from HKD 0.060 in 2020[22] - The company’s dividend policy does not set a predetermined payout ratio, and dividends are subject to the board's discretion based on various financial factors[141] Orders and Inventory - The order value for the group in 2021 was HKD 887,485,000, representing a 35.1% increase from HKD 657,013,000 in 2020, despite global supply chain issues affecting delivery times[24] - As of February 2022, the value of uncompleted orders was HKD 830,509,000, a significant increase of 268.6% from HKD 225,334,000 in February 2021[25] - Inventory as of December 31, 2021, was HKD 111,908,000, an increase from HKD 76,798,000 in 2020, with inventory turnover days rising to 67 days from 53 days[31] Financing and Debt - The net financing expenses for 2021 were HKD 2,973,000, down 35.1% from HKD 4,576,000 in 2020[14] - The net debt-to-equity ratio as of December 31, 2021, was approximately 26.4%, up from 12.5% in 2020, reflecting increased borrowing levels[32] - The total asset value pledged for bank financing was approximately HKD 259,520,000 as of December 31, 2021, down from HKD 274,183,000 on December 31, 2020[41] Operational Outlook - The company plans to strengthen its sales team in 2022, focusing on the automotive manufacturing sector to capture new customer segments[28] - The company maintains a cautiously optimistic outlook for 2022, despite uncertainties in the global political and economic landscape[29] - The group plans to implement a gradual business development plan to enhance future sales revenue[35] Market and Competition - The company faces intense competition in the Chinese production equipment and tools market, dealing with pricing competition and challenges in customer acquisition costs and contract payment terms[63] - The group is heavily reliant on the Chinese market, and any adverse changes in this market could severely impact performance[3] - The group is developing markets in Taiwan and Indonesia to diversify risks associated with over-reliance on China[3] Employee and Governance - The group employed 250 staff as of December 31, 2021, a decrease from 262 staff in 2020, with a competitive compensation scheme in place[42] - The company has complied with the corporate governance code as of December 31, 2021, except for specific provisions[104] - The board consists of six members, with a significant representation of independent directors to enhance governance[140] - The company has established a mandatory provident fund plan for Hong Kong employees, with both employer and employee contributions at 5% of total salary, capped at HKD 1,500 per month[110] Risk Management - The company has established risk management systems and processes to identify and manage significant risks that could adversely affect its performance[60] - The Board is responsible for overseeing the company's risk management and internal control systems, ensuring they are effective in identifying and mitigating risks[156] Environmental and Social Responsibility - The group has implemented various green office measures to promote environmental awareness and reduce waste[7] - The company is committed to protecting human rights and complying with all relevant labor laws, with zero tolerance for forced labor or child labor[193] Safety and Training - The company reported zero occupational accidents and no reported occupational diseases in 2021, maintaining a safe working environment[181] - The company has established a comprehensive safety training program for new employees and those in high-risk environments[181]

Financial Performance - Total contracts signed in the first half of 2021 amounted to HKD 466,939,000, a 71.9% increase compared to HKD 271,691,000 in the same period last year[5] - Sales revenue for the first half of 2021 was HKD 348,436,000, up 19.4% from HKD 291,756,000 in the previous year[5] - Gross profit for the first half of 2021 reached HKD 51,252,000, a 13.5% increase from HKD 45,167,000 year-on-year, with a gross margin of 14.7% compared to 15.5% in the prior year[5] - The company reported a loss attributable to owners of HKD 29,993,000 for the first half of 2021, a significant increase of 299.1% from a loss of HKD 7,516,000 in the previous year[16] - The total comprehensive income attributable to owners for the first half of 2021 was HKD 48,002,000, compared to a total comprehensive loss of HKD 15,499,000 in the same period last year[18] - The company reported a total comprehensive loss of HKD 47,046,000 for the period, compared to a loss of HKD 16,637,000 in the previous year[62] - The company’s basic loss per share was HKD (13.04) for the six months ended June 30, 2021, compared to HKD (3.27) in the same period of 2020[59] Income and Expenses - Other income and gains totaled HKD 5,269,000, a decrease of 32.6% from HKD 7,823,000 in the same period last year[6] - Financing costs for the first half of 2021 were HKD 1,903,000, a 45.4% reduction from HKD 3,487,000 in the previous year due to decreased bank borrowings and lower market interest rates[11] - The company recorded a net financing cost of HKD 1,435,000, an improvement from HKD 2,763,000 in the previous year[57] - The company incurred a cash outflow of HKD 5,052,000 for interest payments during the period, compared to HKD 23,167,000 in the prior year, showing a reduction in financing costs[74] - Employee benefits expenses decreased to HKD 29,039 from HKD 32,553 in the previous year[132] Assets and Liabilities - The net asset-to-liability ratio at the end of June 2021 was approximately 8.7%, down from 12.5% at the end of December 2020[12] - The total assets as of June 30, 2021, were HKD 890,864,000, an increase from HKD 846,529,000 as of December 31, 2020[53] - The company’s total liabilities stood at HKD 389,603,000, slightly up from HKD 384,261,000 at the end of 2020[55] - The net debt-to-equity ratio decreased to approximately 8.7% as of June 30, 2021, down from 12.5% at the end of 2020, due to reduced borrowing levels and increased equity from financial asset appreciation[25] - The company has a total of HKD 464,134,000 in current assets as of June 30, 2021, compared to HKD 419,425,000 at the end of 2020[53] Cash Flow - As of June 30, 2021, the company's cash balance was HKD 100,697,000, up from HKD 92,591,000 on December 31, 2020, indicating improved cash flow[24] - For the six months ended June 30, 2021, the company reported a net cash outflow from operating activities of HKD 8,163,000, compared to HKD 23,760,000 for the same period in 2020, indicating a significant improvement[74] - The company recorded a net cash inflow from investing activities of HKD 23,249,000, a decrease from HKD 82,126,000 in the previous year, primarily due to reduced asset sales[74] - The total cash and cash equivalents at the end of the period stood at HKD 100,697,000, up from HKD 58,135,000 at the end of June 2020, reflecting a strong liquidity position[74] Market and Economic Context - China's GDP grew by 12.7% in the first half of 2021, with industrial production increasing by 15.9% and export value rising by 28.1% compared to the same period in 2020[21] - The automotive manufacturing sector grew by 26.4%, producing 12.8 million vehicles, while mobile phone manufacturing increased by 13.7%, computer manufacturing rose by 43.9%, and integrated circuit board manufacturing surged by 48.1% in the first half of 2021[21] Future Outlook and Plans - The company anticipates that the upward trend in order value will continue into the second half of 2021, potentially reaching the highest total order volume since 2012[28] - The company plans to enhance marketing efforts by participating in multiple exhibitions and restructuring the sales organization to increase the number of managers and frontline staff[28] - The company plans to monitor market conditions for further investments in manufacturing equipment suppliers with the remaining HKD 14,518,000 from the sale proceeds[40] Shareholder Information - A special interim dividend of HKD 0.025 per ordinary share was declared, resulting from the sale of property valued at HKD 29.5 million[20] - Peak Power Technology Limited controls 62.8% of the company, with the remaining 37.2% held by the public[150] - The company has not received any notifications regarding major shareholders holding 5% or more of the issued share capital as of June 30, 2021[47] Investments and Capital Expenditures - Capital expenditures for the first six months of 2021 totaled HKD 1,177,000, significantly higher than HKD 66,000 in the same period of 2020, primarily for plant and equipment[35] - The company has authorized capital commitments for the acquisition of property and equipment amounting to HKD 2,116 as of June 30, 2021[148] Risks and Compliance - The group faced various financial risks, including market risk, credit risk, and liquidity risk, with no significant changes in risk management policies since year-end[88][89] - The group did not have any revenue from a single customer accounting for 10% or more of total revenue during the periods ended June 30, 2021, and June 30, 2020[104] - The company has not adopted any new accounting standards that would have a significant impact on its financial position as of June 30, 2021[82]

ee 力 豐 （ 集 團 ） 有 限 公 司 LEEPORT (HOLDINGS) LIMITED (ສ B # # # * * # # ^ = } (ສ B # # = * # # ^ ANAB es) - O O IA COTER NB-66VA ATEST PARTY 集成化 自 動 製 造 技 術 年報 目錄 | --- | --- | |----------------------|-------| | | 頁次 | | 公司資料 | 2 | | 主席報告 | 3 | | 管理層討論及分析 | 7 | | 董事及高級管理層履歷 | 10 | | 董事會報告書 | 13 | | 企業管治報告書 | 24 | | 環境、社會及管治報告 | 34 | | 獨立核數師報告 | 40 | | 經審核財務報表 | | | 綜合資產負債表 | 46 | | 綜合收益表 | 48 | | 綜合全面收益表 | 49 | | 綜合權益變動表 | 50 | | 綜合現金流量表 | 52 | | 綜合財務報表附註 | 53 | | 五年財務摘要 | 138 | 1 力豐（集團）有限公司 二零二零年年報 公司資料 2 | - ...

Financial Performance - For the first half of 2020, the group's sales amounted to HKD 291,756,000, a decrease of 23.2% compared to HKD 379,751,000 in the same period last year[5]. - Gross profit for the first half of 2020 was HKD 45,167,000, down 33.7% from HKD 68,163,000 year-on-year, with a gross margin of 15.5% compared to 17.9% in the previous year[5]. - Total contracts signed in the first half of 2020 were valued at HKD 271,691,000, a decline of 13.0% from HKD 312,289,000 in the same period last year[5]. - The group reported a loss attributable to owners of HKD 7,516,000 for the first half of 2020, an increase of 20.4% compared to a loss of HKD 6,241,000 in the same period last year[14]. - Revenue for the six months ended June 30, 2020, was HKD 291,756 thousand, a decrease of 23.2% compared to HKD 379,751 thousand in 2019[52]. - The net loss attributable to the company's owners was HKD 7,516 thousand, compared to a loss of HKD 6,241 thousand in the previous year, representing a 20.5% increase in loss[52]. - Basic loss per share for the period was HKD (3.27), compared to HKD (2.71) in 2019, indicating a worsening of performance[54]. - Total comprehensive loss for the period was HKD 16,637 thousand, a decrease from HKD 18,332 thousand in 2019[58]. Expenses and Cost Management - Selling and distribution costs were HKD 8,008,000, a significant reduction of 52.6% from HKD 16,900,000 in the same period last year[8]. - Administrative expenses decreased by 25.1% to HKD 50,936,000 from HKD 68,045,000 year-on-year, attributed to cost-saving measures implemented by the group[8]. - The company expects to save at least HKD 40,000,000 in operational expenses for the year 2020[23]. - The group’s employee benefit expenses, including directors' remuneration, were HKD 32,553,000 for the six months ended June 30, 2020, down 21% from HKD 41,183,000 in 2019[132]. Assets and Liabilities - The value of uncompleted orders at the end of June 2020 was HKD 104,636,000, down 30.5% from HKD 150,448,000 year-on-year[5]. - As of June 30, 2020, the total assets of the company amounted to HKD 799,366,000, a decrease from HKD 897,128,000 as of December 31, 2019, representing a decline of approximately 10.9%[48]. - The company's total equity stood at HKD 415,834,000, compared to HKD 438,223,000, showing a decrease of around 5.1%[51]. - The total liabilities decreased to HKD 383,532,000 from HKD 458,905,000, marking a reduction of approximately 16.4%[51]. - The group’s total assets as of June 30, 2020, amounted to HKD 799,366,000, a decrease from HKD 897,128,000 as of December 31, 2019[105]. - The group reported a total borrowing of HKD 170,651,000 as of June 30, 2020, down from HKD 239,094,000 as of December 31, 2019, indicating a 29% decrease[129]. Cash Flow and Financing - For the six months ended June 30, 2020, the company reported a net cash outflow from operating activities of HKD 23,760,000, compared to HKD 29,435,000 for the same period in 2019, representing a decrease of approximately 19%[69]. - The company generated a net cash inflow from investing activities of HKD 82,126,000, a significant increase from HKD 10,712,000 in the prior year, indicating a strong improvement in investment performance[69]. - The financing activities resulted in a net cash outflow of HKD 60,186,000, compared to a net inflow of HKD 20,122,000 in the previous year, reflecting changes in borrowing and repayment strategies[69]. - The company reported a net financing cost of HKD (2,763) thousand, an improvement from HKD (3,175) thousand in the previous year[52]. Market and Business Outlook - The company anticipates that the measurement instruments business will see significant growth in the coming years following the sale of a 49% stake in Mitutoyo Leeport Metrology Corporation[23]. - Approximately HKD 34,022,000 from the sale proceeds was allocated to expand the measurement instruments division in China[35]. - The company plans to continue focusing on metal processing machinery and electronic equipment, aiming for market expansion and product development in the upcoming periods[70]. Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations during the reporting period[44]. - The board of directors confirmed adherence to the standard code for securities trading throughout the reporting period[46]. Employee and Management Information - As of June 30, 2020, the company employed 268 staff, down from 310 as of December 31, 2019[26]. - For the six months ended June 30, 2020, the total remuneration for key management personnel was HKD 5,303,000, an increase from HKD 4,475,000 in 2019, representing a growth of 18.5%[149].

Financial Performance - In 2019, the company's sales amounted to HKD 690,896,000, a decrease of 15.2% compared to HKD 814,836,000 in 2018[27] - The gross profit for 2019 was HKD 114,823,000, down 16.8% from HKD 137,933,000 in 2018, resulting in a gross margin of 16.6% compared to 16.9% in the previous year[27] - The total value of contracts signed in 2019 was HKD 588,523,000, a reduction of 30.9% from HKD 852,161,000 in 2018[27] - Other income and gains totaled HKD 14,481,000 in 2019, a decrease of 12.1% from HKD 16,476,000 in 2018[28] - The company reported a loss attributable to owners of HKD 43,413,000 in 2019, compared to a profit of HKD 19,210,000 in 2018[34] - The basic loss per share for 2019 was HKD 0.1887, compared to a basic earnings per share of HKD 0.0835 in 2018[35] - The net profit margin for 2019 was approximately -6.7%, a decline from 2.4% in 2018[46] - The return on equity for 2019 was approximately -10.4%, down from 4.1% in 2018[47] Expenses and Liabilities - Administrative expenses increased by 16.7% to HKD 136,688,000 in 2019, up from HKD 117,158,000 in 2018, primarily due to increased employee costs and higher operational expenses[29] - The net financing expenses for 2019 were HKD 7,056,000, compared to HKD 4,696,000 in 2018, with total financing expenses rising by 36.6% to HKD 8,635,000[31] - The net asset liability ratio increased to approximately 34.6% as of December 31, 2019, compared to 27.8% in 2018[45] - As of December 31, 2019, the group had contingent liabilities totaling HKD 10,281,000, up from HKD 4,631,000 in 2018[50] Business Operations - In 2019, the group's overall business decreased by 15.2% compared to 2018, with equipment sales dropping by 16.3%[38] - The sales of measuring instruments fell by 38.5% in 2019, primarily due to shipping delays[38] - The group completed the sale of a 49% stake in Mitutoyo Leeport Metrology Corporation for HKD 100,000,000 in January 2020[42] - The group anticipates challenges in 2020 but sees opportunities in infrastructure investments by the Chinese government[41] Shareholder Information - The board did not recommend any final dividend for the year ended December 31, 2019, but proposed a special dividend of HKD 0.025 per share for the year ending December 31, 2020[36] - The company did not recommend any dividend payment for the fiscal year ending December 31, 2019[73] - The company's dividend policy does not have a predetermined payout ratio and is subject to the board's discretion based on various financial and operational factors[153] - The board will review the dividend policy periodically and can update it as deemed necessary[156] Corporate Governance - The company confirmed compliance with the corporate governance code as of December 31, 2019[136] - The audit committee reviewed the accounting principles and practices adopted by the group and discussed risk management and internal control systems[125] - The company has adopted the standard code for securities transactions by directors and confirmed compliance for the entire year[137] - The board consists of seven members, including three independent non-executive directors, ensuring a diverse and balanced governance structure[152] - The company has established a framework for granting options, requiring independent non-executive director approval for options granted to major shareholders or directors exceeding certain thresholds[97] Risk Management - The company has a risk management system in place to identify and manage significant risks that could adversely affect its performance[76] - The company confirmed that there are no significant uncertainties that could severely impact its ability to continue as a going concern[169] - The board of directors has reviewed the effectiveness of the risk management and internal control systems as of December 31, 2019, and is satisfied with the results[173] Environmental and Social Responsibility - Total electricity consumption for the year was 512,865 kWh, a decrease from 573,911 kWh in the previous year, resulting in a reduction of CO2 emissions from 310 tons to 277 tons[187] - Water consumption decreased from 1,747 cubic meters to 1,599 cubic meters, with CO2 emissions from water usage also reduced from 0.7 tons to 0.6 tons[187] - Paper consumption decreased from 4,637 kg to 3,374 kg, leading to a reduction in CO2 emissions from paper usage from 4.3 tons to 3.1 tons[187] - The company has implemented an eco-friendly lighting and air conditioning management system to ensure energy efficiency in its offices[189] - A paperless data storage system has been established, allowing employees to store and retrieve electronic documents, reducing paper usage[189] - The company has set up waste recycling bins in offices to collect recyclable materials, contributing to waste reduction efforts[190] Employee and Operational Practices - The company has established a defined contribution retirement plan for eligible employees in Hong Kong, with a contribution rate of 5% of salary[128] - Employee training programs are regularly organized to enhance skills related to teamwork, leadership, and technical expertise[197] - The company maintains a supplier evaluation system to ensure the sustainability and compliance of its supply chain[200] - The company encourages customers to adopt environmentally responsible practices, offering special maintenance services to extend the lifespan of products[191]

Financial Performance - The group's sales for the first half of 2019 were HKD 379,751,000, a decrease of 11.7% compared to HKD 430,297,000 in the same period last year[7]. - Gross profit was HKD 68,163,000, slightly down by 0.2% from HKD 68,275,000, with a gross margin increase to 17.9% from 15.9% year-on-year[7]. - The group's attributable loss for the first half of 2019 was HKD 6,241,000, compared to a profit of HKD 17,243,000 in the same period last year[17]. - The company reported a revenue of HKD 379,751,000 for the six months ended June 30, 2019, a decrease of 11.8% compared to HKD 430,297,000 in the same period of 2018[53]. - The company incurred an operating loss of HKD 68,296,000, compared to an operating profit of HKD 11,920,000 in the previous year, reflecting a significant decline in operational performance[53]. - The net loss attributable to the company's owners was HKD 6,241,000, a sharp decline from a profit of HKD 17,243,000 in the prior year[53]. - The group reported a loss of HKD 6,868,000 for the period, compared to a profit of HKD 17,875,000 in the previous year, indicating a significant downturn in profitability[117]. - Total comprehensive loss for the period was HKD 18,332,000, down from a total comprehensive income of HKD 24,522,000 in the previous year[59]. Sales and Contracts - Total contracts signed in the first half of 2019 amounted to HKD 312,289,000, a decrease of 34.0% from HKD 473,069,000 in the previous year[7]. - The company reported a significant increase in sales from its sheet metal machinery business, attributed to several infrastructure projects in China[28]. - The company anticipates that certain industries, such as electric vehicles, 5G equipment, and mobile phones, will provide new business opportunities despite current market challenges[28]. Expenses and Costs - Operating expenses increased, with selling and distribution costs rising by 17.8% to HKD 16,900,000, and administrative expenses up 35.3% to HKD 68,296,000[11]. - The cost of goods sold for the six months ended June 30, 2019, was HKD 309,685,000, down from HKD 359,129,000 in 2018, representing a decrease of approximately 13.8%[147]. - The company's employee benefit expenses, including directors' remuneration, rose to HKD 41,183,000 in the first half of 2019, up from HKD 31,973,000 in 2018, marking an increase of about 28.8%[147]. Financial Position - Total assets as of June 30, 2019, were HKD 905,362,000, down from HKD 932,693,000 at the end of 2018, indicating a decrease of 2.9%[49]. - The company's total liabilities decreased slightly to HKD 484,028,000 from HKD 487,275,000, showing a reduction of 0.5%[51]. - Cash balance as of June 30, 2019, was HKD 54,216,000, compared to HKD 52,874,000 at the end of 2018, indicating a stable cash position[24]. - The company's capital expenditure for the first half of 2019 totaled HKD 116,000, a significant decrease from HKD 4,071,000 in the same period of 2018, indicating a reduction in investment activities[34]. - The company’s total equity attributable to owners decreased to HKD 421,022,000 from HKD 445,418,000 in the previous year[61]. Financing and Debt - The net financing cost was HKD 3,175,000, up from HKD 2,057,000 in the previous year, with financing costs increasing by 38.9% to HKD 3,973,000[13]. - As of June 30, 2019, the company's net debt-to-equity ratio was approximately 40.4%, up from 33.8% on December 31, 2018, indicating a higher level of borrowing compared to equity[25]. - The total bank financing available to the company as of June 30, 2019, was approximately HKD 737,916,000, with HKD 262,297,000 utilized, reflecting a reliance on bank loans for operational funding[27]. Dividends and Shareholder Returns - The group did not declare any interim dividend for the first half of 2019, compared to HKD 0.03 per share in the same period last year[19]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2019, compared to an interim dividend of HKD 6,902,000 in 2018[158]. Employee and Workforce - As of June 30, 2019, the company employed 346 staff, an increase from 328 employees at the end of 2018, reflecting a slight growth in workforce[30]. - Management personnel compensation for the six months ended June 30, 2019, was HKD 4,337,000, an increase from HKD 4,161,000 in the same period of 2018[164]. Accounting and Compliance - The group has adopted various new and revised standards effective from January 1, 2019, including HKFRS 16 related to leases[74]. - The financial statements have been prepared on a going concern basis, reflecting the board's confidence in the group's financial resources[71]. - The group has implemented new accounting policies consistent with the previous fiscal year, with no significant impact from other new standards adopted[73]. Risks and Liabilities - The company faces various financial risks, including market risk, credit risk, and liquidity risk, which are detailed in the financial risk management section[95]. - The company has total contingent liabilities of HKD 5,706,000 related to guarantees provided to customers, up from HKD 4,631,000 as of December 31, 2018[34]. - The company has outstanding foreign currency forward contracts totaling HKD 25,574,000, aimed at mitigating exchange rate risks associated with its sales and purchases[36].