Financial Performance - The Group recorded a sales growth of 5.2% for the year, reaching RMB 2.57 billion[16] - The Group experienced a loss of RMB 43.0 million for the year, attributed to the inventory impairment[16] - The Group's revenue for the year increased by approximately 5.2% year-on-year to RMB 2,571,606,000, compared to RMB 2,445,428,000 in 2023[39] - Gross profit decreased by approximately 62.8% year-on-year to RMB 153,274,000, with a gross profit margin dropping by 10.8 percentage points to 6.0%[39] - The Group's loss for the year amounted to RMB 43,338,000, compared to a profit of RMB 162,790,000 in 2023[39] - Revenue from overseas sales amounted to RMB 1,492,134,000, representing approximately 58.0% of the Group's total revenue[44] - Revenue from the European Union countries was approximately RMB 516,543,000, accounting for about 20.1% of total revenue, while non-EU countries contributed approximately RMB 975,591,000, or 37.9%[44] - Domestic sales in China dropped by approximately 9.6% to RMB 1,079,472,000, representing about 42.0% of total revenue[46] - Other income and gains decreased to approximately RMB 11,384,000 from RMB 18,927,000 in 2023, primarily due to lower interest income and government grants[76] - Selling and distribution expenses amounted to approximately RMB 34,476,000, accounting for 1.3% of revenue, down from 1.7% in 2023, attributed to reduced sales commissions[77] - The Group recorded a net loss of approximately RMB 43,338,000 for the year, compared to a profit of approximately RMB 162,790,000 in 2023[89] Inventory and Impairment - An impairment provision of approximately RMB 199 million for inventories was recognized due to significant drops in raw material and flax yarn prices in Q4 2024[16] - A provision for inventory impairment of approximately RMB 199,431,000 was made as of December 31, 2024, due to significant drops in raw material and flax yarn prices[39] - The impairment provision for inventories as of December 31, 2024, was approximately RMB199,431,000, reflecting the difference between inventory costs and net realizable values[71] Production and Capacity - The Group's production capacity in China totals 23,000 tonnes, with all four production bases operating at near full capacity[59] - The new production facility in Ethiopia has boosted the Group's annual production capacity by 5,000 tonnes, with production ramping up to about 70%[66] - The Group owns 78.67% equity interest in the Heilongjiang facility, marking its entry into the industrial hemp yarn market, which is expected to grow due to national policies[60] Supply Chain and Operations - The company aims to improve operational efficiency and optimize the global supply chain through globalization, process orientation, standardization, and digitalization strategies[22] - The Group is collaborating with CottonConnect to develop the REEL Linen Code of Conduct, focusing on sustainability and traceability in the linen supply chain[54] - The Group plans to build a warehouse in Heilongjiang to manage the supply chain of hemp materials, aiming to establish it as a national trading hub for hemp in China[53] - The Group's production bases are continuously being improved with the latest management systems and technologies, enhancing overall production efficiency and reducing costs[58] Financial Position - The total assets of the Group as of December 31, 2024, were RMB 3,115,009,000, a decrease from RMB 3,283,176,000 in 2023[31] - The total liabilities of the Group as of December 31, 2024, were RMB 1,640,180,000, compared to RMB 1,695,964,000 in 2023[31] - The Group's net current assets as of December 31, 2024, were approximately RMB 477,487,000 (2023: RMB 562,864,000), with total cash and deposits decreasing to approximately RMB 277,650,000 (2023: RMB 521,256,000)[107] - The liquidity ratio as of December 31, 2024, was approximately 129.9% (2023: 134.6%), and total equity was approximately RMB 1,474,829,000 (2023: RMB 1,587,212,000)[108] - The gross debt gearing ratio increased to approximately 69.4% as of December 31, 2024 (2023: 54.8%) due to higher borrowings[109] Dividends - The Board has recommended a final dividend of HK$0.05 per share for the year, down from HK$0.09 in 2023[40] - The Board proposed a final dividend of HKD 0.05 per share for the year, down from HKD 0.09 per share in 2023[43] - A final dividend of HK$0.05 per ordinary share has been recommended for the Year, pending approval at the upcoming annual general meeting[182] - The board proposed a final dividend of HKD 0.05 per ordinary share, subject to shareholder approval at the upcoming annual general meeting[189] Employee and Governance - The Group has 3,703 employees as of December 31, 2024, a slight increase from 3,700 employees in 2023[131] - The Group has adopted a share option scheme and a share award plan to incentivize Directors and employees contributing to the Group's success[135] - The company has a strong governance structure with a mix of executive and independent non-executive directors to ensure effective oversight[153][154] - The management team has a significant ownership stake in the company, aligning their interests with those of shareholders[145][147][148] Market and Economic Conditions - The Group faces risks including unstable demand for linen yarn, protectionism, and potential punitive tariffs on products made in China[176] - The Group's diversification of the supply chain is deemed urgent due to the aging population in China and rising operating costs in Asia[137] - The management team anticipates challenges in 2025 and beyond due to ongoing tariffs and political divergences among superpowers[137] Charitable Contributions - Charitable donations made by the Group during the Year totaled approximately RMB200,000, compared to RMB139,000 in 2023[185] - Charitable donations made by the group during the year totaled approximately RMB 200,000, compared to RMB 139,000 in 2023[192]

Financial Performance - The group's revenue increased by approximately 5.2% from RMB 2,445,428,000 in the year ended December 31, 2023, to RMB 2,571,606,000 in the year ended December 31, 2024, due to higher average selling prices[2] - The gross profit margin decreased by 10.8 percentage points to approximately 6.0% for the year ended December 31, 2024, attributed to higher average material costs[2] - The net loss for the year was approximately RMB 43,338,000, compared to a profit of approximately RMB 162,790,000 for the year ended December 31, 2023[3] - The loss attributable to equity holders of the parent company was approximately RMB 45,380,000, compared to a profit of approximately RMB 163,611,000 for the previous year[3] - The basic and diluted loss per share for the year was approximately RMB 0.07, down from earnings of approximately RMB 0.27 per share in the previous year[3] - The group reported a pre-tax loss of RMB 43,854,000 in 2024, compared to a profit of RMB 221,191,000 in 2023[33] - The total income tax expense for the year was a credit of RMB 516,000, a significant decrease from an expense of RMB 58,401,000 in 2023[34] - The company’s gross profit decreased by approximately 62.8% to RMB 153,274,000, resulting in a gross margin decline of 10.8 percentage points to 6.0%[62] Dividends - The board proposed a final dividend of HKD 0.05 per ordinary share for the year ended December 31, 2024, down from HKD 0.09 in the previous year[2] - Proposed final dividend for 2024 is HKD 0.05 per share, totaling approximately RMB 29,155,000, pending shareholder approval[36] - The company plans to pay a final dividend of HKD 0.05 per share for the year, down from HKD 0.09 in 2023, reflecting a commitment to shareholder returns while reserving resources for further expansion[62] Inventory and Assets - The total inventory as of December 31, 2024, was RMB 1,195,126,000, an increase from RMB 1,019,545,000 in the previous year[5] - Non-current assets decreased from RMB 1,093,960,000 in the previous year to RMB 1,041,403,000 as of December 31, 2024[5] - The carrying amount of non-current assets subject to impairment testing was RMB 980,000,000 as of December 31, 2024, compared to RMB 1,043,000,000 in 2023[22] - Inventory carrying amount increased to RMB 1,195,126,000 as of December 31, 2024, from RMB 1,019,545,000 in 2023, representing an increase of approximately 17.3%[23] - The total value of right-of-use assets decreased from RMB 68,815,000 at the beginning of 2023 to RMB 61,818,000 by the end of 2024, reflecting a depreciation expense of RMB 3,746,000 for the year[41] Liabilities and Borrowings - Current liabilities totaled RMB 1,596,119,000 as of December 31, 2024, compared to RMB 1,626,352,000 in the previous year[5] - The total accounts payable and notes payable as of December 31, 2024, was RMB 454,696,000, a decrease of 22.6% from RMB 587,651,000 in 2023[51] - The total amount of current interest-bearing bank and other borrowings increased to RMB 989,556,000 in 2024 from RMB 833,806,000 in 2023, representing an increase of 18.7%[53] - The current portion of bank loans due within one year rose to RMB 938,693,000 in 2024 from RMB 782,480,000 in 2023, an increase of 20.0%[54] - Interest-bearing bank and other borrowings increased by 17.8% to approximately RMB 1,023,992,000[92] Revenue Breakdown - Revenue from mainland China decreased to RMB 1,079,472,000 in 2024 from RMB 1,194,237,000 in 2023, a decline of about 9.6%[26] - Revenue from the European Union increased to RMB 516,543,000 in 2024 from RMB 468,957,000 in 2023, reflecting a growth of approximately 10.2%[26] - Revenue from continuing operations amounted to RMB 324,706,000, with no revenue reported in 2023 from a single customer[27] - Total customer contract revenue for 2024 was RMB 2,571,606,000, representing an increase of 5.2% from RMB 2,445,428,000 in 2023[29] - Sales of hemp yarn, hemp fiber, and waste accounted for RMB 2,344,251,000 in 2024, slightly up from RMB 2,339,400,000 in 2023[29] Operational Developments - The company has established four production bases in China with a total annual capacity of 23,000 tons, all operating near full capacity[70][73] - The company is investing in a new production facility in Ethiopia, which will increase annual capacity by 5,000 tons, with the project expected to benefit from reduced costs and tariffs[72] - The company is establishing a warehouse in Heilongjiang Province to manage the storage and supply chain of industrial hemp fiber, aiming to make it a national trade center for hemp materials in China[67] - The company has entered into foreign exchange forward contracts to manage currency risks, with no significant derivative financial assets or liabilities recorded as of December 31, 2024[101] Employee and Governance - The total employee cost for the year decreased by approximately 4.7% to RMB 250,102,000, compared to RMB 262,496,000 in the previous year[102] - The total number of employees as of December 31, 2024, was 3,703, a slight increase from 3,700 in 2023[102] - The company has adopted stock option and share incentive plans to motivate and reward employees contributing to its business success[102] - The company has established an audit committee to review and monitor financial reporting processes and risk management systems[115] - The audit committee consists of three independent non-executive directors, with Mr. Liu Yingjie as the chairman, ensuring compliance with corporate governance codes[117] Market Position and Future Outlook - The company continues to maintain its position as China's largest pure linen yarn exporter for 22 consecutive years, demonstrating its market leadership[60] - The company anticipates a positive long-term outlook for the linen industry, driven by changing consumer preferences towards sustainable and high-quality products[65] - The company is collaborating with CottonConnect to promote sustainability in the flax industry through the REEL flax behavior code[68] - The group plans to establish a new factory in Egypt, with feasibility studies already conducted and registration planned for 2024[100] - The company is conducting feasibility studies for establishing a new factory in Egypt, which could benefit from reduced or zero import tariffs from EU member states[103]

Revenue Growth - Revenue increased by approximately 37.5% to approximately RMB1,129,916,000 for the Review Period from approximately RMB821,476,000 for the Previous Period[8] - Domestic sales amounted to RMB538,944,000, contributing approximately 47.7% of total revenue, with a year-on-year increase of approximately 56.4%[11] - Overseas sales reached RMB590,972,000, contributing approximately 52.3% of total revenue, with a year-on-year increase of approximately 23.9%[11] - Revenue for the six months ended June 30, 2024, reached RMB 1,129,916,000, a 37.5% increase from RMB 821,476,000 in the same period of 2023[127] - Revenue from Mainland China was RMB 538,944,000, up 56.6% from RMB 344,603,000 in the previous year[127] - Revenue from the European Union increased to RMB 253,008,000, a rise of 5.8% compared to RMB 240,230,000 in 2023[127] Profitability - Profit for the Review Period increased by approximately 16.3% to RMB78,508,000 from approximately RMB67,500,000 for the Previous Period[8] - Profit attributable to the owners of the parent increased by approximately 9.5% to RMB73,961,000 for the Review Period from approximately RMB67,549,000 for the Previous Period[8] - Basic earnings per share increased by 9.1% to approximately RMB0.12 for the Review Period from RMB0.11 for the Previous Period[8] - Profit before tax increased to RMB 108,260, a rise of 22.4% from RMB 88,484 in the previous year[103] - Profit for the period was RMB 78,508, compared to RMB 67,500 in 2023, marking a growth of 16.4%[104] - The company reported a profit for the period of RMB 73,961, contributing to the overall increase in equity[108] Cost and Expenses - Gross profit margin slightly decreased by approximately 1.2 percentage points to approximately 17.6% for the Review Period from approximately 18.8% for the Previous Period[8] - The average procurement unit price for raw materials rose to approximately RMB73,999 per tonne, a 65.7% increase from RMB44,658 in the previous year, due to supply shortages[13] - Selling and distribution expenses amounted to approximately RMB16,164,000, accounting for approximately 1.4% of total revenue, a decrease from 1.7% in the previous period[21] - Administrative expenses increased by approximately 7.9% to RMB 53,271,000 from RMB 49,361,000 in the previous period, primarily due to higher staff costs and consulting fees[26] - Other expenses rose significantly to approximately RMB 7,293,000 from RMB 673,000, mainly due to a net exchange loss of RMB 4,268,000[28] - Finance costs totaled approximately RMB 18,660,000, an increase from RMB 15,326,000 in the previous period, with net borrowing interest expenses rising to RMB 18,512,000[29] Assets and Liabilities - As of June 30, 2024, the Group's total assets were approximately RMB 3,443,266,000, an increase from RMB 3,283,176,000 as of December 31, 2023[41] - The Group's net current assets as of June 30, 2024, were approximately RMB 614,907,000, compared to RMB 562,864,000 as of December 31, 2023[40] - Current interest-bearing bank loans amounted to RMB 391,380,000, an increase of 15.1% from RMB 339,817,000 as of December 31, 2023[48] - The gross debt gearing ratio increased to approximately 66.3% as of June 30, 2024, from 54.8% as of December 31, 2023[41] - Total financial liabilities at amortised cost reached RMB 1,694,035,000 as of June 30, 2024, including interest-bearing bank borrowings of RMB 1,064,796,000 and trade payables of RMB 488,255,000[164] Production and Capacity - The Group produced a total of 220 tonnes of hemp yarn during the review period, marking its first venture into the hemp yarn market[16] - The Group has five production bases with a total annual capacity of 34,000 tonnes, with utilization rates around 85% for most factories[15] - The Group's factory in Ethiopia is expected to contribute additional production capacity, enhancing overall operational efficiency[64] - 2024 is anticipated to be a bumper year for raw materials, with an expected abundant supply enabling strategic release of production capacity[64] Corporate Governance and Shareholder Information - The Company has adopted a Share Option Scheme since 30 May 2016, but no options have been granted under this scheme since its adoption[85] - The Share Award Plan, adopted on 26 August 2016, aims to incentivize and reward eligible persons for their contributions, with no shares awarded during the review period[89] - The Company has complied with all corporate governance code provisions throughout the review period, except for a deviation regarding the separation of roles of chairman and chief executive officer[96] - The Company does not have a chief executive officer; the chairman oversees general operations, which the Board believes does not impair the balance of power[97] - As of June 30, 2024, Mr. Ren Weiming holds a total of 327,062,000 shares, representing approximately 51.94% of the issued share capital[69] Future Outlook - The Group is optimistic about the future of the linen textile industry and plans to maintain production scale while monitoring international market developments[13] - Future plans include maintenance of existing factory projects and a potential factory setup in Egypt or Northern Africa[54] - The investment in Ethiopia is expected to reduce costs and provide duty-free access to European markets under the Everything but Arms initiative[17] - Overall, the company remains optimistic about future growth, citing a strong pipeline of products and services[180]

Financial Performance - Revenue increased by approximately 37.5% from RMB 821,476,000 in the previous period to RMB 1,129,916,000 in the review period[1] - Profit for the period rose by approximately 16.3% to RMB 78,508,000 from RMB 67,500,000 in the previous period[2] - Profit attributable to equity holders of the parent increased by approximately 9.5% to RMB 73,961,000 from RMB 67,549,000[2] - Basic earnings per share increased by 9.1% to approximately RMB 0.12 from RMB 0.11 in the previous period[2] - Total comprehensive income for the period amounted to RMB 70,786,000, compared to RMB 66,880,000 in the previous period[3] - The company reported a gross profit of RMB 221,016 thousand for the six months ended June 30, 2024, compared to RMB 173,921 thousand in 2023, indicating improved profitability[19] - Gross profit increased by about 28.5% to approximately RMB 198,845,000, with a gross margin decline of about 1.2 percentage points to approximately 17.6%[32] Assets and Liabilities - Non-current assets decreased from RMB 1,093,960,000 to RMB 1,060,790,000[4] - Current assets increased from RMB 2,189,216,000 to RMB 2,382,476,000[4] - Total liabilities increased from RMB 1,626,352,000 to RMB 1,767,569,000[4] - Net assets attributable to equity holders of the parent increased from RMB 1,522,981,000 to RMB 1,537,864,000[5] - Non-current assets as of June 30, 2024, totaled RMB 1,045,993 thousand, a decrease from RMB 1,078,857 thousand as of December 31, 2023[12] - The total amount of trade receivables increased to RMB 508,406,000 from RMB 558,356,000, with trade receivables of RMB 439,664,000[24] - The total accounts payable decreased to RMB 488,255,000 from RMB 587,651,000[25] - The net current assets as of June 30, 2024, were approximately RMB 614,907,000, an increase from RMB 562,864,000 as of December 31, 2023[42] - The total assets as of June 30, 2024, were approximately RMB 3,443,266,000, compared to RMB 3,283,176,000 as of December 31, 2023[42] Sales and Market Performance - Domestic sales contributed approximately 47.7% of total revenue, amounting to RMB 538,944,000, a year-on-year increase of about 56.4%[27] - Overseas sales accounted for approximately 52.3% of total revenue, totaling RMB 590,972,000, with a year-on-year increase of about 23.9%[27] - Sales of linen yarn, hemp yarn, and waste accounted for RMB 1,106,745 thousand, up from RMB 802,256 thousand, reflecting a significant growth in product sales[16] - The average selling price of linen yarn increased, despite a slight decrease in sales volume from 7,275 tons to 7,179 tons, a reduction of 1.3%[26] - Domestic sales in China grew by 56.4%, while export sales to the EU and non-EU regions rose by approximately 5.3% and 42.8%, respectively[31] Costs and Expenses - The company incurred research and development expenses of RMB 8,746 thousand for the six months ended June 30, 2024, down from RMB 12,656 thousand in the previous year, indicating a focus on cost management[19] - Interest expenses on bank loans increased to RMB 18,512 thousand in the first half of 2024, compared to RMB 16,235 thousand in the same period of 2023[18] - The group reported a total tax expense of RMB 29,752,000 for the period, compared to RMB 20,984,000 in the previous year[7] - The financial costs totaled approximately RMB 18,660,000, up from RMB 15,326,000 in the previous period[37] - The total employee cost for the review period was approximately RMB 79,101,000, a decrease from RMB 80,261,000 in the previous period, with a total of 3,736 employees as of June 30, 2024[50] Corporate Governance and Strategy - The company aims to enhance long-term shareholder returns by implementing a strategy focused on sustainable development and technological innovation[56] - The company is committed to good corporate governance practices to enhance investor confidence, and it has adhered to the corporate governance code throughout the review period, except for a specific deviation noted[63] - The chairman and CEO roles are separated, with Mr. Ren Wei Ming serving as chairman, ensuring a balance of power and effective operations within the company[64] - An audit committee has been established in accordance with the listing rules, consisting of three independent non-executive directors, and the interim results have been reviewed without dissent[65] Future Outlook and Risks - The company anticipates a bountiful year for raw materials in 2024, expecting sufficient supply to strategically release production capacity[54] - The company faces risks related to demand for linen yarn, trade protectionism, and potential punitive tariffs on Chinese products[53] - The company has no plans for significant acquisitions or capital assets, except for maintenance of existing factory projects and potential establishment of a factory in Egypt or North Africa[48] - The company has not recorded any significant derivative financial assets or liabilities as of June 30, 2024[49] - There have been no significant events disclosed since December 31, 2023[52] Dividends - The group did not declare any interim dividends for the six months ended June 30, 2024, consistent with the previous year[22] - No interim dividend has been recommended for the six months ending June 30, 2024, consistent with the previous year[57] - As of June 30, 2024, a total of 13,230,750 shares are held by the trustee for future grants, representing approximately 2.1% of the company's issued shares[60]

Financial Performance - Kingdom Holdings recorded a sales growth of 21.0% for the year, reaching RMB 2.4 billion, with a profit of RMB 162.8 million[16]. - The Group's revenue for the year increased by approximately 21.0% to RMB2,445,428,000 compared to RMB2,021,055,000 in 2022[43]. - Gross profit rose by approximately 6.4% year-on-year to RMB411,488,000, while the overall gross profit margin decreased by 2.3 percentage points to 16.8%[43]. - Profit for the year was RMB162,790,000, a decrease from RMB171,808,000 in 2022[43]. - Revenue from overseas sales amounted to RMB1,251,191,000, representing approximately 51.2% of the Group's total revenue[45]. - Domestic sales in China increased by approximately 54.2% to RMB 1,194,237,000, accounting for approximately 48.8% of the Group's total revenue[52][53]. - Other income and gains for the year recorded a net gain of RMB18,927,000, down from RMB54,431,000 in the previous year[79]. - The Group recorded a net profit of approximately RMB162,790,000 for the Year, compared to RMB171,808,000 for the year ended 31 December 2022, representing a decrease of about 5.9%[92][98]. Operational Efficiency - The Group's total consumption of electricity, water, steam, and natural gas decreased by 7.0%, 6.1%, 12.5%, and 6.8% respectively[17]. - The Group's production capacity for linen and industrial hemp yarn is currently 23,000 tonnes, with high utilization rates across its four production bases in China[65][67]. - The Group's production bases are continuously improved with the latest technologies, enhancing operational efficiency and reducing production costs[64][67]. - The Group aims to improve production processes to enhance operational efficiencies in pursuit of sustainable development[181]. Sustainability Initiatives - Kingdom achieved carbon neutrality in November 2023, verified by SGS, through various carbon emission reduction initiatives[18]. - The company has integrated Environmental, Social, and Governance (ESG) principles into its business strategy to ensure sustainable operations[17]. - The Group is collaborating with CottonConnect to develop the REEL Linen Code of Conduct, focusing on sustainability and traceability in the linen supply chain[59][61]. - The Group aims to promote the REEL Linen Code of Conduct, a sustainability initiative to improve environmental and product quality standards in the linen industry[145]. - The company has launched the REEL initiative aimed at promoting sustainable practices in the linen industry, focusing on improving environmental conditions and product traceability in its global supply chain[148]. Challenges and Risks - The geopolitical tensions and disruptions in shipment routes have posed challenges to the Group's operations during the year[15]. - The Group's principal risks include unstable demand for linen yarn, protectionism, and potential punitive tariffs on products made in China[188]. - The year 2024 and beyond are expected to be challenging due to geopolitical tensions and rising operational costs in Asia[143]. Dividends and Shareholder Relations - The Board has recommended a final dividend of HK$0.09 per ordinary share for the year, consistent with the previous year[24]. - The Board recommended a final dividend of HK$0.09 per share for the year, unchanged from 2022[44]. - The Chairman expressed gratitude to shareholders and business partners for their continuous support during the challenging year[25]. Future Outlook - Looking ahead to 2024, the company will focus on globalization, process orientation, standardization, and digitalization to enhance operational efficiency and customer service quality[23]. - The Group plans to establish a new factory in Egypt in 2024 to diversify its supply chain, following a feasibility study conducted in 2023[133]. - The company is conducting feasibility studies for new factories in Egypt and North Africa to diversify its supply chain, benefiting from potential EU tariff exemptions[148]. - The company plans to cautiously advance the new factory project in 2024, responding to the increasing operational costs in Asia and the aging population in China[148]. Employee and Management Information - As of December 31, 2023, the Group had a total of 3,700 employees, a decrease from 4,087 employees in 2022[135]. - Total staff costs for the year increased by approximately 0.3% to RMB 262,496,000, compared to RMB 261,764,000 in 2022[135]. - Ms. Shen Hong, aged 57, has over 20 years of financial experience and is the Group's managing director[161]. - Mr. Yan Jianmiao, aged 58, is an independent non-executive director with a strong academic background in economics and international trade[170]. - Mr. Chan Yan Kwan Andy, aged 55, serves as the chief financial officer and has over 20 years of experience in accounting and finance[174].

Revenue and Profitability - The group's revenue increased by approximately 21.0% from RMB 2,021,055,000 in 2022 to RMB 2,445,428,000 in 2023, driven by rising prices of pure linen yarn[6]. - Profit for the year declined by 5.2% to approximately RMB 162,790,000 in 2023, down from RMB 171,808,000 in 2022[6]. - Basic earnings per share fell by 6.9% to approximately RMB 0.27 in 2023, compared to RMB 0.29 in 2022[6]. - Total comprehensive income for the year was RMB 163,040,000 in 2023, compared to RMB 168,727,000 in 2022[8]. - The gross profit margin decreased by 2.3 percentage points to approximately 16.8% in 2023, compared to 19.1% in 2022, due to raw material cost increases outpacing the rise in pure linen yarn prices[6]. - Gross profit rose by about 6.4% to RMB 411,488,000, while the overall gross margin decreased by 2.3 percentage points to 16.8%[104]. Assets and Liabilities - Non-current assets decreased from RMB 1,167,881,000 in 2022 to RMB 1,093,960,000 in 2023[9]. - Current assets increased significantly from RMB 1,737,041,000 in 2022 to RMB 2,189,216,000 in 2023[9]. - Total liabilities increased from RMB 1,319,707,000 in 2022 to RMB 1,626,352,000 in 2023[9]. - The net asset value increased from RMB 1,487,990,000 in 2022 to RMB 1,587,212,000 in 2023[11]. - The carrying amount of non-current assets was RMB 1,043,000,000 as of December 31, 2023, down from RMB 1,150,000,000 in 2022[38]. - The company's total non-current assets were RMB 1,078,857,000 as of December 31, 2023, compared to RMB 1,159,408,000 in 2022[45]. - The total liabilities, including current and non-current borrowings, reached RMB 869,526,000 in 2023, compared to RMB 752,903,000 in 2022, reflecting an increase of 15.5%[95]. Sales and Market Performance - Revenue from mainland China reached RMB 1,194,237,000, up 54% from RMB 774,455,000 in 2022[44]. - The company's pure linen yarn export volume was 7,955 tons, representing a decrease of about 30.5% from 11,477 tons in the previous year[102]. - Overseas sales contributed RMB 1,251,191,000, accounting for approximately 51.2% of total revenue, with the EU contributing RMB 468,957,000 (19.2%) and non-EU countries RMB 782,234,000 (32.0%)[105]. - The company maintained its position as the largest pure linen yarn exporter in China for 21 consecutive years, holding over 40% of the total export volume[102]. - The group's revenue increased by approximately 21.0% to RMB 2,445,428,000, driven by a rise in the selling price of pure linen yarn, with sales to China and non-EU markets growing by 54.2% and 12.7% respectively[119]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.09 per ordinary share for the year ended December 31, 2023, unchanged from 2022[6]. - The board proposed a final dividend of HKD 0.09 per share, totaling approximately RMB 51,356,000, subject to shareholder approval[124]. Operational Efficiency and Costs - The group's sales and distribution expenses were approximately RMB 42,229,000, accounting for about 1.7% of total revenue, a decrease from 2.1% in the previous year due to reduced promotional costs[121]. - Administrative expenses for the year were approximately RMB 116,078,000, a slight decrease of about 2.5% compared to RMB 119,013,000 in 2022, mainly due to savings in general office expenses[140]. - Total financial costs for the year were approximately RMB 36,800,000, an increase from RMB 33,852,000 in 2022, with bank loan interest expenses totaling RMB 37,708,000[170]. Inventory and Receivables - The group's inventory increased by approximately 48.8% to RMB 1,019,545,000, up from RMB 685,180,000 in the previous year, with average turnover days rising from 147 to 153 days[177]. - Trade receivables and notes receivable increased by approximately 31.0% to RMB 558,356,000, compared to RMB 426,267,000 in the previous year, while average turnover days decreased from 85 to 73 days[178]. - The aging analysis of accounts receivable showed that the total amount overdue for more than three months was RMB 10,150, a decrease of 73.0% from RMB 37,670 in 2022[82]. Investments and Subsidiaries - The company has 100% ownership in Overseas Kingdom Limited and Jiangsu Jinyuan Linen Co., Ltd., both engaged in investment holding and linen production respectively[15]. - The company holds 78.67% of Heilongjiang Jinda Hemp Industry Co., Ltd., which focuses on the production and sales of industrial hemp[17]. - The group is investing in a new production facility in Ethiopia, which will increase annual capacity by 5,000 tons, and is expected to be a demonstration project for the Belt and Road Initiative[115]. Future Outlook and Strategic Initiatives - The geopolitical situation, including the ongoing Russia-Ukraine conflict and military actions in Israel, continues to pose challenges for 2024 and beyond[199]. - Supply chain diversification is urgent due to China's aging population and rising operational costs in Asia[199]. - A feasibility study is underway for establishing new factories in Egypt and North Africa, which could benefit from reduced or zero import tariffs from EU member states, with cautious progress planned for 2024[199]. - The company has partnered with UK non-profit organizations to transform the flax industry and implement the REEL (Responsible Flax) code of conduct, focusing on sustainability[199]. - The REEL initiative aims to improve environmental conditions, product quality, and traceability in global supply chains for sustainable flax sourcing[199]. Financial Reporting and Compliance - The financial statements are prepared in accordance with International Financial Reporting Standards and are presented in RMB, rounded to the nearest thousand[19]. - The consolidated financial statements include the company and its subsidiaries as of December 31, 2023, with all intercompany transactions fully eliminated[20]. - The company reassesses control over subsidiaries if there are changes in the elements of control, ensuring accurate financial reporting[22]. - The company has adopted new and revised International Financial Reporting Standards in the current financial statements, with no significant impact on measurement or presentation[25].

Financial Performance - The Group's gross profit decreased by approximately 16.9% to approximately RMB154,701,000, with a gross profit margin dropping by approximately 0.6 percentage points to approximately 18.8% due to rising raw material costs and currency fluctuations [1][2] - Total revenue for the Review Period dropped by approximately 14.2% to approximately RMB821,476,000, primarily due to weaker demand in export markets, particularly in the European Union, countered by higher average selling prices and new product launches [13][14] - Profit for the Review Period was approximately RMB67,500,000, representing a decline of approximately 20.1% compared to RMB84,439,000 for the same period last year [40] - Profit attributable to owners of the parent was approximately RMB67,549,000, down approximately 18.1% from RMB82,494,000 in the previous year [42] - Income tax expense for the Review Period was approximately RMB20,984,000, with an effective tax rate of approximately 23.7%, down from 27.8% in the previous year [39] - Revenue decreased by approximately 14.2% to approximately RMB821,476,000 for the six months ended 30 June 2023 from approximately RMB957,058,000 for the same period in 2022, mainly due to lower demand from export markets, particularly in the European Union [59] - Profit for the Review Period dropped by approximately 20.1% to RMB67,500,000 for the six months ended 30 June 2023 from approximately RMB84,439,000 for the same period in 2022 [62] - Profit attributable to the owners of the parent decreased by approximately 18.1% to RMB67,549,000 for the six months ended 30 June 2023 from approximately RMB82,494,000 for the same period in 2022 [62] Sales and Market Performance - Domestic sales in China grew by 10.2%, while export sales to the European Union and non-European Union regions decreased by approximately 29.2% and 22.4%, respectively [13][14] - The quantity of linen yarn sold during the Review Period was 7,275 tonnes, which is 31.2% fewer than the 10,572 tonnes sold during the same period in 2022 [66] - Domestic sales reached RMB344,603,000, contributing approximately 41.9% to total revenue, an increase of approximately 10.2% year-on-year [73] - Overseas sales amounted to RMB476,873,000, contributing approximately 58.1% to total revenue, a decrease of approximately 26.0% year-on-year [73] - Sales to European Union countries decreased by 29.2% year-on-year, while sales to non-European Union countries decreased by 22.4% year-on-year due to weak demand [73] Cost Management and Expenses - Administrative expenses decreased by approximately 17.9% to approximately RMB49,361,000, attributed to lower staff costs, research and development expenses, and reduced provisions for bad debts [6][7] - Selling and distribution expenses amounted to approximately RMB13,957,000, accounting for approximately 1.7% of total revenue, down from approximately 2.4% in the previous period [4] - Total finance costs for the Review Period were approximately RMB15,326,000, lower than the previous year's RMB17,624,000, due to a reduced average loan balance [9] - The total employee cost during the Review Period was approximately RMB80,261,000, a decrease from RMB97,418,000 in the same period last year [120] - Total staff costs for the review period amounted to approximately RMB80,261,000, down from RMB97,418,000 for the six months ended June 30, 2022 [139] Assets and Liabilities - The Group's total assets as of 30 June 2023 were approximately RMB3,088,772,000, an increase from RMB2,904,922,000 as of 31 December 2022 [12] - As of June 30, 2023, total equity was approximately RMB1,504,247,000, an increase from approximately RMB1,487,990,000 as of December 31, 2022 [18] - The Group's total borrowings repayable within 12 months increased to approximately RMB786,642,000 from approximately RMB696,344,000 as of December 31, 2022, resulting in a gross debt gearing ratio of approximately 56.0% compared to 50.6% previously [18] - Net current assets as of June 30, 2023, were approximately RMB433,541,000, up from approximately RMB417,334,000 as of December 31, 2022 [49] - Cash and cash equivalents decreased to approximately RMB168,180,000 as of June 30, 2023, from approximately RMB467,469,000 as of December 31, 2022 [50] - The liquidity ratio as of June 30, 2023, was approximately 129.1%, slightly down from 131.6% as of December 31, 2022 [50] Production and Operations - The Ethiopia factory has resumed normal production and is ramping up its production capacity during the Review Period [75] - The Group procured approximately 19,419 tonnes of raw materials during the Review Period, a year-on-year decrease of approximately 13.4% from 22,426 tonnes [81] - The average procurement unit price surged approximately 64.3% to RMB 44,658 per tonne, up from RMB 27,177 in the corresponding period last year due to supply shortages [81] - As of June 30, 2023, the Group had five production bases with an annual capacity of 7,000 tonnes (90% utilization), 6,000 tonnes (90% utilization), and 5,000 tonnes (80% utilization) among others [84] - A total of 194 tonnes of hemp yarn were produced during the Review Period, marking the Group's first venture into the hemp yarn market with a 75.34% equity interest in Heilongjiang Kingdom Enterprise Co., Ltd. [87] - The weaving and fabric factory in China is under construction and is expected to start trial production in the fourth quarter of 2023 [103] Strategic Initiatives - The Group is committed to investing in Ethiopia to reduce costs and benefit from the European Union's Everything but Arms initiative, which provides duty-free access to products made in least developed countries [102] - The Group aims to establish a scaled hemp yarn production within three years to meet market demand [148] - The Group has partnered with COTTONCONNECT to develop the REEL Linen Code of Conduct, promoting sustainability in the flax industry [149] - The Group's strategy includes developing proprietary intellectual property rights and pursuing advanced management practices to enhance long-term shareholder value [175] - The Group aims to become one of the largest linen yarn manufacturers globally, focusing on sustainable development and technical innovation [175] Corporate Governance and Shareholder Matters - The Company has not declared any interim dividend for the six months ended June 30, 2023, consistent with the previous year [190] - The Group's primary objective is to enhance long-term total return for shareholders through solid financial fundamentals [175] - The Company has adopted a share award plan to incentivize and retain personnel, aligning their interests with those of shareholders [193] - No Shares have been awarded pursuant to the Share Award Plan during the Review Period [198] - As of June 30, 2023, there were 13,230,750 Shares held by the Trustee, representing approximately 2.1% of the issued Shares of the Company [198] - All Directors have confirmed compliance with the required standards regarding securities transactions during the Review Period [199] - The Company has established its own code of conduct for Directors' securities transactions, which meets or exceeds the Model Code standards [199]

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，並明確表示概不就因本公告全部或任何部 分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 KINGDOM HOLDINGS LIMITED 金 達 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司， 以「金達（開曼）有限公司」的名稱於香港經營業務） 528 （股份代號： ） 中期業績公告 截至二零二三年六月三十日止六個月 • 957,058,000 收入由截至二零二二年六月三十日止六個月約人民幣 元減少約 14.2% 821,476,000 至截至二零二三年六月三十日止六個月約人民幣 元，乃主 要由於回顧期間出口市場（尤其是歐盟地區）需求疲軟，從而導致所售亞麻紗 數量減少，但被亞麻紗平均售價上調、推出瑞優亞麻產品、有機大麻紗以及 美元兌人民幣升值抵銷所致。 • 由於回顧期間原材料成本飆升，亞麻紗售價上漲，埃塞俄比亞廠房產能釋 放以及美元兌人民幣升值，毛利率由截至二零二二年六月三十日止六個月 19.4% 0.6 約 輕微下降約 個百分點至截至二零二三年六月三十日止六個月約 18.8% 。 ...

Financial Performance - Kingdom Holdings Limited achieved annual sales revenue exceeding RMB 2 billion, marking a record high[15]. - The Group's revenue for the year increased by approximately 12.3% to RMB2,021,055,000 compared to RMB1,799,690,000 in 2021[42]. - Gross profit rose by approximately 32.7% year-on-year to RMB386,900,000, with an overall gross margin increase to 19.1% in 2022 from 16.2% in 2021[42]. - Profit for the year was RMB171,808,000, significantly up from RMB90,500,000 in 2021[42]. - Revenue from overseas sales amounted to RMB1,246,600,000, representing approximately 61.7% of the Group's total revenue[44]. - Domestic sales in China increased by approximately 15.1% to RMB 774,455,000, representing about 38.3% of the Group's total revenue[51]. - The Group's net profit for the year was RMB 171,808,000, compared to RMB 90,500,000 in the previous year, with basic earnings per share increasing to RMB 0.29 from RMB 0.14[46]. - Other income and gains for the year amounted to RMB54,431,000, significantly up from RMB7,136,000 in 2021, driven by increased interest income and government grants[77]. Production and Capacity - The company produced 21,725 tonnes of linen yarn in 2022, an increase from 20,756 tonnes in 2021[15]. - The Group is expanding its production capacity, with a total designated annual capacity of 23,000 tons for linen and industrial hemp yarn across its four production bases in China[63]. - The factory in Ethiopia is expected to reach an annual capacity of 5,000 tonnes of linen yarn within one to two years[16]. - The new production facility in Ethiopia has boosted the Group's annual production capacity by 5,000 tonnes, with the factory ramping up to about 40% of its designed capacity[68][72]. Export and Market Position - Kingdom maintained over 40% of the total pure linen yarn export from China, reinforcing its position as the largest exporter for 20 consecutive years[15]. - The Group exported 11,477 tonnes of pure linen yarn in 2022, accounting for 53.3% of China's total pure linen yarn exports[36]. - The Group has maintained its position as the largest pure linen yarn exporter in China for 20 consecutive years[41]. - The Group's five largest exporting countries accounted for 80.6% of total export revenue during the year, with Italy, Portugal, India, Turkey, and Korea being the top markets[48]. Sustainability and Environmental Initiatives - The company is collaborating with CottonConnect to develop the REEL Linen Code of Conduct, promoting sustainability in the linen industry[17]. - Kingdom aims to expand into the linen weaving and fabric business, leveraging local government incentives[22]. - The company is committed to achieving carbon neutrality and reducing emissions as part of its environmental strategy[17]. - Kingdom continues to promote industrial hemp yarn as an environmentally friendly product[17]. - The REEL initiative aims to improve environmental conditions, product quality, and traceability in the supply chain, aligning with the group's sustainability goals[144]. Dividends and Reserves - The Board recommended a final dividend of HK$0.09 per ordinary share for the year, up from HK$0.06 in 2021[23]. - The final dividend recommended by the Board is HK$0.09 per share, up from HK$0.06 in 2021[43]. - As of December 31, 2022, the Company's distributable reserves amounted to RMB609,415,000, a decrease from RMB644,737,000 as of December 31, 2021[192]. Management and Governance - The Group has a diverse board with members having extensive backgrounds in finance, accounting, and international trade[165]. - The Group's management team includes professionals with significant experience in their respective fields, enhancing its operational capabilities[165]. - The board composition reflects a commitment to governance and oversight, with independent directors providing additional expertise[165]. - The Group aims to leverage its leadership's experience to drive future growth and innovation in its operations[165]. Financial Position and Liabilities - Total assets as of December 31, 2022, were RMB2,904,922,000, an increase from RMB2,789,467,000 in 2021[32]. - Total liabilities decreased slightly to RMB1,416,932,000 in 2022 from RMB1,438,851,000 in 2021[32]. - The liquidity ratio increased to approximately 131.6% from 113.3% in 2021[111]. - The total debt-to-equity ratio as of December 31, 2022, was approximately 50.6%, a decrease from 65.6% in 2021[116]. Challenges and Risks - The Group faces risks including unstable demand for linen yarn, potential punitive tariffs on products made in China, and execution risks related to a new expansion project in Ethiopia[183]. - The Group has complied with relevant laws and regulations that significantly impact its operations during the Year[177].

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，並明確表示概不就因本公告全部或任何部 分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 KINGDOM HOLDINGS LIMITED 金 達 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司， 以「金達（開曼）有限公司」的名稱於香港經營業務） 528 （股份代號： ） 全年業績公告 截至二零二二年十二月三十一日止年度 財務摘要 • 1,799,690,000 本集團收入由截至二零二一年十二月三十一日止年度約人民幣 12.3% 元增加約 至截至二零二二年十二月三十一日止年度約人民幣 2,021,055,000 元，乃由於亞麻紗售價上漲。 • 2.9 截至二零二二年十二月三十一日止年度的毛利率上升 個百分點至本年度 19.1% 16.2% 約 （二零二一年： ）。 • 89.8% 截至二零二二年十二月三十一日止年度的溢利大幅增加 至人民幣 171,808,000 元，而截至二零二一年十二月三十一日止年度則為約人民幣 90,500,000 ...