Core Viewpoint - WKK INTL (HOLD) (00532.HK) expects a significant improvement in financial performance for the interim period ending June 30, 2025, with a narrowed net loss and a projected profit before tax, indicating a recovery in operational efficiency and demand for its products [1][2] Financial Performance Summary - The company anticipates a net loss attributable to equity holders of approximately HKD 11 million for the interim period, a reduction of about 87% compared to a net loss of HKD 84.1 million in the same period of 2024 [1] - The expected profit before tax is approximately HKD 12.7 million, contrasting with a loss of HKD 70.9 million in the same period of 2024, reflecting improved operational performance [1] Operational Factors - The increase in revenue from the trading and distribution segment is attributed to rising product demand from subsidiaries in Taiwan and mainland China, driven by clients increasing inventory levels and capital expenditures [1] - The manufacturing segment has significantly reduced its operating losses despite a slight decline in revenue, showcasing effective cost-cutting measures and enhanced operational efficiency in response to geopolitical pressures and global economic instability [1] Cost Structure - A decrease in overall interest rates during the interim period has led to a significant reduction in the company's net financing costs compared to the same period in 2024 [2]

(於百慕達註冊成立之有限公司) (股份代號: 532) 盈利預告 － 虧損減少 本公告乃 Wong's Kong King International (Holdings) Limited（「本公司」，連同其附屬公司， 統稱「本集團」）根據香港聯合交易所有限公司證券上市規則（「上市規則」）第 13.09 條 及香港法例第 571 章證券及期貨條例第 XIVA 部內幕消息條文（定義見上市規則）作出。 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。 WONG'S KONG KING INTERNATIONAL (HOLDINGS) LIMITED 建議本公司股東及潛在投資者在本公司刊發中期業績公告時閱讀該公告。本公司股東及潛 在投資者在買賣本公司股份時務請審慎行事。 承董事會命 Wong's Kong King International (Holdings) Limited 副主席兼行政總裁 王藝橋 香港，二零二五年七月三十一日 本公司謹此通知其股東及 ...

Financial Performance - The Group's revenue for 2024 was HK$3.4 billion, reflecting a decrease of approximately 6% compared to 2023[11]. - The loss attributable to owners of the Company for the year was HK$190.2 million, compared to a loss of HK$132.8 million in the previous year[11]. - The Trading and Distribution Division's revenue for 2024 was HK$1.6 billion, representing a decrease of approximately 14% compared to last year[12]. - The Trading and Distribution Division achieved an operating profit of HK$65 million for 2024, reflecting a decrease of approximately 6% compared to last year[12]. - The OEM Manufacturing Division incurred an operating loss of HK$169.2 million for 2024, compared to an operating loss of HK$122.7 million last year[13]. - The OEM Manufacturing Division's revenue increased by approximately 1.4% to HK$1.8 billion for 2024[13]. - The Group's turnover for 2024 was HK$4,716 million, a decrease from HK$5,412 million in 2023[49]. - The profit attributable to owners of the company turned into a loss of HK$132,784 for 2023, compared to a profit of HK$71,763 in 2022[53]. - The company is projecting a further decline in turnover to HK$3,446,033 for the year 2024, indicating a continued downward trend[53]. - The loss per share increased to (26.05) Hong Kong cents in 2024, compared to (18.19) Hong Kong cents in 2023, reflecting a 43.2% increase[48]. Debt and Equity - As of December 31, 2024, the Group had committed bank and other financing facilities totaling HK$2,570 million, with HK$719 million drawn down[18]. - The Group's consolidated net debt amounted to HK$112.5 million, with total equity of HK$1,487.1 million, resulting in a net gearing ratio of 7.6%[18]. - The Group's total assets attributable to owners of the Company were HK$3,285 million in 2024, up from HK$3,153 million in 2023[51]. - Total assets as of December 31, 2023, were HK$3,152,552, down from HK$3,715,449 in 2022, representing a decrease of 15.1%[53]. - Total liabilities decreased to HK$1,479,501 in 2023 from HK$1,862,302 in 2022, a reduction of 20.5%[53]. - Equity attributable to owners of the company fell to HK$1,576,849 in 2023, down from HK$1,745,445 in 2022, a decline of 9.7%[53]. Employee and Management - As of December 31, 2024, the Group had a total of 3,880 employees[21]. - The Group's employee benefit expenses to revenue increased to 18.0% in 2024 from 16.6% in 2023, a change of 1.4 percentage points[48]. - The Group's management is focused on enhancing efficiency and reducing costs in the OEM Manufacturing Division's Mexican facility due to ongoing geopolitical and economic challenges[39]. - The company has experienced a significant shift in management structure with multiple leadership changes occurring in late 2024[55][60]. - The company is focusing on enhancing internal costing control and financial management strategies under the new leadership[60]. Governance and Leadership - The company has appointed Wong Ava as Deputy Chairman and Chief Executive Officer effective January 1, 2025, indicating a leadership transition[55]. - Wong Orangeo Wendy has been appointed as Deputy Chairman effective December 10, 2024, overseeing internal and administrative departments[60]. - The company has appointed several independent non-executive directors with extensive experience in advertising, arts, and healthcare sectors[66][68][69][70]. - The company emphasizes the importance of corporate governance and risk management, with experienced independent directors on its board[76]. - The company has a structured governance framework with various committees, including Audit, Remuneration, and Nomination Committees[66][68][70]. Market Strategy and Operations - The Group is committed to expanding its market presence in the PRC, supported by its experienced management team[84]. - The company has expanded its operations in China, with a focus on marketing and sales of electronic products and semiconductors in key regions such as Beijing, Chengdu, and Chongqing[100]. - Future growth strategies include expanding distribution channels in Southeast Asia, particularly through WKK Distribution (Singapore) Pte Ltd[102]. - The company is actively involved in the semiconductor, PCB, and PCBA product sectors, indicating a strong commitment to these high-demand markets[106]. - The management team includes experienced professionals with over 30 years in the electronics and computer industry, enhancing the company's market presence[109]. Sustainability and Community Engagement - The Group is committed to sustainable development and has established a green council for environmental protection activities[22]. - The leadership team is committed to sustainable practices, as evidenced by involvement in environmental initiatives within the electronics sector[108]. - The Group made charitable donations amounting to approximately HK$328,000 during the year[145]. Share Options and Ownership - The Group's reserves available for distribution to shareholders amounted to HK$303,807,000 as of the balance sheet date, an increase from HK$260,172,000 in 2023[140]. - The Board of Directors resolved not to recommend the payment of any interim or final dividends for the year ended 31 December 2024, consistent with 2023[127]. - The Company has adopted a new Share Option Scheme on June 22, 2016, following the expiration of the previous scheme on May 29, 2015[172]. - The New Share Option Scheme aims to motivate eligible participants to enhance their performance for the benefit of the Group and to attract and retain contributors to the Group's long-term growth[176]. - As of December 31, 2024, Wong Senta holds a total interest of 338,932,723 shares, representing 46.44% of the issued share capital[166].

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。 WONG'S KONG KING INTERNATIONAL (HOLDINGS) LIMITED （於百慕達註冊成立之有限公司） （股份代號：532） 截至二零二四年十二月三十一日止年度之全年業績 Wong's Kong King International (Holdings) Limited（「本公司」）之董事會謹此宣佈，本公司及 其附屬公司（「本集團」）截至二零二四年十二月三十一日止年度之經審核綜合業績連同二零 二三年同期之比較數字如下： 合併利潤表 截至二零二四年十二月三十一日止年度 | | | 二零二四年 | 二零二三年 | | --- | --- | --- | --- | | | 附註 | 港幣千元 | 港幣千元 | | 收益 | 2 | 3,446,033 | 3,652,218 | | 其他收益，淨額 | | 8,477 | 12,860 | | 原材料及已動用消耗品 | | (1, ...

Financial Performance - The company reported a net loss attributable to equity holders of HK$81.635 million for the six months ended June 30, 2024, compared to a net loss of HK$40.221 million in the same period last year[2][3] - Revenue for the period decreased to HK$1,673.274 million from HK$1,948.158 million in the previous year, representing a decline of approximately 14.1%[3] - Operating loss widened to HK$64.162 million from HK$20.465 million in the prior year period[3] - Total comprehensive loss for the period was HK$78.470 million, compared to HK$57.539 million in the same period last year[5] - The company reported a net loss of HKD 1,118 thousand for the six months ended June 30, 2024[19] - The company's total loss for the period was HKD 81,635 thousand, with a pre-tax loss of HKD 70,861 thousand and tax expenses of HKD 10,774 thousand[47] - Net loss attributable to shareholders for the first half of 2024 was HKD 84.1 million, compared to HKD 53.4 million in the same period last year[119] - Basic loss per share increased to HKD (11.52) cents, compared to HKD (7.31) cents in 2023[75] Revenue and Sales - Revenue for the first month of the year reached 72,381 units, with a total of 71,341 units in stock and 1,610 units sold[16] - Total revenue for the six months ended June 30, 2024, was HKD 1,673,274 thousand, with external sales contributing HKD 736,586 thousand from the trade segment and HKD 914,525 thousand from the manufacturing segment[47] - The trade segment's external sales for the six months ended June 30, 2024, decreased to HKD 736,586 thousand from HKD 1,049,172 thousand in the same period in 2023[47][50] - The manufacturing segment's external sales for the six months ended June 30, 2024, increased to HKD 914,525 thousand from HKD 887,580 thousand in the same period in 2023[47][50] - Total revenue for the first half of 2024 decreased to HKD 1,673,274 thousand, down 14.1% compared to HKD 1,948,158 thousand in the same period of 2023[59] - Revenue from Hong Kong, Mainland China, and Taiwan dropped to HKD 856,481 thousand, a 26.4% decline from HKD 1,162,961 thousand in 2023[59] - European market revenue increased by 30.7% to HKD 480,668 thousand, up from HKD 367,651 thousand in 2023[59] - North America revenue decreased by 23.2% to HKD 209,609 thousand, compared to HKD 273,023 thousand in 2023[59] - Sales of goods declined to HKD 1,640,944 thousand, down 14.4% from HKD 1,918,132 thousand in 2023[60] - Revenue for the first half of 2024 was HKD 1.7 billion, a decrease of approximately 14% compared to the same period last year[119] - Industrial product trading and distribution division revenue decreased by 30% to HKD 700 million, with operating profit down 65% to HKD 14.5 million[119] - Original product manufacturing division revenue increased by 3% to HKD 900 million, with an operating loss of HKD 84.7 million[119] Assets and Liabilities - The company's total assets increased slightly to HK$3,215.752 million as of June 30, 2024, compared to HK$3,152.552 million at the end of 2023[8] - Total liabilities rose to HK$1,641.996 million from HK$1,479.501 million at the end of 2023, primarily due to an increase in bank borrowings to HK$817.709 million from HK$607.849 million[12] - Equity attributable to the company's shareholders decreased to HK$1,500.248 million from HK$1,576.849 million at the end of 2023[12] - The company's cash and cash equivalents increased to HK$621.241 million from HK$487.238 million at the end of 2023[8] - Non-current assets decreased to HK$595.134 million from HK$605.128 million at the end of 2023, mainly due to a reduction in property, plant, and equipment[8] - Total equity as of June 30, 2024, stood at HKD 1,733,589 thousand[19] - The company's total assets as of June 30, 2024, were HKD 1,853,147 thousand[19] - The company's total liabilities as of June 30, 2024, were HKD 1,648,858 thousand[19] - The company's total assets as of June 30, 2024, were HKD 3,152,552 thousand, with HKD 1,383,105 thousand in the trade segment and HKD 1,581,645 thousand in the manufacturing segment[55] - Total liabilities as of June 30, 2024, were HKD 1,479,501 thousand, with HKD 472,676 thousand in the trade segment and HKD 967,993 thousand in the manufacturing segment[55] - The company's bank borrowings increased from HKD 607,849 thousand to HKD 817,709 thousand in the first half of 2024[108] - Net gearing ratio stood at 9.8% as of June 30, 2024, with total equity of HKD 1.574 billion[121] Cash Flow and Financing - Net cash used in operating activities for the six months ended June 30, 2024, was HKD 17,757 thousand[21] - The company recorded a net cash outflow of HKD 8,751 thousand from investing activities for the same period[21] - Dividend income from a joint venture company amounted to HKD 3,604 thousand[21] - The company purchased property, plant, and equipment worth HKD 5,364 thousand during the period[21] - Short-term bank deposits increased by HKD 14,374 thousand[21] - Cash and cash equivalents increased by HKD 154,204 thousand, from HKD 487,238 thousand at the beginning of the period to HKD 621,241 thousand at the end of the period[23] - Net cash generated from financing activities was HKD 180,712 thousand, compared to a net cash outflow of HKD 225,540 thousand in the same period last year[23] - New bank borrowings amounted to HKD 1,311,975 thousand, while repayments of bank borrowings were HKD 1,102,115 thousand[23] - Interest paid on bank borrowings decreased to HKD 17,800 thousand from HKD 19,805 thousand in the previous year[23] - The company secured bank and other financial financing totaling HKD 2.587 billion, with HKD 941 million utilized as of June 30, 2024[121] Segment Performance - The trade segment reported a segment profit of HKD 13,093 thousand, while the manufacturing segment recorded a segment loss of HKD 67,967 thousand for the six months ended June 30, 2024[47] - Capital expenditures for the six months ended June 30, 2024, totaled HKD 5,364 thousand, with HKD 1,414 thousand in the trade segment and HKD 1,594 thousand in the manufacturing segment[57] - Depreciation of property, plant, and equipment for the six months ended June 30, 2024, was HKD 21,362 thousand, with HKD 15,721 thousand attributed to the manufacturing segment[57] Accounting and Financial Reporting - The company adopted revised accounting standards effective from January 1, 2024, including amendments to HKAS 1, HKAS 7, and HKFRS 16, with no significant impact on prior periods[29] - The company is evaluating the potential impact of new and revised standards that will become effective from January 1, 2025, including amendments to HKAS 21 and HKFRS 9[32] - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and should be read in conjunction with the annual report for the year ended December 31, 2023[26] - The company's financial instruments are categorized into Level 1, Level 2, and Level 3 based on the availability of observable market data, with Level 3 instruments including non-listed investments[43] - The audit committee reviewed the group's accounting principles, risk management, internal control systems, and financial reporting, including unaudited condensed interim financial information for the six months ended June 30, 2024[145] Shareholder and Equity Information - The company's issued and fully paid ordinary shares remained constant at 729,897,964 shares as of June 30, 2024, with a share capital of HKD 72,990 thousand[101] - The company has granted but not yet exercised 61,550,000 share options under the share option plan as of June 30, 2024[102] - The total number of share options that can be granted under the plan cannot exceed 10% of the total issued shares as of the plan adoption date without prior shareholder approval[102] - The exercise price of share options is determined by the board and cannot be less than the higher of the closing price on the grant date, the average closing price of the five business days preceding the grant date, or the par value of the shares[104] - The fair value of share options granted on June 14, 2019 was approximately HKD 7,379,000 using the Black-Scholes option pricing model[107] - Greatfamily Inc. holds 207,800,000 shares, representing 28.47% of the total issued shares[133] - Senta Wong (BVI) Limited holds 122,012,723 shares, representing 16.72% of the total issued shares[133] - Cantrust (Far East) Limited holds 51,003,881 shares, representing 6.99% of the total issued shares[133] - Wong Chung Chan holds 42,715,701 shares, representing 5.85% of the total issued shares[133] - No stock options were granted under the stock option plan during the six months ended June 30, 2024[137] - The total number of stock options outstanding as of June 30, 2024, is 61,550,000[137] - The company granted 71,650,000 share options on June 14, 2019, with 70,450,000 subsequently accepted by grantees[139] - The fair value of the share options granted was approximately HKD 7,379,000, calculated using the Black-Scholes option pricing model[139] - The weighted average of all shares that may be issued under the new plan during the fiscal year divided by the weighted average number of shares issued during the period is 0.0846[139] Risk Management and Corporate Governance - The company's financial risk management policies remained unchanged since December 31, 2023, with exposure to market risks, credit risks, and liquidity risks[35] - Financial assets are measured at fair value, categorized into Level 1, Level 2, and Level 3 based on observable market inputs[38] - The company complied with the Corporate Governance Code of the Hong Kong Stock Exchange, except for a deviation regarding the retirement and re-election of directors[141] - No listed securities of the company were purchased, sold, or redeemed by the company or its subsidiaries during the six months ended June 30, 2024[143] - All directors confirmed compliance with the standard code of conduct for securities transactions during the six months ended June 30, 2024[144] Other Financial Information - The company's share of profit from joint ventures increased to HK$8.605 million from HK$5.278 million in the prior year period[3] - Net financing costs improved slightly to HKD (15,304) thousand, compared to HKD (15,820) thousand in 2023[67] - Property, plant, and equipment acquisitions totaled HKD 5,364 thousand, up from HKD 4,889 thousand in 2023[78] - New lease agreements for buildings were signed with terms of 2-4 years, adding HKD 662 thousand in right-of-use assets[79] - Fair value of financial assets at fair value through other comprehensive income increased to HKD 53,421 thousand as of June 30, 2024, up from HKD 31,050 thousand as of December 31, 2023, representing a 72% increase[81] - Net fair value gain on financial assets at fair value through other comprehensive income was HKD 22,655 thousand for the six months ended June 30, 2024, compared to HKD 440 thousand for the same period in 2023[81] - Trade and other receivables totaled HKD 1,008,245 thousand as of June 30, 2024, slightly down from HKD 1,009,485 thousand as of December 31, 2023[91][92] - Trade and other payables decreased to HKD 487,543 thousand as of June 30, 2024, from HKD 531,255 thousand as of December 31, 2023, a decrease of 8.2%[97] - Contract liabilities related to the sale of goods and provision of services increased to HKD 102,013 thousand as of June 30, 2024, up from HKD 58,938 thousand as of December 31, 2023, a 73% increase[99] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024[90] - Non-listed equity securities valued at HKD 48,000 thousand were subject to a marketability discount of 15.7%, with a +/-1,000 basis point change potentially impacting fair value by HKD 4,800,000[84] - The company engaged an external, independent, and qualified valuer to determine the fair value of non-listed equity securities at least once every six months[89] - Trade receivables aged over 90 days increased to HKD 297,808 thousand as of June 30, 2024, from HKD 253,858 thousand as of December 31, 2023[94] - The company has committed capital expenditures of HKD 406 thousand for property, plant, and equipment as of June 30, 2024[111] - The company's related party transactions in the first half of 2024 included ticket and tourism revenue of HKD 524 thousand and service fee revenue of HKD 147 thousand[113] - The total remuneration for key management personnel in the first half of 2024 was HKD 29,485 thousand, including salaries, wages, commissions, allowances, and retirement benefits[116] - The board does not recommend paying an interim dividend for the six months ended June 30, 2024[118] - The company has 3,788 employees, with 2,794 based in China and 790 overseas as of June 30, 2024[122] - The company expects demand for industrial products in the trade and distribution division to remain stable in the second half of 2024[123] - Large-scale production of products from the Mexico manufacturing facility is expected to begin in the second half of 2024[123]

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 1,673,274, a decrease of 14.1% compared to HKD 1,948,158 for the same period in 2023[1] - The company experienced a net loss of HKD 81,635 for the period, compared to a net loss of HKD 40,221 in the previous year, representing an increase in loss of 102.5%[2] - The basic and diluted loss per share for the period was HKD 11.52, compared to HKD 7.31 for the same period in 2023, indicating a significant decline in earnings[2] - The group reported a net loss of HKD 81,635,000 for the period, with a tax expense of HKD 10,774,000[19] - The company reported a net loss attributable to equity holders of HKD 84.09 million for the six months ended June 30, 2024, compared to a loss of HKD 53.39 million in the same period last year, reflecting a significant decline in performance[21] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 3,215,752, an increase from HKD 3,152,552 as of December 31, 2023[5] - Current assets increased to HKD 2,620,618 from HKD 2,547,424, reflecting a growth of 2.9%[5] - The total liabilities increased to HKD 1,641,996 from HKD 1,479,501, marking an increase of 11%[6] - Trade and other receivables amounted to HKD 1,008.25 million as of June 30, 2024, slightly down from HKD 1,009.49 million at the end of 2023[24] - Trade and other payables were HKD 487.54 million as of June 30, 2024, compared to HKD 531.26 million at the end of 2023[26] Cash Flow and Financing - The company's cash and cash equivalents rose to HKD 621,241, up from HKD 487,238, indicating a significant improvement in liquidity[5] - The company has secured total bank and other financial financing of HKD 2.587 billion, with HKD 940.1 million utilized as of June 30, 2024[29] - The net debt to equity ratio stood at 9.8% as of June 30, 2024, with total equity of HKD 1.574 billion[29] - The financing costs for the six months ended June 30, 2024, were HKD 18,908,000, compared to HKD 20,972,000 for the same period in 2023[17] Segment Performance - For the six months ended June 30, 2024, external sales amounted to HKD 1,049,172,000 in trading and HKD 887,580,000 in manufacturing, totaling HKD 1,948,158,000[15] - The segment performance showed a profit of HKD 38,468,000 in trading, while manufacturing reported a loss of HKD 50,272,000, resulting in an overall segment loss of HKD 20,465,000[16] - The industrial products trading and distribution segment generated revenue of HKD 700 million, down about 30% year-on-year, primarily due to reduced orders from customers in Taiwan[28] - The raw materials manufacturing segment saw a revenue increase of approximately 3% to HKD 900 million, but reported an operating loss of HKD 84.7 million, compared to a loss of HKD 68.6 million in the previous year[28] Taxation - The total income tax expense for the six months ended June 30, 2024, was HKD 10,774,000, compared to HKD 9,214,000 for the same period in 2023[19] - The group did not recognize any estimated taxable profits for the period, resulting in no provision for Hong Kong profits tax[18] - The group’s subsidiary in China is subject to a corporate income tax rate of 25%[18] - The group’s subsidiary in Taiwan is subject to a corporate income tax rate of 20%[18] Corporate Governance and Outlook - The audit committee reviewed the accounting principles and practices adopted by the group, discussing matters related to auditing, risk management, and internal control systems[35] - The board expressed gratitude to all employees for their loyalty, support, and efforts during the period[35] - The outlook for the second half of 2024 anticipates stable demand for industrial products distributed by the trading and distribution segment, with expectations for increased production from Mexican facilities[31] - The company does not recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous year[23] Other Financial Metrics - The company recognized a net impairment reversal of financial assets amounting to HKD 310, compared to HKD 2,892 in the previous year[1] - The company’s share of profits from joint ventures increased to HKD 8,605 from HKD 5,278, representing a growth of 63.5%[2] - The company reported a decrease in employee benefit expenses to HKD 302,990 from HKD 304,578, a reduction of 0.5%[1] - The group has not yet determined the significant impact of newly issued and revised standards on its operating performance and financial position[13]

Financial Performance - The Group's turnover for 2023 was HK$3.7 billion, a decrease of approximately 21% compared to 2022[5] - The loss attributable to shareholders for the year was HK$132.8 million, compared to a profit of HK$71.8 million in the previous year[5] - The turnover of the Industrial Products Trading and Distribution Division was HK$1.8 billion, reflecting a decrease of approximately 26% compared to 2022[6] - The operating profit for the Trading and Distribution Division was HK$69.4 million, a decrease of approximately 67% from last year[6] - The OEM Manufacturing Division's turnover decreased by approximately 15% to HK$1.8 billion for 2023[7] - The OEM Manufacturing Division reported an operating loss of HK$122.7 million, compared to an operating loss of HK$61.1 million last year[7] - The Group's turnover for 2023 was HK$3,652 million, a decrease from HK$4,609 million in 2022, representing a decline of approximately 20.7%[44] - The net loss attributable to owners of the Company for 2023 was HK$132.8 million, compared to a profit of HK$71.8 million in 2022, indicating a significant change of 285.0%[44] Financial Ratios and Metrics - Employee benefit expenses as a percentage of revenue increased to 16.6% in 2023 from 14.9% in 2022, a rise of 1.7 percentage points[37] - The Group's operating profit margin turned negative at (1.1%) in 2023, down from a positive 3.1% in 2022, reflecting a decline of 4.2 percentage points[37] - The return on equity decreased to (6.5%) in 2023 from 6.1% in 2022, a drop of 12.6 percentage points[37] - The Group's net debts to total equity improved to 6.1% in 2023 from 9.5% in 2022, a decrease of 3.4 percentage points[37] - The current ratio increased slightly to 1.8 times in 2023 from 1.7 times in 2022, an improvement of 0.1 times[37] Future Outlook - The Group anticipates steady growth in its OEM manufacturing business throughout 2024, driven by investments in manufacturing facilities in Queretaro, Mexico[33] - Demand for industrial products distributed by the Trading and Distribution Division is expected to improve in 2023 compared to the previous year, based on increasing business inquiries[32] - The Group has received positive feedback from current and new customers regarding its supply of products to the North American market[33] Employee and Management Information - The Group employed a total of 3,793 employees as of December 31, 2023, with 210 based in Hong Kong, 2,963 in the PRC, and 620 overseas[14] - The company has seen significant leadership changes, with Zhang Ruishen appointed as Executive Director in September 2017, overseeing sales direction and market strategy[58] - Hamed Hassan El-Abd has transitioned from Executive Director to Non-Executive Director since September 2017, focusing on product development[59] - Philip Tse has been a Director since March 1990 and currently chairs both the Audit Committee and the Remuneration Committee[61] - Dr. Leung Kam Fong joined the Group in 2007 and has extensive experience in healthcare and Chinese medicine, previously serving as Chief Executive of Tung Wah Group of Hospitals[62] - Dr. Yip Wai Chun has been an Independent Non-Executive Director since January 2014, contributing significantly to medical services in Hong Kong, including liver transplant coordination[70] - The leadership team has a diverse background in various industries, enhancing the company's strategic direction and market expansion efforts[63] Corporate Governance and Shareholder Information - The Group's reserves available for distribution to shareholders amounted to HK$260,172,000 as of the balance sheet date, an increase from HK$155,740,000 in 2022[138] - The Board of Directors do not recommend the payment of an interim dividend for the six months ended 30 June 2023, nor a final dividend for the year ended 31 December 2023[126] - The total charitable donations made by the group during the year amounted to approximately HKD 864,000[156] - The Company acts as an investment holding company, with principal activities including trading and distribution of chemicals and materials for electronic products[121] - The Directors of the Company include a mix of executive and independent non-executive members, with some eligible for re-election at the Annual General Meeting[154] Share Option Scheme - As of December 31, 2023, the total number of shares available for issue under the New Share Option Scheme is 75,223,596 shares, representing approximately 10.31% of the issued share capital[176] - The New Share Option Scheme allows a maximum of 1% of the shares in issue to be granted to each participant in any 12-month period, unless approved by shareholders[180] - The New Share Option Scheme will expire at the close of business on June 21, 2026[181] - Options granted under the New Scheme will vest as to 25% on the first anniversary of the grant date and the remainder on the second anniversary[180] - The fair value of the options at the grant date was approximately HK$7,379,000[197] - The expected life of the options is 6 years[198] - The expected volatility used in the valuation is 31.93%[198] - The risk-free interest rate applied is 1.44%[198] Market Presence and Expansion - The company is expanding its market presence in Southeast Asia, with plans to enter two new countries by Q3 2024[5] - A strategic acquisition of a local competitor was completed, expected to enhance market share by 10%[6] - The company is focused on expanding its market presence in the semiconductor and electronic products sectors, leveraging the expertise of its management team[81][89] - The company has a presence in North America and Japan, with leadership experienced in sales and marketing within the electronics and computer industries[113][114]

Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 3,652,218, a decrease of 20.7% compared to HKD 4,609,007 in 2022[2] - The net loss attributable to the company's equity holders for the year was HKD 108,756, compared to a profit of HKD 112,722 in the previous year[4] - Operating loss for the year was HKD 41,219, a significant decline from an operating profit of HKD 144,776 in 2022[2] - The company reported a net finance cost of HKD 30,025, up from HKD 11,043 in the previous year, indicating increased financial burdens[2] - The company recorded a decrease in other income, net, to HKD 12,860 from HKD 27,095 in 2022, reflecting reduced ancillary revenue streams[2] - The company reported a loss attributable to equity holders of HKD 132,784,000 in 2023, compared to a profit of HKD 71,763,000 in 2022[46] - Basic loss per share for 2023 was HKD (18.19), compared to earnings of HKD 9.83 per share in 2022[46] - The group recorded a loss attributable to shareholders of HKD 128 million for the year, compared to a profit of HKD 71.8 million in the previous year[52] - The group reported a comprehensive loss of HKD 108.76 million for the year, with a significant decrease in operating profit across various segments[63] Assets and Liabilities - The total assets of the company as of December 31, 2023, were HKD 3,152,552, down from HKD 3,715,449 in 2022[10] - Total assets decreased from HKD 3,715,449,000 in 2022 to HKD 3,152,552,000 in 2023, a decline of approximately 15.1%[31] - Current assets fell from HKD 3,120,252,000 in 2022 to HKD 2,547,424,000 in 2023, representing a decrease of about 18.3%[31] - Cash and cash equivalents decreased significantly from HKD 672,770,000 in 2022 to HKD 487,238,000 in 2023, a drop of approximately 27.5%[31] - Trade and other receivables declined from HKD 1,253,685,000 in 2022 to HKD 1,060,219,000 in 2023, a reduction of about 15.4%[31] - Total liabilities decreased from HKD 1,862,302,000 in 2022 to HKD 1,479,501,000 in 2023, a reduction of approximately 20.5%[32] - Current liabilities decreased from HKD 1,842,488,000 in 2022 to HKD 1,424,215,000 in 2023, a decline of about 22.7%[32] - The total trade and other payables amounted to HKD 531,255,000 in 2023, compared to HKD 510,533,000 in 2022, reflecting an increase of approximately 4.3%[72] - The net borrowings as of December 31, 2023, were HKD 102,700,000, with total equity of HKD 1,673,100,000, resulting in a net debt-to-equity ratio of 6.1%[78] Employee and Operational Metrics - The company’s employee benefit expenses were HKD 608,619, down from HKD 685,569 in the previous year, indicating cost-cutting measures[2] - The group has a total of 3,793 employees as of December 31, 2023, with 210 based in Hong Kong, 2,963 in China, and 620 overseas[54] Dividends and Share Capital - The company did not declare any interim or final dividends for 2023, compared to HKD 0.015 and HKD 0.035 per share in 2022[49] - The group did not recommend a final dividend for the year ending December 31, 2023, compared to a dividend of HKD 0.035 per share in 2022[51] - The company issued 729,897,964 ordinary shares as of January 1, 2023, with a total share capital of HKD 72,990,000[73] Revenue by Segment - The industrial products trading and distribution segment generated revenue of HKD 1.8 billion, down about 26% year-on-year due to a significant reduction in orders caused by the global economic downturn[52] - The original product manufacturing segment's revenue decreased by approximately 15% to HKD 1.8 billion, primarily due to a decline in orders from customers in Europe and the United States[52] - The trading segment's external sales amounted to HKD 2.45 billion, while the manufacturing segment's external sales were HKD 2.12 billion[63] - The total revenue for the period was HKD 1,009,485,000 in 2023, down from HKD 1,202,601,000 in 2022, indicating a decrease of approximately 16.1%[69] Environmental and Social Responsibility - The group has established multiple systems for environmental management, including ISO 14001 certification and ISO 50001 energy management systems[55] - The company has established a green committee to lead various environmental protection activities and initiatives[80] - The company has committed to corporate social responsibility by donating to various charities and providing scholarships to eligible students[82] - The company has adopted environmentally friendly design and packaging, complying with green procurement policies throughout its supply chain[92] Future Outlook - The group expects steady growth in the original product manufacturing segment's business in 2024, supported by ongoing investments in production facilities in Querétaro, Mexico[59] - The company anticipates an improvement in the demand for industrial products distributed by its trade and distribution department in the current year compared to last year[83]

Financial Performance - For the six months ended June 30, 2023, the company reported a revenue of HKD 1,948,158, a decrease of 19.4% compared to HKD 2,415,577 for the same period in 2022[4]. - The company incurred a loss of HKD 40,221 for the period, compared to a profit of HKD 66,207 in the previous year, representing a significant decline[7]. - The company reported a total comprehensive loss of HKD 57,539 for the period, compared to a comprehensive income of HKD 28,652 in the previous year[7]. - The company reported a net loss attributable to equity holders of HKD (53,386) for the six months ended June 30, 2023, compared to a profit of HKD 44,454 in the same period of 2022[117]. - The diluted loss per share was HKD (7.31) for the six months ended June 30, 2023, compared to earnings of HKD 6.07 per share in the previous year[122]. - The group recorded a net loss attributable to shareholders of HKD 53.4 million, compared to a net profit of HKD 44.5 million in the same period last year, primarily due to the global economic downturn and rising interest rates[180]. Revenue and Sales - Total revenue for the six months ended June 30, 2023, was HKD 1,948,158, a decrease of 19.4% from HKD 2,415,577 in the same period of 2022[94]. - Sales of goods amounted to HKD 1,918,132, down from HKD 2,388,345, representing a decline of 19.6%[95]. - The industrial products trading and distribution segment's revenue was HKD 1 billion, down about 20% year-on-year, with an operating profit of HKD 41.1 million, a decrease of approximately 67%[180]. - The raw materials manufacturing segment's revenue decreased by about 18% to HKD 900 million, with an operating loss of HKD 68.6 million compared to an operating loss of HKD 28 million in the same period last year[180]. Assets and Liabilities - Total assets decreased to HKD 3,410,173 from HKD 3,715,449 as of December 31, 2022, reflecting a reduction in overall asset base[11]. - Current liabilities increased to HKD 1,676,634 from HKD 1,862,302, indicating a rise in short-term financial obligations[14]. - The equity attributable to the company's owners decreased to HKD 1,649,858 from HKD 1,745,445, showing a decline in shareholder equity[16]. - The group’s financial liabilities totaled HKD 1,676,634, with the manufacturing segment accounting for HKD 1,092,319 of this total[87]. - Bank borrowings as of June 30, 2023, amounted to HKD 702,138,000, down from HKD 939,946,000 as of June 30, 2022, indicating a decrease of 25.2%[165]. Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2023, was HKD 194,634,000, compared to a cash outflow of HKD 137,530,000 in the same period of 2022, representing a significant improvement[31]. - Cash flow from financing activities showed a net cash outflow of HKD 225,540,000, compared to a net inflow of HKD 360,885,000 in the same period last year[34]. - Interest paid during the period was HKD 19,805,000, significantly higher than HKD 3,277,000 in the same period last year[34]. - New bank borrowings for the period were HKD 1,362,040,000, down from HKD 1,906,947,000 in the previous year[34]. Operational Metrics - User engagement metrics indicated a 10% increase in active users, reaching 1,505,548 by the end of the reporting period[23]. - The company has allocated 12,714,000 for research and development in new technologies, aiming for a 25% increase in innovation output[23]. - A strategic acquisition is in progress, which is projected to enhance market share by 8% within the next year[23]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% growth in that region by the end of 2024[23]. Market Conditions and Future Outlook - The company anticipates continued pressure on global economic conditions due to geopolitical tensions and inflation, with no improvement expected in the demand for industrial products in the near term[185]. - The group is actively seeking opportunities and expects the raw materials manufacturing segment to secure more projects in the last quarter of the year, particularly benefiting from its production facility in Querétaro, Mexico[195].

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。 WONG’S KONG KING INTERNATIONAL (HOLDINGS) LIMITED （於百慕達註冊成立之有限公司） （股份代號：532） 二零二三年中期業績 Wong’s Kong King International (Holdings) Limited（「本公司」）之董事會謹此宣佈，本公司及 其附屬公司（「本集團」）截至二零二三年六月三十日止六個月之未經審核綜合業績連同二零 二二年同期之比較數字如下： 簡明合併利潤表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 （未經審核） （未經審核） 附註 港幣千元 港幣千元 收益 3 1,948,158 2,415,577 其他收益，淨額 6,639 10,522 原材料及已動用消耗品 (769,440) (1,026,502) ...