智通财经APP获悉，截止5月2日收盘，有46只股票创52周新高，其中梧桐国际(00613)、闽港控股 (00181)、福田实业(00420)创高率位于前3位，分别为51.52%、15.79%、15.28%。 52周新低排行 | 股票名称 | | 收盘价 | 最低价 | | 创低率 | | --- | --- | --- | --- | --- | --- | | 鼎石资本(00804) | 0.118 | | 0.100 | -43.82% | | | 亚洲电视控股(00707) | 0.044 | | 0.040 | -36.51% | | | 惠陶集团(08238) | 0.124 | | 0.124 | -16.78% | | | 中盈盛达融资担保 | 0.245 | | 0.232 | -9.02% | | | (01543) | | | | | | | 信铭生命科技(00474) | 0.025 | | 0.023 | -8.00% | | | 立桥证券控股(08350) | 0.117 | | 0.111 | -7.50% | | | 柠萌影视(09857) | 2.350 | | 2.130 | ...

Company Operations - Fountain Set Group operates 8 production facilities across China, Sri Lanka, and Indonesia, employing nearly 5,500 staff globally[3]. - The company has a strong global marketing presence with offices in 3 countries[3]. - The company has established trading offices in major cities including Hong Kong, Shanghai, and Ho Chi Minh City to support its sales operations[17]. - The company is committed to expanding its market reach through innovative product development and strategic partnerships[3]. - Future growth strategies may include further market expansion and potential acquisitions to enhance operational efficiency[3]. Financial Performance - Revenue for 2024 was HK$4,426.6 million, a slight decrease from HK$4,440.2 million in 2023, representing a decline of 0.3%[19]. - Profit attributable to owners of the Company dropped to HK$14.3 million in 2024 from HK$50.9 million in 2023, reflecting a decrease of 72.1%[19]. - Profit margin decreased to 0.3% in 2024 compared to 1.1% in 2023[19]. - Basic and diluted earnings per share fell to 1.2 HK cents in 2024 from 4.2 HK cents in 2023, a decline of 71.4%[19]. - Proposed final dividend per share decreased to 1.16 HK cents in 2024 from 3.00 HK cents in 2023, with a dividend payout ratio of 100%[19]. - Total assets decreased to HK$4,614.6 million in 2024 from HK$4,900.8 million in 2023, a decline of 5.8%[19]. - Net current assets decreased to HK$2,123.3 million in 2024 from HK$2,203.5 million in 2023, a decline of 3.6%[19]. - Capital expenditure increased significantly to HK$174.7 million in 2024 from HK$87.9 million in 2023, an increase of 98.4%[19]. - Return on equity decreased to 1.0% in 2024 from 2.0% in 2023[19]. - The Group achieved a core business profit of HK$14 million in 2024, recovering from a core business loss of approximately HK$208 million in 2023, excluding a one-off disposal gain of HK$259 million[72]. - The gross profit margin improved significantly from 7.3% in 2023 to 12.0% in 2024[72]. - The Group's profitability improved significantly in 2024 due to increased order volume from strategic clients and optimized production processes, leading to a noticeable decrease in unit production costs[118]. Sustainability and Certifications - The company received the Global Recycled Standard 4.0 (GRS 4.0) certification from Intertek Testing Services NA, Inc. and Tianxiang Testing Services Co., Ltd.[42]. - The company achieved the Organic Content Standard (OCS 3.0) certification from ECOCERT GREENLIFE S.A.S.[43]. - The company was awarded the Global Organic Textile Standard (GOTS 6.0) certification by ECOCERT GREENLIFE S.A.S.[44]. - The company holds multiple Oeko-Tex Standard 100 certificates issued by TESTEX AG, Swiss Textile Testing Institute, indicating compliance with safety and environmental standards[44]. - The company has received the Low-carbon Manufacturing Plan (Golden Label) certification from the World Wide Fund for Nature[53]. - The company is a certified partner in the Higg Index Facility Environmental Module, demonstrating commitment to sustainability practices[56]. - The company has been recognized as a Water-saving Benchmark Enterprise in Guangdong Province, highlighting its efficiency in water usage[53]. - The establishment of the "Sustainability Development and Enhancement Committee" in 2016 has driven the Group's sustainability objectives and goals[83]. - The 2024 ESG report will be exclusively uploaded on the official websites, reflecting the Group's commitment to sustainability and responsible practices[82]. - Continuous investment in advanced technology is planned to maintain high environmental standards[91]. - The project aims to phase out 28 remaining coal-fired heaters to significantly reduce harmful emissions, contributing to cleaner air[88]. - The adoption of natural gas as a cleaner alternative is expected to minimize carbon footprints and improve ecological conditions[90]. - The company emphasizes the importance of educational initiatives for staff to raise awareness and competence regarding environmental protection[93]. Market Dynamics and Challenges - The textile and apparel industry faced challenges such as sluggish global economic growth and escalating geopolitical risks, impacting overall demand and supply chain integration[117]. - Consumer demand in the apparel industry has shifted towards personalization, functionality, and value for money, with a preference for smaller batches and diverse product varieties[120]. - The textile and apparel industry faces challenges including supply chain restructuring and increased uncertainty in international trade dynamics[200]. - The Group is focusing on international investment projects to expand production capacity and mitigate geographical risks, aiming to optimize supply chain efficiency and reduce costs[198]. - The Group is committed to achieving strategic development goals aligned with China's 14th Five-Year Plan, emphasizing the need for transformation and upgrading in a competitive landscape[199]. Corporate Governance and Leadership - The founder and honorary chairman, Mr. HA Chung Fong, remains a substantial shareholder of the company[4]. - The leadership of the Board of Directors and all staff members were acknowledged for their contributions to the Group's recovery and improved performance[72]. - The Group maintained a consistently low debt ratio and robust cash flow, ensuring operational stability amidst market volatility[80]. - The Group is actively negotiating land resumption deals to adjust production capacity and stabilize operations in light of new market dynamics[125]. Employee and Workforce Management - The Group had approximately 5,500 full-time employees as of December 31, 2024, down from 5,800 in 2023, indicating a reduction in workforce[188].

Financial Performance - For the year ended December 31, 2024, the company's profit before income tax expense increased to HK$77.06 million, compared to a loss of HK$147.88 million in 2023 after excluding a one-time gain from land acquisition[5]. - Revenue for 2024 was HK$4,426.56 million, slightly down from HK$4,440.24 million in 2023, while gross profit rose significantly to HK$529.41 million from HK$321.99 million, resulting in a gross margin increase from 7.30% to 12.00%[6]. - The total comprehensive income for the year was HK$23.86 million, down from HK$63.71 million in 2023, primarily due to increased foreign exchange losses[8]. - Basic and diluted earnings per share for 2024 were HK$1.20, a decrease from HK$4.20 in 2023, which included a one-time gain[6]. - Earnings attributable to owners of the Company for 2024 decreased to HK$14,262,000 from HK$50,903,000 in 2023, representing a decline of approximately 72%[80]. - The Group's net profit attributable to shareholders for the year ended December 31, 2024, was approximately HK$14,262,000, a decrease of 72% from HK$50,903,000 in 2023, with a corresponding profit margin of 0.3% compared to 1.1% in 2023[142]. Dividends - The company plans to pay a final dividend of HK$1.16 per share, with a payout ratio of 100%, compared to HK$3.00 per share and a 71.43% payout ratio in 2023[5]. - A final dividend of HK1.16 cents per share has been proposed for the year ended 31 December 2024, with a payout ratio of 100%[184]. - The Group will also distribute a special dividend of HK4.34 cents per share in celebration of its 55th anniversary, pending shareholder approval[184]. - The company aims to maintain a similar payout ratio to provide substantial returns to shareholders in the coming years[189]. Cost Management - Selling and administrative expenses decreased from 13.00% to 11.60% of revenue, reflecting effective cost control measures[5]. - Finance costs decreased significantly from HK$26,258,000 in 2023 to HK$13,126,000 in 2024, indicating improved financial management[59]. - Overall cost of sales decreased by approximately HK$220,000,000, representing a reduction of 5%, from HK$4,118,246,000 in 2023 to HK$3,897,147,000 in 2024[123][122]. Assets and Liabilities - The company's cash and short-term bank deposits totaled HK$1,295.48 million as of December 31, 2024, compared to HK$1,379.00 million in 2023, with net cash per share increasing to HK$1.02 from HK$0.96[5]. - The company reported a decrease in bank borrowings due within one year to HK$48.80 million from HK$108.47 million in 2023, indicating improved liquidity management[10]. - Non-current liabilities decreased significantly from HK$266,882,000 in 2023 to HK$185,856,000 in 2024, representing a reduction of approximately 30.4%[11]. - The total assets less current liabilities stood at HK$3,641.63 million as of December 31, 2024, compared to HK$3,735.55 million in 2023[10]. - The Group's total assets amounted to approximately HK$4,614,618,000, down from HK$4,900,839,000 in 2023, indicating a decrease of about 5.8%[149]. Operational Efficiency - The Group's profitability improved in 2024 due to increased order volumes from strategic clients and optimized production processes, leading to a decrease in unit production costs[89]. - The Group implemented refined management and technological upgrades in production, contributing to improved operational efficiency[89]. - The Group's production capacity at Yancheng Fuhui Textiles Limited was stabilized, and fabric production capacity at Jiangyin Fuhui was proactively reduced in response to market dynamics[96]. - A comprehensive quality control system was instituted in fabric production, leading to significant customer acclaim and recognition, including awards from Victoria's Secret & Co. and NEXT brand[97]. Market Conditions - The textile and apparel sector faced declining factory prices, intensifying price competition amid evolving consumer demand for personalization and quality[91]. - The Group experienced a positive recovery in the US and Japan markets, with key clients actively replenishing inventories, contrasting with weaker domestic sales in China[90]. - The textile and apparel industry is facing challenges due to supply chain restructuring and increased tariffs, but opportunities arise from emerging markets and domestic economic recovery[166]. Future Outlook - The Group is focusing on international investment projects to expand production capacity and mitigate geographical risks, aiming to enhance its global footprint and operational resilience[164]. - The Group's long-term strategic plans aim to deliver superior returns and benefits for shareholders, customers, employees, and society[171]. - The Group plans to enhance its international investment projects in 2024 to expand knitted fabric production capacity and mitigate geographical risks[166]. Compliance and Governance - The independent auditor's report for both years was unqualified, indicating no significant issues with the financial statements[15]. - The company has established an audit committee comprising three independent non-executive directors to oversee financial reporting and risk management[193]. - The audit committee reviewed the audited consolidated final results and internal control systems for the year ended December 31, 2024[193].

Financial Performance - Revenue for the six months ended June 30, 2024, was HK$2,219,366,000, a slight increase from HK$2,193,867,000 in the same period of 2023, representing a growth of 1.2%[11] - Gross profit for the period was HK$244,814,000, compared to HK$171,339,000 in 2023, indicating a significant increase of 42.7%[11] - Profit for the period attributable to non-controlling interests was HK$14,149,000, a substantial increase from HK$7,080,000 in the previous year, reflecting an increase of 99.5%[11] - The company reported a profit before income tax expense of HK$25,833,000, compared to a loss of HK$43,136,000 in the same period last year, marking a turnaround[11] - The profit for the period ended June 30, 2024, was HK$4,243,000, a significant improvement from a loss of HK$74,527,000 in the same period of 2023[12] - Total comprehensive income for the period was HK$1,006,000, compared to a total comprehensive expense of HK$82,872,000 in the prior year[12] - The loss per share for the period was HK$0.8, an improvement from HK$6.7 in the previous year[11] - The loss attributable to owners of the Company for the six months ended 30 June 2024 was HK$9,906,000, a significant improvement compared to HK$81,607,000 for the same period in 2023, representing a reduction of approximately 87.87%[58] Expenses and Costs - Total administrative expenses decreased to HK$197,065,000 from HK$202,294,000, showing a reduction of 2.3%[11] - Finance costs were reduced to HK$8,014,000 from HK$13,711,000, representing a decrease of 41.5%[11] - Administrative and financing costs decreased by a total of 5.1% compared to the same period last year[94] - Total cost of sales decreased by HK$50 million, a 2.4% decline compared to the same period last year[94] - Distribution and selling expenses increased to approximately HK$53,494,000, representing 2.4% of total revenue, up from 1.7% in the same period last year[127] Assets and Liabilities - Current assets totaled HK$3,227,204,000, a decrease from HK$3,368,807,000 at the end of 2023[13] - Net current assets decreased to HK$2,132,293,000 from HK$2,203,516,000, a decline of approximately 3.2%[14] - Total equity attributable to owners of the Company was HK$3,219,097,000, down from HK$3,268,346,000[14] - The total assets less current liabilities amounted to HK$3,604,871,000, down from HK$3,735,548,000[14] - The Group's total assets as of June 30, 2024, were approximately HK$4,699,782,000, down from HK$4,900,839,000 as of December 31, 2023[140] Cash Flow and Financing - For the six months ended June 30, 2024, net cash used in operating activities was HK$62,541, compared to a net cash generated of HK$32,856 in the same period of 2023[18] - The company reported a net decrease in cash and cash equivalents of HK$263,453 for the six months ended June 30, 2024, compared to HK$110,136 in the prior year[18] - New bank borrowings raised during the period were HK$34,012, significantly lower than HK$172,357 in the same period of 2023[18] - The average effective interest rate on bank borrowings increased to 6.36% as of June 30, 2024, compared to 5.99% at the end of 2023[73] - Total repayments of bank borrowings amounted to HK$178,458,000, down 32.2% from HK$263,119,000 in the prior year[73] Market and Operational Insights - The Group's revenue and profit analysis is segmented by geographical areas, including Hong Kong, PRC, Taiwan, Korea, Sri Lanka, America, Europe, and Others[33] - The Group's operations are segmented into distinct geographical areas, with "Others" aggregating various locations including Bangladesh, Vietnam, Singapore, and Macau[33] - The Group has streamlined the production team at Jiangyin Fuhui to adapt to reduced production volume[32] - The Group implemented strategies to expand into new markets and customer segments, leading to a gradual recovery in demand[93] - The Group ceased fabric dyeing and finishing operations of Jiangyin Fuhui Textiles Limited while increasing capacity at other subsidiaries to enhance order allocation[94] Sustainability and Certifications - The company received multiple certifications in 1H2024, including U.S. Cotton Trust Protocol® membership for several subsidiaries, enhancing its sustainability credentials[104] - The Global Organic Textile Standard (GOTS) Version 6.0 certification was obtained in January 2024, indicating compliance with organic textile production standards[104] - The company achieved a two-star green factory award in January 2024, recognizing its commitment to environmental sustainability[106] - The company is focused on continuous improvement in sustainability practices, as evidenced by multiple certifications from recognized organizations[106] Economic Outlook - The global economic growth rate is projected to stabilize at 2.6% for the year 2024, with a significant slowdown expected in the second half of the year[115] - Economic growth in China is anticipated to slow down to 4.8% in 2024, down from 3.8% in 2023, due to weakened consumer confidence and investment prospects[115] - Nearly 60% of economies, representing over 80% of the global population, are expected to have growth rates lower than the average of the 2010s[115] Shareholder Information - As of June 30, 2024, COFCO Corporation held 485,092,000 shares, representing approximately 39.60% of the issued shares[155] - The Group has complied with all covenant ratios during the reporting periods, with no breaches reported as of June 30, 2024[74] - The financial year end for the company is December 31, 2024, with interim results to be announced on August 23, 2024[171]

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 簡明綜合損益及其他全面收益表 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並 明確表示，概不對因本公告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。 (Unaudited) （未經審核） Six months ended 30 June 截至6月30日止6個月 2024 2023 Notes 附註 HK$'000 千港元 HK$'000 千港元 HK cents 港仙 HK cents 港仙 1 福 田 實 紫 (集團) 有 限 公 司 Fountain Set (Holdings) Limited （於香港註冊成立之有限公司）（股份代號：420） 截至2024年6月30日止6個月 中期業績公告 褔田實業（集團）有限公司董事會（分別為「本公司」及「董事」）謹此宣佈截至2024年6月30日止6個月本公司及其附屬公司（統稱為 「本集團」）之未經審核簡明綜合業績如下： ...

Financial Performance - Profit attributable to owners of the Company for 2023 was HK$3,268,346,000, a decrease of 8.1% compared to HK$3,560,238,000 in 2021[11]. - Revenue for the year ended December 31, 2023, was HK$4,440.2 million, a decrease of 26.7% from HK$6,053.6 million in 2022[91]. - Profit attributable to owners of the Company for 2023 was HK$50.9 million, compared to a loss of HK$115.5 million in 2022, marking a significant turnaround[91]. - Profit before income tax expense for 2023 was HK$111,128,000, a significant improvement from a loss of HK$20,210,000 in 2022[174]. - The profit margin for 2023 improved to 1.1%, compared to a negative margin of (1.9%) in 2022[91]. - Basic and diluted earnings per share for 2023 were 4.2 HK cents, recovering from a loss of (9.4) HK cents in 2022[91]. Assets and Liabilities - Total assets less current liabilities decreased to HK$3,735,548,000 in 2023 from HK$3,864,591,000 in 2022, reflecting a decline of 3.3%[11]. - Current assets slightly decreased to HK$3,368,807,000 in 2023, down from HK$3,375,223,000 in 2022, indicating a reduction of 0.2%[11]. - Non-current liabilities decreased significantly to HK$266,882,000 in 2023 from HK$440,824,000 in 2022, a reduction of 39.2%[11]. - Total equity for the Company was HK$3,468,666,000 in 2023, a slight increase from HK$3,423,767,000 in 2022, representing a growth of 1.3%[11]. - Total assets decreased to HK$4,900.8 million in 2023 from HK$5,046.8 million in 2022[75]. - Non-current bank borrowings significantly reduced to HK$91.1 million from HK$235.5 million year-over-year[75]. - The total bank borrowings decreased to HK$199.6 million in 2023 compared to HK$436.2 million in 2022[75]. Cash Flow and Financing Activities - Cash and cash equivalents as of 31 December 2023 were HK$1,379 million, a slight decrease from HK$1,394 million as of 31 December 2022[49]. - Net cash from operating activities decreased to HK$293,758,000 in 2023 from HK$905,634,000 in 2022, representing a decline of 67.6%[147]. - New bank borrowings raised totaled HK$252,796,000 in 2023, down from HK$1,193,538,000 in 2022, a decrease of 78.8%[147]. - Repayment of bank borrowings was HK$489,962,000 in 2023, compared to HK$1,084,881,000 in 2022, a reduction of 54.9%[147]. - Net cash used in financing activities increased to HK$309,903,000 in 2023 from HK$171,398,000 in 2022, an increase of 80.9%[147]. Operational Efficiency and Strategy - The Group faced significant challenges including a global economic slowdown and a decrease in average unit prices of exported textile products[34]. - The Group maintained a consistently low debt ratio and ample working capital, ensuring operational stability[49]. - The Group proactively adjusted production capacity, including voluntary redundancy payments to certain employees[34]. - The Group implemented a comprehensive quality control system in fabric production, enhancing tracking mechanisms and standardizing operational processes, which led to improved production standards and customer praise[160]. - The Group strengthened centralized procurement, optimizing supplier management and evaluation, which helped reduce procurement costs by expelling unqualified suppliers and directly procuring from resource owners[162]. Market Presence and Innovation - The Company has received multiple certifications, including the Global Recycled Standard 4.0 and Organic Content Standard 3.0, enhancing its sustainability credentials[13][24]. - The Company continues to focus on expanding its market presence and enhancing product quality through various certifications and partnerships[24]. - The Company is recognized for its commitment to innovation, receiving multiple awards for excellence in supply and sustainability[44][62]. - The Group's strategy includes collaboration with brands and suppliers to develop innovative fabrics and garments for consumers worldwide[35]. - The Company emphasizes research and development, collaborating with brands to innovate fabric and garment products[84]. Inventory and Receivables Management - The average turnover period for trade and bills receivables in 2023 was 76 days, compared to 69 days in 2022[37]. - The inventory turnover period increased to 69 days in 2023 from 62 days in 2022[75]. - The decrease in inventories was HK$143,956,000 in 2023, down from HK$775,744,000 in 2022, indicating a reduction of about 81.5%[174]. - The decrease in trade and bills receivables was HK$127,726,000 in 2023, compared to HK$279,543,000 in 2022, reflecting a decline of approximately 54.3%[174]. Audit and Compliance - The impairment assessment of property, plant, and equipment remains a key focus area due to its significance in financial reporting[125]. - The impairment assessment of property, plant, and equipment, investment properties, and right-of-use assets was identified as a key audit matter due to the significance of their carrying values and the critical assumptions used in the impairment evaluation[127]. - The independent auditor found that the key assumptions and inputs used in the impairment assessment were supportable by available evidence[130]. - The company is required to allocate 10% of its annual profit to statutory reserves before distributing any profits, as per Chinese regulations[145].

Financial Performance - For the year ended December 31, 2023, the company reported a revenue of HK$4,440,235, an increase from HK$4,118,246 in the previous year, representing a growth of approximately 7.8%[3] - The gross profit for the year was HK$321,989, compared to HK$577,817 in the previous year, indicating a decline of about 44.8%[3] - Profit before income tax expense was HK$111,128, a significant recovery from a loss of HK$20,210 in the previous year[3] - The profit for the year attributable to owners of the company was HK$67,844, a turnaround from a loss of HK$93,164 in the previous year[3] - Total comprehensive income for the year attributable to owners was HK$63,714, compared to a loss of HK$128,342 in the previous year[11] - The company’s net assets increased to HK$3,468,666 from HK$3,423,767, reflecting a growth of approximately 1.3%[13] - The finance costs for the year were HK$26,258, up from HK$21,408 in the previous year, indicating an increase of approximately 22.5%[3] - The Group's effective tax expense for 2023 was HK$43,284,000, down from HK$72,954,000 in 2022, indicating a decrease of about 40%[73] - The Group reported a net exchange loss of HK$1,543,000 in 2023, a significant improvement from a loss of HK$6,223,000 in 2022[77] - The gain on disposal of property, plant, and equipment was HK$9,600,000 in 2023, compared to HK$1,467,000 in 2022[77] - The reversal of impairment loss recognized on trade and bills receivables amounted to HK$259,011,000 in 2023, with no such amount in 2022[77] - The total other gains and losses for 2023 were HK$277,529,000, a substantial increase from HK$1,681,000 in 2022[77] - The Group's earnings attributable to owners for 2023 were HK$50,903,000, recovering from a loss of HK$115,532,000 in 2022[89] - Profit attributable to owners of the Company was HK$50,903,000 in 2023, a significant recovery from a loss of HK$115,532,000 in 2022[64] Revenue and Sales - For the year ended 31 December 2023, revenue from the production and sales of dyed fabrics and yarns was HK$4,440,235, a decrease from HK$6,053,645 in 2022, representing a decline of approximately 26.6%[44] - The Group's revenue for the year ended December 31, 2023, was HK$4,440,235,000, a decrease of 26.7% compared to HK$6,053,645,000 in 2022[100] - The core business of manufacturing and selling dyed fabrics and yarns generated revenue of approximately HK$3,639,699,000, accounting for 82.0% of total revenue, down from 85.1% in 2022[147] - Revenue from the production and sales of dyed fabrics and yarns was approximately HK$3,639,699,000, accounting for 82.0% of total revenue, down from 85.1% in 2022[168] - The Group's revenue decreased by 26.7% year-on-year, primarily due to a 22.9% decline in fabric sales volume[169] Costs and Expenses - The Group's cost of sales for 2023 was HK$4,118,246,000, a decrease from HK$5,475,828,000 in 2022, reflecting a reduction of approximately 24.8%[56] - The overall cost of sales for the year was approximately HK$4,118,246,000, down from HK$5,475,828,000 in 2022, resulting in a gross profit margin of 7.3%, compared to 9.5% in 2022[170] - Employee costs, including directors' emoluments, decreased to HK$691,167,000 in 2023 from HK$848,355,000 in 2022, a reduction of approximately 18.5%[56] - The Group's finance costs for 2023 were approximately HK$26,258,000, representing 0.6% of total revenue, compared to 0.4% in 2022[150] - Research and development costs decreased slightly to HK$56,659,000 in 2023 from HK$59,115,000 in 2022[56] Assets and Liabilities - Trade and bills receivables as of 31 December 2023 were HK$808,091, down from HK$928,721 in 2022, indicating a decrease of about 12.9%[45] - Trade receivables decreased to HK$720,569,000 from HK$797,805,000 year-on-year, while bills receivables also fell to HK$122,661,000 from HK$183,025,000[118] - The total inventories decreased to HK$783,908,000 in 2023 from HK$929,526,000 in 2022[92] - Bills payables were HK$1,103,000 as of December 31, 2023, significantly reduced from HK$19,200,000 in 2022[95] - Trade payables increased to HK$651,571,000 from HK$491,299,000, with trade payables within 1 month rising significantly to HK$430,215,000 from HK$260,063,000[120] - As of 31 December 2023, the Group's total assets were approximately HK$4,900,839,000, down from HK$5,046,765,000 in 2022[151] - The Group's inventories as of 31 December 2023 amounted to approximately HK$783,908,000, with an inventory turnover period of 69 days, an increase of 7 days compared to 62 days in 2022[150] Strategic Initiatives - The company is focusing on expanding its market presence and enhancing product offerings, although specific new products and technologies were not detailed in the report[3] - The Group aims to transform from a fabric manufacturing-oriented enterprise to a balanced fabric-to-garment integrated product and technology R&D service-oriented enterprise[183] - The Group plans to enhance product quality and competitiveness, focusing on cotton knitted fabric while addressing weaknesses in synthetic fiber fabrics[186] - The Group will prioritize developing emerging markets and domestic mid-to-high-end markets, targeting renowned international and domestic brand customers[187] - The Group is committed to improving operational efficiency and addressing challenges related to orders, layout, costs, and quality to achieve better returns for stakeholders[188] - The Group proactively adjusted production capacity and order allocation in response to the restructuring of the global textile and apparel supply chain[102] - The Group has strengthened its R&D capabilities for new fiber and functional fabric products to improve customer service levels[160] Dividends and Shareholder Information - The final dividend recommended is HK$3.00 cents per share, with a payout ratio of 71.43%, amounting to approximately HK$36,751,000[100] - The final dividend for 2023 is subject to shareholder approval at the upcoming annual general meeting[100] - The Board has proposed a final dividend to shareholders, subject to approval at the AGM, to be paid on or about 16 July 2024[194] - The Register of Members will be closed from 18 June 2024 to 21 June 2024 for the AGM, during which no share transfers will be registered[197] Governance and Compliance - The Audit Committee, consisting of three independent non-executive directors, has reviewed the Group's audited financial results for the year ended 31 December 2023[198] - The Group's segment profit does not include central administration costs and other expenses, which are essential for resource allocation and performance assessment[42] - The Group has adopted HKFRS 17 for insurance contracts, effective from 1 January 2023, but it has not materially impacted financial performance[37] - The amendments to HKFRSs had no impact on the consolidated financial statements of the Group, ensuring consistency in financial reporting[31] - The Group's financial performance was not materially impacted by the adoption of new and amended HKFRSs, but it did affect the disclosures of accounting policies[30] - The Group aims to enhance overall strategy planning by having the same individual serve as both Chairman and CEO, which is a deviation from the CG Code[193]

Financial Performance - For the six months ended June 30, 2023, the Group reported a consolidated profit of HKD 150 million, representing a 10% increase compared to the same period in 2022[16]. - The Group's revenue for the first half of 2023 was HKD 1.2 billion, reflecting a growth of 8% year-on-year[16]. - Revenue for the six months ended June 30, 2023, was HK$2,193,867, a decrease of 37.7% from HK$3,516,625 in 2022[17]. - Gross profit for the same period was HK$171,339, down 57.8% from HK$406,210 in 2022[17]. - Loss for the period attributable to owners of the Company was HK$81,607, compared to a profit of HK$70,327 in 2022[17]. - Basic and diluted loss per share for the period was HK$6.7, a decline from earnings of HK$5.7 per share in 2022[17]. - Total comprehensive expense for the period was HK$82,872, compared to a comprehensive income of HK$71,423 in 2022[19]. - The net cash generated from operating activities for the six months ended June 30, 2023, was HK$32,856, a significant decrease of 81.85% compared to HK$181,008 for the same period in 2022[29]. - Total comprehensive income for the period was a loss of HK$89,282, compared to a comprehensive income of HK$56,768 in the previous year, marking a substantial decline[27]. - The Group reported a loss of HK$81,607,000 for the six months ended June 30, 2023, compared to a profit of HK$70,327,000 in the same period of 2022[91]. Assets and Liabilities - The total assets of the Group as of June 30, 2023, amounted to HKD 2.5 billion, an increase of 5% from the previous year[16]. - The Group's cash and cash equivalents stood at HKD 300 million, which is a 15% increase compared to the previous period[16]. - Non-current assets decreased to HK$1,603,586 from HK$1,671,542 as of December 31, 2022[22]. - Current assets decreased to HK$3,167,278 from HK$3,375,223 as of December 31, 2022[22]. - Net current assets were HK$2,111,626, down from HK$2,193,049 at the end of 2022[22]. - Total equity decreased to HK$3,340,895 from HK$3,423,767 as of December 31, 2022[24]. - As of June 30, 2023, the company's total equity attributable to owners decreased to HK$3,131,785, down from HK$3,221,067 at the beginning of the year, reflecting a decline of approximately 2.77%[27]. - The Group's bank borrowings due within one year decreased to HK$168,347 from HK$200,734 at the end of 2022[24]. - The Group's bank borrowings were HK$38,725,000 as of June 30, 2023, down from HK$121,138,000 at December 31, 2022[132]. Operational Developments - The Group plans to expand its production facilities in Indonesia, aiming to increase capacity by 20% by the end of 2024[2]. - The Group is investing in R&D for innovative fabric technologies, with a budget allocation of HKD 50 million for the upcoming fiscal year[2]. - The Group's workforce has grown to approximately 5,800 employees, with a focus on enhancing operational efficiency[2]. - The Group's market presence has expanded to four additional countries, enhancing its global footprint[2]. - The Group is exploring potential acquisitions to strengthen its supply chain and market position in the fabric manufacturing industry[2]. Market Conditions - The global textile and garment industry faced significant challenges in 1H2023, including the impact of the Russia-Ukraine war and rising global inflation, leading to a decline in consumer purchasing power[135]. - The Group experienced a significant reduction in orders due to decreased demand from retail apparel customers, attributed to stockpiling and inflationary pressures[135]. - Market adjustments are anticipated to depend on a significant reduction in inventory levels of retail brand customers and a recovery in consumer purchasing desire[135]. - The Group anticipates a cautious outlook for the second half of 2023 due to ongoing challenges such as high inventory costs and international shipping prices[169]. Cost Management - The Group plans to strictly control sales and operational costs while streamlining the organization to mitigate impacts from high inventory and fixed costs[165]. - The Group continues to focus on lean management, technology automation, machinery upgrade, and cost reduction initiatives to enhance overall operating efficiency[142][146]. - The Group plans to implement strict cost control measures and further expand its domestic market in response to external uncertainties and high raw material costs[169]. Sustainability and Certifications - Fountain Set (Holdings) Limited received multiple certifications in 2023, including the Global Organic Textiles Standard (GOTS) Version 6.0 and the Organic Content Standard (OCS) Version 3.0, enhancing its sustainability credentials[151]. - The company achieved the 2022 Outstanding Contribution Award for High-quality Development from the Jiangyin High-tech Industrial Development Zone, recognizing its commitment to quality[153]. - In 2023, Fountain Set Limited obtained the ISO 14001 Environmental Management System Certificate and the ISO 50001 Energy Management System Certificate, indicating its focus on environmental and energy management[154]. - The company was recognized as one of the Top 30 Chinese Knitting Industries in 2022 by the China Knitting Industry Association, reflecting its competitive position in the market[152]. - Fountain Set Limited has been actively expanding its certifications, with 14 memberships in the U.S. Cotton Trust Protocol, demonstrating its commitment to sustainable cotton sourcing[153]. - The company received the Oeko-Tex Standard 100 Certificate in March 2023, ensuring its products meet high safety and environmental standards[154]. - Fountain Set Limited's subsidiary, Jiangyin Fuhui Textiles Limited, achieved the ISO 14001 certification in June 2023, further solidifying its environmental management practices[153]. - The company continues to enhance its laboratory capabilities, obtaining various laboratory accreditation certificates from recognized organizations, ensuring quality control in its production processes[152]. Economic Outlook - Global economic growth is projected to decelerate from 3.1% in 2022 to 2.1% in 2023, with advanced economies slowing from 2.6% to 0.7%[159]. - Economic activity in emerging markets and developing economies (EMDEs) is expected to be about 5% below pre-pandemic levels by the end of 2024[159]. - The Chinese economy is anticipated to rebound to a growth rate of 5.6% in the second half of 2023, supported by strong domestic demand and recovery in service sectors[160]. - The outlook for global economic and retail markets remains uncertain due to weak external demand and tightening financial conditions[164].

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 簡明綜合損益及其他全面收益表 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並 明確表示，概不對因本公告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。 （於香港註冊成立之有限公司）（股份代號：420） 2023 6 30 6 截至 年 月 日止 個月 中期業績公告 2023 6 30 6 褔田實業（集團）有限公司董事會（分別為「本公司」及「董事」）謹此宣佈截至 年 月 日止 個月本公司及其附屬公司（統稱為 「本集團」）之未經審核簡明綜合業績如下： CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 簡明綜合損益及其他全面收益表 (Unaudited) Six mon（th未s 經en審de核d） 30 June 6 30 6 截至 月 日止 個月 202 ...

Company Overview - Fountain Set Group is one of the world's largest fabric manufacturers, producing knitted fabric and garments through vertically integrated operations[1]. - The company has 7 production facilities located in the PRC, Sri Lanka, and Indonesia, with a global workforce of nearly 5,900 employees[2]. - Chinatex Corporation Limited has been the largest shareholder of Fountain Set since 2012, indicating strong backing from a state-owned enterprise[3]. - Fountain Set operates marketing and representative offices in 4 countries, enhancing its global reach[2]. Financial Performance - Revenue for 2022 decreased to HK$6,053.6 million, down 10.3% from HK$6,751.3 million in 2021[4]. - The company reported a loss attributable to owners of HK$115.5 million, compared to a profit of HK$241.3 million in 2021[4]. - Profit margin turned negative at -1.9%, a decline from 3.6% in the previous year[4]. - Basic and diluted earnings per share were both -9.4 HK cents, down from 19.7 HK cents in 2021[4]. - Proposed final dividend per share was not declared, compared to 16.00 HK cents in 2021, with a dividend payout ratio of 81.2% in the previous year[4]. - Total assets decreased to HK$5,046.8 million from HK$5,748.4 million in 2021[4]. - Net current assets were HK$2,193.0 million, slightly down from HK$2,248.8 million in 2021[4]. - Total bank borrowings increased to HK$436.2 million from HK$327.3 million in 2021[4]. - Return on equity fell to -2.7%, down from 7.2% in the previous year[4]. - Inventory turnover period improved to 62 days from 107 days in 2021[4]. Awards and Recognition - Jiangyin Fuhui Textiles Limited received the "2021 Top 100 Star Enterprise" award from the Jiangyin Municipal Party Committee of Communist Party of China[47]. - Yancheng Fuhui Textiles Limited was awarded the "2021 Technology Innovation Award" by Chinatex Corporation[52]. - Fountain Set (Holdings) Limited achieved the Global Recycled Standard 4.0 certification, enhancing its sustainability credentials[44]. - The company holds multiple Oeko-Tex Standard 100 Certificates, ensuring product safety and environmental standards[54]. - Jiangyin Fuhui Textiles Limited was recognized as an "Outstanding Enterprise of Foreign Investment" in 2021, reflecting its strong performance in attracting foreign capital[50]. - The company has been acknowledged as a "Charitable Enterprise" in 2021, highlighting its commitment to social responsibility[50]. - Fountain Set (Holdings) Limited is a certified bluesign system partner, indicating its dedication to sustainable textile production[44]. - The company has received the "Best Quick Response Award" from ANTA Sports Products Limited, showcasing its operational efficiency[59]. - Jiangyin Fuhui Textiles Limited was recognized for its "Outstanding Contribution Award for High-quality Development" in 2021, emphasizing its role in regional economic growth[47]. - The company has been awarded the ISO 50001 Energy Management System Certificate, demonstrating its commitment to energy efficiency[50]. Market Conditions and Challenges - The net loss attributable to the owners of the Company for the year ended December 31, 2022, was primarily due to reduced consumer purchasing momentum, purchasing power decline, overstocking by retail clients, and a one-off redundancy compensation of approximately HK$127 million[72]. - The adverse market conditions were influenced by global inflation and the ongoing war in Ukraine, impacting consumer behavior and demand[72]. - Global growth is projected to decelerate sharply, with a decline to 1.7% in 2023 from 3.0% expected six months prior, indicating a broad-based deterioration across regions[81]. - By the end of 2024, GDP levels in emerging market and developing economies (EMDEs) are expected to be about 6% below pre-pandemic levels[81]. - The escalation of geopolitical conflicts and sanctions has driven up global commodity prices, significantly increasing manufacturing costs[103]. Sustainability Initiatives - The Group has established a "Sustainability Development and Enhancement Committee" to drive sustainability objectives and goals across its operations[82]. - The centralized heat supply project has reduced 28 coal-fired heaters, contributing to cleaner air by lowering nitrogen oxide and sulfur dioxide emissions[83]. - The first phase of the project was completed in 2018, and the second phase began in 2019, with two new natural gas boilers operational in January and August 2021[83]. - The Group is committed to investing in advanced technologies and pollution reduction measures, including periodic training for staff on environmental protection[88][92]. - The establishment of a "Sustainability and Improvement Committee" in 2016 aims to enhance management's perspective on sustainable development and set ambitious goals[85]. - The Group's commitment to green development is expected to improve the ecological environment and overall social benefits in the region[86]. Operational Strategies - The Group anticipates a turnaround in financial performance by enhancing operational efficiency and exploring market opportunities[90][97]. - The Group is actively promoting the Yancheng Fuhui Expansion Project to enhance digitalization, intelligence, and eco-friendliness in operations[115]. - The future supply chain will focus on regionalization, localization, and diversification, leading to more flexible global supply chains[110]. - The Group aims to optimize operations by boosting domestic sales, shortening inventory turnover days, and reducing inventory levels[111]. - Fountain Set Group actively adjusted its sales strategy in response to a challenging business environment in 2022, maintaining stable domestic sales orders despite a slowdown in economic growth[119]. - The export sales team focused on reducing the loss of quarterly intended orders and securing unconfirmed orders from major customers in the United States, while increasing the supply of high-value products[120]. - The Group emphasized product development and quality improvement, enhancing R&D capabilities to meet market demands and improve product quality[122]. - A tracking mechanism for new product production was strengthened, effectively addressing recurring quality issues such as dyeing defects and wear marks[123]. - Inventory management was optimized to mitigate operating risks, with a focus on reducing raw material and finished goods backlog to improve capital turnover[124]. - Centralized procurement management was deepened, leading to significant reductions in procurement costs through optimized supplier catalogs and online supervision[128]. - Production management measures were implemented to control costs, including segmented production and optimizing employment structure[129]. - Lean management initiatives helped reduce product defection and repair rates, improving overall product quality and reducing manufacturing costs[130]. - Staff reduction and efficiency increase measures were taken to enhance per-capita efficiency and ensure stable business development[131]. - The salt city expansion project is a key initiative for the Group's transformation, focusing on smart manufacturing and sustainable development in the textile industry[117]. Economic Outlook - The International Monetary Fund projected global economic growth to decline from 3.4% in 2022 to 2.9% in 2023[200]. - The United Nations forecasted world economic growth to fall from approximately 3% in 2022 to 1.9% in 2023[200]. - The World Bank projected a slowdown in global economic growth to 1.7% in 2023, indicating a significant risk of recession[200]. - Average per-capita incomes in fragile and conflict-affected areas are expected to decline by 2024, indicating stalled income convergence[89]. Corporate Governance - Corporate governance policies are being improved to enhance shareholder value, with the formation of various committees at the Board level[96][98]. - The Group has complied with all covenant ratios and undertakings for the years ended December 31, 2022, and 2021[188].