Financial Performance - The company's revenue increased by approximately 20.9% from HKD 94,213,000 in the fiscal year ending December 31, 2023, to HKD 113,869,000 in the fiscal year ending December 31, 2024, primarily due to increased export sales to Japan [11]. - Gross profit decreased to approximately HKD 15,697,000 with a gross margin of 13.8% for the fiscal year ending December 31, 2024, compared to HKD 22,405,000 and 23.8% for the previous year [12]. - The company reported a profit attributable to equity holders of approximately HKD 15,300,000 for the year ended December 31, 2024, compared to a loss of HKD 11,500,000 in the same period last year [16]. - Operating profit for the year was HKD 17,494,000, a significant recovery from an operating loss of HKD 7,066,000 in the previous year [174]. - Profit before tax was HKD 15,324,000, compared to a loss before tax of HKD 11,456,000 in 2023 [174]. - Basic and diluted earnings per share improved to HKD 1.90 from a loss of HKD 1.42 per share in the prior year [174]. - Total comprehensive income for the year was HKD 5,514,000, recovering from a total comprehensive loss of HKD 11,558,000 in 2023 [176]. - Cash generated from operating activities was HKD 6,701,000, down from HKD 15,870,000 in the previous year [186]. - The company experienced a net cash inflow of HKD 51,215,000 from investing activities, primarily due to the sale of subsidiaries [186]. - The company paid dividends amounting to HKD 60,688,000 during the year [186]. Asset and Liability Management - Non-current assets decreased to HKD 3,029,000 as of December 31, 2024, from HKD 97,575,000 in the previous year, indicating a significant reduction in asset value [7]. - The net asset value of the company was HKD 51,999,000 as of December 31, 2024, down from HKD 107,173,000 in the previous year [7]. - Current assets decreased to HKD 63,288,000 from HKD 84,695,000, a decline of 25.4% [179]. - Current liabilities significantly reduced to HKD 14,150,000 from HKD 72,620,000, a decrease of 80.6% [179]. - Total equity as of December 31, 2024, was HKD 51,999,000, a decrease from HKD 107,173,000 at the beginning of the year [182]. - The company reported a cash and cash equivalents balance of HKD 26,948,000, down from HKD 33,510,000 in the previous year [179]. - The company’s total liabilities decreased significantly, reflecting improved financial management strategies [189]. Operational Changes - The company successfully sold its wholly-owned subsidiary, Success Profit International Limited, for HKD 62,000,000, eliminating all bank borrowings and distributing a special dividend of HKD 0.0751 per share to shareholders [8]. - Selling and distribution expenses decreased to approximately HKD 4,682,000 for the fiscal year ending December 31, 2024, down from HKD 7,665,000 in the previous year, due to lower marketing activity levels [13]. - Administrative expenses were approximately HKD 8,776,000 for the fiscal year ending December 31, 2024, significantly reduced from HKD 22,354,000 in the previous year, attributed to the absence of impairment provisions and favorable foreign exchange gains [15]. - The company has ceased its marketing business as of March 2024, which had provided higher gross margins, indicating a strategic shift in operations [10]. - The company plans to streamline its business strategies to enhance overall performance and outlook amid challenging business and political environments [8]. Market and Strategic Focus - The company is focusing on expanding its overseas market presence, particularly in the Middle East and Japan, to counteract the decline in demand in the Chinese furniture market [10]. - The geopolitical situation, rising interest rates, and trade conflicts, particularly between the US and China, may severely impact the company's export business in 2025 [36]. - The company maintains a cautious but optimistic outlook, confident in its team and corporate value to seize anticipated recovery opportunities [36]. - The company plans to enhance research and development and promote new products through exhibitions, while maintaining close communication with customers to share market trends [36]. Governance and Compliance - The board held four meetings during the fiscal year ending December 31, 2024, with full attendance from all directors [53]. - The audit committee conducted two meetings in the review year, with all members present, and confirmed no significant uncertainties regarding the company's ability to continue as a going concern [60]. - The remuneration committee held one meeting to review the compensation and incentive policies for directors and senior management, with full attendance [62]. - The company has established specific committees, including the audit committee, remuneration committee, and nomination committee, to assist in effective governance [59]. - Continuous professional development training was completed by all directors during the fiscal year, ensuring they remain informed and skilled [57]. - The company has established a whistleblowing policy to allow employees and relevant third parties to report any actions that may harm the company's interests [88]. - The company has adopted an anti-corruption policy to promote compliance with anti-corruption laws and provide guidelines for ethical conduct [91]. - The board and audit committee will regularly review the effectiveness of the anti-corruption policy and mechanisms [92]. Shareholder Relations - The company is committed to transparent communication with shareholders, providing updates through financial reports and its website [79]. - The company allows shareholders holding at least 10% of the voting rights to request a special general meeting within two months of submission [81]. - Shareholders with at least 5% of the paid-up capital can submit written requests for notices regarding proposed resolutions at the next general meeting [84]. - The company held two shareholder meetings in 2024, with full attendance from executive and independent directors [79]. Employee and Diversity Initiatives - As of December 31, 2024, the group employed approximately 125 employees, with employee costs amounting to HKD 17,000,000, an increase from HKD 15,800,000 in 2023 [17]. - The gender ratio of employees as of December 31, 2024, is 76:24, reflecting the company's commitment to diversity in hiring practices [52]. - The company recognizes the importance of attracting and retaining skilled personnel and offers competitive compensation packages, including stock options, to achieve its business objectives [31]. Audit and Financial Reporting - The independent auditor's report confirmed that the financial statements present a true and fair view of the group's financial position as of December 31, 2024 [154]. - The group prepares consolidated financial statements based on historical cost accounting principles [193]. - The adoption of new Hong Kong Financial Reporting Standards did not have a significant impact on the group's financial performance or position for the current or prior periods [194]. - The audit identified trade receivables impairment as a key audit matter due to the subjective nature of management's estimates [158].

Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 113,869,000, representing a 20.9% increase from HKD 94,213,000 in 2023[4] - Gross profit decreased to HKD 15,697,000 in 2024 from HKD 22,405,000 in 2023, reflecting a decline of 30.1%[4] - Operating profit for the year was HKD 17,494,000, a significant recovery from an operating loss of HKD 7,066,000 in the previous year[4] - The net profit for the year was HKD 15,324,000, compared to a net loss of HKD 11,456,000 in 2023, marking a turnaround[4] - Basic and diluted earnings per share improved to HKD 1.90 from a loss of HKD 1.42 in the previous year[4] - Total comprehensive income for the year was HKD 5,514,000, recovering from a total comprehensive loss of HKD 11,558,000 in 2023[5] - The company reported a profit before tax of HKD 15,324,000 for 2024, compared to a loss of HKD 11,456,000 in 2023, marking a significant turnaround[17] - The profit attributable to equity holders for the year ended December 31, 2024, was approximately HKD 15,300,000, compared to a loss of HKD 11,500,000 in the same period last year[47] Revenue and Sales - The company reported a significant increase in sales of goods to HKD 111,139,000 in 2024 from HKD 83,109,000 in 2023, an increase of 33.7%[12] - Revenue from external customers in Asia (excluding China) increased to HKD 72,127,000 in 2024 from HKD 45,352,000 in 2023, representing a growth of 59.0%[21] - Revenue from major customers accounted for over 10% of total revenue, with Customer A contributing HKD 50,176,000 in 2024, a significant increase from HKD 10,588,000 in 2023[22] - The company's revenue increased by approximately 20.9% from about HKD 94,200,000 for the year ended December 31, 2023, to HKD 113,900,000 for the year ended December 31, 2024, primarily due to increased export sales to Japan[43] Expenses and Costs - The cost of goods sold increased to HKD 98,172,000 in 2024 from HKD 71,808,000 in 2023, reflecting a rise in operational expenses[6] - Sales and distribution expenses decreased to approximately HKD 4,700,000 for the year ended December 31, 2024, compared to HKD 7,700,000 for the previous year, due to lower marketing activity levels[45] - The group's administrative expenses for the year ended December 31, 2024, were approximately HKD 8,800,000, a decrease from HKD 22,400,000 for the year ended December 31, 2023, primarily due to the absence of impairment provisions and favorable foreign exchange gains[46] Assets and Liabilities - The company's total assets decreased to HKD 63,288,000 in 2024 from HKD 84,695,000 in 2023, a decline of 25.3%[6] - Current liabilities significantly reduced to HKD 14,150,000 in 2024 from HKD 72,620,000 in 2023, a decrease of 80.6%[6] - The company’s non-current assets in China were valued at HKD 96,698,000 in 2023, significantly higher than HKD 2,610,000 in 2024, indicating a strategic shift in asset allocation[21] - Trade payables decreased to HKD 7,304,000 in 2024 from HKD 9,914,000 in 2023, indicating improved cash flow management[25] - The company's cash and cash equivalents decreased to HKD 26,948,000 from HKD 33,510,000, a decline of 19.6%[6] - The group's cash and bank balances as of December 31, 2024, were HKD 26,900,000, down from HKD 33,500,000 in 2023, with no bank loans compared to HKD 53,800,000 in the previous year[49] - As of December 31, 2024, the company had no mortgaged assets, compared to approximately HKD 70,450,000 in mortgaged properties as of December 31, 2023[63] Dividends and Reserves - The company approved and distributed a special dividend of HKD 0.0751 per ordinary share for the year, compared to zero for the previous year[29] - The total reserves available for distribution to shareholders as of December 31, 2024, amounted to HKD 32,023,000, down from HKD 68,143,000 in the previous year[36] - The company did not recommend any final dividend for the year ending December 31, 2024, consistent with the previous year[75] - A special dividend of HKD 0.0751 per share was approved and paid during the year, with no dividends declared in the previous year[76] Strategic Focus and Market Development - The company is adjusting its business strategy to focus on developing overseas markets, particularly in the Middle East and Japan, in response to declining demand in the Chinese furniture market[42] - The company has successfully increased sales in Japan during the review period[42] - The company plans to enhance research and development and promote new products through exhibitions, focusing on overseas markets, particularly in Asia, Europe, and the United States[66] Financial Ratios and Management - The current ratio as of December 31, 2024, was approximately 4.5, significantly improved from 1.2 in 2023, indicating enhanced liquidity[49] - The group has maintained a debt-to-equity ratio of approximately 0.3 as of December 31, 2024, down from 0.7 in the previous year, reflecting a stronger financial position[49] - The company’s capital management strategy aims to ensure sustainability and maximize returns to shareholders through maintaining a robust capital ratio[37] Compliance and Risk Management - The group has complied with all relevant laws and regulations in both mainland China and Hong Kong, with no significant violations reported[52] - The management continuously monitors foreign exchange risks and considers hedging strategies when necessary, although the current foreign exchange risk is deemed minimal[56] - The group faces various operational risks, which are managed through established procedures and regular assessments by senior management[59] Corporate Governance - The company emphasizes the importance of corporate governance and has adhered to the corporate governance code as per the listing rules[68] - The company has not engaged in any purchase, sale, or redemption of its listed securities during the year[77] Other Information - The company sold its subsidiary, Success Profit International Limited, for a total consideration of HKD 62,000,000, resulting in a net cash inflow of HKD 51,232,000 after related costs and cash balances were deducted[39][40] - The subsidiary contributed revenue of HKD 11,718,000 and a net loss of HKD 1,622,000 for the year ended December 31, 2024[41] - The company recorded a total sale gain of approximately HKD 13,900,000 after accounting for the exchange reserve of approximately HKD 9,600,000 from the sale of its wholly-owned subsidiary Success Profit International Limited[64] - There were no significant events after the reporting period[78] - The company had no significant capital commitments or contingent liabilities as of December 31, 2024, compared to HKD 88,279,000 as of December 31, 2023[65]

Financial Performance - The company reported a revenue of HKD 61,530,000 for the six months ended June 30, 2024, representing an increase of 66.5% compared to HKD 36,992,000 in the same period of 2023[2]. - Gross profit decreased to HKD 9,145,000, down 14.8% from HKD 10,720,000 year-on-year[2]. - Operating profit for the period was HKD 2,699,000, a decline of 18.9% from HKD 3,327,000 in the previous year[2]. - The net profit attributable to equity holders of the company was HKD 1,060,000, an increase of 38.4% compared to HKD 766,000 in the same period last year[2]. - The total comprehensive income for the period was HKD 1,009,000, significantly higher than HKD 370,000 in the previous year[3]. - Revenue from external customers for the six months ended June 30, 2024, was HKD 61,530,000, a significant increase from HKD 36,992,000 in the same period of 2023, representing a growth of 66.5%[12]. - Revenue from Asia (excluding China) reached HKD 41,274,000, up from HKD 12,925,000, marking a growth of 219.5%[12]. - The pre-tax profit for the six months ended June 30, 2024, was HKD 1,060,000, compared to HKD 766,000 for the same period in 2023, indicating a year-on-year increase of 38.4%[18]. - Basic earnings per share for the six months ended June 30, 2024, were HKD 1.31, up from HKD 0.95 in the same period of 2023, reflecting a growth of 37.9%[18]. Assets and Liabilities - The company’s total assets decreased slightly to HKD 108,373,000 as of June 30, 2024, from HKD 109,650,000 at the end of 2023[4]. - The company’s total assets in China were valued at HKD 92,816,000 as of June 30, 2024, down from HKD 96,698,000 as of December 31, 2023[13]. - Trade receivables, net of loss provisions, amounted to HKD 21,663,000 as of June 30, 2024, compared to HKD 25,529,000 as of December 31, 2023, indicating a decrease of 15.5%[22]. - Trade and bills payables totaled HKD 7,903,000 as of June 30, 2024, down from HKD 9,914,000 as of December 31, 2023, reflecting a decrease of 20.3%[24]. - As of June 30, 2024, the outstanding bank loans amount to HKD 54,762,000, a slight increase from HKD 53,828,000 at the beginning of the period[25]. - The company’s total liabilities included finance costs of HKD 1,602,000 for the six months ended June 30, 2024, compared to HKD 2,560,000 in the same period of 2023[15]. Cash Flow - Cash and cash equivalents increased to HKD 38,929,000 at the end of the reporting period, up from HKD 35,133,000 at the end of the previous year[6]. - The company generated a net cash inflow from operating activities of HKD 6,456,000, compared to HKD 6,690,000 in the same period last year[6]. - As of June 30, 2024, the company held cash and bank balances of HKD 38,900,000, an increase from HKD 33,500,000 as of December 31, 2023[41]. - The company has provided guarantees for bank financing of HKD 88,279,000 as of June 30, 2024, with HKD 54,762,000 drawn down[31]. Dividends - The company did not declare any dividends for the reporting period[2]. - The company did not declare an interim dividend for the six months ended June 30, 2024, similar to the previous year, but proposed a special dividend of HKD 0.0751 per share[18]. - The board proposed a special dividend of HKD 0.0751 per share, which was approved at a special general meeting on August 16, 2024[47]. Management and Governance - The company has adhered to the corporate governance code, with the exception of the separation of roles between the Chairman and CEO, which are held by the same individual, Mr. Song Kaiqing[50]. - The Audit Committee, consisting of three independent non-executive directors, has reviewed the unaudited interim financial statements for the six months ending June 30, 2024[52]. - The company has established a Remuneration Committee to recommend policies regarding the remuneration of all directors and senior management, comprising three independent non-executive directors[53]. - The Nomination Committee has been formed to provide recommendations on the appointment and succession planning of directors, consisting of five members[54]. - The interim financial results have been reviewed by the Audit Committee but remain unaudited[55]. - The board includes two executive directors and three independent non-executive directors, ensuring a diverse governance structure[58]. Strategic Focus - The company has successfully increased sales in Japan during the review period, indicating a strategic focus on overseas markets[34]. - The company plans to enhance research and development and promote new products through exhibitions to adapt to market trends[40]. - The company has suspended its higher-margin promotional business as of March 2024, focusing instead on expanding its export sales[36]. - The company has no significant investments, acquisitions, or disposals of subsidiaries or joint ventures other than the sale of Success Profit International Limited for HKD 62,000,000[44]. Other Financial Information - The total tax losses accumulated as of June 30, 2024, amounted to HKD 70,274,000, slightly increasing from HKD 69,345,000 as of June 30, 2023[17]. - The company reported a net loss from foreign exchange of HKD 287,000 for the six months ended June 30, 2024, compared to a loss of HKD 3,213,000 in the same period of 2023, showing an improvement[15]. - The total net book value of properties and land use rights as of June 30, 2024, is HKD 19,833,000, a decrease from HKD 22,127,000 at the beginning of the period, with depreciation totaling HKD 1,978,000[21]. - The aging analysis of trade receivables shows that HKD 20,372,000 is within 3 months, up from HKD 12,598,000 in the previous year, representing a significant increase of 61.5%[23]. - The total remuneration for key management personnel for the six months ended June 30, 2024, is HKD 1,304,000, a decrease from HKD 1,349,000 in the previous year[32]. - The company has capital commitments of HKD 107,000 for the acquisition of properties, plants, and equipment as of June 30, 2024[30]. - The company has not applied any new accounting standards or interpretations that have not yet come into effect during the accounting period[2].

Financial Performance - The group's revenue decreased by 6.2% year-on-year to HKD 94,200,000 for the year ended December 31, 2023, compared to HKD 100,400,000 for the year ended December 31, 2022[2]. - The net loss for the year ended December 31, 2023, was HKD 11,500,000, an improvement from a net loss of HKD 26,800,000 for the previous year[23]. - The company's revenue for the fiscal year ending December 31, 2023, was HKD 94,213,000, a decrease from HKD 100,387,000 in 2022, representing a decline of approximately 2.2%[161]. - The gross profit margin for the company decreased to 23.8% in 2023 from 24.2% in 2022, primarily due to the clearance of outdated inventory[166]. - The company reported a net loss of HKD 11,456,000 for the fiscal year 2023, compared to a net loss of HKD 26,796,000 in 2022, indicating an improvement in financial performance[161]. - Operating loss for the year was HKD 7,066,000, a significant reduction from the operating loss of HKD 21,513,000 in the previous year[161]. Expenses and Cost Management - Sales and distribution expenses increased to approximately HKD 7,700,000 for the year ended December 31, 2023, up from HKD 4,500,000 in the previous year, primarily due to heightened marketing activities following the relaxation of pandemic measures[21]. - For the year ended December 31, 2023, the group's administrative expenses were approximately HKD 22,400,000, a decrease from HKD 42,100,000 for the year ended December 31, 2022, primarily due to asset impairment and reduced foreign exchange losses[37]. - As of December 31, 2023, the group employed approximately 130 employees, with total employee costs around HKD 15,800,000, down from HKD 16,800,000 in 2022[38]. Cash Flow and Financial Position - The group faces risks related to cash flow management, ensuring sufficient cash and cash equivalents to support operations and mitigate cash flow volatility[16]. - As of December 31, 2023, the group's bank loans amounted to HKD 53,800,000, a decrease from HKD 70,900,000 in 2022, with a debt-to-equity ratio of approximately 0.7 compared to 0.9 in the previous year[42]. - The current ratio as of December 31, 2023, was approximately 1.2, unchanged from 2022, while net current assets decreased to HKD 12,100,000 from HKD 16,200,000[42]. - The group held cash and bank balances of HKD 33,500,000 as of December 31, 2023, down from HKD 38,100,000 in 2022[52]. - The company reported a significant decline in net current assets, which fell to HKD 12,075,000 in 2023 from HKD 16,171,000 in 2022, a decrease of approximately 25.9%[173]. Market Environment and Strategic Initiatives - Despite the easing of pandemic restrictions, the overall operating environment remains challenging, with a noted decline in demand for professional services in the second half of 2023[9]. - Ongoing economic factors, including US-China trade tensions and rising global interest rates, have negatively impacted consumer demand and, consequently, the demand for the group's products[19]. - The group anticipates that the economic recovery in mainland China and the countries where its customers are located will continue, although the outlook remains highly uncertain due to high market interest rates and geopolitical factors[55]. - The company plans to continuously evaluate its business strategies to streamline operations and enhance overall performance and outlook[163]. - The company is focusing on enhancing its product offerings and exploring market expansion opportunities[174]. - Future outlook includes strategic initiatives aimed at improving financial performance and operational efficiency[174]. Corporate Governance and Compliance - The board consists of five members, including one female director and three independent non-executive directors, reflecting a diverse composition[65]. - The company has adopted a board diversity policy effective from May 16, 2014, aiming for diversity based on various factors including gender, age, and professional experience[73]. - The board is responsible for reviewing the company's compliance with corporate governance codes and regulatory requirements[80]. - The company has complied with the Securities and Futures Ordinance and listing rules, ensuring timely public disclosure of inside information while maintaining confidentiality[117]. - The audit committee reviewed the group's accounting policies and internal control systems, affirming their effectiveness[90]. Risk Management and Internal Controls - The internal audit department is responsible for establishing the internal control framework and conducting regular independent checks to identify risks[126]. - The board will continue to review the effectiveness of the internal control systems and risk management policies[127]. - The board and audit committee will regularly review the anti-corruption policy to ensure its effectiveness[147]. - The company has adopted a whistleblowing policy to allow employees and relevant third parties to report any actions that may harm the company's interests[146]. Shareholder Engagement - The company held an annual general meeting in 2023, with all executive directors present, ensuring shareholder engagement and communication[129]. - The company is committed to enhancing communication and relationships with shareholders and investors, as evidenced by the review of engagement activities[119]. - The company has a dedicated website to facilitate effective communication with shareholders and the public[129].

Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 94,213,000, a decrease of 6.5% compared to HKD 100,387,000 in 2022[5] - Gross profit for the same period was HKD 22,405,000, down 7.8% from HKD 24,297,000 in the previous year[5] - Operating loss decreased to HKD 7,066,000 from HKD 21,513,000, representing a 67.2% improvement year-over-year[5] - The net loss for the year was HKD 11,456,000, significantly reduced from HKD 26,796,000 in 2022, marking a 57.3% decrease[5] - The company reported a total comprehensive loss of HKD 11,558,000 for the year, compared to HKD 28,680,000 in 2022, indicating a 59.7% improvement[7] - Pre-tax loss for 2023 was HKD 11,456,000, an improvement from a loss of HKD 26,796,000 in 2022, indicating a reduction of 57.3%[24] - Basic loss per share for 2023 was HKD 0.0142, compared to HKD 0.0331 in 2022, showing a decrease of 57.3%[25] - The loss attributable to equity holders for the year ended December 31, 2023, was approximately HKD 11.5 million, compared to a loss of HKD 26.8 million in the previous year, indicating an improvement in financial performance[51] Revenue Breakdown - Total revenue for 2023 was HKD 94,213,000, a decrease of 6.5% from HKD 100,387,000 in 2022[19] - Sales of goods amounted to HKD 83,109,000 in 2023, down from HKD 88,775,000 in 2022, representing a decline of 6.5%[19] - Service income decreased slightly to HKD 11,104,000 in 2023 from HKD 11,612,000 in 2022, a reduction of 4.4%[19] - Other income netted HKD 548,000 in 2023, down from HKD 805,000 in 2022, reflecting a decrease of 31.9%[20] - Revenue from external customers in Asia (excluding China) was HKD 45,352,000 in 2023, down from HKD 49,436,000 in 2022, a decline of 8.4%[29] - Revenue from China was HKD 11,409,000 in 2023, a decrease from HKD 12,246,000 in 2022, representing a decline of 6.8%[29] Assets and Liabilities - Total assets decreased to HKD 184,270,000 from HKD 227,163,000, a decline of 19.0%[9] - Current liabilities were reduced to HKD 72,620,000 from HKD 97,081,000, a decrease of 25.2%[9] - The company's cash and cash equivalents stood at HKD 33,510,000, down from HKD 38,050,000, reflecting a 11.5% decline[9] - The company's equity decreased to HKD 107,173,000 from HKD 118,731,000, a reduction of 9.7%[9] - Trade receivables amounted to HKD 33,021,000 in 2023, with a provision for losses of HKD 11,464,000, resulting in a net receivable of HKD 21,557,000[31] - Trade payables decreased from HKD 10,346,000 in 2022 to HKD 9,914,000 in 2023, indicating a reduction in outstanding obligations[34] - The expected recoverable amount of deposits and prepayments within one year is HKD 1,073,000 in 2023, slightly down from HKD 1,086,000 in 2022[31] Cash Flow and Financing - As of December 31, 2023, the group held cash and bank balances of HKD 33.5 million, down from HKD 38.1 million in the previous year, while bank loans decreased to HKD 53.8 million from HKD 70.9 million[53] - The group's debt-to-equity ratio improved to approximately 0.7 as of December 31, 2023, compared to 0.9 in the previous year, reflecting a stronger financial position[53] - The current ratio remained stable at approximately 1.2 as of December 31, 2023, consistent with the previous year, while net current assets decreased to HKD 12.1 million from HKD 16.2 million[55] - As of December 31, 2023, the company has contingent liabilities amounting to HKD 88,279,000 related to bank financing guarantees for a subsidiary, a slight decrease from HKD 89,559,000 in 2022[74] - The company utilized HKD 53,828,000 of the aforementioned financing as of December 31, 2023, down from HKD 70,886,000 in 2022[74] Operational Focus and Strategy - The company continues to focus on the design, manufacturing, and marketing of residential furniture, including wooden furniture, sofas, and mattresses[18] - The overall strategy of the company remained unchanged during the year[43] - The group continues to promote green measures and environmental awareness in its operations, aiming to enhance sustainability through various initiatives[57] - The management actively monitors market risks, including currency and interest rate risks, to mitigate potential impacts on profitability[62][65] - The group maintains a focus on cash flow management to mitigate liquidity risks and ensure operational funding[66] Corporate Governance and Compliance - The company has complied with all corporate governance codes as per the listing rules, with the exception of the separation of roles between the Chairman and CEO[76][78] - The audit committee has reviewed the audited financial performance for the year ending December 31, 2023[83] - The company has complied with all relevant laws and regulations in both mainland China and Hong Kong, with no significant violations reported[58] Future Outlook - The economic outlook for 2024 remains uncertain due to high market interest rates and geopolitical factors, despite expectations of gradual recovery in mainland China and client countries[75] - The company emphasizes prudent capital management and liquidity risk management to maintain sufficient buffers against future challenges[75] Employee and Compensation - The group employed approximately 130 employees as of December 31, 2023, maintaining the same workforce level as the previous year[52] - The company has adopted an attractive compensation scheme and stock option plan to retain key personnel essential for achieving business objectives[69] Dividends - The company did not recommend any dividend payment for the year ending December 31, 2023, consistent with the previous year[37] - The company does not anticipate paying any final dividends for the year ending December 31, 2023, consistent with the previous year[84] Expenses - The group's administrative expenses for the year ended December 31, 2023, were approximately HKD 22.4 million, a decrease from HKD 42.1 million in the previous year, primarily due to a reduction in impairment provisions and foreign exchange losses[50] - Sales and distribution expenses increased to approximately HKD 7,700,000 in 2023 from HKD 4,500,000 in 2022, attributed to high levels of marketing activities following the lifting of pandemic measures[48] Customer Contributions - Major customers' revenue contributions showed a significant decline for Customer A from HKD 19,719,000 in 2022 to HKD 10,588,000 in 2023, a decrease of 46.5%[c]

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of HKD 36,992,000, a decrease of 35.5% compared to HKD 57,091,000 in the same period of 2022[5] - The gross profit for the same period was HKD 10,720,000, down 4.7% from HKD 11,251,000 year-on-year[5] - Operating profit for the first half of 2023 was HKD 3,327,000, a significant recovery from an operating loss of HKD 9,617,000 in the previous year[5] - The company achieved a profit before tax of HKD 767,000, compared to a loss before tax of HKD 12,463,000 in the prior year[5] - Net profit attributable to equity holders for the period was HKD 766,000, a turnaround from a loss of HKD 12,488,000 in the same period last year[5] - The total comprehensive income for the period was HKD 370,000, compared to a total comprehensive loss of HKD 13,775,000 in the previous year[6] - The company's pre-tax profit for the six months ended June 30, 2023, was HKD 766,000, a significant improvement from a loss of HKD 12,488,000 in the same period of 2022[26] - The group reported a profit attributable to equity holders of approximately HKD 800,000 for the six months ended June 30, 2023, compared to a loss of HKD 12.5 million for the same period last year[53] Revenue Breakdown - Revenue from external customers for the six months ended June 30, 2023, was HKD 36,992,000, a decrease of 35.5% compared to HKD 57,091,000 for the same period in 2022[19] - Revenue from the Asia region (excluding China) for the six months ended June 30, 2023, was HKD 12,925,000, a decline of 44.6% from HKD 23,460,000 in 2022[19] - Revenue from the United States for the same period was HKD 16,734,000, down 19.9% from HKD 20,796,000 in 2022[19] Cost and Expenses - The cost of sold inventory for the six months ended June 30, 2023, was HKD 26,272,000, down from HKD 45,840,000 in the previous year, reflecting a decrease of 42.7%[21] - Administrative expenses decreased to approximately HKD 5.5 million for the six months ended June 30, 2023, from HKD 19 million for the same period in 2022, mainly due to the absence of impairment charges related to business restructuring[52] - The company incurred financial expenses of HKD 2,560,000 for the six months ended June 30, 2023, compared to HKD 2,846,000 in the same period of 2022[21] Assets and Liabilities - As of June 30, 2023, total assets were HKD 122,664,000, slightly down from HKD 125,083,000 at the end of 2022[8] - The company's cash and cash equivalents at the end of the period were HKD 35,133,000, a decrease from HKD 38,050,000 at the beginning of the year[11] - The company reported a net cash inflow from operating activities of HKD 6,690,000, compared to an outflow of HKD 6,058,000 in the previous year[11] - The carrying amount of property, plant, and equipment decreased from HKD 93,214,000 as of June 30, 2022, to HKD 77,457,000 as of June 30, 2023, representing a decline of approximately 16.9%[31] - The carrying amount of right-of-use assets decreased from HKD 28,559,000 as of June 30, 2022, to HKD 24,150,000 as of June 30, 2023, a decrease of about 15.5%[33] - Trade receivables increased from HKD 22,116,000 as of December 31, 2022, to HKD 23,328,000 as of June 30, 2023, an increase of approximately 5.5%[35] - The total bank loans decreased from HKD 76,112,000 as of June 30, 2022, to HKD 63,505,000 as of June 30, 2023, a reduction of about 16.5%[38] Tax and Earnings - The total tax losses as of June 30, 2023, amounted to HKD 69,345,000, a decrease from HKD 77,757,000 as of June 30, 2022[24] - Basic earnings per share for the six months ended June 30, 2023, was HKD 0.00095, compared to a loss per share of HKD 0.0154 in the same period of 2022[26] - The company did not recognize deferred tax assets due to uncertainty regarding future taxable profits, with total tax losses expected to expire within five years amounting to HKD 26,821,000[24] Dividends - The company did not declare any dividends for the period[5] - No interim dividend was recommended for the six months ended June 30, 2023, consistent with the previous year[29] - The board did not recommend the payment of an interim dividend for the period ended June 30, 2023[61] Corporate Governance - The company has complied with the corporate governance code, with the exception of the separation of the roles of Chairman and CEO[71] - The audit committee consists of three members, including Mr. Jiang Xing Qi as the chairman, overseeing financial reporting and internal control systems[74] - The company has established a Compensation Committee with a written terms of reference that complies with corporate governance codes[75] - The Compensation Committee consists of three members, including Ms. Leung Yuen Man (Chair), Mr. Fung Kin Chung, and Mr. Cheung Hing Ki, all of whom are independent non-executive directors[75] - A Nomination Committee has been formed with a written terms of reference in accordance with corporate governance code section B.3.1[76] - The Nomination Committee comprises five members, including Mr. Fung Kin Chung (Chair), Mr. Song Kaiqing, Mr. Cheung Kong Cheung, Ms. Leung Yuen Man, and Mr. Cheung Hing Ki[76] Shareholder Information - The company has a total of 808,096,025 shares issued as of June 30, 2023[66] - Mr. Song Qi Qing holds 288,596,777 shares, representing 35.71% of the total equity[64] - King Right Holdings Limited, fully owned by Mr. Song, holds 258,906,777 shares, accounting for 32.04%[65] - Mr. Zhang Gang Zhang owns 62,040,465 shares, which is 7.68% of the total equity[64] - United Sino Limited, fully owned by Mr. Zhang, holds 54,840,465 shares, representing 6.79%[65] - The company has a stock option plan that allows for the issuance of up to 80,809,602 shares, equivalent to 10% of the issued share capital[70] - No stock options were granted under the stock option plan from May 17, 2019, to the reporting date[68] Employee Information - The group employed approximately 130 employees as of June 30, 2023, down from about 150 employees a year earlier[60] - The total remuneration for key management personnel increased from HKD 1,294,000 in the previous year to HKD 1,349,000 for the six months ended June 30, 2023, an increase of approximately 4.3%[45] Other Information - There were no significant events related to the company's business or financial performance after the reporting period[46] - The interim report for the year 2023 has been published on the Hong Kong Stock Exchange website and the company's website[78] - The accounting information in the interim report has not been audited but has been reviewed by the company's Audit Committee[77] - The company expresses gratitude to shareholders, customers, and business partners for their continued support[80] - The Chairman and CEO of the company is Mr. Song Kaiqing, who signed the report on August 25, 2023[81] - The management will continue to monitor the overall operational and financial performance of the group to adapt to the changing business environment[54]

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。 （於英屬處女群島註冊成立並遷冊至百慕達及於百慕達存續之有限公司） （股份代號：396） 截至二零二三年六月三十日止六個月之中期業績 中期業績 興利（香港）控股有限公司（「本公司」）董事會（各稱一位「董事」，統稱「董事會」） 謹此公佈本公司及其附屬公司（「本集團」）截至二零二三年六月三十日止六個月的 未經審核簡明綜合中期業績，連同二零二二年同期的比較數字。 ...

Financial Performance - The company's revenue for the year ended December 31, 2022, decreased by 42.6% to HKD 100,387,000 compared to HKD 175,010,000 in the previous year[9]. - The net loss for the year was HKD 26,796,000, a significant increase from the net loss of HKD 5,519,000 in the previous year[6][9]. - The gross profit for the year was HKD 24,297,000, slightly up from HKD 24,079,000 in the previous year, indicating a stable gross margin despite declining revenues[6]. - The group's revenue decreased by approximately 42.6% from about HKD 175 million for the year ended December 31, 2021, to about HKD 100.4 million for the year ended December 31, 2022[13]. - The gross profit margin increased to 24.2% for the year ended December 31, 2022, compared to 13.8% for the previous year, attributed to the introduction of higher-priced new products[14]. - The loss attributable to equity holders for the year ended December 31, 2022, was approximately HKD 26.8 million, compared to a loss of HKD 5.5 million in the previous year[19]. - The group reported no final dividend for the year ended December 31, 2022, compared to zero in the previous year[139]. Assets and Liabilities - Non-current assets decreased to HKD 108,911,000 from HKD 142,400,000 in the previous year, reflecting a reduction in property, plant, and equipment[7]. - Current assets also decreased to HKD 113,252,000 from HKD 145,952,000, indicating a tightening liquidity position[7]. - The total assets less current liabilities stood at HKD 125,082,000, down from HKD 156,847,000 in the previous year, reflecting a decline in financial stability[7]. - Cash and bank balances as of December 31, 2022, were HKD 38.1 million, down from HKD 46 million in the previous year[21]. - The bank loans as of December 31, 2022, amounted to HKD 70.9 million, a decrease from HKD 81.8 million in the previous year[21]. - The distributable reserves of the company as of December 31, 2022, were approximately HKD 68,000,000[152]. Operational Challenges - The company has been facing challenges due to the COVID-19 pandemic, including supply chain disruptions and currency depreciation affecting export trade[9][12]. - The company is continuously reassessing its business strategies to streamline operations and improve overall performance[9][12]. - The group faced liquidity risk due to insufficient funds or inability to liquidate assets, impacting its ability to meet obligations[35]. - The expected credit loss provision for trade receivables increased by HKD 5.5 million due to longer collection periods for certain customers[18]. Corporate Governance - The board emphasizes the importance of corporate governance and has adhered to the relevant listing rules throughout the fiscal year[49]. - The company has established a written terms of reference for the audit committee, which is responsible for reviewing and supervising the financial reporting process and internal control systems[73]. - All independent non-executive directors confirmed their independence according to the listing rules, ensuring compliance with governance standards[68]. - The company has adopted an anti-corruption policy to promote compliance with anti-corruption laws and guidelines, ensuring no tolerance for any form of corruption or fraud[115]. - The board of directors held four meetings during the fiscal year ending December 31, 2022, with attendance records showing full participation from most members[67]. Employee and Management Information - The company employed approximately 130 employees as of December 31, 2022, down from 160 employees in the previous year[20]. - The company is committed to providing attractive compensation packages to retain key personnel essential for achieving business objectives[39]. - The gender ratio of employees as of December 31, 2022, is 75:25, indicating a commitment to gender diversity within the workforce[66]. Future Outlook - The outlook for 2023 remains uncertain, influenced by inflation and geopolitical risks, with expectations of rising raw material costs and fluctuating consumer behavior[46]. - The group aims to maintain operational flexibility and discipline while adapting to changing consumer behaviors and market dynamics[46]. - The company will continue to monitor market conditions and adjust strategies as necessary to ensure sustainability[53]. Audit and Financial Reporting - The independent auditor's report confirms the financial statements present a true and fair view of the financial position[89]. - The company must ensure that the consolidated financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and reflect a true and fair view of the group's financial position as of December 31, 2022[183]. - The audit process involves identifying and assessing risks of material misstatement due to fraud or error, and designing audit procedures to address these risks[200]. - The auditor evaluates the appropriateness of accounting policies adopted by the directors and the reasonableness of accounting estimates and related disclosures[200]. Shareholder Information - The company has engaged in shareholder and investor communication activities, expressing satisfaction with the implementation and effectiveness of its communication policy[109]. - The company has a structured process for shareholders to submit inquiries in writing, ensuring transparency and responsiveness[109]. - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting[102]. - Shareholders with at least 5% of the paid-up capital can submit written requests to notify other shareholders of any proposed resolutions at the next general meeting[106].

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的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就本公佈全部或任何部 份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 （於英屬處女群島註冊成立並遷冊至百慕達及於百慕達存續之有限公司） （股份代號：396） 截至二零二二年十二月三十一日止年度 全年業績公佈 興利（香港）控股有限公司（「本公司」）董事會（「董事會」）僅此公佈本公司及其附 屬公司（「本集團」）截至二零二二年十二月三十一日止年度經審核綜合業績，連同 截至二零二一年十二月三十一日止年度同期的比較數字。 本集團業績已經由本公司審核委員會及董事會審閱。 ...

Financial Performance - The company reported a revenue of HKD 57,091,000 for the six months ended June 30, 2022, a decrease of 34.4% compared to HKD 87,041,000 in the same period of 2021[4]. - Gross profit for the same period was HKD 11,251,000, slightly down from HKD 11,486,000, reflecting a gross margin of approximately 19.7%[4]. - The operating loss for the six months was HKD 9,617,000, compared to an operating profit of HKD 4,029,000 in the previous year[4]. - The net loss attributable to equity holders was HKD 12,488,000, compared to a profit of HKD 1,033,000 in the prior year[4]. - The company reported a total comprehensive loss of HKD 13,775,000 for the period, compared to a comprehensive income of HKD 1,040,000 in the same period last year[5]. - Revenue from Asia (excluding China) was HKD 23,460,000, down 62.8% from HKD 63,103,000 in the previous year[17]. - Revenue from the United States increased significantly to HKD 20,796,000, up 111.5% from HKD 9,804,000 in the previous year[17]. - The company reported a basic loss per share of HKD 0.0154 for the six months ended June 30, 2022, compared to earnings per share of HKD 0.0013 for the same period in 2021[24]. - The group reported a loss attributable to equity shareholders of approximately HKD 12,500,000 for the six months ended June 30, 2022, compared to a profit of HKD 1,000,000 for the same period in 2021[49]. Cash Flow and Assets - Cash and cash equivalents decreased to HKD 35,752,000 from HKD 45,974,000 at the end of the previous year, reflecting a net cash outflow of HKD 9,939,000[10]. - Total assets decreased to HKD 134,014,000 from HKD 145,952,000, while total liabilities decreased to HKD 114,686,000 from HKD 131,505,000[7]. - The company’s equity attributable to shareholders decreased to HKD 133,636,000 from HKD 147,411,000[7]. - The company’s non-current assets in China were valued at HKD 121,770,000 as of June 30, 2022, down from HKD 142,392,000 as of December 31, 2021[18]. - As of June 30, 2022, the net book value of properties, plants, and equipment decreased to HKD 93,214,000 from HKD 110,585,000 at the beginning of the year, reflecting a decline of approximately 15.7%[27]. - Trade receivables as of June 30, 2022, amounted to HKD 31,062,000, down from HKD 37,916,000 at the end of 2021, representing a decrease of about 18.2%[31]. - The company reported a total of HKD 55,359,000 in trade and other receivables as of June 30, 2022, compared to HKD 54,246,000 at the end of 2021, indicating a slight increase of approximately 2.0%[31]. - Bank loans decreased to HKD 76,112,000 as of June 30, 2022, from HKD 81,776,000 at the beginning of the year, a reduction of about 7.5%[34]. Expenses and Liabilities - The company experienced a significant increase in administrative expenses, rising to HKD 18,958,000 from HKD 6,835,000 year-on-year[4]. - The cost of goods sold was HKD 45,840,000, down 39.4% from HKD 75,555,000 in the previous year[19]. - The company’s financial expenses for the period included interest on borrowings of HKD 2,501,000, a slight decrease from HKD 2,557,000 in the previous year[19]. - The company had no outstanding share options as of June 30, 2022, consistent with the previous year[36]. - The total remuneration for key management personnel for the six months ended June 30, 2022, was HKD 1,294,000, a decrease from HKD 1,679,000 in the same period of the previous year, reflecting a decline of approximately 22.9%[41]. Corporate Governance - The company has complied with the corporate governance code, with some deviations noted[68]. - The roles of the chairman and CEO are held by the same individual, Mr. Song Kaiqing, to provide strong leadership[69]. - The audit committee consists of three members, including Mr. Jiang Xingqi as the chairman, overseeing financial reporting and internal control systems[71]. - The company has established a Compensation Committee with a written terms of reference that complies with corporate governance codes[72]. - The Compensation Committee consists of three members, including Ms. Leung Yuen Man (Chair), Mr. Fung Kin Chung, and Mr. Cheung Hing Kei, all of whom are independent non-executive directors[72]. - The company has formed a Nomination Committee with a written terms of reference that aligns with corporate governance code section B.3.1[74]. - The Nomination Committee has five members, chaired by Mr. Fung Kin Chung, and includes Mr. Song Kaiqing, Mr. Cheung Kong Cheung, Ms. Leung Yuen Man, and Mr. Cheung Hing Kei[74]. Shareholder Information - As of June 30, 2022, the company had a total of 808,096,025 shares issued[63]. - Mr. Song Kaiqing holds 288,596,777 shares, representing approximately 35.71% of the company's equity[63]. - Mr. Zhang Gangzhang holds 62,040,465 shares, representing approximately 7.68% of the company's equity[63]. - King Right Holdings Limited, owned by Mr. Song, holds 258,906,777 shares, representing approximately 32.04% of the company's equity[64]. - United Sino Limited, owned by Mr. Zhang, holds 54,840,465 shares, representing approximately 6.79% of the company's equity[64]. Future Outlook - The group remains cautiously optimistic about future recovery despite challenges from the pandemic and market fluctuations[50]. - The group continues to monitor foreign exchange risks and may consider hedging strategies as needed[53].